IDFC Mutual Fund launches IDFC NIFTY 100 Index Fund
Premium- The scheme will invest in securities of the Nifty 100 Index in the same proportion as the Index, which represents the Indian equity large cap universe
NEW DELHI : IDFC Mutual Fund has announced the launch of IDFC NIFTY 100 Index Fund, an open-ended equity scheme that will be replicating Nifty 100 Index. The scheme will invest in securities of the Nifty 100 Index in the same proportion as the Index, which represents the Indian equity large cap universe. The investment blend across sectors such as financial services, information technology, oil & gas, and consumer goods. The fund is available for subscription with the new fund offer (NFO) opening on Monday, 7 February and closing on Friday, 18 February 2022.
Highlighting the relevance of launching the IDFC NIFTY 100 Index Fund, Vishal Kapoor, chief executive officer, IDFC AMC, said, “IDFC Nifty 100 Index Fund is an efficient way to gain exposure to the Indian Equity Large Cap universe. Investors can benefit from a relatively stable portfolio of the top 100 well-established businesses as included in the Nifty 100 Index. The fund facilitates diversification across various sectors, would be available at a relatively lower cost compared with diversified equity funds, and enables disciplined investing through a systematic investment plan (SIP), which could help generate long-term capital appreciation. Also, this passive fund is well-positioned to meet the investment needs of different investor segments such as beginners, informed, experienced and retiree."
Nemish Sheth, Fund Manager for IDFC NIFTY 100 Index Fund, added, “An investor may find it challenging to consistently gauge which Index or combination of Indices will perform better in the future. IDFC NIFTY 100 Index Fund tracks the Nifty 100 Index, which provides a complete and efficient exposure to the Large Cap universe compared to an individual exposure or arbitrary mix of Nifty 50 and Nifty Next 50. Stocks performing well in the Nifty Next 50 index would move to the Nifty 50, and thus there is a possibility that investors may lose out on its potential upside while the same continues to be captured in the Nifty 100 Index. Moreover, the Nifty 100 Index has a long track record and has been rewarding for long-term investors."
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