HDFC Banking and Financial Services Fund NFO – Investment Objective, Features, R

HDFC Banking and Financial Services Fund NFO

HDFC Mutual Fund has announced the launch of the HDFC Banking and Financial Services Fund. The fund is an open-ended scheme that will be investing in the banking and financial services sector.

The New Fund Offer (NFO) starts on 11th June 2021 and will end on 25th June 2021.

Investment Objective 

The scheme’s investment objective is to provide long-term capital growth by investing in equity and equity-related securities of the banking and financial services sector.

Features

• The Fund will be investing at least 80% of its assets in equity and equity of the banking and financial services sector.
• It is a sectoral equity fund that will have a focus on only one sector i.e. Banking and Financial Services sector.
• The fund may also take some exposure to debt or money market instruments and units of REITs and InvITs.

Sub-segments of Banking and Financial Services Sector

1. Banks
2. Non-Banking Financial Companies
3. Insurance Companies
4. Asset Management Companies or Mutual Fund Houses
5. Stock Exchanges
6. Fintech or Financial Technology Companies
7. Depository
8. Credit Card Companies
9. Credit Rating Agencies
10. Broking Houses

Why invest in HDFC Banking and Financial Services Fund?

1. Multicap Strategy: The banking and financial services sector is very diversified and the fund offers exposure to the whole sector and invests across market capitalization in large, mid, and small-cap stocks.
2. Focus leaders: The fund will focus on the leaders or the stocks who are gaining market share because of their superior execution, adoption of technology, etc.
3. Focus on diversification and low correlation: The fund will offer diversification across the sector and will invest in all the sub-segments of the sector.
4. Secular growth or Re-rating: The fund will invest in stocks that can witness the secular growth or have the potential of being re-rated.
5. IPOs or New listing: There are many companies in the sector that will get listed in the coming months or years. Fund will also focus on those new listing opportunities in the sector.

Who Should Invest?

This scheme is suitable for investors who are -

• Interested in long-term capital growth.
• Interested in investments in the banking and financial services sector.
• Recommended for investors with an investment horizon of 5 years & above.

Asset Allocation Pattern

About the Scheme

SIP Details