Unable to get IPO allotment? Take help of this MF to invest in upcoming and recently-listed IPOs

Since last year, IPOs are raining in India. Investors get excited with each upcoming IPOs as they deliver exceptional returns post listing. 

Recently, Zomato IPO delivered higher returns to whosoever got the allotment. The offer price was Rs 76 and currently, its share price is Rs 135, which has delivered around 77 per cent returns post-listing. Similarly, many such IPOs delivered overwhelming returns. Nevertheless, there is no assurance that you get the allotment after applying for IPO. As many times, these IPOs are oversubscribed and we lose the chance of getting the allotment. If you get the allotment, then consider yourself lucky! In case, you don’t get an allotment and still want exposure to these IPOs, then there is a way. Let’s look further into this. 

Edelweiss Recently Listed IPO Fund is an open-ended equity scheme, following the theme of investing in recently-listed companies or upcoming IPOs. Edelweiss Maiden Opportunities Fund-Series 1, a closed-ended scheme was converted into Edelweiss Recently Listed IPO Fund (open-ended) scheme and is now open for investment w.e.f. June 29, 2021. 

The main objective of this fund is to invest in new-age businesses that are getting listed in the Indian Market. The fund does not try to invest in IPOs for generating returns but investing by looking at the growth potential of the company over a period of time. The aim of the company is to hold these companies for a reasonable period after listing in order to generate maximum returns. This fund does not invest in weak businesses, which get impacted by changes in the market. Fund managers select fundamentally strong companies that will offer higher returns over a period of time.  

Features:  

Access: The fund will provide access to the upcoming as well as recently-listed IPOs with limited money in order to generate maximum returns.  

Selection: It provides the right selection of IPOs as all the IPOs are not valuable.  This fund selects the best IPOs and then invests in the same. Investors get professionally analysed IPOs in their portfolios.  

Post-listing gains: You get to invest in IPOs with the potential to generate post-listing gains. IPOs generate optimum returns in 12 to 18 months after listing.

Scheme details: 

Minimum investment amount- Rs 5,000 and in multiples of Re 1, thereafter.  

Asset under management (AUM)- Rs 596 crore as of July 31, 2021. 

Benchmark- India Recent 100 IPO Index 

Fund Managers: Bharat Lahoti & Bhavesh Jain.