Page 16 - Banking Finance December 2021

MUTUAL FUND

Mutual Fund

News

Edelweiss Mutual Fund ment and provides meaningful expo- has now put it on the backburner due
sure to promising mid-cap stocks. to uncertainty around rules on
launches large- and mid- cryptocurrency investments in India.
"Index funds are gaining popularity,
cap index scheme more so due to simplicity of the prod- A Fund of Fund invests in other
Edelweiss Asset Management Ltd an- uct. They are easy to track and don't schemes. Invesco's blockchain fund is
nounced the launch of an open-ended need frequent reviews. This product is structured to invest in an Ireland-do-
equity scheme that replicates Nifty based on very unique Nifty Large miciled ETF (exchange traded fund),
LargeMidcap 250 Index. This is the first Midcap 250 Index which balances its which bet on listed equities of compa-
index fund to be launched on Nifty exposure to large-caps and mid-caps in nies in developed and emerging mar-
LargeMidcap 250 Index, which pro- one portfolio," said Radhika Gupta, kets that participate in the blockchain
vides equal exposure to large- and mid- managing director and chief executive ecosystem. The fund had got approval
cap stocks in one portfolio, according officer, Edelweiss Asset Management. from markets regulator SEBI.
to the fund house.
"Complementing active funds in one's "From the developments of the last
The index will allocate to the 100 portfolio, the fund is an apt solution for few days, Indian lawmakers have been
large-cap stocks, represented by es- do-it-yourself (DIY) and first-time inves- meeting participants in the country's
tablished companies in the Nifty 100 tors for their core investment alloca- digital assets industry, which will likely
Index and 150 mid-cap stocks, repre- tion. This fund is likely to create endur- culminate in a new legislative frame-
sented by emerging and high growth ing value in the long run for Inves- work being formulated," said Invesco
companies in the Nifty midcap 150 In- tors," she added. Mutual Fund in a release. "In light of
dex. the above, we believe it is important
for investors to fully understand all as-
The asset management in a note ac- Invesco Mutual Fund puts
knowledged that the scheme may gen- pects before making long term invest-
erate low to negative returns in the Blockchain fund launch on ment decisions."
short term, meaning that investors hold The fund launch had caught the atten-
may have to remain invested for five- tion of several investors, who perceived
Invesco Mutual Fund has put on hold
seven years to gain meaningful returns. the launch of its blockchain fund in In- it to be a legitimate way to take expo-
sure to cryptocurrency. Analysts said
Additionally, the asset management dia-the first of its kind here. The fund
the scheme would have received huge
company believes that the equal house planned to launch Invesco India
subscriptions.
weight to large-caps and mid-caps re- - Invesco CoinShares Global Blockchain
duces skew to any one market cap seg- ETF Fund of Fund on November 24 but "There was a likelihood that the fund

16 | 2021 | DECEMBER | BANKING FINANCE