Mutual Fund News : HDFC Mutual Fund Launches HDFC Transportation and Logistics Fund

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HDFC Mutual Fund introduces – HDFC Transportation and Logistics Fund

It is an open-ended equity scheme investing in Transportation and Logistics themed companies

Accordingly, the investment objective is to provide long-term capital appreciation by investing predominantly in equity and equity related securities under Transportation and Logistics theme There is no assurance that the investment objective of the Scheme will be realized.

Under normal circumstances, HDFC Transportation and Logistics Fund will hold an allocation of 80% to 100% of its assets in Equity and Equity related instruments of Transportation and Logistics themed 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 Transportation and Logistics Fund will invest in Indian equity and equity related securities of companies in Transportation and Logistics theme. This includes following basic industries as per common framework of industry classification of companies notified by stock exchanges (NSE and BSE): 2/3 Wheelers, Abrasives, Airline, Auto Components and Equipments, Batteries-Automobile, Bearings, Castings and Forgings, Commercial Vehicles, Fastener, Logistics Solution Provider, Passenger Cars & Utility Vehicles, Port & Port services, Railway Wagons, Railways, Ship Building & Allied Services, Shipping, Toll bridge operator, Tour, Travel Related Services, Tractors, Trading – Automobiles, Tyres & Rubber Products, E-Commerce companies which are into delivery are eligible to be included.

The Scheme endeavours to invest in companies across market capitalization and will use bottom up approach to identify strong companies. The Scheme will retain the flexibility to invest in the entire range of debt instruments and money market instruments.

HDFC Transportation and Logistics Fund’s performance will be benchmarked against Nifty Transportation & Logistics Index

The scheme will be managed by Mr Priya Ranjan and Mr Dhruv Muchhal

The NFO opens for subscription on July 28, 2023 and closes on August 11, 2023. The schemes will reopen for continuous sale and repurchase within five business days from the date of allotment.

The fund's face value is Rs 10/- per unit. 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.