Business: HDFC Asset Management Company Limited has launched its latest offering HDFC Nifty 500 Multicap 50:25:25 Index Fund. The objective of this new open-ended scheme is to replicate/track the Nifty 500 Multicap 50:25:25 Index, thereby providing investors with diversification across market capitalisation.
Investment Objective
The fund tracks the Nifty 500 Multicap 50:25:25 Total Return Index, which seeks to offer long-term wealth creation from the growth potential of Nifty 500 stocks with different weightage methodology.
Benchmark
The performance of HDFC Nifty 500 Multicap 50:25:25 Index Fund will be benchmarked to the Nifty 500 Multicap 50:25:25 Total Return Index.
Fund Allocation
The scheme will invest in all 500 stocks of the NIFTY 500 index, with the weightage distributed as follows:
50 per cent in largecap stocks
25 per cent in midcap stocks
25 per cent in smallcap stocks
These weightages are reset on a quarterly basis to maintain the specified allocation.
Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Company said, “The scheme enables investors to participate comprehensively in India’s growth story by offering exposure to NIFTY 500 stocks, with 50 per cent invested in largecap, 25 per cent in midcap and 25 per cent in smallcap stocks. This differentiated approach aims to harness the stability of established companies while tapping the growth potential of emerging companies.”
Investment Period
The new fund offer (NFO) will be open for subscription from August 6 to August 20, 2024 … Fund Managers
Nirman Morakhia and Arun Agarwal will manage the fund. Minimum Investment
The minimum investment amount is Rs 100 and there is no maximum limit.
Tax Efficiency
The quarterly reset mechanism helps maintain allocation efficiently and is tax-effective in the long term.
Who Should Invest
Investors looking for wealth creation in the long term by investing in Nifty 500 stocks
Investors looking to diversify across market capitalisation through a single scheme
Investors preferring passive investment strategy with regular rebalancing
Risk Profile
As an equity index fund, this scheme is likely to have a high risk profile. Investors should consult the SID for detailed risk information, the company said in a press release.
Note
Mutual fund investments are subject to market risks.
