Edelweiss Mutual Fund announced the launch of the Edelweiss Multi Asset Allocation Fund, an open-ended scheme investing in Equity, Debt, Commodities, and in units of REITs & InvITs.
The scheme opened for public subscription on June 05, 2023, and will close on June 19, 2023. The scheme re-opens for continuous sale and repurchase on or before July 04, 2023.
Q. What kind of mutual fund scheme is this?
This is an open-ended scheme investing in Equity, Debt, Commodities, and units of REITs & InvITs.
Q. What is the main objective of investing in this fund?
The primary investment objective of the scheme is to provide investors with an opportunity to invest in an actively managed portfolio of multiple asset classes. However, there is no assurance that the investment objective of the scheme will be realized. Also, the scheme does not assure or guarantee any returns.
Radhika Gupta, MD & CEO, Edelweiss Asset Management said, “We are excited to unveil the Edelweiss Multi Asset Allocation Fund, a distinctive strategy with a purpose to provide investors with a product that is fixed income alternative with enhanced tax efficiency. As part of our ongoing commitment to introducing innovative products that cater to investors' diverse investment needs, this fund is a timely solution in the multi-asset category that aims to provide low volatile fixed income like returns.”
Q. How may one invest in this scheme?
Investors can invest under the scheme with a minimum investment of ₹5000 per plan/option and in multiples of Re 1. There is no upper limit for investment.
Under normal circumstances, the asset allocation of the scheme will be as follows:
Instruments | Indicative allocations (% of total assets) | Risk Profile |
Equity & Equity related instruments | 10% to 80% | High |
Debts and money market instrument | 10% to 80% | Low to Moderate |
Commodity ETFs, Exchange Traded Commodity Derivatives (ETCDs) and any other mode of investment in commodities as permitted by SEBI from time to time. | 10% to 30% | Moderate to High |
Units issued by REITs and InvITs | 0% to 10% | Moderate to High |
Q. Are there similar mutual funds in the market?
To date, many asset management companies (AMCs) have launched such multi-asset funds, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. These include:
Name of the fund | Five-year returns (in %) |
| Quant Multi Asset Fund | 21.65% |
ICICI Prudential Multi-Asset Fund | 15.40% |
HDFC Multi-Asset Fund | 11.92% |
Axis Multi Asset Allocation Fund | 11.42% |
SBI Multi Asset Allocation Fund | 10.67% |
UTI Multi Asset Fund | 8.80% |
| Source: MoneyControl | |
Q. How will the scheme benchmark its performance?
The performance of the scheme will be benchmarked against the Nifty 500 TRI (40%) + Nifty 5 yr Benchmark G-Sec Index (50%) + Domestic Gold Prices (5%) + Domestic Silver Prices (5%).
The AMC/Trustee reserves the right to change the benchmark for evaluation of the performance of the Scheme from time to time, subject to SEBI Regulations and other prevailing guidelines if any.
Q. Are there any entry or exit loads to this scheme?
This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” would be charged as per the following:
- If the units are redeemed or switched out on or before 30 days from the date of allotment – 0.10%
- If the units are redeemed or switched out after 30 days from the date of allotment – Nil
The AMC reserves the right to revise the load structure from time to time. Such changes will become effective prospectively from the date such changes are incorporated.
Q. Who will manage this scheme?
Bhavesh Jain and Bharat Lahoti would be looking after the equity investments in this scheme.
Dhawal Dalal would be looking after the debt component while Amit Vora is the designated fund manager for overseas investments in this scheme.
Ashish Sood would be looking after investments in commodities.
Q. Does the fund contain any inherent risk?
The scheme involves “Very High Risk” as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to very high risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.
