NEW DELHI: HDFC Mutual Fund has announced the launch of HDFC Nifty Next 50 ETF and HDFC NIFTY 100 ETF, in a bid to to expand its suite of HDFC MF index solutions.
These funds offer exposure to the Indian large-cap space. The new fund offers will open for subscription on 25 July and close on 1 August.
According to the asset management company, the benchmark of HDFC Nifty Next 50 ETF – Nifty Next 50 Total Returns Index (TRI) offers diversification benefits at stock and sector level, while providing potential for higher risk-adjusted returns vs Nifty 50 in the long term. Further, this index offers higher potential for growth as it could contain the next league of NIFTY 50 constituents.
The benchmark of HDFC Nifty 100 ETF – Nifty 100 TRI offers exposure to the Indian large-cap space by focusing on top 100 companies based on full market capitalization, thus giving better market representation. It provides more balanced diversification than Nifty 50 Index, while tracking the behaviour of the combined portfolio of Nifty 50 and Nifty Next 50 Indices.
The objective of the funds is to provide investment returns that, before expenses, closely correspond to the total returns of the securities as represented by the Nifty Next 50 Index and Nifty 100 Index, subject to tracking errors, respectively. Both the funds will be managed passively, with investments in securities covered by the underlying index.
“HDFC AMC has been one of the oldest players in index solutions with proven capability, giving us a definite edge…The launch of these two funds is part of our endeavour to expand our offerings under ‘HDFC MF Index Solutions’, and provide exposure to customers to India’s large cap companies that have the ability of delivering competitive risk-adjusted returns,” said Navneet Munot, managing director and chief executive officer, HDFC Asset Management Co. Ltd.