An open-ended scheme replicating/tracking the Nifty Top 20 Equal Weight Index (TRI)
Bengaluru, March 12, 2025: HDFC Asset Management Co. Ltd., investment manager to HDFC Mutual Fund (HDFC MF) one of India’s leading mutual fund houses, announces the launch of the HDFC Nifty Top 20 Equal Weight Index Fund, a passively managed fund that aims to track the Nifty Top 20 Equal Weight Total Returns Index. The New Fund Offering (NFO) opens on March 7th, 2025, and closes on March 21st, 2025. The scheme could be suitable for individuals seeking to capitalize on the long-term growth potential of India’s blue-chip companies through a focused equal-weighted investment approach. This approach provides investors with a simplified way to gain exposure to large cap market leaders while reducing stock concentration risk through equal weight allocation to each stock.
The Nifty Top 20 Equal Weight Index comprises the Top 20 stocks, selected based on 6-month average free-float market capitalization from the Nifty 50 Index, with each stock receiving an equal 5% weightage. The weights are reset every quarter, allowing investors to maintain balanced exposure across these market leaders in an effective and tax-efficient manner over the long term.
The fund will be managed by Mr. Nirman Morakhia and Mr. Arun Agarwal. Investors may participate with a minimum investment of Rs. 100 during both the New Fund Offer (NFO) period and the continuous offer period, which commences after the scheme reopens for purchase and sale. There is no maximum limit on the investment amount, and the final unit allotment will be subject to the deduction of applicable stamp duty and transaction charges, where applicable.
Commenting on the launch, Mr. Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Company Limited, said, “At HDFC Mutual Fund, we continue to expand our range of investment solutions to fulfil our mission to be the wealth creator for every Indian and meet the diverse needs of investors. The HDFC Nifty Top 20 Equal Weight Index Fund could enable investors to benefit from the long-term growth potential of India’s Top 20 large cap companies through an equal-weighted investment approach. With over two decades of expertise in Index Solutions, we are better positioned to bring this investment opportunity to our investors.”
