These NFOs provide an easy way to gain exposure to India’s large caps. Indian large caps represent 68% of the Indian listed space by market cap as of December 31, 2021.
HDFC Asset Management announced the launch of twin New Fund Offers (NFOs), HDFC NIFTY 100 Index Fund and HDFC NIFTY100 Equal Weight Index Fund. HDFC NIFTY 100 Index Fund and HDFC NIFTY100 Equal Weight Index Fund are introduced as part of the HDFC MF Index Solution, providing an easy way to gain exposure to India’s large caps, the AMC said in a statement.
The company claims that both NFOs are aimed at investors who are looking for returns that are commensurate with the performance of the NIFTY 100 Index and NIFTY100 Equal Weight Index respectively, subject to tracking errors.
Key Dates
The NFOs will open on February 11, 2022, and close on February 18, 2022. The AMC said these NFOs provide an easy way to gain exposure to India’s large caps. Indian large caps (as represented by constituents of the NIFTY 100 Index) represent 68 per cent of the Indian listed space by market cap as of December 31, 2021.
Navneet Munot, MD and CEO, HDFC AMC said, “These two NFO’s will allow customers easy access to India’s 100 largest companies. HDFC AMC has been one of the oldest players in index solutions with proven capability.”
The company claims that the twin NFOs provide strategies to invest in the largest companies in India that are part of the NIFTY 100 Index. While the NIFTY 100 Index will give weights based on free-float market cap, the NIFTY100 Equal Weight Index will give equal weights to all constituents. Winners keep changing and hence, investors can consider investing in both funds.
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