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

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.

SID-HDFC Developed World Indexes Fund of Funds -dated - August 30, 2021
.pdf
Download PDF • 1.04MB

HDFC Developed World Indexes Fund of Funds - NFO Presentation
.pdf
Download PDF • 4.50MB

 

If you have any query or wants any assistance please Call 9837346090 or fill your details by clicking below we will call you

You can also contact us via WhatsApp

You can join to us on telegram

 

*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.































47 views0 comments

Recent Posts

See All