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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.

Invest in direct mutual funds

  • Enjoy 0% commission
  • SIP starting at ₹500

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

InstrumentsIndicative Allocation (% of net assets)Risk Profile
MinimumMaximumHigh/Medium/Low
Stocks comprising the MSCI India

Domestic & World Healthcare 45 Index

95100High
Debt and Money Market Instruments /

units of Liquid Mutual Funds

05Low

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 FundEdelweiss MSCI India Domestic & World Healthcare 45 Index Fund
Type of SchemeAn open‐ended scheme which will imitate the MSCI India Domestic & World Healthcare 45 Index
BenchmarkMSCI India Domestic & World Healthcare 45 Index
NFO DatesOpens on October 6, 2020, and closes on October 20, 2020
Fund ManagerHardik 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 AmountRs 500 and in multiples of Re 1 after that. 

No minimum redemption criteria for unit-based redemption.

Entry LoadN.A.
Exit LoadNil
PlansRegular Plan and Direct Plan
OptionsGrowth and Dividend Option (Payout, Dividend Reinvestment Option)

SIP/STP/SWP

SIP

TypeMinimum AmountMinimum Installments
DailyRs 300 and in multiples of Re 1 after that20
WeeklyRs 500 and in multiples of Re 1 after that12
Fortnightly
Monthly
QuarterlyRs 1,000 and in multiples of Re 1 after that6

SWP

SWP

TypeMinimum AmountMinimum InstallmentsInvestment Dates
FortnightlyRs 500 and in multiples of Re 1 after that1210th and 25th of the last month
Monthly 12Any date except last 3

days of the month

Quarterly6

STP

STP

TypeMinimum AmountMinimum InstallmentsInvestment Dates
DailyRs 300 and in multiples of Re 1 after that20All business days
WeeklyRs 500 and in multiples of Re 1 after that127th, 14th, 21st

& 28th of any

month

Fortnightly10th and 25th of

the month

MonthlyAny date

except last 3

days of the

month

QuarterlyRs 1,000 and in multiples of Re 1 after that6

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.

Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.

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