Introducing HDFC Manufacturing Fund
Are you familiar with the phrase, “Raise Your Growth with HDFC Manufacturing Fund“? If yes, let’s explore and learn the thematic scheme from every corner of perspectives. The scheme was started by well-known HDFC Mutual Funds.
The scheme invests in the companies that contribute to the nation’s growth. The manufacturing sector is a fast-paced developing sector. Moreover, the scheme aims to generate superior earnings by investing in such firms. These firms are engaged in activities of the manufacturing sector. For example, the activities are Processing, Machinery, Fabrication, and others.
In addition, 60% of India’s exports are done through the manufacturing sector. These exports improve the trading relations of the nation with other countries. Moreover, the continuous development of the sector is beneficial for many workers. It creates jobs for them and saves costs. Hence, in this way, it raises the nation’s economic growth.
Furthermore, the scheme has been running since May 15, 2024. The scheme invests in all-sized market cap firms. The market cap distribution of the scheme is in large cap with 59.45%, mid cap with 22.19%, and small cap with a remaining 16.3%.
Here is not the end, the scheme has outperformed the benchmark NIFTY India Manufacturing TRI. Additionally, the scheme has been managing total assets of Rs. 12,772.88 Crores since its launch. Furthermore, the investment allocation for the scheme is under the management of Mr. Rakesh Sethia.
The scheme has distributed its allocations in diverse sectors. The sector allocation is of Automobiles, Healthcare, Industries, and others. The top holdings of the scheme are Mahindra & Mahindra Tech, Cipla, Bosh, Tata Motors, and others.
With the brief about the scheme in mind, let’s explore the features the scheme holds.
What are the Key Features of the HDFC Manufacturing Fund?
In this section, you’ll get familiar with the features of the scheme. Now, let’s begin to learn them.
- Long-term Investment
The scheme gives you benefits with the consistency of good earnings by investing for a long time. The scheme follows long-term investment to give you higher earnings. It takes investment for at least 4-7 years or longer.
- Strong-Growth Potential
The manufacturing sector is developing and believes in making the nation’s economy strong. This strong belief makes the scheme ready to perform well in the challenging market. As a result, you have a high chance of staying in the market. Moreover, makes your caliber strong enough to balance your finances.
- Variation in Investments
The HDFC Manufacturing Fund invests in firms of all market caps. These investments give exposure to explore all these firms. Furthermore, it gives you a chance to experience benefits from all these types of firms. Also, it gives your portfolio a different look with a variety of investments in the sector.
- Political Support
The manufacturing sector has the support of the government parties. The government makes policies to improve the sustainable development of the nation. Hence, this continued support of the development process improves the scheme’s productivity. Consequently, it reflects in your earnings.
- Fund Management
The scheme has an experienced team with knowledge of market swings. Moreover, they design plans that suit your requirements based on the market conditions. These plans are designed with a motto to reach your desired goals.
- Investment Methods
The scheme holds distinct investment methods for you. These methods are lump sum and systematic investment plans. The lump sum benefits with a huge amount of investment at one time. On the other side, a systematic investment plan takes a small amount of investment.
Excited to know more about the scheme, let’s explore the other side of it.
How Risky is the HDFC Manufacturing Fund?
The other side of the scheme holds the risks that you should know while investing in it.
- Market Fluctuations
The market is volatile. It has inherent ups and downs. To illustrate this point, in case the market is not doing well it shows an impact on the scheme. Hence, this impact is also reflected in your net earnings.
- Sector-Specific Risk
The scheme invests only in the manufacturing sector. Hence, any sudden change or downturn in the sector affects the performance of the scheme. As a result, the degradation in the scheme performance makes its return rate low. Thus in return, you get low net earnings.
- Political Risk
Although the government supports the sector, any change in government policies. Also, the change of government party itself shows fluctuations in the scheme. Thus, these political reasons impact your net earnings too.
- Concentration Risk
The HDFC Manufacturing Fund has investments in a particular sector only. Although it invests in all market cap firms of the sector. The scheme gives a variety of investments to your portfolio within the sector.
- Expense Ratio
The expense ratio is concerned part of investing. The operational and market research charges a high cost. In addition, the frequent liquidity makes the scheme’s expense ratio quite costly. As a result, these costs are reduced from your net earnings and lower its value.
Now to expand your knowledge of the scheme. Let’s check the fitness criteria for investing in the scheme.
Who is Appropriate for the HDFC Manufacturing Fund?
In this section, you’ll get to know about the fitness criteria for the scheme. It helps you while investing in the scheme.
· Growth Seeker
The scheme invests in the companies of the growing manufacturing sector. If you wish to grow parallelly with the nation’s development and new trends. Then the scheme benefits you with long-term growth and consistent earnings.
· Diversification Seeker
The scheme invests in different-sized market cap firms in the sector. If have an interest in exploring this developing sector. Then this scheme gives you a chance to experience the benefits of these firms. Moreover, it gives variation in your investment portfolio.
· Regular Investors
This is an advantage that the scheme has flexibility in investing methods. If you are new to the journey and don’t want to take much risk. Moreover, if you have an average income source. The scheme has a regular investing method to make it convenient for you.
· High-Risk Tolerance
The scheme has many unexpected risks. If you understand enough about the market swings and are ready to take a chance with your investments. Then the scheme will benefit you with good earnings.
Let’s bind up the discussion of the scheme and take a quick recap about it.
Final Note
To summarize the scheme, it is an opportunity that makes your income rise and your future strong. It provides different facilities and also holds some risks. If you are ready to invest in the nation’s growth story but the fear of risks frightens you.
Then start your growth journey with SIP investments that reduce your market risks. This investment is adjustable and affordable. Moreover, it gives you the flexibility to invest at regular intervals. These intervals are monthly, quarterly, and yearly. So, let your investment grow steadily.
