Publish Date:
HDFC Mutual Fund has Introduced a new scheme – HDFC NIFTY IT ETF
It is an open-ended scheme replicating/tracking NIFTY IT Index (TRI).
Accordingly, the investment objective of the Scheme is to provide investment returns that, before expenses, correspond to the total returns of the Securities as represented by the NIFTY IT Index, subject to tracking errors. There is no assurance that the investment objective of the Scheme will be realized.
Under normal circumstances, HDFC NIFTY IT ETF will hold an allocation of 95% to 100% of its assets in Securities covered by NIFTY IT Index and 0% to 5% in Debt Securities & Money Market Instruments, units of Debt Schemes of Mutual Funds.
As per the Scheme Information Document, HDFC NIFTY IT ETF will 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.
Since the Scheme is an exchange traded fund, it will only invest in securities constituting the Underlying Index. However, due to corporate action in companies comprising the index, the Scheme may be allocated/allotted securities which are not part of the index. Such holdings would be rebalanced within 7 Business Days from the date of allotment/listing of such securities. The Scheme may also invest in debt & money market instruments, in compliance with regulations to meet liquidity and expense requirements.
HDFC NIFTY IT ETF’s performance will be benchmarked against NIFTY IT Index (TRI)
The scheme will be managed by Mr Krishan Kumar Daga and Mr Arun Agarwal
The NFO opens for subscription on October 28, 2022 and closes on November 09, 2022. The schemes will reopen for continuous sale and repurchase within 5 Business Days of allotment of units.
The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 500/- and in multiples of any amount thereafter.
Presently the Scheme does not offer any Plans/Options for investment.
[Read: HDFC NIFTY IT ETF: Aims to Benefit from the Growth of India’s leading IT Companies]