HDFC Mutual Fund Launches New Fund of Funds
HDFC Mutual Fund has launched the HDFC Diversified Equity All Cap Active Fund of Fund (FOF), an open-ended scheme designed to invest in units of domestic equity-oriented schemes across large, mid, and small-cap segments. The New Fund Offer (NFO) period runs from September 10th to 24th, 2025. A minimum investment of ₹100 is required. The fund aims to provide investors with a simplified approach to equity diversification and portfolio management.
Simplified Portfolio Rebalancing
The FOF simplifies portfolio rebalancing by managing it within the fund structure. This approach potentially reduces operational complexities and tax liabilities for investors compared to individual rebalancing. The fund is managed by Srinivasan Ramamurthy, Fund Manager at HDFC AMC.
Investment Options and Exit Load
The HDFC Diversified Equity All Cap Active FOF offers both Direct and Regular plans with Growth and IDCW (Income Distribution cum Capital Withdrawal) options. An exit load of 1% applies to redemptions within one year of allotment; no exit load is charged thereafter. The fund is benchmarked against the NIFTY 500 (TRI).
Active Management and Diversification
HDFC AMC designed the fund to provide investors with a single equity allocation strategy across market caps. This is achieved through active management and disciplined rebalancing, aiming to provide higher risk-adjusted returns. The fund uses a framework-driven approach to allocate investments across varied market capitalizations.
