Edelweiss Small Cap Fund – NFO Review
Indian Financial Market scenario – The stock market is at 10,864 at Nifty as o Jan 25th, generated -2.5% return, the mid-cap index has shown a weaker performance with -13.5 in 1 year tenure. However, twist is Smallcap index has consistently beaten the nifty index since 2003. This is an election year. Investing in top mutual funds with SIP route would prove beneficial in the long run.
Category analysis – As per news and market information, Nifty midcap index has generated over 20.30%, in 2 years category and 54.60% in 3 year period. Investing in midcap and small cap mutual funds through SIP has been a significant wealth generation vehicle over the years.
Midcap-small cap category is ideal for investors with high-risk appetite, believe in Mutual Fund investment through SIP. Best Mutual Fund invest in this fund in this category is through long term SIP. Top mutual funds in this category are SBI Small Cap Fund, DSP Small cap Mid cap and Reliance Small cap fund.
The fund house – Edelweiss Mutual Fund Ltd. is part of Edeweiss group, started about a decade ago, has six actively managed equity funds, four hybrid funds, seven debt funds, three ETFs and five fund of funds. Edelweiss MF Ranks at 21 as per the AUM Data available at AMFI site as on dec 2018. It is a mid-size mutual fund company with portfolio of 11,894 crore (asset under management) as per Dec 2018 data
| Mutual Fund | Edelweiss Mutual Fund |
| Scheme Name | Edelweiss Small Cap Fund |
| Objective of Scheme | The investment objective of the scheme is to generate long term capital appreciation from a portfolio that predominantly invests in equity and equity related securities of small cap companies. However, there is no assurance that the investment objective of the Scheme will be realized and the Scheme does not assure or guarantee any returns. |
| Scheme Type | Open Ended |
| Scheme options | Growth and dividend |
| Scheme Category | Equity Scheme – Small Cap Fund |
| New Fund Launch Date | 18-Jan-2019 |
| New Fund Offer Closure Date | 01-Feb-2019 |
| Indicate Load Seperately | No entry load, exit load – 1.00% <1year< NIL |
| Minimum Subscription Amount | 5000 |
| For more information Please Visit Website Online | www.edelweissmf.com (Buy mutual Fund online) |
INVESTMENT OBJECTIVE The investment objective of the scheme is to generate long term capital appreciation from a portfolio that predominantly invests in equity and equity related securities of small cap companies. However, there is no assurance that the investment objective of the Scheme will be realized and the Scheme does not assure or guarantee any returns.
Asset allocation pattern
Investments Indicative Allocation
Equity related securities of Small Cap companies* 65% to 100% Medium to High
Equity and Equity related securities of other companies 0% to 35% Medium to high
Debt and money market instruments^ 0% to 35% Low
Where will the scheme invest?
Subject to the Regulations, the corpus of the Scheme will mainly be invested in any (but not exclusively) of the following securities:
Investment in Equity securities: The Scheme will invest in Equity and Equity related instruments inclusive of convertible debentures, equity warrants, convertible preference shares, equity derivatives etc.
Derivatives: The Scheme may invest in Derivative Instruments subject to SEBI guidelines. Derivative products are specialized instruments that require investment techniques and risk analysis different from those associated with stocks and bonds. The Scheme may invest in the following Equity Derivative Instruments like: Futures and Options
Foreign Securities
Debt Securities – Government Securities, Commercial papers, certificate of deposits, T-bills, fixed deposits etc.
Also, Investments in the Schemes of Mutual Fund
Fund manager details
| Name and age | Education | Experience |
| Mr. Harshad Patwardhan, 47 years | B.Tech. (IIT), MBA(IIM) and a CFAqualification | Mr. Harshad Patwardhan, is a B.Tech. (IIT), MBA (IIM) and a CFA by qualification. Mr. Patwardhan has an overall work experience of over 23 years in the investment management function and has joined Edelweiss AMC as Chief Investment Officer ‐ Equity and a key personnel. Prior to joining Edelweiss AMC, he was associated with JPMorgan Asset Management India Private Limited since June 2006 as CIO‐ Equities. Prior to that Mr. Patwardhan worked for two years with Deutsche Equities India Private Limited as a senior research Fund Manager: 1. Edelweiss Large & Mid Cap Fund 2. Edelweiss Tax Advantage Fund 3. Edelweiss Multi‐Cap Fund 4. Edelweiss Mid Cap Fund 5. Edelweiss Long Term Equity Fund (Tax Savings) Edelweiss Small Cap Fund 35 analyst and has had extensive experience with several foreign brokerage houses covering a variety of sectors. |
Should You Invest? – This is best mutual fund category for inestors with high risk appetite and for a long term goal, SIP in this mutual fund category can earn investors high return over a 8-10 years period. Investor can have some exposure in this category, the fund manager is well experienced, the mid-cap fund managed by him has generated handsome return over 5 years, he has been in the fund management tea of other 5 mutual fund schemes. Other mutual fund companies like SBI Mutual Fund, DSP Mutual Fund and Reliance mutual fund have Best Mutual Fund to invest in SIP in this category.
