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NFO alert: HDFC Mutual Fund launches HDFC NIFTY500 Multi-cap 50:25:25 Index Fund
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4 min read | Updated on August 06, 2024, 22:06 IST
SUMMARY
HDFC Mutual Fund introduces the HDFC NIFTY500 Multicap 50:25:25 Index Fund, replicating the Nifty500 Multicap Index. The NFO runs from August 6 to August 20, 2024, with no entry or exit load and a minimum investment of ₹100. The fund offers diversified exposure to large, mid, and small caps.
NFO alert - HDFC Mutual Fund launches HDFC NIFTY500 Multicap 50:25:25 Index Fund
HDFC Mutual Fund has launched an Open-Ended Index Fund, HDFC NIFTY500 Multicap 50:25:25 Index Fund. Aiming to replicate the Nifty500 Multicap 50:25:25 Index, the fund seeks to provide returns commensurate with the index, excluding fees and expenses.
The New Fund Offer (NFO) opened on August 6, 2024, and closes on August 20, 2024. With no entry or exit load, the fund has a minimum subscription amount of ₹100.
Management commentary on the launch
“At HDFC Mutual Fund, our mission to be the wealth creator for every Indian continues to drive us to offer a wide range of investment solutions to meet the needs of investors. We remain committed to delivering excellence in Index Solutions, leveraging our 20+ years of expertise in this space. This scheme enables investors to participate in India's growth story comprehensively by offering exposure to Nifty 500 stocks with an allocation of 50% to large caps, 25% to midcaps, and 25% to small caps. This differentiated approach aims to harness the stability of established companies while tapping into the growth potential of emerging ones,” said Navneet Munot, Managing Director and Chief Executive Officer, HDFC Mutual Fund.
How NIFTY500 Multicap 50:25:25 Index Fund is different from NIFTY500?
The main difference is only about the weightage of the large-cap, mid-cap and small-cap stocks. As the multi-cap has a 25% allocation to the mid-caps and 25% to the small-caps it helps to enhance the returns of the fund.
HDFC NIFTY500 Multicap 50:25:25 Index Fund
The investment objective of the HDFC NIFTY500 Multicap 50:25:25 Index Fund is to generate commensurate returns (before fees and expenses) with the performance of the Nifty500 Multicap 50:25:25 Index, subject to tracking error. There is no assurance that the investment objective of the scheme will be achieved.
Risk-o-meter
Funds Allocation
| Types of Instruments | Minimum Allocation (% of Net Assets) | Maximum Allocation (% of Net Assets) |
|---|---|---|
| Securities covered by Nifty500 Multicap 50:25:25 Index | 95 | 100 |
| Debt Securities & Money Market Instruments, Units of Debt Schemes of Mutual Funds | 0 | 5 |
Who should invest in this fund?
This NFO of HDFC NIFTY500 Multicap 50:25:25 Index Fund is suitable for investors who are seeking commensurate returns (before fees and expenses) with the performance of the Nifty500 Multicap 50:25:25 Index, over the long term. Also investment in equity securities covered by the Nifty500 Multicap 50:25:25 Index.
Benchmark
The performance of the HDFC NIFTY500 Multicap 50:25:25 Index Fund will be benchmarked to the performance of the Nifty500 Multicap 50:25:25 Index.
Peer Fund Schemes
| Scheme Name | AUM (Crore) | Expense Ratio (%) | 1 Year Returns (%) | 3 Years Returns (%) | Since Launch Ret (%) |
|---|---|---|---|---|---|
| Motilal Oswal Nifty 500 Index Fund | 1525.15 | 0.88 | 32.86 | 17.14 | 20.38 |
| HDFC BSE 500 Index Fund | 156.3 | 0.93 | 32.19 | - | 37.32 |
| Motilal Oswal S&P 500 Index | 3391.09 | 1.13 | 19.99 | 11.02 | 18.18 |
| Axis Nifty 500 Index Fund | - | - | - | - | -2.83 |
Who Manages the Scheme?
Nirman Morakhia has accumulated over 14 years of experience in equity dealing. Since March 15, 2018, he has been associated with HDFC Asset Management Company Limited, managing Assets Under Management (AUM) of ₹31,939.14 crores across 15 schemes. Before this role, from November 19, 2007, to March 14, 2018, he served as an Equity Dealer at Mirae Asset Global Investment Management India Pvt. Ltd.
Arun Agarwal is a seasoned fund manager at HDFC Mutual Fund, overseeing assets under management (AUM) of ₹1,42,732 crore across 25 schemes. He holds a Bachelor of Commerce degree and is a Chartered Accountant. Before joining HDFC Asset Management Company Limited, Mr. Agarwal gained extensive experience working with prominent financial institutions, including SBI Funds Management Pvt. Ltd., ICICI Bank Limited, and UTI Asset Management Pvt. Ltd.
Conclusion
The HDFC NIFTY500 Multicap 50:25:25 Index Fund offers a balanced approach to equity investment, with diversified exposure and low costs. It is suitable for investors seeking long-term returns aligned with the Nifty500 Index.
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