August 5, 2021

HDFC Nifty50 Equal Weight Index Fund: NFO closes on 13 August 2021

Blog | Mutual Funds

HDFC Nifty Equal Weight Index fund is an open-ended scheme replicating or tracking Nifty50 Equal Weight Index.

Good to know

Nifty50 Equal Weight Index
This index represents an alternative weightage strategy to Nifty50. It includes the same companies as Nifty50 but the weightage given to these constituents is the same. Simply put, it measures performance of Nifty50 companies by allocating equal weightage to all of them.

Investment objective

The fund aims to track or replicate the performance and weightage of Nifty50 Equal Weight Index. It offers exposure to Nifty50 companies with equal weightage to each stock (2%). It will be a passively managed fund, which provides an opportunity to capitalise on broad-based economic growth. Beside this, the fund reduces stock or sectoral concentration by following equal weightage strategy.

More importantly, the Nifty50 Equal Weight Index has given better returns than the Nifty50 index over the last two decades. Out of the last 21 financial years, Nifty50 Equal Weight Index has outperformed Nifty50 index 13 times. Also, it is less expensive in terms of valuations (price-to-earnings ratio).

The fund is suitable for investors looking for a simple way of having exposure to top 50 companies.

Click here to invest in this NFO

Asset allocation

Instrument	Allocation (% of total assets)		Risk profile
Instrument	Minimum	Maximum	Risk profile
Securities covered by NIFTY50 Equal Weight Index	95	100	Very high
Debt securities and money market instruments	0	5	Low to medium

Scheme details

Name	HDFC Nifty50 Equal Weight Index Fund
Type	An open ended scheme replicating/tracking NIFTY50 Equal Weight Index.
Category	Index Fund
Expense ratio	Up to 1%
Benchmark	NIFTY50 Equal Weight Index
Load structure	Entry: Nil Exit: Nil
Fund manager	Mr. Krishnan Kumar Daga Mr. Arun Agarwal (co-manager)
Options	Growth plan
Minimum application amount (during NFO)	₹5,000 and in multiples of ₹1 thereafter
Additional application amount	₹1,000 and in multiples of ₹1 thereafter

Click here to invest in this NFO

This product is suitable for investors who are seeking*:	Riskometer
Returns that are commensurate (before fees and expenses) with the performance of the NIFTY50 Equal Weight Index over long term, subject to tracking error. Investment in securities covered by the NIFTY50 Equal Weight Index

*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

Note: The above information has been sourced from the Scheme Information Document provided by HDFC Asset Management Limited. To read the entire document, click here.

Disclaimer

RKSV Securities India Private Limited (ARN/Distributor - 107930; brand name Upstox) is the distributor of the mutual fund. Please consult your investment advisor before investing.

Mutual fund investments are subject to market risks, read all scheme related documents carefully.