HDFC Mutual Fund launches HDFC NIFTY Next 50 ETF, HDFC NIFTY 100 ETF

HDFC Mutual Fund has launched two new ETFs – HDFC NIFTY Next 50 ETF and HDFC NIFTY 100 ETF. The fund house says the new schemes will help to expand suite of “HDFC MF Index Solutions”, which HDFC Mutual Fund has been managing for the past 20 years. These funds offer a simple way to gain exposure to the Indian large cap space. The NFOs are now open and will close on August 1.
 
According to the fund house, the benchmark of HDFC NIFTY Next 50 ETF – NIFTY Next 50 Total Returns Index (TRI) offers diversification benefits at stock and sector level, while providing potential for higher risk-adjusted returns vs NIFTY 50 in the long term. Further, this index offers higher potential for growth as it could contain the next league of NIFTY 50 constituents. 
 
The benchmark of HDFC NIFTY 100 ETF – NIFTY 100 TRI offers a simple way to gain exposure to the Indian large cap space by focusing on top 100 companies based on full market capitalization. It provides more balanced diversification than NIFTY 50 Index, while tracking the behaviour of the combined portfolio of NIFTY 50 and NIFTY Next 50 Indices.
 
“HDFC AMC has been one of the oldest players in index solutions with proven capability, giving us a definite edge. Historically, we have always maintained an investor-first approach offering investors the most effective solutions while launching products. The launch of these two funds is part of our endeavour to expand our offerings under ‘HDFC MF Index Solutions’, and provide exposure to customers to India’s large cap companies that have the ability of delivering competitive risk-adjusted returns,” said Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management.
 

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Changes in Our Business Model
 
 
25th Sept 2020
 
Greetings from Moneylife Advisory Services
 
Between financial years 2019-21, SEBI has come up with extensive changes to investor advisor regulations. On Sep 23, 2020, SEBI had issued new additional guidelines. This comes just two months after extensive changes announced in July 2020. Earlier, in December 2019 there was an ad hoc circular
 
As a result of these changes, IAs, cannot accept fees through credit cards, will have to sign a 26-clause investor agreement, have to maintain physical record written & signed by client, telephone recording, emails, SMS messages and any other legally verifiable record for five years. IAs were already asked to record the suitability and rationale for every piece of advice given, sign them and store them for five years.
 
While these extensive and frequent changes, designed to strengthen the conduct of IAs are well-meaning, these have sharply increased compliance efforts and cost. We, being online advisors, find many of changes harder to implement, compared to advisors working in the physical space. We will have to have an army of advisors, administrative and tech staff to be compliant. If we do this, we will have to divert money to these areas and the cost of our service will double. We want to remain the least-cost service in the market to benefit more and more people. In the circumstances, we are forced to change our business model from “advisory” to “research”. This will mean the following:
 
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Debashis Basu
Founder