Edelweiss Mutual Fund Launches Edelweiss Low Duration Fund

Mumbai, March 12, 2025: Edelweiss Asset Management Limited, one of India’s fastest-growing AMCs, has announced the launch of the Edelweiss Low Duration Fund. The New Fund Offer (NFO) will be open for subscription from March 11 to 18, 2025. An open-ended low duration debt scheme investing in debt and money market instruments such that the Macaulay duration of the portfolio is between 6 – 12 months. A relatively high-interest rate risk and moderate credit risk.

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 to 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 ₹100, with additional investments in multiples of ₹1.

Commenting on the launch, Ms. 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 ₹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 ₹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 yieldsmaking it an opportune time for investors to consider low-duration strategies.

The scheme would be managed by Pranavi Kulkarni & Rahul Dedhia, Fund Manager, Edelweiss MF.