Investment Objective
Edelweiss Small Cap Fund seeks to generate capital appreciation in the long term from a portfolio, which predominantly invests in equity and equity related securities of small cap companies.
Investment Strategies
- The fund invests in the stocks of small cap companies, which can deliver exponential business and earnings growth.
- It also prefers businesses that can benefit from economic growth due to their cyclical nature.
- During stock selection, the fund carries out a higher degree of due diligence and forensic analysis to ensure there is no compromise on the quality of stocks.
- The fund also monitors portfolio liquidity constantly to effectively manage market fluctuations and redemption pressures.
- It uses the ‘FAIR’ (Forensics, Acceptable Price, Investment Style Agnostic and Robustness) investment framework of its fund house to identify clean and robust businesses available at acceptable prices without being biased towards the value or growth investing styles.
- The fund invests 65% of the net assets in the stocks of small cap companies, which include all stocks except the largest 250 stocks by the market capitalization.
Who Should Invest
Edelweiss Small Cap Fund is suitable for investors:
- having a very high risk appetite and seeking capital appreciation over the long term
- who are seeking to invest in a portfolio comprising predominantly of equity and equity related instruments of small cap companies