Comments
Edelweiss Asset Management Company has decided to limit inflows into the ‘Recently Listed IPO Fund’ to review the liquidity profile and pipeline of upcoming opportunities.
Following this, the fund house has restricted lumpsum purchases, switch-ins, systematic investment plan (SIP) and systematic transfer plan (STP) to ₹1 lakh per day per permanent account number (PAN) with effect from February 1 till further notice.
However, the existing SIP/STP mandates received before January 31 will continue to exist, irrespective of the amount. The fund has asset under management of ₹1,100 crore as of December-end.
The bull run in the primary market has started tapering off after raising a record over ₹1 lakh crore last year with listing of new age businesses. Some of the IPOs, which made a huge listing gain on debut, had plunged in few days after euphoria subsided.
Edelweiss Recently Listed IPO fund invests in top 100 companies in IPO index and has delivered a CAGR of 57 per cent in last one year and 34 per cent in three years.
Launched in February 2018, the fund invests in listed companies or companies foraying to enter the capital markets through initial public offering (IPO).
The scheme was launched as a closed ended fund as Edelweiss Maiden Opportunities Fund – Series 1. It was converted into open ended fund for new investors to enter and participate in IPO market which saw new age businesses list in the market.
Terming the move is in the interest of investors, Radhika Gupta, Managing Director & CEO, Edelwiess Mutual Fund said after quick growth in the fund AUM since launch, the fund house want to take this opportunity to review portfolio liquidity and also looking at the IPO pipeline in coming months.
“If new opportunities emerge we may re-open it for large lump-sum flows. Till then SIPs/STPs are welcome,” she said.
“We advise investors to continue investing in the fund via SIPs/STPs and parallelly we will continue to review various factors and ways to restart large inflows in coming time,” said the fund house.
The fund has been selective while investing in IPOs and has averted some overpriced and bad businesses that got listed in recent times.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.