Edelweiss India Multimanager Equity Fund – Capturing India’s Growth Story via GIFT City

Introduction

India’s economic transformation is creating one of the most attractive investment opportunities globally. With structural drivers like a young workforce, rising consumption, digital adoption, and supportive reforms, India is poised to remain the fastest-growing large economy in the coming decades.

To harness this potential, Edelweiss Asset Management has launched the Edelweiss India Multimanager Equity Fund – Series I, a Category III AIF set up in GIFT City IFSC. This innovative fund of funds strategy combines the expertise of top Indian Asset Managers with Edelweiss’ robust investment framework.

Why GIFT City?

Gujarat International Finance Tec-City (GIFT City) is India’s first International Financial Services Centre (IFSC). It offers a globally competitive, tax-efficient, and investor-friendly ecosystem for cross-border investments.

Key benefits include:

• Tax advantages: Exemptions on capital gains, GST, and more.

• Dual access: A platform for both inbound and outbound investments.

• Ease of doing business: Single-window clearance and simplified compliance.

• World-class infrastructure: Plug-and-play facilities, data centers, residential and commercial spaces.

This makes GIFT City the ideal jurisdiction for international investors seeking exposure to Indian markets.

About Edelweiss Asset Management

Edelweiss AMC has established itself as a pioneer in innovation within Indian capital markets:

• Mandated to launch India’s first corporate bond ETF (Bharat Bond).

• Among the largest players in passive debt funds.

• First AMC to partner with MSCI in India.

• Market leader in factor-based investing strategies.

With its IFSC branch, Edelweiss AMC provides global investors an efficient and compliant route to participate in India’s equity story.

India – A Secular Long-Term Opportunity

The fund is anchored on India’s structural growth levers:

• Demographics: Youngest working population with median age of 28.

• Consumption growth: Middle- and high-income households projected to expand by 46% by 2030.

• Infrastructure push: $3 trillion+ projects identified under the National Infrastructure Pipeline.

• Digital economy: On track to become a $1 trillion digital economy by 2026.

• Exports: Potential to reach $1 trillion each in goods and services exports by 2030.

Together, these factors create a strong case for long-term equity participation.

Investment Strategy – Balanced & Diversified

The fund follows a multi-manager, multi-fund strategy to ensure both diversification and quality.

Portfolio Construct:

• 60% Flexicap Funds

• 40% Midcap Funds

Allocation Mix:

• 70–75% in other top AMCs’ funds

  • ~45% in Top 3 Flexicap Funds

  • ~30% in Top 3 Midcap Funds

• 25–30% in Edelweiss AMC’s funds

  • ~15% in Edelweiss Flexicap Fund

  • ~10% in Edelweiss Midcap Fund

This structure ensures investors benefit from both best-in-class external managers and Edelweiss’ own proven expertise.

Fund Selection Process – Rigorous & Structured

The fund employs a four-step selection and review process:

1. Fund Universe

   • Top 15 AMCs based on Equity AUM

   • Only Flexicap & Midcap Funds with at least 10 years’ track record

   • Excludes funds with cash calls or >10% international exposure

2. Quantitative & Qualitative Scoring

   • 3 & 5 year trailing and rolling returns

   • Percentile ranking

   • Information ratio & Sharpe ratio

   • Qualitative scoring of AMC (scale 1–5)

3. Fund Selection

   • Final rank = 70% quantitative + 30% qualitative

   • Fund manager selects top 3 funds from each category (Flexicap & Midcap)

4. Review & Rebalancing

   • Half-yearly performance reviews

   • Annual portfolio rebalancing & reconstitution

   • Rank buffer (funds remain eligible if within top 6 the following year)

This disciplined approach ensures a data-driven yet flexible framework for long-term performance.

Risk Management & Philosophy

Edelweiss follows its FAIR Investment Framework:

• Forensics – Accounting quality, governance, and integrity checks.

• Acceptable Price – Focus on sustainable earnings power at fair valuations.

• Investment Style Agnostic – Balanced approach between value and growth.

• Robustness – Preference for scalable businesses with superior returns.

Risk is monitored at every level—from idea generation to portfolio construction—ensuring long-term resilience.

Investor Eligibility

The fund is open to:

• NRIs & OCIs

• Foreign Institutions & Sovereign Funds

• Accredited Investors (via IFSC route)

Investments are denominated in USD and benefit from favorable IFSC taxation, with exemptions on certain capital gains.

Conclusion

The Edelweiss India Multimanager Equity Fund – Series I provides global investors with a unique gateway to India’s equity markets through GIFT City. By combining the diversification of top AMCs’ funds with Edelweiss’ proven investment framework and governance standards, the fund offers a robust, transparent, and tax-efficient investment avenue.

As India strengthens its position as a global economic powerhouse, this fund enables investors to participate in its long-term growth story with confidence.

Risk Disclosure:

Investments in Alternative Investment Funds (AIFs), including Category III AIFs set up in GIFT City IFSC, are subject to significant risks. Such funds may employ leverage, derivatives, and complex investment strategies that can amplify both gains and losses. Past performance is not indicative of future results, and there is no assurance or guarantee that the investment objective of the fund will be achieved. The value of investments may fluctuate due to changes in market conditions, regulatory environment, currency movements, and other economic factors. Investors should note that participation in Category III AIFs is intended only for sophisticated and accredited investors who understand and can bear the risks involved. Prospective investors are advised to carefully review the Private Placement Memorandum (PPM), risk factors, and related documents, and consult their financial, legal, and tax advisors before making any investment decision.