70% equity + 30% G-sec: Eldelweiss AMC launches India's first hybrid passive index fund; key details

Edelweiss Asset Management Company (AMC) has announced the launch of the Edelweiss Nifty LargeMidcap250 Plus 8–13 yr G-Sec 70:30 Index Fund, which is India’s first hybrid passive index fund. The scheme combines equity and government securities within a single rule-based structure.

The New Fund Offer (NFO) of the scheme opened for subscription from Wednesday, March 18 to April 1, 2026.

Here are key details of the scheme that you should know:

The open-ended index scheme seeks to replicate the Nifty LargeMidcap250 Plus 8–13 yr G-Sec 70:30 Index, which allocates 70% to equities and 30% to government securities.

The equity component tracks the Nifty LargeMidcap250 Index, while the debt portion tracks the Nifty 8–13 yr G-Sec Index, creating a portfolio that combines broad equity exposure with the relative stability of sovereign bonds.

In a press release, the AMC said that the launch of this hybrid scheme comes as the passive investing landscape in India continues to evolve, with regulators enabling new categories of index-based investment strategies.

"Hybrid passive funds have recently become possible following regulatory approvals and the development of eligible debt indices that meet the required market depth and scale," it said.

Radhika Gupta, MD & CEO, Edelweiss AMC said, "The Edelweiss Nifty LargeMidcap250 Plus 8–13 yr G-Sec 70:30 Index Fund is the first hybrid passive product in India, combining simplicity and innovation to solve a customer need that has remained unaddressed for decades."

She further said that the passive funds segment is growing tremendously in India, and "we believe this category will add new feathers to the passive solutions available for investors."

"With two powerful asset classes and a disciplined allocation framework, this fund can work across market cycles to deliver a smoother investing experience for many investors," Gupta added.

Asset allocation

The equity component of the underlying index includes 250 companies across large and mid-cap segments, representing a significant share of India’s free-float market capitalisation. The debt component invests in government securities with maturities of 8–13 years, which historically have provided stability and diversification benefits.

Under the indicative asset allocation, the scheme will predominantly invest in securities comprising the Nifty LargeMidcap250 Plus 8–13 yr G-Sec 70:30 Index, including equity and equity-related instruments forming part of the Nifty LargeMidcap250 Index and government securities forming part of the Nifty 8–13 yr G-Sec Index, subject to tracking error.

The scheme will be managed by Bhavesh Jain and Bharat Lahoti for the equity portion, and Dhawal Dalal and Hetul Raval for the debt portion.

"The scheme is suitable for investors seeking long-term capital appreciation through diversified equity exposure along with the relative stability of government securities, and who are comfortable with market-linked returns. The scheme is classified under the Very High-Risk category," the AMC said.