Edelweiss Asset Management has launched a new open-ended low duration debt scheme, Edelweiss Low Duration Fund, with a minimum investment amount of Rs 100. The fund aims to generate income by investing in debt and money market securities with a Macaulay duration of 6-12 months, striking a balance between stability and returns. The scheme is suitable for investors seeking short-term income with low to moderate risk.
According to Radhika Gupta, Managing Director and CEO of Edelweiss Mutual Fund, the recent tax slab revisions have made debt mutual funds like Edelweiss Low Duration Fund tax-efficient for retail investors. With the new tax regime, investors can claim a rebate if their total annual income, including capital gains, remains within Rs 12 lakh.
The Edelweiss Low Duration Fund is designed to cater to both individual and institutional investors, offering a short-term investment option with low to moderate risk. The fund will be managed by Pranavi Kulkarni and Rahul Dedhia. The new fund offer (NFO) is open for subscription until March 18.
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 (RBI) is expected to inject more liquidity into the banking system, which is likely to result in the gradual easing of short-term yields, making it an opportune time for investors to consider low-duration strategies.
The fund’s investment objective is to provide a relatively high-interest rate risk and moderate credit risk, making it suitable for investors seeking income over the short-term. With a low minimum investment amount and the option to invest in multiples of Re 1, the fund is accessible to a wide range of investors. Overall, the Edelweiss Low Duration Fund offers a viable option for investors looking for a short-term investment solution with relatively low risk.