The scheme seeks to provide investors with exposure to a combination of Equity and Debt through a single fund. It will invest 70% in the Nifty LargeMidcap 250 Index and 30% in the Nifty 8-13 yr G-Sec Index, with the underlying hybrid index rebalanced monthly.
The Nifty LargeMidcap 250 Index comprises 100 Large Cap and 150 Mid Cap companies listed on the NSE, with an aggregate 50% weight to the Large Cap segment and 50% to the Mid Cap segment. The Equity component therefore combines exposure to established large businesses with the growth potential of Mid Cap companies. The Debt component provides exposure to the top 3 (in terms of traded value) liquid Government of India bonds with residual maturity between 8 to 13 years.
Commenting on the launch, Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Company Limited, said, “Asset allocation is an important part of long-term investing, and the challenge for investors is often to maintain the intended balance through different market cycles. HDFC Nifty LargeMidcap250 Plus 8-13 yr G-Sec 70:30 Index Fund brings Equity and Debt together within a rules-based framework, combining diversified exposure to Large Cap and Mid Cap companies with Government securities. The Fund provides a systematic approach to allocation, enabling investors to access both asset classes through a single investment solution.”
The HDFC Nifty LargeMidcap250 Plus 8-13 yr G-Sec 70:30 Index Fund will be managed by Nandita Menezes, Arun Agarwal and Sankalp Baid. The scheme will have nil entry and exit load. During the NFO period and after the scheme reopens for repurchase and sale, investors can invest a minimum of ₹100 and any amount thereafter.