Mutual Fund News : HDFC Mutual Fund Launches HDFC Non-Cyclical Consumer Fund

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HDFC Mutual Fund introduces – HDFC Non-Cyclical Consumer Fund

It is an open-ended equity scheme following non-cyclical consumer theme.

Accordingly, the investment objective is to generate long-term capital appreciation by investing predominantly in equity and equity related securities of companies with a focus on non-cyclical consumer theme. There is no assurance that the investment objective of the Scheme will be realized.

Under normal circumstances, HDFC Non-Cyclical Consumer Fund will hold an allocation of 80% to 100% of its assets in Equity and Equity related instruments of Non-Cyclical Consumer companies, 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 Non-Cyclical Consumer Fund will invest in Indian equity and equity related securities with focus on stocks that represent the non-cyclical consumer theme within the basic industries like Consumer Goods, Consumer Services, Telecom, Services, Healthcare, Media, Entertainment, Publication, Textiles sectors and such other industries forming part of the Benchmark Index.

A portion of Scheme will also be invested in IPOs and other primary market offerings that meet the Scheme’s investment criteria. Further, to achieve diversification, the Scheme may also invest up to 20% of the assets in companies other than non-cyclical consumer theme. The Scheme will retain the flexibility to invest in the entire range of debt instruments and money market instruments

HDFC Non-Cyclical Consumer Fund’s performance will be benchmarked against Nifty India Consumption Index.

The scheme will be managed by Mr Amit Sinha and Mr Priya Ranjan for overseas investments.

The NFO opens for subscription on June 23, 2023 and closes on July 07, 2023. The schemes will reopen for continuous sale and repurchase within 5 business days from the date of allotment.

The fund's face value is Rs 10/- per unit. The units will be issued at premium equivalent to the difference between allotment price and the face value of Rs 10/-. The minimum subscription amount is Rs 100/- and in multiples of Re. 1/- thereof.

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