HDFC MF launches HDFC NIFTY100 Low Volatility 30 Index Fund: Check details

Nifty100 Low Volatility 30 Index Fund targets large-cap low-volatility stocks within the NIFTY 100 Low Volatility 30 Index

HDFC Mutual Fund has launched a new open-ended index fund called the HDFC NIFTY100 Low Volatility 30 Index Fund. The fund will track the NIFTY 100 Low Volatility 30 Index (TRI), to generate returns comparable to the index before accounting for fees and expenses.

 

What is the Nifty100 Low Volatility 30 Index

 

It is a Smart Beta Index that focuses on low volatility and comprises a selection of stocks from Nifty100 listed on the National Stock Exchange (NSE). The index aims to provide exposure to companies with historically lower price fluctuations.

 

The new fund will be benchmarked against the NIFTY100 Low Volatility 30 Index (TRI), and its portfolio will consist of at least 95 per cent of the securities covered by TRI. The remaining 5 per cent can be invested in debt securities, money market instruments, and units of debt schemes of mutual funds. The minimum subscription amount for the HDFC NIFTY100 Low Volatility 30 Index Fund is Rs 100, and the new fund offer will be open until July 5th, 2024.

 

Who should invest?

 

The HDFC NIFTY100 Low Volatility 30 Index Fund is ideal for investors looking to gain exposure to stocks with lower volatility. This fund is suitable for those who:

 

Aim to invest in companies with historically lower price fluctuations.

 

Desire a diversified portfolio of low-volatility stocks.

 

Prefer a passive investment strategy based on Smart Beta indices.

 

Have a long-term investment perspective focused on wealth creation.

 

The NIFTY100 Low Volatility 30 TRI Index has historically outperformed the NIFTY 100 Index in terms of average rolling returns over 1, 3, 5, and 10-year periods. As the market continues to experience fluctuations, the new HDFC low-volatility index fund offers investors an opportunity to participate in the equity market while potentially mitigating some of the risks associated with market volatility.