HDFC Mutual Fund on August 1, 2023 announced the launch of HDFC Transportation and Logistics Fund.
The open-ended equity scheme will invest in companies engaged in the transportation and logistics sector. It will aim to capitalise on a wide array of opportunities across automotive, shipping and ports, railways, airports and airlines, e-commerce, road, rail, air cargo, supply chain and warehousing under the transportation and logistics theme, HDFC Mutual Fund said in a press release.
The new fund offer (NFO) opened on July 28, 2023 and will close on August 11, 2023.
Portfolio Allocation
The core of the portfolio (around 80 per cent) will focus on stocks representing the transportation and logistics theme, HDFC Mutual Fund said in the release.
The fund will prioritise companies that are leaders or have the potential to become market leaders in their respective segments, and are poised to benefit from the evolving landscape in transportation and logistics, it said.
“The fund aims to create a diversified portfolio with a flexi-cap market approach. The stock selection will have preference for companies which are leaders and/or which have potential to become market leaders in their respective segments. It will also look for companies which have the potential to benefit from evolving landscape in transportation and logistics theme,” HDFC Mutual Fund said.
Investment Opportunity
According to HDFC Mutual Fund, the fund offers investors a compelling opportunity to invest in a theme which has the potential drive the future of India.
“With exposure to globally competitive domestic and MNC companies boasting a long track record and healthy balance sheet, this fund offers investors the opportunity to invest in multiple sub-segment leaders across the manufacturing (auto and transport equipment) and services sectors (logistics and aviation),” it said.
According to HDFC Mutual Fund, the scheme is suitable for investors who are seeking to generate long-term capital appreciation, invest predominantly in equity and equity-related instruments of companies under the transportation and logistics theme.
The fund has been rated in the very high risk category.
Priya Ranjan, fund manager and senior equity analyst, dealing and investments, HDFC Asset Management Company, said: “India’s transportation and logistics theme is poised for multi-decadal growth, with multiple drivers in the form of young population, rising disposable income, trend of premiumisation, government focus on manufacturing, exports potential, focus on safety and decarbonisation, emphasis on transport modernisation etc. HDFC Transportation and Logistics Fund presents investors a viable investment avenue to participate in the growth story of this theme.”
Navneet Munot, managing director and chief executive officer, HDFC Asset Management Company said: “We are pleased to introduce the HDFC Transportation and Logistics Fund to our investors. At HDFC Mutual Fund, we have always endeavoured to be a one-stop solution for varied financial goals and have delivered a wide array of opportunities through our diverse product bouquet. HDFC Transportation and Logistics Fund becomes the latest spoke in our product offering wheel.”
