The HDFC BSE 500 Index Fund is a passive investment option that aims to replicate the performance of the BSE 500 Index, encompassing a diverse range of 500 large and mid-cap stocks in India. Ideal for long-term investors seeking exposure to the broader Indian equity market, this fund offers a systematic approach to wealth creation. By investing in this fund, you gain access to a well-diversified portfolio, making it suitable for both new and seasoned investors.

Diversified exposure to 500 large and mid-cap stocks
Passive investment strategy for long-term growth
Ideal for both new and experienced investors
Low expense ratio compared to actively managed funds
Helps in building a balanced investment portfolio

Investment Thesis

HDFC BSE 500 Index Fund stands out due to its strong promoter credibility, robust growth in digital services, and attractive valuations compared to peers. This combination positions it as a compelling investment opportunity for retail investors seeking long-term wealth creation.

Strong backing from the reputable HDFC Group enhances investor confidence.
Significant growth potential in digital services aligns with market trends.
Attractive valuation metrics provide a favorable entry point compared to competitors.
Diversified exposure to top 500 companies mitigates risk.
Consistent historical performance showcases resilience and reliability.

Opportunity vs Risk

Opportunities

Diversified exposure to top Indian companies
Potential for long-term capital appreciation
Low expense ratio compared to peers
Systematic investment plan (SIP) flexibility

Risks ⚠️

Market volatility affecting returns
Economic slowdown impacts performance
Regulatory changes in mutual funds
High competition in fund management

Peer Perspective

HDFC BSE 500 Index Fund trades at a slight premium compared to peers like SBI Nifty Index Fund and ICICI Nifty Index Fund. A rerating could occur if it maintains margin stability while enhancing growth prospects.

📊 Stock Investment Checklist (100 Points)

HDFC BSE 500 Index Fund • Updated: 2025-09-29 12:17:56

10

Business
High

The fund is invested in a diversified portfolio of HDFC Group companies, which are in future-ready sectors.
10

Growth
High

Consistent revenue and profit growth observed in HDFC Group companies.
10

Profitability
High

Strong ROE and ROCE metrics, with healthy operating cash flow.
8

Valuation
High

Valuation metrics are reasonable compared to peers, but some stocks are at premium valuations.
7

Balance
High

Strong balance sheet with low debt levels and good liquidity.
9

Governance
High

High promoter holding with minimal pledging and good disclosure practices.
5

Drivers
Good

Growth drivers are present, but execution risks remain due to market volatility.
5

Technicals
Good

Market sentiment is mixed, with moderate liquidity and price action.

Final Score & Verdict

Score 71 / 100 • Decent

The HDFC BSE 500 Index Fund shows a decent score with strong fundamentals and growth potential, but investors should be cautious of market volatility.