Edelweiss Mutual Fund Gets Nod to Launch BSE Sensex ETF

Mumbai, September 16, 2025: Edelweiss Mutual Fund has announced that it has received approval to launch the Edelweiss BSE Sensex ETF on the NSE and BSE. The ETF will be an open-ended traded fund and will mirror the performance of the BSE Sensex Total Return Index (TRI).

Unit to Be Issued at 1/1000th of the BSE Sensex TRI Value

The fund house announced that it will issue the units at 1/1000th of the BSE Sensex TRI value during its New Fund Offer (NFO) on the allotment date. Once the units are listed on NSE and BSE, investors will be able to easily buy and sell them. The minimum investment will be ₹5,000, with no exit load.

The fund will allocate 95%-100% of the assets in stocks included in the Sensex, while 0%-5% assets will be allocated to money market instruments or cash equivalent. The ETF’s total expense ratio will be up to 1.00% of the daily net assets. The risk level for the ETF has been tagged at very high.

The creation unit size for the ETF is 20,000 units, and direct transactions with the AMC are permitted for market Market anytime. However, for large investors, direct transactions are only permitted if they are at or above ₹25 crore. For unit redemption, investors can approach AMC directly if the redeemable amount is up to ₹25 crore and the units are trading at discount or lack exchange quotes.

Passive investment Approach

Edelweiss Mutual Fund announced that the newly launched ETF will follow a passive investment approach. Hence, instead of actively picking stocks to invest, the ETF will just mirror the performance of the BSE Sensex Total Return Index (TRI). Furthermore, the ETF may invest up to 20% of the equity portfolio in derivatives for a temporary period during rebalancing or at the time of corporate action adjustments. Here, rebalancing is required within 7 days.

REF: https://www.sebi.gov.in/filings/mutual-funds/sep-2025/edelweiss-bse-sensex-etf_96613.html

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