Edelweiss AMC Converts Its IPO-focused Maiden Opportunities Fund To open-ended Fund
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Edelweiss Asset Management Funds today announced that it will be converting its Edelweiss Maiden Opportunities Fund (EMOF)- Series 1, a close ended fund that focuses on recently listed IPOs with AUM of INR 522 crore into an open-ended fund. The fund will be renamed as Edelweiss Recently Listed IPO Fund. The said conversion will be effective from June 29, 2021.
EMOF's existing unitholders will have an option to exit at the prevailing NAV, without exit load, from May 28, 2021 to June 28, 2021. Investors who wish to stay invested will automatically get converted to the open-ended scheme.
Explaining the reasoning behind the conversion, Radhika Gupta, managing director and chief executive officer of Edelweiss Asset Management Ltd. said, “India is currently witnessing its busiest pipeline of IPOs which is expected to remain buoyant. Edelweiss’s unique expertise in IPOs is reflected in the strong track record of EMOF in the last 3 years. We believe converting this fund into an open-ended one will give a wider base of investors access to this fund thereby democratizing the IPO opportunities for these investors. It is pertinent to note that an IPO opportunity is not just about listing gains but also about an earnings momentum that bodes well for the right selection of IPOs and Edelweiss Mutual Fund will bring that opportunity to the investor.”
EMOF was launched in February 2018 and it provided access and right selection of IPOs to capture listing and post listing gains and has returned 14.3 per cent vs. 11.2% Nifty 500 TRI (benchmark). The fund has been investing in new-age businesses across multiple sectors that went public through IPO in recent years.
Edelweiss Recently Listed IPO Opportunities Fund’s subscription will open from June 29, 2021 and will invest in high-quality IPO stocks through its 3-step strategy of selecting the right post-IPO stocks for investment, providing access to these companies through the fund and taking advantage of post-listing gains by continuing to invest in the right selection of stocks.