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HDFC Asset Management Co. Ltd., investment manager to HDFC Mutual Fund (HDFC MF), one of India’s leading mutual fund houses has announced the launch of HDFC Non-Cyclical Consumer Fund that intends to invest across India’s consumption categories with a bottom-up stock selection approach for portfolio construction. The captioned NFO opens on June 23, 2023, and closes on July 07, 2023.

The fund’s investment strategy includes core of the portfolio (at least 80%) being invested in stocks that represent the non-cyclical consumer theme within the basic industries like Consumer Goods, Consumer Services, Telecom, Healthcare, Media, Entertainment and Publication. The universe for this theme is diverse – with 300+ companies having market caps more than Rs 500 crores. The fund will invest across market cap segments (largecaps, midcaps and smallcaps), and diversify within consumer sectors and sub sectors.

Commenting on the launch, Mr. Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Company Limited said, “We are delighted to introduce the HDFC Non-Cyclical Consumer Fund to our investors. This new offering reflects our commitment to deliver differentiated opportunities in the market that help investors reach their wealth creation goals. As India moves further into Amritkaal, the consumption sector finds itself at an inflection point. Aided by factors such as India’s GDP per capita surpassing US$2000, themes including Demographic Dividend, Premiumization, Formalization, and Digitization which are expected to drive growth in this sector.”

The scheme will be managed by Mr. Amit Sinha, Fund Manager, Equity and Senior Equity Analyst, Dealing & Investments, HDFC Asset Management Company Limited who has over 18 years of experience of which 15 years is in equity research and 3 years in other corporate roles.  Commenting on HDFC Non-Cyclical Consumer Fund, Amit Sinha said, “We are excited about the launch of the HDFC Non-Cyclical Consumer Fund, which presents an opportunity for investors to capitalize on the potential of non-cyclical consumer themes, comprising sectors such as FMCG, Consumer Durables, Consumer Services, healthcare services. Demand for non-cyclical consumer goods and services remains relatively stable across different phases of the economic cycle. Through diligent research and analysis, we will aim to focus on companies that have high market share or are gaining share on account of superior execution, scale, technology, etc. We aim to be equally focussed on companies which are likely to witness steady and secular growth, along with companies likely to see a turnaround in profitability and have potential of being re-rated.”

HDFC Non-Cyclical Consumer Fund is an opportunity to invest in your everyday. With India’s consumption sector at inflection point, this cross section of India’s listed universe represents an opportunity to invest in growth with relative stability.

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