HDFC Mutual Fund has launched a new index-based equity scheme — HDFC BSE India Sector Leaders Index Fund Direct – Growth, open for subscription from 7th November to 21st November 2025. With a very high-risk profile, this open-ended fund seeks to replicate the performance of the BSE India Sector Leaders Index, offering investors exposure to top-performing companies across key sectors.
Key NFO Details
| Detail | Information |
| Fund Name | HDFC BSE India Sector Leaders Index Fund (Direct – Growth) |
| NFO Period | 07 Nov 2025 to 21 Nov 2025 |
| Allotment Date | 26 Nov 2025 |
| Category | Equity – Other Equity Index |
| Risk Level | Very High |
| Fund Type | Open-ended |
| Benchmark | BSE India Sector Leaders TRI |
| Minimum Investment | ₹1,000 (lumpsum), ₹500 (SIP) |
| Exit Load | 0% |
| Short-term capital gains (STCG) | Returns are taxed at 20% if you redeem before 1 year |
| Long-term capital gains (LTCG) | After 1 year, returns above ₹1.25 lakh in a financial year are taxed at 12.5% |
Investment Objective
The scheme seeks to:
• Generate returns that are commensurate (before fees and expenses) with the performance of the BSE India Sector Leaders Index (TRI), subject to tracking error.
This means the fund aims to passively mirror the performance of India’s leading sectoral companies, providing investors with a diversified exposure to market leaders across industries.
How Does This Compare with the Category?
| Time Period | Category Avg. Returns (CAGR) |
| 1 Year | 7.09% |
| 3 Years | 8.72% |
| 5 Years | 10.36% |
| 7 Years | 10.31% |
| 10 Years | 9.89% |
| 15 Years | 6.45% |
| Since Inception | 6.08% |
These returns indicate how index funds tracking diversified equity segments have delivered moderate but stable long-term growth.
Should You Invest in This NFO?
You may consider investing in this NFO if:
• You want passive exposure to India’s top-performing companies across multiple sectors.
• You prefer a low-cost, diversified investment option.
• You have a high-risk appetite and a long-term horizon for wealth creation.
However, since this is a sector leaders index, performance may vary based on sectoral cycles. It’s best suited for investors comfortable with market-linked volatility and looking for index-based diversification.
About HDFC Mutual Fund
HDFC Mutual Fund manages an impressive ₹8,93,028 Cr AUM (as of September 30, 2025) and is one of India’s largest and most trusted fund houses, with a wide range of top-performing equity schemes.
| Fund Name | AUM | 1Y | 5Y |
| HDFC Infrastructure Fund | 2,522 Cr | 2.94% | 34.04% |
| HDFC Small Cap Fund | 36,828 Cr | 3.09% | 30.85% |
| HDFC Mid Cap Fund | 84,855 Cr | 8.69% | 29.49% |
| HDFC Focused Fund | 23,533 Cr | 9.23% | 28.59% |
| HDFC Flexi Cap Fund | 85,560 Cr | 9.45% | 27.67% |
| HDFC Large and Mid Cap Fund | 26,949 Cr | 6.07% | 25.83% |
Top-performing peers in the index and sectoral category include:
| Fund Name | Fund Size | 5Y Returns |
| ICICI Prudential BHARAT 22 FOF | ₹2,354 Cr | 32% p.a. |
| Edelweiss MSCI India Domestic & World Healthcare 45 Index Fund | ₹163 Cr | 15% p.a. |
| Motilal Oswal Nifty Bank Index Fund | ₹647 Cr | 15% p.a. |
Also Read:
- Franklin India Multi-Factor Fund NFO: A Quantitative Equity Approach for 2025
- Bandhan Healthcare Fund NFO: Investing in India’s Growing Healthcare Sector
- Bajaj Finserv Banking and Financial Services Fund NFO: Riding India’s Financial Growth Wave
- Old Bridge Arbitrage Fund NFO: A Low-Risk Income Option for 2025
- Kotak Rural Opportunities Fund NFO: Tapping into India’s Rural Growth Potential
Final Thoughts
The HDFC BSE India Sector Leaders Index Fund NFO allows investors to participate in the growth of India’s leading sectoral companies through a low-cost, passively managed strategy.
For investors with a long-term outlook and high-risk tolerance, this fund can be a suitable addition to an equity portfolio for diversified exposure to India’s strongest sectors.
Before investing, review the scheme document and ensure it fits your financial objectives and risk profile. For a seamless and guided investing experience, consider investing in mutual funds with Torus Digital.
