Edelweiss to launch a new NFO in the focused equity category: Edelweiss Focused Equity Fund
Edelweiss Mutual Fund is launching a new focused equity fund, Edelweiss Focused Equity Fund, that invests in a maximum of 30 stocks across market caps.
The New Fund Offer (NFO) period for the Edelweiss Focused Equity Fund is from July 12th 2022, to July 25th 2022.
The Edelweiss Focused Equity Fund’s investment objective of the fund is to generate long-term capital gains for investors by investing in equity and equity-related instruments of up to 30 companies across market capitalization. However, there is no assurance that the investment objective of the focused equity fund will be realized, and the fund does not guarantee any returns.
|Edelweiss Focused Equity Fund||Details|
|NFO Opening Date||July 12th 2022|
|NFO Closing Date||July 25th 2022|
|Re-opens for Continuous Sale||August 5th 2022|
|Type of Fund||Open-ended equity scheme|
|Fund Manager||Mr Trideep Bhattacharya, Mr Abhishek Gupta|
|Minimum Investment Amount||INR 5,000|
|Minimum Additional Purchase Amount||INR 500|
|Benchmark||NIFTY 500 TRI|
|Plans and Options||Regular Plan & Direct Plan, Growth Option & Income Distribution cum Capital Withdrawal (IDCW) Option|
All additional investment amounts should be multiple of INR 1/-
If the Units are redeemed/switched out on or before 365 days from the date of allotment – 1.00%
If the Units are redeemed/switched out after 365 days from the date of allotment – Nil.
Who Can Invest?
Focused Equity Funds have a high conviction and more concentrated strategies. These funds invest in up to 30 companies of all market cap sizes.
Edelweiss Focused Equity Fund has a focused portfolio. It invests across 25 to 30 stocks with strong business models. Furthermore, the fund adopts a benchmark, sector and market-cap agnostic approach. The fund uses the following three investing opportunities to curate its portfolio:
- Brands: Chooses established and emerging brands across B2C as well as B2B segment
- Market-share Gainers: Invests across market-share leaders and also emerging market-share gainers
- Innovators: Identifies innovators, adaptors and also enablers of new business models
Thus, the fund is aimed at investors looking to invest in the equity sector with exposure to different market capitalizations – large-cap, mid-cap and small-cap.
Since the portfolio is concentrated, a high-risk tolerance level is required for investing in the scheme. The fund aims to provide exposure across market capitalizations. Moreover, the scheme is more aligned to long-term financial goals. Furthermore, the Edelweiss Focused Equity Fund is aimed at investors with a longer investment duration of 5+ years.
Popular Funds by Edelweiss Mutual Funds
- Edelweiss Greater China Equity Off shore Fund
- Edelweiss Mid Cap Fund
- Edelweiss Small Cap Fund
- Edelweiss Large & Mid Fund
- Edelweiss Balanced Advantage Fund
Mr Trideep Bhattacharya
Mr Trideep Bhattacharya has more than two decades of experience in Equity investing across Indian and Global markets. He is currently the Chief Investment Officer – Equities at Edelweiss AMC. Prior to joining Edelweiss AMC, he was with Axis Asset Management Company, State Street Global Advisors and UBS Global Asset Management (London, UK).
Mr Bhattacharya holds a PGDBM in Finance from SP Jain Institute of Management & Research, Mumbai and also a B.Tech degree in Electrical Engineering from IIT, Kharagpur.
Mr Abhishek Gupta
Mr Abhishek Gupta has more than 16 years of experience in the Indian equity markets. He is currently the Fund Manager (Equities) at Edelweiss Asset Management. Prior to joining Edelweiss, he was with Goldman Sachs Asset Management, Deutsche AMC (India), Baer Capital Partners and Nippon Asset Management.
Mr Gupta completed his PGDM in Finance & Marketing from IIM, Kolkata and also holds a BCOM degree from Shri Ram College of Commerce (SRCC), Delhi.
Following is the indicative asset allocation of the Edelweiss Focused Equity Fund.
|Types of Instruments||Indicative Allocation Minimum||Indicative Allocation Maximum||Risk Profile|
|Equity and Equity Related Instruments||65%||100%||High|
|Debt and Money Market Instruments||0||35%||Low to Medium|
|Units issued by REITs and InvITs||0||10%||Medium to High|
Edelweiss Focused Equity Fund is an open-ended equity scheme that aims to invest in a maximum of 30 stocks across market capitalization. Also, it is a multi-cap portfolio that aims to follow a benchmark and sector-agnostic approach. Furthermore, the fund follows three timeless opportunities to identify and invest in stocks – 1) Brands, 2) Market share gainers, and 3) Innovators.
Since Edelweiss Focused Equity Fund is a focused fund, it may suffer from concentration-induced volatility. The fund may be more volatile than diversified funds or broad-based indices.
Edelweiss Focused Equity Fund is aimed at investors who understand and are also willing to take on the risk associated with focused equity mutual funds. Furthermore, a long-term investment horizon is necessary since the fund has a focused investing approach and invests across equities. Moreover, it is prudent to monitor the investments closely since the fund does not guarantee returns.
Frequently Asked Questions
You can invest in the Edelweiss Focused Equity Fund NFO through any of the following methods:
Offline: By filling out the Edelweiss Focused Equity Fund NFO application and submitting it along with all documents and cheques to the nearest Investor Service Center of CAMS or Edelweiss mutual fund office.
1. Edelweiss Mutual Fund Website
2. Online FinTech platforms and mutual fund platforms
3. Through demat account
4. Through a mutual fund distributor or agent
According to the riskometer, it is a very high-risk investment. Edelweiss Focused Equity Fund is a pure equity mutual fund that invests in up to 25 to 30 stocks. Thus, the scheme falls under the very high-risk category. Also, due to the focused nature of the fund, it may suffer from concentration-induced volatility. Thus, you should be aware of the associated risks while investing.
Edelweiss Focused Equity Fund doesn’t have a lock-in period. Mutual fund units can be bought and sold easily. Thus, the scheme offers good volatility.