HDFC Diversified Equity All Cap Active FOF NFO Kicks Off on September 10, 2025

The NFO is an open-ended Fund of Fund (FOF) scheme that invests in units of domestic equity-oriented schemes across different market capitalisations, including large, mid, and small-cap companies. Designed to offer capital appreciation and potential income over the long term, the NFO provides a professionally managed investment solution with strategic allocation across market caps, enabling investors to benefit from diversification and risk-adjusted returns. The scheme is managed by experienced fund managers who handle equity selection and rebalancing, reducing behavioural errors for investors. With operational ease, access to established fund management expertise, and a framework-driven approach, the NFO targets both seasoned and new investors seeking long-term growth.

Key Features of HDFC Diversified Equity All Cap Active FOF

• Opening Date: September 10, 2025
• Closing Date: September 24, 2025
• Exit Load: 1% if redeemed or switched out within 1 year; no exit load after 1 year
• Minimum Investment Amount: ₹100 and any amount thereafter

Objective of HDFC Diversified Equity All Cap Active FOF

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The primary objective of the HDFC Diversified Equity All Cap Active FOF - Dir (G) is to generate long-term capital appreciation and/or income by investing in units of domestic equity-oriented schemes across varied market capitalisation segments. The scheme aims to provide investors with exposure to diversified equities while leveraging professional management to optimise returns relative to market conditions. There is no assurance that the investment objective will be achieved.

Investment Strategy of HDFC Diversified Equity All Cap Active FOF

• Invest in units of domestic equity-oriented schemes across large, mid, and small-cap companies.
• Allocation across market caps will be managed dynamically based on economic conditions and market outlook.
• Maintain a portion of the portfolio in liquid and debt instruments, Government Securities, and T-Bills for liquidity.
• Use a framework-driven approach to optimise risk-adjusted returns and reduce concentration in any one market segment.
• Rebalance allocations periodically to align with changing market conditions.

Risks Associated with HDFC Diversified Equity All Cap Active FOF

• Market risk due to exposure to equity-oriented schemes and underlying stock volatility.
• Credit, interest rate, and liquidity risk from investments in debt and money market instruments.
• Potential reduction in returns due to recurring expenses of both the NFO and underlying schemes.
• Risk of underperformance if underlying schemes fail to meet their investment objectives.
• Settlement and operational risks in equity and fixed-income markets.
• Exposure to unlisted or unrated securities, derivatives, and foreign investments may increase volatility.
• Reinvestment, prepayment, and government securities price risk may impact returns.

Risk Mitigation Strategy by HDFC Diversified Equity All Cap Active FOF

The NFO follows a diversified investment approach by allocating funds across domestic equity-oriented schemes of varying market capitalisations (large, mid, and small caps). By spreading investments across multiple underlying schemes, the fund aims to manage volatility and enhance liquidity. The fund manager monitors market conditions and rebalances the portfolio as needed to reduce concentration risk. Additionally, prudent credit and interest rate assessment is applied to debt and money market investments. While these measures mitigate risks, investors should note that risks cannot be eliminated, and market fluctuations may still affect returns.

What Type of Investor Should Invest in HDFC Diversified Equity All Cap Active FOF?

• Investors seeking long-term capital appreciation or income.
• Individuals interested in diversified equity exposure without managing multiple schemes themselves.
• Investors are willing to accept moderate to high risk for potentially higher returns.
• Suitable for those seeking professional fund management and framework-driven allocation across market caps.

Where Will the HDFC Diversified Equity All Cap Active FOF Invest?

• Units of domestic equity-oriented schemes of HDFC Mutual Fund or other mutual funds across large, mid, and small-cap companies.
• Debt and money market instruments, including commercial papers, bills, T-Bills, government securities with maturity up to one year, and tri-party repos.
• Liquid and overnight mutual fund schemes for managing liquidity requirements.
• Exposure to derivatives, foreign securities, and stock-lending within the limits of the underlying schemes.
• Any other instruments permitted by SEBI or RBI, subject to regulatory approvals.