According to the fund house, both NFOs are aimed at investors who are looking for returns that are commensurate with the performance of NIFTY 100 Index and NIFTY100 Equal Weight Index respectively. Indian large caps (as represented by constituents of the NIFTY 100 Index) represent 68% of the Indian listed space by market cap as on December 31, 2021.
Navneet Munot, MD & CEO, HDFC AMC, said, “Launch of these two NFOs is a part of our endeavour to expand our product bouquet in HDFC MF Index Solutions and allow customers easy access to India’s 100 largest companies. HDFC AMC has been one of the oldest players in index solutions with proven capability.”
According to the press release, the twin NFOs provide strategies to invest in the largest companies in India that are part of the NIFTY 100 Index. While the NIFTY 100 Index gives weights based on free float market cap, the NIFTY100 Equal Weight Index gives equal weights to all constituents. Winners keep changing and hence, investors can consider investing in both funds.