HDFC Mutual Fund Launches Three Index Schemes, NFO Open Till April 18

HDFC S&P BSE 500 Index Fund, HDFC NIFTY Midcap 150 Index Fund, and HDFC NIFTY Smallcap 250 Index Fund offers diversified exposure to large-, mid-, and small-cap space. The new fund offer will remain open till April 18, 2023. Minimum subscription is Rs. 100.

Outlook Money

Updated on: 12 April 2023 4:07 pm

HDFC Asset Management Company (AMC) has launched three index schemes – HDFC S&P BSE 500 Index Fund, HDFC NIFTY Midcap 150 Index Fund, and HDFC NIFTY Small-cap 250 Index Fund.

The new fund offer (NFO) opened on April 6, 2023 and will close on April 18, 2023. The open-ended schemes will replicate the S&P BSE 500, NIFTY Midcap 150 Index, and NIFTY Smallcap 250 Index, respectively, HDFC AMC announced in a press release.

There are no entry and exit loads, and the minimum subscription amount is Rs. 100. The schemes offer both regular and direct plans, but only growth option. There are no dividend options, HDFC AMC informed in a scheme information document.

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The schemes will re-open for continuous sale and repurchase within five business days from the date of allotment of units under the NFO, HDFC AMC further said in the scheme information document.

According to HDFC AMC, the schemes are suitable for investors who are seeking returns commensurate with the performance of the respective indices over the long term, and want to invest in equity securities covered by the respective indices.

HDFC AMC said the three index funds will offer diversified exposure to large-, mid- and small-cap segments, “but with lower volatility than the vast majority of the underlying constituents.”

“The index funds tracking these respective indices offer a simple and efficient way to gain exposure to large-, mid- and small-caps through a single instrument. Moreover, winners among large-cap, mid-cap and small-cap indices change from year to year, and hence, investors can get exposure to all three market cap segments through these index funds,” HDFC AMC said in a press statement.

Navneet Munot, managing director and chief executive officer, HDFC Asset Management Co. Ltd. said in a statement: “With our ‘investor first’ approach in mind, HDFC Mutual Fund continues to offer varied investment solutions to investors. We are one of the pioneers in the passive funds space with over 20 years of experience. We are further expanding our product bouquet with the launch of these three new index funds. These fund will allow investors to participate in the India growth story while diversifying across market caps.”