HDFC Nifty500 Multicap 50:25:25 Index Fund Opened For Subscription on August 06, 2024

On August 06, 2024, HDFC Mutual Fund launched an index fund, HDFC Nifty500 Multicap 50:25:25 Index Fund. HDFC Nifty500 Multicap 50:25:25 Index Fund is an open-ended scheme replicating/tracking Nifty500 Multicap 50:25:25 Index.

Investment Objective

HDFC Nifty500 Multicap 50:25:25 Index Fund is likely to generate returns that are commensurate (before fees and expenses) with the performance of the Nifty500 Multicap 50:25:25 Index, subject to tracking error.

Benchmark

The Nifty500 Multicap 50:25:25 Index has been selected as the benchmark for the scheme. The above Index has been chosen as the benchmark since the Scheme will invest in stocks which are constituents of the Nifty500 Multicap 50:25:25 Index. Thus, the benchmark described above is the most suitable one for comparing the performance of the Scheme.

Where will the Scheme Invest?

HDFC Nifty500 Multicap 50:25:25 Index Fund will invest in securities as mentioned below:

• Equity and equity-related instruments
• Debt and Money Market Instruments
• Short Term Deposits
• Units of mutual funds.
• Derivatives – Equity
• Any other instruments as may be permitted by RBI / SEBI from time to time, subject to necessary regulatory approvals.

Scheme Investment Strategies

The HDFC Nifty500 Multicap 50:25:25 Index Fund will be invested in equities that make up the Underlying Index, subject to tracking error, and managed passively. The strategy is to minimise tracking error by periodically rebalancing the portfolio while accounting for changes in the weights of the companies in the Index and incremental collections/redemptions in the Scheme.

A portion of the funds could be invested in debt and money market products to satisfy liquidity needs. The Scheme will only invest in the securities that make up the Underlying Index because it is an index fund. Nonetheless, the Scheme may allocate securities that are not included in the index due to corporate actions at the businesses that make up the index.

Suitable for Kind of Investors

This scheme is suitable for investors who are seeking

• Returns that are commensurate (before fees and expenses) with the performance of the Nifty500 Multicap 50:25:25 Index over the long term, subject to tracking error.
• Investment in equity securities covered by the Nifty500 Multicap 50:25:25 Index.

The scheme was opened on August 06, 2024, and will likely close on August 20, 2024.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.