HDFC Manufacturing Fund- You Can Make Your Wealth Rise

Insights to HDFC Manufacturing Fund

Do you want to start building your growth foundation? If yes, then tap into the HDFC Manufacturing Fund. This scheme has been running since May 15, 2024. It is launched by HDFC Mutual Funds.

Furthermore, the scheme invests in firms that are engaged in the manufacturing sector. An estimated 17.4% of India's GDP (gross domestic product) comes from the manufacturing sector. This developing sector employs the youth population of the country. Moreover, the sector drives 20% of the country's capital investments.

The scheme invests in firms of all sizes that the market cap holds. The market cap distribution of the scheme is like the large cap has 28.29%, the mid cap has 20.36%, the small cap has 9.08%, and the remaining 42.27% is in giant cap firms.

The scheme's talented staff also oversees the distribution of investments. Moreover, they design strategies for you that suit your financial goals. The scheme holds total assets of Rs. 12,771.88 Crores since its start. Also, the sector allocation of the scheme is automobiles, cement, auto components, and others.

In addition, the scheme has outperformed the benchmark NIFTY India Manufacturing TRI. Furthermore, the manufacturing sector is supported by the government. Also, the scheme has top holdings in companies such as Mahindra & Mahindra Ltd., Cipla Ltd., and others.

With a brief description of the scheme. Let's turn your attention to learn more about it.

Is HDFC Manufacturing Fund Good to Invest in?

In this section, you’ll learn about the features involved in the scheme.

1. Long-term Investment

The manufacturing sector is developing with the growing population. Hence, the development is a steady process that enhances with time. The scheme benefits you with good earnings when investments are held for a long time. It holds the investments for at least 4-7 years or longer to give you consistent earnings over time.

2. Government Support

The manufacturing sector contributes to the growth of the country's economy. Hence, the government supports this sector to enhance its productivity. As a result, the continuous support enhances the scheme's performance. As a result, the scheme's upgrade generates high profits.

3.Strong Potential

The HDFC Manufacturing Fund grows parallelly with the growth of the sector. Hence, the duration of that productivity leads you to strong potential. As a result, the scheme gives you high potential growth. This potential helps you to stand out strongly in the challenging market.

4.Fund Management

The fund manager of the scheme is Mr. Rakesh Sethia. He guides the management team for investment allocation. With proven statistics and an understanding of the market, the team designs plans for you. These plans are formed in such a way that you can achieve your goals.

5. Investment Methods

The scheme has various investment methods. These are lump sum and systematic investment plans. You invest a huge amount of money all at once to use the lump sum strategy. On the other hand, a systematic investment plan benefits you by investing a small amount.

6. Diversification

The scheme invests in firms of all sizes and market caps involved in the manufacturing sector. Hence this manner, the scheme gives you exposure to explore the different market sizes of the sector. Moreover, gives you portfolio diversification.

Despite many features, the scheme also holds a flip side. In the following section, let's examine the opposite

What are the Risks of the HDFC Manufacturing Fund?

On the flip side, the scheme holds the risk factors that you should consider while investing in it.

1. Political Risk

The sector has the support of government policies. Hence, any change in the policy or new addition to it affects the performance of the scheme. Moreover, the change of government party also affects the scheme. As a result, it also affects your net earnings.

2.Sector-Specific Risk

The HDFC Manufacturing Fund addresses only the manufacturing sector. Hence, changes in the sector or any degradation in its development affect the scheme. In this way, the productivity of the scheme significantly affects your net earnings.

3.Expense Ratio

The research and operational tasks in the scheme take high charges. Furthermore, the frequent liquidity challenges in the investments of small cap firms. These are the reasons that make the expense ratio of the scheme costly. Consequently, this cost is reduced from your net income over time.

4.Market Risks

The market economy is volatile. To illustrate, when the market is not favorable including the manufacturing sector. The scheme productivity goes down and affects your net earnings. As a result, you earn with low returns.

5.Concentration Risks

The scheme has focused on the manufacturing sector. Hence, it gives you a variety of investments in the sector. Although, various investments the scheme gives diversification with the sector.

Let's expand your knowledge about the scheme by learning the steps to invest in it.

How to Invest in the HDFC Manufacturing Fund?

In this section, you'll get to know the steps that you should follow for investing in the scheme.

1.KYC Verification

Authenticate your bank account through KYC (Know Your Customer) Verification. This process is completed by taking your PAN details and Aadhar Card details.

2.Select Platform

Select a platform to start investing through it. You can choose either any mobile app or third-party apps and visit the official website.

3.Choose Investment Method

Select an investment strategy from a lump sum and systematic investment plan. This depends on your requirements and goals.

4.Recheck and Confirm

Review the details, terms, and conditions related to the scheme and then confirm it.

5.Track Investments

You can check the progress of your investments through messages and emails. Also, the mobile apps you have chosen for investing.

Let's take a quick recap of the discussion on the scheme in the next summary section.

Final Note

In summary, the scheme invests in the growth of developing nations. There are various benefits and risks associated with the scheme. These risks are not avoidable but can be reduced at some level.

If you want to be the part of nation's growth story but are afraid to face risks? Then you can start your investing through SIP investments. Whether you wish to pursue your passion or plan retirement. Then this approach becomes your partner in wealth creation.

It follows a regular investing approach that makes investing convenient for you. Even, if you have an average income profile, you can also start savings through this approach. Investments are adjustable in this approach based on your circumstances. So, let your future grow and flourish steadily.