HDFC Mutual Fund Introduces HDFC Defence Fund

May 23, 2023

HDFC Mutual Fund has launched – HDFC Defence Fund

It is an open-ended equity scheme investing in Defence & allied sector companies

Accordingly, the investment objective of the scheme is to provide long-term capital appreciation by investing predominantly in equity and equity related securities of Defence & allied sector companies There is no assurance that the investment objective of the Scheme will be realized.

Under normal circumstances, HDFC Defence Fund will hold an allocation of 80% to 100% of its assets in equity and equity related instruments of Defence & allied sector Companies, 0% to 20% in equity and equity related instruments of companies other than above, 0% to 10% in Units of REITs and InvITs, 0% to 20% in Debt securities, money market instruments and Fixed Income Derivatives and 0% to 5% in Units of Mutual Fund.

As per the Scheme Information Document, HDFC Defence Fund will invest in Indian equity and equity related securities with focus on stocks from Defence and allied sectors.

The Scheme can invest in companies across market capitalization and will use bottom up approach to identify strong companies. A portion of scheme will also be invested in IPOs and other primary market offerings that meet the Fund’s investment criteria. Further, to achieve diversification, the Scheme may also invest up to 20% of the assets in companies other than Defence and allied sector companies. Investment in debt securities will be guided by credit quality, liquidity, interest rates and their outlook.

HDFC Defence Fund’s performance will be benchmarked against Nifty India Defence Index TRI

The scheme will be managed by Mr Abhishek Poddar and Mr Priya Ranjan.

The NFO opens for subscription on May 19, 2023 and closes on June 02, 2023. The schemes will reopen for continuous sale and repurchase within five Business Days from the date of allotment.

The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 100/- and in multiples of any amount thereafter. 

The scheme offers Regular Plan and Direct Plan each plan offers Growth and Income Distribution cum capital withdrawal option (IDCW) option.