NFO Alert: HDFC Mutual Fund Launches Nifty Auto Index Fund

HDFC Mutual Fund has introduced the HDFC Nifty Auto Index Fund, an open-ended scheme that will track the NIFTY Auto Total Return Index (TRI).  

The New Fund Offer (NFO) will open for subscription on 22 June 2026 and close on 3 July 2026. The scheme is available under the Growth option with a minimum investment amount of ₹100. 

Scheme to Track Auto Index 

The fund will follow a passive investment strategy by investing in stocks that form part of the NIFTY Auto Index. Its portfolio will replicate the benchmark rather than rely on active stock selection.  

The index includes companies from the automobile and auto ancillary segments, giving investors exposure to the sector through a single scheme. 

Sector Linked to Structural Trends 

According to the scheme information document, the automobile industry is undergoing changes driven by rising vehicle demand, increasing electric vehicle adoption and premiumisation across segments.  

Government initiatives such as Make in India and the focus on manufacturing exports have also been identified as factors supporting the sector. The document notes that these trends are linked to India's long-term economic growth. 

Risk Profile and Fund Details 

The scheme falls under the Equity: Sectoral – Auto & Transportation category and carries a "Very High" risk rating under the Riskometer. It has no lock-in period and no exit load.  

The benchmark for the fund is the NIFTY Auto TRI. Nandita Menezes and Arun Agarwal have been appointed as the fund managers. 

Read More: HDFC Mutual Fund Portfolio Update: RIL, Tata Motors and TCS Among Stocks Purchased and Sold in May 2026! 

Conclusion 

HDFC Mutual Fund's new sectoral index scheme will track the NIFTY Auto TRI through a passive investment approach. The NFO remains open from 22 June to 3 July 2026 with no exit load. 

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