Edelweiss Mutual Fund Introduces Edelweiss Large & Midcap Index Fund

Nov 15, 2021

Edelweiss Mutual Fund has launched an open-ended equity scheme – Edelweiss Large & Midcap Index Fund.

The scheme will be replicating the Nifty LargeMidcap 250 Index.

The investment objective of the scheme is to provide returns before expenses that closely correspond to the total returns of the Nifty Large Midcap 250 Index subject to tracking errors. However, there is no assurance that the investment objective of the Scheme will be realized and the Scheme does not assure or guarantee any returns.

Under normal circumstances, 95% to 100% of the funds portfolio will be invested in Equity & equity related securities constituting the Nifty LargeMidcap 250 Index. It can also invest 0% to 5% of its assets in Debt Securities and Money Market Instruments (including commercial papers, commercial bills, treasury bills, Government securities).

The investment strategy of Edelweiss Large & Midcap Index Fund as mentioned in the Scheme Information Document (SID) is as follows:

Being an Index Scheme, the Scheme will follow passive investment strategy and will invest not less than 95% of its corpus in stocks comprising the underlying index - Nifty LargeMidcap 250 Index with the objective to provide investment returns that, before expenses, closely corresponds to the returns equivalent to the index, subject to tracking errors. The Scheme may also invest a part of its corpus in money market instruments and / or units of liquid schemes to meet liquidity requirements from time to time. However, there is no assurance that the investment objective of the Scheme will be realized and the Scheme does not assure or guarantee any returns.

The Scheme will invest in stocks the same weightage as the constituents of the underlying Index viz. Nifty LargeMidcap 250 Index. The Scheme shall also invest in debt and money market instruments to meet the liquidity requirements. This allocation will be steadily monitored and it shall be ensured that investments are made in accordance with the Scheme objective and within the regulatory and internal investment restrictions prescribed from time to time. Diversification across sectors/companies at the time of investments shall also manage the risk.

The Fund has designed a detailed process to identify, measure, monitor and manage the portfolio risk. The aim is not to eliminate the risk completely but to have a structured mechanism towards risk management thereby maximizing potential opportunities and minimize the adverse effects of risk. Few of the key risks identified are Credit risk, Performance risk¸ Concentration risk, Liquidity risk, and Interest rate risk.

The Scheme will endeavour to keep the portfolio turnover at a minimum. However, the portfolio turnover ratio may vary as the Scheme may change the portfolio according to Asset Allocation to align itself with the objectives of the Scheme and in accordance with the composition of Nifty LargeMidcap 250 Index.

The Fund will endeavor to keep the tracking error as low as possible. Under normal circumstances, such tracking error is not expected to exceed 2% per annum

Edelweiss Large & Midcap Index Fund’s performance will be benchmarked against NIFTY LargeMidcap 250 TRI (Total Return Index).

The fund will be managed by Mr Bhavesh Jain.

The NFO opens for subscription on November 15, 2021 and closes on November 26, 2021. The scheme will reopen for ongoing subscription and redemption on or before: December 10, 2021.

The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter.

The fund offers Regular Plan and Direct Plan having Growth and Income Distribution cum capital withdrawal (IDCW) (Payout, Reinvestment & Transfer facility).