HDFC MF launches HDFC Developed World Indexes Fund of Fund

HDFC Mutual Fund has launched its first international offering – HDFC Developed World Indexes Fund of Fund. The FoF will provide exposure to 5 regions across 23 developed markets countries, 1500+ constituents and 14 currencies with coverage of 56% of global GDP and 50% of world market cap in one single fund, the fund house said. The NFO of the scheme opens today and will close for subscription on October 1.

The fund is being launched in association with Credit Suisse Asset Management. It will invest in Credit Suisse Index Funds and/or ETFs which will in aggregate track the performance of MSCI World Index. MSCI World Index is a popular global index that captures large and mid-cap representations from 23 developed countries.

“This Fund offers investors a gateway to the developed world. This single fund has the potential to offer best possible diversification in terms of exposure across countries, currencies, sector, style and size at a fine cost coupled with a highly efficient structure from the perspective of global taxation and execution. Since the Indian market has a low correlation with developed markets, this Fund could provide a healthy portfolio diversification,” said Navneet Munot – MD & CEO HDFC AMC.

According to the press release, the fund also provides its investors an opportunity to geo-diversify their portfolio across economies and markets, hedge against rupee depreciation, benefit from global growth opportunities and get access to exclusive Global themes. MSCI World Index captures 40 out of top 50 most innovative companies and also participates in the fast growing sectors such as Information Technology, Financial and Health Care. MSCI World Index has lower volatility than NIFTY 50 (TRI USD) and lower correlation with NIFTY 50 TRI across times frames thereby providing meaningful diversification to its investors.

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