NFO alert - Edelweiss mutual fund introduces first-of-its-kind Multicap Smart Beta Index Fund and ETF; should you invest?

Edelweiss Nifty500 Multicap Momentum Quality 50 Index Fund and Edelweiss Nifty500 Multicap Momentum Quality 50 ETF to combine quality and momentum for consistent returns.

Edelweiss Mutual Fund has launched two innovative investment products – the Edelweiss Nifty500 Multicap Momentum Quality 50 Index Fund and Edelweiss Nifty500 Multicap Momentum Quality 50 ETF. These funds aim to capitalize on the synergy of quality and momentum factors, offering investors access to 50 stocks across Large-Cap, Mid-Cap, and Small-Cap segments selected from the Nifty500 universe. The New Fund Offer (NFO) is open for subscription from October 11 to 25, 2024.

Key Features of Edelweiss Mutual Fund NFO

• First-of-its-kind Multicap Smart Beta Fund: Combines quality and momentum factors to select 50 stocks from the Nifty500 universe.
• Broad Stock Coverage: Includes 10 large-cap, 15 mid-cap, and 25 small-cap stocks, providing diversified exposure.
• Superior Returns: The Nifty500 Multicap Momentum Quality 50 Index has delivered 23.79 per cent returns, outperforming the Nifty500's 15.57 per cent.
• Innovative Strategy: Aims to reduce risk while leveraging market trends and strong fundamentals, particularly in mid and small-cap stocks.

Both the Index Fund and ETF are structured to replicate the performance of the Nifty500 Multicap Momentum Quality 50 Index, allowing investors to benefit from robust financial health, earnings stability, and consistent fundamentals while capturing price momentum.

Management Comments
Radhika Gupta, MD & CEO of Edelweiss Mutual Fund, highlighted the funds' unique positioning: "We’re excited to launch this Index fund and ETF, leveraging the quality factor that’s now performing better. By combining momentum and quality, it selects stocks with strong financial health, earnings stability, and consistent fundamentals while capturing market trends and reducing risk."

Investment Details

• Index Fund: Initial lump sum or SIP investments start at Rs 100, with increments as low as Re 1.
• ETF: Minimum subscription is Rs 5,000, with increments of Re 1 thereafter.

Fund Manager
The funds will be managed by Bhavesh Jain and Bharat Lahoti, co-heads of factor investing at Edelweiss Mutual Fund, ensuring professional expertise in navigating this innovative strategy.

Who should invest in this fund?
The Edelweiss Nifty500 Multicap Momentum Quality 50 Index Fund and ETF are designed to offer investors a balance of momentum and quality, targeting consistent risk-adjusted returns across market cycles. With the backing of one of India's fastest-growing asset management companies, these funds represent a compelling opportunity for investors seeking diversified and innovative portfolio solutions.

Disclaimer: The article is for informational purposes only and not investment advice.