Edelweiss Low Duration Fund – Direct (G) : NFO Details

The Edelweiss Low Duration Fund was introduced by Edelweiss Asset Management Limited.  Subscriptions for the New Fund Offer (NFO) will be accepted from March 11 through March 18, 2025. It is an open-ended low-duration debt plan with the primary goal of making money through investments in money market securities and low-duration debt.  

In order to maintain a balance between stability and returns, the fund will actively manage a premium portfolio with a Macaulay term ranging from six to twelve months. The product, which has low to moderate risk, is appropriate for investors who want to invest in debt and money market instruments in order to generate income in the near future. Additional investments are made in multiples of ₹1, with a minimum investment of Rs 100.

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Details of the NFO: Edelweiss Low Duration Fund – Direct (G)

Investment Objective and Strategy

Objective:

The primary objective of the Scheme is to generate income through investment primarily in low duration debt & money market securities. There is no assurance or guarantee that the investment objective of the scheme will be achieved.

Investment Strategy:

Subject to the SEBI Regulations, investment objective and the asset allocation pattern mentioned above, the Scheme may invest in various types of instruments including, but not limited to, any of the following:

a) Securities issued, guaranteed or supported by the Central Government or any state government and/or repos/reverse repos in such Government Securities as may be permitted by RBI (including but not limited to coupon  bearing  bonds,  zero  coupon  bonds  and  treasury  bills). Such securities could be fixed rate, fixed interest rate with put/call option, zero coupon bond, floating rate bonds, capital indexed bonds, fixed interest security with staggered maturity payment etc.

b) Securities issued by any domestic government agencies, quasi-government or statutory bodies, Public Sector Undertakings, which may or may not be guaranteed or supported by the Central Government or any state government.

c) Domestic non-convertible securities as well as non-convertible portion of convertible securities, such as debentures, coupon bearing bonds, zero coupon bonds, deep discount bonds, Mibor-linked or other floating rate instruments, premium notes and other debt securities or obligations of public sector undertakings,banks, financial institutions, corporations, companies and any other entities as may be permitted by SEBI / RBI from time to time

d) Domestic securitised debt, pass through obligations, various types of securitisation issuances including but not limited to Asset  Backed Securitisation, Mortgage Backed Securitisation, single loan securitisation and other domestic securitisation instruments, and so on as may be permitted by SEBI from time to time.

e) Domestic Commercial Paper (CP), Certificate of Deposits (CD), Bills Rediscounting, CBLO, Repo, Reverse Repo, Treasury Bills, Tri-party Repo and other Money Market Instruments as may be permitted by SEBI / RBI from time to time.

f) Domestic derivatives including Interest Rate Futures, Interest rate swaps, imperfect hedging and other derivative instruments are permitted by SEBI from time to time

g) Deposits with domestic banks and other bodies corporate as may be permitted by SEBI from time to time

h) Repo of corporate debt securities

i) Debt Instruments with Credit Enhancement / structured obligations

j) Floating rate debt instruments issued by Central Government, corporates, PSUs etc. with coupon reset periodically. The Fund Manager will have the flexibility to invest the debt component into floating rate debt securities to reduce the impact of rising interest rate in the economy.

k)Units of Corporate Debt Market Development Fund 

l)Any  other  domestic  debt  and  money  market  instruments  that  may  be  available  or  evolve  with  the development of the securities markets and as may be permitted by SEBI from time to time.