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 |
CSIF (Lux) Equity Europe | 19.1 |
CSIF (Lux) Equity Japan | 6.6 |
CSIF (Lux) Equity Pacific ex Japan | 3.3 |
CSIF (Lux) Equity Canada | 3.3 |
BENCHMARK
MSCI World Index (Due to time zone difference, benchmark performance will be calculated with a day’s lag)
ASSET ALLOCATION:
Under normal circumstances, the asset allocation (% of Net Assets) of the Scheme's portfolio will be as follows:
Types of Instruments | Minimum Allocation (% of Net Assets) | Maximum Allocation (% of Net Assets) | Risk Profile |
|---|---|---|---|
Units/Shares of overseas Index Funds and/or ETFs# | 95 | 100 | High |
Debt schemes*, Debt & Money Market Instruments, including Tri Party Repo^, Government Securities and Cash. | 0 | 5 | Low to Medium |
*Domestic Debt Schemes including Liquid & Overnight Schemes
^or similar instruments as may be permitted by RBI/SEBI
#The scheme will invest in Units/Shares of Index Funds and/or ETFs such that in aggregate they endeavour to track the MSCI World Index ( The Benchmark Index).
Currently, the proposed Underlying Schemes viz. Overseas Index Funds/ETFs will be CSIF (IE) MSCI USA Blue UCITS ETF, CSIF (Lux) Equity Europe, CSIF (Lux) Equity Japan, CSIF (Lux) Equity Pacific ex Japan, CSIF (Lux) Equity Canada
FUND MANAGER
Mr. Krishan Kumar Daga - Senior Fund Manager collectively over 28 years’ experience, out of which 11 years in Fund Management and 12 years in Equity Research.
NFO Details
Scheme Opens | 17 Sep 2021 |
Scheme Closes | 1 Oct 2021 |
Minimum Application Amount | During NFO - Purchase: Rs 5,000 and any amount thereafter During continuous offer period (after scheme re-opens for repurchase and sale): Purchase: Rs. 5,000/- and any amount thereafter Additional Purchase: Rs 1,000 and any amount thereafter |
Lock-In-Period | Nil |
Entry Load | Not Applicable |
Exit Load | Exit Load of 1.00% is payable if Units are redeemed/switched-out within 30 days from the date of allotment of units. No Exit Load is payable if Units are redeemed/switched-out after 30 days from the date of allotment. |
Benchmark for Fund | MSCI World Index (Net Total Returns Index) |
Suitability
This Product is suitable for investors who are seeking*
Long term wealth creation
Investors whose investment time horizon is three years or more, this scheme may be suitable for them.
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*Investors should consult their financial advisors if in doubt about whether the product is suitable for them
Note: The above information has been sourced from the Scheme Information Document provided by HDFC Asset Management. Read the entire document before investing, Disclaimer: Jaiprakash (ARN/Distributor - 70524; brand name Vasundhra Investment ) is the distributor of the mutual fund. Please consult your investment advisor before investing
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.