Two more AMCs launch Nifty 100 index funds

The mutual fund industry has recently seen a mad rush of passive funds. Since the start of this year, the mutual fund industry has seen the launch of 23 passive funds in ETF, index and FoF formats across various categories and asset classes. Joining the bandwagon are HDFC Nifty 100 Index Fund and IDFC Nifty 100 Index Fund. These new index funds in the large-cap space will track the Nifty 100 TRI. The Nifty 100 index consists of the 100 largest companies by market capitalisation reflecting the overall market conditions. Both the HDFC Nifty 100 Index Fund and IDFC Nifty 100 Index Fund will close for subscription on February 18, 2022. About the strategy By tracking the Nifty 100 TRI, these funds will allow an investor to invest in the large-cap companies (top 100 companies based on market capitalisation). The Nifty 100 tracks the behaviour of a combined portfolio of two indices, viz., Nifty 50 and Nifty Next 50. Comparing the three indices allocation to top-5 and top-10 stocks, we see that the Nifty 50 index and Nifty 100 index are more closely aligned in thei