HDFC Asset Management Co. Ltd., the investment manager for HDFC Mutual Fund (HDFC MF), one of India’s premier mutual fund companies, has announced the launch of the HDFC NIFTY100 Low Volatility 30 Index Fund. This new fund aims to track the NIFTY100 Low Volatility 30 Total Returns Index and is designed to be a passively managed fund. The New Fund Offering (NFO) will be available for subscription from June 21st to July 5th, 2024.
This fund is targeted at investors looking for long-term wealth creation by investing in the 30 least volatile large-cap stocks from the NIFTY 100 index. The NIFTY 100 Low Volatility 30 TRI identifies these 30 stocks based on their volatility over the past year within the NIFTY 100 universe. Historical data indicates that this index has outperformed the NIFTY 100 Index in terms of average rolling returns over 1, 3, 5, and 10-year periods, according to data from NSE Indices Ltd. and internal calculations. Additionally, the index has shown resilience during market downturns, declining less than the NIFTY 100 TRI during financial years with negative returns.
The HDFC NIFTY100 Low Volatility 30 Index Fund provides a cost-effective means for investors to gain exposure to India’s large-cap companies with potentially reduced volatility, presenting a viable option for long-term wealth creation. The fund will be managed by Mr. Nirman Morakhia and Mr. Arun Agarwal. During both the NFO and the continuous offer period (after the scheme reopens for repurchase and sale), the minimum investment amount is set at Rs. 100, with no upper limit.
Mr. Navneet Munot, Managing Director and Chief Executive Officer of HDFC Asset Management Company Limited, expressed his enthusiasm about the new fund, stating, “At HDFC Mutual Fund, our mission to be the wealth creator for every Indian continues to drive us to offer a wide range of investment solutions to meet the needs of investors. We remain committed to delivering excellence in Index Solutions, leveraging our 20+ years of expertise in this space. We are excited to introduce the HDFC NIFTY100 Low Volatility 30 Index Fund, which provides investors a simplified way to deal with market volatility.
