Edelweiss Mutual Fund has launched Edelweiss Multi Asset Allocation Fund, which is an open-ended scheme investing in Equity, Debt, Gold and Silver. The fund will provide investors with an opportunity to generate fixed income-like returns in a tax-efficient way, the AMC said in a statement.
The new fund offers (NFOs) for Edelweiss Multi Asset Allocation Fund are open for subscription from 5th June 2023 to 19th June 2023.
What’s different?
As per the statement, the fund’s primary focus will be to generate low volatile fixed-income equivalent returns by investing in fixed-income, equity arbitrage, and gold and silver arbitrage. The portfolio construction will prioritize mitigating volatility, positioning itself as an alternative investment option when compared to other fixed-income products available in the market.
“We are excited to unveil the Edelweiss Multi Asset Allocation Fund, a distinctive strategy with a purpose to provide investors a product that is fixed income alternative with enhanced tax efficiency. As part of our ongoing commitment to introducing innovative products that cater to investors’ diverse investment needs, this fund is a timely solution in the multi-asset category that aims to provide low volatile fixed income like returns,” said Radhika Gupta, MD & CEO, Edelweiss Asset Management.
Asset allocation
The scheme’s indicative asset allocation will be 10– 80 per cent towards equity and equity-related instruments, 10–80 per cent towards debt and money market instruments, 10-30 per cent towards commodity ETFs, Exchange Traded Commodity Derivatives (ETCDs) and 0-10 per cent towards units issued by REITs and InvITs.
The portfolio construction strategy includes a 35- 40% allocation to Equity Arbitrage, comprising Equity Cash Futures with no open equity exposure. Additionally, there is a 10-15% allocation to Gold and Silver Arbitrage, employing a 100% hedged strategy for Gold & Silver and no open exposure to any other commodity. The remaining 45-55% is allocated to fixed-income instruments with a 1–3-year Macaulay duration, including G-Sec, SDL, and AAA-rated corporate bonds, the AMC said.
Fund manager
The scheme will be managed by Bhavesh Jain and Bharat Lahoti (Equity), Dhawal Dalal (Debt), Amit Vora (Overseas), Ashish Sood (Commodities).
Edelweiss Multi Asset Allocation Fund aims to become a fixed income alternative with better tax efficiency.
