Edelweiss Mutual Fund Launches Altiva Equity ExTop 100 LongShort Fund For SMID Investing

Edelweiss Mutual Fund has announced the launch of Altiva Equity Ex-Top 100 Long-Short Fund. Notably, this is the second offering under the Altiva Specialised Investment Fund (SIF) platform. Earlier this year, the fundhouse also launched the Altiva Equity Long-Short Fund.

The fund is benchmarked to the Nifty 500 TRI. Investors can invest in the scheme via the direct, regular, growth and Income Distribution cum Capital Withdrawal (IDCW) plans. Investors can invest in the fund via lump sum, SIP, SWP, and STP options.

Radhika Gupta, MD & CEO, Edelweiss Mutual Fund, spoke about the launch of the new scheme and said that the new fund aims to focus on creating a portfolio of high-conviction investing ideas.

"Altiva Equity ex Top 100 is predominantly a long-only strategy designed to capture long-term alpha through a high-conviction small and midcap portfolio. Backed by our strong track record in managing mid and small-cap funds and deep bottom-up stock research, this offering will focus on building a focused portfolio of high-conviction ideas,” Gupta said in a release.

The subscription window for the New Fund Offer (NFO) opened today, May 18 and will close on June 1. The fund seeks to offer returns by investing across mid- and small-cap companies (ranked 101–750 by market capitalisation). By investing in these stocks, the fund seeks to tap into emerging growth opportunities.

The scheme offers exposure to a predominantly long-only, sector-agnostic strategy comprising 35 to 45 high conviction, ‘bottom-up ideas’ from the Small and Mid-Cap (SMID) universe. The company mentioned in the release that SMIDs have historically been led by high-growth sectors, which offer relatively more alpha beyond large caps. Alpha refers to a key metric which measures a fund's performance in comparison to a benchmark index like the Nifty 50.

Trideep Bhattacharya, Chief Investment Officer, Equities, Edelweiss Mutual Fund and Nikhil Gada, Senior Vice President, Edelweiss Mutual Fund, will manage the fund. Speaking on the new launch, Bhattacharya said that the new scheme seeks to offer opportunities to investors amid corrections in the SMID space.

“The ex-Top 100 strategy, focused on small and midcaps, opens opportunity to a broader universe of companies across sectors that are largely absent in the large-cap space. It represents a fertile ground for high-growth businesses that are yet to be fully discovered by the market and have the potential to generate meaningful alpha. With the recent correction in SMID valuations, the strategy offers an attractive entry opportunity for investors," Bhattacharya said in the release.

The minimum application amount for new Altiva SIF Investors is Rs 10 lakh, and the minimum investing application amount for existing Altiva SIF Investors is Rs 1000 and in multiples of Re.1 thereafter. The units of the fund are being issued at a face value of Rs 10 each.

Edelweiss Mutual Fund will charge an exit load of 0.50 per cent for units redeemed or switched out on or before three months from the date of allotment. The company mentioned that no exit load will be charged if units are redeemed or switched out after three months from the date of allotment.