Mutual Fund News : HDFC Mutual Fund Launches HDFC MNC Fund

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HDFC Mutual Fund has launched – HDFC MNC Fund

It is an open-ended equity scheme following multinational company (MNC) theme.

Accordingly, the investment objective is to provide long-term capital appreciation by investing predominantly in equity and equity related instruments of multinational companies (MNCs). There is no assurance that the investment objective of the Scheme will be realized.

Under normal circumstances, HDFC MNC Fund will hold an allocation of 80% to 100% of its assets in Equity and Equity related instruments of Multi-National Companies (MNCs), 0% to 20% in Equity and Equity related instruments of companies other than above, 0% to 10% in Units of REITs and INVITs, 0% to 20% in Debt securities, money market instruments and Fixed Income Derivatives and 0% to 20% in Units of Mutual Fund.

As per the Scheme Information Document, HDFC MNC Fund will follow a bottom-up approach to stock-picking and primarily choose companies across sectors and market capitalization which falls under the criteria of multinational companies (MNCs).

MNCs shall mean – Companies having foreign promoter shareholding over 50%, or Companies that form part of Nifty MNC index. The portfolio for identification of MNCs shall be reviewed on a half yearly frequency. The fund manager will also consider business fundamentals, industry outlook, absolute as well as relative valuations, growth outlook and corporate governance of MNC companies. Further, to achieve diversification, the Scheme may also invest up to 20% of the assets in companies other than MNCs. The Scheme may invest in other schemes managed by the AMC or in the schemes of any other mutual funds in terms of the prevailing SEBI (MF) Regulations.

HDFC MNC Fund’s performance will be benchmarked against NIFTY MNC TRI

The scheme will be managed by Mr Rahul Baijal and Mr Priya Ranjan (for overseas investments).

The NFO opens for subscription on February 17, 2023 and closes on March 03, 2023. The schemes will reopen for continuous sale and repurchase on Within 5 Business Days 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 in multiples of any amount thereafter. 

The scheme offers Regular Plan and Direct Plan each plan offers Growth and Income Distribution cum capital withdrawal option (IDCW) option.