Bullish on theme manufacturing? Go for staggered investment plan

Mumbai: Investors bullish on India's manufacturing story could consider putting money in HDFC Asset Management's Manufacturing Fund; but the investment should be spread across 12 months, said financial planners. While investors must avoid putting in lump sum money at this jucture, first-timers could skip this fund launch.

The NFO of HDFC Manufacturing Fund, managed by Rakesh Sethia, is currently open and closes on May 10. Investors can start with ₹100 in this fund, and the scheme will be benchmarked to the Nifty India Manufacturing TRI Index. An exit load of 1% will be levied for redemption made within a month of investment.

"Core sector manufacturing will see significant growth due to government policies, technological advancements, and increasing demand," says Rajat Dhar, managing partner, Finogent Solutions. "Investors looking to diversify their equity holdings beyond sectoral allocation like finance and technology, can consider this fund and can stagger investments over the next 6-12 months."


Atleast 80% of the scheme's portfolio will be invested in shares of sectors such as capital goods, oil&gas, auto, healthcare, consumer durables, metals and mining, chemicals, textiles and construction materials

Financial planners are cautioning new investors against buying such thematic funds. "Investors must build a core portfolio of diversified funds before venturing into thematic funds," says S Shankar, CFP,Credo Capital.