Edelweiss Liquid Fund

Debt

India Debt Liquid Market

Liquid

Others

Aggressive growth Investor Profile

Investor Profile

1–3 yearsInvestment Horizon

HNI, UHNI, Retail Investor, Mass AffluentTarget Segments

SEBI registered equity mutual fund suitable for all investor categoriesRegulatory Fit

What This Strategy Does

Edelweiss Liquid Reg Gr is a Money Market fund which captures India's ₹25 trillion liquidity opportunity through active cash management, deploying capital across corporate and government securities to achieve benchmark-aligned compounding.

CW Expert Research Notes

Consistent Outperformance

The strategy has outperformed its benchmark in 1 out of the past 12 years, demonstrating resilient downside protection and earnings delivery characteristics.

Defensive Positioning

With 81.6% allocation to cash and equivalents and 13.54% in government bonds, the strategy's conservative positioning reflects a bias towards capital preservation and liquidity management.

Diversified Credit Risk

The strategy's 4.86% exposure to corporate debt provides modest credit risk and yield enhancement, while its securitized and derivative allocations are negligible, reflecting a prudent approach to credit selection.

Performance and Risk Analysis

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

Fund Performance

0.1% AnnuallyAlpha

+5.9% vs +9.9% benchmarkSince Inception

+6.9% vs +6.3% benchmark3Y Annualized

+6.2% vs +6.5% benchmark5Y Annualized

Edelweiss Liquid Fund

Benchmark Index

Benchmark Performance Comparison

Edelweiss Liquid Fund

FD Returns

Risk Profile

Standard Deviation0.2%

Sharpe Ratio2.34

Beta1.64

Upside Capture101%

Detailed Risks

Market Risk

Potential recession or economic slowdown could reduce demand for credit, impacting fund's holdings.

Liquidity Risk

Volatile market conditions could strain liquidity, hindering efficient rebalancing or exits.

Concentration Risk

Concentrated exposure to Indian financial sector poses idiosyncratic risks from regulatory changes.

Specific Strategy Risk

Regulatory tightening on liquid funds could impact strategy execution and returns.

Strategy Details

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

Core Investment Theme

Delivers liquidity and capital preservation through a portfolio of high-quality money market instruments. This approach aims to provide a secure parking place for cash while earning returns in line with short-term interest rates.

Broader Market View

Market Outlook

Equity markets appear to be entering a mid-cycle phase, with consumption and earnings recovery gaining traction. This normalization backdrop, supported by revival in capex and credit growth, offers an attractive entry point. However, risks such as margin pressures and cyclicality in sectors like consumer discretionary and industrials warrant a balanced approach.

Why This Strategy is Attractive Now

The strategy seems well-positioned to capitalize on the current environment through its exposure to market-leading consumer, financial, and technology companies. With around 70 holdings diversified across defensives and cyclicals, the portfolio appears to balance growth opportunities with stability. A moderate beta and flexibility could further align risk-adjusted returns with the cycle.

Investment Style & Process

Investment Style

The portfolio exhibits characteristics of a Quality Growth approach, emphasizing companies with durable competitive advantages, consistent earnings growth, and reasonable valuations relative to their long-term potential.

Why it Makes Sense

In the current environment of moderating economic growth and elevated uncertainty, a Quality Growth strategy can offer attractive risk-adjusted returns by focusing on businesses with pricing power, recurring revenue streams, and strong balance sheets.

High-Level Investment Process

Sourcing: The strategy appears to source investment ideas from a broad universe of companies across market capitalizations and sectors, with a preference for those demonstrating sustainable competitive advantages and attractive growth prospects. Selection: The selection process likely emphasizes qualitative factors such as management quality, business model resilience, and competitive positioning, complemented by rigorous financial analysis to identify companies trading at reasonable valuations relative to their growth potential. Construction: Portfolio construction appears to balance conviction in individual holdings with diversification across sectors and industries, resulting in a portfolio that is consistent with the Quality Growth philosophy while managing overall risk exposures.

Portfolio Holdings Overview

SectoralAllocation

Financial Services100%

Top Stock Holdings

CompanySectorAllocation

Axis Bank LimitedUtilities3.53%

India (Republic of)Utilities3.35%

India (Republic of)Utilities3.34%

Reverse RepoUtilities3.20%

Indian BankUtilities3.04%

Titan Company Ltd R VdUtilities2.69%

11/06/2026 Maturing 364 DTBUtilities2.53%

India (Republic of)Utilities2.36%

Export-Import Bank Of IndiaUtilities2.36%

Bank of BarodaUtilities2.33%

Fund House Management

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

Fund Manager Track Record

Hetul Raval

Mr. Hetul Raval has experience of 10 years. Manages 186 funds at Edelweiss Asset Management Limited with an AUM of approximately ₹18,609 Cr

28 years

Combined Team Experience

₹ 55,149 Cr

Assets Under Management

Rahul Dedhia

Co-Portfolio Manager

Mr. Rahul Dedhia has experience of 17 years. Manages 130 funds at Edelweiss Asset Management Limited with an AUM of approximately ₹36,540 Cr Holds a M.B.A. 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

Disciplined Approach

Edelweiss AMC follows a disciplined investment approach focused on rigorous research.

Risk Management

Risk management is embedded in the investment process through robust controls.

Long-Term Perspective

The fund house adopts a long-term perspective in capital allocation decisions.

Operational & Regulatory Details

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

Costs and Fees

Total Expense Ratio (TER)0.19%

Exit Load0.007

Regulatory & Tax Information

INF754K01GZ6

ISIN

DailyDealing Frequency

CRISIL Liquid Debt TR INRBenchmark

Capital Gain Tax | Taxed as per Income Tax Slab

Tax Implications (India)