HDFC Nifty 500 Multicap 50:25:25 Index Fund NFOLaunched:HDFC Mutual Fund (HDFC MF), one of the country’s leading mutual fund asset management companies (AMC), has launched a new multicap index fund. The new fund offer (NFO) of this mutual fund scheme named HDFC Nifty 500 Multicap 50:25:25 Index Fund is opening for subscription on Tuesday, August 6. This is an open-ended mutual fund scheme that will replicate/track the Nifty500 Multicap 50:25:25 Total Returns Index. As its name suggests, it will be a passively managed mutual fund scheme.
NFO is open from 6th to 20th August
The New Fund Offer (NFO) of this new scheme will be on 6th AugustOpening in 2024 on 20 August,Will close in 2024. This scheme can be a better option for those investors who want to achieve growth by investing in stocks included in Nifty 500, but want to adopt a different method of weightage while doing so. HDFC Nifty500 Multicap 50:25:25 Index Fund will give investors the benefit of diversification in market cap through a single scheme. This fund will include all 500 stocks of the Nifty 500 index, in which largecap will have a weightage of 50%, while midcap and smallcap will have a weightage of 25-25 percent. Apart from this, the weightage of each segment will be reset once every three months. With the help of quarterly reset of weightage, the allocation of largecap, midcap and smallcap in the scheme’s portfolio will remain at 50%, 25% and 25% over the long term. The company believes that this will prove to be a convenient and tax-efficient way of investing.
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Nirman Morakhia, Arun Agarwal will be the fund managers
Nifty500 Multicap 50:25:25 TRI has historically outperformed Nifty500 TRI over 1, 3, 5 and 10 year periods, indicating its potential for wealth creation in the long term. These results are based on data till June 28, 2024. The fund managers of this new scheme will be Nirman Morakhia and Arun Agarwal. Investors can start their investment with a minimum of Rs 100 during this new fund offer and then after the scheme reopens for trading. There is no maximum limit on investment.
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The goal is to become a wealth creator for every Indian: Munot
Navneet Munot, Managing Director and CEO, HDFC Asset Management Company, said, “HDFC Mutual Fund is on a mission to become a wealth creator for every Indian. For this, we are introducing new investment options to meet the needs of our investors. We are committed to providing better options due to our expertise of more than 20 years in this field. This scheme provides investors an opportunity to participate in India’s growth story on a large scale by investing in Nifty 500 stocks with an allocation of 50% in largecap, 25% in midcap and 25% in smallcap. Through this fund, the company aims to take advantage of the growth potential of emerging companies as well as the strength of established companies.
(Disclaimer: The purpose of this article is only to provide information, not to give investment advice. Market fluctuations have a direct impact on the returns of mutual funds. Take any investment decision only after understanding the scheme thoroughly and taking the advice of your investment advisor.)
