NFO alert: HDFC Mutual Fund launches Nifty LargeMidcap 250 Index Fund; check subscription dates, minimum investment and other key details

HDFC Asset Management Co Ltd, investment manager to HDFC Mutual Fund (HDFC MF), has launched a new fund offering (NFO) today, according to a statement.

The NFO named HDFC NiftyLargeMidcap 250 Index Fund aims to track the Nifty LargeMidcap 250 Total Returns Index. 

Nifty LargeMidcap 250 Index Fund: Subscription date

The NFO will open on September 20, 2024, and will close on October 4, 2024. 

Nifty LargeMidcap 250 Index Fund: Minimum investment

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.

Nifty LargeMidcap 250 Index Fund: Who should apply?

The scheme could be suitable for individuals seeking to capitalise on the long-term growth prospects of both large and mid-sized companies through a unified investment approach. This approach provides investors with a simplified way to maintain balanced exposure to both market segments through a single, passively managed fund, the company said.

"This scheme provides investors with a unique opportunity to participate in India’s growth story by offering exposure to both large and midcap stocks in a single product. By maintaining a 50:50 allocation, investors can benefit from the stability of large, established companies while capitalizing on the growth potential of emerging ones. We believe this strategy will be suitable to investors looking for a diversified and efficient way to access India's dynamic equity market," said Navneet Munot, MD and CEO of HDFC Asset Management Company.

The Nifty LargeMidcap 250 Index comprises all stocks from the Nifty 100 Index and Nifty Midcap 150 Index, with equal weightage to large caps and midcaps at 50% each. The weights to each segment are reset every quarter, allowing investors to maintain a 50:50 allocation to large-cap and midcap stocks in a convenient and tax-efficient manner over the long term.

HDFC Asset Management Company Limited has been managing equity Index Solutions for over 20 years.

The new fund will be managed by Nirman Morakhia and Arun Agarwal.