Edelweiss MF launches India’s first hybrid passive Index Fund blending equities and G-Secs

THEBUSINESSBYTES BUREAU

MUMBAI, MARCH 18, 2026

Edelweiss Asset Management Company Ltd has announced the launch of the Edelweiss Nifty LargeMidcap250 Plus 8–13 yr G-Sec 70:30 Index Fund, marking India’s first hybrid passive index fund that seamlessly combines equities and government securities within a single rule-based structure. The New Fund Offer (NFO) will remain open for subscription from March 18 to April 1, 2026.

The open-ended index scheme is designed to replicate the Nifty LargeMidcap250 Plus 8–13 yr G-Sec 70:30 Index, allocating 70% to equities and 30% to government securities. The equity component tracks the Nifty LargeMidcap250 Index, while the debt portion mirrors the Nifty 8–13 yr G-Sec Index, thereby creating a diversified portfolio that blends broad market participation with the relative stability of sovereign bonds.

The launch comes at a time when India’s passive investing ecosystem is witnessing rapid evolution, aided by regulatory support for innovative index-based strategies. Hybrid passive funds, in particular, have emerged as a new category following approvals and the development of debt indices with sufficient market depth and scale.

Speaking on the launch, Radhika Gupta, MD & CEO, Edelweiss Asset Management Company Ltd, said: "At Edelweiss, we have always believed in bringing simple yet powerful innovative solutions for investors. The Edelweiss Nifty LargeMidcap250 Plus 8–13 yr G-Sec 70:30 Index Fund is a reflection of that belief. It is the first hybrid passive product in India, combining simplicity and innovation to solve a customer need that has remained unaddressed for decades. The passive funds segment is growing tremendously in India, and we believe this category will add new feathers to the passive solutions available for investors. With two powerful asset classes and a disciplined allocation framework, this fund can work across market cycles to deliver a smoother investing experience for many investors."

The equity component of the underlying index spans 250 companies across large and mid-cap segments, representing a substantial portion of India’s free-float market capitalisation. On the debt side, the scheme invests in government securities with residual maturities of 8–13 years, historically known for offering stability and diversification.

Under its indicative allocation, the scheme will predominantly invest in securities that form part of the benchmark index, including equity and equity-related instruments aligned with the Nifty LargeMidcap250 Index and government securities linked to the Nifty 8–13 yr G-Sec Index, subject to tracking error.

The fund will be managed by Bhavesh Jain and Bharat Lahoti for the equity component, while Dhawal Dalal and Hetul Raval will oversee the debt portion.

Positioned for investors seeking long-term capital appreciation alongside the relative safety of government bonds, the scheme is suited for those comfortable with market-linked returns. It is classified under the Very High-Risk category, reflecting its exposure to equity markets despite the stabilising influence of sovereign debt.