HDFC Mutual Fund launches HDFC Manufacturing Fund

HDFC Mutual Fund has announced the launch of HDFC Manufacturing Fund, an open-ended equity scheme aiming to unlock the potential of India’s manufacturing sector by investing predominantly in equity and equity-related securities of companies engaged in manufacturing activities.

The new fund offer or the NFO of the scheme will open for subscription on April 26 and close on May 10.

The fund’s investment objective is to provide long-term capital appreciation by identifying companies poised to benefit from India’s manufacturing resurgence.

The scheme will be managed by Rakesh Sethia.

India’s manufacturing sector stands at the cusp of an Amrit Kaal, a golden era, fuelled by various factors such as growing consumption, investments, and exports, coupled with changing geopolitical dynamics and the government’s push for self-reliance through reforms and incentives. The fund seeks to capitalise on these tailwinds, offering investors an opportunity to participate in the country’s transformation into a global manufacturing powerhouse, according to the press release by the fund house.

The investment strategy of the scheme will emphasise on a core portfolio comprising at least 80% investment in stocks representing diverse sectors under the manufacturing theme. The fund’s flexible approach allows for investments across market capitalization, offering investors an exposure to a wide range of opportunities within the manufacturing landscape, said the press release.“We are delighted to introduce the HDFC Manufacturing Fund to our investors. At HDFC Mutual Fund, we have always endeavoured to be a one-stop solution for varied financial goals and have delivered a wide array of opportunities through our diverse product bouquet. HDFC Manufacturing Fund becomes the latest addition to our diverse set of offerings,” said Navneet Munot, Managing Director and Chief Executive Officer of HDFC Asset Management Company Limited.“Our investment style revolves around rigorous bottom-up research aimed at identifying companies with a compelling long-term growth story. We seek to construct a portfolio that balances established industry leaders with emerging disruptors, ensuring a diverse mix of opportunities within the manufacturing sector,” said Rakesh Sethia.

Investors can expect the fund to target both established industry leaders and emerging disruptors, aiming at a balanced portfolio with the potential for sustained growth.

The fund will be suitable for investors who are seeking to generate long-term capital appreciation, and want investment predominantly in equity and equity-related securities of companies engaged in manufacturing theme.