HDFC Mutual Fund launches HDFC Nifty500 Multicap 50:25:25 Index Fund

• An open-ended scheme replicating/tracking the Nifty500 Multicap 50:25:25 Index
• The New Fund Offering opens on August 6^th and closes on August 20^th, 2024
• The Nifty500 Multicap 50:25:25 TRI has historically outperformed the NIFTY 500 TRI over 1, 3, 5, and 10-year periods, demonstrating its potential for long-term wealth creation (data as of Jun 28, 2024)

NE BUSINESS  BUREAU

MUMBAI, AUGUST 4

HDFC Asset Management Co. Ltd., investment manager to HDFC Mutual Fund (HDFC MF), one of India’s leading mutual fund houses, announces the launch of the HDFC Nifty500 Multicap 50:25:25 Index Fund, a passively managed fund that aims to track the Nifty500 Multicap 50:25:25 Total Returns Index. The New Fund Offering (NFO) opens on August 6^th and closes on August 20^th, 2024. The scheme could be suitable for investors seeking long-term wealth creation from the growth potential of NIFTY 500 stocks, but with a differentiated weightage method.

The HDFC Nifty500 Multicap 50:25:25 Index Fund provides investors with diversification across market caps through a single scheme. The Nifty500 Multicap 50:25:25 Index comprises all 500 stocks from the NIFTY 500 index, with weightages to largecaps, midcaps and smallcaps set to 50%, 25% and 25% respectively. Furthermore, the weights to each segment are reset every quarter~. Quarterly reset of weights allows investors to maintain 50%, 25% and 25% allocation to largecap, midcap and smallcaps in a convenient and tax-efficient manner over the long term. The Nifty500 Multicap 50:25:25 TRI has historically outperformed the NIFTY 500 TRI over 1, 3, 5, and 10-year periods, demonstrating its potential for long-term wealth creation (data as of Jun 28, 2024).

The new fund will be managed by Nirman Morakhia and  Arun Agarwal. Investors may participate with a minimum investment of Rs. 100 during both the New Fund Offer (NFO) period and the continuous offer period, which commences after the scheme reopens for purchase and sale. There is no maximum limit on the investment amount and the final unit allotment will be subject to the deduction of applicable stamp duty and transaction charges, where applicable.

Commenting on the launch, Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Company Limited, said, “At HDFC Mutual Fund, our mission to be the wealth creator for every Indian continues to drive us to offer a wide range of investment solutions to meet the needs of investors. We remain committed to delivering excellence in Index Solutions, leveraging our 20+ years of expertise in this space. This scheme enables investors to participate in India’s growth story comprehensively by offering exposure to Nifty 500 stocks with an allocation of 50% to largecaps, 25% to midcaps, and 25% to smallcaps. This differentiated approach aims to harness the stability of established companies while tapping into the growth potential of emerging ones.”