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Edelweiss Recently Listed IPO Fund is an open-ended equity scheme following investment theme of investing in recently listed 100 companies or upcoming Initial Public Offer (IPOs). The fund invests in recently listed stocks and has outperformed the the benchmark Nifty this year, led by stellar listings of Zomato, Sona BLW among others.

The mutual fund run by fund house Edelweiss Management Ltd has given around 46% returns this year, according to the firm as reported by Bloomberg, beating gains of 24% for the NSE Nifty 50 Index and 22% by the S&P BSE Sensex Index.

The fund gives an investment option that enables one to invest in public issues that have either recently listed or are going to list. Edelweiss Maiden Opportunities fund-Series 1 (a closed ended scheme) was converted into Edelweiss Recently Listed IPO Fund (a open ended scheme) which has been open for investment (effective from June 29, 2021).

As per the fund details, Edelweiss Recently Listed IPO Fund is for those who want to invest in best upcoming and recently listed IPOs and want a focused exposure to IPOs with minimum investments. 1,00,000 invested in this fund since inception has grown to 1,95,873 at 20.85% CAGR (Compound annual growth rate). This high-risk fund's suitable investment horizon is around 7-10 years, the fund details showed.

“It is very normal in a bull year to have many IPOs," said Radhika Gupta, Edelweiss Mutual Fund’s chief executive officer as quoted by Bloomberg. “We always believe IPO investing is more about being choosy by identifying selective good companies early and assessing their ability to deliver earnings."

 

Source: Bloomberg
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Source: Bloomberg

Online food-delivery firm Zomato and electric-vehicle-components maker Sona BLW Precision Forgings Ltd. are among the 12 debutants in which the fund has invested in 2021, which have helped the fund deliver outperforming returns. 

The Edelweiss Recently Listed IPO Fund didn’t participate in most of this year’s new offers as many didn’t meet the criteria for valuations and business models, Gupta said in a recent interview to Bloomberg. “Our stance is to have a portfolio of 30 to 40 companies, which represent the new economy and we don’t do every IPO," Gupta said. Her firm reported $9.6 billion in assets under management (AUM) as of August, an increase of 74% over the past year.

(With inputs from Bloomberg)

 

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