|Infosys||IT - Software||Equity||6.01%|
|TCS||IT - Software||Equity||4.04%|
|Larsen & Toubro||Infrastructure Developers & Operators||Equity||3.83%|
|Kotak Mah. Bank||Banks||Equity||3.03%|
|St Bk of India||Banks||Equity||2.53%|
|M & M||Automobile||Equity||1.66%|
|Titan Company||Diamond, Gems and Jewellery||Equity||1.52%|
|HCL Technologies||IT - Software||Equity||1.46%|
|NTPC||Power Generation & Distribution||Equity||1.23%|
|Power Grid Corpn||Power Generation & Distribution||Equity||0.98%|
|Tech Mahindra||IT - Software||Equity||0.88%|
|HDFC Life Insur.||Insurance||Equity||0.81%|
|Dr Reddy's Labs||Pharmaceuticals||Equity||0.8%|
|O N G C||Crude Oil & Natural Gas||Equity||0.8%|
|Hindalco Inds.||Non Ferrous Metals||Equity||0.79%|
|Adani Ports||Infrastructure Developers & Operators||Equity||0.78%|
|Wipro||IT - Software||Equity||0.71%|
|SBI Life Insuran||Insurance||Equity||0.68%|
|Coal India||Mining & Mineral products||Equity||0.62%|
|Tata Consumer||Plantation & Plantation Products||Equity||0.58%|
|LTIMindtree||IT - Software||Equity||0.56%|
|B P C L||Refineries||Equity||0.38%|
|Pharmaceuticals & Biotech||3.43%|
|Cement & Cement Products||1.88%|
|Metals & Minerals Trading||0.88%|
|Agricultural Food & other||0.58%|
|Fertilisers & Agrochemica||0.36%|
|Cash & Others||0.1%|
|Exit Load||0.25% - If units are redeemed / switched out within 3 Days from the date of allotment. Nil - If units are redeemed / switched out after 3 days from the date of allotment.|
The HDFC Nifty 50 Index Fund has 99.95% investment in domestic equities, of which 85.78% is in Large Cap stocks, and 2.47% is in Mid Cap stocks. Launched on January 1, 2013, the fund has grown to the size of ₹ 7,411 crores, with a portfolio Turnover Ratio of 8.94% as against 41.04% in the category average turnover ratio.
Its benchmark is marked against the Nifty 50 Total Return, and there is no lock-in for the investment. This ten-year and one-month-old scheme from the house of HDFC Mutual Funds is under the management of Mr. Arun Agarwal.
Pros and Cons
|The expense ratio is less in the case of this fund, so investors have more cash with them.||The Standard Deviation ratio shows high market volatility of 22.37 against the category average of 16.27.|
|The fund has displayed the ability to deliver returns consistently in a moderate way.|
|It provides diversification without the need for much knowledge on the investor’s part.|
How to Invest in HDFC Nifty 50 Index?
The HDFC Nifty 50 Index Fund belongs to a subcategory of mutual funds that have a portfolio built to closely resemble or follow the components of a market index. Investors should take due note of the market and portfolio compositions before investing. The percentage of stocks in index funds will be identical to that of the Benchmark they represent.
For instance, this index fund that follows the Nifty Index will contain all the equities in precisely the same proportion as the Nifty index.
The returns given by the index and the returns supplied by the scheme, however, can occasionally differ slightly. The term’ tracking error’ is referred to as this phenomenon, and the lesser the tracking error, the better the fund proves to be. So, investors should always go for the fund showing fewer tracking errors.
What is the expense ratio?
The connotation’ Expense Ratio’ means the yearly sum of money one needs to pay as remuneration to the company for managing your investments in that mutual fund. It will help if investors go for a lesser expense ratio, as the fund operating fees get deducted by this, leading to greater returns.
Who should invest in HDFC Nifty 50 Index?
Investors who are not comfortable with exercising technical decision-making about the stock market, or are new to the game, must choose the HDFC Nifty 50 Index Fund. Investment in this fund is very easy and simple and doesn’t require a person to be too well-versed in the nitty-gritty of the investment process.
Since the portfolio of this fund is designed such that it adheres to the NIFTY 50 index and resembles its composition closely, it is suitable for investors who do not wish to deviate much from the benchmark while, at the same time, wanting diversification.
At least seven years of time-period is required for the capital to mature when invested in this fund as otherwise, it may face fluctuations when invested in for a shorter term. Only over the long run, the returns in the range of 10% to 12% can be foreseen. Hence, this fund is ideal for investors who are looking at a long-term investment horizon for themselves.
● To ensure that investors receive the highest possible returns on their investments made, the HDFC fund managers make every effort with their professionalism to lower the tracking error of index funds. Investors benefited much in their endeavour from this.
● Since the fund is passively managed, the expense ratio turns out to be much lower than most other funds in its category. Resultantly, investors are left with a higher profit margin as much less cash is expended from their pockets before the returns begin accruing.
● The tax structure of this fund is very affordable and flexible. Newer investors who may not have very strong financial backing are benefitted from this. Under the fund, the redemption of the units of index funds will earn you capital gains which are taxable and dependent on the duration of the investment.
● Being of a diversified nature, HDFC Nifty 50 Index Fund reduces the risk associated with the investment portfolio. It is less vulnerable to risks and volatilities associated with equity as they replicate an index benchmark. Hence, they are ideal in times of a market rally and can fetch lucrative returns.
● This fund is easier to manage relatively than others since investors do not feel the need to worry about the performance of specific funds other than what they are concerned with. It is germane for well-organised markets as well.
● Its trailing returns over different time periods are -5.5% (1yr), 15.22% (3yr), 11.65% (5yr), and 14.6% (since launch), as against Category returns for the same time duration, such as: -5.36% (1yr), 15.29% (3yr) and 10.82% (5yr). Overall, it is guaranteed to exceed the average expectations of an investor.
- Fund Name
- Fund Size
- 3Y Returns
- Sundaram Nifty 100 Equal Weight Fund – Dir Growth
15.3%Fund Size - 63
23.5%Fund Size - 63
12.5%Fund Size - 63
- UTI-Nifty 50 Index Fund – Direct Growth
17.7%Fund Size - 12,092
21.7%Fund Size - 12,092
13.5%Fund Size - 12,092
- ICICI Pru Nifty 50 Index Fund – Direct Growth
17.7%Fund Size - 4,976
21.6%Fund Size - 4,976
13.4%Fund Size - 4,976
- Nippon India Index Fund – Nifty 50 Plan – Dir Growth
17.7%Fund Size - 997
21.6%Fund Size - 997
13.4%Fund Size - 997
- Franklin India NSE Nifty 50 Index Fund – Direct Growth
17.5%Fund Size - 541
21.3%Fund Size - 541
13.1%Fund Size - 541
AMC Contact Details
Frequently Asked Questions
How to invest in HDFC Index Fund-Nifty 50 Plan – Direct ?
- Login to your 5paisa account, Go to the Mutual Funds section.
- Search for HDFC Index Fund-Nifty 50 Plan – Direct in the search box.
- Click on "Start SIP" if you wish to do a SIP or click on “One-time” if you wish to invest a lumpsum amount then click on "Invest Now"
What is the NAV of HDFC Index Fund-Nifty 50 Plan – Direct ?
How to redeem HDFC Index Fund-Nifty 50 Plan – Direct holding ?
What is the minimum sip amount of HDFC Index Fund-Nifty 50 Plan – Direct?
What are the top sectors HDFC Index Fund-Nifty 50 Plan – Direct has invested in?
- Banks - 31.92%
- IT-Software - 12.86%
- Petroleum Products - 10.25%
- Diversified FMCG - 7.3%
- Automobiles - 5.94%
Can I make investments in both the SIP and Lump Sum schemes of HDFC Index Fund-Nifty 50 Plan – Direct?
How much returns have HDFC Index Fund-Nifty 50 Plan – Direct generated ?
What is the expense ratio of HDFC Index Fund-Nifty 50 Plan – Direct ?
What is the AUM of HDFC Index Fund-Nifty 50 Plan – Direct?
What are the top stock holdings of HDFC Index Fund-Nifty 50 Plan – Direct?
How can I redeem my investments in HDFC Index Fund-Nifty 50 Plan – Direct?
Step 2: Log in to your account by adding Folio No. and M-Pin
Step 3: Click on Widhrawal > Redemption
Step 4: Select HDFC Index Fund-Nifty 50 Plan – Direct in Scheme, enter the redemption amount, and click on submit button.