In an effort to broaden its selection of HDFC MF index solutions, HDFC Mutual Fund has announced the introduction of HDFC Nifty Next 50 ETF and HDFC NIFTY 100 ETF. These funds provide exposure to the large-cap market in India. The asset management firm claims that the HDFC Nifty Next 50 ETF’s benchmark, the Nifty Next 50 Total Returns Index (TRI), offers benefits for stock and sector diversification as well as the possibility for longer-term greater risk-adjusted returns compared to the Nifty 50. Additionally, this index has a greater chance of growth because it can include members of the NIFTY 50’s upcoming league.
- By concentrating on the top 100 firms based on entire market capitalization, the benchmark of HDFC Nifty 100 ETF—Nifty 100 TRI—offers exposure to the Indian large-cap area and improves market representation.
- While tracking the behaviour of the combined portfolio of the Nifty 50 and Nifty Next 50 Indices, it offers more balanced diversification than the Nifty 50 Index.
- The funds’ primary goal is to offer investment returns that, subject to tracking errors, closely match the total returns of the stocks represented by the Nifty Next 50 Index and Nifty 100 Index, respectively, before expenses.
- With investments in securities covered by the underlying index, both funds will be passively managed.
Important Takeaways For All Competitive Exams:
- Managing director and chief executive officer, HDFC Asset Management Co. Ltd.: Navneet Munot