HDFC Manufacturing NFO Allotment Date, Risks, NAV & more

In this article, we are going to be sharing all the details about the upcoming HDFC Manufacturing New Fund Offer, its allotment date, opening & closing date, investment needed and more

by Vrushali.S Updated: 02 May, 2024, 09:39 IST
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NFO Alert! HDFC has launched an all-new NFO Offer for its HDFC Manufacturing Fund. The fund opening date started from 26th April onwards and the new HDFC NFO fund will be closing on May 10, 2024. Moreover, the benchmark for the fund is going to be the Nifty India Manufacturing Index which has given returns of about 52% since it started (8092 points in the year 2022 to 12334 points in the year 2024). In this article, we are going to be sharing all the details about the upcoming HDFC Manufacturing New Fund Offer, its allotment date, opening & closing date, investment needed and more

HDFC Manufacturing New Fund Offer | Allotment Date & All Details


HDFC Manufacturing Fund NFO: What is it about?

The HDFC Manufacturing Fund is an upcoming NFO (New Fund Offer) by HDFC Asset Management Company. In a discussion about the fund, Mr. Rakesh Sethi, the fund manager of HDFC Manufacturing Fund said, “80% of the portfolio would be invested in stocks represented in a much diverse manner exposed to the theme of manufacturing.”

Speaking about the stock selection strategy, he mentioned “The stock selection process is going to be the bottom-up basis. It’s not like we are deciding on a top-down basis look these are the sectors that are growing. It's the other way round because we have a very strong research team.”

What is a bottom-up approach in stock selection?

It’s an approach of selecting stocks based on their micro-level performance (company’s individual performance). On the other hand, a top-down approach is based on the macro-level (sector performance, country’s economy, etc)


How Big is the Manufacturing Companies Sector in India?


Manufacturing Universe (Mcap >1000cr)

Number of companies

Market Cap (Rs lac cr)

%

691

154.34

100%

By Sector

Capital Goods

12

25.02

16%

Oil, Gas & Consumable Fuels


Automobile and Auto Components

72

24.19

16%

Healthcare

77

18.48

12%

Consumer Durables

72

13.45

9%

Fast Moving Consumer Goods*

63

12.62

8%

Metals & Mining

27

11.88

8%

Chemicals

95

10.71

7%

Construction Materials

28

8.82

6%

Textiles

35

2.25

1%

Others

20

1.02

0%

By Market cap classification




Large Cap

43

85.55

55%

Mid Cap

76

33.42

22%

Small Cap

572

35.38

23%

Data Source: HDFC Mutual Fund, 2024

The HDFC Manufacturing Fund manager, Mr. Rakesh Sethia said that the company may also invest in companies with less than 1000Cr market cap depending on other factors. The above table represents how big the manufacturing companies sector in India is only to give investors a general understanding. Notably, he also confirmed that the fund would be investing across all three categories, large-cap, mid-cap and small-cap.

Also Read: Some monopoly stocks, do u own any?

HDFC Manufacturing Fund Details (Allotment Date, Minimum Investment & more

Scheme Name

HDFC Manufacturing Fund

Type of Scheme

An open-ended equity scheme following the manufacturing theme

Investment Objective

Long-term capital appreciation by investing in manufacturing activity-related equity and other securities

Plans & Option

Regular & Direct

Application Amount

Minimum Investment Amount: Rs.100/- and any amount thereafter

Fund Manager

Mr. Rakesh Sethia (12 years experience)

Benchmark

Nifty India Manufacturing Index

Exit Load

Exit on or before 1 month from the date of allotment: 1%

For exit after 1 year from the date of allotment: Nil

NFO Open Date

26th April 2024

NFO Close Date

10th May 2024

Allotment Date/ Launch Date

17th May, 2024


So these were the complete details of the HDFC Manufacturing Fund NFO offer, allotment date, opening date, closing date and minimum investment amount.

If we look at the performance of the benchmark index of the new HDFC NFO, it has only grown in the last few years. Here’s a look at it:

performance of the benchmark index of the new HDFC NFO

The image represents data from the Nifty India Manufacturing Index

As you can see in the above image, the Nifty India Manufacturing Index has given a handsome return of over 50% in the last 2.5 years (8092 points in the year 2022 to 12334 points in the year 2024).

Why does India need to focus on Manufacturing right now? HDFC Manufacturing NFO pros (advantages)

Upon asking the question of why India needs to focus on manufacturing in its “Amrit Kaal,” the fund manager of the HDFC Manufacturing Fund explained the three key factors behind it:

  1. Holistic & inclusive growth: India’s current contribution to global GDP is about 15% which is expected to grow to 20%

  2. Large-scale employment generation: India has about 45% population working on farms which if moved to manufacturing factories can produce a lot of microeconomic stability

  3. Macroeconomic stability: Our growing economy & net consumption can put us at risk of geopolitical instability (high dependence on other countries). However, having a current account balance with the help of manufacturing GDP can help us lower inflation & lower currency depreciation.

These factors do make sense and subsequently, the current business environment in the country also seems favourable. India’s GDP is expected to grow strong at 6.5% in FY25. With GDP growth, the manufacturing sector is also expected to double if not triple its market value. If these factors are leading you to wonder if should you invest in the HDFC Manufacturing NFO fund or not, don’t worry you aren’t the only one having that question.

Whether the HDFC Manufacturing NFO is good to invest in or not is up to you to decide. But we all know before investing, it's always best to consider both the pros and cons. So while we had a look at HDFC Manufacturing NFO pros, let's now have a look at some negatives or risks in HDFC Manufacturing NFO mutual fund.

.

What are the Risks in HDFC Manufacturing NFO Mutual Fund?

Below are some of the disadvantages or negatives of the HDFC Manufacturing NFO fund:

  • Slowdown in domestic and/or global growth could impact revenue and profit growth

  • Pace of reforms and implementation of policy initiatives could slow down or turn adverse

  • Geopolitical developments impacting the availability of raw materials

  • Impact of Automation and AI

  • Risks around meeting ESG requirements


What is HDFC Manufacturing NFO Fund NAV (Net Asset Value)?

The Net Asset Value or NAV of the HDFC New Fund Offer (Manufacturing Fund) is not yet available as the newly launched fund still awaits its allotment date. Keep in mind, as we explained in our article, SBI Energy Opportunities New Fund Offer!, the NAV of a new fund is automatically set to Rs.10 until the fund allotment date. Hence as of April 29th today, the NAV of HDFC Manufacturing NFO (New Fund Offer) is Rs.10 per unit.


On a side note, the SBI Energy Opportunities New Fund Offer garnered a strong response from investors across the nation and collected over 6700 Crores


How to Invest in HDFC Manufacturing New Fund Offer?

To invest in HDFC Manufacturing New Fund Offer, you can either invest directly via the HDFC official website as well as through discount brokers like Zerodha, Upstox, Groww, and Angel One or full-service brokers including Motilal Oswal, ICICI Direct, Kotak Securities, and Sharekhan.

There are both investment plans, Direct & Regular Plans. Investors can choose anyone based on their preference. The minimum investment is Rs.100 for both SIP and One-time payments.

If you are into investing and growing your wealth, you might also want to know how to save your hard-earned money. Check out our Credit Card Offers & Deals page and choose the best rewarding card for yourself.


So this was all about sharing some key details of the HDFC Manufacturing Fund NFO (New Fund Offer). Our take on the pros and cons of the HDFC Manufacturing fund as well as its allotment date, opening date, NAV, and more.


Review Expert
Vrushali is a content & copywriter with 3+ years of exp in writing, researching & ideating content pieces. She writes articles across finance, tech, lifestyle, telecom, online shopping & travel. When not working, you'd find her scribbling designs.
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