HDFC AMC - HDFCNIFIT

About HDFC NIFTY IT ETF

• HDFC NIFTY IT ETF (exchange-traded fund) is an open ended scheme that tracks NIFTY IT Index (TRI).
• The ETF invests in top IT sector stocks and replicates the performance of the NIFTY IT Index (TRI), subject to tracking errors.
• The ETF is managed by HDFC Mutual Fund house.
• The HDFC NIFTY IT ETF was established on November 16, 2022.
• Arun Agarwal and Abhishek Mor are the fund managers for HDFC NIFTY IT ETF. Agarwal has been managing the fund since inception, while Mor has been managing it since February 15, 2023.
• The ETF is listed on the NSE and BSE, and it can be traded during market hours.
• The ETF has given Compounded Annualised Growth Return (CAGR) of 14.06% since inception, as of June 28, 2024.
• In the last one year the ETF’s CAGR stood at 24.56%.
• The ETF’s total assets under management (AUM) stood at ₹50.91 crore (as of June 30, 2024).
• The ETF is an effective way to bet on IT stocks as it offers an opportunity for investment in top IT companies listed on the NSE through a single instrument.
• The advantage of investing in HDFC NIFTY IT ETF is that it offers a single tool to invest in multiple IT stocks, which gives a decent exposure to investors to the high-growth sector.
• HDFC NIFTY IT ETF offers a long-term wealth creation opportunity through a single investment instrument allowing the investors to participate in the performance of the IT sector.

Investment Objective & Benchmark

• The ETF aims to mirror the performance of the Nifty IT Total Return Index (TRI). The HDFC Nifty IT ETF offers an opportunity to investors to invest in dynamic Indian IT firms.
• The ETF tracks the performance of the Nifty IT Total Return Index (TRI). This allows the investors to potentially earn returns similar to the Nifty IT index, which represents the performance of top Indian IT companies.

Asset Allocation & Portfolio Composition

The ETF has all the top Indian IT companies in its portfolio. The IT heavyweights, like Infosys and TCS, have the highest weightage in the ETF, followed by HCL Technologies and Tech Mahindra.

Top 10 Holdings (As of March 31, 2024)

• Infosys: 26.80%
• Tata Consultancy Services: 24.86 %
• HCL Technologies: 10.34 %
• Tech Mahindra: 9.97%
• Wipro: 8.52%
• LTIMindtree: 5.71%
• Persistent Systems: 5.17%
• Coforge: 4.24%
• Mphasis: 2.50%
• L&T Technology Services: 1.90%