In a move to foster systematic investment and temper volatility, Edelweiss Recently Listed IPO Fund has announced that it will limit lumpsum investments to ₹2 lakh per transaction from November 6. This decision comes in the wake of soaring mid and small-cap stock prices leading to inflated valuations. The fund, which holds assets worth ₹1,000 crore (INR100 crore = approx. USD12 million), will continue to maintain Systematic Investment Plans (SIPs) and Systematic Transfer Plans (STPs).
The fund's strategy targets the top 100 recently listed or upcoming IPOs, with a significant focus on small- and mid-caps (65% and 25%, respectively). This approach has been mirrored by other funds, such as Tata Small Cap Fund, SBI Small Cap, and Nippon Small Cap, each of which has also imposed similar restrictions on lump sum investments due to the current market conditions.
Despite the challenging market environment, Edelweiss Recently Listed IPO Fund has demonstrated robust performance. The fund reported returns of 18% over the past year and 23.66% over three years. Among its significant holdings are CE Infosystems, Metro Brands, and Data Patterns.
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