HDFC Mutual Fund launches Nifty50 Equal Weight Index Fund

HDFC Mutual Fund has launched the New Fund Offer (NFO) of HDFC NIFTY50 Equal Weight Index Fund. The fund will aim to track the performance of constituents forming part of the parent index, the NIFTY 50 Index, where each company in the index shall be assigned equal weights as per the underlying index. The New Fund Offer (NFO) will close for subscription on August 13. The Fund will re-open for continuous sale and repurchase within 5 business days from the date of allotment of units under NFO.

HDFC NIFTY50 Equal Weight Index Fund will offer exposure to Top 50 large companies on the NSE with equal weight to each stock.

According to the fund house, HDFC NIFTY50 Equal Weight Index Fund aims to offer opportunity to capitalise on broad based economic growth. The fund will take exposure to all the stocks in the index with an intent to participate in the growth story with no market-cap bias. According to the press release, the equal weight aims to reduce risk of stock/ sectoral concentration. HDFC NIFTY50 Equal Weight Index Fund is suitable for investors looking for a simple yet smart way of investing in Top 50 companies.

“Corporate profitability had sluggish growth over last couple of years. However, the corporate profitability has remarkably improved recently and outlook looks promising going forward. After a narrow rally due to polarised market for last 2-3 years in recent past, market is in broad based phase now on the back of improving corporate profitability. In the current market dynamics, we believe that HDFC NIFTY50 Equal Weight Index Fund merits due consideration,” saiid Krishan Kumar Daga, Senior Fund Manager, .