HDFC NIFTY100 Low Volatility 30 Index Fund
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Business Overview
The HDFC NIFTY100 Low Volatility 30 Index Fund is designed for investors seeking stability and consistent returns. This fund focuses on low-volatility stocks from the NIFTY 100 index, making it ideal for conservative investors or those new to equity markets. It aims to reduce risk while providing exposure to high-quality companies, ensuring a balanced investment approach. With a disciplined investment strategy, this fund stands out in the current market landscape.
- Targets low-volatility stocks for reduced risk
- Ideal for conservative and first-time investors
- Part of the NIFTY 100 index for quality exposure
- Aims for consistent returns over market cycles
- Managed by HDFC, a trusted name in finance
Investment Thesis
The HDFC NIFTY100 Low Volatility 30 Index Fund stands out due to its strong promoter credibility, robust growth in digital services, and attractive valuation compared to peers. This fund is well-positioned to capitalize on market stability while offering investors a reliable avenue for wealth creation.
- Managed by HDFC, a trusted name in Indian finance with a strong track record.
- Focus on low volatility stocks provides stability in uncertain market conditions.
- Digital services are rapidly growing, enhancing the fund's potential returns.
- Attractive valuation relative to peers makes it a compelling investment choice.
- Diversification across low volatility stocks mitigates risk for investors.
Opportunity vs Risk
- Stable returns in volatile markets
- Diversification across low volatility stocks
- Potential for steady capital appreciation
- Suitable for conservative investors
- Limited growth potential
- Market fluctuations may impact returns
- Higher expense ratios than direct stocks
- Dependence on index performance
Peer Perspective
HDFC NIFTY100 Low Volatility 30 Index Fund trades at a slight premium compared to peers like ICICI Prudential and Nippon India. A sustained improvement in margin stability could trigger a favorable rerating.
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10BusinessHighThe fund focuses on low volatility stocks, which are generally in stable sectors.
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10GrowthHighConsistent revenue growth observed in underlying stocks.
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10ProfitabilityHighStrong ROE and OCF compared to peers.
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8ValuationHighValuation metrics are reasonable but not the lowest in the market.
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7BalanceHighLow debt levels and good liquidity.
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6GovernanceGoodPromoter holding is stable with no significant pledging.
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5DriversGoodGrowth drivers are present but execution risks exist.
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5TechnicalsGoodMarket sentiment is neutral with moderate liquidity.