The scheme follows a passive investment strategy and seeks to replicate the performance of the Nifty Auto Index, subject to tracking error. The index comprises companies operating across India’s automobile and auto ancillary sectors, including passenger vehicles, two-wheelers, commercial vehicles, tractors, tyres, and auto components.
The Nifty Auto Index currently consists of 15 stocks selected from the Nifty 500 universe. It is designed to reflect the overall performance of listed automobile-related companies in India and includes manufacturers as well as ancillary businesses linked to the automotive ecosystem.
The launch comes amid continued investor interest in sector-specific and passive investment products. Index funds have gained traction in recent years due to their relatively lower costs and rules-based investment approach compared to actively managed funds.
The fund will be managed by Nandita Menezes and Arun Agarwal. Investors can invest a minimum of ₹100 during the NFO period and after the scheme reopens for continuous subscription and redemption. The scheme will not charge any entry or exit load.
HDFC Asset Management Company Limited (HDFC AMC), the investment manager to HDFC Mutual Fund, was incorporated in December 1999 and received approval from the Securities and Exchange Board of India (SEBI) to operate as an asset management company in July 2000. Apart from mutual fund operations, HDFC AMC also holds licenses for portfolio management services (PMS) and alternative investment funds (AIF).
The company manages investment products across equity, fixed income, and other asset classes through a nationwide distribution network that includes banks, independent financial advisors, and national distributors.
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