BSE Scrip Code: 543775

NSE Symbol: HDFCSML250

An open ended scheme replicating/tracking NIFTY Smallcap 250 Index (TRI)

Investment Objective: To generate returns that are commensurate (before fees and expenses) with the performance of the NIFTY Smallcap 250 Index, subject to tracking error. There is no assurance that the investment objective of the Scheme will be realized.

What is the Nifty Smallcap 250 Index?

The Nifty Smallcap 250 Index represents the smallcap universe of listed stocks in India, comprising approximately the 251st to 500th companies based on market capitalization from NIFTY 500. Investing in the Nifty Smallcap 250 Index provides investors with the opportunity to benefit from the growth potential of these small-sized companies.

Why HDFC Nifty Smallcap 250 ETF?

• Returns Aligned with Nifty Smallcap 250 TRI: This ETF aims to replicate the performance of the Nifty Smallcap 250 Total Return Index (TRI), allowing investors to potentially earn returns similar to the index, which represents the performance of smallcap companies in India.
• Diversified Exposure to Smallcap Universe: The HDFC Nifty Smallcap 250 ETF provides investors with diversified exposure to India's smallcap universe. With a single ETF investment, investors can gain exposure to the performance of a basket of smallcap companies.
• Lower Costs: Lower expenses makes investing in Nifty Smallcap 250 Index Fund a cost-effective way for investors to earn index linked returns.
• Simple and Effective Investment Approach: The HDFC Nifty Smallcap 250 ETF provides a simple investment option for long-term wealth creation. Investors seeking exposure to the growth potential of smallcap companies in India can consider this ETF.

Additional Benefits of the HDFC Nifty Smallcap 250 ETF:

• Diversification: The Nifty Smallcap 250 Index includes a diversified basket of small-cap stocks from various sectors, reducing the risk and offering the potential for better risk-adjusted returns.
• Growth Potential: Small-cap stocks are often in the early stages of growth and have the potential for high growth rates, offering the potential for compelling risk-adjusted returns, especially over the long term.

Who should buy the HDFC Nifty Smallcap 250 ETF?

The HDFC Nifty Smallcap 250 ETF is suitable for investors who are interested in gaining exposure to the smallcap segment of companies in India. It may be particularly suitable for investors who:

• Seek diversification beyond large and midcap companies
• Prefer a low-cost investment option
• Have a long-term investment horizon aimed at wealth creation

However, it's important to note that investments in small-cap stocks, such as those included in this ETF, are often associated with higher volatility and risk compared to large-cap stocks.

What is the ideal investment time horizon for the HDFC Nifty Smallcap 250 ETF?

The HDFC Nifty Smallcap 250 ETF is suitable for investors with a time horizon of 3 years and above.

How to buy the HDFC Nifty Smallcap 250 ETF?

A. On the Stock Exchange: Investors can buy HDFC Nifty Smallcap 250 ETF units through a stockbroker on the Stock Exchange(s) i.e. NSE/BSE.

B. Directly with the Fund: Market Makers/Large Investors:

On an ongoing basis, Market Makers and Large Investors* may approach the Fund directly for subscription/redemption of units of the ETF at the Intra-Day NAV in multiples of Creation Unit size. *The minimum application amount for Large Investors shall be Rs. 25 Crores and in multiples of Creation Unit Size^.

^ Not Applicable till February 28, 2025 for a) Schemes managed by Employee Provident Fund Organisation, India and b) Recognised Provident Funds, approved gratuity funds and approved superannuation funds under Income tax act, 1961.

 

For current constituents of NIFTY Smallcap 250 Index (TRI)  please click here.

For changes to Index constituents, please click here.