HDFC Mutual Fund has launched a new fund offering named “HDFC Transportation and Logistics Fund”, an open-ended equity fund scheme investing in transportation and logistics-themed companies. The performance of the scheme will be benchmarked against the Nifty Transportation & Logistics Index.As the scheme proposes to invest predominantly in Transportation and Logistics companies, the benchmark would be appropriate to compare the performance of the scheme.
The NFO will be open for subscription from July 28th, and will end on August 11th, 2023. Scheme will re-open for continuous Sale and Repurchase within 5 Business Days from the date of allotment of units under NFO. Subscriptions can be made starting at Rs. 100 and any amount thereafter. Both a Regular Plan and a Direct Plan are available.
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 Transportation and Logistics Fund – NFO Detail
| Type of Offer | NFO (New Fund Offer) |
| Fund House | HDFC Mutual Fund |
| Name of the Fund | HDFC Transportation and Logistics Fund |
| Type of Scheme | Open-ended |
| Category of Scheme | Equity Scheme – Sectoral/ Thematic |
| NFO Starts | 28-July-2023 |
| NFO Ends | 11-August-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% |
| Investment Manager | HDFC Asset Management Company |
| Fund Manager | Ms. Priya Ranjan and Mr. Dhruv Muchhal |
HDFC Transportation and Logistics Fund NFO – Scheme Objective
The investment objective of the scheme is to generate long-term capital appreciation by investing predominantly in equity and equity related securities of companies with a focus on non-cyclical consumer theme.
HDFC Transportation and Logistics Fund NFO – Who Can Invest?
This product is suitable for investors who are seeking*:
- Capital appreciation over the long term.
- Investment predominantly in equity & equity related instruments of companies under Transportation and Logistics theme.
How Will the Scheme Allocate Its Asset
- 80-100% in Equity & Equity related instruments of Transportation and Logistics themed companies.
- 0-20% in Equity and Equity related instruments of companies other than above.
- 0-20% in Debt securities*, money market instruments and Fixed Income Derivatives.
- 0-20% in Units of Mutual Funds.
- 0-10% in Units issued by REITs and InvITs.
Where Will the Scheme Invest?
The Scheme may invest its funds in the following securities:
- The scheme shall invest into equities and equities related instruments as per limit specified in the asset allocations subject to permissible limits laid under SEBI (MF) regulations.
- The Scheme will retain the flexibility to invest in the entire range of debt instruments and money market instruments. These instruments are more specifically Debt instruments (in the form of non-convertible debentures, bonds, secured premium notes, zero interest bonds, deep discount bonds, floating rate bond / notes and any other domestic fixed income securities).
- Money Market Instruments include:
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 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.
- 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 Transportation and Logistics Fund NFO – SID (Scheme Information Document)
Please click here to read the SID (Scheme Information Document) of this 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.
