HDFC Defence Fund: HDFC Mutual Fund has a scheme which has turned an investment of Rs 10,000 into a capital of Rs 16,066.47 in just 6 months. Its AUM is Rs 3,665.95 crore. Despite this great response, HDFC Mutual Fund is going to stop new SIPs in it. Know what is the reason and have you started SIP in it?
HDFC Defense Fund: If you want to start investing in a themed SIP to take advantage of the rise in defense sector shares, then hurry up. The reason for this is that after about two weeks, from July 22, one option is going to be reduced. HDFC Mutual Fund announced on July 9 that now from July 22, new SIP (Systematic Investment Plan) will not be possible in its defense fund. According to the announcement of the mutual fund, the SIPs that would have been done before July 22 will continue, that is, investment and withdrawal will continue in it. Another thing is that lump sum and STP (Systematic Transfer Plan) will still remain closed in it.
HDFC Defence Fund is highly concentrated
HDFC Defence Fund is considered a highly concentrated fund because it has 21 stocks in which 63 percent weight is occupied by only five stocks. According to the nature of this fund, it is a mid and small cap oriented fund. 80 percent of the money of this fund is invested in defense and related companies. The stocks related to defense and related sectors include stocks of aerospace and defense, explosives, shipbuilding and related services.
When this fund was launched, Abhishek Poddar, equity fund manager of HDFC AMC, had said that many countries of the world are increasing their defense capability. Self-reliance in defense is creating opportunities for Indian companies on the basis of strong focus on R&D and increase in manufacturing capacity. This has also created a big opportunity for investors. This scheme is managed by Abhishek Poddar and its benchmark is Nifty India Defense Index TRI.
Then why is SIP being closed?
HDFC Defense Fund was launched on 2 June 2023 and SIP can be started with a minimum investment of Rs 100. According to the details available on the HDFC Fund site, in 6 months it has turned an investment of Rs 10,000 into a capital of Rs 16,066.47. Its AUM is Rs 3,665.95 crore. Despite this great response, the decision to close it has been taken because according to experts, there is less liquidity and less options for investment.
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