Upcoming NFO: HDFC Mutual Fund Files Draft for BSE REITS and Commercial Real Estate Index Fund

HDFC Mutual Fund has filed draft papers for the HDFC BSE REITS and Commercial Real Estate Index Fund. The proposed scheme is an open-ended index fund that will track the BSE REITS and Commercial Real Estate Index (TRI).  

The fund will seek to generate returns in line with the index, before fees and expenses. However, the draft document states that the scheme may not fully match the index's performance because of tracking error.  

Portfolio Linked to Index Constituents 

The fund is to invest primarily in securities included in the underlying index. At least 95% of the scheme's net assets are proposed to be allocated to index securities, while the remaining portion may be invested in other permitted instruments.  

The portfolio will be changed when there are additions, removals or changes in the weightings of securities in the index. Securities received because of corporate actions may also be held temporarily before the portfolio is adjusted.  

Minimum Investment Set at ₹100 

The minimum investment amount has been set at ₹100 during the New Fund Offer (NFO) and after the scheme opens for regular transactions. Additional investments can be made in any amount thereafter.  

The draft document does not specify the opening and closing dates for the NFO. Units will be issued at ₹10 each during the offer period.  

Exit Load for Early Redemptions 

Investors redeeming or switching out units within three months from the date of allotment will have to pay an exit load of 0.50%. No exit load will apply to redemptions or switch-outs made after the three-month period.  

For SIPs, STPs and other systematic transactions, the exit load applicable on the date of registration or enrolment will apply. No exit load will be charged on bonus units or units allotted through the reinvestment of IDCW.  

Daily NAV Disclosure 

The scheme will reopen for sale and repurchase within five working days of unit allotment. Its first NAV will be disclosed within five business days, followed by NAV disclosures on every business day. 

Read More: NFO Alert: Quantum Mutual Fund Launches Quantum Flexi Cap Fund! 

Conclusion  

The proposed fund will follow the BSE REITS and Commercial Real Estate Index, with a minimum investment of ₹100 and a 0.50% exit load for redemptions within three months. 

 
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.