The scheme is benchmarked against Nifty Transportation and Logistics TRI. The scheme will be managed by Dhaval Gala.
The investment objective of the scheme is to achieve long term capital appreciation by investing in equity and equity related securities of companies following transportation and logistics theme. The scheme will offer regular and direct plans with growth and IDCW options.
The minimum application amount will be Rs 500 and in multiples of Re 1 thereafter. The minimum application amount for monthly and weekly SIP is Rs. 500 each and above per month with minimum six instalments.
The scheme will invest 80-100% in equity and equity related instruments of companies following transportation and logistics theme, 0-20% in equity and equity related instruments other than the transportation and logistics theme, 0-20% in debt and money market instruments, and 0-10% in units issued by REITs & InvITs.
The scheme will follow a bottom-up approach to stock-picking. All companies selected will be analyzed taking into account the business fundamentals like nature and stability of business, prospects of future growth and scalability, financial discipline and returns, valuations in relation to the broad market, expected growth in earnings and the company’s financial strength and track record.The scheme is suitable for investors who are seeking long-term capital appreciation and want investment in equity and equity related instruments following transportation and logistics theme.
Should you invest?
Should you invest in these NFOs? We typically ask investors to invest in NFOs only if they offer something unique. The uniqueness could be that the scheme is offering an investment option that is not available in the market or offering something extra to an existing option. Otherwise, we believe investors are better off with an existing scheme with a long performance record. This is because you have some historical data to base your investment decision. You don’t have any data when it comes to new offerings.
There are around four schemes under the transportation and logistics sector. UTI Transportation & Logistics Fund is the oldest scheme in the category with a performance record of more than 10 years. The scheme gave around 18.19% in 10 years. Three schemes – Bandhan Transportation and Logistics Fund, HDFC Transportation and Logistics Fund, and ICICI Prudential Transportation and Logistics Fund – are relatively new in the category. Bandhan and ICICI Prudential schemes were launched in October 2022, and HDFC scheme in August 2023
We do not recommend thematic schemes to individual investors with moderate amounts to invest and not used to ups and downs in the market. Thematic schemes meant for experienced investors with large corpus to diversify their portfolio. However, an existing scheme with a proven track record would be a better bet.
