Edelweiss India Multimanager Equity Fund — Series I

All Cap

Diversified

Equity

India Offshore Value Advantage

Others

Aggressive growth Investor Profile

Investor Profile

Empty

HNI, UHNI, Retail Investor, Mass AffluentTarget Segments

SEBI registered equity mutual fund suitable for all investor categoriesRegulatory Fit

Edelweiss India Multimanager Equity Fund invests in alternative assets for non-traditional growth opportunities.

What This Strategy Does

Edelweiss India Multimanager Equity Fund — Series I is an equity flexi-cap fund which captures India's ₹200 trillion consumption and private capex opportunity through a multi-manager approach, deploying capital across financials, industrials, and consumer sectors to achieve broad-based earnings growth.

CW Expert Research Notes

Consistent Outperformance

The fund has demonstrated resilient benchmark-relative behavior, outperforming the Nifty Midcap 150 TRI across multiple cycles, including a 34.97% return over the past year versus the benchmark's 26.91%.

Multi-Manager Approach

The fund employs a differentiated multi-manager strategy, combining allocations across Edelweiss, HDFC, DSP, Kotak, Nippon India, and Canara Robeco funds to express conviction in mid-cap and flexi-cap opportunities.

Balanced Risk Profile

With a tilt towards large and mid-caps, the fund is positioned to participate in the ongoing capex cycle and earnings revisions while mitigating downside risks from potential small-cap volatility.

Performance and Risk Analysis

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

Detailed Risks

Market Risk

Potential recession driven by tightening monetary policy could dampen consumer demand, impacting mid-cap cyclical holdings; mitigated by flexi-cap allocation.

Liquidity Risk

Volatility spikes or redemption pressures could impair liquidity for mid/small-cap exposures, hindering rebalancing; large-cap buffer provides liquidity cushion.

Concentration Risk

Concentrated financials exposure (33.11%) faces asset quality risks; diversification across sectors and market caps limits downside impact.

Specific Strategy Risk

Regulatory tightening on non-bank lending could pressure NBFC holdings; rigorous bottom-up research identifies emerging risks.

Strategy Details

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

Core Investment Theme

Harnesses the power of multi-manager diversification to capture opportunities across the market cap spectrum. By combining carefully selected funds managed by proven experts, this approach aims to generate consistent alpha through varying market cycles. The impact is a smoother return profile with lower volatility compared to single-manager strategies.

Broader Market View

Market Outlook

The Indian equity market appears to be in a post-correction recovery phase, offering an attractive entry point. Consumption revival, earnings normalization, and capex growth are driving the market upswing, benefiting sectors like consumer discretionary, financials, and industrials. However, risks such as margin pressures and cyclicality warrant a balanced approach.

Why This Strategy is Attractive Now

This strategy seems well-positioned for the current environment with exposure to consumer cyclicals, financials, and technology. The portfolio holds market leaders across sectors and offers diversification through ~70 holdings. Its balanced approach, with moderate beta and flexibility, appears aligned with the recovery phase while managing risks through sector and market-cap diversification.

Investment Style & Process

Investment Style

The portfolio reflects a multi-cap approach, combining exposure across large, mid, and small-cap segments with a tilt towards large and mid-caps, suggesting a core investment style.

Why it Makes Sense

This multi-cap approach appears sensible in the current market environment, allowing for participation in structural growth opportunities across market capitalization segments while maintaining a diversified risk profile.

High-Level Investment Process

Sourcing: The strategy appears to source its exposure through a multi-manager approach, investing in a combination of actively managed large-cap, mid-cap, and flexi-cap funds from reputed asset management companies. Selection: The underlying fund selection process likely emphasizes factors such as investment philosophy, risk-adjusted performance, portfolio characteristics, and management pedigree. Construction: The overall portfolio construction appears to balance growth and value considerations, with sector exposures suggesting a preference for cyclical sectors like financials, industrials, and consumer discretionary, complemented by defensive exposures in healthcare and consumer staples.

Portfolio Holdings Overview

SectoralAllocation

Capital Goods11.13%

Consumers20.1%

Technology8.3%

Utilities9.9%

Services12.7%

Energy & Infra4.7%

Financial Services33.11%