Edelweiss Asset Management Limited has announced the launch of their Edelweiss Low Duration Fund. The New Fund Offer (NFO) will be open for subscription from March 11 to March 18, 2025.
It is an open-ended low duration debt scheme and the investment objective of the scheme is to generate income by primarily investing in low-duration debt and money market securities. The fund will actively manage a high-quality portfolio with a Macaulay duration between 6 and 12 months, ensuring a balance between stability and returns.
With low to moderate risk, the product is suitable for investors seeking income over the short-term through investment in debt and money market instruments. The minimum investment amount is Rs 100, with additional investments in multiples of Rs 1.
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Commenting on the launch of the fund, Radhika Gupta, Managing Director & CEO, Edelweiss Mutual Fund, said, “The Edelweiss Low Duration Fund is designed to cater to both individual and institutional investors, offering a short-term investment option with low to moderate risk. The recent tax slab revisions have made such debt mutual funds tax-efficient for retail investors, as they will not have to pay capital gains tax if their total annual income, including such gains, remains within Rs 12 lakh, as there is a rebate available under the new tax regime.”
Investor interest in low-duration funds has been on the rise, with the category witnessing net inflows of Rs 6,618 crore in the last six months. The Reserve Bank of India (RBI) is predicted to inject more liquidity into the banking system by cutting policy rates further and paying a healthy dividend to the government, which in turn is expected to increase its spending from April 2025. The RBI is further expected to purchase bonds in FY26 through Open Market Operations. These moves should ideally result in the gradual easing of short-term yields, making it an opportune time for investors to consider low-duration strategies.
The scheme would be managed by Pranavi Kulkarni and Rahul Dedhia, Fund Manager, Edelweiss MF.