Edelweiss Mutual Funds, managed by Edelweiss Asset Management Limited, launched a new fund under the large-cap equity category. The new scheme named Edelweiss Nifty Alpha Low Volatility 30 Index Fund subscription started on April 26 and will end on May 10.

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This is an open-ended scheme. Investors can start SIP with Rs 100 under this scheme, and investors can redeem the amout anytime. According to the asset management company, this scheme can help you in long term capital growth.

Start SIP with Rs 100

Edelweiss Nifty Alpha Low Volatility 30 Index Fund allows you to start an SIP with just Rs 100 and after that, you can invest in multiples of Rs 1.

The asset management company says that this scheme will invest 95-100 per cent in equity and equity-related securities representing the benchmark index. In this scheme, 30 shares have been selected from the pool of the top 150 listed shares on the NSE. In the last 10 years, the index has outperformed Nifty 100 TRI by more than 5 per cent.

Who should choose this fund?

Investors aiming for long-term capital growth and prefer a passive approach to equity and equity-related investments that reflect the Nifty Alpha Low Volatility 30 Index might find this fund appealing. The fund holds a "very high" risk rating on its riskometer.

Risk factors to consider

Passive investments account for at least 95 per cent of the fund's assets, with a strong correlation to the equities in its benchmark index. "This passive strategy may expose the fund to market downturns linked to the securities in the underlying index," warns brokerage company Angel One.