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HDFC Manufacturing Fund Direct-Growth NFO : Review & Analysis
Table of Contents
- HDFC Manufacturing Fund Direct-Growth - NFO Overview
- Fund Overview
- The Objective of the Fund
- Peers of HDFC Manufacturing Fund Direct-Growth - NFO
- Risk Factors in Such Funds
- Past Performance of Manufacturing Fund Direct-Growth
- HDFC Manufacturing Fund NFO - Who can invest
- HDFC Manufacturing Fund NFO - Growth Fund Managers
- Conclusion
Are you looking for a long-term investment in mutual funds but feeling unsure about which one to choose? Well, HDFC Mutual Fund has launched an NFO focusing on the manufacturing sector. You can invest in this fund at an early stage, which could lead to substantial growth over the long term. Keep reading to know all about this exciting NFO opportunity.
HDFC Manufacturing Fund Direct-Growth - NFO Overview
The HDFC Mutual Fund NFO is a recently introduced investment opportunity in the manufacturing industry within the equity segment. With the Indian government's focus on developing its manufacturing sector on a global scale through various initiatives, this fund emerges as a potential investment for long-term growth.
Starting on April 26, 2024, and concluding on May 10, 2024, this fund adopts a "bottom-up" approach to selecting stocks and companies for investment. At least 80% of its net assets are directed towards equity or equity-related instruments of companies actively engaged in manufacturing activities. The fund aims to give investors good returns in the long run.
Fund Overview
The HDFC Manufacturing Fund Direct-Growth-NFO holds an AUM totalling Rs. 6,12,745.54 crores. This fund has a stamp duty of 0.005% (From July 1st 2020) and the benchmark is Nifty India Manufacturing Index. For investors looking to invest, the minimum investment required is an SIP of Rs 100.
|
Start Date |
26 April 2024 |
|
End Date |
10 May 2024 |
|
VRO rating |
- |
|
Expense ratio |
NA |
|
Exit load |
1% is payable if units are redeemed/switched-out within 1 month. |
|
AUM (Fund size) |
Rs. 6,12,745.54 Cr. |
|
Lock-in |
No Lockin |
|
Stamp Duty |
0.005% (From July 1st 2020) |
|
Benchmark Index |
Nifty India Manufacturing Index |
|
Min. investment |
SIP ₹100 |
|
Risk |
Very High |
|
Short-term capital gains (STCG) |
Returns taxed at 15% if you redeem before 1 year |
|
Long-term capital gains (STCG) |
After 1 year, pay a LTCG tax of 10% on returns of ₹1 lakh+ in a financial year |
The Objective of the Fund
The primary goal of this thematic fund is to increase capital by investing primarily in stocks and related securities of companies in the manufacturing sector for long term. However, it's crucial to understand that there's no assurance these investment goals will be achieved.
Asset allocation (% of Net Assets) of the Scheme's portfolio will be as follows
|
Types of Instruments |
Minimum Allocation (% of Net Assets) |
MaximumAllocation (% of Net Assets) |
Risk Profile |
|
Equity and Equity related instruments of companies in engaged in manufacturing theme # |
80 |
100 |
Very High |
|
Equity and Equity related instruments of companies other than above |
0 |
20 |
Very High |
|
Units of REITs and InvITs |
0 |
10 |
Medium to High |
|
Debt securities*, money market instruments and Fixed Income Derivatives |
0 |
20 |
Low to Medium |
|
Units of Mutual Fund@ |
0 |
20 |
Low to High |
Peers of HDFC Manufacturing Fund Direct-Growth - NFO
|
Equity, Sectoral / Thematic Funds |
1Y Return |
3Y Return |
Fund Size (Cr) |
|
ICICI Prudential Manufacturing Fund Direct Growth |
66.29% |
32.21% |
3,373.45 |
|
1 Month Return |
6 Month Return |
Fund Size (Cr) |
|
|
Axis India Manufacturing Fund - Direct Plan |
3.63% |
- |
4,360.55 |
|
Quant Manufacturing Fund Direct Growth |
2.96% |
39.54% |
549.38 |
|
Canara Robeco Manufacturing Fund Direct Growth |
4.05% |
- |
1,123.40 |
Risk Factors in Such Funds
-
It will invest atleast 80% of its net assets in Equity and Equity related instruments.
-
It involves high degree of risk.
-
Scheme's performance may differ from the benchmark index.
-
NAV of the Scheme, to the extent invested in Debt and Money Market instruments, will be affected by changes in the general level of interest rates.
-
Securities/Instruments of REITs and InvITs are volatile and prone to price fluctuations on a daily basis.
Past Performance of Manufacturing Fund Direct-Growth
|
Equity, Sectoral / Thematic Funds |
NAV (Rs) |
Returns since inception |
Return/Risk |
|
ICICI Prudential Manufacturing Fund Direct Growth |
33.74 |
24.31% |
Produces 20% more returns, for each unit of risk. |
|
Axis India Manufacturing Fund - Direct Plan |
12.29 |
21.32% |
Performing poorly |
|
Quant Manufacturing Fund Direct Growth |
15.15 |
51.32 |
Performing poorly |
|
Canara Robeco Manufacturing Fund Direct Growth |
10.08 |
9.53% |
Performing poorly |
HDFC Manufacturing Fund NFO - Who can invest
This fund is good for people who like to invest for a long time and aren't afraid of taking risks. It primarily allocates investments to equity and equity-related instruments of enterprises engaged in manufacturing activities, exposing investors to a high-risk profile.
HDFC Manufacturing Fund NFO - Growth Fund Managers
-
Mr. Rakesh Sethia
-
Mr. Dhruv Muchhal
Conclusion
The HDFC Manufacturing Fund Direct-Growth – NFO presents a promising opportunity for investors seeking optimal long-term gains. With a focus on the manufacturing industry within the equity segment, this fund offers diversification and flexibility to your portfolio. However, it's essential to note that the fund carries high risk. Therefore, investors should carefully assess their risk tolerance and investment objectives before deciding to invest in the NFO.
Disclaimer: This NFO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.
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Frequently Asked Questions
The starting date of HDFC Manufacturing Fund Direct-Growth – NFO is 26 April 2024.
The end date of HDFC Manufacturing Fund Direct-Growth – NFO is 10 May 2024.
The fund manager of HDFC Manufacturing Fund Direct-Growth – NFO is Mr. Rakesh Sethia and Mr. Dhruv Muchhal.
The minimum investment for HDFC Manufacturing Fund Direct-Growth – NFO is Rs. 100.
If you redeem the fund before one year, a 15% tax is applied to returns. After one year, a long-term capital gains LTCG tax of 10% is deducted on returns exceeding Rs. 1 lakh in a financial year.
