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
- Looking for long term wealth creation.
- 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
| Investments | Indicative 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 units | 0% - 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 Scheme | Edelweiss MSCI India Domestic & World Healthcare 45 Index Fund |
| Fund House | Edelweiss Mutual Fund |
| Type of the Scheme | An open-ended scheme replicating the MSCI India Domestic and World Healthcare 45 Index |
| Investment Objective | The 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. |
| Benchmark | MSCI India Domestic & World Healthcare 45 Index Fund |
| Entry Load | Not Applicable |
| Exit Load | Nil |
| Minimum Amount to Apply | Rs. 5,000 and in multiples of Rs.1 thereafter |
| Minimum Additional Amount | Rs. 500 and in multiples of Rs.1 thereafter |
| Plans Offered |
|
| Options |
|
| 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
| Type | Minimum Installments | Minimum Amount |
| Daily | 20 | Rs.300 & in multiples of Rs.1 thereafter |
| Weekly | 12 | Rs.500 & in multiples of Rs.1 thereafter |
| Fortnightly | 12 | Rs.500 & in multiples of Rs.1 thereafter |
| Monthly | 12 | Rs.500 & in multiples of Rs.1 thereafter |
| Quarterly | 6 | Rs.1000 & in multiples of Rs.1 thereafter |
Index Constituents
- MSCI Domestic Healthcare Select Component
| Pharmaceuticals - Securities | Allocation % |
| DR REDDY'S LABORATORIES | 9.89% |
| SUN PHARMACEUTICAL IND | 8.46% |
| CIPLA | 6.36% |
| AUROBINDO PHARMA | 4.88% |
| LUPIN | 4.25% |
| TORRENT PHARMACEUTICALS | 2.68% |
| IPCA LABORATORIES | 2.68% |
| ABBOTT INDIA | 1.73% |
| SANOFI INDIA | 1.53% |
| GLENMARK PHARMACEUTICALS | 1.46% |
| NATCO PHARMA | 1.44% |
| PFIZER INDIA | 1.28% |
| JUBILANT LIFE SCIENCES | 1.17% |
| ALEMBIC PHARMACEUTICALS | 1.07% |
| AJANTA PHARMA | 0.81% |
| PROCTER & GAMBLE HEALTH | 0.64% |
| ASTRAZENECA PHARMA INDIA | 0.34% |
| Healthcare Amenities- Securities | Allocation |
| APOLLO HOSPITALS | 2.86% |
| FORTIS HEALTHCARE | 1.18% |
| DR LAL PATHLABS | 1.04% |
| METROPOLIS HEALTHCARE | 0.80% |
| Life Sciences Tools - Securities | Allocation |
| DIVI'S LABORATORIES | 8.14% |
| SYNGENE INTERNATIONAL | 1.12% |
| Biotech Securities | Allocation |
| BIOCON LTD | 3.16% |
- MSCI World Healthcare Select Component
| Pharmaceuticals securities | Allocation |
| NOVARTIS ADR | 2.10% |
| JOHNSON & JOHNSON | 4.50% |
| MERCK & CO | 2.43% |
| PFIZER | 2.36% |
| BRISTOL-MYERS SQUIBB CO | 1.58% |
| Life Sciences Tools & Amenities securities | Allocation |
| THERMO FISHER SCIENTIFIC | 1.90% |
| ILLUMINA | 0.58% |
| AGILENT TECHNOLOGIES | 0.35% |
| METTLER TOLEDO INTL | 0.26% |
| WATERS CORP | 0.15% |
| Healthcare Equipment securities | Allocation |
| ABBOTT LABORATORIES | 2.04% |
| MEDTRONIC PLC | 1.57% |
| DANAHER CORP | 1.46% |
| BECTON DICKINSON | 0.77% |
| STRYKER CORP | 0.71% |
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