NFO review: Edelweiss Large & Midcap Index Fund

Edelweiss Mutual Fund has rolled out a new scheme in the passive space. With a blend of large-cap and mid-cap segments in its portfolio, it seeks to balance between the growth potential of mid-cap stocks and stability provided by large-cap stocks. This is an open-end scheme and the NFO will close for subscription on November 26, 2021. About the strategy The new fund would mimic the Nifty LargeMidcap 250 TRI. The said index comprises the entire universe of large- and mid-cap companies reflected by Nifty 100 index and Nifty Midcap 150 index and assigns equal weight to both the market caps. The ongoing offer is the first passive fund based on this index. A blend of these two indices provides greater sectoral diversification as compared to large-cap heavy indices. Nifty 100 index has a tilt towards financial services and IT which together make-up around 50% while in the case of Nifty LargeMidcap 250, the combination of these two sectors along with consumer goods adds up to roughly 49%. Further, as per the AMC, exposure to promising themes like chemicals, consumer and healthcare services is possible with the index under consideration which otherwise find a miss or have negligible exposure in large-cap indices. It must be noted that