HDFC AMC has launched its first international offering – HDFC Developed World Indexes Fund of Funds. The fund will provide exposure to five regions across 23 developed markets countries, 1500+ constituents and 14 currencies with coverage of ~ 56% of global GDP & ~ 50% of world market cap in a single fund.
The fund is being launched in association with Credit Suisse Asset Management, which manages $ 510 billion in assets under management. The Fund 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 global index that captures large and mid-cap representation from 23 developed countries over 1500+ constituents and covers approximately 85% of free float-adjusted market capitalization in each country.
HDFC Developed World Indexes Fund of Funds offers investors an opportunity to expand their investment horizon beyond domestic frontiers and benefit from growth opportunities in companies from the developed world.
The fund also provides its investors 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 the 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, the release said.
The new fund offer (NFO) will open on September 17, 2021, and will close on October 1, 2021. The Fund will re-open for sale and repurchase within 5 business days from the date of allotment of units.
