On Friday, March 7, HDFC Mutual Fund launched the HDFC Nifty Top 20 Equal Weight Index Fund.
This open-ended index fund is designed to track the Nifty Top 20 Equal Weight Index TRI.
The fund is currently open for subscription, and investors can invest in it until March 21, 2025.
Once the New Fund Offer (NFO) period closes, the fund will reopen for sale and repurchase within 5 working days from the date of unit allocation.
Investment Details and Minimum Requirement
Investors can start investing in the HDFC Nifty Top 20 Equal Weight Index Fund with a minimum of ₹100.
There is no lock-in period or exit load, and the fund can be purchased in any amount after the initial investment.
The fund is managed by Nirman S Morakhia and Arun Agarwal. The benchmark for this fund is the Nifty Top 20 Equal Weight TRI, and the risk level is considered very high.
Fund Investment Strategy
The HDFC Nifty Top 20 Equal Weight Index Fund will invest between 95% and 100% in securities related to the Nifty Top 20 Equal Weight Index TRI.
A small portion of the fund, ranging from 0% to 5%, will be allocated to debt securities, including money market instruments and debt mutual funds.
This fund follows a passive investment strategy, meaning it aims to mirror the performance of the Nifty Top 20 Equal Weight Index TRI.
To reduce tracking errors, the fund will rebalance its portfolio regularly to align with any changes in the index’s stock weightages and new investments or redemptions.
Who Should Consider This Fund?
This fund is ideal for investors who seek long-term returns similar to the Nifty Top 20 Equal Weight Index TRI.
However, it’s important to note that the performance may be subject to tracking error.
It is also a good option for those interested in investing in the equity stocks of the Nifty Top 20 Equal Weight Index TRI.
