Edelweiss IPO funds recently registered will only allow investment to RS 1 lakh a day per investor from February 1.

The limit will be on the lump sum investment, a systematic investment plan, a systematic transfer plan, and other investment mode.

However, the limit will not apply to a systematic investment plan or a systematic transfer plan starting before January 31.

“This is mostly to maintain portfolio liquidity and factoring in IPO pipes for the coming months. If there are several large IPOs to come and the liquidity is increasing we can review this limit,” said Niranjan Avasthi, Head and Marketing, Edelweiss Mutual Funds.

In a separate note, the House Fund said that the funds quickly grew and reached a scale where it was wise to limit the inflow.

Funds currently managing investor assets worth 1,100 crore.

Boom IPO.

The popularity of funds has grown recently thanks to a record year for IPO seen in 2021. The funds raised through the IPO in 2021 reached Rs 1.19 Lakh Crore.

The mandate of the IPO Fund listed Edelweiss is to participate in the IPO, where fund managers see opportunities, as well as in companies that tend to launch their IPO.

In the past one year period, the funds have given a refund of 57 percent, while in a three-year period, the funds have provided an annual return of a compound of 37 percent.

Retail investors showed a strong interest in the IPO market as a new age business such as Nykaa, Zomato and Paytm floating their IPOS in 2021.

For example, the IPO platform of NYKAA beauty and personal care subscribes 81.78 times with retail shares subscribing to 12.24 times.