Edelweiss Mutual Fund has decided to cancel the subscription limit in Edelweiss Recently Listed IPO Fund, which invests in capital markets through an initial public offering in recently listed companies or companies.
From February 2022, the fund house had limited fresh inflows under the scheme by way of lump sum/additional purchases 1 lakh per day per PAN. In case of a Systematic Investment Plan (SIP), the limit of 1 lakh per month was applicable. Switch-in and Systematic Transfer Plan (STP) were also covered under this limit. The SIP/STP limit was only for the mandates obtained before 31st January, 2022.
With the removal of the subscription limit, with effect from April 1, 2022, there is no limit on investment in the fund through SIP or lump sum amount.
According to the fund house, “Equity markets have improved and notably, some of the quality businesses in the recently listed IPO universe have seen a meaningful recovery and are now available at attractive valuations. The liquidity profile of the portfolio is also now smooth. Hence, we have decided to remove the subscription limit which will allow investors to take advantage of this improvement and hold positions in the fund for a longer period.”
According to AMC, the fund has been very selective while investing in IPOs and has avoided some of the more and worse businesses that have been listed in the recent past. As per the fund house, “This has helped the fund generate strong 28.84% CAGR returns over the last 3 years.”
The scheme was launched in February 2018 as Close-Ended Fund (earlier known as Edelweiss Maiden Opportunities Fund – Series 1) and later for new investors to enter and participate in the IPO market. Converted to an open-ended fund in June 2021. Listing and development of new age businesses.
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