HDFC MF Launches Nifty LargeMidcap 250 Index Fund

HDFC MF Launches Nifty LargeMidcap 250 Index Fund

HDFC Asset Management Company has introduced the HDFC Nifty LargeMidcap 250 Index Fund, designed to track the Nifty LargeMidcap 250 Total Returns Index. The New Fund Offer (NFO) opened on September 20, 2024, and will remain open for subscription until October 4, 2024.

Key Features of the Fund

The HDFC Nifty LargeMidcap 250 Index Fund follows a passive investment strategy, offering a diversified portfolio for those seeking exposure to both large and mid-sized companies.

Highlights of the Fund:

• Diversified Exposure: The fund includes a balanced mix of stocks from the Nifty 100 Index (large caps) and the Nifty Midcap 150 Index (midcaps), providing an equal 50:50 split between large and mid-sized companies.
• Quarterly Rebalancing: The portfolio is rebalanced every quarter to maintain the 50:50 exposure, combining the stability of large companies with the growth potential of midcaps.
• Minimum Investment: Investors can enter the fund with as little as ₹100 during the NFO period, making it accessible to a wide range of participants. There is no cap on the investment amount.

Management and Strategy

The fund is managed by Nirman Morakhia and Arun Agarwal. With investments spanning 250 stocks across various sectors and market caps, the fund aims to offer diversified exposure. HDFC AMC's MD and CEO, Navneet Munot, highlighted the company's experience in index-based solutions, saying, “This fund provides a unique opportunity for investors to participate in India's growth story by offering access to both large and midcap segments through a single, convenient investment.”

The quarterly rebalancing process ensures a consistent allocation without triggering taxable events. However, potential investors should evaluate their financial goals and risk appetite before committing to the fund.