Edelweiss Recently Listed IPO Fund is an open-ended equity scheme following the theme of investing in 100 recently listed companies or upcoming Initial Public Offering (IPO). The fund has only invested in recently listed stocks and has outperformed the benchmark Nifty this year, led by stellar listings of Zomato, Sona BLW.
NS mutual fund Fund house run Edelweiss Management Limited has given around 46% returns this year, as reported by the firm bloomberg, up 24% for the NSE Nifty 50 index and 22% for the S&P BSE Sensex index.
The fund gives an investment option that enables one to invest in public issues which have either been listed recently or are going to be listed. Edelweiss Maiden Opportunities Fund-Series 1 (a closed ended scheme) was converted into Edelweiss Recently Listed IPO Fund (an open-ended scheme) which is open for investment (with effect from June 29, 2021).
Radhika Gupta, Chief Executive Officer, Edelweiss Mutual Fund, was quoted as saying by Bloomberg, “It is very normal to have multiple IPOs in a high year. We have always believed that investing in IPOs is all about being selective by early identification and assessment of good companies. I have more earning potential.”
Gupta said in a recent interview, Edelweiss recently listed IPO fund did not participate in most of the new offers this year as many did not meet the criteria of valuation and business model. bloomberg. “We have a portfolio of 30-40 companies, which represent the new economy and we don’t do every IPO,” Gupta said. His firm reported a $9.6 billion increase in assets under management (AUM) as of August. 74 percent as compared to the previous year.
As per the fund description, Edelweiss Recently Listed IPO Fund is for those who want to invest in the best upcoming and recently listed IPOs and want a focused exposure to IPO with minimum investment. ₹1,00,000 has been invested in this fund since its inception ₹1,95,873 at 20.85% CAGR (Compound Annual Growth Rate). The suitable investment horizon of this high-risk fund is around 7-10 years, shown in the fund description.
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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, helping the fund deliver better returns. Meanwhile, Indian companies have raised $9.9 billion in 60 IPOs so far, an all-time high, while many more are set to launch their public issues this year.
(with inputs from Bloomberg)
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