Edelweiss AMC files with SEBI for a small cap fundEdelweiss AMC has filed papers with SEBI for a small cap fund. The fund will invest 65%-100% of its assets in companies below the top 250 companies by market cap. It can invest the balance 0-35% in larger companies or in debt. The fund will be open-ended, meaning that you can invest on any business day once the fund is launched.

After delivering a stellar performance over the past 3-5 years, small cap funds have slowed down dramatically in the past year. On average the category has returned just 1.78% over the past year.

Harshad Patwardhan who is the Chief Investment Officer (Equities) at Edelweiss will manage this fund. Mr Patwardhan also manages Edelweiss Large and Midcap Fund, Edelweiss Multicap Fund, Edelweiss Tax Advantage Fund, Midcap Fund and Long Term Equity Fund.

Here is a brief look at their track record:

Fund Fund 3 yr return Benchmark 3 yr return Outperform?
Edelweiss Large and Midcap 9.77% 10.26% No
Edelweiss Multicap 11.53% 10.61% Yes
Edelweiss Tax Advantage 8.08% 10.26% No
Edelweiss Midcap 11.22% 12.05% No
Edelweiss Long Term Equity 7.24% 10.61% No

RupeeIQ Take:

It is usually better to invest in a fund with a proven track record than a wholly new fund. Also, the performance of other Edelweiss equity funds does not inspire sufficient confidence to invest in an untested new scheme of the AMC.

Key Details:

Options: Growth, Dividend Payout, Dividend Reinvestment and Dividend Sweep

Benchmark: Nifty Small Cap 250

Fund Manager: Harshad Patwardhan

Neil Borate

Neil Borate is Deputy Editor, RupeeIQ. He can be contacted at neil@rupeeiq.com.