HDFC Manufacturing Fund- You Can Make Your Future Stron

Insights to HDFC Manufacturing Fund

HDFC Manufacturing Fund is a thematic scheme. The scheme is started by HDFC Mutual Funds on May 15, 2024. This scheme focuses on generating high gains with its investments for your growth. The fund makes investments in companies related to the manufacturing sectors.

The growing demand from customers leads to the expansion of manufacturing industries. This sector plays an important role in upgrading the country's economy. Furthermore, it contributes 17% to India's GDP and serves as a source of income for millions of workers nationwide.

The manufacturing industry has a number of activities. For example, industries such as automation, telecommunications, chemicals, and pharmaceuticals, among others.

Moreover, this sector is backed by various government initiatives to achieve long-term growth. Government support makes this sector trustworthy for investing and gaining from it.

The scheme balances your finances by managing the market risks. It gives you the potential to stay in the industry as well as in the market for a long time. This scheme works as an opportunity for you to upgrade your living while growing with the sector.

With the brief of the scheme, let's explore the scheme in detail.

Is HDFC Manufacturing Fund Good?

Here are features mentioned that ensure you that whether you should invest in the scheme or not:

· Government Support

The government provides support to the manufacturing sector to upgrade the country's economy. For example, the Production Linked Incentives (PLI) scheme, and the Make in India. These programs aim to create jobs and drive economic growth of the country. This support to the sector gives you surety for investing in the scheme.

· High-Returns

The manufacturing sector will continuously grow with the increasing demand of customers. This increasing demand brings innovations. The scheme invests in companies according to the market demands. In return, it gives you high earnings that help in balancing your economic background.

· Long-term Investment

The manufacturing and development is a long time procedure. Hence, the fund grows with time. The scheme benefits you more with the investments for a long time like 5-7 years or more. This long-term investment makes you stay positioned in the market for a long time.

· Diversification

The manufacturing sector has different activities such as transformation, automation, processing, and exploration. This scheme explores the companies involved in activities related to the manufacturing sector. This gives you a variety of investments in your portfolio. As a result, it makes your portfolio rare.

· Investment Flexibility

The scheme provides you with the flexibility of investing. It has a lump sum and systematic investment plan. The Lump sum investments take a huge amount of money at once to initiate. While the systematic investment plan gives the advantage of regular investing. It requires a small amount of money to initiate.

With a brief description of the features, let's learn the demerits of the scheme.

What are the Demerits of the HDFC Manufacturing Fund?

Here are the demerits that you should consider while investing in the scheme:

· Political Risk

The government supports the manufacturing sector with different policies and schemes. The sudden variation in the policies and schemes significantly affects the fund's performance. Moreover, the change in government is also reflected in the growth of the fund. These sudden variations of politics become a reason for making your earnings down.

· Sector-Specific Risk

The scheme only addresses companies in the manufacturing sector. The lack of upgradation in the sector affects the performance of the scheme. Additionally, when the market is facing economic downturns including the sector. The scheme shows the underperformance as a fall in the returns.

· Market Volatility

The scheme is volatile. The lack of customer demand makes the market degrade. The degradation in the market makes the fund underperforming. This underperformance of the scheme shows a fall in your earnings.

· Expense Ratio

This theme-based scheme requires research-oriented strategies. These strategies are planned with a deep analysis of the market statistics. The operational and analyzing costs are high paying. This cost is deducted from your net earnings over time.

· Concentration Risk

The scheme only focuses on the manufacturing sector. This limits you from exploring the other sectors. Investments in this scheme make diversification in your portfolio only within the sector.

Let's learn the steps that you can take to start a systematic investment plan for the scheme.

How can start SIP in the HDFC Manufacturing Fund?

Here is the step-by-step guidance that you can follow to start SIP in the scheme:

1. Select Platform

There are various options you can choose to start the SIP. You have options such as the official website of the fund house, mobile apps, and financial advisors.

2. KYC Verification

Complete your KYC (Know Your Customer) verification to authenticate your account. It requires your PAN card, Aadhar card, and a passport-sized photograph.

3. Choose the HDFC Manufacturing Fund

Now select the scheme from the HDFC Mutual Fund. You can also check its risks, performance, and related information.

4. Select the SIP frequency

SIP involves investments at regular intervals. These intervals are monthly, quarterly, and yearly. You have to choose the frequency of investing based on your goals and circumstances.

5. Decide the Amount

You have to decide the amount to start investing in the scheme. The minimum amount for investing in the scheme starts from Rs.100.

6. Select the Date for Deduction

Decide and select the date that is convenient for you. According to your chosen SIP interval, the amount will be deducted from your bank account on the selected date.

7. Link Your Bank Account for automatic Deduction

Link your bank account by providing bank details. That will automatically deduct the decided money from the account for SIP on the specific date.

8. Recheck and Confirm

Review the information that you have given to start the SIP investment. Agree with the terms and conditions of the investing procedure.

9. Monitor the SIP

You can keep monitoring your investment after the activation of SIP.

Let's wrap up the detailed description of the scheme in the summary.

Final Note

Last but not least, the scheme is more oriented towards the manufacturing sector. It gives you high potential to stand out in the market. The scheme gives you long-term growth with good earnings. It has the flexibility to invest at regular intervals via SIP investments. This investment makes investing easy and convenient for everyone. It reduces the market risks and can be adjusted easily according to your goals.