Edelweiss Mutual Fund announced the launch of the Edelweiss Multi Cap Fund. The scheme opened for public subscription on October 04, 2023, and will close on October 18, 2023. The scheme re-opens for continuous sale and repurchase on or before November 02, 2023.
What kind of mutual fund scheme is this?
This is an open-ended equity scheme investing across large-cap, mid-cap, and small-cap stocks.
What is the main objective of investing in this fund?
The primary objective of Edelweiss Multi Cap Fund is to generate long-term capital appreciation by investing in a diversified portfolio of equity and equity-related instruments across large-cap, mid-cap, and small-cap stocks. The scheme will be benchmarked against the NIFTY 500 Multicap 50:25:25 Index TRI.
Edelweiss Mutual Fund’s investment framework assists in selecting sound companies that are offered at reasonable rates without favouring either value or growth investing strategies. The company will use the forensic framework and prioritise reasonably priced businesses with medium-term earnings potential. The investment approach will remain style-agnostic, focusing on well-managed companies with scalable opportunities and superior returns on capital employed, aiming for sustained long-term returns.
Radhika Gupta, MD & CEO, Edelweiss Mutual Fund, said, “India is set to embrace a promising decade of growth, driven by a dynamic and affluent young demographic, a thriving digital economy, improving exports, infrastructure enhancements, and improved credit accessibility. We believe that our experience in successfully managing mid and small-cap strategies over the last 15 years through bottom-up stock picking will prove to be an edge while managing a multi-cap fund, which has a higher tilt towards this segment.”
How may one invest in this scheme?
Investors can invest under the scheme with a minimum investment of ₹1000 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:
Indicative allocations (% of total assets)
Equity and Equity-related Instruments of Large, Mid, and, Small cap companies of which
Large Cap Companies
|Mid Cap Companies
|Small Cap Companies
|Debt securities (including securitized debt & debt derivatives) and money market instruments
Low to Moderate
Units issued by REITs and InvITs
Moderate to High
Are there similar mutual funds in the market?
To date, many asset management companies (AMCs) have launched such multi-cap funds, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. Some of these include:
Name of the fund
Five-year returns (in %)
Nippon India Multicap Fund
ICICI Prudential Multicap Fund
Mahindra Manulife Multi Cap Fund
Invesco India Multicap Fund
Baroda BNP Paribas Multi Cap Fund
Sundaram Multi Cap Fund
|Source: AMFI (As on October 4, 2023)
How will the scheme benchmark its performance?
The performance of the scheme will be benchmarked against theNIFTY 500 Multicap 50:25:25 TRI.
It has been selected as the benchmark as it is the most appropriate index among the options provided by AMFI. Since the fund is a multicap fund and has no bias towards sector or market cap allocation, the NIFTY 500 Multicap 50:25:25 TRI index is an appropriate benchmark.
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.
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 /switched out on or before 90 days from the date of allotment – 1% of the appliable NAV.
- If the units are redeemed /switched out after 90 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.
Who will manage this scheme?
Trideep Bhattacharya, Sahil Shah and Amit Vora will be looking after the investments in this scheme.
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.