HDFC NIFTY Midcap 150 Index Fund NFO: All you need to know

6 Apr 2023 , 11:55 AM

HDFC Mutual Fund is launching NFO under its “Index fund category”, named as HDFC NIFTY Midcap 150 Index Fund. This open-ended fund of fund seeks to generate returns that commensurate with the performance of NIFTY Midcap 150 Index (TRI).

Investment strategy: HDFC NIFTY Midcap 150 Index Fund will be managed passively with investments in stocks comprising the Underlying Index subject to tracking error. The investment strategy 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. 

Asset allocation: The Scheme would invest in stocks constituting the NIFTY Midcap 150 Index (TRI) in the similar proportion (weightage) as in the Index and endeavor to track the benchmark index. The Scheme retains the flexibility to invest, in debt securities and money market instruments as permitted by SEBI / RBI from time to time and subject to obtaining regulatory approvals, if any, including schemes of mutual funds.

Who should invest?

Investors with very high risk appetite and want to invest for 7 to 10 years in a mutual fund should invest in HDFC NIFTY Midcap 150 Index Fund. 

Risk associated: Very high level of risk.

Benchmark: NIFTY Midcap 150 Index (TRI).

Fund Managers: Mr Nirman Morakhia.

The NFO is available for subscription from April 6 to April 18. The schemes will reopen for continuous sale and repurchase within five Business Days from the date of allotment. The fund offers systematic investment solutions like SIP and SWP to create a flexible investment plan. The minimum subscription amount is Rs 100/- and in multiples of any amount thereafter. 

It offers Regular Plan and Direct Plan. Each plan offers Growth and Income options. Click here to invest in HDFC NIFTY Midcap 150 Index Fund.