Edelweiss Arbitrage Fund pauses AUM collection to maintain high quality investment performance

Edelweiss AMC, one of the fastest growing AMCs in the country, and the Mutual Fund arm of Edelweiss Group, has been managing Edelweiss Arbitrage Fund, which has delivered high quality performance since its inception.

May 07, 2016 09:05 IST India Infoline News Service

Edelweiss AMC, one of the fastest growing AMCs in the country, and the Mutual Fund arm of Edelweiss Group, has been managing Edelweiss Arbitrage Fund, which has delivered high quality performance since its inception.

To ensure the consistently impressive performance, it has announced that it would restrict collections in Edelweiss Arbitrage Fund effective May 11, 2016.

The scheme, which has already collected over Rs 1300 crores across the country, will however continue to accept applications of up to Rs 2 lakhs beyond this period.

Launched on June 27, 2014, Edelweiss Arbitrage Fund has given compounded annualized returns of 7.92% (as on 5th May 2016) since inception, consistently performing well in its category. It has consistently beaten its benchmark index.

Managed by Mr. Bhavesh Jain and Mr. Kartik Soral, Edelweiss Arbitrage Fund seeks to generate income by predominantly investing in arbitrage opportunities in the cash and derivative segments of the equity markets and the arbitrage opportunities available within the derivative segment, and by investing the balance in debt and money market instruments.

Talking about investor response to the fund, Vikaas M Sachdeva, CEO, Edelweiss AMC said, “At Edelweiss, we have core strengths in terms of arbitrage strategies which have delivered a high degree of consistency in terms of returns and quality of the portfolio. It has found strong draw amongst clients and distributors.

However, we believe that in the interests of the customer, we need to stick to a reasonable sized corpus if we have to maintain the quality of performance. In the future, we may re-open subscription for fresh investments, after careful assessment of the market conditions and only if we are certain of delivering optimal returns to new, as well as existing investors.”

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