The company offers a new investment strategy under its discretionary portfolio management services which is said to deliver superior long-term returns using a proprietary back-tested strategy to curtail volatility and downside risk. However, it is pertinent to check the details of the scheme.

Edelweiss Personalized Managed Accounts (PMA) has launched a new product Beta Overlay Over Mutual Funds (BO.O.M). Scheme with fancy names have not quite succeeded in the past. The strategy is designed to enhance equity mutual fund portfolio returns by strategically hedging the long-only component of equity mutual funds with Nifty futures when the markets are weak. This portfolio will comprise futures, options and units of equity/debt/liquid mutual fund schemes.

Edelweiss AMC, a subsidiary of Edelweiss Financial Services, is the portfolio manager to Edelweiss PMA. For the new scheme, the AMC would be using a model to protect an existing equity mutual fund investor against a weak or falling market while still capturing gains during a rising market, thereby “curtailing volatility and downside risk.” “B.O.O.M follows a rigorously back-tested model, which has consistently delivered better returns over a 10-year period,” according Vikaas M Sachdeva, CEO, Edelweiss Asset Management.
Knowing the context in which a particular strategy has succeeded is essential for an investor. Therefore, even though the portfolio manager may be satisfied with the performance over the periods they have tested, it is crucial for an investor to know how the strategy has worked. Especially, considering the minimum investment amount is Rs25 lakh.