Monday, November 6, 2017

HDFC Housing Opportunities Fund

HDFC Housing Opportunities Fund - Series 1 , which is the first of its kind in the industry.
  • HDFC Housing Opportunities Fund is a 1140 days close-ended thematic equity offering investing a minimum of 80% into equities of housing and allied businesses.


  • Housing theme would predominantly include industries including Cement, Engineering-Designing-Construction, Banks, Housing Finance, Steel, Paints, Construction, Home appliances, Plywood, Sanitaryware, Tiles, etc. Hence, a diversified basket to choose stocks from.


  • Benchmark: A custom-made benchmark by IISL (NSE) called India Housing and Allied Businesses Index, a 50 stock index that currently includes 14 basic industries.


  • Why housing theme:
    1. Acute shortage for housing in India
    2. Favourable demographics, urbanization and shift toward nuclear households.
    3. Government focus on affordable housing.
    4. Improved affordability on account of stable house prices, increase in income levels and a drop in interest rates.
    5. Multiple macro-economic linkages to foster growth in allied industries, thereby boosting economic growth.
    6. HDFC Housing Opportunities Fund to focus on businesses that would benefit from the expected growth in housing.

    NFO Period: 16th to 30th November 2017




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