IPOs with the Route of NFO: A unique theme

Edelweiss Mutual Fund coming with New Fund Offer name EDELWEISS MAIDEN OPPORTUNITIES FUND-SERIES 1.

It is Close Ended Equity Scheme Investing Across large,mid and small cap stocks in Recently 2-3 years listed IPO’s and Upcoming IPO’s.

Since IPO-Initial Public Offering Activity has picked up in recent years with over Rs.1,00,000 cr being raised in last 2 years. Robust IPO activity has created multiple maiden investment opportunities.

This fund is first of its kind in the industry that intends to follow a disciplined approach while investing in recent and upcoming listings.The aim is to make investing in such maiden ideas accessible and simpler for retail investors.

Investing in India’s Prospective Opportunities(IPO) is the mantra of this NFO.

New Sectors Such as Insurance, Diagnostic, Staffing Solutions,stock exchange & Depository, Retail and Asset Management Company are being introduced offering unique Opportunities to play India’s growth story.

Three key aspects of IPO investing:

  1. Access – A dedicated fund Investing in recent IPOs to provide better access and thereby maximizing gains.
  2. Selection – Provides right selection of IPOs as not all IPOs are investment worthy.
  3. Post listing Gain – A structured approach to optimize post listing gains as many IPOs have generated healthy returns over next 12 to 18 months after listing.


  1. Stock Selection – Best 20-30 ideas from recently listed and upcoming IPOs.
  2. Style – Multi-cap and Sector agnostic approach
  3. Protection – Endeavors to protect downside through put options
  4. Profit Booking – Aims for systematic profit booking through dividend  payouts(subjected to availability)


Heightened IPO activity provides good investment opportunity.

  1. Select best recently listed and upcoming IPOs through a process driven approach.
  2. Access to large number of IPOs with Limited Money.
  3. Tradition Diversified Mutual Funds give limited exposes to IPOs.
  4. Endeavors to protect downside and declare dividends(subjected to availability).

IPO FINALFund Features

NFO Period: 2nd Feb 2018 to 16th Feb 2018

Maturity Date: 28th June 2021

MICR Cheque: Till end of business hours on 15th Feb 2018

Plans and Options:Regular Plan with Growth and Dividend Payout

Offer of units: Rs. 10/- each during the New Fund Offer Period

Minimum Application Amount-Rs. 5000/-(plus in multiple of rs. 10)

Liquidity: To be Listed on exchange

Fund Manager: Bhavesh Jain and Bharat Lahoti

Download the Fact sheet of Fund manger of Bhavesh Jain

Download (PDF, 93KB)

Download the Fact sheet of Fund manger of Bharat Lahoti

Download (PDF, 95KB)

Benchmark: Nifty 200 Index

The benchmark for the Scheme is NIFTY 200 Index. The performance of the Scheme would be bench marked with NIFTY 200 Index since it is in line with the investment objective and this reflects the primary universe of stocks from where the portfolio would be constructed by the fund managers.


Edelweiss Asset Management Limited


Karvy Computershare Private Limited.

The AMC / Trustee Company reserve the right to revise the load structure from time to time. Such changes will become effective prospectively from the date such changes are incorporated.

Since the fund having lock-in of 3.5 years. It provide fund manager time to perform him expertise.

Know more About P/E Ratio and its Significance

Risk factors:

Standard Risk factors

Investment in Mutual Fund Units involves investment risks such as trading volumes, settlement risk, liquidity risk, default risk including the possible loss of principal.

Mutual funds and securities investments are subject to market risks and there is no assurance or guarantee against loss in the Scheme or that the Scheme’s objective will be achieved.

The present Scheme is not a guaranteed or assured return Scheme.

Scheme Specific Risk factors:

Risk Factors Associated with Equity & Equity related instruments.

Risks Associated with Fixed Income and Money Market Instruments.

Interest rate risk, Spread risk, Credit risk or default risk, Liquidity Risk, Reinvestment risk,Performance Risk,Market risk,

Risk factors associated with investment in ADRs/GDRs and Foreign Securities.

Risk Factors Associated with Derivative.

Risk factor specifically while using Options (non arbitrage), Risks attached with the use of debt derivatives.

Risk Associated with Securitized Debt.

Risks Associated with Stock Lending & Short Selling.

Risks Associated with Trading of Units on Stock Exchange.

Risk associated with Close Ended Scheme.

Information about the scheme:

Investment objective:

The investment objective of the Scheme is to seek to provide capital appreciation by investing in equity and equity related securities of companies which are new in the sector, early in their growth stage and are poised to benefit from the India growth story in the long-term.

However, there is no assurance that the investment objective of the Scheme will be realized and the Scheme does not assure or guarantee any returns.

Asset allocation and investment pattern:

Under normal circumstances, the anticipated asset allocation under each Series of the Scheme, will be as follows:

Indicative Allocation

(% to net assets)

                       Risk Profile
Equity and Equity

related instruments including derivatives

65% to 100% Medium to High
Debt and

money market instruments

0% to 35% Low

The Scheme will not invest in credit default swaps.

Investment in Securitized Debt will be up to 50% of debt allocation.

Investment in ADRs/ GDRs/ Foreign Securities, whether issued by companies in India and foreign Securities, as permitted by SEBI Regulation, can be up to 35% of the Net Assets of the Scheme.

The Scheme may, if the Trustees permit, engage in short selling of securities in accordance with the framework relating to short selling and securities lending and borrowing specified by SEBI. The Scheme shall not deploy more than 20% of its net assets in stock lending and not more than 5% of the net assets of the Scheme will be deployed in Stock lending to any single counter party.

The Scheme may invest in derivatives up to 50% of the Net Assets of the Scheme.

The cumulative gross exposure through equity, debt and derivative positions should not exceed 100% of the net assets of the Scheme. The exposure to Derivatives mentioned as a percentage to the Net Assets means Gross Notional Exposure.

Cash or cash equivalents with residual maturity of less than 91 days will be treated as not creating any exposure.

Portfolio Re balancing.

Investment in CBLO before the closure of NFO.


Where will the scheme invest?

The corpus of the Plan under the Scheme shall be invested in any (but not exclusively) of the following securities:

1) Equity and Equity related instruments

  • Equity shares
  • Equity related instruments: convertible bonds, convertible debentures, equity warrants, convertible preference shares, etc.
  • Equity Derivatives
  • ADR, GDR, Foreign equity and Equity related instrument as may be permitted by SEBI/RBI from time to time.
  • Any other securities permitted by SEBI from time to time.

2) Debt securities:

Each Series under the Scheme will retain the flexibility to invest in the entire range of debt instruments and money market instruments. These instruments are more specifically highlighted below:

Debt instruments (in the form of non-convertible debentures, bonds, secured premium notes, zero interest bonds, deep discount bonds, floating rate bond / notes and any other domestic fixed income securities) include, but are not limited to:

1) Debt issuances of the Government of India, State and local Governments, Government Agencies and statutory bodies (which may or may not carry a state / central government guarantee),

2) Debt instruments that have been guaranteed by Government of India and State Governments,

3) Debt instruments issued by Corporate Entities (Public / Private sector undertakings),

4) Debt instruments issued by Public / Private sector banks and development financial institutions.

Rs. 4 Lakh In Reliance Banking Fund Turns Over Rs. 1 Crore In Less Than 15 Years

Money Market Instruments include:

1) Commercial papers, 2) Commercial bills, 3) Treasury bills, 4) Government,securities having an unexpired maturity upto one year, 5) Collaterlised Borrowing & Lending Obligation (CBLO), 6) Certificate of deposit,7) Usance bills, 8) Permitted securities under a repo / reverse repo agreement (other than Corporate Debt Securities), 9) Any other like instruments as may be permitted by RBI / SEBI from time to time.

Pending deployment within reasonable time period and towards the maturity of the Series:

The monies may be kept in cash and cash equivalents viz. overnight investment in CBLO, reverse repo, money market instruments, liquid and money market mutual fund schemes.

The AMC may park the funds of the Plan in short term deposits of scheduled commercial banks, subject to the guidelines issued by SEBI vide its circular dated April 16, 2007, as amended from time to time.

Investment in Securitised Debt.

The investments in Securitised debt papers including Pass through Certificates (PT/Cs) may be made upto 35% of the net assets of the Scheme. Securitization is a structured finance process, which involves pooling and repackaging of cash-flow producing financial assets into securities that are then sold to investors.

  • Auto Loans (cars / commercial vehicles /two wheelers)
  • Residential Mortgages or Housing Loans
  • Consumer Durable Loans
  • Corporate Loans

Personal Loans Pass Through Certificates

Investments in the Schemes of Mutual Fund

Setting up a goal: First step to Financial Planning ( Video )

Strategy and Approach:

The Scheme will be a diversified equity fund which will invest in equity and equity related securities of the companies that are new in the sector, early in their growth phase and are likely to benefit in the long term from the macro and demographic aspects of the Indian economy.

The Fund will invest in a diversified basket of equity stocks spanning the entire market capitalization spectrum and across multiple sectors with special focus on companies that are newly introduced in the market and are unique businesses The Fund would identify companies for investment, based on the following criteria amongst others:

  1. Track record of the company
  2. Potential for future growth
  3. Industry economic scenario & its outlook

The fund manager proposes to concentrate on business and economic fundamentals driven by in-depth research techniques and employing the potential of the research team at the AMC.

Key to the manager’s investment strategy is the identification of triggers for potential appreciation of stocks in the universe over the medium to long term time frame. As and when the fund manager is of the view that a specific investment has met its desired objective, the investment maybe liquidated.

The Scheme may also use various derivatives and hedging products from time to time, as would be available and permitted by SEBI, or in an attempt to limit the downside risk of the portfolio.

The Scheme may invest in other schemes managed by the AMC or in the schemes of any other Mutual Funds, provided it is in conformity with the investment objective of the Scheme and in terms of the prevailing Regulations. As per the Regulations, no investment management fees will be charged for such investments. As per the SEBI Regulations, such inter-scheme investments shall not exceed 5% of the Net Asset Value of the Fund.

Derivative & Arbitrage Strategies

Derivatives are financial contracts of pre-determined fixed duration, whose values are derived from the value of an underlying primary financial instrument, or index, such as: interest rates, exchange rates, and equities.

Cash Future Arbitrage.


Buy 100 shares of Company A at Rs 100 and sell the same quantity of stock’s future of the Company A at Rs 101.

  1. Market goes up and the stock end at Rs 200.

At the end of the month (expiry day) the future expires automatically:

Settlement price of future = closing spot price = Rs 200

Gain on stock is 100*(200-100) = Rs 10,000

Loss on future is 100*(101-200) = Rs – 9,900

Net gain is 10,000 – 9,900 = Rs 100

  1. Market goes down and the stock end at Rs 50.

At the end of the month (expiry day) the future expires automatically:

Settlement price of future = closing spot price = Rs 50

Loss on stock is 100*(50-100) = Rs – 5,000

Gain on future is 100*(101-50) = Rs 5,100

Net gain is 5,100 – 5,000 = Rs 100

Index Arbitrage.INDEX ARBPortfolio Protection/ Hedging.

Interest Rate Swaps (IRS) and Forward Rate Agreements (FRA).

Stock Lending.

Investment in debt/ money market instruments.

Investment in Mutual Fund Units.

Risk Control.

Portfolio Turnover


Mutual Fund Investment are Subjected to Market Risks,Read all Scheme Related Document Carefully.Return Expectation just assume may varies.

Disclaimer: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on information published here.

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