HDFC Asset Management Company Limited, Investment Manager to the schemes of HDFC Mutual Fund, one of India’s leading mutual fund house with Rs. 4.26 lakh crores in assets under management announces the launch of New Fund Offer (NFO) – HDFC NIFTY50 Equal Weight Index Fund (“the Fund”).
The Fund will aim to track the performance of constituents forming part of the parent index, the NIFTY 50 Index, where each company in the index shall be assigned equal weights as per the underlying index. HDFC AMC has experience of managing index funds for over 19 years, and is one of the large investment managers in terms of AUM in index fund category.
HDFC NIFTY50 Equal Weight Index Fund aims to offer the opportunity to capitalize on broad-based economic growth in a disciplined manner. The Fund will take exposure to all the stocks in the index with an intent to participate in the growth story with no market-cap bias. HDFC NIFTY50 Equal Weight Index Fund will offer exposure to Top 50 large companies on the NSE with equal weight to each stock. The equal weight aims to reduce risk of stock/ sectoral concentration. HDFC NIFTY50 Equal Weight Index Fund is suitable for investors looking for a simple yet smart way of investing in Top 50 companies.
NIFTY50 Equal Weight Index (“the Index”) offers a disciplined investment approach with no bias where each stock contributes equally for the overall index growth. The NIFTY50 Equal Weight Index is automatically rebalanced every quarter and reconstituted semi-annually in line with NIFTY 50 Index. The Index also represents smart and intelligent investing through “Auto Quarterly Rebalancing” and thus enabling “Auto Profit Booking”. The New Fund Offer (NFO) will open on August 4, 2021, and will close on August 13, 2021. The Fund will re-open for continuous sale and repurchase within 5 business days from the date of allotment of units under NFO.