Edelweiss Focused Equity Fund NFO Review

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.

Objective

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.

Fund Details

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
Exit Load	0-1%
Suitability	Very High
Benchmark	NIFTY 500 TRI
Plans and Options	Regular Plan & Direct Plan, Growth Option & Income Distribution cum Capital Withdrawal (IDCW) Option

NOTE:

All additional investment amounts should be multiple of INR 1/-

Exit Load:

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

Fund Manager

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.

Asset Allocation

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

Concluding Remarks

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

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