HDFC NIFTY100 Low Volatility 30 Index Fund- NFO: Date & NAV

Introduction

The previous several decades have seen tremendous advancements in the mutual fund sector in India. Many investors who began with mutual funds in the 1960s and 1970s have since become market leaders in their fields.

Are you among the people who are eager to establish your leadership in this market and who have aspirations of making mutual fund investments? Or do you intend to invest your money to make it big?

This is us again, bringing you a stimulating and influential blog that may assist you in making investment information. So, this time, we've come up with the business concept of 'HDFC NIFTY100 Low Volatility 30 Index Fund'.

This article will explain what they have in the fund program and how it will work.

 

Everything You Need to Know About HDFC NIFTY100 Low Volatility 30 Index Fund - NFO

The HDFC NIFTY100 Low Volatility 30 Index Fund is an open-ended Large-Cap Equity Scheme that was launched by HDFC Mutual Fund. The Fund was launched on October 11, 2022. The scheme aims to track the performance of the NIFTY100 Low Volatility 30 Index (TRI). The scheme is suitable for such investors who want to gain exposure to Stocks with low Volatility, invest in businesses whose price swings have traditionally been less, want a diverse portfolio of companies with minimal volatility, have a long-term investment horizon focused on wealth creation and seeking to invest for 3 Years and above. The scheme has no Exit Load.

Read this blog carefully to understand the fund’s assets allocation, performance in the past if any, or other financial attributes that affect the choice of decision-making.

HDFC NIFTY100 Low Volatility 30 Index Fund - NFO Overview

It is an open-ended equity scheme with exposure to businesses with historically fewer price swings is the index's goal. The scheme comes under a very high-risk category. There is no guarantee that the investment objective of the scheme will be achieved.

The Scheme will be available for investment from 21/06/2024 to 05/07/2024. The scheme will invest in Securities covered by the NIFTY100 Low Volatility 30 Index (TRI), Debt Securities & Money Market Instruments, and Debt Schemes Of Mutual Funds.

 

Fund Overview

The HDFC NIFTY100 Low Volatility 30 Index Fund has an AUM of Rs.9.96 crores (as of 31 Mar 2024), and the minimum subscription amount is set at Rs 100. 

Start Date	21 June 2024
End Date	05 July 2024
VRO rating	-
Expense ratio	0.3% as of June 17, 2024
Exit load	NA
AUM (Fund size)	Rs.9.96 Cr.
Lock-in	No Lockin
Stamp Duty	0.005% (From July 1st 2020)
Benchmark	NIFTY 100 Low Volatility 30 Total Return Index
Min. Investment	Rs.100
Risk	Very High
Short-term capital gains (STCG)	Returns taxed at 15% if you redeem before 1 year.
Long-term capital gains (LTCG)	After 1 year, pay a LTCG tax of 10% on returns of ₹1 lakh+ in a financial year.

 

 

The Objective of the Fund

The Scheme intends to generate investment returns that, before expenditures, correspond to the total returns of the Securities represented by the NIFTY100 Low Volatility 30 Index (TRI), subject to tracking mistakes.

Asset allocation (% of Net Assets) of the Scheme's portfolio will be as follows: 

Types of Instruments	Minimum Allocation (% of Net Assets)	Maximum Allocation (% of Net Assets)	Risk Profile
Securities represented by the NIFTY100 Low Volatility 30 Index (TRI)	95	100	Very High
Debt Securities & Money Market Instruments, and Debt Schemes Of Mutual Funds	0	5	Low

Peers of HDFC NIFTY100 Low Volatility 30 Index Fund 

Equity/Large Cap Funds	1Y Return	3Y Return	AUM (Cr)
Nippon India Large Cap Fund-Growth	39.33%	24.30%	26,925.10
UTI Nifty200 Momentum 30 Index Fund Regular - Growth	67.37%	26.19%	6,276.71
ICICI Prudential Bluechip Fund-Growth	37.94%	20.74%	55,459.29

 

Risk Factors in Such Funds

• The Scheme will not be actively managed since it will invest at least 95% of its net assets in the Underlying Index's securities. The performance of the underlying index directly affects the Scheme's performance. The Scheme may be impacted by a decrease in the Indian markets, namely its Underlying Index.

• The scheme is exposed top Tracking Error.

• The price of equity shares and associated instruments is prone to daily swings and is considered volatile. Investing in stock shares and associated securities is risky. Investors should only invest if they are willing to accept the risks.

• To achieve returns that are equal to the total returns represented by the Underlying Index, the Scheme will invest a minimum of 95% of its corpus in the securities that represent the Underlying Index. The Scheme will have little cash or debt/money market investments. The Scheme is not particularly vulnerable to debt/money market issues.

 

Past Performance of Equity, sectoral / Thematic Funds

Equity/ Large Cap Funds	NAV (Rs)	Annualized Return	Return/Risk
JM Large Cap Fund	176.46	22.48%	Very High Risk
ICICI Prudential Bluechip Fund-Growth	110.67	21.47%	Very High Risk
Baroda BNP Paribas Large Cap Fund Direct-Growth	243.15	20.7%	Very High Risk

 

 

HDFC NIFTY100 Low Volatility 30 Index Fund NFO - Who can invest?

This fund is ideal for you if you want to gain exposure to Stocks with low Volatility, invest in businesses whose price swings have traditionally been less, want a diverse portfolio of companies with minimal volatility, have a long-term investment horizon focused on wealth creation and seeking to invest for 3 Years and above.

 

HDFC NIFTY100 Low Volatility 30 Index Fund NFO - Growth Fund Managers

• Mr. Arun Agarwal

• Mr. Abhishek Mor

 

Conclusion

The HDFC NIFTY100 Low Volatility 30 Index Fund plans to track the performance of the NIFTY100 Low Volatility 30 Index (TRI) aiming to get returns that are comparable to the Index. The scheme is under a very high-risk category scheme so please assess your Financial Goals, Risk tolerance, etc. before making an investment decision. 

Disclaimer: This NFO analysis is provided solely for informative reasons and should not be construed as investment advice. Always conduct research and talk with a financial advisor.