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IDFC Nifty 100 Index Fund: NFO Review: —Should You Invest?

by Holistic | Filed Under: Investments

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The IDFC Nifty 100 Index Fund aims to replicate and mirror the NIFTY100 Index.

What is the advantage of investing in Nifty 100 over Nifty 50?

Who can invest in IDFC Nifty 100 Index fund?

Who should avoid IDFC Nifty 100 Index fund?

Let us explore.

Table of Contents:

  • IDFC Mutual Fund
  • Configuration of IDFC Nifty 100Index Fund
  • Investment Objective of IDFC Nifty 100 Index Fund
  • Investment Strategy of IDFC Nifty 100 Index Fund
  • What should I know before investing in Index Funds?
  • Nifty 100 VS Nifty 50
  • Pros of Investing in IDFC Nifty 100 Index Fund
  • Cons of Investing in IDFC Nifty 100 Index Fund
  • The Final Takeaway of IDFC Nifty 100 Index Fund Review

IDFC Mutual Fund:

IDFC Asset Management Company ranks #10 in terms of Asset under Management (AUM) in India.

The fund house has more than 60 schemes across mutual funds, AIF, PMS, etc., and manages over Rs. 1. 26 Lakh Crores of assets.

Configuration of IDFC Nifty 100 Fund:

Investment Objective of IDFC Nifty 100 Fund:

  The primary objectives of this Index fund are:

  • Create wealth over the long term.
  • Investment in equity and equity-related instruments belonging to the Nifty 100 Index.

Investment Strategy of IDFC Nifty 100 Fund:

  • The scheme will invest in Nifty 100 securities with the same proportion.
  • It aims to provide returns before expenses that closely correspond to the total return of the Nifty 100 Index, subject to tracking errors.

What should you know before investing in Index funds?

Index funds are less volatile than other actively managed equity funds. While investing in index funds, choosing a fund with low tracking error is the key. 

Since the index funds are passive, their expense ratio tends to be lower than active mutual funds.

Even though these funds fluctuate in the short term, it averages over the long term period. Long-term investments in index funds can earn better inflation-beating returns.

Index funds don’t assess the underlying securities in the index. Instead, they invest in the entire index without considering the financial status of the underlying companies.

Key Facts to know: IDFC Nifty 100 Index Fund:

  • It is a well-diversified index across key sectors like oil & gas, Information technology, financial services, and consumer goods.
  • Nifty 100 index consists of 100 largest companies based on market cap.
  • This index has a long track record of market trends over the past 16 years.

Nifty 100 VsNifty 50:

Nifty100 consists of India’s large-cap companies in terms of total market cap. Even though this index has companies across 17 sectors, it has a heavy inclination towards IT, oil and gas, consumer goods, and financial services. 

So there is an imbalance in holding weightage among the sectors. Over the long term, the Nifty 100 index has given outstanding returns. For the past 15 years, the average annual return of the index was around 12.3%.

The Nifty50 index consists of India’s large-cap companies based on the free-float market cap. The Nifty50 index is diversified across 13 sectors. But it has a heavy tilt towards a few sectors like financial services and IT.

Since this is based on a free-float market cap, the index doesn’t hold equal weightage to all the companies. Over a long time, the index has beaten inflation with a considerable margin. For the past 15 years, the average annual return of the index was around 12%.

Pros of Investing in IDFC Nifty 100 Index Fund:

  • IDFC Nifty 100 Index fund is free from fund manager bias.
  • This fund provides diversification across various sectors.
  • Nifty 100 returns are relatively stable with less volatility.
  • Long-term investments in this Index fund can yield better returns.
  • Investing through SIP can generate long-term capital appreciation.
  • This fund may have a low expense ratio.

Cons of Investing in IDFC Nifty 100 Index Fund:

  • As an index fund, this may underperform its index due to certain factors like fees and expenses, trading costs, etc.
  • The major risk of index fund investment is tracking error,since it may not perfectly track its index.
  • As an Index fund, it isnot flexible when compared to active funds. This fund will not be able to take any course corrective measure during the correction or market crash.
  • This fund will not be able to deliver market-beating returns.
  • This fund will blindly buy the entire index without doing any analysis on the underlying stocks. In the active large-cap funds, the fund managers will analyse all the large-cap stocks and pick and choose the best stocks based on their research and analysis. This way active funds can take calculated risk compared to this fund.

The Final Takeaways of IDFC Nifty 100 Index Fund Review:

If you are an ultra-conservative investor who is not willing to invest in actively managed funds, this fund may be suitable for you.

If you are an investor looking for midcap or small-cap exposure as well, this fund will not be suitable for you.

The ability of this fund to maintain low tracking error and low expense ratio is untested as of now. It’s better to wait till they create a track record.

Investors expecting dynamic fund management and looking for investments that can beat the market should avoid this fund.
If you have any comments or questions, write them in the comment box below.

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Previous article: Axis Equity ETFs FoF: NFO Review—Should You Invest?
Next article: Navi US Total Stock Market FoF NFO: An Elaborate & Insightful Review

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20. September, 2023.
Na eppo tha financial goal la enna therunju kitta..enaku full support panna thuku thank you..🥰 friendly nalla pesuninga...
Ravi L
Ravi L
15. August, 2023.
Very knowledgeable and professional team, guided me with the precise financial solutions and timely suggestions.
Hardik Dave
Hardik Dave
5. July, 2023.
Holistic Investment is really nice and trust worthy financial planner. They plan things in realistic manner and also consider future dimensions of items also. They are always available for small or big queries, and also share knowledge and help you become more financial literate, and take right decisions in all financial matters.
Dr. Padmakar Wagh
Dr. Padmakar Wagh
27. June, 2023.
Mr Ramalingam who is the Director of Holistic investments has a excellent financial planning knowledge, the entire Holistic team has been very helpful in my financial planning journey and execution. This is my third year of financial planning with Holistic investments and so far I am satisfied with the progress I have made.
Binamra Dash
Binamra Dash
13. June, 2023.
Very knowledgeable team. Guided me properly with my concerns.
Murugan Bala
Murugan Bala
16. May, 2023.
I have been investing through Holistic for the past 4 years and my experience with them have been really good. The team of Rajan and Ramalingam doing excellent services in meeting my needs through proper guidance on investment options customized. Theya re always available on any specific needs time to time.I would recommend their services to my friends and colleagues too.
Neeraja R K
Neeraja R K
15. May, 2023.
Working with holistic investment planners was a really wonderful experience for me. For me the entire team had been very supportive in all ways. Their working strategy is well planned and methodical. They always keep me informed and updated about my investments, so that i can take informed decisions. The team first helps us understand the basics of investments, then they collect data, work with the data and then provide investments solutions according to our goals which i find it the best. Good luck to the entire team.
deepika kulkarni
deepika kulkarni
21. April, 2023.
We have availed holistic service from last couple of years and are very happy with our decision. Their systematic approach has helped us plan our finances and meet our goals. They provide very comprehensive and detail plan and resource management every 6 months which ensures we are on right track to achieve our goals. Rajan and Ramalingam from holistic are always there to help us with our queries. They have also accommodated any changes to our goals or resources mid year in a professional manner.
Ashook Panneerselvam
Ashook Panneerselvam
21. March, 2023.
For the past year, I have been interacting with Holistic Investment. I frequently read Nanayam Vikatan, which is a publication owned by the Vikatan family, and I was impressed by their financial advice. My brother also suggested holistic investing, and he also got excellent financial advice. Holistic Investment follows a methodical approach that I really liked because they first fully understand our financial situation "As Is," which includes "Assets" and "Liabilities," as well as our short-, mid-, and long-term goals, on the basis of which they provide a detailed plan on how to achieve our goals for which they are recommending various investment options. Even in the investment advice, why do they suggest particular mutual funds and what is the justification behind it, which adds transparency to the client. One essential factor is that they are always available. Even if I needed to make some urgent financial decisions, they were very helpful and kind to answer my questions via phone calls, WhatsApp messages, and emails. I was very happy with their service. Periodic reviews are also crucial, even though I have forgotten that they occur once every three months, and I also intend to renew this year.
Mahesh S
Mahesh S
19. February, 2023.
I have availed Holistic investment service for last 1yr against my early retirement decision. they provided me comprehensive detailed report how to move ahead with my existing resources. moreover, they are available to me whenever i have any doubt.. highly recommend others to avail their service
Google rating score: 4.5 of 5,
based on 104 reviews

Google Reviews

Lingesh MMG
Lingesh MMG
20. September, 2023.
Na eppo tha financial goal la enna therunju kitta..enaku full support panna thuku thank you..🥰 friendly nalla pesuninga...
Ravi L
Ravi L
15. August, 2023.
Very knowledgeable and professional team, guided me with the precise financial solutions and timely suggestions.
Hardik Dave
Hardik Dave
5. July, 2023.
Holistic Investment is really nice and trust worthy financial planner. They plan things in realistic manner and also consider future dimensions of items also. They are always available for small or big queries, and also share knowledge and help you become more financial literate, and take right decisions in all financial matters.
Dr. Padmakar Wagh
Dr. Padmakar Wagh
27. June, 2023.
Mr Ramalingam who is the Director of Holistic investments has a excellent financial planning knowledge, the entire Holistic team has been very helpful in my financial planning journey and execution. This is my third year of financial planning with Holistic investments and so far I am satisfied with the progress I have made.
Binamra Dash
Binamra Dash
13. June, 2023.
Very knowledgeable team. Guided me properly with my concerns.
Murugan Bala
Murugan Bala
16. May, 2023.
I have been investing through Holistic for the past 4 years and my experience with them have been really good. The team of Rajan and Ramalingam doing excellent services in meeting my needs through proper guidance on investment options customized. Theya re always available on any specific needs time to time.I would recommend their services to my friends and colleagues too.
Neeraja R K
Neeraja R K
15. May, 2023.
Working with holistic investment planners was a really wonderful experience for me. For me the entire team had been very supportive in all ways. Their working strategy is well planned and methodical. They always keep me informed and updated about my investments, so that i can take informed decisions. The team first helps us understand the basics of investments, then they collect data, work with the data and then provide investments solutions according to our goals which i find it the best. Good luck to the entire team.
deepika kulkarni
deepika kulkarni
21. April, 2023.
We have availed holistic service from last couple of years and are very happy with our decision. Their systematic approach has helped us plan our finances and meet our goals. They provide very comprehensive and detail plan and resource management every 6 months which ensures we are on right track to achieve our goals. Rajan and Ramalingam from holistic are always there to help us with our queries. They have also accommodated any changes to our goals or resources mid year in a professional manner.
Ashook Panneerselvam
Ashook Panneerselvam
21. March, 2023.
For the past year, I have been interacting with Holistic Investment. I frequently read Nanayam Vikatan, which is a publication owned by the Vikatan family, and I was impressed by their financial advice. My brother also suggested holistic investing, and he also got excellent financial advice. Holistic Investment follows a methodical approach that I really liked because they first fully understand our financial situation "As Is," which includes "Assets" and "Liabilities," as well as our short-, mid-, and long-term goals, on the basis of which they provide a detailed plan on how to achieve our goals for which they are recommending various investment options. Even in the investment advice, why do they suggest particular mutual funds and what is the justification behind it, which adds transparency to the client. One essential factor is that they are always available. Even if I needed to make some urgent financial decisions, they were very helpful and kind to answer my questions via phone calls, WhatsApp messages, and emails. I was very happy with their service. Periodic reviews are also crucial, even though I have forgotten that they occur once every three months, and I also intend to renew this year.
Mahesh S
Mahesh S
19. February, 2023.
I have availed Holistic investment service for last 1yr against my early retirement decision. they provided me comprehensive detailed report how to move ahead with my existing resources. moreover, they are available to me whenever i have any doubt.. highly recommend others to avail their service
Google rating score: 4.5 of 5,
based on 104 reviews

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