Edelweiss Mutual Fund has launched a new investment scheme under its Altiva Specialized Investment Fund platform. The new scheme is called the Altiva Equity X Top 100 Long Short Fund.
The New Fund Offer (NFO) is currently open for investors and will remain available for subscription till June 1. During the offer period, each unit is priced at ₹10.
The company’s MD and CEO, Radhika Gupta, said the company is excited about this new strategy after receiving a positive response to its earlier fund.
Fund Will Focus on Mid and Small Cap Companies
This new fund will mainly invest in companies that are outside India’s top 100 companies by market capitalization. In simple terms, the focus will be on mid-cap and small-cap stocks.
According to the fund managers, many companies in this segment are still not fully discovered by the market. These businesses may have strong future growth potential and could deliver better returns over the long term.
Long-Short Strategy Aims to Control Market Risk
The fund will follow a long-short investment strategy. This means most of the money will be invested in stocks for long-term growth, while some positions may also be taken through derivatives to benefit from falling prices or reduce market risk.
The fund’s Chief Investment Officer, Trideep Bhattacharya, said the recent correction in mid-cap and small-cap stocks could create a good entry opportunity for investors.
Fund Managers and Exit Rules
The scheme will be managed by three experienced fund managers — Trideep Bhattacharya, Nikhil Gada, and Amit Vora.
The performance of the fund will be benchmarked against the Nifty 500 TRI.
Investors who withdraw their money within 90 days of allotment will have to pay an exit load of 0.50%. However, there will be no exit load after 90 days.
This fund may be suitable for investors who are looking for long-term investment opportunities and are comfortable with market-linked risks.