TWIN-WIN-Minimum Fixed Return @6.75% Per Annum Plus Equity Upside

Edelweiss mutual fund

Unique Investment Opportunity : TWIN- WIN – Fixed Return with Equity Upside by Edelweiss Structured Solutions (PMS)

In our continuous endeavor to update our valued investor about the New Investment Ideas/Theme, we would like to share that,TWIN WIN – Fixed Return with Equity Upside, an innovative PMS from the house of Edelweiss.

 WHAT IS TWIN WIN – Fixed Return with Equity Upside PMS?

 TWIN WIN PMS will invest 92% of the Portfolio in Edelweiss Cumulative Coupon Bond and remaining 8% will be invested in Equity Linked Instruments.  The amount invested in Cumulative Bonds will provide CAPITAL PROTECTIONand generate fixed returns of 6.75% pa and the Equity Exposure will provide upside if Nifty grows more than 6.75% pa over a 3 years period.

Taxation :

Taxation same as Direct Equity Investment viz., 10% LTCG Tax

Twin Win Return Scenario :

Note:Twin-Win returns showcased are for illustrative purposes only.  The returns are pre-tax and post-cost (Excluding set-up fees).

Historically -59% of the Time, Twin Win has Delivered ~18%* p.a. Return

*Based on back tested data from 01-Jan-till 09-Oct 18 assuming daily investment, covering 3855 observations.  Back testing / past       performance is not an indication of future performance.

Twin Win v/s Direct Equities v/s Fixed Deposits

Strategy Details :

Ø  Invest in Listed, Rated and Principal Protected Market Linked Debentures

Ø  Credit Rating : Minimum AA Rated

Ø  Secured : Investment in Secured Debentures

Ø  Minimum Investment : Rs. 26 lakhs

Ø  Tenure of Underlying Investment : 3.5 years

Ø  Return Profile : Maximum of Absolute Returns of 26.8% or Nifty Underlying Performance


RECOMMENDATION : In our opinion in the present scenario replete with uncertainty, a small portion of Portfolio which is intended for Equity Investment should be allocated to such Strategy as it not only assures Capital Protection and Fixed Returns but also provides an opportunity of Gaining from the Equity Market Upside in next 3 years therebyProtecting Loss from the downside of Equity Market.



Author: Midas Finserve

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