Edelweiss Mutual Fund Launches New Nifty500 Multicap Momentum Quality 50 Index Fund for Growth-Focused Investors
Edelweiss Mutual Fund has recently introduced its latest offering, the Edelweiss Nifty500 Multicap Momentum Quality 50 Index Fund. This open-ended index fund is designed to mirror the Nifty500 Multicap Momentum Quality 50 Index, providing investors with an opportunity to pursue capital growth through a passive, diversified investment in high-momentum, quality stocks.
The new fund offer (NFO) is currently available for subscription and will remain open until October 25 i.e. Today, with the fund set to reopen for ongoing transactions for both sales and repurchases on or before November 11. Aiming to deliver returns that align with the Nifty500 Multicap Momentum Quality 50 Index before expenses, the fund follows a passive strategy, minimizing the gap between the fund’s performance and that of its benchmark.
The scheme is benchmarked against the Nifty500 Multicap Momentum Quality 50 Total Return Index (TRI) and is managed by a team of experienced professionals. An exit load of 0.10% applies for redemptions or switches made within 30 days of unit allotment, but after this period, there will be no exit load. Investors can start with a minimum investment of Rs.100, and add in increments of Re 1.
This fund maintains a maximum total expense ratio (TER) of up to 1%, in accordance with Regulation 52(6)(c), which governs TER limits for index funds. Allocation within the scheme will predominantly be toward equities, with 95-100% invested in stocks that comprise the Nifty500 Multicap Momentum Quality 50 Index, while up to 5% may be held in debt and money market instruments for liquidity.
By replicating the Nifty500 Multicap Momentum Quality 50 Index, the fund’s approach centres on tracking the index’s performance as closely as possible. Rebalancing is regularly conducted to manage any deviations resulting from changes in stock weights or fluctuations in subscriptions and redemptions.
This fund caters to investors seeking long-term capital growth through exposure to a diversified equity portfolio. Designed for those interested in a passive investment strategy, it offers a straightforward route to benefiting from quality stocks with strong momentum potential, while keeping costs low.
