HDFC Mutual Fund introduces HDFC NIFTY100 Low Volatility 30 Index Fund, check details

HDFC Asset Management Co. Ltd., the investment manager of HDFC Mutual Fund (HDFC MF), has announced the launch of the HDFC NIFTY100 Low Volatility 30 Index Fund. The captioned New Fund Offer (NFO) opened on June 21 and will close on July 5, 2024.

"This scheme could be suitable for investors aiming to seek long-term wealth creation with exposure to the 30 least volatile stocks from the large-cap parent Index, i.e. NIFTY 100," said HDFC MF in a press note.

HDFC NIFTY100 Low Volatility 30 Index Fund: Details

NFO Opens: June 21, 2024 
NFO Closes: July 5, 2024

"At HDFC Mutual Fund, our mission to be the wealth creator for every Indian continues to drive us to offer a wide range of investment solutions to meet the needs of investors. We remain committed to delivering excellence in Index Solutions, leveraging our 20+ years of expertise in this space. We are excited to introduce HDFC NIFTY100 Low Volatility 30 Index Fund, which provides investors a simplified way to deal with market volatility," said Navneet Munot, MD and CEO, HDFC Asset Management Company.

More about HDFC NIFTY100 Low Volatility 30 Index Fund

The NIFTY100 Low Volatility 30 TRI chooses 30 stocks from the NIFTY 100 universe that have had the lowest volatility over the previous year. According to NSE Indices statistics, the NIFTY100 Low Volatility 30 TRI Index has historically outperformed the NIFTY 100 Index in terms of average rolling returns over 1, 3, 5, and 10-year periods. Furthermore, this Index has historically exhibited resilience during times of market stress, falling less than the NIFTY 100 TRI in each of the fiscal years in which the NIFTY 100 TRI returned a negative amount. Such success in both rising and declining markets makes the HDFC NIFTY100 Low Volatility 30 Index Fund a compelling investment opportunity. 

The Scheme offers investors a low-cost vehicle to gain exposure to India's large-cap companies with potentially lower volatility and could be an opportunity for potential long-term wealth creation.

In February this year, HDFC Asset Management Co. Ltd. launched the HDFC NIFTY200 Momentum 30 Index Fund. The captioned New Fund Offer (NFO) opened on February 9 and closed on February 23, 2024. 

Another MF, Quant Mutual Fund has said it is being enquired by markets watchdog Sebi and it is fully committed to cooperating with the regulator throughout any review.

The statement came after media reported that Securities and Exchange Board of India (Sebi) is investigating Quant Mutual Fund over alleged front- running activities.