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Monday, August 31, 2009

HDFC Banking and Financial Services Fund files offer document with Sebi

An open-ended equity scheme

HDFC Mutual Fund has filed an offer document with Securities and Exchange Board of India (SEBI) to launch HDFC Banking and Financial Services Fund, an open-ended equity scheme. The new fund offer (NFO) price for the scheme is Rs 10 per unit.

The investment objective of the scheme is to generate long term capital appreciation from a portfolio that is invested predominantly in equity and equity related securities of companies engaged in banking and financial services.

The scheme shall offer growth and divided option. Dividend option offers divided payout and dividend re-investment facility.

The scheme would invest 65% to 100% of asset in equity and equity related securities of companies engaged in banking and financial services, with a risk profile of medium to high. The scheme would invest 0% to 35% of asset in equity and equity related instruments of companies other than banking and financial services, with a risk profile of medium to high. The scheme may invest 0% to 35% of asset in debt and money market instruments including investments in securitized debt, with low risk profile. Investment in securitized debt shall not exceed 20% of the net assets of the scheme.

Entry load charge is not applicable for the scheme. In respect of each purchase / switch-in of units, an exit load charge of 1% is payable if the units are redeemed / switched-out within 1 year from the date of allotment. No exit load is payable if units are redeemed / switched-out after 1 year from the date of allotment.

Minimum application amount for purchase will be Rs. 5000 and any amount thereafter. For additional purchase the amount will be Rs. 1000 and any amount thereafter.

The minimum subscription (target) amount of Rs. 1 crore is expected to be raised during the NFO period of HDFC Banking and Financial Services Fund.

The Scheme's performance will be benchmarked against BSE Bankex Index.

The fund managers of the scheme will be Vinay R. Kulkami and Anand Laddha.

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