HDFC Mutual Fund launches HDFC NIFTY100 Low Volatility 30 Index Fund

An open-ended scheme replicating/tracking NIFTY100 Low Volatility 30 Index (TRI)

NFO Period June 21, 2024 – July 5, 2024

Bengaluru, June 24, 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 NIFTY100 Low Volatility 30 Index Fund, a passively managed fund that aims to track the NIFTY100 Low Volatility 30 Total Returns Index. The new fund offering (NFO) opens on June 21st and closes on July 5th, 2024. This scheme could be suitable for investors aiming to seek long-term wealth creation with exposure to the 30 least volatile stocks from the largecap parent Index, i.e. NIFTY 100.

The NIFTY 100 Low Volatility 30 TRI selects 30 stocks with lowest volatility in the last one year from the NIFTY 100 universe. The NIFTY100 Low Volatility 30 TRI Index has historically provided higher average rolling returns over 1, 3, 5 and 10 year horizons compared to the NIFTY 100 Index. (Source: NSE Indices Ltd data, internal calculations.) Moreover, this Index has historically demonstrated resilience during periods of market stress i.e. it has fallen less than the NIFTY 100 TRI in each of the Financial Years’ where the NIFTY 100 TRI had a negative return. Such performance in both rising and falling markets creates an interesting case to consider investing in the HDFC NIFTY100 Low Volatility 30 Index Fund. The Scheme offers investors a low-cost vehicle to gain exposure to India’s large-cap companies with potentially lower volatility and could be an opportunity for potential long-term wealth creation. The fund will be managed by Mr. Nirman Morakhia and Mr. Arun Agarwal. The minimum investment amount during the NFO period and the continuous offer period (after the scheme re-opens for repurchase and sale) is Rs. 100 and any amount thereafter. Allotment of units will be done after deduction of applicable stamp duty and transaction charges, if any.

Commenting on the launch, Mr. Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Company Limited, said, “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 HDFC NIFTY100 Low Volatility 30 Index Fund, which provides investors a simplified way to deal with market volatility.”

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