Edelweiss MF restricts inflows into its 'Recently Listed IPO' scheme

Investments capped at Rs 1 lakh per PAN, effective Feb 1

Edelweiss Mutual Fund (MF) has announced that it will limit the subscription by way of lump sum and systematic investment plans (SIPs) in Edelweiss Recently Listed IPO Fund.

“Thanks to its unique investment strategy and strong performance since its launch, Edelweiss Recently Listed IPO Fund has quickly grown and has reached a size where we think it is prudent to limit inflows. The limit will allow us to review the liquidity profile of the portfolio and pipeline of upcoming opportunities,” said the fund house in a note.

The fund house has decided to limit the subscriptions by way of lumpsum fresh, additional purchases, switch-ins, SIPs, Systematic Transfer Plan and other facilities offered under the fund to Rs 1 lakh per day per PAN with effect from February 01, 2022 until further notice.

This means that investors can continue to have a SIP and invest lumpsum of less than Rs 1 lakh in the scheme.

Launched in Feb 2018, Edelweiss Recently Listed IPO Fund invests in recently listed companies or companies foraying to enter the capital markets via Initial Public Offering (IPO).

The fund invests 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.

The fund has been very selective while investing in IPOs and has averted some overpriced and bad businesses that got listed in recent times. Fund has generated returns of 20.93 per cent CAGR returns since its inception.

The scheme was launched as a closed ended fund (earlier known as Edelweiss Maiden Opportunities Fund – Series 1) and was converted into an open ended fund last year for new investors to enter and participate in the IPO market which saw new age businesses list and grow.