HDFC Asset Management Company, an investment manager to the schemes of HDFC Mutual Fund, has announced its first international offering – HDFC Developed World Indexes Fund of Funds. The fund is the first of its kind, providing exposure to five regions across 23 developed markets, 1500+ constituents, and 14 currencies with coverage of approximately 56% of global GDP and approximately 50% of world market cap in one single fund.
The fund has been launched in association with Credit Suisse Asset Management, the global asset manager who holds $510 billion in assets under management. The fund will cater to investors seeking to diversify their holdings and capitalise on opportunities in the developed world. Further, the fund will invest in Credit Suisse Index Funds or ETFs to track the MSCI World Index in aggregate.
MSCI World Index is a widely used worldwide index that includes large and mid-cap companies from 23 industrialised nations. The index has over 1,500 constituents and covers around 85% of each country’s free float-adjusted market capitalisation.
The HDFC Developed World Indexes Fund of Funds enables investors to broaden their investing perspective beyond domestic borders and capitalise on growth possibilities in developed world companies.
The fund would be managed by Krishan Kumar Daga, a senior fund manager of, HDFC mutual fund.
The fund enables investors to diversify their portfolios across economies and markets, hedge against rupee devaluation, capitalise on global growth opportunities, and access exclusive global themes.
The MSCI World Index includes 40 of the top 50 most innovative firms and includes areas such as information technology, financial services, and health care. MSCI World Index is less volatile than NIFTY 50 (TRI USD) and has a lower correlation with NIFTY 50 TRI across time periods, offering considerable diversification for its investors.
“We are glad to announce the launch of HDFC Developed World Indexes Fund of Funds, the first of its kind. This fund offers investors a gateway to the developed world. This single fund has the potential to offer best possible diversification in terms of exposure across countries, currencies, sector, style, and size at a fine cost coupled with a highly efficient structure from the perspective of global taxation and execution,” said Navneet Munot – MD & CEO HDFC AMC.
-The fund falls under the ‘Very High’ risk category of the mutual fund, and therefore the investors should consult their advisors to check the product suitability.
-Investors in the scheme are responsible for the scheme’s recurring expenses in addition to the expenses of other schemes in which the Fund of Funds scheme invests (subject to regulatory limits).
-If units are redeemed/switched out within 30 days of the date of allotment, a 1% exit load is charged.
-There is no lock-in period and two plans i.e., direct plan and regular plan are offered under this fund.
– New fund offer (NFO) will open on September 17, 2021, and will close on October 1, 2021.
-As per the management the suggested investment period is three years and above.
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