The new fund will be re-named as Edelweiss Recently Listed IPO Fund and the conversion will be effective from June 29, 2021.
Edelweiss Asset Management Limited is converting its Edelweiss Maiden Opportunities Fund – Series 1 (EMOF), a close ended fund that focuses on recently listed IPOs with AUM of INR 522 crore (as on April 2021) into an open-ended fund. This will be India’s first open-ended fund focused on investing in 100 recently listed IPOs and will be re-named as Edelweiss Recently Listed IPO Fund. This conversion will be effective from June 29, 2021.
EMOF was launched as a close-ended fund in February 2018, with a tenure of 3+ years, which ends in June 2021. The fund provides access and right selection of IPOs to capture listing and post listing gains and has returned 14.3% vs. 11.2% Nifty 500 TRI (benchmark). The fund has been investing in new-age businesses across multiple sectors that went public through IPO in recent years.
Explaining the reasoning behind the conversion, Radhika Gupta, MD & CEO, Edelweiss Asset Management Ltd. said “India is currently witnessing its busiest pipeline of IPOs which is expected to remain buoyant. Edelweiss’s unique expertise in IPOs is reflected in the strong track record of EMOF in the last 3 years. We believe converting this fund into an open-ended one will give a wider base of investors access to this fund thereby democratizing the IPO opportunities for these investors. It is pertinent to note that an IPO opportunity is not just about listing gains but also about an earnings momentum that bodes well for the right selection of IPOs and Edelweiss Mutual Fund will bring that opportunity to the investor.”
Edelweiss Mutual Fund has been at the forefront in designing new solutions for investors that can create resilient value for investors and this has reflected in the various thematic funds right from launching the thematic passive index fund investing in domestic and international healthcare companies to target maturity index funds, Edelweiss AMC has always aimed at adding long-term value to investors’ portfolios.
EMOF’s existing unitholders have an option to exit at the prevailing NAV, without exit load, from May 28, 2021 to June 28, 2021. Investors who wish to stay invested will automatically get converted to the open-ended scheme.
Edelweiss Recently Listed IPO Opportunities Fund will be an open-ended scheme and the subscription will open from 29th June, 2021. The fund will invest in high-quality IPO stocks through its 3-step strategy of selecting the right post-IPO stocks for investment, providing access to these companies through the fund and taking advantage of post-listing gains by continuing to invest in the right selection of stocks.
Performance as on April 30, 2021