Edelweiss Asset Management Ltd has announced the launch of a new fund ‘Edelweiss Focused Equity Fund’. As the name suggests, this is a focused-equity scheme that aims to create a curated portfolio of 25-30 potentially promising stocks spread across three key investing opportunities of brands, market share gainers, and innovators. Further, the fund is both market-cap as well as sector agnostic, thereby enabling investors to capitalise upon a wider spectrum of opportunities.
According to the company, the fund’s approach of creating a concentrated portfolio of robust stocks that are tied to these three investing ideas can potentially help investors capture both prevailing as well as emerging opportunities and generate reasonable returns over the long-term. From an investment approach perspective, the fund aims to invest in both established as well as emerging brands, companies that either have significant market share or the potential to increase market share, and innovators and disruptors.
Commenting on the same, Radhika Gupta, MD & CEO, Edelweiss Asset Management Ltd, said, “India is set for one of the best periods of business growth and transformation driven by several factors, including compelling demographics, enabling regulation, strong manufacturing push, and accelerated digitisation. We believe that some key opportunities that are likely to dominate future growth will be tethered to investment opportunities like brands, market share gainers, and innovators and disruptors. To optimally capitalise upon these, we are launching the Edelweiss Focused Equity fund that will take concentrated exposure to companies within these three investing opportunities.”
“We have always been very selective in launching new funds and have done them at the right time. Last year, we saw both markets and valuations stretching and took a conscious decision to avoid launching any new active equity funds. However, we believe that the current market landscape, post a significant correction, is ripe for such an offering and have thus chosen to launch this NFO,” she added.
Trideep Bhattacharya, CIO-Equities, Edelweiss Asset Management Ltd, said, “The Indian economy is poised to grow at a strong clip as a host of factors such as rising household income, supportive government policies, increasing consumption, and thrust on manufacturing and infrastructure are giving rise to compelling business and investment opportunities. Keeping this in mind, we are launching the Edelweiss Focused Equity fund, which is designed to add unique value to investor portfolios through curated exposure to select investment opportunities, i.e., brands, market share gainers, and innovators and disruptors.”
Trideep added, “As India grows and the factors mentioned above align, we expect strong existing and emerging brands to capitalise upon these opportunities and expand their footprint. Further, companies that have a strong operating leverage or distinctive moats can gain market share and witness earnings growth and expansion. And lastly, with accelerated innovation, we expect to see new companies disrupt existing ecosystems and generate exponential value. Our fund aims to invest across all the above opportunities that are relevant to India in its current stage of evolution.”
The benchmark for the fund will be NIFTY500 TRI. The Edelweiss Focused Equity Fund will open for subscription between 12th and 25th July 2022 and offers both direct and regular plan. The Fund will be managed by Trideep Bhattacharya, CIO-Equities, and Abhishek Gupta, Fund Manager, Edelweiss AMC.