HDFC Mutual Fund files for nine exchange traded funds with SEBI

HDFC Mutual Fund (MF), the country's third largest fund house in terms of asset size, has filed for nine exchange traded funds (ETFs) with SEBI.

These schemes include HDFC Nifty 100 ETF, Nifty Next 50 ETF, Nifty Private Bank ETF, Nifty 100 Low Volatility 30 ETF, Nifty 100 Quality 30 ETF, Nifty 200 Momentum 30 ETF, and a few others.

The recent filings show that the fund house wants to offer several products to investors within the passively-managed funds. So far, the fund house has had just a few passively-managed funds, which are regular products such as Nifty and Sensex-based funds, one banking sector-linked passive fund and a gold ETF.

Most of the investor assets of HDFC MF are held in actively-managed schemes, which is where the fund house had got recognition on the back of its active scheme performances in the past.

Bringing in changes

In September, 2021, HDFC MF launched its first international fund -- Developed World Indexes Fund of Funds -- which was also passively-managed fund.

After Navneet Munot took over as MD and CEO of the fund house this year, the fund house has been trying to bring in some changes.

Some of the changes began with the former MD and CEO -- Milind Barve. The fund house brought in fund managers to offer growth style of investing options to investors. The fund house has been following value style of investing for some its larger schemes.

Investors' interest to passively-managed schemes has gone up in recent years due to its low expense ratios and actively-managed schemes finding it difficult to outperform their benchmarks.

Both existing and new fund houses are bringing in several new products to offer more options to investors that are looking for passively-managed funds.