Edelweiss Asset Management Limited Edelweiss Diversified Growth Equity Top 100 Fund Presentation Internal Circulation Only

Equities – Asset Class Selection Process

Equities as an asset class Return of Various Asset Classes Gold FDs Equities 1997 -49% 11% 20% 1998 -14% 12% -18% 1999 -1% 67% 2000 -33% -15% 2001 34% 10% -16% 2002 55% 3% 2003 45% 8% 72% 2004 -4% 6% 2005 38% 36% 2006 23% 40% 2007 19% 7% 2008 -24% 9% -52% 2009 48% 76% Investors have access to several choices, which one is best suited for me? Evaluate each investment on the basis of Returns Volatility Investment Horizon Liquidity Cost – Management and Transaction Ease of transacting Tax efficiency Monitoring and Performance checks In the highlighted years, equities beat both competing classes Increasing opportunities with increasing complexities. Source: Edelweiss Research, CMIE Prowess 3

Rs 100 invested in 3 popular choices – Gold, Bonds & Equities Equities - Rs 578 Bonds – Rs 299 Gold – Rs 194 Initial Rs 100 Source: Edelweiss Research, CMIE Prowess INR 100 invested in equities in Jan 1996 would have grown to INR 578 in equities in Dec 2009, compared to INR 194 in gold and INR 299 in bonds.

Equities: One of India’s Best Asset Classes Most of our mutual fund investments are for our long term needs. Superior return Convenient transactions Tax benefits Ease of ownership Importance of Investment Horizon Diminishing Probability of Negative Return Equities: One of India’s Best Asset Classes The longer you stay invested the higher the chances of making money Equities outperform other asset classes such as FDs and gold. Mutual Funds are a simple and easy way to achieve equity exposure. Most Mutual Funds require just a simple one page form with basic KYC details. Capital gains tax, which is applicable for mutual funds, may be less than the tax applicable for other investments.

Equities investments: Time in the market v/s timing the market BSE Sensex: Negative Periods Rolling Time Period One Year Five Years Ten Years Fifteen Years 36% 14% 3% 0% Period of the study: January 1990 to January 2010 Key Takeaways: If one stays invested for any one year period from 1990 to 2010, there would be a 64/100 chance of a making money. In 5 years that number rises to 86/100 Also, the consistency of returns grows with the investment horizon The facts which emerge: You tend to be in the money the longer you stay invested Equities frequently outperform other asset classes in both – short and long term Over the long term there is higher predictability of returns 1Percent of periods that have negative return, daily rolling from Jan 1990 to Jan 2010; Source: Edelweiss Research, CMIE Prowess 6

Why Edelweiss Mutual Fund?

Why Edelweiss Mutual Fund? Strong Parentage – Built on Edelweiss Equities Franchise A house focused on continuous innovation Commitment to Consistent Investment Management Performance Robust risk management systems – House and AMC level Team and state of the art systems dedicated to investor/distributor service ISC Presence across locations resulting in better distributor & customer service People and Processes dedicated to customer delight

The Process is the Edge Sector Focus Edelweiss Process Growth-Oriented Sectoral focus is key differentiator from most other funds which focus on bottom up stock picking only Sector Focus Edelweiss Process Sector- Focused Growth-Oriented Process-Based Diversified Focus on real and implied growth in stock valuations. Select stocks that score well along both parameters Growth-Oriented Rigorous process driven investment approach and diversified portfolio construction provide consistency Diversified No star dependency; systems are an output of organisational processes Clear focus on testing and research rather than intuition and gut-feel Process-Based 9

Edelweiss E.D.G.E Top 100 Fund Fund Summary

EDGE Top 100 has beaten the Nifty consistently 155.5 142.9 Scheme Name 1 Month 3 Months 6 Months ITD* Nifty ITD Outperformance (ITD) Inception Date EDGE Top 100 2.5% 12.34% 17.4% 35.8% 28.1% 12.5% 20-May-09 * ITD Values are Compounded Annual Growth Rate since the Scheme has been operational for more than a year Data as on October 29, 2010, Source: MFI explorer EDGE Top 100 has outperformed Nifty in 13 of the past 18 months 11

Summary - What makes E.D.G.E. unique? Universe Watch list Portfolio Filter stocks based on criteria on Market cap. Top 200 by M Cap Watch list created on the basis of performance attributes such as growth, value, sector theme Construction: Selected from the watch list on the basis of consistency and relative ranking Portfolio Monitoring and Risk Management: Sector and stock specific limits, Market cap based allocations, Portfolio liquidity considerations Differentiated Stock Selection of the Universe, filters at each level to ensure quality of portfolio construction

The Edelweiss E.D.G.E Top 100 Fund Universe of the Top 200 stocks by market cap Conviction based on Size, Diversification of business, past performance Liquidity – minimum traded volume (Top 1-200 Market cap companies) Basis for Selection of Universe Basis for Selection of Watch-List Fundamental Factors Technical Factors Stock picking from companies in the selected watch-list by applying a proprietary Sectoral Framework Disciplined Price-Level Management and Portfolio Monitoring Growth Factors Value Factors Price Performance Factors Implied Growth Expectations E.D.G.E – Your window to the Top 200 companies in India

Large Cap Universe – Top 200 Investment Universe is the Top 200 by Market cap The Fund would identify companies for investment, based on the following criteria: Good track record of the company Potential for future growth Industry economic scenario Benefits of investing in Large Cap Companies Lower volatility than the broader market Better access to credit and cash reserves increases predictability for future performance Businesses spread across various International and Domestic Markets Nifty Large cap companies are resilient in tough market conditions and provide significant upside potential in favorable market cycles 14 14

Edelweiss Diversified Growth Equity (E.D.G.E.) Top 100 Fund Fund Positioning Top 200 by Market cap dedicated universe of stocks 80% of AUM invested in Top 100 companies with relatively lower volatility than the broader market Alpha Generation based on Edelweiss in house stock and sector selection model – winning stocks from winning sectors Active portfolio monitoring and risk management to aim for lower than market drawdowns Risk-Return Matrix Risk  Return  Fund Nifty The aim being consistent out performance with lower volatility.

Disclaimers Mutual Fund Investments are subject to market risks. Risk Factors: All Mutual Fund and securities investments are subject to market risk and there can be no assurance that the scheme’s objectives will be achieved. As with any investment in securities, the NAV of the Units issued under the Scheme can go up or down depending on the factors and forces affecting the capital markets. Past performance of the Sponsor and their Affiliates/AMC/Mutual Fund & its Scheme(s) does not indicate the future performance of the Scheme and may not necessarily provide a basis of comparison with other investments. Investment in Mutual Fund Units involves investment risks such as trading volumes, settlement risk, liquidity risk, default risk including the possible loss of principal. As the price / value / interest rates of the securities in which the scheme invests fluctuates, the value of your investment in the scheme may go up or down. The sponsor is not responsible or liable for any loss resulting from the operation of the scheme beyond the initial contribution of Rs. 1,00,000/- made by it towards setting up Edelweiss Mutual Fund. Investors are not being offered any guaranteed / assured returns under any scheme of Edelweiss Mutual Fund. Statutory Details: Edelweiss Mutual Fund is set up as a Trust under the Indian Trust Act, 1882 by Edelweiss Capital Limited. Sponsor: Edelweiss Capital Limited (ECL) [liability restricted to initial contribution of Rs. 1 Lac]. Trustee: Edelweiss Trusteeship Company Limited (ETCL), a Company registered under the Companies Act, 1956. Investment Manager: Edelweiss Asset Management Limited (EAML), a Company registered under the Companies Act, 1956. Copy of the Statement of Additional Information (SAI) / Scheme Information Document (SID) and the Key Information Memorandum (KIM) can be obtained from any of our Investor Services Centers as well as from our website www.edelweissmf.com Mutual Fund Investments are subject to market risks. Please read SAI & respective SID carefully before investing. This document is for internal circulation only

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