HDFC Mutual Fund filed a draft scheme information document with SEBI for a thematic fund – HDFC Non-Cycling Consumer Fund. It will be an open-ended equity scheme that follows a non-cyclical consumer theme.
The scheme will be benchmarked against the Nifty non-cyclical consumer index.
The scheme will invest at least 80% of its net assets in equity and equity-related securities, focusing on stocks that are non-cyclical within basic industries such as consumer goods, consumer technology companies, consumer services, telecommunications, services Consumers represent the subject. , media, entertainment, publishing, textile sector etc. The portfolio consists of stocks in the market cap segment.
Further, to achieve diversification, the scheme may invest up to 20% of the assets in companies other than the non-cyclical consumer subject.
The scheme may demand to invest up to 20% of its net assets in foreign securities.
Note that thematic schemes will invest in equities and equity related securities of the companies in the themed and hence the concentration risk is expected to be high. Thus, only a portion of the portfolio should be kept 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.
Amit Sinha will conduct the scheme.
Gains/losses on sale of equity mutual funds (funds having at least 65% equity allocation in their investment portfolio) are treated as capital gains (losses) 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 profit is exhausted in one financial year 1 Lac. long term capital gains up to 1 lakh is completely tax free.
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