HDFC has also joined the bandwagon to launch an infrastructure fund like other AMCs. Everybody is painting a rosy picture of Indian infrastructure. However, their is no master plan and it is a haphazard growth story with various governments coming to power scrapping previous regimes work / projects and rampant corruption in awarding tenders.
HDFC Infrastructure Fund – Features
- Closed Ended Fund – 3 years Will be converted into open ended after 3 years
- To seek long term capital appreciation by investing predominantly in equity and equity related securities of companies engaged in or expected to benefit from the growth and development of infrastructure
- Minimum Rs. 5,000 and in multiples of Rs. 100 thereafter per application
- Till conversion of the scheme into an open-ended scheme, the scheme will offer for redemption / switch-out of units on an ongoing basis at monthly intervals at NAV based prices. The redemption / switch-out of units will be available only during the specified redemption period i.e. the first two business days of each calendar month
HDFC is charging an initial issue expense of 6% amortoised over a period of 3 years.
