HDFC Asset Management Company Ltd on Tuesday announced the launch of the country's first mutual fund focussed on defence sector, a move that will provide investors an opportunity to participate in growth potential of this space.
The new fund offering (NFO) of HDFC Defence Fund, an open-ended equity scheme, would open on May 19 and close on June 2, HDFC AMC said in a statement.
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 opportunity for Indian companies to serve domestic market as well as tap 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 said that the scheme will invest in companies with good quality management with demonstrated track record 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.
Also Read
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
