Edelweiss Asset Management has mopped up ₹1,800 crore through Business Cycle new fund offer (NFO).

The NFO closed for subscription on July 23 and attracted investment interest from over 90,000 investors.

Radhika Gupta, Managing Director, Edelweiss Mutual Fund, said the investment interest in the NFO reaffirms stakeholders’ confidence in the fund house’s 15-year track record of managing factor-based investing strategies and strengthen the position as one of the largest asset managers in this space.

The theme fund will capture market opportunities by investing across various sectors and market-caps. It offers a robust solution for core allocation with a long-term focus.

Factor investing

The fund deploys a factor-investing approach to create three baskets representing quality, growth and value stocks. By diversifying across these baskets, the fund minimises the cyclicality of any single factor.

In each basket, the fund selects the highest momentum stocks, resulting in a diversified portfolio of 50-60 stocks. The fund aims to dynamically rotate between sectors over different time periods, seamlessly combining momentum with fundamentals to enter and exit sectors, having potential to generate better alpha.

Published on July 25, 2024