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HDFC Developed World Indexes Fund of Fund


HDFC Mutual Fund has launched its first international fund - HDFC Developed World Index Fund of Fund. According to the fund house the FoF will provide exposure to 14 currencies in 23 developed market countries with 5 regions, 1500+ components and coverage of 56% of global GDP and 50% of world market cap. NFO is open from 17th September 2021 and will close for subscription on 1st October 2021.

The fund is being launched in association with Credit Suisse Asset Management. It will invest in a Credit Suisse Index Fund and/or ETF that will track the performance of the MSCI World Index as a whole. The MSCI World Index is a popular global index that reflects the large- and mid-cap representation of 23 developed countries.


What is the MSCI World Index?

The MSCI World Index captures large and mid cap representation across 23 Developed Markets (DM) countries: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the UK and the US.

The index has 1,557 constituents and covers approximately 85% of the free float-adjusted market capitalization in each country. According to the latest fact sheet, the top ten stocks are:

  • Apple 4.23% info tech

  • Microsoft corp 3.59% info tech

  • Amazon.Com 2.47% cons discr

  • Facebook a 1.51% comm srvcs

  • Alphabet a 1.44% comm srvcs

  • Alphabet c 1.42% comm srvcs

  • Tesla 0.94% cons discr

  • Nvidia 0.92% info tech

  • JPMorgan chase & co 0.81% financials

  • Johnson & Johnson 0.76% health care


INVESTMENT OBJECTIVE

The investment objective of the Scheme is to provide long-term capital appreciation by passively investing in units/shares of overseas Index Funds and/or ETFs which will in aggregate closely correspond to the MSCI World Index, subject to tracking errors.

There is no assurance that the investment objective of the Scheme will be realized.


INVESTMENT STRATEGIES?

The Scheme will invest in Units/Shares of Index Funds and/or ETFs in a passive manner such that in aggregate it will endeavor to track the MSCI World Index (“the Benchmark Index”). Currently, the proposed Underlying Schemes viz. Index Funds/ ETFs are as follows:

Name of Index Fund/ETF

Weights as on August 12, 2021

​CSIF (IE) MSCI USA Blue UCITS ETF

67.6