The Absolute Returns Equity Fund is the fourth equity fund to be put up for investments in quick succession by Edelweiss Mutual Fund. Clearly, the fund house thinks the equity story is alive and kicking.
The fund seeks to allocate a significant part of its assets in arbitrage and low-risk trades to provide positive returns regardless of the market movements and with low volatility. More than 65 per cent of its assets will be invested in equity and equity related instruments while the fund will be able to keep up to 35 per cent of its assets in cash and fixed income instruments.
The fund has been conservatively benchmarked against CRISIL MIP Blended Index which is representative of the MIP funds’ universe in India.
Tarbir Shahpuri is the designated fund manager. He is a L.L.B. and has over 5 years of experience. His previous assignment was with Edelweiss Securities Ltd. as a Manager where he was part of the Principle Strategy Group.
Edelweiss Mutual Fund was established in April 2008 and has 7 open-end schemes – 4 debt funds and 3 equity funds. All its funds are new and are not rated. According to its average assets under management for the month of July, it is the second-smallest fund house in India.
Type: Open-End Diversified Equity Fund
NFO Opens: August 03, 2009
NFO Closes: August 04, 2009
Plan / Options: Growth and Dividend (reinvestment, payout and sweep) options.
Minimum Application Amount: Rs 5,000/-
SIP Investment: Available on weekly (Rs 500 x 12), fortnightly (Rs 1,000 x 6), monthly (Rs 1,000 x 6), quarterly (Rs 1,000 x 4) and half-yearly (Rs 1,000 x 4) basis.
Minimum Additional Application / Redemption: Rs 1,000/-
Benchmark: CRISIL MIP Blended Index
Load Structure (During NFO):
Entry Load: Nil
Exit Load: 1 per cent for redemptions within 180 days; 0.25 per cent for redemptions after 180 days but within 365 days.
Annual Recurring Expense (maximum): 2.50 per cent (including Investment Management fee of 1.25 per cent).
Triggers: Options of time-based and event-based (appreciation, index levels) triggers. Expiry Day trigger is also available where the exit load payable will get reduced or waived off.