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India’s automobile sector remains a key pillar of the country’s economic growth, manufacturing expansion, employment generation, and export competitiveness. The scheme will invest in constituents of the Nifty Auto Index (TRI), which comprises leading companies across passenger vehicles, two-wheelers, commercial vehicles, auto components, and related segments of the automobile ecosystem.
The index currently consists of 15 stocks selected from the Nifty 500 universe and is designed to reflect the performance of India’s automobile sector.
“At HDFC Mutual Fund, we remain committed to offering investors a diverse range of innovative investment solutions to fulfil our mission of being the wealth creator for every Indian. With the HDFC Nifty Auto Index Fund, we aim to provide investors with an effective way to participate in the growth potential of the country’s automobile sector and benefit from its enduring strengths. Backed by 20+ years of expertise in index solutions, we are well positioned to deliver this investment opportunity,” said Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Company.
The scheme will be managed by Nandita Menezes and Arun Agarwal. Investors can invest a minimum of Rs 100 during the NFO period and the subsequent continuous offer period after the scheme reopens for subscription and redemption. There will be no entry or exit load under the scheme.
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The performance of the scheme will be benchmarked against the Nifty Auto Index (TRI). The fund will allocate 95-100% of its assets to constituents of the Nifty Auto Index (TRI) and 0–5% to debt and money market instruments, including government securities, T-bills, repo on government securities, and units of liquid and overnight mutual fund schemes.
The principal invested in the fund will be subject to a very high risk rating, as per the scheme’s riskometer.
(Disclaimer: Recommendations, suggestions, views, and opinions expressed by experts are their own and do not represent the views of The Economic Times)
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