NFO Alert: Edelweiss MF Debuts Multi Asset Allocation Fund, Subscription To Open From 5th June

One of India's fastest-growing AMCs, Edelweiss Mutual Fund, today announced the opening of the Edelweiss Multi Asset Allocation Fund. This is an open-ended scheme investing in asset classes like Equity, Debt, Gold and Silver. The subscription period for new fund offers (NFOs) runs from June 5 through June 19, 2023. The scheme's indicative asset allocation will be 10-80% in equity and equity-related instruments, 10-80% in debt and money market instruments, 10-30% in commodity ETFs and Exchange Traded Commodity Derivatives (ETCDs), and 0-10% in REIT and InvIT units.

A 35-40% equity arbitrage allocation, consisting of equity cash futures with no open equity exposure, is part of the fund's portfolio strategy. Also included is a 10-15% allocation for Gold & Silver Arbitrage, which uses a 100% hedged approach for Gold & Silver and has no open exposure to any other commodity. The remaining 45-55% is allocated to fixed income securities having a tenure of one to three years, or Macaulay, such as corporate bonds with ratings of G-Sec, SDL, and AAA.

"We are excited to unveil the Edelweiss Multi Asset Allocation Fund, a distinctive strategy with a purpose to provide investors 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." said Radhika Gupta, MD & CEO, Edelweiss Asset Management.

Edelweiss Multi Asset Allocation Fund would be managed by Bhavesh Jain & Bharat Lahoti (Equity), Dhawal Dalal (Debt), Amit Vora (Overseas), Ashish Sood (Commodities).

In the month of April the net inflow of Multi Asset Allocation Funds was Rs 444.73 Cr which is slightly lower than the March 2023 figure of Rs 473.22 Cr. During the month of April 2022, the net inflow of multi asset allocation funds was Rs 210.03 Cr. Multi asset allocation funds experienced the largest inflows in December, totalling Rs 1,711.42 crore, per AMFI data and the highest inflow of Rs 2,181.69 Cr in January 2023.

Commenting on the how fund will perform, Ms. Radhika Gupta is the MD & CEO of Edelweiss Asset Management said "Multi-asset funds are invoked due to the favourable performance of various asset classes apart from Equities. Asset classes like Gold and silver commodities, in particular, have done well, especially with the rise-in the US interest rates and the Dollar Index. Many multi-asset funds are now investing in international equities as well, considering their corrected valuations and the higher yields in debt. As a result, investors are optimistic about the future performance of multi-asset funds. At Edelweiss, we have introduced a different and unique structure for our multi-asset allocation fund solution, the Edelweiss Multi Asset Allocation Fund. This fund aims a distinctive strategy with a purpose to provide investors a product that is a fixed income alternative with enhanced tax efficiency. We are excited to unveil this strategy and offer investors a well-rounded investment product."

One of the AMCs with the highest rate of growth in India is Edelweiss Mutual Fund, which offers investment options in equities, hybrid, fixed income, and alternatives.