HDFC Asset Management Company has filed papers with Sebi for launching nine passive funds including exchange-traded funds on Nifty Growth Sectors 15, Nifty IT, Nifty Next 50, Nifty Private Bank, Nifty 100 Low Volatility 30, Nifty 100 Quality 30, Nifty 200 Momentum 30 and NV 20.
Being the market leader and one of the early entrants into the asset management business, the fund house has few options to launch a new product on actively managed funds category as per Sebi scheme Categorization and Rationalization of Mutual Fund.
The fund house has few passively-managed funds on Nifty and Sensex, one banking sector-linked passive fund and a gold ETF.
In June, the fund house launched an actively managed Banking and Financial Services Fund which has assets under management of ₹ 2,181 crore as of last month-end. It also came out with a passive fund on Asset Allocation Fund of Funds and has an AUM of ₹ 1,731 crore. Investors have been showing more interest in passive funds with concern on unrelentless run-up in equity valuation.
Navneet Munot, Managing Director, HDFC AMC in an investor’s conference call after the quarterly results said there are few gaps in categories such as sector and thematic funds, passive products, both ETF and index funds, international funds and some of the fund of funds.
“Over the last couple of quarters, we have launched a few products. We are going to have some more products over the next several quarters. We believe that all of these efforts, including the performance improvement, would be noticed by the market and we should be able to see a gradual improvement in the market share,” he added.