One theme, multiple opportunities- Introducing HDFC Housing Opportunities Fund
HDFC Asset Management Company Limited, investment manager of India’s leading mutual fund house, has announced the launch of HDFC Housing Opportunities Fund (HHOF), first of its kind mutual fund scheme dedicated to housing & allied businesses. This new scheme is a closed ended thematic equity fund that aims 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 the growth in housing and its allied business activities.
The NFO period of HDFC HOF – I – 1140D November 2017 (1), 1st Plan launched under HHOF- Series 1 is from November 16 to November 30, 2017. The minimum amount that investors can invest in this fund is Rs 5,000/-
The scheme is benchmarked against India Housing and Allied Businesses Index#, specifically created for this fund.
On the rationale of launching the new scheme, Mr. Milind Barve, Managing Director, HDFC Asset Management Company said, “There is a massive shortage of housing in India and this keeps increasing because of urbanization, nuclearisation of families and population growth. The affordability of houses has gone up due to lower interest rates. Housing is one theme but it encompasses multiple sectors/industries and provides an opportunity to a wide no. of sectors/industries and companies. We believe given the government’spush towards affordable housing this sector is poised to take off”.
Speaking on the fund’s strategy, Mr. Srinivas Rao Ravuri, Senior Fund Manager, Equities at HDFC Asset Management Company Ltd. added, “The fund will focus on identifying companies/ businesses that are likely to benefit from the unprecedented spend on affordable housing. The fund will aim to build a portfolio of companies that will provide investors an opportunity to partake in India’s housing growth story.”
The new scheme will deploy at least 80% of its corpus in equity and equity-related instruments of entities in housing and its allied business activities. It will invest up to 20% in suitable corporate debt. Additionally, depending on market conditions it may purchase Put Options to de-risk the portfolio/lock gains closer to the maturity.
For complete details on investment strategy, refer to SID/KIM
About HDFC Asset Management Company Limited
HDFC Asset Management Company Limited is the investment manager to one of the leading mutual fund houses in the country with a focus on delivering consistent fund performance across categories since the launch of the first scheme(s) in July 2000. The company was approved to act as an Asset Management Company for the HDFC Mutual Fund by Securities and Exchange Board of India (SEBI) vide its letter dated July 3, 2000. HDFC Mutual Fund has been constituted as a trust in accordance with the provisions of the Indian Trusts Act, 1882, as per the terms of the trust deed dated June 8, 2000 and deeds of variation dated June 11, 2003 and June 19, 2003 respectively with Housing Development Finance Corporation Limited (HDFC) and Standard Life Investments Limited as the Sponsors / Settlorsand HDFC Trustee Company Limited, as the Trustee. In terms of the Investment Management Agreement, the Trustee has appointed the HDFC Asset Management Company Limited to manage the Mutual Fund. The paid up capital of the AMC is Rs. 25.16 crore as at March 31, 2017.
