HDFC Mutual Fund has halted fresh lumpsum investments and restricted systematic investment plans in its defence fund, the offer period for which ended on May 30.
The mutual fund informed prospective investors that inflows will be halted effective June 12, according to an addendum to its scheme information document. Fresh systematic investment plans with a monthly frequency up to Rs 10,000 per investor will be allowed.
The mutual fund launched the new fund offer for the HDFC Defence Fund on May 19 and it was originally set to close on June 2. But the asset manager closed the offer earlier on May 30.
The defence fund is a sectoral scheme with the objective of investing at least 80% of its net assets in equity and equity-related instruments of defence and allied sector companies. According to the scheme information document, the core portfolio of the fund “will be listed companies that obtain at least 10% of revenues from defence segment”. The Nifty India Defence TRI, which includes 13 defence companies, will serve as the benchmark for the fund.
The investible universe for the fund is slightly wider, with the investor presentation of the fund highlighting 21 companies. Though, at the time, 18 of these stocks were small caps and contributed 28% of the market capitalisation of the total.
