“The best way to own common stocks is through an index fund.”
"The best way to own common stocks is through an index fund."
Warren Buffet, Chairman of Berkshire Hathaway
HDFC Index Funds ? NIFTY 50 Plan & Sensex Plan
May 2019
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What does Index Fund mean ?
An Index Fund is a mutual fund scheme that endeavors to track/replicate the constituents of its target benchmark index (such as S&P BSE SENSEX, NIFTY 50).
An Index Fund aims to maintain a portfolio of investments that is weighted the same as its benchmark index in order to mirror its performance.
Index Funds are passively managed funds : There is no active selection of stocks by the Fund Manager The portfolio is rebalanced periodically only when companies enter/exit the index
The expense ratio of index funds are generally lower than than actively managed equity funds Index funds in India, generally track the two major broad based indices i.e NIFTY 50 & S&P BSE Sensex
Indices
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Benefits of Investing in Index Funds
Index Funds are an easy and convenient way to invest in an index Exact Exposure to the markets as per the underlying benchmark index, subject to tracking error Index funds aims to minimize unsystematic risk(risk pertaining to companies, sectors etc) in the investor's portfolio Diversification ? Generally tracks broad based indices thus reducing the impact of decline in value of any one stock or
industry, sector Low Costs ? Since index funds are passively managed, cost are kept relatively low Transparency ? As indices are pre-defined, investors know the securities and proportion in which their money will be
invested
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Presenting
HDFC Index Funds
HDFC Index Fund - NIFTY 50 Plan
An open ended scheme replicating/tracking NIFTY 50 Index
HDFC Index Fund ? Sensex Plan
An open ended scheme replicating/tracking S&P BSE SENSEX Index
Name of Scheme HDFC Index Fund - NIFTY 50 Plan
This product is suitable for investors who are seeking*
? Returns that are commensurate with the performance of the NIFTY 50, subject to tracking errors over long term
? Investment in equity securities covered by the NIFTY 50
HDFC Index Fund - SENSEX Plan
? Returns that are commensurate with the performance of the S&P BSE SENSEX, subject to tracking errors over long term
? Investment in equity securities covered by the S&P BSE SENSEX
Riskometer Investors understand that their principal will be at moderately high risk
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them. 4
HDFC Index Fund ? NIFTY 50 plan
Investment Objective : The investment objective of the Scheme is to generate returns that are commensurate with the performance of the NIFTY 50 Index, subject to tracking errors. There is no assurance that the investment objective of the Scheme will be realized. Product Features The scheme has NIFTY 50 Total Return Index as the underlying Benchmark Index The scheme invests 95% to 100% of its total assets in constituents of NIFTY50 Index in the same proportion as their weights in
the index. The fund has low expense ratio as compared to other actively managed equity funds Ideal for those investors who would like to participate in the India growth story by investing in well-diversified portfolio of well
known large cap companies comprising the index
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