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HDFC Housing Opportunities Fund - Series 1

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About the scheme

  • Name of the Plan: HDFC HOF - I - 1140D November 2017 (1)
  • NFO Opens on: November 16, 2017
  • NFO Closes on: November 30, 2017
  • Scheme category: Close ended Thematic Equity Scheme

Investment Objectives

To provide long-term capital appreciation by investing predominantly in equity and equity related instruments of entities engaged in and/or expected to benefit from the growth in housing and its allied business activities.


First, in general, NFOs are not good because they put the advertising and scheme launch expense burden on the heads of investors. NFOs tend to be good and worthy only when they are very unique and address the financial goals of the investor. Most NFOs are generally not worthy taking. Read and understand what a New Fund Offer is all about.

Secondly, it is a thematic fund. Investing in thematic fund requires expert knowledge in entry and exit. If timing is not right, we do not get the best possible returns. Unfortunately, we retail investors do not have that precise abilities to identify and switch. Generally, sectoral themes keep shifting from one to another. A Top 1 sector of one year may or may not be at the same position the very next year.

Read as to to why to avoid sectoral and thematic funds?

Thirdly, it is a close-ended fund. This means that we cannot redeem and exit until the completion of tenure. Why get our investment locked with the theme for such long duration? It is better to use an open-ended multicap scheme over a close-ended thematic scheme.

Even though the scheme gets listed on the stock exchanges, the volumes for such investments will be very low. My feeling, having looked at past such scheme is that there will be little or now volumes at all and you have to struggle to offload them, that too at a lower price, when you need them.

Some good diversified multicap funds that might be useful in the present market context include Motilal Oswal Focussed Multicap 35, Aditya Birla Sunlife Equity Fund among others.

More on this is at Open-ended, Close-ended and Interval schemes


  1. If as projected, if the housing theme perfoms well, we get exceptionally good returns.
  2. If the theme does not play well, we get very subdued returns.
  3. Since markets are at peaks, better to go with established schemes in multicap segment than to test new uncharted waters.
  4. The scheme is suitable only for investors who can take a higher degree of risk taking than the average and medium risk takers.

Related Lessons

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