HDFC Asset Management Company has announced launch of New Fund Offer – HDFC NIFTY Next 50 Index Fund (“the Fund”), for investors looking for returns that are commensurate with the performance of NIFTY Next 50 Index, subject to tracking error. NIFTY Next 50 Index represents 50 companies from NIFTY 100 after excluding the constituents of NIFTY 50 Index.
This fund will offer exposure to the diversified portfolios at the sector/ stock level. The Fund will provide exposure to unique businesses and differentiated businesses as compared to Nifty50.
It is an open-ended scheme replicating/ tracking NIFTY Next 50 Index (TRI). The NIFTY Next 50 Index is more diversified with top 3 sectors’ weight pegged at 58% as compared to 67% for NIFTY 50, and thereby may offer better risk-adjusted returns in long term.
The Fund will be managed passively and the investment universe of the fund will be the constituents of NIFTY Next 50 Index. The new fund offer (NFO) will open on October 22, 2021, and will close on October 29, 2021.