NFO - HDFC Housing Opportunities Fund – Series 1

India Infoline News Service | Mumbai | November 18, 2017 17:16 IST

HDFC Housing Opportunities Fund is a close ended thematic equity which will primarily invest in housing and allied businesses. The Housing and allied businesses include Real estate developers, Housing finance NBFC, construction, cement, paint, metal, consumer durable and other building materials.

HDFC Housing Opportunities Fund is a close ended thematic equity which will primarily invest in housing and allied businesses. The Housing and allied businesses include Real estate developers, Housing finance NBFC, construction, cement, paint, metal, consumer durable and other building materials.
 
Besides, depending on market conditions, the fund can buy put options of Nifty 50/individual stocks close to the maturity of the fund to cap the downside risk.
 
Below are the rationales of investing in the housing and allied business themes:
 
Increase in Affordability
Affordability has increased over the last decade due to the rising disposable income and lower interest rates.
 
Government’s top agenda
Government is pushing for “Housing for all by 2022” and target to build 5 crore homes over 5 years under Pradhan Mantri Awaas Yojana - Urban and Gramin which could lead to maximum activity in this segment.
 
Acute housing shortage in India
66% of the population of India is below 35 years of age and there is shift towards nuclear families, hence large demand for housing
 
Besides, the changing landscape provides a favorable environment for the growth of housing sector. In addition, the multiple macro-economic factors will also increase the growth in allied industries.
 
Below are the scheme details:
Scheme Details
Fund Type Close Ended Thematic Equity Scheme
NFO Period Nov 16, 2017 – Nov 30, 2017
Benchmark India Housing and Allied Businesses Index
Tenure 1140 days from the date of the allotment of the units
Fund Manager Mr. Srinivas Rao Ravuri
Allocation (%) Equity (Housing and allied businesses): 80-100%
Equity (Other than housing and allied businesses): 0-20%
REITs and InvITs: 0-10%
Debt and Money market instruments: 0-20%
Minimum Allocation Rs 5,000 and in multiple of Rs 10 thereafter.

 

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