Edelweiss Fund Risk-o-Meter Updated to ‘Moderate’

Edelweiss Asset Management has updated the Risk-o-meter for the benchmark of its Edelweiss Income Plus Arbitrage Omni Fund of Funds. This revision changes the risk level from ‘Low to Moderate’ to ‘Moderate’, reflecting a clearer assessment for investors.

The adjustment aligns with regulatory mandates outlined in the Master Circular for Mutual Funds, issued on March 20, 2026. Specifically, paragraph 6.16 of this circular governs Product Labeling in Mutual Fund Schemes, requiring consistent and transparent risk disclosures across the industry.

Decoding the Risk-o-Meter Shift

The Risk-o-meter serves as a vital standardized tool, designed to communicate the risk profile of a mutual fund scheme or its underlying benchmark to potential and existing investors. This latest update by Edelweiss Asset Management provides a more precise indication of the scheme’s inherent risk level, moving it up the scale.

For the Edelweiss Income Plus Arbitrage Omni Fund of Funds, the specific benchmark undergoing this revision is composed of two distinct parts. It consists of 60% Nifty Short Duration Debt Index and 40% Nifty 50 Arbitrage TRI, reflecting a blended investment strategy.

• The fund’s previous risk classification was ‘Low to Moderate’.
• The updated risk classification is now ‘Moderate’.
• This change ensures alignment with the regulatory framework for product labeling.

Adherence to Regulatory Framework

Edelweiss Asset Management rigorously conducts monthly evaluations of the Risk-o-Meter specifically for the scheme’s benchmark. These consistent assessments are then publicly disclosed, alongside the scheme’s portfolio, to ensure continuous and timely transparency for all unitholders.

The formal implementation of this revision will occur through an addendum to the Scheme Information Document (SID) and Key Information Memorandum (KIM). These essential documents provide comprehensive details about the fund. Despite this specific update, all other existing provisions and terms and conditions of the scheme will remain entirely unchanged, with the addendum forming an integral part of these foundational scheme disclosures.