The arbitrage fund of Edelweiss AMC has decided to restrict new fund applications of above Rs2 lakh from May 11 to maintain high-quality investment, but will keep the door open to those below the cut-off mark. The scheme has already collected over Rs1,300 crore
“The arbitrage fund of Edelweiss AMC has restricted AUM collection from May 11 as we believe that in the interest of customers, we need to stick to a reasonable corpus if we have to maintain quality of performance,” Edelweiss AMC Chief Executive Vikaas M Sachdeva said. He further said the decision was taken after the fund house found it difficult to manage large investments from investors.
“In future, we may reopen subscription for fresh investments after careful assessment of market conditions and only if we are certain of delivering optimal returns to new as well as existing investors,” he said.