Edelweiss 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 Tax Advantage||8.08%||10.26%||No|
|Edelweiss Long Term Equity||7.24%||10.61%||No|
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.
Options: Growth, Dividend Payout, Dividend Reinvestment and Dividend Sweep
Benchmark: Nifty Small Cap 250
Fund Manager: Harshad Patwardhan