Image Source : FILE PHOTO HDFC Mutual Fund launches India’s first defence fund | DETAILS
HDFC Defence Fund: HDFC Asset Management Company Ltd announced the country’s first mutual fund focussed on the defence sector on Tuesday. The launch of the HDFC Defence Fund will provide investors with an opportunity to participate in the growth potential of the defence space.
HDFC AMC in a statement informed that the new fund offering (NFO) of HDFC Defence Fund, an open-ended equity scheme, would open on May 19 and close on June 2.
The fund will invest at least 80 per cent of its net assets in defence and allied sector companies. Defence and allied sector stocks include stocks forming part of aerospace and defence; explosives, shipbuilding and allied services.
“In a multipolar world, defence expenditure globally is set to increase as countries enhance their defence capabilities. Self-reliance in defence led by strong R&D (Research and Development) focus and enhancement of manufacturing capabilities creates an opportunity for Indian companies to serve the domestic market as well as tap the large export potential. This could offer a multi-decadal investment opportunity,” said Abhishek Poddar – Fund Manager – Equity and Senior Equity Analyst, Dealing and Investments at HDFC AMC.
The asset management firm further informed that the scheme will invest in companies with good quality management with demonstrated track records and aims to achieve diversification by following a multi-cap strategy. The fund’s focus would be on growth and quality at reasonable valuations by investing across large, mid and small-cap stocks.
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