The Edelweiss Mutual Fund has decided to lift the subscription restriction on the Edelweiss Recent Listed IPO Fund, which invests in recently listed companies or companies entering the capital markets via an IPO.
Since February 2022, the fund house had limited new inflows through lump sums/purchases as part of the program €1 lakh per day per PAN. In the case of a systematic investment plan (SIP), the limit is from €1 lakh was applicable per month. Switch-ins and systematic transfer plans (STPs) have also been captured by the border. The SIP/STP limits only applied to mandates received before January 31, 2022.
With the lifting of the subscription limit, from April 1, 2022, there will be no cap on investments in the Fund, either through SIP or lump sums.
According to the fund house, “Equity markets have corrected and in particular, some quality companies in the recently listed IPO universe have seen a significant correction and are now available at attractive valuations. The liquidity profile of the portfolio is now also comfortable. Therefore, we have decided to lift the subscription restriction, allowing investors to take advantage of this correction and build long-term positions in the fund.”
According to AMC, the fund has been very selective in investing in IPOs and has averted some overpriced and bad companies that have gone public recently. “This has helped the fund deliver strong CAGR returns of 28.84% over the past 3 years,” the fund house said.
The program launched as a closed-end fund (formerly known as Edelweiss Maiden Opportunities Fund – Series 1) in February 2018 and later converted to an open-end fund in June 2021 to allow new investors to enter and participate in the IPO market. Companies are listed and growing.
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