NFO Alert: HDFC Mutual Fund launches HDFC Transportation and Logistics Fund; all you need to know

HDFC Mutual Fund announced the launch of the HDFC Transportation and Logistics Fund. The scheme opened for public subscription on July 28, 2023, and will close on August 11, 2023.

Abeer Ray, MintGenie Team
First Published28 Jul 2023, 11:49 AM IST
HDFC Mutual Fund launches HDFC Transportation and Logistics Fund
HDFC Mutual Fund launches HDFC Transportation and Logistics Fund(flomicgroup.com)

HDFC Mutual Fund announced the launch of the HDFC Transportation and Logistics Fund, an open-ended equity fund scheme investing in transportation and logistics-themed companies.

The scheme opened for public subscription on July 28, 2023, and will close on August 11, 2023. The scheme re-opens for continuous sale and repurchase within five business days from the date of allotment.

Q. What kind of mutual fund scheme is this?

This is an open-ended equity fund scheme investing in transportation and logistics-themed companies.

Q. What is the main objective of investing in this fund?

The scheme seeks to provide long-term capital appreciation by investing predominantly in equity and equity-related securities under the Transportation and Logistics theme There is no assurance that the investment objective of the Scheme will be realized.

Q. How may one invest in this scheme?

Investors can invest under the scheme with a minimum investment of Rs 100 per plan/option and in multiples of Re 1. There is no upper limit for investment.

Under normal circumstances, the asset allocation of the scheme will be as follows:

Instruments

Indicative allocations (% of total assets)

Risk Profile

Minimum

Minimum

Equity and Equity related instruments of Transportation and Logistics themed companies

80%

100%

Very High

Equity and Equity related instruments of companies other than above

0%

20%

Very High

Units of REITs and InvITs

0%

10%

Medium to High

Debt securities, money market instruments and Fixed Income Derivatives

0%

20%

Low to Medium

Units of Mutual Fund

0%

5%

Low to High

Q. Are there similar mutual funds in the market?

To date, many asset management companies (AMCs) have launched such transportation and logistics-themed funds, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. Some of these include:

Mutual Fund House

Name of the Scheme

ICICI Prudential Mutual Fund

ICICI Prudential Transportation and Logistics Fund

UTI Mutual Fund

UTI Transportation and Logistics Fund

Bandhan Mutual Fund

Bandhan Transportation and Logistics Fund

Q. How will the scheme benchmark its performance?

The performance of the scheme will be benchmarked against theNifty 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 Trustee reserves the right to change the benchmark for evaluation of the performance of the scheme from time to time in conformity with the investment objectives and appropriateness of the benchmark subject to SEBI (MF) Regulations, and other prevailing guidelines, if any by suitable notification to the investors to this effect.

Q. Are there any entry or exit loads to this scheme?

This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” would be calculated as under:

-In respect of each purchase/switch-in of units, an Exit load of one per cent is payable if units are redeemed/switched out within one year from the date of allotment.

- No Exit Load is payable if units are redeemed/switched out after a year from the date of allotment.

Q. Who will manage this scheme?

Priya Ranjan andDhruv Muchhal are the designated fund managers of this scheme.

Q. Does the fund contain any inherent risk?

The scheme involves “Very High Risk” as per the details mentioned in theScheme Information Document and is best suited to investors willing to understand that their principal will be subject to very high risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.

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First Published:28 Jul 2023, 11:49 AM IST
HomeMoneyPersonal FinanceNFO Alert: HDFC Mutual Fund launches HDFC Transportation and Logistics Fund; all you need to know

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