VR Logo

New Kid On The Block

Edelweiss Mutual Fund has entered the Indian mutual fund market with a proposed liquid fund

There’s a new member in the Indian mutual fund family – Edelweiss Mutual Fund. The AMC has filed an offer document with market regulator SEBI to launch its first scheme – Edelweiss Liquid Fund.

A liquid company is the least risky fund type and Edelweiss’ decision to get started with it makes sense. A liquid fund is nevertheless an essential part of a fund company’s bouquet. A liquid fund is a short-term investment and is usually almost fully invested in money market instruments. On an average, half of a liquid fund’s portfolio is invested in debt instruments, which include securitised debts. Liquid funds don’t charge any entry or exit load.

Edelweiss Liquid Fund’s benchmark is the CRISIL Liquid Fund Index. The proposed scheme will have three plans – Retail, Institutional and Super Institutional, with varying minimum investment and recurring expenses.

Edelweiss Asset Management Company has plans to launch a full range of fixed income funds, followed by equity funds over the next one year.

Edelweiss Mutual Fund is setup by Edelweiss Capital, an Indian financial services company in the business of investment banking, institutional and private client broking, wealth management, insurance broking and wholesale financing. The company went public in November 2007 at an issue price of Rs 825 and it currently trades at Rs 673, while its peak price was Rs 1795 soon after its listing.