What’s the news?
The HDFC Nifty Next 50 ETF aims to generate returns (before expenses) that closely correspond to the total returns of the securities that are part of the Nifty Next 50 Index, subject to tracking errors. However, there is no assurance that the investment objective of the fund will be realised.
|HDFC NIFTY Next 50 ETF||Details|
|NFO Opening Date||July 25th 2022|
|NFO Closing Date||August 1st 2022|
|Type of Fund||Open-ended ETF scheme|
|Fund Manager||Mr Krishan Kumar DagaMr Arun Agarwal|
|Minimum Investment Amount||INR 500|
|Benchmark||Nifty Next 50 Index TRI|
|Plans and Options||Not Available|
Who Can Invest?
HDFC Nifty Next 50 ETF is an open-ended scheme that invests across large-cap stocks beyond Nifty 50. The ETF aims to track the Nifty Next 50 Index closely. Nifty Next 50 Index aims to closely track the performance of stocks that broadly represent the next Nifty 50 theme.
Since the ETF fund invests across the next Nifty 50 stocks, it is a high-risk investment. Thus, it is aimed at investors seeking long-term wealth creation by investing in large-cap stocks.
Therefore, investors seeking exposure to equity investments can consider the scheme. However, having a long-term investment horizon (5+ years) is advisable.
Popular Funds by the HDFC Mutual Funds
- HDFC Gold Fund
- HDFC Floating Rate Debt Wholesale Plan
- HDFC Overnight Fund
- HDFC Balanced Advantage Fund
- HDFC Small Cap Fund
- HDFC Mid Cap Opportunities Fund
Mr Krishan Kumar Daga
Mr Krishan has more than 30 years of industry experience. He is the Senior Fund Manager at HDFC AMC and manages arbitrage funds, equity saving funds, multi-asset funds, ETFs (Nifty, Sensex, Gold), index funds (Nifty, Sensex) and gold funds. Prior to joining HDFC AMC, he was with Reliance Mutual Fund, Deutsche Bank, Batlivala & Karani Securities India Pvt. Ltd., Brics Securities, J.P. Morgan, and HSBC.
Mr Daga is a Chartered Accountant and also holds a B.Com degree from B.J.S. Rampuria Jain College.
Mr Arun Agarwal
Mr Arun Agarwal has been working with HDFC since August 2020. Prior to joining HDFC AMC, he was with SBI Funds Management Pvt. Ltd., ICICI Bank Limited, and also UTI Asset Management Pvt. Ltd. He is a Chartered Account and also holds a B.com Degree.
HDFC Nifty Next 50 ETF invests in the same stocks as the Nifty Next 50 Index. The following is the indicative asset allocation of the fund.
|Types of Instruments||Indicative Allocation Minimum||Indicative Allocation Maximum||Risk Profile|
|Equity & Equity related instruments constituting Nifty Next 50 Index||95%||100%||Medium to High|
|Debt & Money Market Instruments, but excluding subscription and Redemption Cash Flow||0||5%||Low to Medium|
HDFC Nifty Next 50 ETF NFO invests across 50 large-cap stocks beyond Nifty 50. The HDFC Nifty Next 50 ETF aims to replicate the Nifty Next 50 Index performance. HDFC Nifty Next 50 ETF fund primarily invests in the same stocks and in the same proportions as Nifty Next 50 Index. Thus, the fund aims to generate long-term wealth by investing in the next Nifty 50 large caps. The ETF offers diversification at the stock and sector level.
Investors who wish to get exposure to large-cap stocks can consider HDFC Nifty Next 50 ETF. Since HDFC Nifty Next 50 ETF is a pure equity scheme, a long-term investment horizon is recommended.
How Can I Invest in the HDFC Nifty Next 50 ETF NFO?
You can invest in the HDFC Nifty Next 50 ETF NFO through any of the following methods:
Offline: By filling out the HDFC Nifty Next 50 ETF NFO application and submitting it along with all documents and cheques to the nearest Investor Service Center of CAMS or HDFC mutual fund office.
- HDFC Mutual Fund Website
- Online FinTech platforms and mutual fund platforms
- Through demat account
- Through a mutual fund distributor or agent
Is HDFC Nifty Next 50 ETF NFO risky?
According to the riskometer, it is a very high-risk investment. HDFC Nifty Next 50 ETF is a pure equity mutual fund that invests in the next 50 large-cap stocks to Nifty 50. Thus, the scheme falls under the very high-risk category. Furthermore, investors must be aware of the risks associated with equity investments and also, the scheme doesn’t guarantee any returns.
Is there a lock-in period for HDFC Nifty Next 50 ETF?
HDFC Nifty Next 50 ETF doesn’t have a lock-in period. Since the ETF units get listed on the stock market, they are traded on exchanges.