Edelweiss Asset Management Limited has announced the launch of its Edelweiss Low Duration Fund, an open-ended debt scheme that aims to generate income by investing in low-duration debt and money market securities. The New Fund Offer (NFO) will be open for subscription from March 11 to March 18, 2025. The fund’s investment objective is to provide a balance between stability and returns by actively managing a high-quality portfolio with a Macaulay duration between 6 and 12 months.
The fund is suitable for investors seeking income over the short-term with low to moderate risk. The minimum investment amount is Rs 100, with additional investments in multiples of Rs 1. Commenting on the launch, Radhika Gupta, Managing Director & CEO of Edelweiss Mutual Fund, said that the fund is designed to cater to both individual and institutional investors, offering a short-term investment option with low to moderate risk. She also highlighted that the recent tax slab revisions have made such debt mutual funds tax-efficient for retail investors.
The launch of the fund comes at a time when investor interest in low-duration funds is on the rise, with the category witnessing net inflows of Rs 6,618 crore in the last six months. The Reserve Bank of India’s (RBI) expected moves to inject liquidity into the banking system and purchase bonds in FY26 are likely to result in the easing of short-term yields, making it an opportune time for investors to consider low-duration strategies.
The scheme will be managed by Pranavi Kulkarni and Rahul Dedhia, Fund Managers at Edelweiss MF. With its low to moderate risk profile and potential for stable returns, the Edelweiss Low Duration Fund is an attractive option for investors looking for a short-term investment solution. The fund’s tax efficiency, combined with the expected market conditions, makes it a timely launch that is likely to generate significant interest among investors. Overall, the Edelweiss Low Duration Fund is a welcome addition to the market, providing investors with another option for managing their short-term investments.