HDFC Mutual Fund is launching a new fund offer named ‘HDFC Defence Fund’. This new HDFC Defense Fund is managed by HDFC Asset Management Company (AMC). Investments from India’s first-of-its-kind Defense Fund will go to businesses in the defense and adjacent industries. The NFO will be open for subscription from May 19th, 2023 and will end on June 2nd, 2023.
The Schemes will reopen for continuous sale and repurchase within 5 Business days from the date of Allotment. Subscriptions can be made starting at Rs. 100 and in multiples of Rs. 1/-. Both a Regular Plan and a Direct Plan are available where each plan offers Growth as well as Payout of Income Distribution cum Capital withdrawal Option (IDCW).
About HDFC Mutual Fund
All HDFC Mutual Fund schemes have HDFC Asset Management Company Limited as its Investment Manager. When it comes to mutual funds, this firm is among the most reliable in India. It is also one of the largest and wealthiest mutual fund institutions in the country, with AUM of more than INR 4.4 trillion. Together with Abrdn Investment Management Limited (formerly Standard Life Investments Limited), Housing Finance Development Corporation (HDFC) established the fund house in 1999.
Among the AMC’s stockholders, HDFC owns 52.6% and Abrdn Investment Management Limited controls 16.2%. The HDFC group is an industry leader in a wide variety of financial services, including banking, mortgages, insurance, investment funds, and student loan financing. Over a million investors trust Abrdn Investment Management Limited with their £532 billion in assets. The IPO occurred in 2017–18, and the business was officially listed on August 6, 2018.
HDFC Defence Fund – NFO Detail
| Type of Offer | NFO (New Fund Offer) |
| Fund House | HDFC Mutual Fund |
| Name of the Fund | HDFC Defence Fund |
| Type of Scheme | Open ended |
| Category of Scheme | Sectoral Fund |
| NFO Starts | 19-May-2023 |
| NFO Ends | 02-June-2023 |
| NFO Unit Price | Rs 10 per unit |
| Minimum Investment | Rs. 100 |
| Plans | Regular, Direct |
| Options | Growth, IDCW |
| Entry Load | Not Applicable |
| Exit Load | 1.00% |
| Investment Manager | HDFC Asset Management Company |
| Fund Manager | Mr. Abhishek Poddar |
HDFC Defence Fund NFO – Scheme Objective
The Scheme objective is to invest primarily in equities and equity-related instruments of companies in the Defense and allied sectors with the goal of achieving long-term capital appreciation.
HDFC Defence Fund NFO – Who Can Invest?
This product is suitable for investors who are seeking*:
- Capital appreciation over the long term.
- Investment predominantly in a portfolio of equity and equity related securities of defense and allied sector companies
How Will the Scheme Allocate Its Asset
- 80-100% inEquity and Equity related instruments of Defence & allied sector Companies.
- 0-20% in Equity and Equity related instruments of companies other than above.
- 0-10% in Units issued by REITs and Invits.
- 0-20% in Debt securities*, money market instruments and Fixed Income derivatives.
- 0-5% in Units of Mutual Funds
Where Will the Scheme Invest?
- The Scheme may invest in equities and equity-related instruments.
- The Scheme will retain the flexibility to invest in the entire range of debt instruments and money market instruments including:
- 1) Commercial papers
- 2) Commercial bills, usance bills
- 3) Treasury bills
- 4) Government securities having an unexpired maturity upto one year
- 5) Tri-party Repos on Government securities or treasury bills (TREPS)
- 6) Certificate of deposit
- 7) Permitted securities under a repo/ reverse repo agreement (other than Corporate
- Debt Securities)
- 8) Any other like instruments as may be permitted / approved by RBI / SEBI from time
- to time, subject to necessary regulatory approvals.
- The Scheme may engage in securities lending within the overall framework of ‘Securities Lending Scheme, 1997 specified by SEBI and such other norms as may be specified by SEBI from time to time.
- The Scheme may invest in other schemes managed by the AMC or in the schemes of any other mutual funds, provided it is in conformity with the investment objectives of the Scheme and in terms of the prevailing SEBI (MF) Regulations. As per the SEBI (MF) Regulations, no investment management fees will be charged for such investments and the aggregate inter scheme investment made by all the schemes of HDFC Mutual Fund or in the schemes of other mutual funds shall not exceed 5% of the net asset value of the HDFC Mutual Fund.
- The Scheme may invest in hybrid securities such as units of REITs and InvITs for diversification and subject to necessary stipulations by SEBI from time to time.
HDFC Defence Fund NFO – SID (Scheme Information Document)
Please click here to read the SID (Scheme Information Document) of this upcoming NFO scheme.
How to Invest?
Visit this page on the AMC website for further detail and investment.
Disclaimer: This post is just information about the scheme. It does not give any advice or recommendation. Mutual Fund investments are subject to market risk. Please read the offer document carefully before investing.
