Edelweiss Mutual Fund has introduced the Edelweiss Low Duration Fund on March 11. This is an open-ended debt scheme that invests in debt
and money market instruments, ensuring the Macaulay duration of the portfolio remains between 6 to 12 months. The scheme carries relatively high interest rate risk and moderate credit risk.
Investment Details
The New Fund Offer (NFO) is open for subscription from March 11 to March 18, 2025. Investors can start investing with a minimum amount of ₹100,
and subsequent investments can be made in multiples of ₹1. Pranavi Kulkarni and Rahul Dedhia are the designated fund managers for this scheme.
Investment Strategy
The primary goal of the Edelweiss Low Duration Fund is to generate income by investing in low-duration debt and money market securities.
The portfolio will be actively managed to maintain a Macaulay duration of 6 to 12 months, striking a balance between stability and returns.
Who Should Invest?
Radhika Gupta, Managing Director and CEO of Edelweiss Mutual Fund, stated that the fund is designed to cater to both individual and institutional investors. It offers a short-term investment option with low to moderate risk.
She also highlighted that recent tax slab changes have made such debt mutual funds more tax-efficient for retail investors.
If an investor’s total annual income, including capital gains, is less than ₹12 lakh, they will be exempt from capital gains tax under the new tax regime.
According to Edelweiss, this fund is suitable for investors with a low to medium risk appetite who seek short-term income through debt and money market instruments.