HDFC AMC has announced the launch of the HDFC Transportation and Logistics Fund which plans to invest in companies that are at the forefront of the Transportation and Logistics sector.

The new fund will aim to capitalise on a wide array of opportunities across automotive, shipping and ports, railways, airports and airlines, e-commerce, road/rails/air cargos, supply chain/warehousing etc under the Transportation and Logistics theme, HDFC AMC said in a statement.

The AMC said that HDFC Mutual Fund recognizes the transportation and logistics sector’s significant growth potential, driven by India’s young population with rising disposable income, Low automobile penetration, the trend for premiumisation (shift to costlier variants), Large exports potential, Push for decarbonisation, focus on transportation safety and government’s focus on transport modernisation.

NFO Dates

The NFO for HDFC Transportation and Logistics Fund opened on July 28, 2023, and closes on August 11, 2023.

What the new fund offers

HDFC Transportation and Logistics Fund offers investors an opportunity to invest in a theme which can drive the future of India. The Fund aims to create a diversified portfolio with a flexi-cap market approach. According to the AMC, the stock selection for this fund will have a preference for companies which are leaders/which have the 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.

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“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 become the latest spoke in our product offering wheel,” said Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Company Limited.

Fund Manager

The new fund will be managed by Priya Ranjan, Fund Manager and Senior Equity Analyst, Dealing and Investments, HDFC Asset Management Company Limited. According to the AMC, Priya Ranjan has over 15 years of experience in Equity research.

“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 with a viable investment avenue to participate in the growth story of this theme,” said Ranjan.

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Portfolio allocation

According to the AMC, the core of the portfolio (at least 80%) of the new fund will focus on stocks representing the Transportation and Logistics theme. “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),” the AMC said.

Disclaimer: The above content is based on a press release shared by HDFC AMC. The views and facts expressed above are those of HDFC AMC and do not reflect the views of financialexpress.com. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.