Edelweiss MF limits subscription for its recently listed IPO fund

The fund is an open-ended equity scheme and invests in recently listed companies or upcoming Initial Public Offer (IPO).

The fund house has restricted inflows into the scheme by way of outright new/additional purchases 1 lakh per day per PAN with effect from February 1.

In case of Systematic Investment Plan (SIP), the limit of 1 lakh per month is applicable. The limits also apply to Switch-in, Systematic Transfer Scheme (STP) and other features/special products offered.

The existing SIP/STP mandate received before 31st January 2022 will continue irrespective of the amount.

“Edelweiss recently listed IPO fund has grown exponentially and has reached a size where we feel it is prudent to limit inflows. The limit will allow us to review the liquidity profile of the portfolio and the pipeline of upcoming opportunities,” the fund house said.

The scheme was launched in February 2018 as a closed-ended fund, known as Edelweiss Maiden Opportunities Fund – Series 1, and last year for new investors to enter and participate in the IPO market. In June it was converted to an open-ended fund, which saw the listing of new age businesses. and move on.

The fund has been very selective while investing in IPOs and has avoided some of the over-listed and poorly listed businesses in the recent past. “This has helped the fund generate strong 20.93% CAGR returns since its inception,” according to a statement.