Edelweiss Mutual Fund launches Capital Markets & Insurance ETF
Edelweiss Mutual Fund / Asset Management Company Ltd has announced the launch of Edelweiss BSE Capital Markets & Insurance Exchange Traded Fund.
The New Fund Offer (NFO) will be open for subscription from December 10 to 24, 2024. (Image: Freepik)
Edelweiss Mutual Fund / Asset Management Company Ltd (EMF / EAMC) has announced the launch of its ‘Edelweiss BSE Capital Markets & Insurance Exchange Traded Fund (ETF)’. This open-ended exchange-traded scheme is designed to replicate and track the BSE Capital Markets & Insurance Total Return Index.
The ETF, the first of its kind in India, aims to capitalise on the mega trend of investing and wealth creation combined with insurance sector. The New Fund Offer (NFO) will be open for subscription from December 10 to 24, 2024.
Radhika Gupta, MD & CEO, Edelweiss Mutual Fund, said, “At Edelweiss, we believe in identifying and capitalising on mega trends through innovative product offerings. With this vision, we are excited to launch an innovative ETF that captures the mega trend of the financialisation of savings by Indians. This ETF is the first in a series of thematic ETFs we plan to roll out in the coming months, each designed to capture key mega trends driving India’s growth story as it moves towards becoming Viksit Bharat by 2047.”
“The ETF market is at an inflection point, and we aim to be at the forefront of this evolution, offering investors products that are not only innovative but also meaningful for wealth creation and diversification,” she added.
EAM believes that India’s capital markets and insurance sectors have witnessed significant growth during FY 2023-24 & seeks to capture the momentum with its BSE Capital Markets & Insurance ETF. The fund’s diversified portfolio is divided between capital markets (47.21%) & insurance (52.79%). The portfolio comprises capital market firms, life insurance, general insurance, & distributors of financial products.
Notable constituents include HDFC AMC, Angel One, Multi Commodity Exchange Of India (MCX), Anand Rathi Wealth, SBI Life Insurance, ICICI Lombard, and ICICI Securities. All the stocks constituting the ETF will be a part of the BSE 500 Index.
The maximum constituents are capped at 30. The eligible stocks will be ranked basis their average 6-Month daily float-adjusted market capitalisation figures. The ETF will be reconstituted semi-annually in June & December & rebalanced quarterly for optimal performance.
