Hi everyone,
I recently came across the
HDFC Manufacturing Fund, a thematic mutual fund that focuses on companies within the manufacturing sector. Since sectoral funds are known for their potential high returns and equally high risk, I wanted to start a discussion to better understand this fund and its potential.
Here’s what I’ve learned so far:
1. Investment Objective: The fund primarily invests in industries like engineering, construction, chemicals, and manufacturing-related sectors, aiming to capitalize on India’s growth in the manufacturing space.
2. Risk-Reward Balance: Being a sector-specific fund, it’s more volatile compared to diversified equity funds. The performance largely depends on how the manufacturing sector performs in the Indian economy.
3. Ideal for Whom?: It seems suitable for investors with a high-risk appetite and a medium-to-long-term investment horizon.
4. Current Market Context: With the government’s initiatives like Make in India and PLI (Production Linked Incentives), the sector is expected to grow significantly. This might create opportunities for funds like HDFC Manufacturing Fund to outperform in the coming years.
Questions for the group:
a. Has anyone invested in this fund? What has been your experience so far?
b. How do you see the manufacturing sector’s prospects in India?
c. Do you think this fund fits well in a diversified portfolio?
Looking forward to hearing your thoughts and insights. Let’s discuss it!
Locked
