EDELWEISS Twin Win

Fixed Returns with Equity Upside

Jul’19

Strictly Private and Confidential. This is not an Offer Document and does not constitute an Offer.
What is Twin Win?

Fixed Returns and Capital Full Equity Upside

Edelweiss Twin Win
Protection1 No Equity Downside

Fixed Returns of 7.15% p.a.
1 payable at maturity
Taxable at 10% Long
Term Capital Gains Tax –
Post tax yield of ~6.29%3
If Nifty 50 Index gives more
Than 7.15% p.a.2 returns
over 3 years, Twin Win gives
Nifty 50 returns
In case Nifty is down after
3 years, you still get Capital1
+ Fixed return
Twin Win gives the higher of
Fixed Return (7.15% p.a.) or
Nifty Returns over 3 years
Thus no need to allocate
between Debt and Equity,
Twin Win gives you the best
of both

1 Principal protection is to the extent of the Face Value of the underlying investment in Market Linked Debentures (MLDs) and subject to credit risk
of the Issuer of MLDs.
2 Realized return on investment may differ, as there may be a difference in purchase value and face value of the security on the date of investment.
3 This is not a tax advice and Taxation is as per our understanding. Please consult a professional tax advisor before investing.

Strictly Private and Confidential. This is not an Offer Document and does not constitute an Offer.
Twin Win – Return Scenarios

Scenario 1 – Market rises Scenario 2 – Market falls

Twin Win Twin Win

Nifty Level Nifty Return Nifty Level Nifty Return
Return 4 Return 4

1X Nifty Returns2
23,400 100% 100%
Assumed
11,700 Entry
Level
5 0% 24.73%
20,475 75% 75%
10,530 -10% 24.73%

Principal Protected
17,550 50% 50%

14,593 24.73% 24.73% 9,360 -20% 24.73%

1,2
14,040 20% 24.73% 5,850 -50% 24.73%
Assumed
11,700 Entry
Level
5 0.0% 24.73%
2,925 -75% 24.73%

4 Twin-Win returns showcased are for illustrative purposes only. The returns are pre-tax and post-cost (Excluding set-up fees).
5 This is for illustration purpose only. Entry level will be the average of Nifty closings of 22nd Mar’19 to Aug’19 F/0 Expiries.
Entry level will be fixed post Aug-19 and may vary.

Strictly Private and Confidential. This is not an Offer Document and does not constitute an Offer.
 Historically - 38% times, Twin Win has given FD Returns
62% Times, Twin Win has beaten them 6

Twin Win Makes FD Returns when Nifty gives Negative to Flat Returns

On 38% Nifty gave Negative Twin-Win gave ~7.50% p.a. Alpha in a

Occasions to 7.15% p.a 7.15% p.a. Negative Market

~ 3.47% p.a. Alpha in a

Twin Win Matches Equity Returns in a Buoyant Equity Market Flat Market

On 62% Nifty gave Twin Win = Twin Win & Nifty Returns
Occasions > 7.15% p.a. Nifty Returns of ~17.30% p.a. in this period.

6 Based on backtested data from 01-Jan-01 till 18-Mar-19 assuming daily investment, covering over 3800 observations. Backtesting / past performance is not an indication of future performance.

Strictly Private and Confidential. This is not an Offer Document and does not constitute an Offer.
How Does Twin-Win Work ?

Your Investment (100%)

92% is invested in Edelweiss 8% Money is invested in

Cumulative Coupon Bond Equity Linked Instruments

Provides capital protection Provides Nifty upside if Nifty

and fixed return of 7.15% p.a. gives > 7.15% p.a. return

Strictly Private and Confidential. This is not an Offer Document and does not constitute an Offer.
Twin Win vs. Fixed Deposits

Benefit from higher than Fixed Deposit Returns with Equity Upside

Particulars Fixed Deposits Twin Win

Particulars Fixed Deposits Twin Win
Issuer Banks – AAA Rated Edelweiss - AA Rated
Issuer Banks – AAA Rated Edelweiss - AA Rated
Capital Protection Yes Yes1
Capital Protection Yes Yes1

Fixed
Fixed Returns
Returns %
% Post
Post –– Tax
Tax (p.a.)
(p.a.) ~5.03%
~5.03% 6.08%3
6.29%

Equity
Equity Upside
Upside Not
Not Applicable
Applicable 100%2
100%

*Taxation 33
*Taxation ~30%
~30% ~10%3
~10%

Safety
Safety Secured
Secured Up
Up To
To 11 Lakh
Lakh as
as per
per Secured
Secured up
up to
to Face
Face Value
Value11 ++Product
Product
Regulatory
Regulatory guidelines
guidelines Return2 as
Return2 asper
perregulatory
regulatoryguidelines
guidelines

Investors in Fixed Deposits and Tax-Free Bonds can move to Twin-Win

Who should Realize higher fixed returns, along with the opportunity to also make equity
invest ? upside in buoyant markets

Strictly Private and Confidential. This is not an Offer Document and does not constitute an Offer.
Twin Win vs. Direct Equities

Benefit from Equity Upside without Equity Downside

Particulars Equities TwinWin

Twin Win

Equity
Equity Upside
Upside Yes
Yes Yes
Yes

Capital Protection No Yes1

Yes1

Fixed Returns on Investment %

~1-2% Dividend Yield 6.08%3
6.29%
Post – Tax (p.a.)

3
*Taxation 3 ~10% ~10%3
~10%

• Investors with Large Cap Holdings in Mutual Funds, PMS and Direct Shares can
Who should move to Twin-Win.
invest ? • Current profits will get locked-in as no market downside risk in Twin-Win.
• Continue to participate in market upside

Strictly Private and Confidential. This is not an Offer Document and does not constitute an Offer.
 Strategy Details

INVESTMENT DETAILS Twin Win

Investment Strategy Twin Win : Edelweiss Structured Solutions PMS
UNDERLYING INVESTMENT ECAP Equities LtdWin
Twin – (ECAP), 100%
: Edelweiss subsidiary
Structured of Edelweiss
Solutions PMS Group
UNDERLYING INVESTMENT ICRA PP-MLD-AA
CREDIT RATING A Listed, Rated & Principal Protected Market Linked Debenture

SECUREDCREDIT RATING To be rated minimum PP-MLD-AA

Yes, with a minimum 1x charge created with Debenture Trustee
SECURED Yes, with 1x charge created with Debenture Trustee
LISTING Listed on leading stock exchange
LISTING Listed on leading stock exchange
MINIMUM INVESTMENT 300 Debentures
MINIMUM INVESTMENT Rs. 26 Lacs
PRINCIPAL PROTECTION
AMOUNT Principal Amount is protected at maturity, to the extent of Face Value
PRINCIPAL
TENOR OF PROTECTION
INVESTMENT 3.5 years (For Principal Amount issuance.
the primary is protected atWill
maturity,
varytofor
the further
extent of Face Value of Underlying Investment
issuances)
TENOR OF UNDERLYING INVESTMENT 3.5 years
ENTRY LEVEL Average of the closings of primary issuance date and next 5 F/O expiries
RETURN PROFILE OF UNDERLYING
Maximum of 26.8% Absolute Returns or Nifty Underlying Performance
INVESTMENT
EXIT LEVEL Average of the closings of 31st to 36th F/O expiries

RETURN PROFILE OF Maximum of 7.15% IRR basis issue price or Nifty Underlying Performance basis face
UNDERLYING INVESTMENT value
This is not the final offer, please refer the placement memorandum for the exact details
Risk Factors

• Rise and fall in the interest rates influences the valuation

Interest
of debt securities, which may affect the value of the
Rate Risk investment

• There’s no guarantee on the marketability of the debt security

Liquidity
• Due to lack of liquidity, investment cannot be sold quickly enough to prevent or
Risk minimize loss

• Principal amount, and any other amounts that maybe due in respect of the
Repayment debentures is subject to the credit risk of the Issuer
Risk • In the event that bankruptcy or similar proceedings, the due amount may not
be made or may be substantially reduced or delayed

*For detailed information about the risks mentioned above and other risks, please refer to the offer document

Strictly Private and Confidential. This is not an Offer Document and does not constitute an Offer.
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