Defence basket is one of the most preferred investment basket of stocks
HDFC Mutual Fund has made an exciting announcement with the launch of the country's first defence fund, the HDFC Defence Fund. This new fund offer (NFO) opened for investments on May 19, 2023, and is set to close on May 30, 2023. In this blog, we have put down the key points related to this NFO; the discussion will help you in deciding about your nvestment in this NFO .
1. Focus on Defence Sector :
The HDFC Defence Fund aims to select stocks of companies operating in the defence sector, as well as allied services such as aerospace, shipbuilding, and related sectors. This strategic focus aligns with the Indian government's 'Make in India' initiative and its plans to bolster defence expenditure. As a result, defence company stocks have witnessed significant growth recently. Given the government's emphasis on domestic defence manufacturing and increased spending in the sector, the HDFC Defence Fund has the potential for growth.
Investing in the HDFC Defence Fund can be a viable option for individuals seeking exposure to the defence sector.
1. Investment Horizon: You must determine your investment horizon and align it with the fund's objectives. Investment in this special Scheme should typically be done with a medium to long-term perspective to maximize potential returns.
2. Risk Appetite: Assess your risk tolerance before investing. While the defence sector has shown promising growth, it is important to note that investments in this sector may be subject to market volatility and specific risks associated with the industry.
3. Basket Performance: The defence basket has performed extremely good in past year(s). The sector has seen tremendous growth in last few years and is looking very promsing in future too. Experts believe that, this sector/ theme will be the top theme of growing India. Some of the stocks which consist of this sector are :
Hindustan Aeronautics Ltd., Bharat Electronics Ltd., Cochin Shipyard Ltd, Bharat Earth Movers Limited (BEML), MTAR Technologies...etc
4. Opportunity of Diversification : Consider the existing composition of your investment portfolio and ensure that the HDFC Defence Fund aligns with your overall asset allocation strategy. Diversification across different sectors and asset classes can help mitigate risk and optimize returns.
The HDFC Defence Fund presents an opportunity to invest in the thriving defence sector of India. However, like any investment decision, it is crucial to conduct thorough research, assess your risk tolerance, and consider your investment goals. To gain more clarity or seek assistance with investing in this NFO, feel free to reach out to us at 9307218766 or 0522-4101666/67.
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Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of future performance of the schemes. The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes and the same is subject to the availability and adequacy of distributable surplus. Investors are requested to review the prospectus carefully and obtain expert professional advice with regard to specific legal, tax and financial implications of the investment/participation in the scheme..