Edelweiss mutual fund limits inflows into IPO fund

Edelweiss Mutual Fund has decided to limit inflows into its recently listed IPO fund. The move comes after the scheme recently amassed assets with Rs 1,000 crore. The fund house said the move is in line with the investment strategy and will not impact SIP and STP retail investors. The subscription limit is mainly for lump sum investments or SIPs above Rs 1 lakh per day.

“We have decided to limit subscriptions through fee/additional lump sum purchases, exchanges, systematic investment plan, systematic transfer plan and other special facilities/products offered as part of of the fund at Rs 1 lakh per day per PAN effective Feb 01/2022 until further notice. Please note that existing SIP/STP mandates received before January 31, 2022 will continue to exist, regardless of the amount,” the fund house said,

“We had actually said that when we hit an AUM of around Rs 1,000 crore, we would stop flows into the program. This is largely to maintain liquidity in the portfolio and also to look at the IPO pipeline in exchange in the coming months.If there are big ones coming and liquidity improves,we can reopen it for a lump sum.Until then, Rs 1 lakh per day is the limit to encourage SIP and the STP in the program,” said Niranjan Avasthi, Head of Product, Marketing and Digital Affairs, Edelweiss Mutual Fund.

Launched in February 2018, Edelweiss Recently Listed IPO Fund invests in newly listed companies or companies seeking to enter the capital markets via an IPO. The program was launched as a closed-end fund (formerly known as Edelweiss Maiden Opportunities Fund – Series 1) and has been converted to an open-ended fund allowing new investors to enter and participate in the market IPOs.

The program has offered a return of 22.12% since inception and manages an AUM of Rs 1,091 crore.

Dolores W. Simon