Publish Date:
HDFC Mutual Fund has launched an open-ended fund of fund scheme - HDFC Developed World Indexes Fund of Funds.
The scheme will be investing its assets in units/shares of overseas Index Funds and/or ETFs which will in aggregate track the MSCI World Index.
HDFC Developed World Indexes Fund of Funds seeks to provide long-term capital appreciation by passively investing in units/shares of overseas Index Funds and/or ETFs which will in aggregate closely correspond to the MSCI World Index, subject to tracking errors. There is no assurance that the investment objective of the Scheme will be realized.
HDFC Developed World Indexes Fund of Funds is mandated to invest 95% to 100% of its assets in Units/Shares of overseas Index Funds and/or ETFs. 0% to 5% of the net assets can be held in Domestic Debt schemes (including Liquid & Overnight schemes), Debt & Money Market Instruments, including Tri Party Repo, Government Securities and Cash.
Accordingly, HDFC Developed World Indexes Fund of Funds will invest in Units/Shares of Index Funds and/or ETFs in a passive manner such that in aggregate it will endeavor to track the MSCI World Index (“the Benchmark Index”). Currently, the proposed Underlying Schemes viz. Index Funds/ ETFs are as follows:
|
Name of Index Fund/ETF |
Weights as on August 12, 2021 |
|
CSIF (IE) MSCI USA Blue UCITS ETF |
67.6 |
|
CSIF (Lux) Equity Europe |
19.1 |
|
CSIF (Lux) Equity Japan |
6.6 |
|
CSIF (Lux) Equity Pacific ex Japan |
3.3 |
|
CSIF (Lux) Equity Canada |
3.3 |
Note: The above scheme list may change on account of:
-
changes in constituents of the Benchmark Index which require addition/deletion to the list of Underlying Index Funds/ETFs Schemes.
-
change in attributes of any Underlying Index Funds/ETFs Scheme(s) which renders it unsuitable for meeting the objective of the Scheme.
Provided that in aggregate all Underlying Index Funds/ETF schemes will endeavor to track the Benchmark Index.
The AMC/Underlying Scheme(s) do not make any judgments about the investment merit of the underlying Indexes nor will it attempt to apply any economic, financial or market analysis.
HDFC Developed World Indexes Fund of Funds will invest in the units/shares of overseas equity mutual fund in accordance with the terms of issue of such overseas mutual fund(s). The amount of subscription received will be invested in one or more tranches, after setting aside some cash required for day-to-day management of the Scheme.
Though every endeavor will be made to achieve the objective of the Scheme, the AMC/Sponsors/Trustee do not guarantee that the investment objective of the Scheme will be achieved. No guaranteed returns are being offered under the Scheme
HDFC Developed World Indexes Fund of Funds’s performance will be benchmarked against MSCI World Index (Net Total Return Index) (Due to time zone difference, benchmark performance will be calculated with a day’s lag).
The fund will be managed by Mr Krishan Kumar Daga.
The NFO opens for subscription on September 14, 2021, and closes on September 28, 2021. The scheme will re-open for continuous Sale and Repurchase within 5 business days from the date of allotment of units under NFO.
The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter.
The fund offers Regular Plan and Direct Plan having Growth Option.