HDFC NIFTY500 Multicap 50:25:25 Index Fund is an open-ended mutual fund that replicates or tracks the NIFTY 500 Multicap 50:25:25 Index. Here’s a brief overview:
Fund Objective:
The primary objective of the HDFC NIFTY500 Multicap 50:25:25 Index Fund is to provide returns that closely correspond to the total returns of the NIFTY 500 Multicap 50:25:25 Index, subject to tracking errors.
Key Features:
- Multicap Exposure: The fund offers diversified exposure across large-cap, mid-cap, and small-cap stocks in a 50:25:25 ratio, which means 50% of the investment goes into large-cap stocks, 25% into mid-cap stocks, and 25% into small-cap stocks. This allocation helps in balancing risk and returns.
- Index Fund: As an index fund, it aims to passively track the performance of the underlying index by holding the same stocks in the same proportion as the index.
- Lower Expense Ratio: Index funds typically have a lower expense ratio compared to actively managed funds, making them cost-effective.
- Risk and Return: The fund is subject to market risks, and returns will depend on the performance of the stocks in the NIFTY 500 Multicap 50:25:25 Index.
Investment Strategy:
The fund follows a passive investment strategy, meaning it does not actively pick stocks but rather mirrors the composition of the NIFTY 500 Multicap 50:25:25 Index. The strategy aims to minimize the tracking error, which is the difference between the fund’s performance and the index it tracks.
Who Should Invest?
- Long-term Investors: Suitable for investors with a long-term investment horizon who want diversified exposure to large, mid, and small-cap companies.
- Cost-Conscious Investors: Ideal for those looking for a cost-effective way to invest in a diversified portfolio of stocks across different market capitalizations.
- Risk Tolerance: Investors should have a moderate to high-risk tolerance since the fund invests in mid-cap and small-cap stocks, which can be more volatile compared to large-cap stocks.
SIPs are good but even better when markets are HIGH
To Invest in HDFC NIFTY500 Multicap 50:25:25 Index Fund (NFO) contact us…
HDFC NIFTY500 Multicap 50:25:25 Index Fund (NFO) Details
| Particular | Details |
| NFO Open | 06 Aug 2024 |
| NFO Close | 20 Aug 2024 |
| NFO Re-Open | 27 Aug 2024 (Tentative) |
| Scheme TYPE | Open-Ended |
| Purchase Mode | Lumpsum & SIP both |
| Minimum Application Amount | ₹100/- and any amount thereafter |
| Benchmark | Nifty500 Multicap 50:25:25 Index |
| Fund Manager | Mr. Nirman Morakhia and Mr. Arun Agarwal |
| Riskometer | Very High |
To Invest in HDFC NIFTY500 Multicap 50:25:25 Index Fund (NFO) contact us…
HDFC NIFTY500 Multicap 50:25:25 Index Fund (NFO) Objectives
- To generate returns that are commensurate (before fees and expenses) with the performance of the Nifty500 Multicap 50:25:25 Index, 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.
