Responding to growing investor interest in hybrid-style index funds, Radhika Gupta, MD and CEO of Edelweiss Mutual Fund, has said that while a regulatory framework for hybrid index funds doesn’t yet exist, Fund of Funds (FoFs) can accomplish much of that.

I have got a bunch of requests on creating hybrid index funds, and currently there is not a regulatory framework for that. I do believe FoFs accomplish much of that," Gupta wrote in a post on X.

She highlighted Edelweiss Mutual Fund’s new Multi Asset Omni FoF, which offers diversified exposure across asset classes with a static allocation: 65% in large and midcap equities, 20% equally divided between gold and silver, and 15% in debt.

Describing the approach, Gupta said, It’s a simple, powerful construct that works.