Insights to HDFC Manufacturing Fund
The scheme was started by reputed fund house HDFC Mutual Funds.
The manufacturing sector is a lifeblood to drives the economic growth of any nation. In addition, it creates jobs for millions of workers. The government itself oversees the manufacturing sector for the better development of the nation.
The manufacturing sector offers an opportunity for you to capitalize on your growth. Moreover, the scheme increases your potential to stay in the market for a long time. This developing field gives you superior gains for a long time that last long.
Additionally, with proven statistics and an understanding of the market. The expert team of the scheme designs strategies based on market research. These strategies are planned in such a way that they will reach your goals and benefit you.
Furthermore, the scheme invests in companies of all market caps engaged in the manufacturing sector. The scheme is also surpassing the NIFTY India Manufacturing TRI standard.
In addition, the scheme invests in many diverse sectors and well-leading firms. To illustrate this point, the sectors include Pharmaceuticals, Cement, Automobiles and others. Moreover, the holdings are in SUN Pharmaceuticals Industries Ltd., Tata Motors Ltd., Cipla Ltd., and others.
Building on the scheme, let’s explore the different perspectives associated with it.
Is the HDFC Manufacturing Fund Reliable?
Expanding your knowledge about the scheme. In this section, you’ll learn the features of the scheme.
- Long-term Investment
The developing process takes time and effort. The scheme benefits you with investments that stay constant for a long time of at least 4-7 years or more. Consequently, it gives you good earnings for a long time.
Government Support
The manufacturing sector is backed by the government to make a sustainable future for the nation. Hence, the investments in funds related to this sector flourish in a good direction. Thus, the scheme builds trust in you to invest in it.
Strong Potential
The scheme has ups and downs like other schemes. However, these ups and downs affect you but the growth through this scheme makes you strong. These powerful comebacks give you the ability to be as resilient as a wall. As a result, you are ready to fight back against the challenges.
Fund Management
The HDFC Manufacturing Fund is overseen by Mr. Rakesh Sethia, the fund manager. Under his guidance, the management team keeps a record of the market statistics. Moreover, they design research-based plans for you that aim to achieve your goals.
Investment Methods
The scheme has the flexibility of distinct investment strategies for you. These strategies are lump sum and systematic investment plans. The lump sum benefits you by taking a one-time payment. On the other time, a systematic investment plan follows a regular investing process.
Diversification
The scheme focuses on the manufacturing sector only. The investments in the scheme give you exposure to explore the sector and its activities. Moreover, this gives your portfolio a variety of investments in the sector.
However, the scheme has many features. It also has a flip side. Let’s go to the next section where you’ll get to know the other side of the scheme.
How Risky is the HDFC Manufacturing Fund?
Here is the other side of the scheme which consists of the risks associated with the scheme.
Political Issue
The scheme has to suffer due to the changes in policies and the schemes of the government. Additionally, the change of government party also affects the scheme’s productivity. As a result, less productivity has a significant effect on your net earnings.
Sector-Specific Risk
The scheme has only focused on the production of the manufacturing sector. The sudden changes in the sector are either natural transitions or manual. These changes affect the performance of the HDFC Manufacturing Fund and the return rate. Consequently, the degradation in performance is reflected in the lowering of your earnings.
Expense Ratio
The scheme has investments in all market cap firms related to the manufacturing sector. Hence, investment in small cap firms has liquidity challenges. This challenge affects the expense ratio of the scheme. Moreover, the research and operational part also costs more. Thus, these reasons lower your net income
Market Risks
The market is volatile. The market economy is prone to fluctuations. When the market is not doing well, it affects the scheme’s performance. Hence, it results in the fall of returns. Consequently, it will also show in your income.
Concentration Risks
As the scheme is sector-specific, it gives you a chance to explore the different areas of the sector. Moreover, it gives your portfolio a variation in investments within the sector.
With that in mind, now let’s move to the next section where you’ll get to know about the criteria for the scheme.
Who can Invest in the HDFC Manufacturing Fund?
Now in this section, you’ll get to know about the suitability criteria of the scheme. This will help you while investing in the scheme.
· Long-term Growth Seekers
The manufacturing sector is growing and takes time to develop. If you are seeking long-term financial goals. Furthermore, if you are a retiree or nearly retiring then the scheme benefits you with good earnings for a long time.
· Diversification Seeker
The scheme addresses the developing sector of the nation, the manufacturing sector. If you have an interest in exploring this dynamic sector. Also, if you wish to give your portfolio a new direction toward the manufacturing sector. Then this scheme is suitable for you.
· Regular Investors
The scheme provides with regular investing process. If you are new to the investing journey or have an average income source. Then this scheme benefits you by building your portfolio and gives you good returns.
· High-Risk Tolerance
The scheme is prone to distinct market risks. If you understand the market fluctuations and can adjust your investments. Then this scheme suits you.
Now let’s bind up the discussion about the scheme in the next summary section.
Final Note
To summarize the scheme, it is a door for you to make your growth and future strong. It has many features and is also prone to some risks. If the fear of risks is the only reason that stops you from investing in the scheme.
Then wait here is a way for SIP investments that reduces your fear of risks. This investment is flexible to adjust. Moreover, it gives you investing options on predefined intervals. These intervals are monthly, quarterly, and yearly. In addition, you can easily upgrade your investment amount over time.