HDFC MF launches FTSE India Equity ETF: What the new passive fund tracks

The HDFC FTSE India Equity ETF opened for subscription on September 23 and the New Fund Offer (NFO) will close on October 7.

The scheme will seek to generate returns in line with the FTSE India Equity Index (Total Return Index), before fees and expenses and subject to tracking error.

What does the ETF invest in?

The FTSE India Equity Index comprises 276 stocks and represents around 90% of the market capitalisation of the FTSE India All Cap Index, according to data from FTSE Russell as of August 31, 2026.

The index uses free-float market capitalisation and foreign ownership limits to determine its composition. It is reviewed twice a year, while constituent weights are subject to quarterly capping under the index methodology.

The ETF will predominantly invest in securities forming part of the benchmark index. A limited portion can be invested in debt and money-market instruments and units of debt mutual fund schemes for liquidity purposes.

Minimum investment, fund managers and benchmark

Investors can put in a minimum of ₹500 during the NFO and in the continuous offer period, with subsequent investments allowed in multiples of ₹1.

The scheme will be managed by Abhishek Mor and Arun Agarwal, while its benchmark is the FTSE India Equity Index (TRI).

Unlike an actively managed equity fund, the ETF is designed to follow the composition and performance of its underlying index rather than select stocks based on a fund manager’s discretionary calls. Its actual returns can differ from the index because of expenses and tracking error.

Navneet Munot, Managing Director and CEO, HDFC AMC, said the fund is intended to provide diversified exposure to Indian listed equities through a rules-based approach.