HDFC MF Submitted Draft SID With SEBI For New Index Fund Scheme

On September 02, 2024, HDFC Mutual Fund submitted a draft scheme information deed (SID) for HDFC Nifty India Digital Index Fund. HDFC Nifty India Digital Index Fund is an open-ended scheme replicating/tracking the Nifty India Digital Index (TRI). The scheme falls under the index fund category. The minimum investment in the NFO has been set at ₹100. The NFO open and close date has not been announced yet.

Investment Objective

The objective of the HDFC Nifty India Digital Index Fund is to generate returns that are commensurate (before fees and expenses) with the performance of the Nifty India Digital Index (TRI), subject to tracking error. However, there is no assurance that the scheme’s investment objective will be achieved.

Suitable for investors

• HDFC Nifty India Digital Index Fund scheme is suitable for investors seeking returns that are commensurate (before fees and expenses) with the performance of the Nifty India Digital Index (TRI) over the long term, subject to tracking error.
• Investment in equity securities is covered by the Nifty India Digital Index (TRI).

Investment Strategies For HDFC Nifty India Digital Index Fund

The HDFC Nifty India Digital Index Fund will be managed passively, aiming to mirror the performance of the underlying index while minimising tracking errors. The strategy involves regularly rebalancing the portfolio to align with changes in stock weights within the index and adjusting for any incremental inflows or outflows. A portion of the fund may be allocated to debt and money market instruments to address liquidity needs.

As an index fund, the Scheme will invest exclusively in the securities that make up the Underlying Index. However, corporate actions involving companies within the index may result in the Scheme receiving securities not included in the index. These non-index securities will be rebalanced out of the portfolio within 7 calendar days from their allotment or listing.

About Fund Manager

HDFC MF has appointed Nirman Morakhia as the Fund Manager for the scheme, who holds collectively over 16 years of experience in equity dealing. Nirman Morakhia has done an M.B.A – Financial Markets and a B.M.S (Mumbai University). A few of the schemes managed by Nirman Morakhia include the HDFC Arbitrage Fund (Arbitrage Assets) (co-managed Scheme), HDFC Balanced Advantage Fund (Arbitrage Assets) (co-managed Scheme), and HDFC Developed World Indexes Fund of Funds (co-managed Scheme).

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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.