HDFC Nifty LargeMidcap 250 Index Fund Launched by HDFC Mutual Fund: Know Key Details of NFO Here!
HDFC Nifty LargeMidcap 250 Index Fund offers exposure to large and mid-cap stocks, with investments starting from Rs 100.
HDFC Mutual Fund has launched the HDFC Nifty LargeMidcap 250 Index Fund, an open-ended scheme designed to replicate the Nifty LargeMidcap 250 Index (Total Return Index - TRI). The New Fund Offer (NFO) will be open for subscription from September 20, 2024, and will close on October 04, 2024. The fund aims to generate returns that are aligned with the performance of the Nifty LargeMidcap 250 Index (TRI), subject to tracking errors. Investors can invest with a minimum amount of Rs. 100, and the fund offers a simple and cost-effective way to gain exposure to both large and Mid-Cap stocks in the Indian equity market.
The investment objective of the HDFC Nifty LargeMidcap 250 Index Fund is to provide returns that closely match the Nifty LargeMidcap 250 Index, before deducting fees and expenses. The fund will invest 95 per cent to 100 per cent of its assets in the stocks that are part of this index. Additionally, a small portion, up to 5 per cent, may be allocated to debt securities, money market instruments, or units of debt mutual funds to manage liquidity and minimize risk. This structure ensures that the fund stays true to its index-tracking mandate while maintaining some flexibility for short-term needs.
For investors, the minimum initial investment required during the NFO is Rs. 100, with no upper limit. Additional investments can also be made in multiples of Rs. 100. Redemptions can be requested for a minimum amount of Rs 100.
The fund's benchmark is the Nifty LargeMidcap 250 Index (TRI), which tracks the performance of large and mid-cap stocks in India. After the NFO period ends, the scheme will re-open for continuous sale and redemption within five business days, allowing investors to buy or sell units at the applicable Net Asset Value (NAV). The fund is suitable for long-term investors seeking to build wealth through exposure to a diversified portfolio of large and mid-cap equities.
Management Commentary on the Launch of HDFC Nifty LargeMidcap 250 Index Fund
"With over two decades of expertise in Index Solutions, we are pleased to introduce the HDFC Nifty LargeMidcap 250 Index Fund. This scheme provides investors with a unique opportunity to participate in India’s growth story by offering exposure to both large and midcap stocks in a single product. By maintaining a 50:50 allocation, investors can benefit from the stability of large, established companies while capitalizing on the growth potential of emerging ones. We believe this strategy will be suitable to investors looking for a diversified and efficient way to access India's dynamic equity market,"said Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Company Limited.
Disclaimer: The article is for informational purposes only and not investment advice.