HDFC Mutual Fund Announces Launch of Smart Beta ETFs – NIFTY100 Quality 30 ETF, NIFTY50 Value 20 ETF and NIFTY Growth Sectors 15 ETF | India is blooming
Mumbai: HDFC Asset Management Company Ltd, a leading mutual fund company managing assets worth Rs 4.34 trillion as of August 30, 2022, has announced the launch of NIFTY100 Quality 30 ETF, NIFTY50 Value 20 ETFs and NIFTY Growth Sectors 15 ETFs, to expand their suite of ‘HDFC MF Index Solutions’.
Smart Beta investing involves selection and weighting of stocks made on the basis of pre-defined factors, as defined in the methodology of the underlying index by NSE Indices Limited.
These investment strategies strive to provide better risk-adjusted returns than broad market capitalization-weighted indices.
The indices underlying the Smart Beta ETFs – NIFTY100 Quality 30 TRI, NIFTY50 Value 20 TRI and NIFTY Growth Sectors 15 TRI – have generated higher average rolling returns over 1, 3, 5 and 10 year horizons compared to the NIFTY 100 and NIFTY 50 TRI.
Commenting on the launch, HDFC Asset Management MD and CEO Navneet Munot said, “Smart Beta investing is popular around the world with a steady increase in AUM. HDFC AMC is pleased to expand offerings of index solutions for investors that are backed by empirical research.
“Smart Beta ETFs provide one-time portfolio diversification at low cost and are a proven tool for investors seeking long-term returns. The fund house has 20 years of experience managing passive funds, which supports sound investment and risk management policies and processes.
Investors can consider diversifying their investments across factors depending on individual preferences as the performance of various factors changes under different market environments, the company said, adding that with a minimum investment of Rs. 500 per ETF , this is an opportunity for investors to diversify into the three Smart Beta ETFs.