HDFC AMC launches India’s first Mutual Fund focused on Defence Sector

Current Context: HDFC Asset Management Company Ltd has announced the launch of the country’s first mutual fund focussed on defence sector. The new fund offering (NFO) of HDFC Defence Fund, an open-ended equity scheme, would open on May 19 and close on June.

• The fund will invest at least 80 per cent of its net assets in defence and allied sector companies. Defence and allied sector stocks include stocks forming part of aerospace and defence; explosives, shipbuilding and allied services.
• The fund aims to provide investors an opportunity to participate in the growth potential of this space, as defence expenditure globally is set to increase as countries enhance their defence capabilities.
• The fund’s focus would be on growth and quality at reasonable valuations by investing across large, mid and small cap stocks.

Question:

Q.1 What is the minimum percentage of net assets that HDFC Defence Fund will invest in defence and allied sector companies?
a. 50%
b. 60%
c. 70%
d. 80%