Page 16 - Banking Finance May 2024

MUTUAL FUND

Mutual Fund

HDFC Mutual Fund laun- The investment strategy of the scheme The category has been attracting
will emphasise on a core portfolio com- regular inflows since the beginning of
ches HDFC Manufacturing prising at least 80% investment in stocks financial year 2023-24 in April after a
Fund representing diverse sectors under the change in taxation for debt funds that

HDFC Mutual Fund has announced the manufacturing theme. The fund's flex- kicked off in the same month. Before
launch of HDFC Manufacturing Fund, ible approach allows for investments that, the segment saw a net with-
an open-ended equity scheme aiming across market capitalization, offering drawal of Rs 12,372 crore in March.
to unlock the potential of India's manu- investors an exposure to a wide range Overall, the hybrid category saw net
facturing sector by investing predomi- of opportunities within the manufactur- inflows of Rs 1.45 lakh crore in FY24,
nantly in equity and equity-related se- ing landscape, said the press release. compared to an outflow of Rs 18,813
curities of companies engaged in crore in FY23, data with the Associa-
manufacturing activities. Hybrid mutual funds stage tion of Mutual Funds in India (AMFI)
The new fund offers or the NFO of the comeback; see Rs 1.45 showed.
scheme will open for subscription on lakh crore inflows driven "Anticipating a reversal in the interest
April 26 and close on May 10. rate hike cycle in FY24, market partici-
by arbitrage investments pants strategically allocated funds to
The fund's investment objective is to pro-
vide long-term capital appreciation by Hybrid mutual fund schemes have seen capitalize on higher rates, while con-
identifying companies poised to benefit a resurgence in 2023-24, garnering Rs tinuing a favourable stance towards
from India's manufacturing resurgence. 1.45 lakh crore in investments, driven equities, real estate, and gold.
by substantial inflows into the arbi- However, the rate cuts never materi-
India's manufacturing sector stands at trage category, following withdrawals
the cusp of an Amrit Kaal, a golden alized and bond yields continue to be
in the previous fiscal year. The surge in higher, retaining the interest of inves-
era, fuelled by various factors such as assets was complemented by an in-
growing consumption, investments, crease in the number of investors, with tors," Gopal Kavalireddi, Vice President
and exports, coupled with changing the number of folios reaching 1.35 - Research at FYERS, said.
geopolitical dynamics and the crore in March 2024 from 1.21 crore
government's push for self-reliance a year earlier, adding an investor base Kotak Mutual Fund files
through reforms and incentives. The of 14 lakh. This shows investors' incli- draft document with Sebi
fund seeks to capitalise on these nation for hybrid funds.
tailwinds, offering investors an oppor- for special opportunities
tunity to participate in the country's Hybrid funds are mutual fund schemes fund
transformation into a global manufac- that typically invest in a combination of Kotak Mutual Fund has filed a draft
turing powerhouse, according to the equity and debt securities and sometimes document with Sebi for a special oppor-
press release by the fund house. in other asset categories such as gold.

BANKING FINANCE | MAY | 2024 | 15