Edelweiss Launches a Healthcare Index Fund
Edelweiss Mutual Fund is launching a new index fund which will be investing in stocks of Indian and Global Healthcare companies. The Fund is a passive Index Fund investing in stocks comprising the underlying MSCI India Domestic & World Healthcare 45 Index which constitutes 45 healthcare sector listed across India and US market. The NFO of this fund opens for 15 days on 6th October 2020 and closes on 20th October 2020.
What is an index fund?
As the name suggests, an Index Mutual Fund invests in stocks that imitate a stock market index like this fund invest in MSCI index. These are passively managed funds which means that the fund manager invests in the same securities as present in the underlying index in the same proportion and doesn’t change the portfolio composition. These funds endeavour to offer returns comparable to the index that they track.
Investment Strategy
This mutual fund scheme will invest in stocks of companies comprising the MSCI India Domestic & World Healthcare 45 Index.
This index is a combination of India and World constituents in 70:30 Ratio in the following manner:
MSCI India Healthcare component: 70% Weight
- Top 25 stocks based on FF Marketcap
- Sectors covered: Pharma, Hospitals, Diagnostics, Lifescience tools & Services, Biotechnology and other Healthcare services
MSCI World Healthcare component: 30% weight
- 20 stocks – Top 5 stocks from 4 sub-sectors each – Pharma, Healthcare Equipment, Biotechnology and Life Sciences Tools and services
- Weights based on their Full Market Cap
- Global Companies listed in US
Indicative Asset Allocation of the Fund
| Instruments | Indicative Allocation (% of net assets) | Risk Profile | |
| Minimum | Maximum | High/Medium/Low | |
| Stocks comprising the MSCI India
Domestic & World Healthcare 45 Index |
95 | 100 | High |
| Debt and Money Market Instruments /
units of Liquid Mutual Funds |
0 | 5 | Low |
Fund Details
There will be direct and regular plans. Under both these plans, the scheme will offer growth and dividend options. Furthermore, the dividend option has the following facilities:
- Dividend Reinvestment
- Dividend Payout
- Dividend Sweep Facility
Here are a few details about the fund:
| Name of the Fund | Edelweiss MSCI India Domestic & World Healthcare 45 Index Fund |
| Type of Scheme | An open‐ended scheme which will imitate the MSCI India Domestic & World Healthcare 45 Index |
| Benchmark | MSCI India Domestic & World Healthcare 45 Index |
| NFO Dates | Opens on October 6, 2020, and closes on October 20, 2020 |
| Fund Manager | Hardik Varma for domestic investments
Mayur Dharmshi for overseas investments |
| Minimum Application Amount/Minimum Purchase Amount (including switches) | Rs. 5,000 and in multiples of Re. 1 after that |
| Minimum Additional Investment (including switches) | Rs 500 and in multiples of Re 1 after that |
| Minimum Redemption Amount | Rs 500 and in multiples of Re 1 after that.
No minimum redemption criteria for unit-based redemption. |
| Entry Load | N.A. |
| Exit Load | Nil |
| Plans | Regular Plan and Direct Plan |
| Options | Growth and Dividend Option (Payout, Dividend Reinvestment Option) |
SIP/STP/SWP
|
SIP |
||
| Type | Minimum Amount | Minimum Installments |
| Daily | Rs 300 and in multiples of Re 1 after that | 20 |
| Weekly | Rs 500 and in multiples of Re 1 after that | 12 |
| Fortnightly | ||
| Monthly | ||
| Quarterly | Rs 1,000 and in multiples of Re 1 after that | 6 |
SWP
|
SWP |
|||
| Type | Minimum Amount | Minimum Installments | Investment Dates |
| Fortnightly | Rs 500 and in multiples of Re 1 after that | 12 | 10th and 25th of the last month |
| Monthly | 12 | Any date except last 3
days of the month |
|
| Quarterly | 6 | ||
STP
|
STP |
|||
| Type | Minimum Amount | Minimum Installments | Investment Dates |
| Daily | Rs 300 and in multiples of Re 1 after that | 20 | All business days |
| Weekly | Rs 500 and in multiples of Re 1 after that | 12 | 7th, 14th, 21st
& 28th of any month |
| Fortnightly | 10th and 25th of
the month |
||
| Monthly | Any date
except last 3 days of the month |
||
| Quarterly | Rs 1,000 and in multiples of Re 1 after that | 6 | |
Fund Managers
Hardik Varma: Mr Varma started his career with Edelweiss AMC and has over five years of experience in financial markets. He has worked an equity research analyst and is currently an equity fund manager.
Here are the other funds he manages:
- Edelweiss Large Cap Fund
- Edelweiss Equity Savings Fund (Arbitrage Portion)
- Edelweiss Aggressive Hybrid Fund (Equity Portion)
- Edelweiss ETF – Nifty 50
- Edelweiss ETF – Nifty Bank
- Edelweiss ETF – Nifty 100 Quality 30
- Edelweiss Greater China Equity Off‐Shore Fund
- Edelweiss Emerging Markets Opportunities
- Equity Offshore Fund
- Edelweiss ASEAN Equity Off‐Shore Fund
- Edelweiss Europe Dynamic Equity Off‐Shore Fund
- Edelweiss US Value Equity Off‐shore Fund
- Edelweiss US Technology Equity Fund of Fund
Mayur Dharmshi: Mr Dharmshi has more than 23 years of experience. Prior to this, he worked as an equity trader with JPMorgan Asset Management India Private Ltd.
DISCLAIMER
The MSCI data is comprised of a custom index calculated by MSCI for, and as requested by, Edelweiss Asset Management. The MSCI data is for internal use only and may not be redistributed or used in connection with creating or offering any securities, financial products or indices. Neither MSCI nor any other third party involved in or related to compiling, computing or creating the MSCI data (the “MSCI parties”) makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and the MSCI Parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to such data. Without limiting any of the foregoing, in no event shall any of the MSCI Parties have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.