Edelweiss Asset Management is taking its US technology strategy to GIFT City, offering investors a dollar-denominated route into the JPMorgan Funds – US Technology Fund as the mutual fund industry faces constraints on its overseas investment headroom.
The Edelweiss US Technology Equity Fund is structured as an open-ended fund of funds under the GIFT City framework and will invest predominantly in the JPMorgan master fund. The scheme is open to resident investors, family offices, institutions, NRIs and foreign nationals, with a minimum investment of $5,000, according to the fund presentation. The minimum additional subscription is $500.
The move is significant for Edelweiss because its existing US Technology Equity Fund of Fund is among the overseas schemes affected by the industry's investment limits.
Moneycontrol reported in July that Edelweiss Mutual Fund had suspended fresh SIPs and STPs in seven overseas-focused schemes, including the US Technology Equity Fund of Fund, as its available overseas investment headroom was nearing the industry-wide threshold.
The GIFT City structure provides a separate route for outbound investments. Moneycontrol reported in June that Edelweiss had seen strong demand for its GIFT City offerings and was looking to add feeder funds in strategies including US technology and emerging markets. The fund house also said it had launched an online platform for GIFT City investments to simplify onboarding.