NFO Alert: Edelweiss Mutual Fund launches Nifty LargeMidcap 250 ETF

Edelweiss Mutual Fund has launched Edelweiss Nifty LargeMidcap 250 ETF. The new fund offer or NFO of the fund is open for subscription and will close on September 2. The fund will reopen for continuous sale and repurchase on or before September 10.

The investment objective of the fund is passive investment in equity and equity related securities replacing the composition of the Nifty LargeMidcap 250 Index, subject to tracking errors.

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The performance of the fund will be benchmarked against Nifty LargeMidcap 250 TRI and will be managed by Bhavesh Jain. The scheme does not offer any Plans/Options for investment.

The minimum investment amount is Rs 5,000 and in multiples of Re 1 thereafter. The minimum amount for additional purchase is Rs 5,000 and in multiples of Re 1 thereafter. Units will be allotted in whole figures and the balance amount will be refunded.

Application for redemption of Edelweiss Nifty LargeMidcap 250 ETF units directly with the Fund in Creation Unit Size at NAV based prices. For large investors, application for redemption of Edelweiss Nifty LargeMidcap 250 ETF units directly with the Fund in creation unit size pursuant to minimum requirement of 25 crore at NAV based prices.

The exit load is nil on the fund. The tracking error is not available as the fund is new in the industry.

The fund will allocate 95-100% in securities covered by Nifty LargeMidcap 250 index and 0-5% in money market instruments, cash and cash equivalent and/or units of liquid scheme. The cumulative gross exposure through equity, debt and derivative positions will not exceed 100% of the net assets of the scheme. However, cash or cash equivalents with residual maturity of less than 91 days may be treated as not creating any exposure.

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The scheme, out of the funds allocated shall invest in securities covered by Nifty LargeMidcap 250 index and shall invest in money market instruments, cash & cash equivalents and/or units of liquid schemes only to the extent necessary to meet the liquidity requirements for honoring repurchase / redemptions / expenses, according to the scheme information document (SID).

The principal invested in the fund will be at “very high” risk according to the riskometer of the fund.

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