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It is not surprising that mutual funds, especially equity mutual funds, recorded a steep jump in monthly inflows for July 2021. The trend of positive inflows into equity mutual funds has continued for the fifth consecutive month.

The Amfi data shows that the equity-oriented mutual fund schemes witnessed a net inflow of Rs 22,583.52 crores in July 2021. The market experts attribute this trend towards heavyweight new fund offers (NFOs) that has played a critical role in mobilising fresh inflows.

Also, larger companies are better placed in Covid-19 induced macro uncertainty boosting the confidence of the fund houses to venture out and introduced new products. The covid-19 has augmented a wealth category, i.e., passive investments, which has become popular amongst retail investors.

Just recently, Edelweiss mutual fund filed a draft with the Sebi its plan to launch Edelweiss Large & Midcap Index Fund. The scheme is an open-ended equity scheme that replicates the Nifty LargeMidcap 250 total return index.

Investment strategy

The fund will invest in a passive investment strategy in equity and equity-related securities replicating the composition of the Nifty Large Midcap 250 Index, subject to tracking errors. The fund would be managed by Bhavesh Jain.

What investors should know

-This product is suitable for investors who are seeking long-term capital appreciation.

-The maximum total expense ratio (TER) permissible by Sebi is up to 1%.

-There is no entry load; however, AMC reserves the right to revise the load structure from time to time.

-The fund carries a very high risk, and therefore the investors should consult their financial advisers to check the product suitability.

-Minimum investment amount starts from Rs 5,000 and multiples of Rs 1 thereafter.

-The scheme offers a regular plan as well as a direct plan

-Since this is a draft, it is subject to change, and the fund house will soon be announcing the dates for NFO.