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HDFC Banking and Financial Services Fund NFO Review

Updated: Jul 14, 2021

HDFC Mutual Fund has launched a new Fund Offer (NFO) of HDFC Banking and Financial Services Fund for retail investors. NFO will be open for investors from 11 June 2021 to 25 June 2021.

Objective of Scheme

To generate long-term capital appreciation by investing primarily in equity and equity related instruments selected based on a quantitative model. However, there can be no assurance that the investment objective of the Scheme will be achieved.

Scheme will follow NIFTY Financial Services TRI (Total Returns Index)

HDFC Banking and Financial Services Fund
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Under normal circumstances, the asset allocation (% of Net Assets) of the Scheme's portfolio will be as follows:

This fund will manage by two fund managers one is Mr. Anand Laddha which experience is Collectively over 16 years of experience in Equity & Derivative Research and Sales. second fund manager is Mr. Sankalp Baid which experience is Collectively around 13 years of experience in Macro economics, credit analysis, trading and audit.

Fund Details

Key Feature

The fund will invest in companies that are leading and gaining market share due to better performance, scale and better adoption of technology.

The fund will also focus on opportunities in new listings that include pre-IPO participation in lending, insurance, capital markets businesses and fintechs.

Some AMC`s scheme in this category already is exist

Applicable Tax on Redemption or Switch of Scheme

Capital gains :-

1. If the mutual fund units are sold after 1 year from the date of investment, gains up to Rs 1 lakh in a financial year are exempt from tax. Gains over Rs 1 lakh are taxed at the rate of 10%.

2. If the mutual fund units are sold within 1 year from the date of investment, entire amount of gain is taxed at the rate of 15%.

3. No tax is to be paid as long as you continue to hold the units.

Dividends :- Dividends are added to the income of the investors and taxed according to their respective tax slabs. Further, if an investor's dividend income exceeds Rs. 5,000 in a financial year, the fund house also deducts a TDS of 10% before distributing the dividend.


  1. To generate long-term capital appreciation/income.

  2. Investment predominantly in equity & equity related instruments of banking and financial services companies.

  3. Investor should invest in this scheme fore five year and more



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