Transportation and Logistics – Investing in a theme which drives the future of India

In the fast-moving and inter-connected world that we live in today, it is practically difficult to imagine life without Transportation and Logistics. While businesses are often considered the heart of an economy, Transportation and Logistics could be considered its lifeblood. It would be fair to say that this segment keeps the 'wheels' of the economy moving forward.

Within the theme, there are multiple themes at play as under Growth Drivers for this theme Wide array of businesses HDFC Transportation and Logistics Fund

• Varied business cycles: Structural growth opportunities as well as cyclical segments
• Diversity in consumer base: While some businesses cater to luxury segments others cater to economy segments
• Mature businesses as well as start-ups
• Export oriented as well as domestic-focused businesses
• Rural vs Urban focused
• Manufacturing (Auto) + Services (Airlines, Logistics)
• Business to Business- B2B (Commercial Vehicles, Shipping) vs Business to Consumer-B2C (Passenger Vehicles, 2 Wheelers, Airlines)

Growth Drivers for this theme

Wide array of businesses

From an investing standpoint, the wide array of businesses that fall under Transportation and Logistics theme, presents a viable investment proposition for investors.

HDFC Transportation and Logistics Fund

HDFC Transportation and Logistics Fund, which invests at least 80% of its Net Assets in equity and equity related instruments of Transportation and Logistics themed companies, presents a viable investment avenue for investors looking to invest in this space. NFO runs from 28th July 2023 to 11th August 2023.

Investing in thematic funds has its own pros and cons and investors need to be mindful of them. Relatively higher concentration in certain sectors makes thematic funds relatively riskier as compared to diversified funds. On the other hand, low overlap of themes with broader indices provides diversification benefit to investors. Consequently, Investors need to consult a financial advisor and invest in thematic schemes, as per their risk appetite.

To know more, please check the detailed scheme presentation.