Edelweiss Mutual Fund launches India's first passive short-duration fund

This is the first passive offering in the short-duration space

Edelweiss Mutual Fund launched India's first passive short-duration fund on Friday. The scheme, Edelweiss CRISIL IBX 50:50 Gilt Plus SDL Short Duration Index Fund, will invest in a diversified portfolio of Indian government bonds and state development loans (SDL).

According to the fund house, the passive offering will provide investors a low cost investment option for the short term. "This fund offers better predictability on asset allocation, credit quality, and duration, and is a low-cost substitute over other active funds for short-term investments," said Radhika Gupta, MD and CEO, Edelweiss AMC.

The scheme will invest 50 per cent in Indian