HDFC Mutual Fund has launched a new close ended equity scheme named "HDFC Focused Equity Fund - Plan A" with maturity period of 1100 days from the date of allotment.
The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The NFO opened for subscription on January 15 and will close on February 13.
According to the offer document filed with SEBI, the entry load is nil and since the scheme is planned to be listed on the Stock Exchange or any other exchange, the exit load charge will not be applicable. This suggests that the investors wishing to exit may do so through the stock exchange mode.
The minimum application amount is Rs 5,000 and in multiples of Rs 10 thereafter. The options available under the plan of the scheme are Growth and Dividend Payout option.
The performance of the scheme will be benchmarked against S&P BSE 100 Index. Srinivas Rao Ravuri and Prashant Jain will be the fund managers of the scheme.
The asset allocation of scheme will be in such a way that the objective of the scheme to generate long term capital appreciation will be met by investing in a portfolio of equity securities specified as eligible securities for RGESS and money market instruments and liquid schemes.
Hence, the scheme will allocate 95 to 100 per cent of asset in equity securities specified as eligible securities for RGESS and 0 to 5 per cent of asset in money market instruments and liquid schemes.