Edelweiss Recently Listed IPO Fund

The Edelweiss Recently Listed IPO Fund has delivered strong SIP returns of 19.85% (1Y), 19.34% (3Y), 18.05% (5Y), and 17.73% (7Y), beating the category average SIP XIRR across all periods. It has also generated positive alpha against the NIFTY 50 over every measured horizon, including 22.76% over 1Y and 10.09% over 3Y, with the 3Y fund CAGR of 16.5% more than 10 percentage points above the benchmark's 6.4%. This consistent outperformance suggests the thematic bet on recently listed companies has been well rewarded.

The fund shows a low beta of 0.63 to 0.88 across horizons and notably strong downside capture (59.19% over 1Y, 65.28% over 7Y), meaning it has fallen far less than the index in corrections. Its maximum drawdown of -0.32% with only a 33-day trough reflects this defensive behavior, though the 155-day recovery period and 7 drawdown events exceeding 10% indicate meaningful peak-to-trough events over longer histories. Calmar ratios of 0.59 to 0.63 across 1Y to 5Y indicate moderate risk-adjusted efficiency given the fund's high returns.

As a thematic fund, portfolio construction is concentrated in recently listed IPO stocks rather than diversified across the broader market. The fund's lower beta and capture ratios imply significant cash or defensive positioning alongside its IPO holdings. Investors should expect sector and stock concentration typical of a narrow thematic mandate, with allocations driven by the IPO pipeline rather than deliberate sector diversification.

Against its sectoral/thematic category, the fund's SIP XIRR outpaces the category average by roughly 9 percentage points over 1Y (19.85% vs 10.56%), 3 points over 3Y, and about 1 point over 5Y and 7Y. Calendar year returns reveal high variability, swinging from 56.44% in 2021 to -19.97% in 2022 and -4.88% in 2025, which is typical of thematic mandates. The multi-year XIRR consistency above category averages points to durable relative strength, but absolute performance is clearly cyclical.

This fund suits investors with high risk tolerance who understand the concentration and cyclicality of an IPO-focused thematic mandate and want a satellite allocation alongside core diversified funds. A time horizon of at least 5-7 years is advisable, given calendar-year swings like -19.97% in 2022. Investors uncomfortable with extended drawdowns or periods of negative returns, such as 2025's -4.88%, should consider it only as a small portfolio portion.

• SIP XIRR of 19.85% (1Y), 19.34% (3Y), 18.05% (5Y), and 17.73% (7Y) consistently exceeds category averages by 1 to 9 percentage points.
• Strong benchmark outperformance with alpha across all horizons, including 22.76% over 1Y and 10.09% over 3Y versus the NIFTY 50.
• Low downside capture (59.19% at 1Y, 65.28% at 7Y) and beta between 0.63 and 0.88 show resilient behavior in market corrections.

• High calendar-year volatility, with returns swinging from 56.44% in 2021 to -19.97% in 2022 and -4.88% in 2025, reflecting an inherently cyclical IPO mandate.
• Seven drawdown events exceeding 10% and a 155-day recovery from the maximum drawdown indicate that despite short-term defensive capture ratios, investors face meaningful episodic losses.