Edelweiss Low Duration Fund Files Draft with SEBI

Edelweiss Mutual Fund has filed a draft with the Securities and Exchange Board of India (SEBI) for its Edelweiss Low Duration Fund, an open-ended debt scheme. The fund will invest in debt and money market instruments, maintaining a Macaulay duration between 6 to 12 months. The fund will be open for subscription for a maximum of 15 days during the NFO period.

It carries a relatively high interest rate risk and moderate credit risk, classified under the Potential Risk Class Matrix (B-III), as per the filing.

Allocation and Strategy

The fund’s asset allocation ranges from 0% to 100% in debt and money market instruments. It will primarily focus on low-duration securities to provide liquidity while aiming for short-term income. 

The scheme will follow the CRISIL Low Duration Debt A-I Index as its benchmark.

Suitability and Risk

The scheme is categorized as low to moderate risk, based on its risk classification. It is positioned for investors seeking short-term income generation with exposure to debt and money market instruments. The Risk-o-Meter places the benchmark’s risk at a similar level.

Fund Structure and Liquidity

The minimum investment amount during the New Fund Offer (NFO) is ₹1,000 per unit. The fund will be available under two plans:

• Regular Plan (via distributors)
• Direct Plan (for direct investments)

Units can be purchased, switched, or redeemed daily. The fund aims to process redemptions within three working days.

Expense Ratio and Exit Load

The fund has no exit load. The total expense ratio (TER) is set at up to 2% of the daily net assets, covering fund management, administrative costs, and distribution expenses.

The Edelweiss Asset Management Limited (AMC) will manage the fund. The AMC has filed the draft Scheme Information Document (SID) with SEBI, along with a Due Diligence Certificate confirming regulatory compliance. 

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.