NFO Alert: Edelweiss MF launches multi-asset allocation fund

The new fund offer (NFO) is open for subscription from June 5 to June 19, 2023.

Edelweiss Mutual Fund, one of India’s fastest-growing AMCs, announced the launch of Edelweiss Multi Asset Allocation Fund. This is an open-ended scheme investing in equity, debt, gold and silver. The fund provides investors with an opportunity to generate fixed income-like returns in a tax-efficient way. 

The new fund offer (NFO) is open for subscription from June 5 to June 19, 2023.

 The fund's primary focus will be to generate low volatile fixed-income equivalent returns by investing in fixed-income, equity arbitrage, and gold & silver arbitrage. The portfolio construction will prioritize mitigating volatility, positioning itself as an alternative investment option when compared to other fixed-income products available in the market.

“We are excited to unveil the Edelweiss Multi Asset Allocation Fund, a distinctive strategy with the purpose to provide investors with 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 and CEO, Edelweiss Asset Management.

The scheme’s indicative asset allocation will be 10– 80 per cent towards equity and equity-related instruments, 10–80 per cent towards debt and money market instruments, 10-30 per cent towards commodity ETFs, Exchange Traded Commodity Derivatives (ETCDs) and 0-10 per cent towards units issued by REITs and InvITs.

The portfolio construction strategy includes a 35- 40 per cent allocation to Equity Arbitrage, comprising Equity Cash Futures with no open equity exposure. Additionally, there is a 10-15 per cent allocation to Gold and Silver Arbitrage, employing a 100 per cent hedged strategy for Gold and Silver and no open exposure to any other commodity. The remaining 45-55 per cent is allocated to fixed-income instruments with a 1–3-year Macaulay duration, including G-Sec, SDL, and AAA-rated corporate bonds. 

The scheme would be managed by Bhavesh Jain and Bharat Lahoti (Equity), Dhawal Dalal (Debt), Amit Vora (Overseas), and Ashish Sood (Commodities).