Edelweiss Asset Management Limited has launched three new fund offers (NFOs) in equity passive category – Edelweiss Nifty Next 50 Index Fund, Edelweiss Nifty Midcap 150 Momentum 50 Index Fund and Edelweiss Nifty Smallcap 250 Index Fund. These are open-ended equity schemes replicating Nifty Next 50 Index, Nifty Midcap 150 Momentum 50 Index and Nifty Smallcap 250 Index respectively subject to tracking errors.
The NFOs are open for subscription from 10th November to 24th November 2022.
Commenting on the NFOs, Radhika Gupta, MD and CEO, Edelweiss AMC, said, “Edelweiss AMC is today managing the largest portfolio of passive debt funds. The launch of three new equity index funds further strengthens our product portfolio within our passive fund offerings. With these products, we intend to reach out to a larger investor base and offer best-in-class solutions for the investor needs.”
These 3-equity passive index funds may be used to create your own low-cost multi-cap portfolio. The combo allocation allows you to get exposure in high-growth companies (via Edelweiss Nifty Next 50 Index Fund), rule-based Momentum play in Midcap space (Edelweiss Nifty Midcap 150 Momentum 50 Index Fund), and companies that are emerging leaders (Edelweiss Nifty Smallcap 250 Index Fund).
Combo allocation benefit
Edelweiss AMC said in a statement that a key benefit for an investor to invest via combo allocation is that it allows diversification across sectors and market cap with low cost. Such combo helps to improve the risk-adjusted returns for investors and has consistently (Trailing and Rolling basis) outperformed Category Average Flexicap Funds and Nifty 500 Index TRI. This may also provide a much-needed boost, in terms of returns to the portfolio.
Investors can also be better off investing in these combos through a Systematic Investment Plan (SIP), it added.
Edelweiss Nifty Next 50 Index Fund will aim to replicate the constituents of Nifty Next 50 Index. 50 companies from NIFTY 100 are selected after excluding the constituents of NIFTY 50 Index. Their weights are assigned based on companies’ free-float market-cap.
Edelweiss Nifty Midcap 150 Momentum 50 Index Fund will aim to replicate the constituents of Nifty Midcap 150 Momentum 50 Index. The index consist of 50 companies based on the highest Momentum Score. This is derived from the last six and twelve months’ price returns adjusted for volatility. Weights are derived by multiplying the stock’s free-float market cap with the momentum score. Each stock in the index is capped at the lower of 5% or 5 times the weight of the stock in the index based only on free float market capitalization.
Edelweiss Nifty Small cap 250 Index Fund will aim to replicate the constituents of Nifty Small cap 250 Index. The selection of stocks will be based on 250 companies representing the companies ranked 251-500 from the NIFTY 500 Index. Weights are assigned based on the free-float market cap of the stocks.