HDFC MF launches Nifty500 Multicap 50:25:25 Index Fund: Who should invest

Funds tracks Nifty500 Multicap 50:25:25 Total Returns Index, offering exposure across large, mid, and smallcap stocks

HDFC Asset Management Co. Ltd. has launched its latest offering: HDFC Nifty500 Multicap 50:25:25 Index Fund. This new open-ended scheme aims to replicate/track the Nifty500 Multicap 50:25:25 Index, providing investors diversity in market capitalisation.

Investment objective

The fund tracks the Nifty500 Multicap 50:25:25 Total Returns Index, seeking to offer long-term wealth creation from the growth potential of NIFTY 500 stocks with a differentiated weightage method.

Benchmark

The performance of the HDFC Nifty500 Multicap 50:25:25 Index Fund will be benchmarked to the Nifty500 Multicap 50:25:25 Total Returns Index.

Funds allocation

The scheme will invest in all 500 stocks from the NIFTY 500 index, with weightages distributed as follows:

50 per cent in largecap stocks

25 per cent in midcap stocks

25 per cent in smallcap stocks

These weightages are reset quarterly to maintain the specified allocation.

“This scheme enables investors to participate in India's growth story comprehensively by offering exposure to Nifty 500 stocks with an allocation of 50 per cent to large caps, 25 per cent to midcaps, and 25 per cent to smallcaps. This differentiated approach aims to harness the stability of established companies while tapping into the growth potential of emerging ones,” said Navneet Munot, managing director and chief executive officer of HDFC Asset Management Company.

Investment period

The new fund offer (NFO) will be open for subscription from August 6 to August 20, 2024.

Fund Manager

Nirman Morakhia and Arun Agarwal will manage the fund.

Minimum Investment

The minimum investment amount is Rs 100 and there is no maximum limit.

Tax efficiency

The quarterly reset mechanism helps maintain allocation efficiently and is tax-effective over the long term.

Who should invest

Investors seeking long-term wealth creation through exposure to NIFTY 500 stocks

Those looking for diversification across market caps through a single scheme

Investors who prefer a passive investment strategy with regular rebalancing

Risk profile

As an equity index fund, this scheme likely carries a high-risk profile. Investors should consult the SID for detailed risk information, Company said in a press release.

Note

Mutual fund investments are subject to market risks. Investors are advised to carefully read all scheme-related documents before investing.