HDFC Mutual Fund launches HDFC NIFTY100 Low Volatility 30 Index Fund: HDFC Asset Management Co. Ltd., investment manager to HDFC Mutual Fund (HDFC MF), one of India’s leading mutual fund houses, announces the launch of the HDFC NIFTY100 Low Volatility 30 Index Fund, a passively managed fund that aims to track the NIFTY100 Low Volatility 30 Total Returns Index.
The new fund offering (NFO) opens on June 21st and closes on July 5th, 2024. This scheme could be suitable for investors aiming to seek long-term wealth creation with exposure to the 30 least volatile stocks from the largecap parent Index, i.e. NIFTY 100.
The NIFTY 100 Low Volatility 30 TRI selects 30 stocks with lowest volatility in the last one year from the NIFTY 100 universe. The NIFTY100 Low Volatility 30 TRI Index has historically provided higher average rolling returns over 1, 3, 5 and 10 year horizons compared to the NIFTY 100 Index. (Source: NSE Indices Ltd data, internal calculations.)
Moreover, this Index has historically demonstrated resilience during periods of market stress i.e. it has fallen less than the NIFTY 100 TRI in each of the Financial Years’ where the NIFTY 100 TRI had a negative return. Such performance in both rising and falling markets creates an interesting case to consider investing in the HDFC NIFTY100 Low Volatility 30 Index Fund.
The Scheme offers investors a low-cost vehicle to gain exposure to India’s large-cap companies with potentially lower volatility and could be an opportunity for potential long-term wealth creation. The fund will be managed by Mr. Nirman Morakhia and Mr. Arun Agarwal.
The minimum investment amount during the NFO period and the continuous offer period (after the scheme re-opens for repurchase and sale) is Rs. 100 and any amount thereafter. Allotment of units will be done after deduction of applicable stamp duty and transaction charges, if any.
Commenting on the launch, Mr. Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Company Limited, said, “At HDFC Mutual Fund, our mission to be the wealth creator for every Indian continues to drive us to offer a wide range of investment solutions to meet the needs of investors. We remain committed to delivering excellence in Index Solutions, leveraging our 20+ years of expertise in this space. We are excited to introduce HDFC NIFTY100 Low Volatility 30 Index Fund, which provides investors a simplified way to deal with market volatility.”
Know More About HDFC AMC
HDFC Asset Management Company Limited (HDFC AMC) is an Investment Manager to HDFC Mutual Fund, one of the largest mutual funds in the country. It was incorporated under the Companies Act, 1956, on 10th December 1999 and was approved to act as an Asset Management Company for HDFC Mutual Fund by SEBI on 3rd July 2000.
It has other SEBI licenses viz. PMS / AIF. HDFC AMC manages a diversified asset class mix across Equity and Fixed Income/Others. It also has a countrywide network of branches along with a diversified distribution network comprising Banks, Independent Financial Advisors and National Distributors.
NIFTY Disclaimer: HDFC NIFTY100 Low Volatility 30 Index Fund “(the Product)” offered by HDFC Asset Management Company Limited is not sponsored, endorsed, sold or promoted by NSE INDICES LIMITED (formerly known as India Index Services & Products Limited (IISL)).
NSE INDICES LIMITED does not make any representation or warranty, express or implied (including warranties of merchantability or fitness for particular purpose or use) and disclaims all liability to the owners of the Products or any member of the public regarding the advisability of investing in securities generally or in the Product linked to NIFTY100 Low Volatility 30 Index or particularly in the ability of the NIFTY100 Low Volatility 30 Index to track general stock market performance in India.
Please read the full Disclaimers in relation to NIFTY100 Low Volatility 30 Index in the SID of the Product.
HDFC Asset Management Co. Ltd. has been managing equity Index Solutions for over 20 years
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.
