NFO Alert: Edelweiss Mutual Fund launches Edelweiss Business Cycle Fund. All you need to know

Edelweiss Mutual Fund has announced the launch of Edelweiss Business Cycle Fund, an open-ended equity scheme aligned with a business cycle-based investment theme.

The scheme will open for public offer on 9 July 2024 and close on 23 July 2024. The scheme will reopen on 6 August 2024 for continued sales and buybacks.

What type of mutual fund scheme is this?

It is an open-ended equity scheme aligned with a cyclical investment theme.

• Long-term asset value improvement
• Primarily cyclical investments in stocks and equity-related products

What is your main objective for investing in this fund?

The Plan's investment objective is to generate long-term capital appreciation by making cyclical investments through allocations among sectors and securities at various stages of the economic business cycle, although there can be no assurance that the Plan's investment objective will be achieved.

Commenting on the launch, Radhika Gupta, MD & CEO said, “We are delighted to be launching our first ever 5G mobile app. Edelweiss Mutual Fund “Edelweiss Business Cycle Fund offers investors a convenient and unique solution by undertaking dynamic sector rotation. The strategy effectively addresses the common challenge of timing sector entry and exit, which investors often struggle with. Momentum has been India's best performing driver for many years and in combination with other fundamental factors has proven highly effective in generating long-term alpha. Investing across sectors and market caps, the fund offers a robust solution with core allocation with a long-term perspective.”

How can one invest in this scheme?

Investors can invest in the scheme with a minimum investment amount.₹1000/- per plan/option, in increments of 1 rupee. There is no upper limit on investment.

Under normal circumstances, the plan's asset allocation would be as follows:

Are there any similar mutual funds available in the market?

To date, many asset management companies (AMCs) have launched such cyclical funds, allowing interested investors to enjoy returns equivalent to the total return of the securities included in this particular index, which include:

How will the scheme benchmark performance?

The performance of the scheme will be assessed against the Nifty 500 TRI benchmark, which tracks the broader Indian equity market. As the scheme's portfolio is market capitalisation agnostic and diversified both in terms of sectors and number of shares, the benchmark is suitable for comparing the performance of the scheme. The AMC/Trustee reserves the right to change the benchmark for assessing the performance of the scheme from time to time in accordance with SEBI regulations and other prevailing guidelines, if any.

Does the scheme have an entry or exit load?

This scheme has no 'Entry Load', hence investors do not have to pay anything to deposit their profits in this scheme.The 'Exit Load' is also calculated as follows:

• If units are redeemed or exchanged within 90 days from the allotment date – 1% of the applicable NAV.
• If units are redeemed/converted after 90 days from the date of allotment – ​​None.

Who will manage this plan?

The three designated fund managers of the scheme are Bhavesh Jain, Bharat Lahoti and Amit Vohra.

Does this fund have any inherent risks?

The scheme carries “very high risks” in accordance with the details set out in the scheme information document and is suitable for investors who are willing to understand that their principal will only be at very high risk. However, investors should consult their financial advisor if they are in any doubt as to whether this product is suitable for them.