HDFC Mutual Fund Unveils New Realty Index Fund

Mar 07, 2024

HDFC Mutual Fund launches – HDFC Nifty Realty Index Fund

It is an open-ended scheme replicating/tracking NIFTY Realty Index (TRI).

Accordingly, investment objective of the Scheme is to generate returns that are commensurate (before fees and expenses) with the performance of the NIFTY Realty Index (TRI), subject to tracking error. There is no assurance that the investment objective of the Scheme will be realized.

Under normal circumstances, HDFC Nifty Realty Index Fund will hold an allocation of 95% to 100% in Securities covered by NIFTY Realty Index and 0% to 5% in Debt Securities & Money Market Instruments, units of Debt Schemes of Mutual Funds.

[Read: Unlock the Potential of Real Estate With These Top 5 Infrastructure Mutual Funds]

As per the Scheme Information Document, HDFC Nifty Realty Index Fund will be managed passively with investments in stocks comprising the Underlying Index subject to tracking error.

The investment strategy would revolve around reducing the tracking error to the least possible through regular rebalancing of the portfolio, taking into account the change in weights of stocks in the Index as well as the incremental collections/redemptions in the Scheme. A part of the funds may be invested in debt and money market instruments, to meet the liquidity requirements. Since the Scheme is index fund, it will only invest in securities constituting the Underlying Index.

HDFC Nifty Realty Index Fund’s performance will be benchmarked against Nifty Realty Index. The underlying index is designed to reflect the behaviour and performance of the companies that are engaged into construction of residential & commercial real estate properties and it comprises of maximum of 10 stocks.

The scheme will be managed by Mr Niman Morakhia and Mr Arun Agarwal

The NFO opens for subscription on March 07, 2024 and closes on March 21, 2024. The schemes will reopen for continuous sale and repurchase within 5 days from the date of allotment.

The minimum subscription amount is Rs 100/- and in multiples of Re.1/- thereof.

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