HDFC Mutual Fund said that the time restrict of the New Fund Offering (NFO) of its first defence sector fund in India, the HDFC Defence Fund (HDF) has been shifted to an earlier date from June 2 to May 30, SMC Global Securities Ltd. said in its weekly substitute.
When was HDFC Defence Fund NFO launched?
The NFO was launched on May 19. Via the NFO, HDFC targets to take a place a minimal of 80 % of the corpus in shares of defence and allied sector corporations.
HDFC Defence Fund NFO: Key points to know
HDFC Defence Fund is an open-ended equity scheme investing in Defence & allied sector corporations. The scheme will make investments a minimum of 80% of its Net Assets in Defence & allied sector Companies. Defence & allied sector shares embrace: (i) shares forming part of positive eligible ‘basic industries’ based on AMFI enterprise classification along with aerospace and defence, explosives, shipbuilding and allied suppliers, as amended now and again; or (ii) Stocks from one other defence and allied sectors as per the benchmark’s requirements; or (iii) shares present on SIDM (Society of Indian Defence Manufacturers) report; and which purchase a minimum of 10 % of earnings from the defence part.
Who is managing HDFC Defence Fund NFO?
The scheme is being managed by Abhishek Poddar and the effectivity of the scheme will in all probability be benchmarked in the direction of Nifty India Defence Index TRI. Further, the funding strategy of the fund focuses on “progress and top quality at inexpensive valuations” and the fund supervisor will spend cash on corporations of all sizes. As on April 28, 2023, the benchmark had 13 constituents. Hindustan Aeronautics and Bharat Electronics each had nearly 20 % allocation. Solar Industries, the third largest stock, has 18 % weight. The universe for HDF comprises 21 shares and 80 % of the scheme money ought to be invested in a couple of of those shares.
The Fund’s focus may very well be on progress and top quality at inexpensive valuations by investing all through large, mid, and small-cap shares.
HDFC MF urged consumers to hunt the recommendation of their financial advice, if uncertain about whether or not or not the defence fund is acceptable for them.
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Updated: 30 May 2023, 10:48 AM IST