Edelweiss Mutual Fund, industry’s youngest, has unveiled its third equity fund, called Edelweiss Nifty Enhancer Fund. This is the second equity fund coming out of the fund house within a gap of just one month, after the launch of Edelweiss Diversified Growth Equity Fund.
The scheme will be investing in a diversified portfolio of stocks in order to beat the returns of its benchmark index, S&P CNX Nifty. Selection of stocks may not necessarily be within the 50 stocks underlying the benchmark index. The scheme can invest up to 35 per cent of its assets in fixed income instruments, cash and cash equivalents.
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The designated fund manager for the scheme is Gaurav Khandelwal. In his 5 years of experience, he has worked with Edelweiss Securities Ltd as a part of the Principle Strategies Group where he was managing Options and Arbitrage trading desk. He has also co-managed the Special Situations trading desk.
Edelweiss Mutual Fund, is not just the youngest fund house, it is also the smallest in terms of assets under management (AUM). As of May 31, 2009, it controlled Rs 21 crore worth of assets, of which Rs 5 crore were in its 2 equity funds.
Type: Open-End Equity Fund
NFO Opens: June 08, 2009
NFO Closes: June 10, 2009
Plan/Options: Growth and Dividend (Payout, Reinvestment and Sweep).
Minimum Application Amount: Rs 5,000
Minimum SIP Investment: Rs 500 per month -- weekly systematic investment plan (SIP). Options of fortnightly, monthly, quarterly and half-yearly SIP is also available.
Trigger Facility: The fund offers trigger facilities based on investment value, NAV-based appreciation, index levels and date-based triggers.
Benchmark: S&P CNX Nifty
Entry Load: NIL
Exit Load: 1 per cent, if units are redeemed within 180 days and 0.25 per cent if units are redeemed after 180 days, but within 1 year. Under the Expiry Date trigger, which is a date-based trigger, exit load of 0.25 per cent will be applicable for redemptions within 180 days.
Annual Recurring Expense (maximum): 2.50 per cent (including Investment Management fee of 1.25 per cent).