Mutual Fund News : HDFC Mutual Fund Introduces HDFC NIFTY Smallcap 250 Index Fund

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HDFC Mutual Fund has launched – HDFC NIFTY Smallcap 250 Index Fund

An open-ended scheme replicating/tracking NIFTY Smallcap 250 Index (TRI)

Accordingly, the investment objective is to generate returns that are commensurate (before fees and expenses) with the performance of the NIFTY Smallcap 250 Index, subject to tracking error. There is no assurance that the investment objective of the Scheme will be realized.

Under normal circumstances, HDFC NIFTY Smallcap 250 Index Fund will hold an allocation of 95% to 100% of its assets in Securities covered by NIFTY Smallcap 250 Index and 0% to 5% in Debt Securities & Money Market Instruments, units of Debt Schemes of Mutual Funds.

As per the Scheme Information Document, the investment strategy for HDFC NIFTY Smallcap 250 Index Fund would revolve around reducing the tracking error to the least possible through regular rebalancing of the portfolio, taking into account the change in weights of stocks in the Index as well as the incremental collections/redemptions in the Scheme. A part of the funds may be invested in debt and money market instruments, to meet the liquidity requirements.

HDFC NIFTY Smallcap 250 Index Fund’s performance will be benchmarked against NIFTY Smallcap 250 Total Returns Index (TRI)

The scheme will be managed by Mr Nirman Morakhia and Mr Arun Agarwal.

The NFO opens for subscription on April 06, 2023, and closes on April 18, 2023. The schemes will reopen for continuous sale and repurchase on Within five Business Days from the date of allotment.

The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 100/- and in multiples of any amount thereafter.

The scheme offers Regular Plan and Direct Plan each plan offers Growth option only.