Publish Date:
HDFC Mutual Fund has launched HDFC Manufacturing Fund.
HDFC Manufacturing Fund is an open-ended actively managed equity scheme. It is a thematic fund that will primarily invest in companies engaged in manufacturing activities.
The fund aims to generate long-term capital appreciation by investing at least 80% of its net assets in equity and equity-related instruments of such companies. The fund may also invest up to 20% of the assets in companies other than those engaged in manufacturing activity. It may also invest some portion in REITs & InvITs, debt and money market instruments, and units of mutual fund.
HDFC Manufacturing Fund will follow a bottom-up approach to stock-picking and choose companies that:
- Are engaged in manufacturing activity
- May benefit from Government's Make in India initiatives
- Are positioned to substitute India's imports by manufacturing locally
- Export goods manufactured in India and have the potential to increase employment in India
In terms of risk-o-meter, HDFC Manufacturing Fund being a thematic fund carries higher risks versus diversified equity mutual funds on account of concentration and theme specific risks.
[Read: Manufacturing Mutual Funds Shine. Are they Worthy of Your Investment Portfolio?]
HDFC Manufacturing Fund is benchmarked against the Nifty India Manufacturing Index - TRI. The underlying benchmark index comprises stocks forming part of the combined universe of Nifty 100, Nifty Midcap 150, and Nifty Smallcap 50 index. In the other words, the fund has the flexibility to invest across market caps.
The following stocks and sectors are currently the top constituents of the Nifty India Manufacturing Index - TRI.
Data as of April 30, 2024
(Source: niftyindices.com)
HDFC Manufacturing Fund will be managed by Mr Rakesh Sethia. Mr Sethia is a CFA, FRM, MBA, and BBM by qualification. He has over 17 years of experience in equity research.
HDFC Manufacturing Fund is open for subscription from April 26, 2024 to May 10, 2024. The fund will reopen for continuous sale and repurchase within 5 days from the date of allotment.
The fund offers Direct Plan and Regular Plan. Under each plan the fund offers Growth, Income Distribution cum Capital Withdrawal - Payout, and Reinvestment of IDCW options.
The minimum subscription amount is Rs 100 and any amount thereafter.
Watch this video to find out what are Manufacturing Mutual Funds and whether they are worth investing in: