Edelweiss Mutual Fund has converted its two ETFs into index funds. With this, the Edelweiss Nifty 100 Quality 30 ETF and Edelweiss Nifty 50 ETF will get delisted from exchanges on October 1, 2021. The index funds will be available for transactions from October 7.
Sharing the rationale behind the move, the fund house said the conversion will benefit investors by way of easy liquidity and reduction in costs on transactions. "Considering the AUM of the scheme and ETF units have not been traded for many days on the exchange, it is considered prudent to convert the ETF into index fund to provide more liquidity to investors," the fund house said in a communication issued to unitholders.
Investors have the option to redeem their investments without any exit load till October 5. Those choosing to stay invested will receive units in converted index funds.
The number of units an investor will receive will depend on the NAV of the ETF one day prior to the effective date of conversion.
As on August 26, the Nifty 50 ETF managed an AUM of Rs 2.67 crore and 140 folios. The Nifty 100 Quality 30 ETF was managing assets worth Rs 10.74 crore.
