HDFC Mutual Fund Launches Digital Index Fund for India’s Growing Digital Economy
HDFC Asset Management Company has launched the HDFC Nifty India Digital Index Fund, an open-ended passively managed fund designed to track the Nifty India Digital Index. The fund aims to provide investors with an opportunity to benefit from the growth of India’s digital economy, which is poised to become a trillion-dollar market.
New Fund Offering (NFO) Subscription started on 22nd November 2024 and will remain open till 6th December 2024. A minimum amount of investment is Rs.100. Investors can invest in the scheme with a minimum investment of Rs.100 during the NFO subscription and after that, the fund reopens for regular transactions.
The fund has structured its portfolio to track India’s digital transformation by focusing on two key areas: domestic digital companies and export-oriented IT services. It carries 30 stocks in the software, telecom, e-commerce, and fintech sectors. Sector weights are capped at 50% and a single stock’s weightage is limited to 7.5%.
As of October 31, 2024, the Nifty India Digital Index continued to maintain a balanced allocation between domestic segments, such as e-commerce and fintech and export-driven IT services. This approach helps to be more comprehensive in the representation of the digital ecosystem.
This index fund will be managed by experienced professionals, namely Nirman Morakhia and Arun Agarwal. This fund is designed for investors who are expecting returns from capturing the growth potential of India’s digital landscape. The initiative combines exposure to domestic innovators and global IT leaders, harnessing more than two decades of expertise in index solutions.
While the fund offers an attractive opportunity to participate in India’s digital revolution, being a sectoral fund, it carries a higher level of risk. Investors need to consider their risk appetite and financial goals before investing.
This launch marks an important milestone in offering customized investment solutions along the lines of an evolving digital economy, one that opens avenues for investors to access what is fast becoming a rapidly growing sector.
