HDFC Mutual Fund introduces schemes for the large-cap, mid-cap, and small-cap markets.
The HDFC S&P BSE 500 Index Fund, HDFC NIFTY Midcap 150 Index Fund, and HDFC NIFTY Smallcap 250 Index Fund are the three new mutual fund schemes introduced by HDFC Mutual. The three investment strategies permit investors to diversify their portfolios across the large-, mid-, and small-cap segments.
The subscription period for these schemes began on April 6, 2023 and will end on April 18, 2023. These programmes are appropriate for investors with a low risk tolerance and a desire to diversify their portfolios.
The three index provides investors with exposure to all three market capitalization segments.
- Commenting on the inauguration, Navneet Munot, Managing Director and Chief Executive Officer of HDFC Asset Management Co. Ltd., stated, “With our ‘Investor first’ philosophy in mind, HDFC Mutual Fund continues to provide investors with a variety of investment options. We have over 20 years of experience in the passive funds industry, making us one of the industry’s pioneers. With the introduction of these three new Index Funds, we are expanding our product offering. These funds will enable investors to participate in India’s growth narrative while maintaining diversification across market capitalizations.”
Key characteristics of the new HDFC mutual fund scheme - Appropriate for investors with a minimal risk tolerance.
- Investors seeking commensurate returns (before inflation commissions and expenses) with the long-term performance of the underlying index [S&P BSE 500 Index (TRI),NIFTY Midcap 150 Index (TRI), and NIFTY Smallcap 250 Index (TRI), respectively], subject to tracking error.
- Those who wish to invest in securities encompassed by the underlying Index have a solid investment option.
- There is no ‘entrance load’ or ‘exit load’ in the scheme. This means that investors are not required to pay any fees in order to invest or withdraw from the scheme.
The HDFC AMC
HDFC Mutual Fund is managed by HDFC Asset Management Company Limited (HDFC AMC). The mutual fund was incorporated under the Companies Act of 1956 on December 10, 1999, and received SEBI’s sanction to operate as an AMC on July 3, 2000. Other SEBI licences include PMS and AIF.
Additionally, the asset management firm manages a diverse blend of other asset classes in the equity market. The company maintains a vast branch network as well as a diverse distribution network comprised of banks, financial advisors, and national distributors.
