This Mutual Fund launches new low-cost, open-ended NFO for bumper returns; investment starts from Rs 5000

Mutual Fund NFO: Edelweiss Asset Management – a Mutual Fund company – has launched a new fund 'Edelweiss CRISIL IBX 50:50 Gilt Plus SDL Short Duration Index Fund, A low-cost fund with higher quality portfolio for short-term investment needs, the company said in a statement.

The NFO (New Fund Offer) has opened for subscription from January 27, 2023 and shall remain open till 10 February 2023. This is an open-ended fund, which means investors can withdraw money whenever they need it from NFO.

Investment starts from Rs 5,000

Investors can start their investment with a minimum amount of Rs 5000 in this new fund offer of Edelweiss Mutual Fund and could be earned bumper returns in the short term.  

What is new fund?

CRISIL IBX 50:50 Gilt Plus SDL is a passive short-duration index fund tracking the performance of the Short Duration Index. The scheme will predominantly invest in Government of India Bonds (IGB) and State Development Loans (SDL) with a tenure of 1-5 years.

Low-cost option

Radhika Gupta, Managing Director and Chief Executive Officer, Edelweiss AMC said, “Edelweiss CRISIL IBX 50:50 Gilt Plus SDL is poised to be a game-changer in the short-duration index fund industry.”

“Many active debt funds are underperforming their benchmarks due to high cost and biased call duration. The fund offered by Edelweiss provides better predictability on asset allocation, credit quality, and duration and is a low-cost option for short-term investments,” Gupta further added.

Who can invest in this scheme

Passive duration management in these funds is consistent and free from any bias. The lower cost will add up in the returns. This cost-effective index fund can be an ideal option for investors looking to include fixed income in their portfolio as a component of their asset allocation strategy.

Edelweiss Mutual Fund is a leader in the passive debt fund category in India with the highest market share managing assets of over Rs. 68,000 crores, as of 31st December 2022. The MF firm is the largest asset manager in debt passives in India with over 48 per cent market share in target maturity funds (TMFs) with a focus on debt passives with over 96 per cent Debt AUM in passives.