NFO closes on December 6, 2024; An open-ended scheme replicating / tracking the Nifty India Digital Index (TRI)
FinTech BizNews Service
Mumbai 25 November, 2024: HDFC Asset Management Co. Ltd., investment manager to HDFC Mutual Fund (HDFC MF), one of India's leading mutual fund houses, announces the launch of the HDFC Nifty India Digital Index Fund, a passively managed fund aiming to track the Nifty India Digital Index. The New Fund Offering (NFO) opens on November 22, 2024, and closes on December 6, 2024. This scheme could be suitable for investors seeking to capitalize on India's trillion[1]-dollar digital opportunity by providing exposure to both India’s domestic E-Commerce, Fintech companies etc., and export-focused IT Services companies.
The HDFC Nifty India Digital Index Fund offers investors comprehensive exposure to India's digital transformation through a portfolio of 30 stocks from eligible sectors including Software, Telecom, E-Commerce, Fintech, etc. To provide diversified exposure to the Digital theme, sector weights are capped at 50% each and individual stock weights are capped at 7.5% each. As of October 31, 2024, the Nifty India Digital Index had approximately 50% allocation to domestic-focused sectors like E-Commerce and Fintech and approximately 50% allocation to export-focused segments such as Software and IT Enabled Services2.
The fund will be managed by Mr. Nirman Morakhia and Mr. Arun Agarwal. Investors can participate with a minimum investment of Rs. 100 during both the NFO period and the continuous offer period, which commences after the scheme reopens for purchase and sale.
Commenting on the launch, Mr. Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Company Limited, said, "At HDFC Mutual Fund, we continue to expand our range of investment solutions to meet the diverse needs of investors. The HDFC Nifty India Digital Index Fund will allow investors to participate in India's digital revolution through a single investment solution that combines exposure to both domestic digital innovators and export-focused IT services champions. Our two decades of expertise in Index Solutions position us strongly to deliver this investment opportunity to our investors."
The Scheme being sectoral in nature carries higher risks versus diversified equity mutual funds on account of concentration and sector specific risks.
