Investment Objective
HDFC Nifty 50 Index Fund aims to generate returns that replicate the performance of the NIFTY 50 Index, subject to tracking errors.
Investment Strategy
- HDFC Nifty 50 Index Fund follows a passive investment approach to replicate the composition of the Nifty 50 Index.
- By following the composition of Nifty 50 Index, the scheme passively invests in the equity securities of the largest 50 companies in India.
- The fund aims to minimize tracking error through regular portfolio rebalancing by taking into consideration the changes in weights of stocks in the index and the incremental collections/redemptions in the scheme.
- It may also invest in debt and money market instruments to meet its liquidity needs.
- The scheme may take derivative positions through futures and options for hedging and/or non-hedging purposes.
Who Should Invest
- Investors having investment horizon of at least 3 years and seeking investment in equity securities included in the NIFTY 50 index.
- Those who prefer a low-cost investment option to earn index-linked returns.
- Those who are relatively new to equity investing and seek a diversified portfolio consisting of large cap companies.
- Those seeking a long term investment tool for wealth creation.