Edelweiss Mutual Fund is launching a new fund offer (NFO) of a small-cap fund, the Edelweiss Small Cap Fund, with an added feature called Smart Trigger-enabled Plan (STeP). As the name suggests, the fund will invest in the small-cap segment of the market and the STeP facility will enable investors to stagger their investments into the market over a period of time as a way to deal with volatility and to reduce timing risks.
What is it?
The Edelweiss Small Cap fund will invest at least 65% of the corpus in small-cap companies. These are companies that when ranked on the basis of full market capitalisation fall below the 250th rank. The fund can also take exposure of up to 35% in large- and mid-cap stocks or debt and money market instruments.