HDFC Manufacturing Fund Review 2025: Is it for Long Term?
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Do you find yourself asking, "Should I consider the HDFC Manufacturing Fund as part of my long-term strategy for 2025?"
If yes, you have landed on the right post. This expert analysis will double-check this thematic fund on every parameter and help you evaluate whether it's a worthy investment for the long term or not.
The big question lies in, "Why has India's top 3rd HDFC Mutual Fund launched an equity fund a year back?"
The reason behind this is that India's growth in the manufacturing sector is expected to cross milestones in the next seven years.
So, the next heading will cover why it is the right opportunity to invest in this manufacturing-themed fund.
Why is it the Right Time to Invest in a Manufacturing Fund?
The Indian manufacturing sector is all set to cross a milestone in the nation's economic landscape.
According to a report by Colliers (investment management company), India's manufacturing market has the potential to reach USD 1 trillion touchdowns by 2026.
Check out: Why manufacturing funds are trending in the financial market?
Overview of HDFC Manufacturing Fund Review
The fund we are talking about was launched last year on 15th May under the thematic fund category that invests in companies like Tata Motors and Reliance Industries that are engaged in the manufacturing sector of FMCG (Fast-moving consumer goods), machinery, automobiles, etc.
Additionally, it manages a current AUM (Asset Under Management) at Rs.11,597 crores as of 31.03.25.
The good part is that the companies the HDFC manufacturing fund invests in are capable of replacing imported products with locally manufactured goods, supporting the government's initiative of "Made-in-India", which will help in expanding the export of Indian products in the international markets.
Grab your chance and become an early investor, witness our nation becoming the manufacturing hub.
Why is it Worth to Invest in HDFC Manufacturing Fund?
The HDFC manufacturing fund has a unique ideology to pick quality companies by using a bottom-up stock analysis that makes it a worthy investment option.
Rather than following the overall trend, it invests in manufacturing theme-based growth by at least 80% of its holdings and giving promising development to deliver stronger returns.
Likewise, this thematic fund spreads its investments across various sizes of manufacturing companies to lower risk in your portfolio.
This investment style keeps the fund focused and helps minimise potential risks while maximising opportunities within the manufacturing sector's growth, making it a worthy investment for 2025.
Don’t Miss: Top 5 Manufacturing Sector Mutual Funds in India
Where does HDFC Manufacturing Fund Invest?
The HDFC manufacturing fund has allocated its investments across companies in the manufacturing sector, varying in size to balance risk and growth potential.
The graph below shows the market cap allocation of this thematic fund:
The above chart shows that around 73% is invested in large cap stocks, well-known companies that are stable but grow slowly. Around 18% is in medium-sized companies that have more room to grow but come with more risk. The remaining 9% is in small companies, which can grow quickly but are riskier.
Overall, this fund mixes safe, steady investments with some higher-risk options to try to get good growth without too much risk.
What is the Sector Allocation of HDFC Manufacturing Fund?
The HDFC manufacturing fund's sector allocation is smartly diversified amongst potential areas, with maximum allocation being made in the consumer goods sector, standing at 26.81%, and the next major allocation is in the healthcare sector, which is 21.41%.
Let's check with the help of the below graph the distribution among the 5 sectors of this thematic fund:
The fund has invested 19% in the materials and 17.59% in the industrial sectors, which will give this fund good growth.
Moreover, it also invests in growing sectors like energy & utilities and consumer staples at 9.77% and 3.22%, respectively.
Overall, it shows this manufacturing sector mutual fund is heavily invested in goods and services that people buy and consume daily, which means investing in companies engaged in these areas will have ample demand and growth scope for the fund to generate high returns.
Pro Tip: Want to know how much your SIP can grow? Use SIP Calculator now.
HDFC Manufacturing Fund Portfolio Holdings
The portfolio holdings of the HDFC Manufacturing Fund show the percentage allocation to specific companies within the manufacturing sector:
| Company | Holdings (%) |
|---|---|
| Mahindra & Mahindra Ltd. | 6% |
| Sun Pharmaceuticals Industries Ltd. | 6% |
| Maruti Suzuki India Ltd. | 5% |
| Tata Motors Ltd. | 5% |
| Cipla Ltd. | 4% |
Mahindra & Mahindra Ltd. contributes 6% to the Mutual Funds portfolio, underscoring its importance in India's vehicle manufacturing.
Similarly, Maruti Suzuki India Ltd., established in 1981 commands a good 42% share of the Indian passenger car market and receives a 5% allocation from the fund, highlighting its leadership and innovation in the automotive sector.
This reflects the Manufacturing Mutual Funds strategy to invest in leading manufacturers, driving market dominance and innovation.
Who is the Fund Manager of HDFC Manufacturing Fund?
Meet Mr. Rakesh Sethia, Head of Equity at HDFC AMC, has over 15 years of experience in managing funds and equity analysis. With a strong track record, he specialises in sectors like Energy, Telecom, Logistics, Transportation and Consumer Durables.
His 19-year career includes 17 years in equity research, giving him deep expertise in finding opportunities for investors.
HDFC Manufacturing Fund Review on Suitability
The HDFC Manufacturing Fund could benefit from the "Make in India" initiatives that promote local manufacturing and boost India’s exports, potentially creating more jobs. Its a good choice for investors who understand economic trends and want higher returns than regular equity funds.
If you are interested, consider investing through a systematic investment plan for 3 to 5 years to manage risks and maximize growth in the manufacturing sector.
To Conclude HDFC Manufacturing Fund Review
To wrap up the HDFC manufacturing fund review 2025, covered every parameter that dictates that this thematic fund is no doubt a worthy investment for your portfolio. On a value basis, HDFC manufacturing fund NAV (Net asset value) stands at Rs.9.85 as on 06.05.25.
That's not all; the minimum money required to start your SIP in this scheme is Rs.100 only. So, why wait?
Free yourselves from the fear of losing money and grab on to this amazing opportunity to make multi-bagger returns in the next 5 years.
Read the expert’s views on the Best manufacturing funds in India:
1. Is ICICI Prudential Manufacturing Fund a Good Investment?
2. ABSL Manufacturing Equity Fund: 46% Annualized SIP Returns
3. Axis India Manufacturing Fund: What Experts Say About It?
