IDFC Mutual Fund announced the launch of IDFC NIFTY 100 Index Fund, an open-ended equity scheme aiming to create wealth over the long term by replicatingNifty 100 Index. This Index Fund iswell-positioned to benefit from exposure to the top 100 largest companies by market capitalization as included in theIndex.The investment blend across major sectors such as financial services, information technology, oil & gas, and consumer goods facilitates effective diversification of the portfolio.The fund is beneficial for all investors as they can avoid researching and selecting various stocks and mutual funds since next year’s winner cannot be predicted. It will also help avoid rebalancing a manually replicated index fund. The fund is available for subscription on IDFC Mutual Fund microsite https://bit.ly/3HoT9K8withthe New Fund Offer (NFO) opening on Monday, February 07, 2022 and closing on Friday, February 18, 2022.
Highlighting the relevance of launching the IDFC NIFTY 100 Index Fund, Mr. Vishal Kapoor, CEO, IDFC AMC said, “IDFC Nifty 100 Index Fund is an efficient way to gain exposure to the Indian Equity Large Cap universe. Investors can benefit from a relatively stable portfolio of the top 100 well-established businesses as included in the Nifty 100 Index. The fund facilitates diversification across various sectors, would be available at a relatively lower cost compared with diversified equity funds, and enables disciplined investing through a Systematic Investment Plan (SIP), which could help generate long-term capital appreciation. Also, this passive fund is well-positioned to meet the investment needs of different investor segments such as Beginners, Informed, Experienced and Retiree.”
Mr. Nemish Sheth, Fund Manager for IDFC NIFTY 100 Index Fund, added, “An investor may find it challenging to consistently gauge which Index or combination of Indices will perform better in the future. IDFC NIFTY 100 Index Fund tracks the Nifty 100 Index, which provides a complete and efficient exposure to the Large Cap universe compared to an individual exposure or arbitrary mix of Nifty 50 and Nifty Next 50. Stocks performing well in the Nifty Next 50 index would move to the Nifty 50, and thus there is a possibility that investors may lose out on its potential upside while the same continues to be captured in the Nifty 100 Index. Moreover, the Nifty 100 Index has a long track record and has been rewarding for long-term investors. Hence, every investor segment can consider investing in IDFC Nifty 100 Index Fund and aim to build wealth in the long-term with the help of this investment strategy that passively tracks the overall large cap market trajectory.”
An Index Mutual Fund invests in securities with the aim to track the movements of the market index it intends to replicate.IDFC Nifty 100 Index Fund shall invest in securities of the Nifty 100 Index in the same proportion as the Index, to provide a complete representation of the Indian Equity Large Cap universe.The fund has the potential to meet every investor segment’s portfolio requirements. Beginners can step into the world of equity by investing in IDFC Nifty 100 Index Fund, benefiting from a relatively stable portfolio, as large caps can provide relatively more predictable returns than mid and small caps.Informed investorscan fulfil their investment requirement of a convenient and structured equity exposure by investing in this fund, thus avoiding the hassle of recreating and rebalancing a manually replicated index fund.Experienced investorscan complement their existing portfolio of distinct themes with this large cap strategy aligned with the Nifty 100 Index movement. Also, this passive fund can be a cost-effective solution for a Retiree;the fund manager’s intervention being limited to aligning the portfolio with the underlying indexprovidesthe opportunity to invest in the large cap space at a relatively low cost.
