Edelweiss Consumption Fund NFO opens for subscription. 10 things to know

Edelweiss Mutual Fund has launched the Edelweiss Consumption Fund, an open-ended equity scheme following the consumption theme.

The new fund offer (NFO) is open for subscription and will close on February 14. The scheme will re-open on or before March 3.

The scheme will be managed by Dhruv Bhatia, Trideep Bhattacharya, and Amit Vora and will be benchmarked against the NIFTY India Consumption TRI.

The minimum investment amount is Rs 100, and in multiples of Re 1 thereafter. The minimum additional purchase amount is Rs 100, and in multiples of Re 1 thereafter. There will be no minimum redemption criterion.

An exit load of 1% of the applicable NAV will apply if the units are redeemed/switched out on or before 90 days from the date of allotment. If the units are redeemed/switched out after 90 days from the date of allotment, the exit load will be nil.

The stock selection approach at the Edelweiss Consumption Fund is agnostic in its investment style, focusing on businesses that can be classified as quality leaders, growth champions, and value picks.

"Ranked among the top two consumer markets worldwide, India’s consumption story is poised for exponential growth. Driven by rising disposable incomes, urbanization, digitalization, easy credit, and a youthful demographic dividend, consumer businesses are set to thrive. The Edelweiss Consumption Fund aims to capitalize on this multi-decade opportunity. The launch is also timely, as stock prices have corrected meaningfully, presenting a good entry point for long-term investors," said Radhika Gupta, MD & CEO, Edelweiss Mutual Fund.

The scheme will allocate: 80-100% in equity and equity-related instruments selected on the basis of consumption and consumption-related sectors or allied sectors.
- 0-20% in other equity and equity-related instruments.
- 0-20% in debt and money market instruments.
- 0-10% in units issued by REITs and InvITs.

The maximum total expense ratio (TER) permissible under Regulation 52 (6) (c) is up to 2.25%.

This product is suitable for investors seeking long-term capital appreciation and wanting to invest in equity and equity-related instruments with a focus on companies engaged in consumption and consumption-related sectors or allied sectors.