(ANI) HDFC Mutual Fund has announced the launch of two new exchange-traded funds - HDFC Nifty IT ETF and HDFC Nifty Private Bank ETF in order to expand their suite of "HDFC MF Index Solutions", which the fund house has been managing for the past 20 years.
These index funds offer a simple way to gain exposure to the growing IT and Private Bank space.
The captioned new fund offers opened on October 28, 2022, and will close on November 9, 2022, HDFC Mutual Fund said in a statement on Friday.
"HDFC Nifty IT ETF has the potential to capture the Global IT demand/requirements through India's leading IT companies and HDFC Nifty Private Bank ETF aims to capture the potential of private banks benefitting from India's economic growth," the statement said.
"The HDFC Nifty IT ETF seeks to benefit from structural tailwinds in tech spending including the growth of cloud computing, while the HDFC Nifty Private Bank ETF offers exposure to private banks which have better fundamentals relative to sector peers and valuations below long-term averages."
Both the funds consist of the 10 largest stocks in the respective sectors listed on the NSE, and they are rebalanced semi-annually in March and September.
The objective of the funds is to provide investment returns that, before expenses, correspond to the total returns of the Securities as represented by the Nifty IT Index and Nifty Private Bank Index, respectively.
"HDFC AMC has been one of the oldest players in index solutions with proven capability, giving a definite edge. Launch of HDFC Nifty IT ETF and HDFC Nifty Private Bank ETF are a natural extension to include these sector ETFs as part of our endeavour to offer diversified product bouquet for our investors," said Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management.