HDFC Mutual Fund announces launch of Smart Beta ETFs – NIFTY100 Quality 30 ETF, NIFTY50 Value 20 ETF & NIFTY Growth Sectors 15 ETF. HDFC Asset Management Company Ltd., one of India’s leading mutual fund houses that manages assets worth INR 4.34 trillion as on 30 Aug 2022, has announced the launch of NIFTY100 Quality 30 ETF, NIFTY50 Value 20 ETF, and NIFTY Growth Sectors 15 ETF, in order to expand their suite of ‘HDFC MF Index Solutions’. The fund house has been a trusted fund manager in index solutions for 20+ years.
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. 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.
Commenting on the launch, Mr. Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Co. Ltd. said, “Smart Beta investing is popular globally with AUM rising steadily. HDFC AMC is happy to expand index solution offerings for investors that are backed by empirical research. 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. The fund house has 20 years of experience in managing passive funds, which comes with highly disciplined and robust Investment and Risk Management policies and processes.”
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.