HDFC S&P BSE 500 Index Fund NFO: Everything you need to know

10 Apr 2023 , 09:14 AM

HDFC Mutual Fund is launching NFO under its “index fund category”, named as HDFC S&P BSE 500 Index Fund. This open-ended fund of fund seeks to generate returns that commensurate with the performance of S&P BSE 500 Index (TRI).

Investment strategy: HDFC S&P BSE 500 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 S&P BSE 500 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 S&P BSE 500 Index Fund.

Risk associated: Very high level of risk.

Benchmark: S&P BSE 500 Index (TRI).

Fund Managers: Mr Arun Agarwal.

The NFO is available for subscription from April 06 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 S&P BSE 500 Index Fund.