HDFC Mutual Fund Introduces HDFC Nifty G-Sec Sep 2032 V1 Index Fund

Dec 03, 2022

HDFC Mutual Fund has launched – HDFC Nifty G-Sec Sep 2032 V1 Index Fund

It is an open-ended target maturity scheme replicating/tracking Nifty G-Sec Sep 2032 V1 Index. A Relatively High Interest Rate Risk and Relatively Low Credit Risk

Accordingly, the investment objective is to generate returns that are commensurate (before fees and expenses) with the performance of the Nifty G-Sec Sep 2032 V1 Index (Underlying Index), subject to tracking difference. There is no assurance that the investment objective of the Scheme will be realized.

Under normal circumstances, HDFC Nifty G-Sec Sep 2032 V1 Index Fund will hold an allocation of 95% to 100% of its assets in Government Securities/SDL, TREPS on Government Securities/Treasury bills and 0% to 5% in Money Market Instruments and Units of liquid and debt mutual fund schemes.

As per the Scheme Information Document, HDFC Nifty G-Sec Sep 2032 V1 Index Fund will be passively managed which will employ an investment approach designed to track the performance of the underlying index, subject to tracking difference. The strategy shall be in compliance with Norms for Circular on Development of Passive Funds under SEBI circular dated May 23, 2022 as amended from time to time. Generally, the Scheme will follow Buy and Hold investment strategy in which existing government securities will be held till maturity unless sold for meeting redemptions requirement or to rebalance the portfolio.

HDFC Nifty G-Sec Sep 2032 V1 Index Fund’s performance will be benchmarked against Nifty G-Sec Sep 2032 V1 Index.

The scheme will be managed by Mr Vikash Agarwal.

The NFO opens for subscription on December 02, 2022 and closes on December 08, 2022. The schemes will reopen for continuous sale and repurchase within 5 business days from the date of allotment of units under NFO.

The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 100/- and in multiples of any amount thereafter. 

The scheme offers Regular Plan and Direct Plan each plan offers Growth option.