HDFC Manufacturing Fund Direct-Growth NFO : Review & Analysis

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.

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 

Peers of HDFC Manufacturing Fund Direct-Growth - NFO

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

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.