Publish Date:
HDFC Mutual Fund has introduced a new exchange traded scheme – HDFC Nifty 100 ETF
It is an open-ended scheme replicating/tracking NIFTY 100 Index.
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 100 Index, subject to tracking errors. There is no assurance that the investment objective of the Scheme will be realized.
Under normal circumstances, HDFC Nifty 100 ETF will hold an allocation of 95% to 100% of its assets in Securities covered by NIFTY 100 Index, and 0% to 5% in Debt Securities & Money Market Instruments, units of Debt Schemes of Mutual Funds.
HDFC NIFTY 100 ETF endeavours 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.
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.
HDFC Nifty 100 ETF’s performance will be benchmarked against NIFTY 100 Total Return Index.
The fund will be managed by Mr Krishan Kumar Daga and Mr Arun Agarwal.
The NFO opens for subscription on July 25, 2022 and closes on August 01, 2022. The scheme will reopen for continuous sale and repurchase 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 500 and in multiples of Re 1 thereafter.
Presently the Scheme does not offer any Plans/Options for investment.