Publish Date:
HDFC Mutual Fund has launched an open-ended equity scheme – HDFC Multi Cap Fund.
The scheme will predominantly invest across large cap, mid cap & small cap stocks.
The investment objective of HDFC Multi Cap Fund is to seek to generate long term capital appreciation by investing in equity and equity related securities of large cap, mid cap and small cap companies. There is no assurance that the investment objective of the Scheme will be realized.
Under normal circumstances, 75% to 100% of the funds portfolio will be invested in Equity & Equity related instruments of large, mid and small cap companies. The scheme will invest a minimum 25% and maximum 50% of total assets each in Large, Mid and Small Cap stocks.
It can also invest upto 25% of its assets in Debt Securities and Money Market Instruments, and Fixed Income Derivatives. It may also invest 0% to 10% of its net assets in Units issued by REITs and InVITs, and upto 20% in Units of Mutual Fund.
The investment strategy of HDFC Multi Cap Fund as mentioned in the Scheme Information Document (SID) is as follows:
The investment objective of the HDFC Multi Cap Fund is to generate long term capital appreciation by investing in equity and equity related securities of large cap, mid cap and small cap companies. The Scheme will maintain a minimum exposure of 25% of its total assets in each market cap category viz. Large cap, Mid cap & Small cap. The Scheme may also invest upto 25% of its total assets in debt and money market securities.
HDFC Multi Cap Fund will remain diversified across key sectors and economic variables. The Scheme may also invest in the hybrid securities viz. units of REITs and InvITs for diversification and subject to necessary stipulations by SEBI from time to time. Subject to the Regulations and the applicable guidelines, the Scheme may engage in Stock Lending activities. Investment in debt securities will be guided by credit quality, liq
uidity, interest rates and their outlook. The Scheme may also invest in the schemes of Mutual Funds in terms of the prevailing SEBI (MF) Regulations.
HDFC Multi Cap Fund’s portfolio shall comprise allocation to large cap stocks between 25% and 50% of total assets. This flexibility of investing in large-cap stocks shall aid in managing volatility and also aid reasonable liquidity. Within its investment universe, the Scheme aims to maintain a well-diversified equity portfolio comprising stocks across various sectors of the economy. This shall aid in managing concentration risk and sector specific risks
Any investments in debt securities would be undertaken after assessing the associated credit risk, interest rate risk and liquidity risk.
HDFC Multi Cap Fund’s performance will be benchmarked against Nifty 500 Multicap 50:25:25 TRI (Total Return Index).
HDFC Multi Cap Fund will be managed by Mr Gopal Agrawal (Equity), and Mr Sankalp Baid (Overseas Investments).
The NFO opens for subscription on November 23, 2021 and closes on December 07, 2021. The scheme will re-open for continuous Sale and Repurchase within 5 Business Days from the date of allotment of units under NFO.
The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000 and any amount thereafter.
The fund offers Regular Plan and Direct Plan having Growth and Income Distribution cum Capital Withdrawal (IDCW) (Payout and Reinvestment).