Edelweiss Asset Management has rolled out a new fund which focuses on equity schemes that aims at building a curated portfolio of 25-30 attractive businesses dispersed across the three main investing opportunities of brands, market share gainers, and innovators.
Called ‘Edelweiss Focused Equity Fund’, the fund is both market-cap and sector-agnostic, thus allowing investors to capitalise on a broader range of opportunities.
The new fund offer (NFO) opened for subscriptions on July 12 and will accept subscriptions till July 25, 2022. It will offer both direct and regular plans.
According to the fund house, the fund’s strategy of building a concentrated portfolio of strong stocks tied to these three investing ideas has the potential to help investors capture both current and emerging opportunities, while generating reasonable long-term returns.
From an investment standpoint, the fund seeks to invest in established as well as emerging brands and/or companies with significant market share, or those having the potential to increase market share, as well as in innovators and disruptors.
The following are the key highlights of the fund:
It is a concentrated equity fund that invests in three timeless investment opportunities: brands, market share gainers, and innovators.
A multi-cap portfolio strategy allows it to capitalise on opportunities in the large-, mid-, and small-cap space.
The fund is being launched now after the markets have corrected significantly, and valuations have become reasonably appealing.
Radhika Gupta, managing director and CEO, Edelweiss Asset Management, said: “India is set for one of the best periods of business growth and transformation driven by several factors, including compelling demographics, enabling regulation, strong manufacturing push, and accelerated digitisation. We believe that some key opportunities that are likely to dominate future growth will be tethered to investment opportunities, such as brands, market share gainers, innovators, and disruptors. To optimally capitalise upon these, we are launching the Edelweiss Focused Equity fund that will take concentrated exposure to companies within these three investing opportunities.”
She added: “Last year, we saw both markets and valuations stretching, and took a conscious decision to avoid launching any new active equity funds. However, we believe that the current market landscape, post a significant correction, is ripe for such an offering and have thus chosen to launch this NFO.”
Trideep Bhattacharya, CIO-equities, said: “The Indian economy is poised to grow at a strong clip, as a host of factors, such as rising household income, supportive government policies, increasing consumption, and thrust on manufacturing and infrastructure are giving rise to compelling business and investment opportunities. Keeping this in mind, we are launching the Edelweiss Focused Equity fund, which is designed to add unique value to investor portfolios through curated exposure to select investment opportunities, i.e., brands, market share gainers, and innovators and disruptors.