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Business News/ Mutual Funds / NFO Alert: Edelweiss Mutual Fund launches Edelweiss Technology Fund; All you need to know
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NFO Alert: Edelweiss Mutual Fund launches Edelweiss Technology Fund; All you need to know

Edelweiss Mutual Fund announced the launch of the Edelweiss Technology Fund. The scheme opened for public subscription on February 14, 2024, and will close on February 28, 2024.

Edelweiss Mutual Fund announced the launch of the Edelweiss Technology Fund as a part of its new fund offers.Premium
Edelweiss Mutual Fund announced the launch of the Edelweiss Technology Fund as a part of its new fund offers.

Edelweiss Mutual Fund announced the launch of the Edelweiss Technology Fund. The scheme opened for public subscription on February 14, 2024, and will close on February 28, 2024. The scheme re-opens for continuous sale and repurchase within five business days from the date of allotment.

What kind of mutual fund scheme is this?

This is an open-ended equity fund scheme investing in technology and technology-related sectors. This product is suitable for investors seeking:

-Long-term capital growth

- Investment in a portfolio of predominantly equity and equity-related securities of technology and technology-related sectors.

Trideep Bhattacharya, President & CIO-Equities, Edelweiss Mutual Fund, shared, “We anticipate a substantial increase in technology penetration across all industries globally over the next decade. Our approach to participate in this trend will be through our Edelweiss Technology Fund, where we aim to take meaningful exposure to global industry leaders spanning various sub-sectors of technology along with Indian IT services and new-age tech companies."

What is the main objective of investing in this fund?

The investment objective of the scheme is to provide long-term capital appreciation by investing predominantly in equity and equity-related securities of technology and technology-related companies. However, there is no assurance that the investment objective of the scheme will be realized and the Scheme does not assure or guarantee any returns.

Commenting on the launch, Radhika Gupta, MD & CEO, Edelweiss Mutual Fund, stated, “In an era where technology is integral to our lives, we're thrilled to unveil our latest fund in the technology space. This offering provides investors an opportunity to tap into dynamic Indian and US-based tech stocks in a unique and tax-efficient manner. Our proven success in running a US Technology Fund of Fund in collaboration with JP Morgan underscores our commitment to providing diverse investment avenues and navigating the ever-evolving tech landscape".

How may one invest in this scheme?

Investors can invest under the scheme with a minimum investment of 100 per plan/option and in multiples of Re 1. There is no upper limit for investment.

Under normal circumstances, the asset allocation of the scheme will be as follows:

Instruments

Indicative allocations (% of total assets)

Risk Profile

Minimum

Maximum

Equity and equity-related instruments of Technology and technology-related companies

80%

100%

Very High

Equity and Equity related instruments of companies other than the above

0%

20%

Very High

Debt and money market instruments

0%

20%

Low to Moderate

Units issued by REITs and InvITs

0%

10%

Moderate to High

Units of Mutual Funds

0%

20%

Low to Very High

Are there similar mutual funds in the market?

To date, many asset management companies (AMCs) have launched such technology-themed funds, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. Some of these include:

Mutual Fund House

Name of the Scheme

10-year returns 

(in %)

Franklin Templeton India Mutual Fund

Franklin India Technology Fund

17.49

SBI Mutual Fund

SBI Technology Opportunities Fund

18.59

ICICI Prudential Mutual Fund

ICICI Prudential Technology Fund

19.82

Quant Mutual Fund

Quant Teck Fund

 

HDFC Mutual Fund

HDFC Technology Fund

-

Source: AMFI (As of February 14, 2024)

How will the scheme benchmark its performance?

The performance of the scheme is measured against the S&P BSE TECk TRI. The AMC/Trustee reserves the right to change the benchmark for evaluation of the performance of the scheme from time to time, subject to SEBI Regulations and other prevailing guidelines if any.

Are there any entry or exit loads to this scheme?

This scheme involves no “Entry Load", which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load" would be calculated as under:

- If the units are redeemed/switched out on or before 90 days from the date of allotment – 1% of the appliable NAV.

- If the units are redeemed/switched out after 90 days from the date of allotment - NIL.

Who will manage this scheme?

Trideep Bhattacharya, Sahil Shah, and Amit Vora are the fund managers of this scheme.

Does the fund contain any inherent risk?

The scheme involves “Very High Risk" as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to very high risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.

 

 

 

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Published: 16 Feb 2024, 09:20 AM IST
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