HDFC Mutual Fund has launched HDFC Nifty Top 20 Equal Weight Index Fund, a passively managed fund that aims to track the Nifty Top 20 Equal Weight Total Returns Index.

The new fund offering or NFO of the scheme is open for subscription and will close on March 21.

The scheme could be suitable for individuals seeking to capitalize on the long-term growth potential of Indias blue-chip companies through a focused equal-weighted investment approach. This approach provides investors with a simplified way to gain exposure to largecap market leaders while reducing stock concentration risk through equal weight allocation to each stock, according to a release by the fund house.

The fund will be managed by Nirman Morakhia and Arun Agarwal. Investors may participate with a minimum investment of Rs. 100 during both the New Fund Offer (NFO) period and the continuous offer period, which commences after the scheme reopens for purchase and sale. There is no maximum limit on the investment amount, and the final unit allotment will be subject to the deduction of applicable stamp duty and transaction charges, where applicable.