Edelweiss Mutual Fund Introduces Hybrid Index Scheme

Overview

Edelweiss Mutual Fund has launched a new hybrid index scheme, Edelweiss Nifty LargeMidcap250 Plus 8–13 year G-Sec 70:30 Index Fund, which combines equities and government securities. The fund offers a structured approach to long-term investing, allocating 70% to equities and 30% to government bonds.

Investment Strategy

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The fund will replicate a hybrid index that follows the Nifty LargeMidcap250 index for equity exposure and the Nifty 8–13 year G-Sec index for fixed income exposure. The scheme's new fund offer (NFO) will open on March 18 and close on April 1.

Key Features

• The fund will maintain a 70:30 mix between equities and government bonds through regular rebalancing.
• The Nifty LargeMidcap250 index covers around 85% of India's free-float market capitalisation and includes 250 stocks, including 100 large-cap and 150 mid-cap companies.
• The fixed-income portion of the fund will invest in government securities with maturities between eight and thirteen years, carrying no credit risk.
• The hybrid index is rebalanced monthly, automatically restoring the target allocation between equities and bonds.

Benefits

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• Combining equities with government bonds may help cushion declines during weaker market periods.
• The disciplined approach removes behavioural bias and eliminates the need for investors to time the market themselves.
• The fund is designed for long-term investors, with a recommended minimum investment horizon of five years and ideal for goal-based investing between seven to 10 years.