Edelweiss Maiden Opportunities Fund

The fund focuses on long-term investing with a focus on the high growth sector or companies with a significant competitive advantage over their peers. For example, as of 5^th September 2021, their portfolio holds Zomato Ltd and Dixon Technologies (India) Ltd among similar names.

Fund in Brief

The Edelweiss Maiden Opportunities Fund was started on 22^nd February 2018. On 29^th June 2021, it was changed to Edelweiss Recently Listed IPO Fund. This fund has performed efficiently for more than three years.

This fund offers two types of plans:

• Edelweiss Maiden Opportunities Fund Regular-Growth
• Edelweiss Maiden Opportunities Fund Direct-Growth

The two plans do not have any major difference, except you have to pay a commission to your mutual fund broker or distributor in the regular plan. This commission increases the expense ratio, which may cause a difference in the returns between the two plans.

The expense ratio for the regular plan is 2.43% and the direct plan is 1.23%.

Edelweiss Maiden Opportunities Fund Facts

Investment Objective

The fund's main objective is to generate the maximum possible return for its investors by investing in recently listed or upcoming IPOs. However, there is no guarantee of the promised returns. This fund has a long-term vision and invests in companies whose business will last long term. 

The fund’s goal is to invest in the equity market. The fund managers analyze the global and local markets to understand the nature of the businesses and the demand for particular products or services. It takes a high-risk approach towards their investments despite which it has gained consistently good returns. 

Fund Summary

1. Edelweiss Maiden Opportunities Fund regular-growth: 

   • AUM - Rs 596 Cr. (as of 5^th September 2021)
   • Risk – Very High
   • Exit load – 2% if redeemed before 6 months
   • Expense ratio – 2.43%
   • 1 Year Return – 77.85 (as of 5^th September 2021)
   • CAGR since inception – 20.7% (as of 5^th September 2021)
   • Lock-in period – No lock-in period
   • Fund managers are - Bhavesh Jain and Bharat Lahoti

2. Edelweiss Maiden Opportunities Fund direct-growth:

   • AUM - Rs 596 Cr. (as of 5^th September 2021)
   • Risk – Very High
   • Exit load - 2% if redeemed before 6 months
   • Expense ratio – 1.23%
   • 1 Year return – 78.44% (as of 5^th September 2021)
   • CAGR since inception – 21.27% (as of 5^th September 2021)
   • Lock-in period – No lock-in period
   • Fund managers are - Bhavesh Jain and Bharat Lahoti

Fund Return Summary

1. Edelweiss Maiden Opportunities Fund Direct-Growth (as of 5^th September 2021)

   Tenure	Percentage return
   1 year	78.44%
   3 years (CAGR)	26.82%
   CAGR Since inception	21.27%

   *Returns are subject to change.

   *The investment risk in the investment portfolio is borne by the policyholder.

2. Edelweiss Maiden Opportunities Fund Regular-Growth (as of 5^th September 2021)

   Tenure	Percentage return
   1 year	77.85%
   3 years (CAGR)	26.34%
   CAGR Since inception	20.7%

   *Returns are subject to change.

   *The investment risk in the investment portfolio is borne by the policyholder.

Pros and Cons

While the fund offers multiple advantages, it has a couple of limitations as well. Listed below are such pros and cons:

Benefits of The Edelweiss Maiden Opportunities Fund

The following points explain the benefits of the Edelweiss Maiden Opportunities Fund: 

• Growth investing strategy: The investment strategy of this fund is ‘growth investing’. They focus on companies that are early in their growth stage to ensure higher returns.
• Equity exposure: Every investor has to have some exposure in either equity or debt markets to grow their investments. Investments in equity funds ensure higher returns and help beat inflation.
• IPOs: Since the IPOs are allotted using a lottery system, most people applying individually do not always procure the shares. Edelweiss Maiden Opportunities Fund helps address this issue and offer better investment opportunities to yield higher returns.
• High Risk: Although the fund falls under a high-risk category, it yields better returns than most other funds for its investors. It has delivered results like 78.44% (Direct) and 77.85% (Regular) in one year. However, the same returns are not guaranteed each year.
• Long-term: The fund managers and the investors both have a long-term vision. And only with long-term investing for 7 to 10 years can the actual massive compounding effect be seen. And the fund invests in companies that also have a long-term vision.

Fund House Details

The Edelweiss Recently Listed IPO Fund is offered by Edelweiss Mutual Fund and Edelweiss Asset Management Ltd. As of 2021, Edelweiss Asset Management Ltd manages over Rs 50,000 Cr worth assets for its investors. Ms Radhika Gupta is the managing director and CEO of Edelweiss Asset Management Ltd. She is a pioneer in investing and money management. Bhavesh Jain and Bharat Lahoti have managed the Edelweiss Maiden Opportunities Fund since its inception.

Mr Lahoti is a B.E. (Electronics & Communication) from Mumbai University and MMS (Finance) from N L Dalmia Institute of Management Studies and has 13 years of experience. Mr Jain is an MMS (Finance) from Mumbai University and has more than 11 years of experience.

Who Should Invest in The Edelweiss Maiden Opportunities Fund?

The investors who should invest in this fund are:

• Investors who have a long-term investment horizon, suitably 7-10 years
• Investors who have a high-risk appetite and understands the risk involved in these types of funds
• Investors who want to invest in rapidly growing companies or companies which are early in their growth phase
• Investors who wish to invest in IPOs which are already listed or are going to be listed

In Conclusion

The main objective of this fund is capital appreciation by investing in companies (especially IPOs). Since it is a high-risk scheme, the fund managers are generally aggressive with their investments to gain high returns. This scheme is suitable for investors who have a high-risk appetite and can stay put for more than five years.

FAQ's