Mutual Fund News : HDFC Mutual Fund Introduces HDFC BANKING ETF

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HDFC Mutual Fund has launched a new scheme - HDFC BANKING ETF.

It is an open ended Exchange Traded Fund that will track the Nifty Bank Index.

Accordingly, the investment objective of the scheme is to provide investment returns that, before expenses, closely correspond to the total returns of the Securities as represented by the NIFTY Bank Index subject to tracking errors. There is no assurance that the investment objective of the Scheme will be realized.

Under normal circumstances the scheme will invest at least 95% of its assets in securities covered by the Nifty Bank Index. A very small portion (0% to 5% of its assets) may be kept in debt and money market instruments.

HDFC Banking ETF would invest in stocks comprising the underlying index and endeavor to track the benchmark index. The Fund may also invest in debt & money market instruments, in compliance with regulations to meet liquidity and expense requirements.

HDFC Banking ETF endeavors to invest in stocks forming part of the underlying index in the same ratio as per the index to the extent possible and to that extent follows a passive investment strategy, except to the extent of meeting liquidity and expense requirements.

It will invest in the securities included in its underlying index regardless of their investment merit. The AMC does not attempt to individually select stocks or to take defensive positions in declining market.

The scheme’s performance will be benchmarked against Nifty Bank Total Return Index.

It will be managed by Mr Krishan Kumar Daga.

The NFO opens for subscription on August 10, 2020 and closes on August 14, 2020.

The Units of the Scheme is proposed to be listed on National Stock Exchange of India Limited, and BSE Limited.