Edelweiss Mutual Fund restricts inflows in IPO Fund

Edelweiss Mutual Fund has decided to limit inflows in its Recently Listed IPO Fund. The decision comes after the scheme recently amassed assets with Rs 1,000 crore. The fund house said the move is in line with the investment strategy and will not impact retail SIP and STP investors. The limit on subscription is mainly on lumpsum investment or SIPs of above Rs 1 lakh per day.

“We have decided to limit the subscriptions by way of lumpsum fresh/additional purchases, switch-ins, Systematic Investment Plan, Systematic Transfer Plan and other facilities/special products offered under the fund to Rs 1 lakh per day per PAN with effect from Feb 01, 2022 until further notice. Please note, the existing SIP/STP mandates received before 31st Jan 2022 will continue to exist, irrespective of the amount,” the fund house said,

"We had actually said that when we reach an AUM of around Rs 1,000 crore, we will stop flows in the scheme. It is largely to maintain portfolio liquidity and also looking at IPO pipeline in coming months. If there are some large ones coming and liquidity improves, we may reopen it for lumpsum. Till then Rs 1 lakh per day is the limit to encourage SIP and STP in the scheme," said Niranjan Avasthi, Head - Product, Marketing and Digital Business, Edelweiss Mutual Fund.


Launched in Feb 2018, Edelweiss Recently Listed IPO Fund invests in recently listed companies or companies foraying to enter the capital markets via Initial Public Offering. The scheme was launched as a closed ended fund (earlier known as Edelweiss Maiden Opportunities Fund – Series 1) and was converted into an open ended fund for new investors to enter and participate in IPO market.

The scheme has offered a return of 22.12% since inception and manages an AUM of Rs 1,091 crore.