Edelweiss Mutual Fund recently touched the 1-lakh crore Assets Under management (AUM) mark. Over the last five years, the fund house’s AUM has increased 11-fold. The equity AUM has increased 13 times, crossing Rs 22,000 crores.
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The fund has pursued growth through a range of products including target maturity funds, an IPO-focused fund and the only scheme investing in both silver and gold. The company recently launched India’s first short-term target maturity fund.
So what has helped Edelweiss reach the 1 lakh crore AUM mark?
First, the Bharat Bond exchange-traded fund (ETF) was among the big turning points for the fund. The ETF invests in debt instruments of AAA-rated public sector companies. Because of its low expense ratio and high-quality portfolio, the ETF became very popular. The fund’s AUM from passive products (ETFs/ FOFs/Index funds) has gone up from Rs 8 crore to Rs 69,564 crore in the last five years.
Here’s a look at the Bharat bond offerings:
| Scheme name | YTM (%) | AUM (in crores) |
| Bharat Bond ETF – April 2023 | 7.23 | 7,876 |
| Bharat Bond ETF– April 2025 | 7.58 | 9,686 |
| Bharat Bond ETF– April 2030 | 7.61 | 15,392 |
| Bharat Bond ETF– April 2031 | 7.64 | 11,698 |
| Bharat Bond ETF– April 2032 | 7.62 | 8,559 |
| Bharat Bond ETF– April 2033 | 7.65 | 3,000 |
Secondly, Edelweiss’ bet on debt mutual funds and fixed income was a growth driver. When maximum retail inflows were going into equity mutual funds, the fund house went big on the debt space. Edelweiss MF was among the first few fund houses to launch target maturity funds (TMFs) in India, which are essentially open-ended passive debt mutual funds.
A look at the target maturity funds launched by the fund house:
| Scheme name | YTM (%) | AUM (in crores) |
| Edelweiss Crisil PSU Plus SLD 50:50 Oct 2025 Fund | 7.55 | 845 |
| Edelweiss Nifty PSU Bond Plus SDL April 2026 50:50 Index Fund | 7.56 | 9,347 |
| Edelweiss Nifty PSU Bond Plus SDL April 2027 50:50 Index Fund | 7.56 | 2,878 |
| Edelweiss Crisil IBX 50:50 Gilt Plus SDL June 2027 Index Fund | 7.50 | 88 |
| Edelweiss Crisil IBX 50:50 Gilt Plus SDL June 2028 Index Fund | 7.58 | 110 |
| Edelweiss Crisil IBX 50:50 Gilt Plus SDL April 2037 Index Fund | 7.65 | 292 |
Currently, the fund house has a wide basket of 13 TMFs with a total AUM of Rs 69,322 crore, which is 48 percent market share in TMF category. The fund’s CEO, Radhika Gupta, is vocal about her conviction in debt products, especially debt passive funds.
“In the fixed income space, investors come with three expectations- Safety, liquidity and returns, in that order. The push on debt passives is because these funds check all these boxes”, says Radhika Gupta.
Thirdly, Edelweiss MF’s recently-listed IPO fund is the industry’s only scheme that invests exclusively in new IPOs. The fund was launched in 2018 and has an AUM of Rs 880 Crore with 11.24 percent return since inception. Another first in the industry was the Edelweiss Gold and Silver ETF FoF, the only scheme that invests in both gold and silver ETFs.
Commenting on future products from the mutual fund, Radhika Gupta said the fund would be working on more innovation on the fixed income side and strategies to grow the subscriber base.
(Edited by : Pihu Yadav)
First Published: Feb 14, 2023 11:06 PM IST
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