HDFC Nifty Top 20 Equal Weight Index Fund Files Draft with SEBI

HDFC Mutual Fund has filed a draft scheme information document with SEBI for the HDFC Nifty Top 20 Equal Weight Index Fund. This is an open-ended index fund that aims to replicate the Nifty Top 20 Equal Weight Index (TRI). The fund is designed to deliver returns similar to the index before fees and expenses, subject to tracking errors.

Fund Structure and Objective

Unlike traditional index funds where stocks are weighted based on market capitalization, this scheme assigns equal weight to all 20 stocks in the index. This means no single stock has a disproportionate impact on the portfolio, reducing concentration risk.

The fund is structured to provide exposure to 20 large-cap companies, to provide diversification while following a passive investment strategy.

Asset Allocation

  • 95% – 100%: Equity securities covered under the Nifty Top 20 Equal Weight Index
  • 0% – 5%: Debt and money market instruments

The allocation ensures that the fund remains closely aligned with the underlying index while maintaining some liquidity.

Fund Details

  • Category: Index Fund
  • Benchmark: Nifty Top 20 Equal Weight Index (TRI)
  • Investment Objective: Replicate the index performance over the long term
  • Minimum Investment: ₹100 and multiples of ₹1 thereafter
  • NFO Price: ₹10 per unit
  • Expense Ratio: Capped at 1%
  • Liquidity: Open-ended, allowing daily transactions post-NFO

Tracking Error and Risks

Since this is a passive fund, its performance depends on how accurately it replicates the index. Factors like tracking error, cash balance, corporate actions, and market fluctuations could cause slight deviations in returns.

The fund is awaiting SEBI approval. Once cleared, HDFC AMC will announce the NFO dates. 

Want to plan regular withdrawals? Our SWP Calculator helps you calculate how much you can withdraw while keeping your investments intact. Try it now!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

HDFC Innovation Fund Files Draft with SEBI

HDFC Mutual Fund has submitted a draft Scheme Information Document (SID) to the Securities and Exchange Board of India (SEBI) for its new offering, the HDFC Innovation Fund. It is an open-ended equity-oriented scheme that will invest in companies focusing on innovation across industries. 

The fund follows a thematic approach, targeting businesses that implement new technologies, processes, or business models.

Structure and Strategy

The HDFC Innovation Fund will primarily invest 80-100% of its assets in equity and equity-related instruments of companies classified under the innovation theme. The fund can also allocate up to 20% in other equities, up to 10% in REITs and InvITs, and up to 20% in debt and money market instruments.

The benchmark for this scheme is the NIFTY 500 Total Return Index (TRI). This aligns with SEBI and AMFI guidelines for thematic mutual funds.

NFO and Exit Load

The scheme will be available for purchase during the New Fund Offer (NFO) period, at a price of ₹10 per unit. Investors will have the option to invest through Regular and Direct plans, with two investment options: Growth and Income Distribution cum Capital Withdrawal (IDCW).

For redemptions, the fund follows these conditions:

  • 1% exit load if redeemed within one month of investment
  • No exit load after one month

Redemption proceeds will be transferred within three business days, and IDCW payouts will be processed within seven working days.

Thematic Focus

The scheme intends to invest in companies that demonstrate product, service, or process innovation. This includes sectors such as technology, healthcare, renewable energy, fintech, and consumer goods. Businesses engaged in automation, artificial intelligence, digital payments, or sustainable manufacturing may also be considered.

Additional Details

Feature Details
Fund Type Open-ended equity scheme
Benchmark NIFTY 500 TRI
Minimum Investment ₹100
Plans Available Regular & Direct
Exit Load 1% within 1 month, Nil after
NFO Price ₹10 per unit
Redemption Processing 3 business days

Plan your SBI SIP investments better! Use our easy-to-use SBI SIP Calculator and estimate future returns with just a few clicks. Your financial growth starts here.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

NFO Alert: DSP Mutual Fund Launches Nifty Private Bank Index Fund

DSP Mutual Fund has launched the DSP Nifty Private Bank Index Fund, an open-ended equity scheme that tracks the Nifty Private Bank Index. The fund aims to generate returns in line with the index, subject to tracking errors. The New Fund Offer (NFO) opens on February 14, 2025, and closes on February 28, 2025.

Fund Details

  • Fund House: DSP Mutual Fund
  • Type: Open-ended
  • Category: Equity – Sectoral Banking
  • Benchmark: Nifty Private Bank TRI
  • Minimum Investment: ₹100
  • Plans Available: Growth, IDCW
  • Exit Load: None
  • Lock-in Period: Not applicable
  • Risk Level: Very High

Investment Strategy

The fund follows a passive investment strategy, meaning it will invest in the same stocks as the Nifty Private Bank Index in the same proportion. It is not an actively managed fund, so the performance will largely depend on how the private banking sector performs. The goal is to replicate index returns rather than beat them.

The fund will be managed by Anil Ghelani. The Registrar & Transfer Agent for the scheme is Computer Age Management Services Ltd. (CAMS).

Sectoral Focus

This is a sector-specific fund, meaning it will only invest in private banks. Since private banks have historically outperformed public sector banks in profitability and efficiency, the fund provides exposure to this particular segment. However, being concentrated in one sector, the risk is higher compared to diversified equity funds.

Since this is a high-risk fund, it may not be suitable for conservative investors. The NFO is open for a limited period, from February 14 to February 28, 2025.

Ensure steady returns with systematic withdrawals! Estimate your withdrawals with our SWP Calculator and manage your finances seamlessly.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

HDFC Mutual Fund Announces Dividend Distribution 2 Funds

HDFC Mutual Fund has declared dividends for two of its equity-focused funds. Investors in the HDFC Focused 30 Fund will receive a dividend of ₹2.25 per unit, while those holding the HDFC Capital Builder Value Fund will get ₹2.75 per unit. This applies to both regular and direct dividend options. 

The record date for eligibility is February 13, 2025, meaning only those who hold units before this date will receive the payout.

HDFC Focused 30 Fund

The HDFC Focused 30 Fund follows a concentrated investment approach, investing in up to 30 companies to generate long-term capital appreciation. This open-ended scheme, launched on January 1, 2013, has delivered a 15.64% return since inception. With assets under management (AUM) of ₹15,688 crore (as of January 31, 2025), the fund is benchmarked against the NIFTY 500 TRI index.

Investors can start with a minimum investment of ₹100, with SIPs also available for the same amount. The exit load is 1% for redemptions within 365 days, making it a suitable option for those with a long-term perspective. The expense ratio is 0.67%, and the fund is categorized under the Very High-risk grade.

HDFC Capital Builder Value Fund

The HDFC Capital Builder Value Fund focuses on undervalued stocks, aiming for capital appreciation over time. Since its launch on January 1, 2013, the fund has returned 16.34%, slightly outperforming the Focused 30 Fund. It has an AUM of ₹6,950 crore as of January 31, 2025, and is also benchmarked against NIFTY 500 TRI.

Similar to its counterpart, this fund allows a minimum investment of ₹100 and SIP investments from the same amount. The exit load is 1% if redeemed within 365 days, and the expense ratio stands at 1.04%. The fund falls under the Very High-risk category, with an Above Average risk grade but a Below Average return grade.

Curious about your SBI SIP returns? Get accurate estimates of your investment growth using our SBI SIP Calculator and stay ahead of your financial goals.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

ICICI Prudential Commodities Fund Announces Dividend of ₹2.5 Per Unit

ICICI Prudential Mutual Fund has declared a dividend of ₹2.5 per unit under the regular and direct dividend options of the ICICI Prudential Commodities Fund. The record date for this distribution is February 13, 2025. Investors holding units as of this date will be eligible for the payout.

Fund Overview

The ICICI Prudential Commodities Fund is an open-ended mutual fund that was launched on October 15, 2019. It primarily invests in companies engaged in commodity and commodity-related sectors. The fund has delivered a 29.35% return since launch and follows the NIFTY Commodities TRI as its benchmark. It falls under the very high-risk category, according to the riskometer.

In the previous year, the fund declared a dividend of ₹2.5 per unit on February 15, 2024.

Asset Allocation 

As of January 31, 2025, the fund manages ₹2,508 crore in assets. The asset allocation is as follows:

  • 98.05% in equity
  • 0.12% in debt
  • 1.83% in cash & cash equivalents

Investment Details

For those looking to invest, the minimum requirements are:

  • Minimum lump sum Investment: ₹5,000
  • Minimum Additional Investment: ₹1,000
  • Minimum SIP Investment: ₹100
  • Minimum Withdrawal: ₹1
  • Exit Load: 1% for redemptions within 90 days

There is no lock-in period for this fund.

Expense Ratio & Fund Manager

The expense ratio stands at 1.04% (as of January 31, 2025). The fund is managed by Lalit Kumar, and Computer Age Management Services Ltd. serves as the registrar & transfer agent.

Investors looking at dividend payouts should check record dates before making investment decisions.

Ready to watch your savings grow? Try our SIP Calculator today and unlock the potential of disciplined investing. Perfect for planning your financial future. Start now!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Coromandel International and Subsidiary Ink ₹410 Crore Lease Agreement in Thane

Coromandel International Limited is an Indian agrochemical company that makes crop protection products. Originally named Coromandel Fertilisers, the company makes fertilisers, pesticides, and speciality nutrients.

Signed a Lease in Thane

In a significant development, Coromandel International Ltd. and its wholly owned subsidiary, Coromandel Chemicals Ltd., have entered into a lease agreement for a prime property in Thane. As per an exchange filing on Wednesday, this arrangement will see Coromandel International secure ₹156.90 crore while its subsidiary stands to gain ₹253.10 crore.

Further fortifying its market position, Coromandel International has clinched a ₹1,539 crore contract from the Andhra Pradesh government for the expansion of its fertiliser manufacturing facility in Kakinada.

The Industries and Commerce Department has extended a 45% incentive on eligible fixed capital investments, subject to adherence to stipulated conditions.

Q3 FY25 Results

The company’s robust financial performance underscores its growth trajectory. Net profit soared by 122% in the third quarter of the current fiscal, reaching ₹511.77 crore as opposed to ₹230.98 crore during the corresponding period last year.

Revenue witnessed an impressive 26.9% surge, amounting to ₹6,935.19 crore for the October–December quarter, in contrast to ₹5,464.15 crore in the preceding year.

Moreover, EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) surged by 102%, climbing to ₹721.77 crore for the quarter ending 31st December 2024, up from ₹357.84 crore in the previous fiscal. Profitability margins also exhibited marked enhancement, expanding to 10.4% in Q3, a significant rise from 6.5% in the corresponding period last year, highlighting Coromandel International’s remarkable operational efficiency and financial resilience.

Share Price and Performance 

At 9:23 AM on February 13, 2025, Coromandel International Ltd shares traded at ₹1,838.20 per share on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

SEBI Proposes Reforms to Margin Pledge System to Prevent Misuse of Client Securities

The Securities and Exchange Board of India (SEBI) has proposed amendments to the margin pledge system to enhance transparency and prevent the misuse of client securities by brokers.

The draft circular, open for public comments until 4 March, aims to address concerns related to brokers retaining invoked securities in their demat accounts, thereby reducing systemic risks.

Strengthening Controls Over Invoked Securities

SEBI has identified instances where brokers have not been selling clients’ securities on the same day after the invocation, leading to an accumulation in their demat accounts. To address this, SEBI proposes a new mechanism that will block clients’ securities for early pay-in within their own demat accounts once invoked. 

This measure aims to prevent unauthorised usage by brokers while ensuring a transparent transaction trail in the margin pledge system.

Introduction of the “Pledge Release for Pay-in” Mechanism

The draft circular also highlights operational difficulties brokers face when selling pledged securities. At present, brokers must first un-pledge the securities before transferring them for settlement. 

SEBI now proposes a single instruction mechanism, “pledge release for pay-in,” which will enable automatic pledge release and pay-in block set up in the client’s demat account. Depositories will be required to develop the necessary infrastructure to support this process, eliminating manual or electronic intervention for un-pledging and delivery.

Conclusion

SEBI’s proposed changes are expected to improve the integrity of the margin pledge system, ensuring that clients’ securities remain protected. The automation of the pledge release and pay-in process will enhance transparency and streamline operations, reducing the risk of misuse by brokers.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

PM Vidyalaxmi Education Loan: Know More Details About Scheme

The central government has launched the Pradhan Mantri Vidyalaxmi (PM Vidyalaxmi) education loan scheme to provide financial assistance to meritorious students seeking higher education. 

Approved by the Union Cabinet in November last year, this initiative aims to remove financial barriers for students admitted to 860 top Higher Educational Institutions (HEIs) in India. The scheme is expected to benefit over 22 lakh students annually, ensuring access to quality education through collateral-free loans.

Key Features of PM Vidyalaxmi Scheme

  1. Eligibility: Students admitted to Quality Higher Education Institutions (QHEIs) can apply.
  2. Collateral-Free Loans: No guarantor or collateral is required to avail of the loan.
  3. Loan Availability: Loans can be taken from Scheduled Banks, Regional Rural Banks, and Cooperative Banks.
  4. Credit Guarantee: The Government of India provides a 75% credit guarantee on loan amounts up to ₹7.5 lakh.
  5. Interest Subvention: Students with an annual family income of up to ₹8 lakh will receive a 3% interest subvention on loans up to ₹10 lakh during the moratorium period.
  6. Interest Rates: Vary between 8.1% and 18%, depending on the lending institution and course fee.
  7. Repayment Tenure: Loans can be repaid over 15 years, excluding the moratorium period.
  8. Funding Allocation: The government has allocated ₹3,600 crore for the scheme from 2024–25 to 2030–31, benefitting 2.2 million students annually.

Application Process 

  1. Visit the Official Vidyalaxmi Portal and apply for an education loan.
  2. Register on the portal by providing details such as name, email, mobile number, Aadhaar number, and address.
  3. Log in using the created credentials.
  4. Access the ‘Loan Application’ section and select the type of loan.
  5. Fill in the required details, including course name, institution, and loan amount.
  6. Submit the application after verifying all details.
  7. Track the loan application status through the Vidyalaxmi portal, which will notify applicants of their approval status.

Conclusion

The PM Vidyalaxmi education loan scheme is a significant step towards making higher education accessible to students across India. By offering collateral-free loans with flexible repayment options, the initiative aims to empower students financially, enabling them to pursue their academic aspirations without constraints.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

BEML Joins Hands With STX Engine for Defence Engine Solutions

BEML, under India’s Ministry of Defence, has forged a strategic alliance with South Korean firm STX Engine to co-develop, manufacture, and market cutting-edge battle tank and marine engines, along with spares and engine aggregates.This collaboration extends to servicing and maintenance, ensuring India’s defence readiness while unlocking export potential to allied nations.

The Memorandum of Understanding (MoU) was signed by Shri Shantanu Roy, CMD, BEML Ltd, and Mr Sangsu Lee, President & CEO, STX Engine, in the presence of senior officials from both organisations. 

This landmark partnership is set to revolutionise engine production by enhancing localisation, streamlining specialised manufacturing, and reinforcing India’s self-reliance in critical defence technologies.

By leveraging their combined expertise, BEML and STX Engine are poised to deliver state-of-the-art solutions that align with India’s national security imperatives, fortifying its defence ecosystem and positioning the nation as a formidable player on the global stage.

BEML Q3 FY25 Results

In Q3 FY25, BEML Limited reported a consolidated net profit of ₹24.41 crore, marking a 49.4% decline from ₹48.20 crore in the previous year. Revenue from operations fell 16.4% year-on-year to ₹875.77 crore, while total expenses dropped 16.1% to ₹850.70 crore.

Despite the profit dip, BEML declared an interim dividend of ₹5 per share, with a record date of 14 February 2025. Over the nine-month period ending 31 December 2024, net profit plunged 80.1% to ₹4.97 crore, with revenue declining 6.7% to ₹2,369.69 crore. 

Operating across defence & aerospace, mining & construction, and rail & metro, BEML remains 54.03% government-owned as of December 2024.

Share Price Performance 

At market close on February 12, 2025, BEML Ltd shares ended 2.11% lower at ₹2,880 per share on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Vedanta Board Approved to Raise Up to ₹3,000 Crore Via NCDs Issue

Vedanta Limited is involved in the production of zinc, lead, silver, iron ore, steel, copper, aluminium, and oil & gas. It is part of the Vedanta Group, led by billionaire Anil Agarwal. The company has a strong presence in India and operates globally. It is listed on the NSE and BSE in India.

Fund Raise via NCDs 

Vedanta Limited has announced plans to raise up to ₹3,000 crore through a Non-Convertible Debenture (NCD) issuance, reinforcing its financial strategy for sustained growth. The move underscores Vedanta’s commitment to bolstering its capital structure while delivering exceptional value to its stakeholders.

The Metal and Mining major will issue up to 3 lakh securities of the face value of ₹1,00,000 per NCD aggregating up to ₹3,000 crore.

Q3FY25 Results

In the Q3 FY25 financial year, Vedanta Limited reported a consolidated net profit of ₹3,547 crore, marking a 76% increase from ₹2,013 crore in the same period the previous year. The company’s revenue from operations rose by 10% year-on-year to ₹38,526 crore. Consolidated EBITDA surged by 30% to ₹11,284 crore, with margins improving by 517 basis points to 34%.

This robust performance was driven by favourable market prices and higher premiums. The aluminium segment achieved its highest-ever production of 613 kilotonnes, a 2% increase year-on-year. The Zinc India operations reported the lowest cost of production in the last 15 quarters, at $1,041 per tonne, a 5% decrease year-on-year. 

Additionally, the mined metal production of Zinc International rose by 12% year-on-year to 46 kilotonnes, delivering the lowest cost of production in the last seven years at $1,181 per tonne.

Arun Misra, Executive Director of Vedanta, attributed the strong results to strategic cost optimisation and production ramp-up across key businesses. He emphasised the company’s focus on structural cost-saving initiatives and favourable commodity prices as key factors in delivering this outperformance.

Share Price Performance 

At 3:29 PM on February 12, 2025, Vedanta Ltd shares traded at ₹422.40 per share on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.