HDFC Mutual Fund has launched HDFC Manufacturing Fund. The fund will be an open-ended equity scheme aiming to unlock the potential of India’s manufacturing sector by investing predominantly in equity and equity-related securities of companies engaged in manufacturing activities.
Agencies
2/8
NFO Period
The new fund offer or the NFO of the scheme is open for subscription and will close on May 10.
iStock
3/8
Minimum application amount
The minimum application amount for purchase/switches is Rs 100 and any amount thereafter. The minimum application amount for daily, weekly and monthly SIP is Rs 100 with a minimum of six instalments.
Getty Images
4/8
Benchmark and fund manager
The scheme will be benchmarked against the NIFTY India Manufacturing Index. The scheme will be managed by Rakesh Sethi and Dhruv Muchhal (for overseas investments).
iStock
5/8
Investment Objective
The fund’s investment objective is to provide long-term capital appreciation by identifying companies poised to benefit from India’s manufacturing resurgence.
iStock
6/8
Allocation of assets
The scheme will invest 80-100% in equity and equity-related instruments of companies engaged in manufacturing theme, 0-20% in equity and equity-related instruments of companies other than the ones engaged in manufacturing theme, 0-10% in units of REITs and InviTs, 0-20% in debt securities, money market instruments and fixed income derivatives, and 0-20% in units of mutual fund.
iStock
7/8
Investment strategy
The Scheme will follow an active investment strategy. The Scheme will follow a bottom-up approach to stock-picking and choose companies: that are engaged in manufacturing activity, that may benefit from the Government’s Make in India initiatives, that are positioned to substitute India’s imports by manufacturing locally, that export goods manufactured in India and have the potential to increase employment in India.
iStock
8/8
Suitable for?
The fund will be suitable for investors who are seeking to generate long-term capital appreciation and want to invest predominantly in equity and equity-related securities of companies engaged in manufacturing.
