Mutual Fund News : HDFC Mutual Fund Introduces HDFC NIFTY Private Bank ETF

Publish Date:

HDFC Mutual Fund has Introduced a new scheme – HDFC NIFTY Private Bank ETF

It is an open-ended scheme replicating/tracking NIFTY Private Bank 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 Private Bank Index, subject to tracking errors. There is no assurance that the investment objective of the Scheme will be realized.

Under normal circumstances, HDFC NIFTY Private Bank ETF will hold an allocation of 95% to 100% of its assets in Securities covered by NIFTY Private Bank 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 Private Bank 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 Private Bank ETF’s performance will be benchmarked against NIFTY Private Bank 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 Private Bank ETF: Capturing Growth Potential of Private Banks in India]