HDFC Manufacturing Fund: An Affordable Way to Grow More

Introduction

As you know India is a developing country and every sector and industry is growing fast and steadily. Have you ever thought to invest in this emerging economy of India? Well, HDFC Manufacturing Fund, which was launched in May 2024, plays a crucial role in this sector. It is a scheme offered by the biggest asset management company in our nation known as HDFC mutual fund. This mutual fund is used to promote sustainable practices and improve technological sectors.  

In this article, you will explore and learn about the fund manager, benefits and many more.

What is the HDFC Manufacturing Fund?

This fund is a thematic mutual fund offered by HDFC Mutual Fund. It mainly invests in the main companies of the country involved in manufacturing sectors. Hence, helping in the growth of the emerging industrial sectors. This company mainly invests in automobiles, electronics, pharmaceuticals and industrial equipment.

HDFC manufacturing fund NAV (Net Asset Value) is currently at Rs.9.85 which reflects the total value per share.

After you know about the fund and where it invests lets find out about the fund managers who are managing this giant scheme.

Who are the Fund Managers of HDFC Mutual Fund?

HDFC manufacturing fund has a total assets of Rs.2464.93 Cr and is backed by such a big AMC and is managed by the two most experienced and talented fund managers in India. Mr. Rakesh Sethia and Mr.Dhruv Muchhal. Sethia manages the overall fund and Muchhal manages overseas.

Mr. Rakesh Sethia joined the HDFC mutual fund in April 2024 and has over 17 years of experience in equity research. He previously worked at HSBC Securities and Morgan Stanley India.

Mr. Dhruv Muchhal who manages overseas investment for this fund has over 13 years of experience in the international market. He is a charted accountant who studied at the University of Mumbai.

How Does HDFC Manufacturing Fund Work?

This fund pools the money and invests in manufacturing sectors of the nation

The fund manager selects the companies based on market trends, potential growth and financial performance. The working of this fund is based on factors like:

1. Application and Approval Process

Applicants must meet specific criteria to access funds. These include business plans and proof of financial stability.

2. Fund Distribution and Utilization

Once approved the funds are allocated based on their milestone. The company must use these funds for the intended purpose and provide regular progress growth.

3. Monitoring and Reporting

Fund providers often do periodic audits and performance analyses to ensure transparency and accountability. HDFC manufacturing fund NAV also audits and calculates at the end of every working day and publishes the report before 11 PM on the same day.

Types of HDFC Manufacturing Funds 

There are two types of funds:

1. Sectoral Funds

Sectoral mutual funds mainly focus on a specific sector and primarily invest in that only. The main objective of this fund is to make investments in the manufacturing sector. The main focus of this fund is on the renewable energy, automotive and chemical industries.

2. Thematic Funds 

Thematic mutual funds are the type of investment that is focused on a specific theme or overarching idea rather than limited to one single industry or sector. These funds are mainly focused on areas like sustainable and green manufacturing, AI-driven companies and industries that are focused on IOT and innovation in technology.

However, you all have a question that this mutual fund is helping in the growth of the country and investing in emerging sectors would have some benefits right? Lets see what are the benefits.

Merits of HDFC Manufacturing Fund

Among the other funds, this fund has been the stellar performer That is why this fund has many advantages:

1. High growth Potential

This fund has the potential for significant growth because it is driven by so many factors such as technological advancement, globalization, pharmaceuticals and increasing customer demand. Fund managers have a grip on this sector and primarily invest to have stable growth. The growing global population is steadily increasing and has a wide range of consumer goods.

2. Diversification Benefits

Investing in this fund gives exposure to a diverse range of companies within the sector and reduces overall portfolio risk.  It reduces the company-specific risk. By investing in a diverse range of companies a fund can help smooth out the volatility of returns. When some companies are performing well there will be some companies that will be performing well and lead to more stable returns.

3. Exposure to Economic growth

This fund enables the investor to scale opportunity and it is a key driver of economic growth. By investing in this fund, investors get to be part of the economic growth of the country. It helps businesses scale their operations, create employment opportunities and contribute to national GDP.

4. Sustainability and Green Initiatives

This mutual fund targets eco-friendly projects to encourage sustainable practices reduce environmental impact and promote green energy adoption. Such initiatives not only align with global climate but also position companies in a rapidly growing green economy.  Moreover, these practices often result in long-term cost savings.

5. Risk Mitigation

Manufacturing often comes up with support structures like mentorship, strategy and training which reduces the operational risks for businesses. These support structures and empower businesses to enhance their competitiveness and chance of success. This fund also offers SIP which starts from Rs.100 only. So that the investor can invest as per their financial goals.

Conclusion

In conclusion, the HDFC Manufacturing fund has a strong reason to attract anyone looking for exposure to one of the fundamental sectors of the economy. Backed by one of the giant asset management company known as HDFC mutual fund. This fund promises innovation, trust and high growth potential and makes your portfolio profitable and less risky. Hence, If you want to invest industrial sector and be part of the emerging Indian economy with just Rs.100 SIP per month then this fund is a fantastic choice for you.