The launch of these schemes will expand the suite of HDFC Mutual Fund Index Solutions, and allow investors to participate in the India growth story in a diversified manner, the fund house said.
The New Fund Offer is open and will close for subscription on February 13.
The scheme will be managed by Abhishek Mor, Nirman Morakhia and Arun Agarwal.
The minimum subscription amount for investment in these schemes is Rs 500 per application and in multiples of Re 1 thereafter.
The investment objective of the scheme is to provide returns that are commensurate (before fees and expenses) with the performance of the underlying index [S&P BSE 500 Index (TRI), NIFTY Midcap 150 Index (TRI), NIFTY Smallcap 250 Index (TRI) respectively] over long term, subject to tracking error.
The respective indices offer diversified exposure to large, mid and smallcap segments, but with lower volatility than the vast majority of their underlying constituents. Thus, the ETFs tracking these respective indices offer a simple and efficient way to gain exposure to large, mid and smallcaps. Moreover, winners among largecap, midcap and smallcap indices change from year to year, and hence investors can get exposure to all 3 market cap segments through these ETFs, HDFC MF said.“With our ‘Investor first’ approach in mind, HDFC Mutual Fund endeavours to offer best in class investment solutions to the investors. We are one of the pioneers of the Index Solutions space, with over 20+ years of experience managing passive funds and 12+ years of managing ETFs. The launch of these 3 new ETFs will allow investors to participate in the India growth story while diversifying across market caps,” said Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Co. Ltd.
