Edelweiss Asset Management Company today launched a new open-ended product aimed at providing enhanced returns over long periods through better portfolio risk management.
The product -- 'Boom' (Beta overlay over mutual funds) -- follows a back-tested model, which has consistently delivered better returns over a 10-year period, the company said.
The plan is based on a strategy that aspires to offer equity investors the best of both worlds, that is allowing them to invest in mutual funds and yet help restrict the volatility risk," Edelweiss AMC Chief Executive Vikaas M Sachdeva told reporters here.
The product, launched under Edelweiss' personalised managed accounts (PMA) business, is designed to protect against a weak or falling market while capturing gains during a rising market.
"The biggest problem that investors faces today is the volatility in the equity market and our new product seeks to address this issue," Edelweiss Head (Investment Advisory Group) Peeyoosh Chadda said.
It provides protection against the downside and leads to superior long-term returns at much lower risk, he said.
Equity mutual funds present one of the best routes to invest in capital market as they have outperformed the Nifty in each of the last 10 years, he said.
However, during periods of weakness in the markets, they may end up giving negative returns, Chadda cautioned.