Edelweiss AMC launches US technology fund via GIFT City: Exit load, minimum investment explained

Edelweiss Asset Management has launched the US Technology Equity Fund via GIFT City, an open-ended fund investing mainly in the JPMorgan US Technology Fund. Aimed at long-term capital growth, it requires a minimum investment of $5,000 and is denominated in US dollars.

Edelweiss Asset Management has launched the Edelweiss US Technology Equity Fund through GIFT City, an open-ended fund of funds that will invest predominantly in JPMorgan Funds - US Technology Fund, which invests in technology-related US companies.

The fund aims to provide long-term capital growth through exposure to US companies across technology, media and communication services.

It will invest 95-100% of its assets in the underlying fund, with the remaining 0-5% allocated to cash and cash equivalents, according to the fund details shared by Edelweiss AMC.

The scheme is denominated in US dollars and has a minimum investment requirement of $5,000, effective October 6, 2026. Additional investments can be made in multiples of at least $500. The face value of each unit is $10.

Fees, exit load and redemption

The fund has an annual management fee of 0.75% for the direct plan and 1.60% for the regular plan. Operating expenses are listed at 0.30% of net asset value per annum. Investors will also bear the expenses of the underlying fund.

Subscriptions and redemptions are available daily, while redemption proceeds are scheduled to be paid within 10 business days.

An exit load of 2% applies to redemptions within 395 days. Redemptions after 395 days and up to 760 days attract a 1% exit load, while redemptions after 760 days are exempt from the exit load.

Who can invest?

The fund is open to resident investors, family offices, institutions, non-resident Indians (NRIs) and foreign nationals, subject to applicable eligibility requirements. A PAN is mandatory for investments.

Resident individuals investing overseas through the Liberalised Remittance Scheme (LRS) are subject to the Reserve Bank of India's annual remittance limit of $250,000 per financial year.

Under the current tax collection framework specified in the fund presentation, tax collected at source (TCS) applies at 20% on LRS remittances exceeding ₹10 lakh in a financial year, with the amount eligible for adjustment against tax liability or a refund through the income tax return, as applicable.

The scheme invests through GIFT City's International Financial Services Centre (IFSC), providing investors with exposure to an overseas fund rather than directly holding the underlying US stocks through this scheme.

Investors should account for currency movements, overseas market volatility, fund-level and underlying-fund expenses, and the possibility of capital loss. The fund's investment objective does not guarantee returns.