HDFC Mutual Fund filed a draft scheme information document with SEBI for a thematic fund – HDFC Non-Cyclical Consumer Fund. It will be an open-ended equity scheme that follows a non-cyclical consumer theme.
The scheme will be benchmarked against Nifty Non-Cyclical Consumer Index.
The scheme will invest at least 80% of its net assets in equity and equity-related securities with a focus on stocks that represent the non-cyclical consumer theme within the basic industries like Consumer Goods, Consumer technology companies, Consumer Services, Telecom, Services, Media, Entertainment, Publication, Textiles sectors etc. The portfolio comprises stocks across market cap segments.
Further, to achieve diversification, the Scheme may also invest up to 20% of the assets in companies other than the non-cyclical consumer theme.
The Scheme may seek to invest upto 20% of its net assets in foreign securities.
Note that the thematic schemes will invest in equity and equity-related securities of companies engaged in the theme and hence concentration risk is expected to be high. Thus, only a portion of the portfolio should be parked in thematic funds.
The minimum application amount during the NFO period is ₹5,000. For an additional purchase, the minimum application amount will be ₹1,000.
The scheme will be managed by Amit Sinha.
Gain/loss on sale of equity mutual funds (funds that have at least 65% equity allocation in their investment portfolios) is considered as capital gain (loss) for the purpose of taxation. The minimum holding period for long term capital gains in equity funds is one year. Short term capital gains (if the units are sold before one year) in equity funds are taxed at the rate of 15% plus 4% cess. Long term capital gains tax in equity funds is 10% + 4% cess provided the gain in a financial year is over ₹1 Lakh. Long term capital gains upto ₹1 lakh is totally tax-free.
Never miss a story! Stay connected and informed with Mint.
our App Now!!