Market sources told Moneycontrol that since the number of stocks and investment options are limited, a reasonable inflow in its NFO period will suffice for the fund.
Being the first defence sector Indian mutual fund, the offering may see high investors interest. Still, HDFC Defence fund is not for meant for naïve investors. Only savvy investors may consider exposure and too in a staggered manner.
The main rationale behind the scheme is that different asset classes tend to perform differently depending on economic cycles, global scenarios, and geo-political events.