HDFC Nifty LargeMidcap 250 Index Fund (NFO)

The HDFC Nifty LargeMidcap 250 Index Fund NFO (New Fund Offer) is an index fund that aims to track the performance of the Nifty LargeMidcap 250 Index. This index comprises the top 250 companies from both large-cap and mid-cap segments. Here’s a quick overview of the fund:

Key Highlights:

1. Fund Objective:
   The objective is to provide returns that closely correspond to the total returns of the Nifty LargeMidcap 250 Index, subject to tracking errors. It focuses on a diversified portfolio covering both large and mid-cap companies, offering a blend of stability and growth potential.
2. Index Composition:

• Top 100 companies: Large-cap
• Next 150 companies: Mid-cap
  This blend offers exposure to both well-established blue-chip companies and high-growth mid-cap firms.

1. Minimum Investment:
   The minimum investment for NFOs generally starts at ₹5,000, but it’s advisable to check specific details for this NFO.
2. Expense Ratio:
   The expense ratio is expected to be low, as index funds typically have lower management fees compared to actively managed funds.
3. Risk Profile:
   This fund is expected to have a moderately high-risk profile since it covers both large-cap and mid-cap stocks. Mid-caps may introduce higher volatility compared to pure large-cap funds.
4. Who Should Invest?:

• Investors looking for long-term capital appreciation.
• Those seeking exposure to a mix of large and mid-sized companies.
• Ideal for investors who prefer passive investment strategies and want to track the performance of a broad market index.

Investment Strategy:

HDFC Nifty LargeMidcap 250 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. A part of the funds may be invested in debt and money market instruments, to meet liquidity requirements.

Since the Scheme is index 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 Calendar Days from the date of allotment / listing of such securities.

Who Should Invest?

The HDFC Nifty LargeMidcap 250 Index Fund NFO is suited for investors who:

1. Seek Diversified Exposure to Large and Mid-cap Stocks:

• This fund offers exposure to the top 100 large-cap companies and the next 150 mid-cap companies. Investors who want to diversify across large and mid-sized firms can benefit from this broad mix of stable, established companies and growth-oriented mid-cap firms.

2. Prefer a Passive Investment Approach:

• Index funds like this one aim to replicate the performance of a specific index (Nifty LargeMidcap 250 in this case). Investors who prefer passive investing, without the need for active stock picking by a fund manager, may find this suitable.

3. Look for Long-Term Capital Growth:

• The combination of large and mid-cap stocks offers potential for long-term capital appreciation. Large caps provide stability, while mid-caps offer growth potential, making it a good choice for investors with a long-term investment horizon (typically 5 years or more).

4. Have a Moderate to High Risk Tolerance:

• The mid-cap component of this index introduces a higher level of volatility and risk compared to pure large-cap funds. Investors should be comfortable with market fluctuations and willing to endure short-term volatility for long-term gains.

5. Are Cost-Conscious and Want Low-Cost Exposure:

• Index funds generally have a lower expense ratio compared to actively managed funds. This can be appealing for cost-conscious investors who want to minimize fees while seeking market-like returns.

6. Want to Benefit from Both Growth and Stability:

• The fund offers a balanced exposure to large-cap stability and mid-cap growth potential, which can be appealing to investors looking for a blend of these two market segments.

7. Ideal for SIP and Lump Sum Investments:

• Investors who are planning to invest systematically (through SIPs) or make a one-time lump sum investment can consider this fund for its growth potential over time.

SIPs are good but even better when markets are HIGH

To Invest in HDFC Nifty LargeMidcap 250 Index Fund (NFO) contact us…

HDFC Nifty LargeMidcap 250 Index Fund (NFO) Details

To Invest in HDFC Nifty LargeMidcap 250 Index Fund (NFO) contact us…

HDFC Nifty LargeMidcap 250 Index Fund (NFO) Objectives

• To generate returns that are commensurate (before fees and expenses) with the performance of the Nifty LargeMidcap 250 Index (TRI), subject to tracking error.

Considering the high valuations at the current juncture, we recommend systematic investing via Systematic Investment Plan (SIP).

For Details Reports Please download the Presentation, SID, KIM from below…

Risk Discloser – MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY. The Scheme being sectoral in nature carries higher risks versus diversified equity mutual funds on account of concentration and sector specific risks. Investors should consult their financial advisers, if in doubt about whether the product is suitable for them. The product labeling assigned during the NFO is based on internal assessment of the scheme characteristics or model portfolio and the same may vary post NFO when the actual investments are made.