HDFC Mutual Fund has announced the launch of the HDFC Nifty LargeMidcap 250 Index Fund, a passively managed fund that aims to track the Nifty LargeMidcap 250 Total Returns Index.
The new fund Offer or NFO will open for subscription on September 20 and will close on October 4.
The investment objective of the scheme is to generate returns that are commensurate (before fees and expenses) with the performance of the NIFTY LargeMidcap 250 (TRI) (Underlying Index), subject to tracking error.
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The scheme could be suitable for individuals seeking to capitalize on the long-term growth prospects of both large and mid-sized companies through a unified investment approach. This approach provides investors with a simplified way to maintain balanced exposure to both market segments through a single, passively managed fund.
The HDFC Nifty LargeMidcap 250 Index Fund provides investors with diversified exposure across large and midcaps through a single scheme. The Nifty LargeMidcap 250 Index comprises all stocks from the Nifty 100 Index and Nifty Midcap 150 Index, with equal weightage to large caps and midcaps at 50% each. The weights to each segment are reset every quarter, allowing investors to maintain a 50:50 allocation to large cap and midcap stocks in a convenient and tax-efficient manner over the long term, according to a press release by the fund house.
The scheme will be benchmarked against NIFTY LargeMidcap 250 Index (TRI). The new fund will be managed by Nirman Morakhia and Arun Agarwal.
The minimum investment amount is of Rs 100 during both the New Fund Offer (NFO) period and the continuous offer period. There is no maximum limit on the investment amount, and the final unit allotment will be subject to the deduction of applicable stamp duty and transaction charges, where applicable.
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“At HDFC Mutual Fund, we remain committed to offer a suite of investment solutions to meet the evolving needs of our investors. With over two decades of expertise in Index Solutions, we are pleased to introduce the HDFC Nifty LargeMidcap 250 Index Fund. This scheme provides investors with a unique opportunity to participate in India’s growth story by offering exposure to both large and midcap stocks in a single product,” said Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Company
“By maintaining a 50:50 allocation, investors can benefit from the stability of large, established companies while capitalizing on the growth potential of emerging ones. We believe this strategy will be suitable to investors looking for a diversified and efficient way to access India’s dynamic equity market,” he added.
The scheme will allocate 95-100% in securities covered by NIFTY LargeMidcap 250 Index (TRI) and 0-5% in debt securities and money market instruments, units of debt schemes of mutual funds.
