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	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

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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