Edelweiss Multi Cap Fund opens for subscription: Should you invest?

For lump sum investments, the minimum amount is Rs 5,000, with multiples of Re 1 thereafter. For Systematic Investment Plans (SIP), the minimum investment is Rs 100, also in multiples of Re 1.

An exit load of 1 percent applies if units are redeemed or switched out within 90 days from the date of allotment. After 90 days, there is no exit load.

The fund incurs various expenses that impact returns. These expenses are categorised into:

New Fund Offer (NFO) expenses: These expenses are incurred for activities related to the NFO and will be borne by the AMC.

Annual scheme recurring expenses: These include investment management and advisory fees, trustee fees, audit fees, custodian fees, RTA fees, marketing expenses, and more. The maximum Total Expense Ratio (TER) permissible under Regulation 52 (6) (b) is up to 2.25%.

Additional expenses: The AMC may charge additional expenses, such as improving the geographical reach of the fund in smaller cities/towns, not exceeding 0.30% of daily net assets.

Under normal circumstances, the fund's asset allocation is as follows:

Investing in a multi-cap fund like Edelweiss Multi Cap Fund can provide diversification across different market segments, potentially offering attractive returns. However, it's essential to consider one's investment goals, risk tolerance, and investment horizon before making a decision. Consulting a financial advisor or conducting thorough research is advisable, experts say.

It is said that all investments carry some level of risk, and past performance does not guarantee future results. It's crucial to read the fund's offer document and understand its investment strategy and costs before investing.