NFO Alert: Mahindra Manulife Mutual Fund launches Mahindra Manulife Manufacturing Fund; all you need to know

livemint.com:

Mahindra Manulife Manufacturing Fund. This is a thematic fund focused on the long-term opportunities that will emerge as manufacturing continues to gain impetus from policy actions and become a significant driver of the economic transformation agenda.

This might be a good option for investors looking for sharper niche ideas and themes that are long-term in nature. This mutual fund could be a good complement to their core portfolio of equity funds."The scheme shall seek to generate long-term capital appreciation by investing predominantly in equity and equity-related securities of companies engaged in the manufacturing theme.Investors can invest under the scheme with a minimum investment of ₹1000 per plan/option and in multiples of Re 1.

There is no upper limit for investment.Under normal circumstances, the asset allocation of the scheme will be as follows:Indicative allocations (% of total assets)Risk ProfileMinimumMaximumHigh/Medium/LowEquity and Equity-related securities of companies engaged in manufacturing theme80%100%Very HighEquity and Equity related instruments of companies other than the above0%20%Very HighDebt and Money Market Securities# (including TREPS (Tri-Party Repo) and Reverse Repo in Government Securities)0%20%Low to ModerateUnits issued by REITs & InvITs0%10%Very HighTo date, many asset management companies (AMCs) have launched such manufacturing funds, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. These include:Mutual Fund HouseName of the Fund1-year returns (in %)Navi Mutual FundNavi Nifty India Manufacturing Index FundKotak Mahindra Mutual Fund Kotak Manufacture in India FundBank of India Mutual FundBank of India