HDFC New Index Fund Offer:Subscription to a new index fund of the country’s leading mutual fund company HDFC Mutual Fund has opened from today i.e. 20 September 2024. Launched under the name of HDFC Nifty LargeMidcap 250 Index Fund, this fund is claiming to provide a better option for investing in equity. HDFC Nifty Large Midcap 250 Index Fund is an open-ended equity scheme, which will track the Nifty LargeMidcap 250 Index. This fund is giving investors an opportunity to invest in shares of large and midcap companies related to India’s growth story.
Highlights of HDFC Mutual Fund’s NFO
- Name of the Fund: HDFC Nifty LargeMidcap 250 Index Fund
- Category: Equity – Index
- Benchmarks: Nifty Large Midcap 250 Index (TRI)
- Opening date: September 20, 2024
- Closing Date: October 4, 2024
- Minimum Investment: Rs 100
- Risk Level: Very High
- Fund Manager: Nirman Morakhia and Arun Agarwal
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Objective of HDFC Nifty Large Midcap 250 Index Fund
HDFC Nifty Large Midcap 250 Index Fund aims to track the performance of the Nifty LargeMidcap 250 Index, which gives investors an opportunity to invest in a balanced manner in large and mid-sized companies according to market cap. This index fund will include the top 100 large-cap and 150 mid-cap companies listed on the NSE. Thus, this fund will cover 250 major companies of India, which will include companies from all sectors. Due to investment in both large and mid-cap companies, this fund will have a balance of stability and growth in its portfolio.
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What is positive in this index fund of HDFC
1.Diversification: Through this fund, investors will be able to take advantage of investing in the top 250 companies of the country by investing a very small amount. This will not only help in reducing the risk but will also provide an opportunity to become a partner in the growth of these top companies.
2. Representation of the Broad Market: By investing in HDFC Nifty Large Midcap 250 Index Fund, investors can take exposure to all the major and emerging sectors of the Indian economy.
3.Low Cost: Being an index fund, its expense ratio is expected to be quite low. This means that the cost of investing in it will be much lower than actively managed funds.
4. Ease of tracking investments: Being an index fund, it is easy to invest in this scheme and track its performance. It does not require frequent monitoring or active management.
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For whom is this HDFC index fund right?
HDFC Nifty Large Midcap 250 Index Fund can be a better option for those investors who want long-term growth on their investment and for this are interested in making balanced investments in large and midcap companies. Also, this fund is a good option for those investors who want to adopt a low-cost passive investment strategy, which does not require active involvement of the fund manager. Also, if you want to diversify your equity portfolio to take advantage of both the stability of large-cap companies and the growth of midcap companies, then you can also consider investing in it.
Opportunity to share in India’s equity market: Munot
Speaking on the NFO launch, Navneet Munot, MD & CEO, HDFC Asset Management Company said, “At HDFC Mutual Fund, we are committed to offering a comprehensive investment solution to meet the changing needs of our investors. With over two decades of experience in index solutions, we are pleased to introduce HDFC Nifty LargeMidcap 250 Index Fund. This scheme offers investors a unique opportunity to be a part of India’s growth journey by participating in both large and midcap stocks through a single product. With a 50:50 allocation, investors can benefit from the stability of large, established companies, as well as the growth prospects of emerging companies. We believe this strategy will prove to be right for investors who want to participate in India’s fast-growing equity market in a diversified and effective manner.”
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Focus on India’s growth story
Overall, the NFO of HDFC Nifty Large Midcap 250 Index Fund is a good option for investors who want to take advantage of India’s growth story. Due to investment in a balanced portfolio of large and midcap companies, this scheme can give good returns in the long term. But at the same time, it should not be forgotten that this fund has been placed in the very high risk category due to full exposure to equity. Therefore, only those investors should invest in it who are ready to take this risk for long-term growth. Before taking any decision regarding investment, keep in mind your financial goals and risk-taking ability.
(Disclaimer: The purpose of this article is only to provide information about the scheme, not to recommend investment. Take any investment decision only after consulting your investment advisor.)