HDFC Mutual Fund has filed draft documents with SEBI to launch two new funds: the HDFC Nifty India Digital Index Fund and the HDFC Commodities Fund. The former will be an index fund, while the latter will be a thematic fund.
HDFC Nifty India Digital Index Fund
The HDFC Nifty India Digital Index Fund will be an open-ended scheme that replicates or tracks the Nifty India Digital Index (TRI). The investment objective of the scheme is to generate returns that are commensurate with the performance of the Nifty India Digital Index (TRI), before fees and expenses, while managing tracking errors.
The scheme will be benchmarked against the Nifty India Digital Index (TRI) and would be managed by Nirman Morakhia and Arun Agarwal.
The minimum application amount will be Rs 100, with no upper limit on subsequent investments. The scheme will have no exit load. It will allocate 95-100% of its assets to securities covered by the Nifty India Digital Index (TRI) and 0-5% to debt securities, money market instruments, and units of debt mutual fund schemes.
The scheme is suitable for investors seeking returns that closely match (before fees and expenses) the performance of the Nifty India Digital Index (TRI) over the long term, subject to tracking error, and who want to invest in equity securities covered by the Nifty India Digital Index (TRI).
HDFC Commodities Fund
The HDFC Commodities Fund will be an open-ended equity scheme focused on investing in companies engaged in commodity and commodity-related sectors. The investment objective is to generate long-term capital appreciation by primarily investing in equity and equity-related securities of companies within these sectors.
The scheme will be benchmarked against the NIFTY Commodities Index (TRI) and managed by Abhishek Poddar and Dhruv Muchhal.
In respect of each purchase/switch-in of units, an exit load of 1% is payable if units are redeemed/switched out within 30 days month from the date of allotment. No exit load is payable if units are redeemed/switched out after 30 days from the date of allotment.
The minimum application amount will be Rs 100, with no upper limit on subsequent investments.The scheme will allocate its assets as follows: 80-100% to equity and equity-related instruments of companies engaged in commodity and commodity-related sectors; 0-20% to equity and equity-related instruments (including derivatives) of companies outside these sectors; 0-20% to debt securities, money market instruments, and fixed income derivatives; 0-20% to Gold ETF, Silver ETF, and any commodity ETFs as permitted by SEBI; 0-10% to units issued by REITs and InvITs; and 0-20% to units of mutual funds.
