The NFO will be available for subscription between 15 November and 26 November. The fund will be managed by Bhavesh Jain, Edelweiss AMC said.
Edelweiss AMC said the index fund will provide equal exposure to large and midcap stocks in one portfolio and ensure a balance between growth (mid-cap) and stability (large-cap).
“Edelweiss Large and Midcap Index Fund is a perfect blend of 100 large cap stocks, represented by established companies in the Nifty 100 index and 150 midcap stocks, represented by emerging and high growth companies in the Nifty midcap 150 index,” said Edelweiss AMC.
Edelweiss AMC further said that the investment objective of this scheme is to provide returns that closely correspond to the total returns of the Nifty Large Midcap 250 index, subject to tracking errors.
“The equal weight to large caps and mid caps reduces skewness to any one market cap segment and provides meaningful exposure to promising midcap stocks. This is the first index fund to be launched on Nifty LargeMidcap 250 index,” Edelweiss said.
Radhika Gupta, MD and CEO, Edelweiss Asset Management Limited pointed out that index funds are gaining popularity due to the simplicity of the product. “It is uncomplicated as it is easy to track and don’t need frequent reviews,” she said.
“This product is based on very unique Nifty LargeMidcap 250 index which balances its exposure to large caps and mid caps in one portfolio. Complementing active funds in one’s portfolio, the fund is an apt solution for do-it-yourself (DIY) and first-time investors for their core investment allocation. This fund is likely to create enduring value in the long run for investors,” said Gupta.
