The HDFC Commodities Fund is an open-ended equity scheme targeting investments in companies within the commodity and related sectors. This thematic fund aims to achieve long-term capital appreciation by focusing on equity and equity-related securities in areas such as oil, cement, power, chemicals, and metals. However, these investment goals are not guaranteed.
The NFO will be open for subscription for a minimum of 3 working days and no more than 15 days. The NFO price is ₹10 per unit. Although the scheme does not currently have a segregated portfolio, it has provisions to create one if needed. The fund may also engage in stock lending or short selling.
The HDFC Commodities Fund will primarily invest in a variety of financial instruments. These include equity and equity-related instruments, debt and money market instruments, derivatives, and commodity ETFs such as Gold ETFs, Silver ETFs, and any other commodity ETFs allowed by SEBI. The fund will also invest in Real Estate Investment Trusts (REITs), Infrastructure Investment Trusts (InvITs), units of other mutual funds, and short-term deposits.
The scheme will focus on investing in equity and equity-related securities that are involved in commodity and commodity-related industries, both domestically and internationally. The fund manager will base investment decisions on the sectors and companies highlighted by the benchmark index or those classified under AMFI’s macroeconomic sector of commodities.
The performance of the HDFC Commodities Fund will be measured against the NIFTY Commodities Index (TRI). It consists of 30 companies listed on the NSE and serves as a representative benchmark for the fund’s performance.
Investors can redeem or switch out units on any business day at NAV prices. The fund’s performance will be measured against the NIFTY Commodities Index (TRI), which tracks a diverse portfolio of 30 companies in the commodities segment listed on the NSE.
The fund offers Regular and Direct Plans with two options: Growth and Income Distribution cum Capital Withdrawal (IDCW). The IDCW option includes sub-options for payout and reinvestment. The default option is Growth, with the default facility being Payout.
An exit load of 1% is applicable if units are redeemed or switched out within 30 days of allotment, with no exit load after 30 days. The minimum application amount during the NFO and on a continuous basis is ₹100, with additional purchases also set at ₹100. Redemptions can be made with a minimum of ₹100 and multiples of ₹1 after that.
Investors can apply for the fund through various channels, including offline submissions, the HDFC MF website, and other platforms. The ASBA process is available during the NFO period to block investor account amounts. For more details, the Statement of Additional Information (SAI) is available on the HDFC Fund website.
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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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