HDFC Innovation Fund Files Draft with SEBI

HDFC Mutual Fund has submitted a draft Scheme Information Document (SID) to the Securities and Exchange Board of India (SEBI) for its new offering, the HDFC Innovation Fund. It is an open-ended equity-oriented scheme that will invest in companies focusing on innovation across industries. 

The fund follows a thematic approach, targeting businesses that implement new technologies, processes, or business models.

Structure and Strategy

The HDFC Innovation Fund will primarily invest 80-100% of its assets in equity and equity-related instruments of companies classified under the innovation theme. The fund can also allocate up to 20% in other equities, up to 10% in REITs and InvITs, and up to 20% in debt and money market instruments.

The benchmark for this scheme is the NIFTY 500 Total Return Index (TRI). This aligns with SEBI and AMFI guidelines for thematic mutual funds.

NFO and Exit Load

The scheme will be available for purchase during the New Fund Offer (NFO) period, at a price of ₹10 per unit. Investors will have the option to invest through Regular and Direct plans, with two investment options: Growth and Income Distribution cum Capital Withdrawal (IDCW).

For redemptions, the fund follows these conditions:

• 1% exit load if redeemed within one month of investment
• No exit load after one month

Redemption proceeds will be transferred within three business days, and IDCW payouts will be processed within seven working days.

Thematic Focus

The scheme intends to invest in companies that demonstrate product, service, or process innovation. This includes sectors such as technology, healthcare, renewable energy, fintech, and consumer goods. Businesses engaged in automation, artificial intelligence, digital payments, or sustainable manufacturing may also be considered.

Additional Details

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.