The AUM of Edelweiss Nifty 50 Index Fund was around Rs 2.6 Crores and of Edelweiss Nifty 100 Quality 30 Index Fund was around Rs 11.1 Crores as on 30 Sept. The fund house said there was no major redemption from the fund during the cooling off period. The fund house has issued a change notice to the investors of these schemes and has given a cooling period of one month.
With this change the TER of Edelweiss Nifty 50 Index Fund will change from 0.070% straight to 0.10 – 0.15% and in Regular Options to 0.45 – 0.50%. The fund house said that the reason for the change in the structure of the scheme is liquidity. The TER of Edelweiss Nifty 100 Quality 30 Fund is 0.243% and will now be 0.25 – 0.30% in Direct plan and 0.95 – 1.00% in Regular plan.
“Keeping in view the AUM of the scheme and ETFs With units not trading on the exchange for several days, it is considered prudent to convert ETFs into index funds to provide investors with more liquidity for the benefit of investors. In addition, the conversion will also provide easy liquidity and option to investors to redeem at will, reduction in impact cost on transactions, option for retail investors to invest directly without demat account and reduction in brokerage cost for retail investors,” In a letter written by Radhika Gupta to the investors of both these schemes
Niranjan Awasthi, Head of Product, Marketing and Digital Business, Edelweiss AMC, took to Twitter to explain how index funds are different and in many respects better than ETFs. “The key difference is unlike index funds, ETFs are listed on an exchange and one can invest at real time NAV. Index funds are just like any other mutual funds When it comes to buy/sell. There is no exchange or market marker involved. All you need to do is approach the AMC to invest or redeem, said Awasthi.
Here is the thread:
A thread explaining the difference between ETFs and Index funds. What are ETFs and Index Funds? Both are from… https://t.co/a1LDgONsdB
– Niranjan Awasthi (Avasthiniranjan) 1618669481000