Edelweiss Maiden Opportunities Fund – Series 1
Edelweiss Maiden Opportunities Fund – Series 1
Edelweiss Asset Management has launched a new Scheme Edelweiss Maiden Opportunities Fund – Series 1 with an aim to invest in recently listed companies and upcoming listings.
The NFO is a three year Close Ended equity scheme investing across large-cap, mid-cap and small cap stocks.
The Fund is a First of its kind in the industry that intends to give access to the retail investor to invest in Maiden Ideas while investing in recent as well as upcoming listings.
Rationale
New sectors are being introduced offering unique opportunities to play India’s growth story. Companies from 18 different industries (maiden sectors) raised funds this financial year
Recently Listed Maiden Opportunities
- Diagnostics
- Staffing Solutions
- Stock Exchange & Depositories
- Retailing
- Asset Management companies
- Insurance
The IPO market will continue to remain buoyant
- Subsidiary listing by conglomerates to unlock value
- India got massive PE/VC investments during 2010 to 2015 as capital raising through public market was tough. IPOs have become a favoured route for PE/VC investor to exit as there is ample liquidity in the IPO markets.
- PSU’s Divestments
- FIIs have been more active in the primary market than in the secondary market since 2015.
Portfolio Construction
- Upto 80% shall be invested in maiden ideas from recently listed companies – IPOs listed in past 3 years with an issue size > 100 crs.
- Upto 15% will be invested in new IPOs to capture listing and future potential gains
- Upto 5% of the portfolio will be used to buy long dated put options to hedge market risks
- Systematic Rebalancing of the portfolio to ensure profit booking
Details :
NFO Opens : February 2, 2018
NFO Closes : February 16, 2018
Offer of : Units of Rs. 10/- each during the New Fund Offer Period
Minimum Application Amount : Rs. 5000/- (plus in multiple of Rs. 10)
Benchmark : Nifty 200 Index
Maturity Date : 28th June, 2021
Recommendation
The Fund is First of its kind in the Industry and provides a diversification to the investor. The Fund provides a good opportunity for listing & investment gains backed by right selection of IPOs. We recommend Investors to Invest in the scheme.