Edelweiss MF limits subscription for its Recently Listed IPO Fund

The fund is an open-ended equity scheme and invests in recently listed companies or upcoming Initial Public Offers (IPO).

The fund house has restricted  inflows into the scheme, by way of lump sum fresh/additional purchases to ₹1 lakh per day per PAN,  effective 1 February.

In case of Systematic Investment Plan (SIP), the limit of ₹1 lakh is applicable per month. The limits are also applicable to switch-ins, systematic transfer plan (STPs) and other facilities/special products offered.

Existing SIP/STP mandates, received before 31 January 2022, will continue irrespective of the amount.

“Edelweiss Recently Listed IPO Fund has quickly grown and has reached a size where we think it is prudent to limit inflows. The limit will allow us to review the liquidity profile of the portfolio and pipeline of upcoming opportunities,” said the fund house.

The scheme was launched in February 2018 as a closed ended fund, known as Edelweiss Maiden Opportunities Fund – Series 1, and was converted into open ended fund in June last year for new investors to enter and participate in IPO market which saw new age businesses list and grow.

The fund has been very selective while investing in IPOs and has averted some overpriced and bad businesses that got listed in recent times. “This has helped the fund in generating strong 20.93% CAGR returns since its inception,” as per a statement.