HDFC Manufacturing Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

HDFC Manufacturing Fund Direct Growth Plan has a NAV of ₹12.234 as of 10 Sep 2026 and a scheme AUM of ₹10,751 Cr. Its 1-year, 3-year and 5-year returns are 8.68%, 0% and 0% respectively, and the fund sits in the High Risk category. Our view is that this is a thematic equity option where the current short-term return profile is better than the benchmark, but the longer track record is still limited because the fund was launched in May 2024.

The portfolio is built around manufacturing-linked names across healthcare, energy, autos, metals and capital goods. That mix can give the fund strong participation in cyclical moves, but it can also make outcomes uneven from one phase of the market to another.

Quick facts

Particular	Details
NAV	₹12.234 as of 10 Sep 2026
AUM	₹10,751 Cr
Expense Ratio	0.8%
Launch Date	16 May 2024
Min SIP	₹100
Risk Category	High Risk
Benchmark	Nifty 50
Fund Category	Equity
Exit Load	1% on or before 1M, Nil after 1M
Fund Managers	Rakesh Sethia

The fund is managed by Rakesh Sethia.

Source data date: as of 10 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-1.35%	-4.06%
3M	9.26%	1.37%
1Y	8.68%	-7.31%
3Y	Data not available	Data not available
5Y	Data not available	Data not available

The most recent return pattern is constructive. Over 1 month, the fund declined less than the benchmark, and over 3 months it moved ahead by a clear margin. That tells us the strategy has handled the latest phase of market movement better than the index, even though the path has not been smooth.

The 1-year figure is more important here because it is the only full-period return available for a fund launched in 2024. At 8.68%, the fund is positive while the benchmark is negative at -7.31%, which means the fund has outpaced the benchmark over the measured year. That relative strength matters more than the absolute number for a new thematic strategy.

The time pattern is still uneven. The recent improvement follows a weaker stretch in the broader 1-year path, so we would not read the current momentum as a straight line. Instead, it points to a fund that can recover when the theme is in favour, but that may still move around more than a broad-market index.

Longer-horizon returns are not yet available, so the main takeaway is that the short history supports interest in the strategy, but not confidence drawn from a full multi-cycle record.

Source data date: as of 10 Sep 2026

Should you BUY or HOLD HDFC Manufacturing?

A fund's past returns alone don't tell you whether you should buy it today or continue holding it.

The right decision depends on factors such as your current allocation, purchase price, risk profile, investment horizon and the role this fund plays in your overall portfolio.

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Peer comparison

Fund	1Y return	3Y return	5Y return
HDFC Manufacturing Fund Direct Growth Plan	8.68%	Data not available	Data not available
ICICI Pru Strategic Metal and Energy Equity FoF Direct Growth Plan	73.94%	37.12%	Data not available
Motilal Oswal Active Momentum Fund Direct Growth Plan	29.94%	Data not available	Data not available
Kotak Healthcare Fund Direct Growth Plan	29.26%	Data not available	Data not available
HDFC Pharma and Healthcare Fund Direct Growth Plan	28.3%	Data not available	Data not available
SBI Automotive Opportunities Fund Direct Growth Plan	27.13%	Data not available	Data not available

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.

The current fund’s 1-year return is well below the stronger peer numbers shown here, especially the thematic funds that have benefited more sharply from sector momentum. That said, its 3-month result is ahead of the peer set presented, which suggests the latest run has been more supportive than the fuller 1-year comparison.

Because the peer group has no usable 3-year or 5-year figures for most funds, the comparison tilts heavily toward recent performance. On that basis, the current fund looks weaker than the stronger short-list peers over 1 year, but its near-term pattern is more resilient than the longer-year figure alone would suggest. The short-term and longer-term comparisons therefore tell different stories.

Source data date: as of 10 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
Divis Laboratories Ltd.	Healthcare	5.94%
Reliance Industries Ltd.	Crude Oil	4.63%
Mahindra & Mahindra Ltd.	Automobile & Ancillaries	3.72%
Maruti Suzuki India Limited	Automobile & Ancillaries	3.6%
JSW Steel Ltd.	Iron & Steel	3.28%
Tata Motors Limited	Domestic Equities	3.07%
Bharat Electronics Ltd.	Capital Goods	2.47%
Bajaj Auto Limited	Automobile & Ancillaries	2.37%
Hindustan Aeronautics Limited	Capital Goods	2.34%
Cummins India Ltd.	Automobile & Ancillaries	2.11%

The largest holding, Divis Laboratories Ltd., carries a weight of 5.94%, so no single stock dominates the portfolio on its own. The drop from the first holding to the tenth is fairly gradual, which suggests the fund spreads its exposure across several mid-sized positions rather than relying on one or two very large bets.

The top 10 holdings together account for approximately 33.53% of the portfolio, and the fund discloses 63 holdings in total. That combination points to a portfolio that is not narrowly concentrated at the visible top, even though the underlying theme still ties the holdings together. In our view, the displayed names indicate a spread across healthcare, autos, steel, capital goods and energy, which may make the fund sensitive to cyclical turns but not dependent on a single company outcome.

The long tail of holdings is important because it can temper stock-specific risk. At the same time, the theme itself remains a key driver, so the fund may still behave differently from a broad index when manufacturing-linked sectors move in and out of favour.

To see all holdings, visit the HDFC Manufacturing Fund Direct Growth Plan page

Source data date: as of 10 Sep 2026

Who should invest

This fund suits investors who can accept High Risk and are comfortable with a thematic equity strategy that may move sharply when the underlying sectors re-rate. The available return pattern suggests it has done better recently than the benchmark, but the short history means the longer-cycle picture is still incomplete.

An investment horizon of at least 3 to 5 years would be more appropriate than a short holding period, because a manufacturing theme can go through strong and weak phases. The main trade-off is that you are accepting greater volatility in exchange for the possibility of sharper upside when the theme is in favour.

The portfolio mix across autos, healthcare, steel, capital goods and energy may help diversify company-specific risk within the theme, but it does not remove theme risk. So the fund is better suited to investors who understand cyclical equity moves and want a concentrated thematic exposure rather than a plain market tracker.

Tax and exit load

Holding period	Tax rate	Description
Units held less than 1 year	20%	Short-term capital gains tax
Units held more than 1 year	12.5%	Long-term capital gains tax

Exit load: 1% if units are sold within 1 month; nil after 1 month.

Source data date: as of 10 Sep 2026

Frequently asked questions

What is the current NAV of HDFC Manufacturing Fund Direct Growth Plan?
The NAV is ₹12.234 as of 10 Sep 2026.

What are the 1-year, 3-year and 5-year returns?
The fund’s 1-year return is 8.68%, while the 3-year and 5-year returns are Data not available.

How has the fund performed against the benchmark?
The fund’s 1-year return of 8.68% is ahead of the benchmark’s -7.31%, and its 3-month return of 9.26% is also ahead of the benchmark’s 1.37%.

How does it compare with the peer funds shown here?
Its 1-year return is lower than several of the thematic peers shown, while its 3-month return is stronger than the peer set listed here.

What is the minimum SIP amount?
The minimum SIP amount is ₹100.

What is the exit load and who manages the fund?
Exit load is 1% if units are sold within 1 month and nil after 1 month. The fund is managed by Rakesh Sethia.

Bottom line

HDFC Manufacturing Fund Direct Growth Plan has shown a stronger recent run than its benchmark, but the longer-term picture is still too short to treat as settled. Against the peer set shown here, its 1-year return is modest, though the 3-month move is healthier. The fund carries High Risk and uses a portfolio spread across several manufacturing-linked names, which may reduce single-stock dependence while keeping theme risk intact. It suits investors who want thematic equity exposure and can stay patient through uneven phases.

Published on 11 September 2026 at 1:08 PM IST

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RIA disclosure

Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. This review is prepared by Uniapps Investment Adviser Pvt. Ltd. (earlier known as Uniapps Global Research Pvt. Ltd.) under SEBI Registered Investment Adviser registration INA000017639 for general informational purposes and is not personalized investment advice.