IPO Fund: Edelweiss Mutual Fund to Revoke Inflow Limit in Recently Listed IPO Fund

The Edelweiss Mutual Fund has decided to remove the subscription limit for the Edelweiss Recently Listed IPO Fund with effect from April 1st. In other words, all lump sum investments, including all systematic investments in Plan Units, will be accepted. Earlier, the fund house had restricted investments to a maximum of Rs 1 lakh per day per investor in February this year.

Edelweiss Newly Listed IPO Fund was launched as a closed-end plan in 2018 and converted to an open-end fund in May 2021. The assets of the plan had doubled in a very short time and as a result the house of fund had decided to put restrictions on entries.

The fund invests in newly listed companies or those planning to enter the capital markets soon. Prior to becoming an open-ended plan, the fund was called Edelweiss Maiden Opportunities Fund – Series 1 (EMOF).

“Since we limited subscriptions in the fund, stock markets have corrected and IPO shares have also corrected significantly. We had closed subscription to review liquidity conditions and that too is comfortable now. Therefore, we have decided to remove the limit which will allow investors to take advantage of this correction and invest in the fund at attractive levels,” said Radhika Gupta, MD & CEO, Edelweiss Asset Management Limited.

Dolores W. Simon