Edelweiss MF's IPO-focused scheme to go open-ended amid robust pipeline

The scheme was launched as a closed-end fund in February 2018, with a tenure of over three years ending June 2021

Edelweiss Mutual Fund announced on Thursday that its IPO-focused closed-end equity scheme will be converted into an open-ended fund. Edelweiss Maiden Opportunities Fund–Series 1 (EMOF), which has assets of around Rs 522 crore, will be re-named as Edelweiss Recently Listed IPO Fund and scout for investment opportunities in 100 newly-listed companies.

The move by Edelweiss MF comes at a time when the IPO pipeline for the year has got stronger with 12 companies filing their offer documents with Sebi this month.

EMOF was launched as a closed-end fund in February 2018, with a tenure of over three years, which ends in June 2021.

Radhika Gupta, MD & CEO, Edelweiss MF said, “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.”

The fund provides access and right selection of IPOs to capture listing and post listing gains and has returned 14.3 per cent versus 11.2 per cent Nifty 500 TRI (benchmark). The fund has been investing in new-age businesses across multiple sectors that went public through IPO in recent years.

EMOF's existing unitholders have an option to exit at the prevailing NAV, without exit load, from May 28, 2021 to June 28, 2021. While existing investors in the fund will not have to pay any exit load any time in future when they exit. New investors, who enter once the fund is converted to open ended from June 29, will be charged 2 per cent if they exit before six months.

The fund house said the scheme 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.