- Date : 18/05/2023
- Read: 3 mins
Find all about India’s first defence-oriented mutual fund, the NFO opens for HDFC Defence Fund.
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A fund with a focus on defence companies is bound to generate intrigue and interest among investors
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The HDFC Defence Fund has all the features of the high-risk sectoral/thematic category
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With the defence sector expected to grow, this fund is expected to attract long-term investors
HDFC has floated a New Fund Offer (NFO), titled HDFC Defence Fund. This NFO is available for public subscription between 19 May 2023 and 2 June 2023. This fund will invest primarily in defence and allied sector companies.
Also Read: Popular sectors in which small-cap funds invest does your fund have exposure
HDFC Defence Fund
Here are the basic features and information you need to know about the HDFC Defence Fund -
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It is an open-ended equity scheme that will invest in defence and it is floated by the HDFC asset management company
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The scheme will fall under the thematic/sectoral equity category
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The fund will follow the Nifty India Defence Index TRI (Total Returns Index) as the benchmark
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HDFC suggests an investment period exceeding three years
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There is no entry load. There is an exit load of 1% if the units are redeemed or switched out within a year of allotment
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There is no lock-in period
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The scheme has regular and direct options, which are further divided into growth option and Income Distribution cum Capital Withdrawal (IDCW) option. You can opt for reinvestment or payout in the IDCW option
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The fund manager is Mr Abhishek Poddar. He has 17 years of experience, including 13 in equity research
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The scheme is rated to be of very high risk
Should you invest?
The government is pushing towards self-sufficiency in the defence sector. With a strong focus on increasing manufacturing capabilities and a strong focus on R&D, Indian defence companies can see robust growth. In this multipolar world, most countries are expected to ramp up their defence setup, which can improve the overseas marketability of Indian defence products.
HDFC Defence Fund is the first of its kind to invest entirely in the defence space. The fund aims to invest in companies across market caps.
Also Read: Game-changing news for investors: Mutual fund houses reduce expense ratios on Nifty 50 ETFs
The AMC categorises this scheme as one meant for long-term wealth and income creation. So, you should consider this scheme from a long-term perspective. At the same time, you must consider the risk involved in the investment. It is suited for investors who are looking to have mutual fund exposure to companies engaged in defence and allied sectors.
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.
Source:
-
A fund with a focus on defence companies is bound to generate intrigue and interest among investors
-
The HDFC Defence Fund has all the features of the high-risk sectoral/thematic category
-
With the defence sector expected to grow, this fund is expected to attract long-term investors
HDFC has floated a New Fund Offer (NFO), titled HDFC Defence Fund. This NFO is available for public subscription between 19 May 2023 and 2 June 2023. This fund will invest primarily in defence and allied sector companies.
Also Read: Popular sectors in which small-cap funds invest does your fund have exposure
HDFC Defence Fund
Here are the basic features and information you need to know about the HDFC Defence Fund -
-
It is an open-ended equity scheme that will invest in defence and it is floated by the HDFC asset management company
-
The scheme will fall under the thematic/sectoral equity category
-
The fund will follow the Nifty India Defence Index TRI (Total Returns Index) as the benchmark
-
HDFC suggests an investment period exceeding three years
-
There is no entry load. There is an exit load of 1% if the units are redeemed or switched out within a year of allotment
-
There is no lock-in period
-
The scheme has regular and direct options, which are further divided into growth option and Income Distribution cum Capital Withdrawal (IDCW) option. You can opt for reinvestment or payout in the IDCW option
-
The fund manager is Mr Abhishek Poddar. He has 17 years of experience, including 13 in equity research
-
The scheme is rated to be of very high risk
Should you invest?
The government is pushing towards self-sufficiency in the defence sector. With a strong focus on increasing manufacturing capabilities and a strong focus on R&D, Indian defence companies can see robust growth. In this multipolar world, most countries are expected to ramp up their defence setup, which can improve the overseas marketability of Indian defence products.
HDFC Defence Fund is the first of its kind to invest entirely in the defence space. The fund aims to invest in companies across market caps.
Also Read: Game-changing news for investors: Mutual fund houses reduce expense ratios on Nifty 50 ETFs
The AMC categorises this scheme as one meant for long-term wealth and income creation. So, you should consider this scheme from a long-term perspective. At the same time, you must consider the risk involved in the investment. It is suited for investors who are looking to have mutual fund exposure to companies engaged in defence and allied sectors.
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.
Source:
