A New Fund Offer (NFO) has been launched by HDFC Asset Management Company Limited (Investment Manager to the schemes of HDFC Mutual Fund) – HDFC NIFTY50 Equal Weight Index Fund. HDFC NIFTY50 Equal Weight Index Fund will take exposure to all the stocks in the index with intent to participate in the growth story with no market-cap bias. HDFC NIFTY50 Equal Weight Index Fund will offer exposure to Top 50 large companies on the NSE with equal weight to each stock. The equal weight aims to reduce risk of stock/ sectoral concentration. HDFC NIFTY50 Equal Weight Index Fund is suitable for investors looking for a simple yet smart way of investing in Top 50 companies.
The NFO will open on August 4 and will close on August 13. The Fund will re-open for continuous sale and repurchase within 5 business days from the date of allotment of units under NFO. The Fund will aim to track the performance of constituents forming part of the parent index, the NIFTY 50 Index, where each company in the index shall be assigned equal weights as per the under lying index. NIFTY50 Equal Weight Index offers disciplined investment approach with no bias where each stock contributes equally for the overall index growth.