BackEdelweiss MF revokes subscription limit on Recently Listed IPO Fund
With the removal of the limit on subscription, there is no cap on the investments into the fund either through SIP or lump sum amount, with effect from 1 April, 2022
PremiumEdelweiss Mutual Fund has decided to revoke the limit on subscriptions in Edelweiss Recently Listed IPO Fund, which invests in recently listed companies or comapnies foraying into capital markets via initial public offering.
The fund house since February 2022 had limited he fresh inflows by way of lumpsum/additional purchases under the scheme to ₹1 lakh per day per PAN. In the case of a systematic investment plan (SIP), the limit of ₹1 lakh was applicable per month. Switch-ins and systematic transfer plans (STPs) were also covered under the limit. The SIP/STP limits were only for the mandates received before 31 January, 2022.
With the removal of the limit on subscription, there is no cap on the investments into the fund either through SIP or lump sum amount, with effect from 1 April, 2022.
According to the fund house, “equity markets have corrected and specifically, some quality businesses in the recently listed IPO universe have seen a meaningful correction and are now available at attractive valuations. The liquidity profile of the portfolio is also comfortable now. Hence, we have decided to remove the limit on subscriptions which will allow investors to take benefit of this correction and build positions in the fund for the long-term."
As per the AMC, the fund has been very selective while investing in IPOs and has averted some overpriced and bad businesses that got listed in recent times. “This has helped the fund in generating strong 28.84% CAGR returns over last 3 years," according to the fund house.
The scheme was launched in February 2018 as a closed-ended fund (earlier known as Edelweiss Maiden Opportunities Fund – Series 1) and later converted into an open-ended fund in June 2021 for new investors to enter and participate in the IPO market which saw new-age businesses list and grow.
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