Kolkata: Edelweiss one of the prominent asset management companies of India has launched the NFO of an BSE Internet Economy Index Fund. the NFO has opened for subscription on Friday, April 25 and will be open for investment till May 9, 2025. According to the product literature, the fund would invest in a wide array of stocks that straddle 11 sub-industries. These include e-retail, internet and catalogue retail, e-learning, digital entertainment, financial technologies and other digitally driven sectors. This is a passive index fund. Incidentally, index funds was a category which witnessed the highest number of new fund launches in 2024.
The investment objective of the scheme, as stated by the Edelweiss management, is to “provide returns before expenses that closely correspond to the total returns of BSE Internet Economy Total Return Index, subject to tracking errors”. However, there is no guarantee that the investment objective of the scheme will be achieved. Therefore, it is necessary that an investor consults a qualified personal finance advisor before committing his/her hard-earned money.
Who is it suitable for?
According to the management of the AMC, Edelweiss BSE Internet Economy Index Fund is suitable for those investors who want to participate in India’s next wave of structural growth driven by digital adoption, rising internet penetration, and platform-based consumption. It is suited for those investors with a long-term investment horizon and a high-risk appetite. But they have to be comfortable with market volatility and they must try to benefit from the potential upside in emerging, innovation-led sectors.
India’s digital economy is growing at a rate that is four times faster than the GDP of the country and the digital economy is expected to register transformative growth, said Radhika Gupta, managing director and CEO of Edelweiss Mutual Fund.
Stock selection strategy
According to the product literature, the stocks where this fund will invets in are from the BSE 500 Index. The eligible stocks will be ranked based on average 6-month daily float-adjusted market capitalisation and the top 20 companies will be selected. There will be a cap of 15% on individual stock weight which will be applied at the end of each quarter. A maximum of three stocks from 11 industries will be selected making it a maximum of 33 stocks. These sub-industries are E-Retail/E-Commerce, Internet & Catalogue Retail, E-Learning, Digital Entertainment, Exchange and Data Platform, Depositories, Clearing Houses and Other Intermediaries such as Financial Technology, Telecom (Cellular and Fixed line services) etc.
Features at a glance
Nature of fund: Passive index
NFO opening date: April 25, 2025
NFO closing date: May 9, 2025
Minimum investment: Rs 100 and thereafter in multiples of Re 1
Exit load: 0.1% (if redeemed in less than 30 days from allotment)
Nil (if redeemed after 30 days from allotment)
Fund manager: Bharat Lahoti and Bhavesh Jain
Risk: Very high
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, precious metals, commodity, any form of alternative investment instruments and crypto assets.)
The internet economy fund is the country’s first such fund that has been designed to tap the gains of a wide variety of sectors, the common thread running through which is the fact that they are all digitally driven. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
