HDFC Asset Management Company has launched two new funds – HDFC Nifty IT ETF and HDFC Nifty Private Bank ETF. These funds offer investors an opportunity to gain exposure to the growing IT and Private Bank space. The New Fund Offers opened on 28 October 28 2022 and will close on November 9, 2022.
In a statement, the AMC said that HDFC Nifty IT ETF has the potential to capture the Global IT demand/requirements through India’s leading IT companies. HDFC Nifty Private Bank ETF aims to capture the potential of private banks benefitting from India’s economic growth.
HDFC Nifty IT ETF seeks to benefit from structural tailwinds in tech spending including the growth of cloud computing, while the HDFC Nifty Private Bank ETF offers exposure to private banks which have better fundamentals relative to sector peers and valuations below long-term averages, the AMC said.
The AMC said both the funds consist of the 10 largest stocks in the respective sectors listed on the NSE, and they are rebalanced semi-annually in March and September. The objective of the funds is to provide investment returns that, before expenses, correspond to the total returns of the Securities as represented by Nifty IT Index and Nifty Private Bank Index, respectively, subject to tracking errors.
Both the funds will be managed passively, with investments in securities covered by the underlying index.
Commenting on the NFOs, Navneet Munot, Managing Director and Chief Executive Officer, HDFC AMC said, “HDFC AMC has been one of the oldest players in index solutions with proven capability, giving a definite edge. Launch of HDFC Nifty IT ETF and HDFC Nifty Private Bank ETF are a natural extension to include these sector ETFs as part of our endeavour to offer diversified product bouquet for our investors”.
Both the schemes carry “Very High” risk and there is no guarantee or assurance that the fund will meet its stated objectives.
(Mutual funds are subject to market risks. Please consult your financial advisor before making any investment.)