HDFC Mutual Fund is launching 2 new fund offers (NFOs) today - HDFC Nifty 100 Index Fund and HDFC Nifty100 Equal Weight Index Fund.
As per the asset management company (AMC), both NFOs are aimed at investors who are looking for returns that are commensurate with the performance of the Nifty100 index and Nifty100 Equal Weight index respectively, subject to tracking errors.
While the Nifty100 index gives weights based on free-float market cap, the Nifty100 Equal Weight index gives equal weights to all constituents, the AMC stated in a press release.
Commenting on the launch of these two NFOs, Navneet Munot, MD & CEO, HDFC AMC said, “Launch of these two NFOs is a part of our endeavor to expand our product bouquet in HDFC MF Index Solutions and allow customers easy access to India’s 100 largest companies. HDFC AMC has been one of the oldest players in index solutions with proven capability.”
The NFO opens on February 11, 2022, and closes on February 18, 2022.
These NFOs provide an easy way to gain exposure to India’s large caps, which represent 68 percent of the Indian listed space by market cap as on December 31, 2021, added the press release.
About HDFC AMC
Incorporated in 1999, HDFC AMC holds ₹4.48 crore in assets under management (AMC).
HDFC AMC as an investment manager to schemes of HDFC Mutual Fund manages diversified asset class mix across Equity and Fixed Income/Others. It also has a countrywide network of branches along with a diversified distribution network comprising Banks, Independent Financial Advisors and National Distributors.
Among peers, Axis Nifty100 Index Fund which has a fund size of ₹683 crore has given 18.5 percent returns to its investors in the last 1 year as against an 18.9 percent gain in Nifty 100 TRI. In the last three years, the index fund has given annualised returns of 58 percent and returns of 20 percent since its inception.
Another Nifty 100 index fund, IDFC Nifty 100 index fund is also going to launch on Feb 24, 2022.
Meanwhile, Sundaram Nifty 100 Equal Weight Fund, which has a fund size of ₹53 crore has given 23 percent returns in the last 1 year. It has given an annualised return of 18 percent in the last 3 years, 12.7 percent in the last 5 years and 11 percent since its inception.