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NEW DELHI: Edelweiss Asset Management Ltd has announced that it will convert its Maiden Opportunities Fund – Series 1 (EMOF), a close-ended fund that focuses on recently listed IPOs into an open-ended fund. The fund has assets under management worth Rs522 crore and with the conversion, it will become India’s first open-ended fund focused on investing in 100 recently listed IPOs.

The fund will be re-named as Recently Listed IPO Fund and the conversion will be effective 29 June.

EMOF was launched as a close-ended fund in February 2018, with a tenure of more than three years, which ends in June 2021. The fund provides access and the right selection of IPOs to capture listing and post-listing gains and has returned 14.3% against 11.2% in its benchmark Nifty 500 total return index.

According to the fund house, EMOF's existing unitholders have an option to exit at the prevailing net asset value (NAV) from 28 May to 28 June 28.

While existing investors in the fund will not have to pay any exit load any time in the future when they exit, new investors who enter once the fund is converted to open-ended from 29 June will be charged 2% if they exit before six months.

“India is currently witnessing its busiest pipeline of IPOs, which is expected to remain buoyant. We believe converting this fund into an open-ended one will give a wider base of investors access to this fund thereby democratizing the IPO opportunities for these investors. An IPO opportunity is not just about listing gains but also about an earnings momentum that bodes well for the right selection of IPOs," said Radhika Gupta, MD & CEO, Edelweiss AMC said.

In terms of a sectoral break-up, the fund has the highest allocation to financial at 31%, followed by consumer discretionary at 17%, technology at 15% and pharma at 13%.

While in terms of weightage, mid-cap has the highest allocation at 38%, followed by large-cap at 36%.

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