Investment Strategy Report Jan 21 - Edelweiss

INVESTMENTSTRATEGY

J a n u a r y 2 0 2 1

Agenda

2020 – An Year Like No Other 3

2021 – The Year Ahead 9

India & Global Macros 16

Asset class specific views and performance

Model Portfolio 29

Data tables & Annexure 37

• Equity 20

• Currency 27

2

Executive Summary 13

• Debt 24

2020 – An Year Like No Other

Biggest Health Crisis In Over A Century

4

-60

-40

-20

0

20

40

India US UK Germany France

Worldwide lockdown brought economies to standstill

44 19 20 7 3

Vaccines

testing

safety and

dosage

Vaccines in

expanded

safety trials

Vaccines in

large scale

efficacy

tests

Vaccines

approved

for early or

limited use

Vaccines

approved

for full use

Phase 1 Phase 2 Phase 3 Limited Approved

Covid cases continue to increase even now

Vaccine development catching up pace

83.8

0

15

30

45

60

75

90

0

5

10

15

20

25

30

Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Glo

bal

to

tal c

ases

(m

illio

ns)

Co

un

try

wis

e to

tal c

ases

(m

illio

ns)

total recovered Total Cases - RHS

Europe US

South America

India

2020 saw the worst pandemic in 100 years in the form of

novel coronavirus Covid-19 and the cases continue to riseeven today.

Economies worldwide were forced into strict lockdowns in

order to curtail the spread of virus.

But with the rollout of multiple vaccines lately, speed to

normalcy could be quicker than expected.

Period of strictest

lockdown

Google Mobility data

Source: New York Times Vaccine Tracker; updated as of 8th January 2021

Data Source: worldometers.info Data Source: Google Mobility Report

Economies Faced The Heat Soon after

5

India also faced acute labor sector crisis

Lockdown forced economies into recession

-25

-20

-15

-10

-5

0

5

Ind

ia

UK

France

Germ

any

USA

Ch

ina

Me

xico

Spain

Ind

on

esia

Sou

th K

orea

Ph

ilipp

ines

GD

P g

row

th (

% Y

oY)

Q2CY2020 Q3CY2020 Average of Q2 and Q3 CY2020

7.22 7.76 8.75

23.5221.73

10.187.4 8.35

6.67 6.98 6.519.06

0

5

10

15

20

25

Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20

%

India Unemployment Rate

Millions plunged into joblessness but recovered sharply

0

1500

3000

4500

6000

7500

Job

less

cla

ims

(‘0

00

)

US Initial Jobless claims

US jobless claims reached an all time

high of 6.6 million in April 2020 as a

result of lockdown.

Economies around the world contracted sharply with

India facing the strictest lockdown for more than two

months saw one of the biggest fall in GDP among major

economies.

India’s GDP contraction of 23.4% in Q2CY20 is the biggest

in last several decades.

Economic activity started to come back as process of

reopening started form the 2nd half of the year.

Source: Edelweiss Professional Investor Research Data Source: FRED Economic Data

Data Source: CMIE

Strong Fiscal And Monetary Stimulus

6

Governments reacted with strong fiscal support to the economy

Source: Edelweiss Professional Investor Research


Monetary easing is likely to continue beyond December 2020

0

4

8

12

16

20

24

End

-20

15

End

-20

16

End

-2

01

7

End

-2

01

8

End

-20

19

End

-2

02

0E

End

-20

21

E

Bal

ance

Sh

eet

(USD

Tri

llio

n)

US ECB BoJ BoE

40-50% growth

<10% growth

1.30.2

1.2 0.9

3.1

0.30.9 0.7

0.0

1.0

2.0

3.0

4.0

5.0

2020 2008 2009 2010

COVID-19 Global financial crisis

% o

f G

DP

G7 Other G20

Fiscal support more than what was seen during GFC Governments and central banks globally provided strong

stimulus to keep the economy going. The scale of fiscalstimulus by developed economies was unparalleled to any

response in history.

Central banks loosened the monetary policy throughinfusion of unprecedented liquidity and big rate cuts.

Indian government fell short of providing strong fiscal

stimulus due to lower revenue collection and large fiscaldeficit.

0.2 0.7 1.2 1.9 2.3 2.4 2.7 2.8 3.1 3.4 3.5 4.15.3 5.6 6.2 6.5

8.8 9.411.3 12.3

9.1

0.5

4.9

1.1 0.9 1.1

16.2

2.0

9.7 10.6

34.0

0.5

4.2 3.3

16.9

5.4

1.8

31.5

24.0

2.6

0

5

10

15

20

25

30

35

40

Turk

ey

Mex

ico

Ind

ia

Ru

ssia

Sau

di A

rab

ia

Ind

on

esia

Fran

ce

Arg

enti

na

Ko

rea

Spai

n

Ital

y

Ch

ina

S.A

fric

a

Can

ada

UK

Bra

zil

Au

stra

lia

Ge

rman

y

Jap

an US

% o

f G

DP

Direct fiscal support Loans, equity, and guarantees

India’s fiscal response looks pale compared to peers


Unprecedented Recovery Seen In 2nd Half Of The Year

7

Global equity – NASDAQ outperformed on the back of Tech stocks

148

116

86

115

103

50

70

90

110

130

150


NASDAQ 100 S&P 500 FTSE 100 Nifty 50 Brazil BOVESPA

Strong fiscal and monetary stimulus have led to one of the quickest recoveries from the

lows in March 2020

Index numbers have been rebased to 100 starting 31st December 2019Data Source: Investing.com, NSE

70

72

74

76

78

80

82

84

88

90

92

94

96

98

100

102

104


DXY - LHS S&P 500/MSCI EM - RHS

Correction in dollar index providing EM

equities a boost

Surge in risky assets in CY20

Bearish dollar propelling EM equities

2719

16 16 14 13

7 6

-22-30

-20

-10

0

10

20

30

Preciousmetals

Industrialmetals

MSCI EM S&P 500 MSCI India Agri US highyield index

EM bondindex

Brentcrude

CY2

0 p

erfo

rman

ce (

%)

7.7

17.8

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

USD

Tri

llio

nNegative Yielding Debt

Negative yielding debt at all time high on the back of low rates

Source: Edelweiss Research, Bloomberg

Data Source: Investing.com Data Source: Bloomberg

Similar Trends In Indian Market

8

Mid and Small caps outperformed large caps in CY20

Data Source: Edelweiss Research

Data Source: Bloomberg

FII inflow gave a strong boost to nifty recovery

Data Source: NSE, NSDL

-7886

8420

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

-9000

-4500

0

4500

9000


USD

Mill

ion

FII Inflow in Equity Nifty50 M-o-M return - RHS

RBI has provided much needed support in tackling crisis India yield curve is steeper than ever

3.5

4.0

4.5

5.0

5.5

6.0

6.5

2000

3000

4000

5000

6000

7000

8000

9000

%

INR

Bill

ion

Interbank Liquidity Repo Rate - RHS

RBI has maintained surplus liquidity throughout CY20

RBI has cut Repo rate by 115 bps since March

2020

131

282

84

50

100

150

200

250

300

bp

s

India Yield Curve (10Y - 3M G-sec) LT Avg (7 years period)

3

1215

-15

-4

21

-29

-10

21

-30

-20

-10

0

10

20

2018 2019 2020

%

Nifty NSE Midcap Index NSE Smallcap Index

Broader markets outperform large caps after 2 years

Data Source: worldgovernmentbonds.com

2021 – The Year Ahead

2021 Outlook – Strong Recovery Will Continue

10

Equity

• Indian equity has remained one of the most favoured destination for FII money in 2020 which is likely to continue in this year as well, on the back of

accommodative stance by central banks globally and a weaker dollar.

• Economy will continue to strengthen further supported by RBI’s monetary support both in terms of liquidity infusion and lower rates. Equity markets will

get further boost if big fiscal spending announcements take place in upcoming budget.

• Export led recovery could lead growth of which IT has been the biggest beneficiary and this trend is likely to continue as cloud and digital unravels.

Healthcare sector has had a big tailwind and this is likely to continue as well. BFSI could continue to see some interest as the worst of the NPA cycle is

behind us. Volatility will persist but equity is expected to emerge as better performing asset class this decade.

Fixed Income

• RBI is expected to keep the stance accommodative and Repo rate near current levels in medium term as focus remains on growth. If inflation cools off to

the levels of RBI’s target, fresh rounds of interest rate cuts can be expected.

• RBI has been on forefront in tackling covid crisis with surplus liquidity and low rates and they will gradually move to withdrawal of unprecedented

accommodation as growth gets restored over medium term

• Yield curve is likely to bear flatten gradually, although it will remain at higher levels than usual average. Yield will continue to moderate over this decade

which will require a look at innovative solutions like REITs, InvIts and select credit.

Outlook and Opportunities

As we move to 2021, there are reasons to be more optimistic. First, Covid19 active cases have stopped to rise & vaccines are getting rolled out globally.

Second, countries globally are going all out to boost demand thereby helping the economy to recover back to the pre-Covid levels.

2021 Outlook – Strong Recovery Will Continue

11

Risks

Unexpected extension of current health crisis poses one of the biggest risk as it can again force the economies into uncertainties of lockdown.

A less than expected fiscal stimulus both at global and domestic level could provide roadblocks to recovering economies.

Uncertainty over Central Government budget announcements on fiscal spending and big ticket reforms.

Persistent high inflation could provide constrains to RBI’s loose monetary policy which is otherwise needed for growth.

Earnings disappointment over the next year could test the high valuations of the market.

Geopolitical risks: 1. Reaction of new US regime on US-China trade relations 2. UK Brexit deal with EU 3. Increase in crude prices due to ongoingproduction cuts.

Gold

• Traditionally, gold has been a risk-off asset class but since 2008 with the onset of QE and subsequent surplus liquidity into the system, it has started to

move in tandem with risky assets. Factors like high dollar liquidity, weaker dollar and favourable demand supply dynamics are indicating a comeback in

gold prices and could reach USD 2600-2800 over the next few years.

INR

• INR has largely underperformed EMFX as RBI has concentrated on increasing reserves thereby limiting appreciation of INR.

• Based on high REER and widening of trade deficit to $15.71bn in December from $12.48bn a year earlier, INR could head for a mild depreciation.

USDINR is expected to inch towards 74.00 zone in near term.

Real Estate

• After going through a phase of crisis in 2020, real estate sector is poised for a strong recovery led by residential and office segments. Lower interest

rates and a likely subsiding of WFH concerns may lead to faster than expected recovery in this asset class.

• Maharshtra govt.’s decision to cut construction premium by 50% and stamp duty cut will likely provide much needed boost to sales this year.

2021 Budget Expectations

12

• In order to support growth and boost demand, govt. is expected to provide much needed fiscal stimulus which has not surpassed 2% of

GDP in response to pandemic. A new fiscal consolidation roadmap need to be drawn which gives more impetus to growth.

Fiscal spending and consolidation

• Govt. may go for big disinvestment announcements to meet the revenue targets for next fiscal year.

Means to raise funds

• Govt. is expected not to increase any taxes which could affect the already sluggish demand.

• Tariff protections could be reversed and reforms could be expected to make industries more competitive.

Announcements regarding taxes

• Banking sector may get some support in the upcoming budget over concerns of higher NPAs due to pandemic

• Stressed sectors such as hospitality and aviation may get direct support from the govt.

Support for specific sectors

• Govt. may look to allocate more funds to rural economy in order to boost farms income.

Support for rural economy

Executive Summary

Asset Class View

14

Equity

• While bull run continued in equity markets due to relentless FII inflow,

recovery in domestic demand & corporate earnings are yet to catch up.

• Unabated global liquidity and positive news around development of

COVID vaccine indicate limited downside from medium term view.

• We continue with marginal underweight call on equity allocation,

based on respective risk profiles.

Fixed Income and Alternates

• CPI inflation is not showing any signs to cool off. RBI have also taken a pause in

interest rate cuts while maintaining accommodative stance.

• It is prudent to reduce interest rate sensitivity of the portfolio by trimming the

exposure to investments with high duration.

• Core allocation to high quality credit with judicious mix of carefully curated

high yield credit and niche alternates is advisable.

Investment Strategy

• Strategic- Good quality credit with comparatively higher yields

• Tactical – High yielding credit of issuers with sound business practices

• Alternates - Exposure to Gold – buy on dips

• Investments with predictable and regular cashflow

Shortlisted Products*

• Large Cap Funds

• Index Funds/ ETFs

• Multi Cap Funds

• Mid and small cap Funds

• International

Shortlisted Products*

• SP rated AAA, AA and A

• CAT II AIF

• InvIT/ REIT

• Credit Risk Funds

• Debt ETF

• Corporate Bond Funds

Investment Strategy

• Strategic – Businesses with visibility of early recovery of profitability

• Deployment – Staggered Deployment over 60 days .

• Tactical – Accelerate deployment in case of correction

• International equity allocation through FOF

Conservative Portfolio Moderate Portfolio Aggressive Portfolio

Model Portfolio vis-a

vis Tactical Asset

Allocation for

Existing Clients

Model Portfolio & Asset Allocation Summary

15

Your Portfolio Position & Our Recommended Allocation Across All Risk Profiles

Equity Fixed Income

Substantially undeployed

/ Fresh Capital to invest

• Deploy in 4 equal tranches over next 60 days to take

equity deployment to recommended level as per your

risk profile

• Immediate Deployment in good quality credit

where yields are comparatively higher as well as

in high yielding credit with select issuers

Deployed as per strategic

allocation

• Keep the balance amount as cash for better opportunities.

Review mid and small cap allocation in portfolio and in

case of overweight allocation, consider moving to large

cap/ Large & Mid Cap

• Review the underlying credit exposures

(direct/indirect) and reallocate, if needed.

• Trim the exposure to high duration and suitably

reallocate.

Please contact your financial advisor for more details & strategy

25%

70%

5%

22.5%

72.5%

5.0%

Equity Fixed Income Alternatives

Model Portfolio Current Allocation

45% 45%

10%

40%

50%

10%



60%

25%

15%

55%

30%

15%



India & Global Macros

India Macro

17

Manufacturing PMI remained above 55 for four consecutive months

27.430.8

47.2 4652

56.8 58.9 56.3 56.4

5.412.6

33.7 34.2

49.854.1

53.752.3

0

10

20

30

40

50

60

Manufacturing PMI Services PMI

Services PMI remained in expansionary zone for 3rd consecutive month

GST collections in Dec at all time high since its implementation

1,13,685

1,00,289 99,939 1,02,083 98,20291,916 95,379 1,03,491

1,03,184

32,172

62,151

90,917 87,422 86,449

95,4801,05,155 1,04,963

1,15,174

Apr May Jun Jul Aug Sep Oct Nov Dec

GST collection in FY20 GST collecton in FY21

December collections up 11.6% Y-o-Y

India Trade balance

-100%

-50%

0%

50%

100%

0

1500

3000

4500

De

c-1

5

Mar

-16

Jun

-16

Sep

-16

De

c-1

6

Mar

-17

Jun

-17

Sep

-17

De

c-1

7

Mar

-18

Jun

-18

Sep

-18

De

c-1

8

Mar

-19

Jun

-19

Sep

-19

De

c-1

9

Mar

-20

Jun

-20

Sep

-20

De

c-2

0

No. of new projects announced New investemnt projects % YoY- RHS

Investments continue to struggle

-20

-10

0

10

20

30

40

50


Imports Exports Trade Balance

Trade deficit widened to USD 15.7 billion in Dec as imports recovered and exports moderated. However in the medium term, exports should bounce back and lead the economic recovery.


Figures are in INR croreSource: Edelweiss Professional Investor Research, News Articles

Source: Edelweiss Research Source: Edelweiss Professional Investor Research

Global Macro

18

Strong revival in US housing market US retail sales (ex-food, auto, building material and gas stations)

(35)

(25)

(15)

(5)

5

15

25

Oct 11 Oct 12 Oct 13 Oct 14 Oct 15 Oct 16 Oct 17 Oct 18 Oct 19 Oct 20

(%, Y

oY)

US pending home sales

Strongest in a

90

95

100

105

110

115

T=0 T+1 T+2 T+3 T+4 T+5 T+6 T+7 T+8 T+9 T+10 T+11

(In

dex

reb

ased

to

10

0)

GFC COVID

US real rates in negative territory

• Economic activity in US has seen sharp recovery as reflected

by housing sector retail sales data.

• Concerns over the ongoing Covid wave in US remains but

with the rollout of vaccine, fears may subside.

• Also, with Biden government assuming office later this

month, expectations for another of fiscal stimulus remain

high.

(2)

(1)

0

1

2

3

Dec 04 Dec 06 Dec 08 Dec 10 Dec 12 Dec 14 Dec 16 Dec 18 Dec 20

(%)

US real rates

US real rates is US 10Y G-sec minus inflation expectations Source: Edelweiss Research, Bloomberg

Source: Edelweiss Research, Bloomberg Source: Edelweiss Research, BloombergNote: T=0 is June 2008 during GFC and Dec 2019 during Covid. One unit of T represents 1 month

Asset Class Specific Views & Performance

Equity

Prices Are Up Significantly Since Crash In March

21

Unexpectedly strong recovery of broader market

Data Source: NSE

Still, India MCap to GDP trading at discount to that of US

-29% -32%-38%

20%26%

28%

9.2%

15.5%

26.2%24.3% 22.7% 21.7%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

Nifty 50 NSE Midcap 100 NSE Smallcap 100

Q1CY20 Q2CY20 Q3CY20 Q4CY20

• Nifty 50, Mid cap 100 and Small cap 100 posted returns of 7.8%, 5.7% and 7.8% respectively in the month of December. Sustained global

and local liquidity along with news on vaccine development continue to drive the market, leading to a path of unchartered territory

signifying a ‘risk on’ mode in the market.

• Although, uncertainty remains in short term, long term attractiveness will continue to drive investors towards Indian equity market.

Data Source: Edelweiss Professional Investor Research, BSE, Ycharts.com

121

186

56

9077

0

50

100

150

200

Mar

ket

cap

to

GD

P r

atio

USA India India LT average (Since 2003)

Foreign Inflows Remain High

22

• Indian equity has seen one of the biggest FII inflow in

the recent times since market crash in March. Surplus

liquidity as result of unprecedented monetary support

has been the biggest factor.

• Bull market supported by inflows has also reflected in

the primary markets.

23

-3.2-5.8 -7.4 -8.5

-15.6-20.1-25

-15

-5

5

15

25

India Indonesia Malaysia SouthAfrica

Brazil Taiwan SouthKorea

USD

Bill

ion

14

15

16

17

18

-8

-6

-4

-2

0

2

4

6

8

10

USD

Tri

llio

n

USD

Bill

ion

FII Inflow in Equity - LHS Global Dollar Liquidity - RHS

Indian equity markets were major beneficiary of global liquidity FII inflow in equity in major emerging markets in CY20

Despite the pandemic, primary markets have remained bullish

2,558

2,979

2,521

0

500

1000

1500

2000

2500

3000

3500

2000 2005 2010 2015 2020

INR

Bill

ion

Equity fund raising

Indian equity receives highest inflow among emerging markets

Data Source: NSDL, Bloomberg, Edelweiss Professional Investor Research Data Source: NSDL, Bloomberg, Edelweiss Professional Investor Research

Data Source: Edelweiss Research, CMIE

Mixed Signals By Valuation Indicators

23

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1.0

P/E Vs P/B Vs BEER Ratio Decile

PE Decile PB Decile BEER Decile

Since Jan 2001

Max MinValue As of 31st Dec20

Decile as of Dec20

PE 35.16 9.15 35.16 1.0

PB 6.06 1.65 3.15 0.7

BEER 1.85 0.47 1.18 0.3

Valuations do not appear to be as expensive if looked through P/B and BEER* ratios

• When conventional valuation metric like PE is considered on standalone basis, markets look to be extremely expensive

• However, when we consider other metrics like PB and BEER ratio, they look fairly valued.

Data Source: Bloomberg*BEER is calculated by dividing the yield of a government bond by the current earnings yield of a stock benchmark in the same market. The idea behind the BEER ratio is that if stocks are yielding more than bonds, then they are undervalued; inversely, if bonds are yielding more than stocks, then stocks are overvalued.

Debt

Yield Curve Remains Steep While Inflation High

25

CPI-WPI gap has narrowly come down

Source: CEIC, Edelweiss Professional Investor Research

• Steepness in India sovereign yield curve (10Y - 3M G-sec) is near its decadal high owing to surplus liquidity in the system which has caused

the short term yields to ease up whereas longer term yields have been sticky for quite sometime.

• Inflation remains high and therefore limits any room for further rate cuts in the near term. As sluggish demand gets reflected accurately

and supply normalizes progressively, headline CPI inflation will likely moderate which will provide much needed room for RBI to cut policy

rate.

6.93

1.55

-4

-2

0

2

4

6

8

% Y

-o-Y

CPI Inflation WPI Inflation

CPI has remained above 6% YoY since April 2020

2

3

4

5

6

7

3M 1Y 2Y 3Y 5Y 7Y 10Y

%

29th Feb'20 (pre-covid) 30th Nov'20 31st Dec'20

RBI’s decisions has helped in injecting over INR 10 lakh crore (>4% of GDP) since March, resulting in easing up of yield across curve

Yields at shorter end have eased more than at longer end

Yield at longer end have remained more or less the same

Yield curve remains steep

Data Source: worldgovernmentbonds, Bloomberg

Opportunity Available In Select Credit

26

Corporate Bond Spreads Are Easing From Extreme Levels

• Considering spreads have reverted to their long term averages, investment opportunities in high quality credit have reasonably reduced.

• High yield credit papers issued by select corporates can be considered subject to proper due diligence.

5 Year Bonds including Corporates, Banks & NBFCs; spreads are over 5Y G-secData Source: Bloomberg

136

46

77

198

120

130

0

50

100

150

200

Jun

-14

Sep

-14

Dec

-14

Mar

-15

Jun

-15

Sep

-15

Dec

-15

Mar

-16

Jun

-16

Sep

-16

Dec

-16

Mar

-17

Jun

-17

Sep

-17

Dec

-17

Mar

-18

Jun

-18

Sep

-18

Dec

-18

Mar

-19

Jun

-19

Sep

-19

Dec

-19

Mar

-20

Jun

-20

Sep

-20

Dec

-20

5 Y AAA Spread 5 Y AAA Long Term Avg 5 Y AA Spread 5 Y AA Long Term Avg

The gap between AA and AAA has widened

5 Year Bonds including Corporates, Banks & NBFCs;Data Source: Bloomberg

74

53

40

60

80

Dec-19 Feb-20 Apr-20 Jun-20 Aug-20 Oct-20 Dec-20

5Y AA - 5Y AAA LT average (since Jan 2014)

Spread between 5Y AA and AAA has shot well beyond its long term average since lockdown

and are expected to decrease as systemic risks decrease with recovery in economy

Currency

INR Appreciation Remains Capped in CY20

28

INR has lagged EMFX appreciation

Data Source: Bloomberg , Edelweiss Professional Investor Research Data Source: Bloomberg , Edelweiss Professional Investor Research

Data Source: Bloomberg , Edelweiss Professional Investor Research

-25

-20

-15

-10

-5

0

5

10

CNY KRW TWD PHP SGD MYR THB IDR INR ZAR MXN RUB TRY BRL

%

CY20 Dec-20

117

105

110

115

120

125

Jan

-17

Mar

-17

May

-17

Jul-

17

Sep

-17

No

v-1

7

Jan

-18

Mar

-18

May

-18

Jul-

18

Sep

-18

No

v-1

8

Jan

-19

Mar

-19

May

-19

Jul-

19

Sep

-19

No

v-1

9

Jan

-20

Mar

-20

May

-20

Jul-

20

Sep

-20

No

v-2

0

Ind

ex

Trade Weighted REER Long Term Average

REER is still 7% above the Long term average

FPI net flows for the last one year RBI has absorbed flows to keep INR appreciation capped

581

450

475

500

525

550

575

600

USD

Bill

ion

RBI Forex Reserves

(20)

(15)

(10)

(5)

0

5

10

15

USD

Bill

ion

FPI Net Equity Flows FPI Net Debt Flows FPI Net Flows

Data Source: Bloomberg , Edelweiss Professional Investor Research

Model Portfolio

74%

13%

9% 4%

Large Cap Mid Cap Small Cap Others85%

8%4% 3%

Large Cap Mid Cap Small Cap Others

88%

8% 1%3%

Large Cap Mid Cap Small Cap Others

* Market Cap classification as per SEBI definition as on July 2020 portfolio details

Model Portfolio Characteristics

30

Parameters Values^

Duration 2.21Years

YTM 6.60%

Parameters Values

Duration 1.97Years

YTM 6..83%

Parameters Values

Duration 2.05 Years

YTM 7.16%

Market Cap wise Allocation* (as %age of Equity portfolio)

Portfolio Credit and Duration Profile (as %age of Fixed Income portfolio)



77%

19%

4%

AAA AA Others

72%

25%

3%

AAA AA Others

72%

22%

6%

AAA AA Others

31

204.10

182.43

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Model Portfolio Benchmark

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Change in Asset Allocation over time

Equity Debt

Calendar Year

ReturnsCY 2013 CY 2014 CY 2015 CY 2016 CY 2017 CY 2018 CY 2019 CY 2020

Model Portfolio 6.85% 12.15% 8.33% 7.47% 11.49% 6.12% 9.86% 12.56%

Benchmark 7.00% 7.33% 6.04% 6.73% 11.57% 5.85% 7.93% 10.12%

Trailing Return Model Portfolio Benchmark

3 Months 5.91% 6.99%

6 Months 9.28% 10.67%

12 Months 12.56% 10.12%

*Returns shown are gross of fees and taxes for Model Portfolio of Conservative Risk Profile published in monthly Investment Strategy. ^Volatility calculated based on quarterly returns till 31st March 2019 and on

monthly returns thereafter.

Past performance is not indicative of future returns. Benchmark consists of 25% NSE 100 & 75% accrual on straight line basis with 7% returns. ** Risk Free rate is assumed as 6%

Our Model Portfolio Performance - Conservative

Since Inception Model Portfolio Benchmark

CAGR* 9.32% 7.80%

Annualized

Volatility^5.59% 6.66%

Sharpe Ratio** 0.59 0.27

Model Portfolio: Conservative

32

Asset Class Category Allocation

Equity Large Cap Mutual Fund 22.5%

Fixed Income

Overnight/ Liquid Mutual Fund 2.5%

Arbitrage Fund 2.5%

Money Market Fund5.0%

Fixed Coupon SP – AA A Rating 5.0%

Fixed Coupon SP – AA Rating 15.0%

Bond FOF 4 Years Maturity 10.0%

Corporate Bond Fund 10.0%

Roll Down Strategy 10.0%

InvIT 12.5%

REIT 5.0%

Grand Total 100.0%

For deployment strategy, please refer to slide #15

33

287.79

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CAGR* 14.12% 10.42%

Annualized



Calendar Year


Model Portfolio 11.30% 38.67% 7.78% 2.26% 10.54% 10.96% 11.30% 13.91%

Benchmark 7.67% 20.34% 3.63% 4.46% 10.15% 10.23% 7.67% 14.35%


3 Months 8.33% 11.83%

6 Months 13.52% 17.34%

12 Months 13.91% 14.35%

*Returns shown are gross of fees and taxes for Model Portfolio of Moderate Risk Profile published in monthly Investment Strategy. Returns of PMS are as of 31st Dec 2020 . ^Volatility calculated based on quarterly

returns till 31st March 2019 and on monthly returns thereafter.

Past performance is not indicative of future returns. Benchmark consists of 50% NSE 100 & 50% Short Term Debt Mutual Fund Return. ** Risk Free rate is assumed as 6%

Our Model Portfolio Performance - Moderate

Model Portfolio: Moderate

34


Equity

Large Cap Mutual Fund 27.5%

Large Cap PMS 7.5%

Multi Cap PMS 5.0%

Fixed Income


Arbitrage Fund 5.0%

Money Market Fund 5.0%

Fixed Coupon SP – AA Rating 15.0%

Bond ETF 4 Years Maturity 10.0%

Roll Down Strategy 5.0%

InvIT 12.5%

REIT 5.0%

Grand Total 100.0%


35

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CAGR* 16.80% 10.83%

Annualized



Calendar Year


Model Portfolio 13.46% 50.16% 13.05% 10.38% 31.39% -3.43% 11.04% 15.71%

Benchmark 7.37% 23.77% 1.96% 5.94% 20.88% 3.57% 10.25% 14.92%


3 Months 12.03% 15.02%

6 Months 20.68% 21.82%

12 Months 15.71% 14.92%

*Returns shown are gross of fees and taxes for Model Portfolio of Aggressive Risk Profile published in monthly Investment Strategy. Returns of PMS are as of 31st Dec 2020. ^Volatility calculated based on quarterly returns till 31st

March 2019 and on monthly returns thereafter.Past performance is not indicative of future returns. Benchmark consists of 70% NSE 100 & 30% Short Term Debt Mutual Fund Return ** Risk Free rate is assumed as 6%

Our Model Portfolio Performance - Aggressive

Model Portfolio: Aggressive

36


Equity

Large Cap Mutual Fund 27.5%

Large Cap PMS 10.0%

Large & Mid Cap Fund 7.5%

Multi Cap PMS 5.0%

Small Cap Mutual Fund 5.0%

Fixed Income


Arbitrage Fund 5.0%

Fixed Coupon Structured Product – AA Rated 10.0%

Bond ETF 4 Years Maturity 10.0%

InvIT 12.5%

REIT 5.0%

Grand Total 100.0%


Data Tables & Annexure

Equity: Sector Performance

38

Source: Bloomberg; Data as on 31st December 2020

Percentage Change

Index Price 1 Month 3 Months 6 Months 12 Months 24 Months

Nifty 13,982 7.81% 24.31% 35.72% 14.90% 26.79%

Nifty 50 USD 6,630 9.27% 25.52% 40.24% 12.24% 10.37%

IT 24,251 11.42% 21.55% 64.37% 54.94% 86.74%

Auto 9,194 3.40% 16.25% 36.83% 11.46% -20.83%

Bank 31,264 5.59% 45.74% 46.30% -2.79% 14.19%

FMCG 34,177 7.75% 14.53% 13.68% 13.46% 25.99%

Pharma 12,916 9.09% 9.71% 29.35% 60.64% 37.63%

Metals 3,255 11.24% 45.13% 63.44% 16.18% -19.95%

Infrastructure 3,651 6.60% 18.50% 20.40% 12.15% 0.87%

Real Estate 314 20.16% 48.11% 54.87% 5.12% -8.95%

PSU Bank 1,753 12.47% 37.21% 22.75% -30.57% -52.39%

Media 1,649 9.70% 6.54% 22.75% -8.57% -52.74%

CNX Midcap 20,843 5.72% 22.73% 41.75% 21.87% 0.28%

BSE Small Cap 18,098 7.25% 21.73% 46.18% 32.11% -3.31%

India 10 Yr Gsec Yield (Chg bps) 5.87% -4.6 -14.6 -2.1 -69.0 -156.5

Indian Rupee 73.07 -1.32% -0.95% -3.24% 2.36% 14.91%

Debt: Data Table

39

Parameters Instruments As of 31/12/2020 As of 30/11/2020 As of 30/09/2020 As of 30/06/2020 As of 31/12/2019

Money Market Rates

Repo Rate 4.00% 4.00% 4.00% 4.00% 5.15%

Reverse Repo Rate 3.35% 3.35% 3.35% 3.35% 4.90%

Call Rates 3.45% 3.40% 3.50% 3.90% 5.25%

FBIL Bank Offer Rate O/N 3.51% 3.40% 3.79% 3.89% 5.26%

364 Days T Bills 3.46% 3.39% 3.73% 3.54% 5.30%

12 M CDs 4.03% 4.03% 4.03% 4.28% 5.98%

12M Commercial Paper 4.10% 4.05% 4.15% 4.20% 7.00%

3 M Certificate of Deposit 3.33% 3.33% 3.20% 4.20% 5.08%

3 M Commercial Paper 3.40% 3.25% 3.55% 3.30% 5.78%

Government Securities

3 Y Gilt 4.46% 4.35% 4.93% 4.40% 6.24%

5 Y Gilt 5.04% 5.08% 5.39% 5.28% 6.47%

10 Y Gilt 5.87% 5.91% 6.01% 5.89% 6.56%

30 Y Gilt 6.53% 6.59% 6.75% 6.55% 7.13%

Corporate Debt

3 Year AAA 4.69% 4.71% 5.31% 5.62% 6.95%

3 Year AA 5.59% 5.56% 6.09% 6.39% 7.62%

5 Year AAA 5.51% 5.55% 6.00% 6.16% 7.17%

5 Year AA 6.25% 6.28% 6.65% 6.81% 7.80%

10 Year AAA 6.59% 6.51% 6.79% 7.05% 7.63%

10 Year AA 7.35% 7.31% 7.57% 7.78% 8.28%

Spreads (bps)(5Year AAA - 5 Year G-Sec) 46 47 61 88 70

(5Year AA - 5 Year G-Sec) 120 120 125 153 133

Source: Bloomberg; Data as on 31st December 2020

High Frequency Indicators

40Source: Edelweiss Professional Investor Research

Industry(YoY, %)FY21YTD

(Avg)FY20 (Avg) Current as a % of Pre-Covid April as a % of Pre-Covid Nov-20 Oct-20 Sep-20 Aug-20 Jul-20 Jun-20 May-20 Apr-20 Mar-20 Feb-20 Jan-20 Dec-19 Nov-19 Oct-19

Credit To Industry 0.8 4.8 98 103 -1.7 0.0 0.5 0.8 2.3 1.7 1.7 0.7 0.7 2.5 1.6 2.4 3.4

Cement Production -20.4 0.1 87 14 2.8 -3.5 -14.5 -13.5 -6.8 -21.4 -86.0 -25.1 8.6 5.0 5.5 4.1 -7.7

CV (Quarterly) -52.5 -22.3 91 19 -20.1 -84.8 -48.3 -17.2

MHCV (Quarterly) -71.5 -34.6 51 9 -48.9 -94.1 -56.8 -38.5

LCV (Quarterly) -44.1 -14.2 111 28 -8.5 -79.7 -42.7 -4.6

Coal Production -2.1 -5.3 73 62 11.5 21.2 3.7 -5.7 -15.5 -14.0 -15.6 4.0 10.3 8.1 6.2 -2.5 -17.5

Steel Production -22.4 5.4 94 17 -2.7 2.8 -1.7 -8.3 -25.4 -43.1 -78.7 -21.9 -0.4 2.2 1.9 -3.7 -1.6

Eight Core Industry -12.8 -0.1 94 40 -2.5 -0.2 -7.3 -8.0 -13.0 -22.0 -37.0 -8.5 5.6 2.2 1.3 -1.6 -5.8

IIP Mining -12.7 -0.1 79 64 -1.5 1.4 -9.0 -12.8 -19.6 -20.5 -27.0 -1.3 10.0 5.4 5.4 1.7 -8.0

IIP Electricity -5.1 0.8 105 81 11.3 4.9 -1.8 -2.5 -10.0 -14.9 -23.0 -8.2 8.1 -0.1 -0.1 -5.0 -12.2

IIP Manufacturing -19.7 0.9 96 31 3.5 -0.2 -7.9 -11.6 -16.0 -38.4 -67.1 -22.8 3.3 -1.2 -1.2 2.7 -2.1

India Money Supply(M3) 12.1 10.1 109 104 12.5 11.6 12.2 12.6 13.2 12.4 11.7 10.8 8.9 10.2 11.3 10.4 9.8 10.6

Manufacturing PMI (abs) 46.9 51.7 103 50 56.3 58.9 56.8 52.0 46.0 47.2 30.8 27.4 51.8 54.5 55.3 52.7 51.2 50.6

Services (YoY, %)FY21YTD


Services PMI(abs) 35.7 51.0 96 10 53.7 54.1 49.8 41.8 34.2 33.7 12.6 5.4 49.3 57.5 55.5 53.3 52.7 49.2

Credit To Services 10.0 11.5 106 106 9.5 9.1 8.6 10.1 10.7 11.2 11.2 7.4 6.9 8.9 6.2 4.8 6.5

Foreign Tourist Arrival - 3.8 -66.4 -6.6 1.3 2.8 7.8 6.1

Airport Passenger Traffic -82.4 1.8 -62.2 -69.6 -78.6 -84.2 -85.3 -97.5 -99.8 -37.8 7.1 1.3 1.9 9.2 2.9

Airport cargo -40.7 -4.9 -13.9 -16.2 -29.4 -34.6 -40.6 -67.7 -82.9 -32.0 -1.2 -1.4 -4.2 -3.7 -6.5

Railway Freight Traffic -3.1 -1.3 100 60 9.0 15.4 15.5 3.9 -4.6 -7.7 -21.3 -35.3 -13.9 6.5 2.8 4.3 0.9 -8.1

Demand(YoY, %)FY21YTD


Personal Loans 10.5 16.5 104 99 9.3 9.2 10.6 11.2 10.5 10.6 12.1 15.0 17.1 16.9 15.9 16.4 17.2

Rural Wage Growth - 3.6 5.0 6.4 7.6 7.9 6.8 4.0 4.0 3.8 3.8 3.2 3.0 3.0

Non-Oil Imports -26.8 -6.3 98 45 -1.2 -2.2 -14.3 -20.1 -28.5 -45.2 -43.4 -59.7 -32.9 -1.6 -6.7 -11.6 -10.3 -9.2

Passenger cars -18.8 -24.9 106 0 10.5 9.7 28.9 14.1 -12.0 -58.0 -89.9 -53.3 -53.3 -8.8 -8.1 -8.4 -10.8 -6.3

Vans -23.2 -35.1 8.2 29.2 10.6 3.8 -18.8 -62.1 -86.4 -69.9 -69.9 -32.8 -27.7 -53.4 -34.3 -35.1

Utility Vehicles -7.5 4.1 17.2 20.5 24.5 15.5 13.9 -31.2 -75.5 -44.7 -44.7 0.1 2.6 30.0 32.7 22.2

POL Consumption -13.9 2.3 97 51 -3.7 2.4 -4.4 -16.0 -12.1 -9.0 -19.4 -48.7 -17.8 4.5 -0.6 0.1 10.7 -1.5

Two wheelers -16.6 -15.6 121 0 13.4 16.9 11.6 3.0 -15.2 -38.6 -83.8 -39.8 -39.8 -19.8 -16.1 -16.6 -14.3 -14.4

Three wheelers -77.3 -5.0 97 51 -57.6 -60.9 -71.9 -75.3 -77.2 -80.2 -95.3 -100.0 -58.3 -31.0 12.7 22.1 4.5 -3.6

Consumer Price Inflation 6.9 3.7 98 102 6.9 7.6 7.3 6.7 6.7 6.2 6.3 7.2 5.8 6.6 7.6 7.4 5.5 4.6

Core CPI( ex food and fuel)

5.3 4.1 147 121 5.8 5.7 5.5 5.6 5.5 5.1 4.94.8

3.84.1

4.2 3.73.5 3.5

Wholesale Price Inflation -0.3 1.4 54 -54 1.6 1.5 1.3 0.2 -0.3 -1.8 -3.4-1.6

0.42.3

3.1 2.60.6 0.2

High Frequency Indicators

41Source: Edelweiss Professional Investor Research

Fiscal- Centre (INR tn)FY21TD as

a % BEFY20TD as

a % BECurrent as a % of Pre-Covid April as a % of Pre-Covid Nov-20 Oct-20 Sep-20 Aug-20 Jul-20 Jun-20 May-20 Apr-20 Mar-20 Feb-20 Jan-20 Dec-19 Nov-19 Oct-19

GST 47.7 60.2 103 30 1.04 1.05 0.95 0.86 0.87 0.91 0.60 0.30 0.90 0.97 1.05 1.12 1.03 1.03

Total Receipts 31.5 48.6 114 22 1.43 1.88 1.44 0.79 1.08 0.18 0.28 3.22 1.46 1.05 1.66 0.78 0.97

Total Expenditure 55.3 65.2 102 173 1.82 2.31 1.94 2.38 3.04 2.05 3.07 2.21 1.97 1.59 2.90 1.65 1.66

Capital Expenditure 47.3 63.1 122 115 0.30 0.30 0.23 0.24 0.33 0.27 0.28 0.32 0.37 0.12 0.42 0.13 0.14

Revenue Expenditure 55.6 65.6 98 182 1.50 2.00 1.70 2.15 2.71 1.78 2.79 1.89 1.60 1.46 2.48 1.53 1.53

E-Way Bills (Vol. Cr.) - - 101 16 5.77 6.42 5.74 4.94 4.80 4.30 2.50 0.90 4.10 5.70 5.70 5.50 5.30 5.20

External/ Markets FY21YTD

(Avg)FY20(Avg)

Current as a % of Pre-Covid April as a % of Pre-Covid Nov-20 Oct-20 Sep-20 Aug-20 Jul-20 Jun-20 May-20 Apr-20 Mar-20 Feb-20 Jan-20 Dec-19 Nov-19 Oct-19

Indian Rupee(INR/USD) 74.8 70.3 103 107 74.2 73.5 73.5 74.7 75.0 75.7 75.7 76.2 74.4 71.5 71.3 71.2 71.5 71.0

REER 36 trade weighted 118.9 118.8 100 96 121.9 122.0 118.9 118.8 116.8 117.6 116.0 117.3 122.1 119.9 120.4 118.9 119.1

FX Reserves USD Bn 529.2 431.7 118 101 575 560.7 542.0 541.4 534.6 506.8 493.5 479.5 475.6 481.5 471.3 457.5 451.1 442.6

Trade Balance USD Bn -5.2 -13.7 69 55 -9.8 -8.7 -2.7 -6.8 -4.8 0.8 -3.1 -6.8 -9.8 -9.9 -15.2 -11.3 -12.2 -11.0

Services Surplus USD Bn 7.0 6.5 105 105 7.1 7.2 6.8 7.0 7.0 6.8 7.2 7.1 6.7 6.9 7.4 6.5 6.8

Crude Indian Basket 38.0 63.7 69 35 43.5 40.8 41.4 44.2 43.3 40.6 29.7 20.5 33.3 54.9 64.1 65.5 62.4 59.8

CAD % GDP 3.9 -1.5 3.9 0.1 -0.4

GSEC 10-Yr Yield % 6.0 6.8 90.5 96 5.9 5.9 6.0 6.0 5.8 6.0 6.1 6.2 6.2 6.4 6.6 6.6 6.7 6.7

NIFTY 1-Month Return % 5.4 0.5 11.4 3.5 -1.2 2.8 7.5 7.5 -2.8 14.7 -23.2 -6.4 -1.7 0.9 1.5 3.5

FlowsFY21YTD

(Sum)FY20 (sum) Current as a % of Pre-Covid April as a % of Pre-Covid Nov-20 Oct-20 Sep-20 Aug-20 Jul-20 Jun-20 May-20 Apr-20 Mar-20 Feb-20 Jan-20 Dec-19 Nov-19 Oct-19

FII Net Debt USD Bn -5.2 3.7 48 250 -0.4 0.5 0.4 -0.6 -0.2 -0.2 -2.7 -2.0 -7.8 0.0 -1.6 -0.8 -0.4 0.7

FII Net Equity USD Bn 22.2 6.5 1074 -60 9.6 2.5 -0.8 6.1 1.2 2.5 1.7 -0.5 -7.9 -0.2 2.0 0.9 3.1 2.1

Net FDI FLOWS USD Bn 25.9 24.3 2.4 17.8 3.2 -0.8 2.0 1.37 2.8 2.9 5.6 3.8 1.2 2.2

Private Transfers USD Bn 17.0 38.0 17.0 18.4 18.9

ECB USD Bn 14.5 30.7 37.3 18 2.0 5.2 1.6 2.1 1.0 1.5 1.00 7.4 4.1 6.8 2.0 2.1 3.4

MFs Net Equity INR Bn -111.3 488.9 56 67 -129.1 -27.2 -7.3 -40.0 -24.8 2.4 52.6 62.1 117.2 108.0 78.8 44.9 13.1 60.3

SIP Flows Bn 629.2 658.8 86 98 73.0 78.0 77.9 77.9 78.3 79.2 81.2 83.7 86.4 85.1 85.3 85.1 82.7 82.5

India Mobility (Base:100) 81.3 77.3 71.0 62.6 59.6 61.6 46.7 34.2 74.4 101.0

Disclaimer

42

Edelweiss Securities Limited (ESL) is currently in the business of Investment Advisory since December 2019. It is registered with SEBI as an Investment adviser (SEBI registration number INA200014140) and with AMFI (ARN- 3857). ESL is a subsidiary of Edelweiss Financial Services Limited. ESL has not received any order/notice for from Securities Exchange Board of India for any disciplinary action initiated against ESL with regard to the activities carried out by ESL in the capacity of Investment Advisor. In its capacity as Investment Advisor, ESL is providing advice to clients on the portfolio of client and does not provide advice for any particular securities/stocks or derivatives. ESL may or may not hold any position with regard to the any stock/security or derivative which is held by the client. ESL hereby mentions that there is no obligation on the client of ESL’s Investment Advisory division to execute any transaction through ESL or any other company of Edelweiss group in any manner.This document is prepared by ESL for its client in India and does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. The information contained herein is from publicly available data or other sources believed to be reliable. This document is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Each recipient of this document should make such investigation as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult his own advisors to determine the merits and risks of such investments. The investment discussed or views expressed may not be suitable for all investors. Mutual Fund Investments are subject to market risk. Kindly read the offer document / schemes document carefully before making an investment.This information is strictly confidential and is being furnished to you solely for your information. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in

whole or in part, for any purpose. This document is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject ESL and associates / group companies to any registration or licensing requirements within such jurisdiction. The distribution of this document / report in certain jurisdictions may be restricted by law, and persons in whose possession this report comes, should observe, any such restrictions. The information given in this document / report is as of the date of this report and there can be no assurance that future results or events will be consistent with this information. This information is subject to change without any prior notice. ESL reserves the right to make modifications and alterations to this statement as may be required from time to time. ESL or any of its associates / group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. ESL is committed to providing independent and transparent recommendation to its clients. Neither ESL nor any of its associates, group companies, directors, employees, agents or representatives shall be liable for any damages whether direct, indirect, special or consequential including loss of revenue or lost profits that may arise from or in connection with the use of the information. Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed herein. Past performance is not necessarily a guide to future performance. The information provided in these document / remains, unless otherwise stated, the copyright of ESL. All layout, design, original artwork, concepts and other Intellectual Properties, remains the property and copyright of ESL and may not be used in any form or for any purpose whatsoever by any party without the express written permission of the copyright holders.ESL shall not be liable for any delay or any other interruption which may occur in presenting the data due to any reason including network (Internet) reasons or snags in the system, break down of the system or any other equipment, server

breakdown, maintenance shutdown, breakdown of communication services or inability of ESL to present the data. In no event shall ESL be liable for any damages, including without limitation direct or indirect, special, incidental, or consequential damages, losses or expenses arising in connection with the data presented by the ESL through this document / report. We will not treat recipients as customers by virtue of their receiving this report.ESL and its associates, officer, directors, and employees may: (a) from time to time, have long or short positions in, and buy or sell the securities thereof, of company(ies), mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the subject company/company(ies) discussed herein or act as advisor or lender/borrower to such company(ies) or have other potential/material conflict of interest with respect to any information and opinions at the time of publication of document. ESL may have proprietary long/short position in the above mentioned scrip(s) and therefore should be considered as interested. The views provided herein are general in nature and do not consider risk appetite or investment objective of any particular investor; readers are requested to take independent professional advice before investing. This should not be construed as invitation or solicitation to do business with ESL. Participants in foreign exchange transactions may incur risks arising from several factors, including the following: (i) exchange rates can be volatile and are subject to large fluctuations; (ii) the value of currencies may be affected by numerous market factors, including world and national economic, political and regulatory events, events in equity and debt markets and changes in interest rates; and (iii) currencies may be subject to devaluation or government imposed exchange controls which could affect the value of the currency. Investors in securities such as ADRs and Currency Derivatives, whose values are affected by the currency of an underlying security, effectively assume currency risk.

Disclaimer

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Investment in securities market are subject to market risks, read all the related documents carefully before investing.Edelweiss Global Wealth Management Limited or EGWML is currently in the business of Investment Advisory since June 2015 and Distribution of third party products since 2010. It is registered with SEBI as an Investment adviser (SEBI registration number INA000003098) and with AMFI (ARN- 104095). Edelweiss Global Wealth Management offer its’ investment advisory services and distribution services from two divisions namely Investment Advisory division and Distribution division and receives/may receive distribution commission for the products sold to its clients. EGWML is Group Company of Edelweiss Financial Services Ltd. and EGWML may distribute the products of the group companies of the EFSL as per the regulatory guidelines. Currently EGWML is providing Investment advice to its clients. EGWML has not received any order/notice for from Securities Exchange Board of India for any disciplinary action initiated against EGWML with regard to the activities carried out by EGWML. In its capacity as Investment Advisor, EGWML is providing advice to clients on the portfolio of client and does not provide advice for any particular securities/stocks or derivatives. EGWML may or may not hold any position with regard to the any stock/security or derivative which is held by the client. EGWML hereby mentions that there is no obligation on the client of EGWML’s Investment Advisory division to execute any transaction through EGWML or any other company of Edelweiss group in any manner.This document is prepared by Edelweiss Securities Ltd.. Edelweiss Securities Ltd. provided this document to Edelweiss Global Wealth Management Ltd. (EGWML) for communication to EGWML’s client in India and does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. This document should not be considered as an Investment advice. The information contained herein is from publicly available data or other sources believed to be reliable. This document is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Each recipient of this document should make such investigation as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult his own Investment advisors to determine the merits and risks of such investments. The investment discussed or views expressed may not be suitable for all investors. Mutual Fund Investments are subject to market risk. Kindly read the offer document / schemes document carefully before making an investment.This information is strictly confidential and is being furnished to you solely for your information. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose. This document is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject EGWML and associates / group companies to any registration or licensing requirements within such jurisdiction. The distribution of this document / report in certain jurisdictions may be restricted by law, and persons in whose possession this report comes, should observe, any such restrictions. The information given in this document / report is as of the date of this report and there can be no assurance that future results or events will be consistent with this information. This information is subject to change without any prior notice. EGWML reserves the right to make modifications and alterations to this statement as may be required from time to time. EGWML or any of its associates / group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. EGWML is committed to providing independent and transparent recommendation to its clients. Neither EGWML nor any of its associates, group companies, directors, employees, agents or representatives shall be liable for any damages whether direct, indirect, special or consequential including loss of revenue or lost profits that may arise from or in connection with the use of the information. Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed herein. Past performance is not necessarily a guide to future performance. The information provided in these document / remains, unless otherwise stated, the copyright of EGWML. All layout, design, original artwork, concepts and other Intellectual Properties, remains the property and copyright of EGWML may not be used in any form or for any purpose whatsoever by any party without the express written permission of the copyright holders.EGWML shall not be liable for any delay or any other interruption which may occur in presenting the data due to any reason including network (Internet) reasons or snags in the system, break down of the system or any other equipment, server breakdown, maintenance shutdown, breakdown of communication services or inability of the EGWML and EBL to present the data. In no event shall EGWML be liable for any damages, including without limitation direct or indirect, special, incidental, or consequential damages, losses or expenses arising in connection with the data presented by the EGWML through this document / report. We will not treat recipients as customers by virtue of their receiving this report.EGWML and its associates, officer, directors, and employees may: (a) from time to time, have long or short positions in, and buy or sell the securities thereof, of company(ies), mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the subject company/company(ies) discussed herein or act as advisor or lender/borrower to such company(ies) or have other potential/material conflict of interest with respect to any information and opinions at the time of publication of document. EGWML may have proprietary long/short position in the above mentioned scrip(s) and therefore should be considered as interested. The views provided herein are general in nature and do not consider risk appetite or investment objective of any particular investor; readers are requested to take independent professional advice before investing. This should not be construed as invitation or solicitation to do business with EGWML. Participants in foreign exchange transactions may incur risks arising from several factors, including the following: ( i) exchange rates can be volatile and are subject to large fluctuations; ( ii) the value of currencies may be affected by numerous market factors, including world and national economic, political and regulatory events, events in equity and debt markets and changes in interest rates; and (iii) currencies may be subject to devaluation or government imposed exchange controls which could affect the value of the currency. Investors in securities such as ADRs and Currency Derivatives, whose values are affected by the currency of an underlying security, effectively assume currency risk.The data contained in this document is only indicative / illustrative. Before opening any attachments please check them for viruses and defects.The data would be provided to the clients on an "as is" and "where-is" basis, without any warranty. Edelweiss or its subsidiaries and associated companies shall not be liable for any delay or any other interruption which may occur in providing the data due to any reason including network (Internet) reasons or snags in the system, break down of the system or any other equipment, server breakdown, maintenance shutdown, breakdown of communication services or inability of the Edelweiss or its subsidiaries and associated companies to provide the data. In no event shall the EGWML be liable for any damages, including without limitation direct or indirect, special, incidental, or consequential damages, losses or expenses arising in connection with the data provided by the EGWML or its subsidiaries and associated companies.

Entity Name Edelweiss Global Wealth Management Limited

Type of Registration Non-Individual

Registration Number INA000003098

Validity of registration Valid till it is suspended or cancelled by the Board

Address & Contact No. Edelweiss House, Off CST Road, Kalina, Mumbai 400098

Principal Officer Vimal Khajuria , +91 (22) 45046526 , [email protected]

SEBI regional/local office address.Securities and Exchange Board of India

SEBI Bhavan Plot No. C 4-A, G Block,Bandra Kurla Complex,Bandra East, Mumbai- 400051.

mailto:[email protected]

Disclaimer

44

Investment in securities market are subject to market risks, read all the related documents carefully before investing.Broking and DP services offered by Edelweiss Broking Limited under SEBI Registration No.: INZ000005231 (Member of NSE, BSE and MSE) and IN-DP-NSDL-314-2009 (DP with NSDL and CDSL). Investor grievance resolution team: 040-40316936. Name of the Compliance Officer for Trading & DP - Mr. Brijmohan Bohra, Email IDs: [email protected] / [email protected]. Corporate Office: Edelweiss House, Off CST Road, Kalina, Mumbai - 400098; Tel. 18001023335 / (022) 42722200 / 40094279. Registered Office: . Registered Office: 2nd Floor, Office No. 201 to 203, Zodiac Plaza, Xavier College Road, Off C G Road, Ahmedabad - 380009. Contact: (079) 40019900 / 66629900Edelweiss Broking Ltd. acts in the capacity of distributor for Products such as OFS, Mutual Funds and NCD etc. Mutual Fund Investments are subject to market risks. Please read all scheme related documents carefully before investing. Investment in the securities involves risks, investor should consult his own advisors to determine the merits and risks of investment.This document is prepared by Edelweiss Securities Ltd.. Edelweiss Securities Ltd. provided this document to Edelweiss Broking Ltd (EBL) for distributing to EBL’s client in India and does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. This document should not be considered as an Investment advice. The information contained herein is from publicly available data or other sources believed to be reliable. This document is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Each recipient of this document should make such investigation as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult his own Investment advisors to determine the merits and risks of such investments. The investment discussed or views expressed may not be suitable for all investors. Mutual Fund Investments are subject to market risk. Kindly read the offer document / schemes document carefully before making an investment.This information is strictly confidential and is being furnished to you solely for your information. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose. This document is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject EBL and associates / group companies to any registration or licensing requirements within such jurisdiction. The distribution of this document / report in certain jurisdictions may be restricted by law, and persons in whose possession this report comes, should observe, any such restrictions. The information given in this document / report is as of the date of this report and there can be no assurance that future results or events will be consistent with this information. This information is subject to change without any prior notice. EBL reserves the right to make modifications and alterations to this statement as may be required from time to time. EBL or any of its associates / group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. EBL is committed to providing independent and transparent recommendation to its clients. Neither EBL nor any of its associates, group companies, directors, employees, agents or representatives shall be liable for any damages whether direct, indirect, special or consequential including loss of revenue or lost profits that may arise from or in connection with the use of the information. Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed herein. Past performance is not necessarily a guide to future performance. The information provided in these document / remains, unless otherwise stated, the copyright of EBL. All layout, design, original artwork, concepts and other Intellectual Properties, remains the property and copyright of EBL and may not be used in any form or for any purpose whatsoever by any party without the express written permission of the copyright holders.EBL shall not be liable for any delay or any other interruption which may occur in presenting the data due to any reason including network (Internet) reasons or snags in the system, break down of the system or any other equipment, server breakdown, maintenance shutdown, breakdown of communication services or inability of the EBL to present the data. In no event shall EBL be liable for any damages, including without limitation direct or indirect, special, incidental, or consequential damages, losses or expenses arising in connection with the data presented by the EBL through this document / report. We will not treat recipients as customers by virtue of their receiving this report.EBL and its associates, officer, directors, and employees may: (a) from time to time, have long or short positions in, and buy or sell the securities thereof, of company(ies), mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the subject company/company(ies) discussed herein or act as advisor or lender/borrower to such company(ies) or have other potential/material conflict of interest with respect to any information and opinions at the time of publication of document. EBL may have proprietary long/short position in the above mentioned scrip(s) and therefore should be considered as interested. The views provided herein are general in nature and do not consider risk appetite or investment objective of any particular investor; readers are requested to take independent professional advice before investing. This should not be construed as invitation or solicitation to do business with EBL. Participants in foreign exchange transactions may incur risks arising from several factors, including the following: ( i) exchange rates can be volatile and are subject to large fluctuations; ( ii) the value of currencies may be affected by numerous market factors, including world and national economic, political and regulatory events, events in equity and debt markets and changes in interest rates; and (iii) currencies may be subject to devaluation or government imposed exchange controls which could affect the value of the currency. Investors in securities such as ADRs and Currency Derivatives, whose values are affected by the currency of an underlying security, effectively assume currency risk.The data contained in this document is only indicative / illustrative. Before opening any attachments please check them for viruses and defects.The data would be provided to the clients on an "as is" and "where-is" basis, without any warranty. Edelweiss or its subsidiaries and associated companies shall not be liable for any delay or any other interruption which may occur in providing the data due to any reason including network (Internet) reasons or snags in the system, break down of the system or any other equipment, server breakdown, maintenance shutdown, breakdown of communication services or inability of the Edelweiss or its subsidiaries and associated companies to provide the data. In no event shall the Edelweiss be liable for any damages, including without limitation direct or indirect, special, incidental, or consequential damages, losses or expenses arising in connection with the data provided by the Edelweiss or its subsidiaries and associated companies.



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Investment Strategy Report Jan 21 - Edelweiss