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 open for subscriptions from 16 November 2017 to 30 November 2017, Post 30th November units will be listed on the capital market segment of the NSE Limited and BSE Limited.
The HDFC Housing Opportunities Fund 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.
|HDFC Housing Opportunities Fund NFO Scheme Details|
|Fund Type||Close Ended Thematic Equity Scheme|
|NFO Period||Nov 16, 2017 – Nov 30, 2017|
|Benchmark||India Housing and Allied Businesses Index|
|Tenure||1140 days from the date of the allotment of the units|
|Fund Manager||Mr. Srinivas Rao Ravuri|
|Allocation (%)||Equity (Housing and allied businesses): 80-100%
Equity (Other than housing and allied businesses): 0-20%
REITs and InvITs: 0-10%
Debt and Money market instruments: 0-20%
|Minimum Allocation||Rs 5,000 and in multiple of Rs 10 thereafter.|
HDFC NFO 2017 falls in 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.
Reason to invest HDFC Housing Opportunities Mutual Fund : Rising disposable income and lower interest rates to improve housing affordability.
Reason NOT to invest HDFC Housing Opportunities Fund : Whole Fund allocated to one sector only and its in high risk high return mutual fund scheme category.