HDFC Mutual Fund launches HDFC NIFTY Realty Index Fund

HDFC Mutual Fund has launched HDFC NIFTY Realty Index Fund, an open-ended scheme replicating/tracking NIFTY Realty Index (TRI).

The new fund offer or NFO of the scheme is open for subscription and will close on March 21. The scheme will re-open for continuous sale and repurchase within five business days from the date of allotment of units under NFO.

The investment objective of the scheme is to generate returns that are commensurate (before fees and expenses) with the performance of the NIFTY Realty Index (TRI), subject to tracking error.


The scheme will be benchmarked against NIFTY Realty Index (TRI). The scheme will be managed by Nirman Morakhia, Arun Agarwal.

No exit load shall be levied on bonus units and units allotted on reinvestment of IDCW.

The scheme will offer regular and direct plans with growth option only. The maximum total expense ratio (TER) permissible under Regulation 52 (6)4 is upto 1%.

The minimum application amount for purchase and additional purchase is Rs 100 and any amount thereafter.

The scheme will provide an avenue to investors who would prefer a passive investment fund investing in companies that are constituents of the NIFTY Realty Index.

The scheme will invest 95-100% in securities covered by NIFTY Realty Index and 0-5% in debt securities and money market instruments, units of debt schemes of mutual funds.

HDFC NIFTY Realty Index Fund will be managed passively with investments in stocks comprising the underlying index subject to tracking error. The investment strategy would revolve around reducing the tracking error to the least possible through regular rebalancing of the portfolio, taking into account the change in weights of stocks in the index as well as the incremental collections/redemptions in the scheme. A part of the funds may be invested in debt and money market instruments, to meet the liquidity requirements.

The scheme is suitable for investors who are seeking returns that are commensurate (before fees and expenses) with the performance of the NIFTY Realty Index (TRI), over long term, subject to tracking error and want investment in equity securities covered by the NIFTY Realty Index.

The principal invested in this scheme will be at “very high” risk according to the riskometer of the scheme.