S A F E

F YIELD ORIENTED IDEAS

(A Listed, Rated & Principal Protected Market Linked Debenture)
Valid for Aug’19

N I N E T Y

Y
 What are Structured Products / Market Linked Debentures ?

• Structured Products/ Market Linked Debentures (MLDs) are customised investment products where
returns are linked to the performance of an underlying like Nifty 50 index, 10 Year G-Sec Benchmark,
Basket of Stocks etc.

• Structured Products offer investors different levels of market exposure, risk, return and protection, and
act as valuable portfolio return enhancement tool

What Are The Effective Uses of Structured Products ?

PROTECTION DIVERSIFICATION CUSTOMIZATION

Different levels of principal Different combinations of Capability to optimize returns

protection (100% to 0%). Hedge for payoff profiles and underlying across market cycles, with tax
existing portfolio. customizable efficiency.
 What are Yield Oriented Structures ?

A superior way of investing in What is their Edge?

Fixed Income -
Traditional Structured
Fixed Income Products
Earn fixed returns on maturity

Taxation applicable is lower compared to

traditional fixed instruments1

Alpha of ~1-4% over other fixed return

products post tax basis on annualized
return in 1-3 Yrs

Higher visibility of capital gains over

other fixed income instruments

1 Taxation is as per our understanding and Investors are requested to solicit personal & professional tax advice on these instruments before investing.
 ECAP Equities - Yield Oriented Structured Product Ideas
Post-Tax1 Alpha Over
Fixed High Quality
Deposits Accrual Funds
Client Yield
~13 Months 8.86% 3.60%
10.10% 3.96%
Maturity Post Tax Yield 1

Client Yield
~16 Months 8.86%
10.10% 3.96% 3.60%
Maturity Post Tax Yield 1

1 Taxation is as per our understanding and Investors are requested to solicit personal & professional tax advice on these instruments before investing.
Assumptions: FD interest of 7.00%-7.5% between 1-3 Years and Net YTM of 7.5-7.75% for High Quality Accrual Funds. Investor falls in the highest tax-bracket.
. Strictly Private and Confidential. This is not an Offer Document and does not constitute an Offer.
 ECAP Equities - Yield Oriented Structured Product Ideas
Post-Tax1 Alpha Over
Fixed High Quality
Deposits Accrual Funds

Client Yield
~21 Months 9.21%
10.50% 4.10% 3.96%
Maturity Post Tax Yield 1

Client Yield
~34 Months 9.43%
10.75% 4.39% 4.18%
Maturity Post Tax Yield 1

1 Taxation is as per our understanding and Investors are requested to solicit personal & professional tax advice on these instruments before investing.
Assumptions: FD interest of 7%-7.5% between 1-3 Years and Net YTM of 8.5% for High Quality Accrual Funds. Investor falls in the highest tax-bracket.
. Strictly Private and Confidential. This is not an Offer Document and does not constitute an Offer.
 Yield Oriented Structured Product Ideas

STRATEGY Yield Oriented Ideas

ISSUER ECAP Equities

CREDIT RATING PP-MLD-(AA-)
SECURED Yes, with a minimum 1x charge created with Debenture Trustee
LISTING Listed on leading stock exchange

MINIMUM INVESTMENT
300 Debentures for ECAP Equities Ltd.
AMOUNT

Principal Amount is protected at maturity, to the extent of Face Value of Underlying

PRINCIPAL PROTECTION
Investment

TENOR Upto 3 years

RETURN PROFILE OF If Final Underlying7 performance > pre-determined binary Level6, then Fixed Yield (IRR)
UNDERLYING INVESTMENT If Final Underlying7 performance < pre-determined binary Level6 , then Principal

7Underlying for products could be Nifty Index/Nifty Gsec Index

6Pre-determined binary levels for Nifty Index is 25% and for Nifty Gsec Index is 50%

Strictly Private and Confidential. This is not an Offer Document and does not constitute an Offer.
 4

Sample Pay-Off Scenario – ~1.3 Year Maturity ; 10.10% Yield

Fixed Returns at Maturity Unless Nifty Gsec Index Corrects By 50% from Initial Level

Scenario 1 – Market Rises Scenario 2 – Market Falls

Nifty GSec Nifty GSec

Nifty GSec Product Product Nifty GSec Product Product
index index
index Return3,4 IRR 3,4 index Return3,4 IRR 3,4
Return Return
Assumed
1815 100% 15% 10.10% 907 Entry 0% 15% 10.10%
Level5

817 -10% 15% 10.10%

1361 50% 15% 10.10%
681 -25% 15% 10.10%
1134 25% 15% 10.10%
454 -50% 0.00% 0%

Principal 2
Protected
998 10% 15% 10.10%
227 -75% 0.00% 0%
Assumed
907 Entry 0% 15% 10.10% 91 -90% 0.00% 0%
Level5

2 Principalprotection is available to the extent of the Face Value of the underlying investment in Market Linked Debentures and subject to the credit risk of the
Issuer of the Market Linked Debentures.
3 Above returns showcased are for illustrative purposes only. The returns are pre-tax and post-cost (Excluding set-up fees).
4 Realized return on investment may differ may differ, as there may be a difference in purchase value and face value of the security on the date of investment.
Strictly Private and Confidential. This is not an Offer Document and does not constitute an Offer.
 Edelweiss Structured Product Advantage

Ranked #1 Issuer Pioneer in

Successful track
for last 4 Years; structuring on Experts in option
record of more
Market Share different structuring
than 10 years
>30% underlying

*As per independent CARE report

Strictly Private and Confidential. This is not an Offer Document and does not constitute an Offer.
 Risk Factors
1 Credit Risk

 Repayment of principal as well as the

returns are subject to the credit risk of
the underlying investments
 In the event the Issuer is insolvent or
goes bankrupt, the investor may stand
to lose the entire invested Principal.

2 Liquidity Risk

 Underlying investments are fixed tenor

with no interim exit options for the
investor.
 While the underlying investments can be
listed, there is no assurance that liquidity
will be available on the same if there are
no active buyers and sellers.

3 Interest Rate Risk

 Rise and fall in the interest rates

influence the valuation of the
investment, thus may result in mark to
market loss during the life of the
investment.
For detailed information about the risks mentioned above and other risks, please refer to the offer document.
Investors should consult their financial advisors and read the offer document before investing.
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