Canara HSBC NIFTY 500 Multifactor 50 Index Fund is a New Fund Offering (NFO) launching on 1st October 2025, designed to provide investors exposure to a diversified set of 50 stocks selected from the NIFTY 500 universe using a multifactor methodology. This fund aims to capture quality, momentum, and low volatility factors, making it suitable for investors seeking a data-driven equity investment solution at an affordable NAV during its launch window.
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Plans starting from₹1000/month
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Investment Plans
Generate wealthEarn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^On premiums (under 80C) and on maturity (under 10(10D))
What is Canara HSBC NIFTY 500 Multifactor 50 Index Fund?
Canara HSBC NIFTY 500 Multifactor 50 Index Fund is an open-ended scheme tracking the NIFTY 500 Multifactor 50 Index, combining key factors like quality, momentum, and low volatility to identify top-performing stocks. Unlike traditional index funds, it uses a multifactor approach to minimize risk and boost returns, ensuring a robust equity portfolio aligned with evolving market trends.
Highlights of Canara HSBC NIFTY 500 Multifactor 50 Index Fund
Particulars
Details
Benchmark Index
NIFTY 500 Multifactor 50 Index
Benchmark Index Returns
5-Year Returns: 29.8% p.a.
Risk Profile
High
NFO Period
1st October-13th October
Current NAV
₹10
Reasons Why You Should Invest in Canara HSBC NIFTY 500 Multifactor 50 Index Fund
Below are the reasons why you should consider investing in the NFO by Canara HSBC:
Multifactor Strategy: Utilizes quality, momentum, and low volatility criteria to select stocks, delivering a balanced investment approach.
Diversified Exposure: Invests in 50 leading companies from different sectors, maximising return potential and minimising risk.
Proven Index Performance: The underlying index has consistently outperformed traditional sectoral indices due to its dynamic, research-driven selection process.
Affordable Entry: NFO units available at Rs. 10 NAV till 13th October 2025 allow cost-effective participation.
Sectoral Spread: Includes companies from financial services, automobiles, tyre manufacturing, and public sector banks, creating a robust core equity portfolio.
What is the NIFTY 500 Multifactor 50 Index Fund?
The NIFTY 500 Multifactor 50 Index is a unique benchmark that selects 50 stocks from the NIFTY 500 using multifactor screening. Factors employed include quality (measuring sound financial health), momentum (identifying stocks with positive trends), and low volatility (picking stable performers). This approach offers broad sector coverage and adaptability to changing market cycles, making it one of the best-performing indices in the Indian equity landscape.
NIFTY 500 Multifactor 50 Index vs Other Indices
Index Name
5-year return
RSI (20 years)
NIFTY 500 Multifactor 50 Index
29.8% (Highest Returns)
21.1%
NIFTY 50
18.5%
13.7%
NIFTY 100
18.8%
13.8%
NIFTY 200
20.1%
14.4%
NIFTY 500
20.9%
14.8%
Sector Representation of Nifty 500 Multifactor 50 Index Fund
Sector
Percentage
Financial Services
24.96%
Oil, Gas & Consumable Fuels
14.69%
Fast Moving Consumer Goods (FMCG)
13.33%
Healthcare
12.62%
Automobile and Auto Components
12.04%
Chemicals
6.65%
Consumer Durables
3.95%
Services
3.64%
Textiles
2.20%
Metals & Mining
1.79%
Consumer Services
1.52%
Capital Goods
1.37%
Information Technology
1.24%
Companies of the NIFTY 500 Multifactor 50 Index Fund
How to Buy Canara HSBC NIFTY 500 Multifactor 50 Index Fund from Policybazaar?
To buy the Canara HSBC NIFTY 500 Multifactor 50 Index Fund from Policybazaar, follow these steps:
Step 1: Fill in your name and contact number in the form on this page to get started.
Note: Your details are kept confidential and will only be used to customize your benefits.
Step 2: You can also visit the plans just by clicking View Plans below
Step 3: Once logged in, you'll be prompted to fill in your city, age, and annual income in the provided form. This information will be used to check the personalised benefits of the plans.
Step 4: After providing your personal information, you'll be presented with Canara HSBC Investment Plans on a blue and red card. Select the Canara HSBC NIFTY 500 Multifactor 50 Index Fund option that best suits your needs from the following options:
Step 5: In the Canara HSBC NIFTY 500 Multifactor 50 Index Fund, click the "Get Details" tab for more information.
You can also get Free expert consultation; just click on the talk to an expert button.
Step 6: Review plan details carefully. Once satisfied, click on the "Proceed" button and follow the prompts on the screen to move forward with the purchase.
Step 7: You will be prompted to enter essential details and specify the amount you want to invest. Select the preferred mode of payment for your investment.
Step 8: Provide your required KYC (Know Your Customer) details. This step is essential for regulatory compliance.
Step 9: Complete the payment process. Upon successful payment, you will receive confirmation of your purchase.
What are the Benefits of Investing in the Canara HSBC NIFTY 500 Multifactor 50 Index Fund from Policybazaar?
Investing via Policybazaar provides various advantages, including:
Ease of Access: Invest digitally in the Canara HSBC NIFTY 500 Multifactor 50 Index Fund without the hassle of visiting banks or agents.
Plan Comparison: Evaluate various investment options, including the latest funds, to make well-informed choices and secure competitive deals.
Professional Support: Benefit from expert advice to choose the NFO plan that aligns with your financial goals and requirements.
Tax Savings: Enjoy tax benefits under Section 80C and Section 10(10D) of the Income Tax Act by investing through Policybazaar.
FAQs
What are the benefits of investing in Canara HSBC Nifty 500 Multifactor 50 Index fund?
The key benefits include data-driven stock selection, broad sector diversification, reduced risk due to the multifactor approach, and a proven track record of the underlying index's performance.
How often is the index rebalanced?
The NIFTY 500 Multifactor 50 Index is reconstituted and rebalanced semi-annually, ensuring the portfolio remains aligned with prevailing market factors.
How is Canara HSBC NIFTY 500 Multifactor 50 Index Fund different from traditional index funds?
Unlike traditional index funds that may replicate only broad indices like the NIFTY 50, this fund uses a multifactor model for stock selection, aiming to balance returns and risks more efficiently.
What is the typical investment horizon recommended for this fund?
Being an equity index fund, a minimum investment horizon of 5 years or more is recommended to maximize return potential and minimize the impact of short-term market volatility.
˜The insurers/plans mentioned are arranged in order of highest to lowest first year premium (sum of individual single premium and individual non-single premium) offered by Policybazaar’s insurer partners offering life insurance investment plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in *Past 10 Year annualised returns as on 01-10-2025 *All savings plans are provided by the insurer as per the IRDAI approved insurance plan.
Tax benefit is subject to changes in tax laws. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs. **Returns are based on past 10 years' fund performance data (Fund Data Source: Value Research).
Generate wealthEarn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^On premiums (under 80C) and on maturity (under 10(10D))
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