Quick Facts: HDFC Housing Opportunities Fund NFO
|NFO Name||HDFC Housing Opportunities Fund|
|NFO Launch Date||16 November 2017|
|Last Date for Application||30 November 2017|
|Minimum Investment Amount||₹5000
|Fund Type||Thematic Fund
How to Invest in HDFC NFO 2017
If you want to invest in HDFC Housing Opportunities Fund NFO, you have to follow the steps below.
Before investing in HDFC Housing Opportunities Fund NFO
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When investing in this NFO, you must remember, it is a close-ended mutual fund. Once you invest, you will not be able to touch the money until the maturity date. Also, you, need to invest at least ₹5000 in it. Invest only if you don’t need the money for that duration.
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HDFC Housing Opportunities Fund NFO
HDFC Mutual Funds, the second largest asset management company in India recently announced the launch of HDFC Housing Opportunities fund. This HDFC NFO in 2017 will be launched on 16 November 2017 and will accept subscriptions till 30 November 2017. HDFC Opportunities fund is a close-ended fund, post 30th November units will be listed on the capital market segment of the NSE Limited and BSE Limited.
The investment objective of the fund is to provide long-term capital appreciation by investing predominantly in equity and equity-related instruments of entities engaged in and/or expected to benefit from growth in housing and its allied business activities.
The scheme will allocate minimum 80% of the assets in equity and equity related instruments of entities in housing and its allied business activities. The remaining 20% of the assets can be distributed in debt and money market instruments and in equity and equity related instruments of entities other than housing and its allied business activities. Also, up to 10% of the assets may be invested in units issued by REITs and InvITs.
The indicative list of business activities considered under the ‘Housing Theme” will generally include:
- Real Estate developers
- Financial Services providing housing finance
- Allied business activities such as construction, cement & cement product such as concrete, aggregates, bricks. Chemical will include paints, adhesives, water-proofing chemicals. Metals will include iron & steel, aluminum, copper, zinc, etc. Consumer durables will include home appliances, electronic items, furniture & fixtures, etc. Additionally, building products will include glass, roofing, siding, lumber, plywood, insulation, wallboard, windows, doors, cabinets, countertops, HVAC, piping, plumbing fixtures/fittings, flooring, electrical products and many other products. Any other business activity which the fund manager thinks to be allied to the housing theme.
HDFC Housing Opportunity: Fund Category
HDFC Housing Opportunities fund is categorized as a thematic fund. These type of funds look for potential opportunities that come in their focused sector. HDFC Housing Opportunities Fund estimated that there is a shortage of 4 crore houses in India in urban and rural areas. The fund looks to capitalize on the increasing demand in this housing sector because of population growth, nuclearisation, rising per capita income and aspirations of the people of India.
HDFC Housing Opportunity NFO: Benchmark
The fund will be benchmarked to India Housing & Allied Businesses Index by IISL (a group company of NSE). The index comprises of 50 stocks that form a part of select basic industries that are into housing and its allied business activities. The benchmark is rebalanced semi-annually.
Mr Srinivas Rao Ravuri
He comes with 22 years of experience in the Indian financial markets primarily in equity research and fund management. His prior stints were with Motilal Oswal Securities Ltd and Edelweiss Capital Ltd. Currently, he also manages HDFC Growth Fund, HDFC Infrastructure Fund, HDFC Focused Equity Fund and HDFC Equity Opportunities fund- Series 2.
Mr Rakesh Vyas
He has been associated with HDFC Mutual Fund since 2009, prior to which he was working as an associate with Nomura financial advisory and as an associate with Lehman Brothers Services India Pvt Ltd. He has 11 years of experience in equity research and 3 years of experience in application engineering. He is appointed as the dedicated fund manager for overseas investments in HDFC Housing Opportunities fund. Mr Vyas is a management graduate from XLRI Jamshedpur.
HDFC Housing Opportunities Fund: Options and Details
Under this option, no dividends will be declared by the AMC. Income attributable to the units will be remain invested in the fund and will be reflected in the NAV of the units.
Under this option, the fund will declare a dividend on the maturity date which is decided by the AMC. Also, the AMC reserves the right to change the maturity dates.
Minimum investment that can be made per investor is ₹5000 and in multiples of ₹10 thereafter.
Here is a detailed presentation for HDFC opportunities fund NFO 2017.
HDFC NFO Risk
HDFC NFO 2017 falls into the high-risk category as per the company scheme information document indicating that the principal invested by the investors will be at high risk. Some of the risks associated with the fund are reinvestment risk, prepayment risk, credit risk, country risk etc.
The fund is a thematic fund type and therefore is exposed to high equity exposures and stocks having a high beta in the industry. Also, a proportion of investment might be in ADR/GDR or foreign bonds due to which the fund has high currency and country exposure and falls into the high-risk category.