Mumbai: HDFC Asset Management Company Limited, Investment Manager to the schemes of HDFC Mutual Fund, one of India’s leading mutual fund house with Rs 4.26 lakh crores in assets under management announces the launch of New Fund Offer (NFO) – HDFC NIFTY50 Equal Weight Index Fund (“the Fund”).

The Fund will aim to track the performance of constituents forming part of the parent index, the NIFTY 50 Index, where each company in the index shall be assigned equal weights as per the underlying index.

HDFC AMC has experience of managing index funds for over 19 years, and is one of the large investment managers in terms of AUM in index fund category.

HDFC NIFTY50 Equal Weight Index Fund aims to offer opportunity to capitalise on broad based economic growth in a disciplined manner. The Fund will take exposure to all the stocks in the index with an intent to participate in the growth story with no market-cap bias. HDFC NIFTY50 Equal Weight Index Fund will offer exposure to Top 50 large companies on the NSE with equal weight to each stock.

The equal weight aims to reduce risk of stock/ sectoral concentration. HDFC NIFTY50 Equal Weight Index Fund is suitable for investors looking for a simple yet smart way of investing in Top 50 companies.

NIFTY50 Equal Weight Index (“the Index”) offers disciplined investment approach with no bias where each stock contributes equally for the overall index growth. The NIFTY50 Equal Weight Index is automatically rebalanced every quarter and reconstituted semi-annually in line with NIFTY 50 Index.

The Index also represents smart and intelligent investing through “Auto Quarterly Rebalancing” and thus enabling “Auto Profit Booking”. The New Fund Offer (NFO) will open on August 4, 2021, and will close on August 13, 2021.

The Fund will re-open for continuous sale and repurchase within 5 business days from the date of allotment of units under NFO.

“Corporate profitability had sluggish growth over last couple of years. However, the corporate profitability has remarkably improved recently and outlook looks promising going forward. After a narrow rally due to polarised market for last 2-3 years in recent past, market is in broad based phase now on the back of improving corporate profitability. In the current market dynamics, we believe that HDFC NIFTY50 Equal Weight Index Fund merits due consideration.”

Krishan Kumar Daga
Senior Fund Manager
HDFC AMC

HDFC NIFTY50 Equal Weight 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 Product or any member of the public regarding the advisability of investing in securities generally or in the Product linked to NIFTY50 Equal Weight Index or particularly in the ability of the NIFTY50 Equal Weight Index to track general stock market performance in India. Please read the full Disclaimers in relation to the NIFTY50 Equal Weight Index in the in the Offer Document of the Product.”

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