Edelweiss MSCI India Domestic & World Healthcare 45 Index Fund NFO

About Edelweiss MSCI India Domestic & World Healthcare 45 Index Fund NFO

Edelweiss Mutual Fund has announced the launch of Edelweiss MSCI India Domestic & World Healthcare 45 Index Fund. It is a passive index fund that invests in securities comprising the MSCI India Domestic and World Healthcare Index which consists of 45 stocks listed in India and the US market. 

The allocation to World and Indian constituents are proportionally planned as follows-

  • MSCI India Healthcare: 70% weightage to top 25 domestic stocks as per Free Float Market Capitalization covering sectors such as Pharma, Diagnostics, Life Sciences Tools & Services, Biotechnology, etc.
  • MSCI World Healthcare: 30% weightage to 20 stocks (top 5 stocks from each subsector) of top global companies listed in the US. The sub-sectors include Pharma, Life Sciences tools & services, Healthcare Equipment, and Biotechnology.

The NFO period starts from 06 October 2020 & closes on 20 October 2020.

Investment Objective

The Fund will invest in securities constituting the MSCI India Domestic & World Healthcare 45 Index with the objective to generate returns for investors closely corresponding to its benchmark index returns before expenses, subject to any tracking errors.

Suitability

The scheme is suitable for investors who are 

  1. Looking for long term wealth creation.
  2. Looking for passive investments in equity and equity-related securities replicating the composition of MSCI India Domestic & World Healthcare 45 Index, subject to tracking errors.

Asset Allocation Pattern

InvestmentsIndicative Allocation  (% of Total Assets) Risk 
Equity stocks in MSCI India Domestic & World Healthcare 45 Index*95% - 100%High
Debt & Money Market Instruments/ Liquid Mutual Funds units0% - 5%Low

*Find the details of Index Constituents at the end of page

Why invest in this scheme now?

  • The pharmaceutical industry outperformed the broader market by over 35%.
  • Historically, given an FMCG style of business model, the healthcare sector in India has traded at a premium over the broader markets. The premium is currently lower in contrast to the historical levels.
  • Price to Book values have picked up from its lows and is now still below its peak and long term average.
  • Given the current reasonable valuation, it may be a good time to make investments into this theme.

About the scheme 

Name of the SchemeEdelweiss MSCI India Domestic & World Healthcare 45 Index Fund 
Fund HouseEdelweiss Mutual Fund
Type of the SchemeAn open-ended scheme replicating the MSCI India Domestic and World Healthcare 45 Index
Investment ObjectiveThe Investment Objective of the scheme is to provide returns closely corresponding to its benchmark index returns before expenses, subject to tracking errors. The scheme aims to realize its investment objective by investing in stocks constituting the MSCI India Domestic and World Healthcare 45 Index.
BenchmarkMSCI India Domestic & World Healthcare 45 Index Fund 
Entry LoadNot Applicable
Exit LoadNil
Minimum Amount to ApplyRs. 5,000 and in multiples of Rs.1 thereafter
Minimum Additional AmountRs. 500 and in multiples of Rs.1 thereafter
Plans Offered
  • Regular Plan
  • Direct Plan
Options
  • Growth
  • Dividend Payout
  • Dividend Reinvestment
NFO Period

Starts on October 6, 2020

Ends on October 20, 2020

Fund Managers

Mr. Hardik Varma 

Mr. Mayur Dharmshi (for foreign investments) 

SIP Details

TypeMinimum InstallmentsMinimum Amount
Daily20Rs.300 & in multiples of Rs.1 thereafter
Weekly12Rs.500 & in multiples of Rs.1 thereafter
Fortnightly12Rs.500 & in multiples of Rs.1 thereafter
Monthly12Rs.500 & in multiples of Rs.1 thereafter
Quarterly6Rs.1000 & in multiples of Rs.1 thereafter

Index Constituents

  • MSCI Domestic Healthcare Select Component
Pharmaceuticals - SecuritiesAllocation %
DR REDDY'S LABORATORIES         9.89%
SUN PHARMACEUTICAL IND8.46%
CIPLA 6.36%
AUROBINDO PHARMA4.88%
LUPIN4.25%
TORRENT PHARMACEUTICALS 2.68%
IPCA LABORATORIES2.68%
ABBOTT INDIA1.73%
SANOFI INDIA1.53% 
GLENMARK PHARMACEUTICALS1.46%
NATCO PHARMA1.44%
PFIZER INDIA1.28%
JUBILANT LIFE SCIENCES1.17%
ALEMBIC PHARMACEUTICALS1.07%
AJANTA PHARMA 0.81%
PROCTER & GAMBLE HEALTH 0.64%
ASTRAZENECA PHARMA INDIA0.34% 
Healthcare Amenities- SecuritiesAllocation
APOLLO HOSPITALS2.86%
FORTIS HEALTHCARE 1.18%
DR LAL PATHLABS1.04% 
METROPOLIS HEALTHCARE 0.80%
Life Sciences Tools - SecuritiesAllocation
DIVI'S LABORATORIES8.14%
SYNGENE INTERNATIONAL1.12%
Biotech SecuritiesAllocation
BIOCON LTD3.16%
  • MSCI World Healthcare Select Component
Pharmaceuticals securitiesAllocation
NOVARTIS ADR2.10%
JOHNSON & JOHNSON4.50%
MERCK & CO2.43%
PFIZER 2.36%
BRISTOL-MYERS SQUIBB CO1.58%
Life Sciences Tools & Amenities securitiesAllocation
THERMO FISHER SCIENTIFIC 1.90% 
ILLUMINA0.58%
AGILENT TECHNOLOGIES0.35%
METTLER TOLEDO INTL0.26% 
WATERS CORP0.15%
Healthcare Equipment securitiesAllocation
ABBOTT LABORATORIES2.04%
MEDTRONIC PLC1.57%
DANAHER CORP1.46% 
BECTON DICKINSON0.77% 
STRYKER CORP 0.71%

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