NFO Alert: Edelweiss Mutual Fund launches BSE Capital Markets & Insurance ETF

Edelweiss Mutual Fund has launched Edelweiss BSE Capital Markets & Insurance ETF, an open-ended exchange traded scheme replicating/tracking BSE Capital Markets & Insurance Total Return Index.

The new fund offer or NFO of the scheme is open for subscription and will close on December 24. The scheme will reopen for continuous sale and repurchase on January 8.

Also Read | Mutual fund SIP inflows cross Rs 25,000 crore mark for second straight month in November


This innovative, open-ended exchange-traded scheme is designed to replicate and track the BSE Capital Markets & Insurance Total Return Index. The ETF, the first of its kind in India, aims to capitalise on the mega trend of investing and wealth creation combined with the insurance sector, according to a press release by the fund house.

The investment objective of the scheme is to generate returns that are in line with the performance of the BSE Capital Markets & Insurance Total Return Index, subject to tracking errors.

The scheme will be benchmarked against BSE Capital Markets & Insurance TRI and will be managed by Bhavesh Jain. The minimum investment amount is Rs 5,000 and in multiples of Re 1 thereafter.

“At Edelweiss, we believe in identifying and capitalising on mega trends through innovative product offerings. With this vision, we are excited to launch an innovative ETF that captures the mega trend of the financialisation of savings by Indians. This ETF is the first in a series of thematic ETFs we plan to roll out in the coming months, each designed to capture key mega trends driving India’s growth story as it moves towards becoming Viksit Bharat by 2047,” said Radhika Gupta, MD & CEO, Edelweiss Mutual Fund.

“The ETF market is at an inflection point, and we aim to be at the forefront of this evolution, offering investors products that are not only innovative but also meaningful for wealth creation and diversification,” she added.

Also Read | Year-ender 2024: Equity mutual funds offer up to 57% return on lumpsum investments

The fund’s diversified portfolio is divided between capital markets (47.21%) & insurance (52.79%). The portfolio comprises capital market firms, life insurance, general insurance, & distributors of financial products. Notable constituents include HDFC AMC, Angel One, Multi Commodity Exchange Of India (MCX), Anand Rathi Wealth, SBI Life Insurance, ICICI Lombard, and ICICI Securities, said the release

All the stocks constituting the ETF will be a part of the BSE 500 Index. The maximum constituents are capped at 30. The eligible stocks will be ranked basis their average 6-Month daily float-adjusted market capitalisation figures. The ETF will be reconstituted semi-annually in June & December & rebalanced quarterly for optimal performance, the release further mentioned.

The scheme is suitable for investors who are seeking long-term capital growth and want returns that are in line with the performance of the BSE Capital Markets & Insurance Total Return Index, subject to tracking errors.