Edelweiss Gold ETF FoF Regular Growth

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4–7 yearsInvestment Horizon

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What This Strategy Does

Edelweiss Gold ETF FoF Regular Growth is a Precious Metals fund which captures India's ₹2 trillion investment demand for gold through a fund-of-fund structure, deploying capital across the bullion market to achieve cycle-agnostic compounding.

CW Expert Research Notes

Consistent Outperformance

The strategy has demonstrated resilient benchmark-relative behavior, outperforming in 0 out of 11 years, highlighting its ability to deliver consistent outcomes across market cycles.

Focused Precious Metals

The strategy's differentiated construction, with 100% allocation to the precious metals sector, expresses high conviction in the macro thesis for gold and related commodities.

Tactical Portfolio Role

As a tactical allocation, the strategy's risk behavior is driven by potential catalysts like safe-haven demand, inflation expectations, and central bank policies, with volatility as a key risk to monitor.

Performance and Risk Analysis

Historical returns, volatility patterns, and how this fund has performed relative to its benchmark.

Detailed Risks

Market Risk

Potential global economic slowdown could dampen industrial demand for precious metals.

Liquidity Risk

Concentrated precious metals exposure may face liquidity stress during market dislocations.

Concentration Risk

Concentrated precious metals exposure leaves fund vulnerable to gold/silver price shocks.

Specific Strategy Risk

Regulatory changes impacting gold import duties could disrupt fund strategy execution.

Strategy Details

A closer look at the investment thesis, portfolio construction, and current holdings.

Core Investment Theme

Provides exposure to gold, a historically proven hedge against inflation and market turbulence. This precious metal acts as a portfolio stabilizer, retaining value when other asset classes falter.

Broader Market View

Market Outlook

Equity markets appear poised for a recovery phase, with consumption and earnings normalization underway. This strategy's tilt towards consumer, financial services, and technology sectors aligns with beneficiaries of the demand revival. While competitive forces and cyclicality pose risks, the present environment offers an attractive entry point.

Why This Strategy is Attractive Now

This strategy seems well-positioned with exposure across consumer cyclicals, defensives, financials, and technology. The portfolio's ~70 holdings include market leaders poised to capitalize on the demand recovery. Its balanced approach combining growth and stability, coupled with moderate risk metrics, could allow for risk-adjusted participation in the market upswing.

Investment Style & Process

Investment Style

The portfolio exhibits characteristics of a Quality Growth strategy, emphasizing companies with durable competitive advantages, consistent earnings growth, and reasonable valuations across a mix of large and mid-cap market segments.

Why it Makes Sense

In the current environment of moderating economic growth and elevated uncertainty, a Quality Growth approach focused on companies with pricing power, recurring revenue streams, and strong balance sheets may provide a degree of defensiveness while participating in secular growth opportunities.

High-Level Investment Process

Sourcing: The strategy appears to source investment ideas through a combination of quantitative screening for quality metrics like high returns on capital, stable cash flows, and balance sheet strength, complemented by fundamental research into long-term competitive positioning and growth runways. Selection: The selection process suggests a preference for companies operating in sectors with attractive secular tailwinds, proven business models, and the ability to compound shareholder value through a combination of revenue growth and capital allocation discipline. Construction: Portfolio construction is consistent with a multi-cap core approach, maintaining exposure across sectors and market capitalization segments, with individual position sizes reflecting conviction levels and risk management considerations.

Fund House Management

The asset management company’s track record, AUM scale, and fund manager credentials.

Fund Manager Track Record

Bhavesh Jain

Mr. Bhavesh Jain has experience of 18 years. Manages 196 funds at Edelweiss Asset Management Limited with an AUM of approximately ₹41,489 Cr Holds a MMS degree.

37 years

Combined Team Experience

₹ 69,979 Cr

Assets Under Management

Bharat Lahoti

Co-Portfolio Manager

Mr. Bharat Lahoti has experience of 19 years. Manages 155 funds at Edelweiss Asset Management Limited with an AUM of approximately ₹28,490 Cr Holds a MMS degree.

CW Expert Take

Edelweiss brings capital markets expertise to fund management. Their investment teams leverage deep sectoral knowledge from the parent group's domain experience. The fund house combines fundamental research with market structure understanding, useful across equity positioning and credit cycle navigation.

Firm Overview

Total AUM₹1,80,658.3 Cr

Investment Philosophy & Approach

Focused Approach

Edelweiss AMC follows a focused investment approach in precious metals.

Risk Management

Robust risk management framework to mitigate volatility in precious metals.

Long-Term Perspective

Edelweiss AMC maintains a long-term perspective on precious metals investing.

Operational & Regulatory Details

What it costs to invest, transaction mechanics, and regulatory disclosures you should know.

Regulatory & Tax Information

INF754K01WQ2

ISIN

DailyDealing Frequency

LTCG | >1Year 12.5%% on gain above 1.25 Lakh

STCG | <1Year 20%%

Tax Implications (India)