HDFC Mutual Fund launches NIFTY 100 Index Fund and NIFTY100 Equal Weight Index Fund
According to the fund house, both NFOs are aimed at investors seeking returns commensurate with the performance of the NIFTY 100 Index and the NIFTY100 Equal Weight Index respectively. Indian large caps (represented by constituents of the NIFTY 100 index) account for 68% of the Indian listed space by market capitalization as of December 31, 2021.
Navneet Munot, MD and CEO, HDFC AMC, said, “The launch of these two NFOs is part of our efforts to expand our product mix in HDFC MF Index Solutions and provide customers with easy access to India’s top 100 companies. . HDFC AMC is one of the oldest players in indexing solutions with proven capabilities.
According to the press release, the twin NFOs offer strategies for investing in India’s largest companies that are part of the NIFTY 100 index. While the NIFTY 100 index assigns weightings based on free-float market capitalization, the index NIFTY100 Equal Weight assigns equal weights to all constituents. The winners keep changing and therefore investors can consider investing in both funds.