Edelweiss Multi Asset Omni Fund of Fund: 7 points to know about the upcoming FoF

Edelweiss Mutual Fund has filed the draft document with SEBI for its new fund of funds scheme: Edelweiss Multi Asset Omni Fund of Fund, an open-ended scheme that will invest in a diversified mix of equity-oriented schemes and gold and silver exchange-traded funds (ETFs). Let’s look at seven key points of the upcoming scheme.

Fund category and structure

This fund is categorised as a Hybrid Fund of Funds – Active and Passive Multi Asset Allocation FoF. It is an open-ended fund of funds and will allocate its assets across equity, debt, and gold and silver ETFs.

Note: This FoF will not invest in derivatives, overseas securities, REITs or structured obligations. Additionally, it will not engage in securities lending or short selling.

The fund aims to generate capital appreciation and income by allocating across asset classes and combining both active and passive strategies. It also offers several facilities like Systematic Investment Plan, Systematic Withdrawal Plan, and Systematic Transfer Plan.

Asset allocation

• 95-100% in domestic equity-oriented schemes, debt-oriented schemes, and gold and silver ETFs

• Up to 5% in cash equivalents and money market instruments

Investment plans

Investors can choose between a regular plan and a direct plan. Each plan offers growth and Income Distribution cum Capital Withdrawal (IDCW) options. The IDCW has reinvestment, payout, and transfer facilities.

In case an investor doesn’t specify, the default option will be growth with the IDCW Reinvestment facility.

Performance benchmark

The performance benchmark is a blended index that includes:

• 65% Nifty500 Total Return Index (TRI)
• 15% Crisil Composite Bond Fund Index
• 10% Domestic Gold Price
• 10% Domestic Silver Price

This mix is to ensure diversified exposure across various asset classes.

Minimum investment

During the NFO period, and after the NFO:

• Lump sum and switch-in: Minimum ₹100 and in multiples of ₹1 thereafter
• SIP, SWP, and STP: Minimum ₹100 and in multiples of ₹1 thereafter

Exit load

In this fund, the exit load is 1% if the units are redeemed/switched out on or before 90 days from allotment. After 90 days, there will be no exit load.

Who may invest in this fund?

This scheme may be suitable for those seeking long-term gains and who have high risk tolerance. Investors who wish for diversified exposure to equity, debt, and precious metals (gold and silver) through a single FoF may consider investing in this fund. However, investors must read and understand all the important details of the scheme before investing in it.