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.

The Securities and Exchange Board of India (SEBI) has set a minimum investment threshold of Rs 10 lakh for Scheme of Investment Funds (SIFs). This higher entry point is due to the increased complexity of SIFs, which often involve the use of derivatives and may have limited liquidity in certain categories. According to industry experts, derivatives require a deeper understanding and nuance, making them more suitable for savvier investors.

The use of derivatives in SIFs can be complex, and the liquidity terms may differ from the daily liquidity typically associated with mutual funds. As a result, SEBI mandates that SIFs operate under a distinct brand to differentiate them from traditional mutual funds. This separation is intended to provide clarity for investors and ensure that they understand the unique characteristics and risks associated with SIFs.

The creation of a separate brand name, such as ‘Altiva SIF’, is a deliberate effort to distinguish SIFs from traditional mutual funds. This separation is necessary because SIFs cater to investors with a higher risk appetite and greater financial literacy. By setting a higher minimum investment threshold and requiring a distinct brand, SEBI aims to ensure that investors are aware of the potential risks and complexities involved with SIFs.

The higher minimum investment threshold of Rs 10 lakh is designed to filter out investors who may not have the necessary financial sophistication or risk tolerance to invest in SIFs. By limiting access to these funds, SEBI hopes to protect investors from potential losses and ensure that they are making informed investment decisions. Overall, the regulations surrounding SIFs are intended to promote transparency, clarity, and investor protection in the Indian mutual fund industry.

The Calcutta High Court has made a significant ruling in a case involving the Goods and Services Tax (GST) refund. The petitioner, Edelweiss Rural & Corporate Services Limited (Edelweiss), had approached the Court after being aggrieved by contradictory orders issued by the Revenue Department. Edelweiss had previously successfully appealed against a refund rejection order and had filed a new refund application in October 2023. However, the Revenue Department issued a refund sanction order that directed the refund amount to be paid into the company’s Electronic Credit Ledger, despite the fact that the company had ceased its business operations and its registration had been cancelled.

The Court noted that this decision was contradictory to the original sanctioning order, which had stated that the refund amount would be paid to the company’s bank account. The single-judge bench of Justice Raja Basu Chowdhury observed that the petitioners had closed down their business operation and its registration had already been cancelled, and that no tax was due payable by the petitioner. The Court instructed the Deputy Commissioner to reconsider and rectify this contradiction, granting a period of six weeks to make a new determination after providing an opportunity for a hearing to the petitioner.

The Court’s ruling is significant as it highlights the importance of ensuring that GST refund orders are consistent and do not prejudice the taxpayer. The Court’s decision also underscores the need for the Revenue Department to follow proper procedures and provide opportunities for hearing to taxpayers before making decisions that affect their rights. The case is a reminder that taxpayers have the right to approach the Courts to challenge decisions that are contradictory or unjust, and that the Courts will intervene to ensure that justice is served.

The petitioners were represented by Ankit Kanodia, Megha Agarwal, Tulika Roy, and Piyush Khaitan, while the respondents were represented by Anirban Ray, Md. T. M. Siddiqui, Tanoy Chakraborty, and Saptak Sanyal. The Court’s judgment is a victory for Edelweiss, which had been seeking a refund of ₹68,66,238. The case will likely have implications for other taxpayers who are seeking GST refunds and are facing similar challenges. The Court’s ruling is a reminder that the GST regime is still evolving, and that the Courts will play an important role in shaping its development and ensuring that it is fair and just.

Edelweiss Asset Management Limited, one of India’s fastest-growing asset management companies, has launched a new brand identity called “altiva SIF” for its Specialized Investment Funds (SIFs) business. This move reinforces the company’s commitment to innovation and unique product offerings. The altiva SIF will provide differentiated investment solutions across equity, hybrid, and fixed income categories, catering to the evolving needs of investors.

According to Radhika Gupta, MD & CEO of Edelweiss Mutual Fund, the launch of altiva SIF marks the company’s early entry into the promising and fast-evolving SIFs space. She believes that SIFs represent the next evolution in investment solutions, offering a powerful bridge between traditional mutual funds and Portfolio Management Services (PMS)/Alternative Investment Funds (AIFs). SIFs have the potential to redefine how portfolios are constructed and managed, and Edelweiss is excited to leverage its deep, differentiated capabilities to shape this emerging category.

The name “altiva” is inspired by the word “altitude,” embodying the resolve to rise above, the vision to see beyond, and the discipline to move with intent. It represents the pinnacle of investment and is inspired by the spirit of Edelweiss, a rare alpine flower known for thriving in challenging environments. The altiva SIF will be backed by a seasoned team of investment experts with expertise in fundamental, factor-based, and fixed income investments.

The launch of altiva SIF is a strategic move by Edelweiss to cater to the growing sophistication of investor expectations. As investors become more discerning, they require innovative and agile investment solutions that can help them navigate complex markets. Edelweiss is well-positioned to capitalize on this trend, with its strong track record of innovation and customer-centric approach. With the launch of altiva SIF, Edelweiss is poised to make a significant impact in the SIFs space and provide investors with unique and differentiated investment opportunities.

Edelweiss Asset Management Limited has launched a new brand identity called “altiva SIF” as it enters the Specialized Investment Funds (SIFs) space. This move positions Edelweiss as one of the first asset management companies in India to formally build out offerings in this emerging category. The altiva SIF platform aims to offer a range of investment solutions in equities, hybrids, and fixed income, catering to the changing requirements of investors looking for options outside of conventional mutual funds.

According to Radhika Gupta, MD & CEO of Edelweiss Mutual Fund, SIFs represent the next evolution in investment solutions, offering a powerful bridge between traditional mutual funds and Portfolio Management Services (PMS)/Alternative Investment Funds (AIFs). altiva SIF is designed to provide agile and innovative solutions that can reshape how portfolios are built. The brand draws inspiration from “altitude,” symbolizing ambition, discipline, and vision, which will guide Edelweiss’ approach in the SIF segment.

The introduction of SIFs by the Securities and Exchange Board of India (SEBI) aims to bridge the gap between Mutual Funds (MFs) and Portfolio Management Services (PMS). SIFs offer a balanced approach, providing portfolio flexibility while ensuring adherence to regulatory requirements and safeguarding investor interests. Edelweiss AMC, with its expertise across fundamental, factor-based, and fixed income investing, is well-positioned to capture opportunities that require both flexibility and precision.

The altiva SIF platform seeks to offer purpose-built solutions that truly make a difference, leveraging Edelweiss’ deep, differentiated capabilities to shape this emerging category. With the launch of altiva SIF, Edelweiss AMC enters a space that blends the scale of mutual funds with the bespoke strategy orientation of alternative investments. This move is expected to redefine how portfolios are constructed and managed, offering investors a blend of flexibility and regulatory protection.

Overall, the launch of altiva SIF marks a significant milestone for Edelweiss AMC, as it forays into the SIF space and provides investors with innovative and agile investment solutions. With its commitment to delivering differentiated, next-generation investment products, Edelweiss AMC is poised to lead the way in shaping the SIF category and redefining the investment landscape in India.

Edelweiss Pianos, a prestigious British piano company founded in 1975, has launched a revolutionary piano configurator that allows clients to design and customize their own pianos. This innovative tool, available online and in-store, enables customers to choose from a wide range of colors and finishes to create a unique and personalized instrument that reflects their individual style and home decor. The configurator is a significant milestone in Edelweiss Pianos’ commitment to providing high-quality, tailored musical experiences.

According to Danny Norman, the launch of the piano configurator empowers clients to bring their creative visions to life, ensuring that every piano is as unique as the person playing it. Edelweiss Pianos has a long history of innovation, having introduced the Virtuoso self-play system and created bespoke pianos for clients across the UK, USA, and the Middle East. The introduction of the piano configurator further solidifies the company’s reputation as a leader in combining traditional craftsmanship with modern technology.

The piano configurator can be accessed on the Edelweiss Pianos website, allowing customers to explore the possibilities of creating a custom piano that reflects their unique taste and style. This launch marks a significant transformation in the piano purchasing experience, making it more interactive and personalized than ever before. Edelweiss Pianos continues to uphold its legacy of excellence and innovation, ensuring that each piano is a masterpiece tailored to the desires of its owner.

As a renowned piano company, Edelweiss Pianos has established itself as a pioneer in the industry, pushing the boundaries of what is possible in piano design and technology. With the launch of the piano configurator, the company is set to revolutionize the way people interact with pianos, providing a unique and personalized experience that is tailored to each individual’s needs and preferences. Whether you’re a musician, a music lover, or simply someone who appreciates the beauty of a well-crafted instrument, the Edelweiss Pianos configurator is an exciting development that is sure to impress.

Zuno General Insurance, backed by the Edelweiss Group, has reported a strong performance in the previous fiscal year, with a gross premium of approximately ₹1,000 crore. The company achieved a growth rate of 19%, outpacing the industry growth rate of 6%. Managing director and CEO Shanai Ghosh attributes this success to the company’s focus on innovation, experience, and efficiency. Zuno aims to maintain a growth trajectory of 2.5 to 3 times the industry rate, targeting a premium of around ₹1,250 crore in the current fiscal year.

Ghosh also discussed the company’s approach to the Insurance Regulatory and Development Authority of India’s (Irdai) expenses of management (EoM) guidelines. As a new insurer, Zuno is currently above the 30% EoM threshold, but the company is working to bring its expenses within regulatory limits. To achieve this, Zuno is adjusting its product mix to ensure that it stays within the EoM limits. The company is leveraging its asset-light and tech-first approach to keep fixed costs under control.

Zuno’s product mix is currently dominated by motor insurance, which accounts for around 58% of its portfolio. However, the company is deliberately diversifying its product offerings to reduce its dependence on motor insurance. Over the next three to four years, Zuno expects motor insurance to contribute around 40-45% of its portfolio, with health insurance accounting for 35-40%, and other segments such as commercial insurance making up the remaining 15-20%.

Despite projections of subdued vehicle sales, Ghosh is confident that Zuno can continue to grow at 2.5 to 3 times the industry rate. The company’s ability to grow in challenging markets, such as during the last fiscal year when the motor insurance industry premiums grew in single digits, demonstrates its resilience. Zuno’s focus on innovation, experience, and efficiency, combined with its carefully chosen product mix, is expected to drive growth and help the company achieve its target of breaking even in FY27. Overall, Zuno General Insurance is well-positioned to continue its upward trajectory and establish itself as a major player in the Indian general insurance market.

Edelweiss Mutual Fund CEO Radhika Gupta has emphasized the challenges of timing the markets, a task that proves difficult for both individual investors and experienced fund managers. In a post on social media platform X, Gupta questioned the predictability of recent market movements, citing the unpredictability of events such as geopolitical outcomes and trade deals. She pointed out that attempts to move in and out of the market based on such events often end in failure, as it is hard to accurately forecast market entry, exit, and re-entry points.

Gupta’s comments come at a time of significant market volatility, with sharp swings in the market driven by global economic signals and geopolitical developments. She noted that a substantial portion of annual returns can be attributed to just a few key trading days, which are inherently difficult to predict. This unpredictability underscores the challenges faced by investors trying to time their market entries and exits.

The CEO’s advice to investors is to adopt a long-term approach, staying invested and patient rather than trying to time the market. She humorously referred to this approach as suitable for “dumber” investors, implying that it is a simpler and more effective strategy than attempting to predict market fluctuations. Gupta’s comments resonate with the investment principle that timing the market is a futile endeavor, and that a well-diversified, long-term investment strategy is often the best approach for achieving financial goals.

By highlighting the difficulties of market timing, Gupta’s post serves as a reminder to investors to avoid making emotional decisions based on short-term market movements. Instead, they should focus on their long-term investment objectives and maintain a disciplined approach to investing. As market volatility is likely to continue, Gupta’s advice to stay invested and patient is a timely reminder of the importance of a well-thought-out investment strategy.

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.

Edelweiss Mutual Fund CEO Radhika Gupta has countered veteran fund manager S. Naren’s advice to exit the small and mid-cap segment, stating that a balanced approach with a long-term perspective is key to success. Naren had recently commented that small and mid-cap valuations were “absurd” and that investors should consider alternative options. Gupta took to social media to express her views, urging investors not to fall for fear mongering and instead focus on finding a good manager and holding on to investments for 10 years.

Gupta listed four key points for investors to consider: (1) a balanced portfolio with a mix of different asset classes, including mid and small caps, is essential; (2) returns from the top of the market cycle to the bottom may not be pleasant, but this is a normal part of the investment cycle; (3) liquidity is important, but can be managed; and (4) the key to making money is to hold on to Systematic Investment Plans (SIPs) for a long time, at least 10 years.

To support her argument, Gupta cited the performance of Edelweiss’ midcap fund, which has delivered a minimum return of 10% over rolling 10-year periods since its launch in 2007. She also noted that the fund has not delivered any negative returns over the past 10 years, with the minimum SIP return for the regular plan being 8%. Gupta concluded that these numbers are evidence that small and mid-cap investments can be a good option for investors with a long-term perspective.

Gupta’s comments are significant, as they offer a counterpoint to Naren’s views and provide reassurance to investors who may be considering exiting the small and mid-cap segment. By emphasizing the importance of a balanced approach and long-term perspective, Gupta is encouraging investors to take a more nuanced view of the market and not to make impulsive decisions based on short-term fluctuations. Overall, Gupta’s comments suggest that small and mid-cap investments can be a viable option for investors who are willing to take a long-term view and manage their risk effectively.

Edelweiss Financial Services Limited has announced a public issue of Secured Redeemable Non-Convertible Debentures (NCDs) worth up to ₹2,000 million. The issue will open on April 8, 2025, and close on April 24, 2025. The NCDs will have a face value of ₹1,000 each and will be offered in twelve different series with varying tenures, including 24 months, 36 months, 60 months, and 120 months. The interest rates on the NCDs will range from 9.50% per annum to 11.00% per annum, with options for annual, monthly, and cumulative interest payments.

The funds raised from the issue will be utilized primarily for the repayment or prepayment of existing borrowings, with at least 75% of the funds being used for this purpose. The remaining amount will be used for general corporate purposes, subject to a maximum of 25% of the issue amount. The NCDs have been rated “Crisil A+/Stable” by Crisil, indicating a stable outlook.

The lead managers for the issue are Trust Investment Advisors Private Limited, Nuvama Wealth Management Limited, and Tipsons Consultancy Services Private Limited. Nuvama Wealth Management Limited is an associate of the company and will be involved only in marketing the issue, as per regulatory requirements. The NCDs will be listed on the BSE Limited, providing liquidity to investors.

The issue is subject to the Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021, and the company will comply with all applicable regulations. The effective annual interest yield on the NCDs makes them an attractive investment option for those looking for fixed income returns. With a stable rating and a well-established company like Edelweiss Financial Services Limited, the issue is likely to generate significant interest from investors. Overall, the issue provides an opportunity for investors to invest in a secure and stable investment option with a reputable company.

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The Reserve Bank of India (RBI) has lifted the restrictions imposed on ECL Finance Limited and Edelweiss Asset Reconstruction Company Limited, both part of the Edelweiss Group, after the companies implemented remedial measures to address the concerns raised by the RBI. In May 2024, the RBI had imposed business restrictions on the two companies for violating regulatory norms. The restrictions were put in place due to “material concerns” arising from the conduct of the group entities, which were observed during supervisory examinations.

The RBI had directed ECL Finance to cease and desist from undertaking structured transactions, while Edelweiss Asset Reconstruction was told to stop acquiring financial assets and reorganizing security receipts. The concerns arose from the companies’ practice of entering into structured transactions to evergreen stressed exposures, which circumvented applicable rules. The RBI also found incorrect valuation of security receipts, submission of incorrect details to lenders, non-compliance with loan-to-value norms, and non-adherence to Know Your Customer (KYC) guidelines.

Additionally, the RBI found that ECL Finance was used as a conduit to circumvent regulations, allowing it to acquire loans from non-lender entities within the group for ultimate sale to the group’s asset reconstruction company. Edelweiss Asset Reconstruction was also found to have violated regulations, including not placing supervisory letters before the board, non-compliance with loan settlement regulations, and sharing non-public client information with group entities.

After examining the remedial measures put in place by the companies, the RBI has lifted the restrictions, allowing them to resume normal business operations. The lifting of restrictions is a positive development for the Edelweiss Group, which had been facing regulatory issues. The RBI’s action highlights the importance of compliance with regulatory norms and the need for companies to maintain transparency and integrity in their operations. The incident also serves as a reminder to financial institutions to ensure that they are adhering to all relevant regulations and guidelines to avoid similar restrictions in the future.