Bengaluru: HDFC Asset Management Company Limited., Investment Manager to HDFC Mutual Fund (HDFC MF), one of India’s leading mutual fund houses, announces the launch of HDFC Diversified Equity All Cap Active Fund of Fund (FOF), an open-ended Fund of Fund scheme designed to provide investors with a convenient, diversified, and actively managed equity exposure across large, mid, and small-cap segments. The New Fund Offer (NFO) opens on September 10, 2025, and closes on September 24, 2025.
The scheme seeks to address common investor dilemmas of timing, segment allocation, and rebalancing by offering an all-in-one equity solution. HDFC Diversified Equity All Cap Active Fund of Fund combines the expertise of multiple fund managers, varied investment styles, and disciplined rebalancing through a framework-driven approach. This systematic allocation across market capitalizations aims to deliver higher risk-adjusted returns and a smoother wealth creation journey for investors.
Additionally, the scheme simplifies operational complexities by executing portfolio rebalancing within the fund itself. This structure reduces potential tax liabilities and minimizes the need for frequent investor interventions, thereby fostering better investment discipline, encouraging longer holding periods, and improving long-term wealth creation outcomes.
Commenting on the launch, Mr. Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Company Limited, said, “At HDFC Mutual Fund, our mission is to offer every Indian with solutions that are simple, effective, and rooted in long-term wealth creation. With HDFC Diversified Equity All Cap Active FOF, our endeavour will be to provide investors with an all-in-one equity allocation strategy across different market caps through active management and disciplined rebalancing. This product is designed to help investors stay invested across market cycles, avoid common behavioural pitfalls, and build sustainable wealth over time.”
The fund will be managed by Mr. Srinivasan Ramamurthy, Fund Manager, HDFC Asset Management Company Limited. Commenting on the launch, Srinivasan said, “Equity investors can have multiple dilemmas around when to invest and how to allocate across multiple market caps. Against this backdrop, HDFC Diversified Equity All Cap Active FOF could be considered as it adopts a framework-driven approach to allocation providing investors diversification across market caps and fund manager styles. This should aid a smoother investor journey towards wealth creation.”
Investors may participate with a minimum investment of ₹100 during both the New Fund Offer (NFO) period and the continuous offer period, which commences after the scheme reopens for purchase and sale. The scheme offers both Direct and Regular plans, with options for Growth and Income Distribution cum Capital Withdrawal (IDCW). An exit load of 1% will apply if units are redeemed within one year from the date of allotment; no exit load will be applicable thereafter. The benchmark index for the scheme is the NIFTY 500 (TRI)