Edelweiss Nifty Bank ETF NFO: Review, Date & NAV

Edelweiss Nifty Bank ETF: Complete Overview

Edelweiss Mutual Fund launches the Edelweiss Nifty Bank ETF under its AMC Edelweiss Asset Management Limited. It is an open-ended exchange traded scheme that replicates and tracks the Nifty Bank Total Return Index. 

The New Fund Offer or NFO date is from September 03 to September 06, 2024, with an NFO price of Rs.5000 and in multiples of Rs.1 thereafter.Today at the Edelweiss Nifty Bank ETF NFO Fund, we're dedicated to providing you with useful information on this New NFO, including financial characteristics and prior performance if any.

Edelweiss Nifty Bank ETF NFO Details

• The scheme is suitable for investors who want to achieve long-term wealth gain and returns that correspond to the Nifty Bank Total Return index's performance subject to tracking errors.

• The scheme is a very high-risk scheme. There is no assurance that the scheme's investment goal will be met.

• The scheme will invest 95-100% of its units in Securities covered by the Nifty Bank index and 0-5% in Money Market Instruments including cash and cash equivalent or units of Liquid scheme. 

• Keep reading to learn about the latest trends, insights, and news of this NFO Mutual Fund.

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Fund Overview

The Edelweiss Nifty Bank ETF NFO minimum subscription amount is Rs.5000 and in multiples of Rs.1 thereof.

How To Invest In The NFO After The Closure Date?

If you have missed participating in the NFO and now want to invest in the same Scheme on a continuous basis, then on or before 19 September 2024, when the Scheme will reopen; you will have the option to participate and invest directly in the Mutual Fund by spending at NAV based price by logging on to your Demat account and search for “Edelweiss Nifty Bank ETF” or directly with the AMC or simply click the ‘Banner’ below.

The Objective of The Fund

The Scheme aims to deliver returns before costs in line with the Nifty Bank Total Return Index's total returns, subject to tracking error. Nevertheless, there can be no assurance or guarantee that the scheme's investment goals will be met.

Asset Allocation (% of Total Assets) of the Scheme's portfolio will be as follows:

Peers of Edelweiss Nifty Bank ETF

Since this scheme is a new scheme, hence no comparable data on its past performance against its peers is available.

Risk Factors In Such Funds

• To achieve returns that are comparable to the overall returns reflected by the Nifty Bank Index, Edelweiss Nifty Bank ETF will invest a minimum of 95% of its corpus in securities that represent the Nifty Bank Index. There will be minimal cash or debt/money market investments in the scheme. As a result, the program is not very vulnerable to hazards related to the debt or money markets.

• The Scheme won't be actively managed because it plans to invest at least 95% of its net assets in benchmark index securities.

• The scheme's success will be directly impacted by the Nifty Bank TRI's performance. Therefore, any modification in composition due to weighting or stock selection will affect the scheme.

• The purpose of tracking error and tracking difference is to quantify how much the fund's portfolio's performance (return) deviates from the underlying index's. Any index fund has tracking error or tracking difference, which can lead to schemes producing returns that are out of line with the Nifty Bank Index's performance or the performance of one or more securities that are included in or covered by the Nifty Bank Index.

Past Performance of Index Funds

Edelweiss Nifty Bank ETF NFO-Who Can Invest?

This Fund is ideal for those who want to achieve long-term wealth gain and returns that correspond to the Nifty Bank Total Return index's performance subject to tracking errors. 

Edelweiss Nifty Bank ETF-Growth Fund Managers:

• Mr. Bhavesh Jain.

Conclusion

The Edelweiss Nifty Bank ETF is appropriate for investors who are high risk-tolerant and aiming for capital maturity over a long horizon in an equity scheme that is subject to tracking errors corresponding to the Nifty Bank Total Return index's performance Always assess your Financial Goals, Risk tolerance, time horizons, etc. before making an investment decision. 

Disclaimer: This NFO analysis is provided solely for informative reasons and should not be construed as investment advice. Always conduct research and talk with a financial advisor before investing.