NFO Update : Edelweiss Mutual Fund launches Nifty500 Multicap Momentum Quality 50 Index Fund

Edelweiss Mutual Fund has launched Edelweiss Nifty500 Multicap Momentum Quality 50 Index Fund, an open-ended index scheme replicating Nifty500 Multicap Momentum Quality 50 Index.

The new fund offer or NFO of the scheme is open for subscription and will close on October 25. The scheme will reopen for continuous sale and repurchase on or before November 11.

The investment objective of the scheme is to provide returns before expenses that correspond to the total returns of the Nifty500 Multicap Momentum Quality 50 Index Fund, subject to tracking errors.

The scheme will be benchmarked against Nifty500 Multicap Momentum Quality 50 TRI. The scheme will be managed by Bharat Lahoti and Bhavesh Jain.

An exit load of 0.10% will be applicable, if the units are redeemed/switched out on or before 30 days from the date of allotment. The exit load will be nil if units are redeemed/switched out after 30 days from the date of allotment.

The minimum application amount will be Rs 100 and in multiples of Re 1 thereafter. The maximum total expense ratio (TER) permissible under Regulation 52 (6) (c) is upto 1%.

The scheme will invest 95-100% in equity and equity related securities constituting Nifty500 Multicap Momentum Quality 50 Index and 0-5% in debt and money market instruments.

The scheme will follow a passive investment strategy with investments in stocks in the same proportion as in Nifty500 Multicap Momentum Quality 50 Index. The investment strategy would revolve around reducing the tracking error to the least possible through rebalancing of the portfolio, considering the change in weights of stocks in the index as well as the incremental collections/redemptions from the Scheme

The scheme is suitable for investors who are seeking long-term capital appreciation and want passive investment in equity and equity related securities replicating the composition of Nifty500 Multicap Momentum Quality 50 Index, subject to tracking errors.