Edelweiss Mutual Fund launched the Edelweiss Low Duration Fund on March 11.
This open-ended debt scheme invests in debt and money market instruments while maintaining a Macaulay duration of 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 with a minimum investment of ₹100, with subsequent investments in multiples of ₹1. The fund is managed by Pranavi Kulkarni and Rahul Dedhia.
Investment Strategy
The primary objective 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 between 6 to 12 months, balancing stability and potential returns.
Who Should Invest?
According to Radhika Gupta, Managing Director and CEO of Edelweiss Mutual Fund, the fund is suitable for both individual and institutional investors looking for short-term investment options with low to moderate risk.
She also pointed out that recent tax slab changes have made such debt mutual funds more tax-efficient for retail investors.
Investors with a total annual income, including capital gains, of less than ₹12 lakh will be exempt from capital gains tax under the new tax regime.
Edelweiss suggests this fund for investors with a low to medium risk appetite seeking short-term income through debt and money market instruments.
