With several newly listed companies delivering strong gains in recent years, IPO investing has become increasingly popular among retail investors. However, identifying promising IPOs and tracking newly listed stocks can be difficult for individual investors.Highlighting a potential solution, Edelweiss Mutual Fund CEO Radhika Gupta recently pointed to the Edelweiss Recently Listed IPO Fund, which offers exposure to newly listed companies through a professionally managed portfolio.Also Read | Smallcap funds beat all equity mutual fund categories over 3 months. Should investors change SIP strategy?"Diversification? This portfolio overlaps with few other schemes, because it focuses on recently listed IPOs. It's long term track record speaks to the quality of IPO selection. Can it be volatile (mid-small-micro), yes? Hence most suited to do a SIP. Rather than figuring out which IPO to invest in every month, let a fund do it for you! Fund: Edelweiss Recently Listed IPO,” Gupta posted on her social media account X.https://x.com/iRadhikaGupta/status/2068950373910581371?s=20According to Gupta, the fund may overlap with some other equity schemes, but it has a distinct investment approach as it focuses specifically on recently listed IPOs.She noted that the fund's long-term track record reflects the quality of its IPO selection process. Rather than trying to identify and invest in promising IPOs every month, investors can use the fund as a vehicle to gain exposure to this segment of the market.Gupta also pointed out that investors should be prepared for volatility. Since the fund invests across mid-cap, small-cap and micro-cap companies, its performance can be more volatile than diversified large-cap-oriented funds.Given this higher volatility, she believes the fund is best suited for investments through a Systematic Investment Plan (SIP). Investing through SIPs allows investors to spread investments over time and navigate market fluctuations more effectively than making large lump-sum investments.Launched on February 22, 2018 the fund had an AUM of Rs 1,003 crore as of May 2026 and is benchmarked against NIFTY IPO Index. It is managed by Bharat Lahoti and Bhavesh Jain. The fund had 54 stocks in its portfolio and is spread across 24 sectors with highest allocation in capital goods of around 14.99%.Among the top 10 stock holdings, the fund had the highest allocation in ICICI Prudential Asset Management Company of around 6.50%, followed by 5.84% in LG Electronics India and 5.17% in Atlanta Electricals.Also Read | Vedanta Aluminium set for largecap upgrade in H2 CY26; power, oil & gas arms may turn smallcaps According to the monthly factsheet, the fund invests in recent 100 IPOs to capture better access, right selection and post-listing gains while investing in IPOs. It follows a rigorous bottom-up research process while selecting stocks. It invests in companies across sectors with a bias towards small and mid-caps that promises growth.Since its inception, the fund has delivered a return of 14.51%. In the last one year, the fund delivered a return of 22.97% against a loss of 1.93% by the benchmark. In the last six months, the fund posted a gain of 14.66% compared to a loss of 7% by the benchmark.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)