HDFC Asset Management Company Ltd has recently announced the launch of three smart beta exchange traded funds (ETFs)- NIFTY100 Quality 30 ETF, NIFTY50 Value 20 ETF, and NIFTY Growth Sectors 15 ETF.
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Smart Beta investing involves stock selection and weighting that is done based on pre-defined factors, as defined in the underlying index methodology by NSE Indices Limited, HDFC MF said in a statement.
"These investment strategies endeavour to provide better risk-adjusted returns than broad market cap weighted indices. The indices underlying the Smart Beta ETFs - the NIFTY100 Quality 30 TRI, NIFTY50 Value 20 TRI and NIFTY Growth Sectors 15 TRI - generated higher average rolling returns over 1, 3, 5 and 10 year horizons compared to the NIFTY 100 and NIFTY 50 TRI," it said.
Commenting on the launch, Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Co. Ltd. said, “Smart Beta investing is popular globally with AUM rising steadily. Smart Beta ETFs offer one-shot diversification of portfolio at a low cost, and is proven tool for investors who seek returns over the long-term."
Investors can consider diversifying their investments across factors based on individual preferences, since performance of various factors changes across different market environments. With a minimum investment of Rs 500 per ETF, this is an opportunity for investors to diversify across all 3 Smart Beta ETFs, HDFC MF said.
Here are the details of the three schemes:
| Name of Scheme / Investment Plan | About the scheme/plan |
| HDFC NIFTY100 QUALITY 30 ETF An open ended scheme replicating/tracking NIFTY100 Quality 30 Index(TRI) | - Returns that are commensurate (before fees and expenses) with the performance of the NIFTY100 Quality 30 Index(TRI), over long term, subject to tracking error.- Investment in securities covered by the NIFTY100 Quality 30 Index |
| HDFC NIFTY50 VALUE 20 ETFAn open ended scheme replicating/trackingNIFTY50 Value 20 Index(TRI) | - Returns that are commensurate(before fees and expenses) with the performance of the NIFTY50 Value 20 Index(TRI), over long term, subject to tracking error.- Investment in securities covered by the NIFTY50 Value 20 Index |
| HDFC NIFTY Growth Sectors 15 ETF An open ended scheme replicating/tracking NIFTY Growth Sectors 15 Index(TRI) | - Returns that are commensurate (before fees and expenses) with the performance of the NIFTY Growth Sectors 15 Index(TRI), over long term, subject to tracking error.- Investment in securities covered by the NIFTY Growth Sectors 15 Index |
(Source: HDFC Mutual Fund)
(Edited by : Anshul)
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