HDFC Mutual Fund has launched its first international offering – HDFC Developed World Index Fund of fund. The FoF will provide exposure to 14 currencies in 23 developed market countries with 5 sectors, 1500+ components and coverage of 56% of global GDP and 50% of world market cap, the fund house said. NS NFO The scheme is opening from today and will close for subscription on October 1.

The fund is being launched in association with Credit Suisse Asset Management. It will invest in a Credit Suisse Index Fund and/or ETF that will track the performance of the MSCI World Index as a whole. The MSCI World Index is a popular global index that captures large- and mid-cap representation of 23 developed countries.

“This fund provides investors with a gateway to the developed world. This single fund has exposure across countries, currencies, regions, styles and sizes at a decent price coupled with a highly efficient structure from the perspective of global taxation and execution. Has the potential to offer the best possible diversification. Since the Indian market has a low correlation with the developed markets, this fund can provide a healthy portfolio diversification.” Navneet Munot MD & CEO HDFC AMC.

According to the press release, the fund offers its investors an opportunity to geo-diversify their portfolio across economies and markets, hedge against rupee depreciation, benefit from global growth opportunities and gain access to exclusive global themes. The MSCI World Index captures 40 of the top 50 most innovative companies and also participates in rapidly growing sectors such as information technology, financial and health care. The MSCI World Index has less volatility than the NIFTY 50 (TRI USD) and has a lower correlation with the NIFTY 50 TRI across multiple time frames, providing meaningful diversification to its investors.