Edelweiss Asset Management Company has launched the first ever hybrid passive index fund which invests in the Edelweiss Nifty LargeMidcap250 and 8–13 yr G-Sec 70:30 Index Fund.
The new fund offer (NFO) opened for subscription on Wednesday.
The open-ended index scheme allocates 70 per cent to equities and 30 per cent 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.
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.
Radhika Gupta, MD & CEO, Edelweiss Asset Management Company, said the first hybrid passive product in India combines simplicity and innovation to solve a customer need that has remained unaddressed for decades.
With two powerful asset classes and a disciplined allocation framework, this fund can work across market cycles to deliver a smooth investing experience to investors, she said.
The equity component of the underlying index includes 250 companies across large and mid-cap segments. The debt component invests in government securities with residual maturities of 8–13 years, which historically have provided stability and diversification benefits, she said.