HSBC Mutual Fund on January 9, 2023 announced the launch of HSBC Multi Cap Fund. The new fund offering (NFO) will open on January 10, and will close on January 24, 2023.
HSBC Mutual Fund said in a press release that the open-ended equity scheme will aim to provide long-term wealth creation by investment in equity and equity-related securities across market capitalisation in large-, mid- and small-cap stocks.
The fund will have minimum weightage to large-, mid and small caps (minimum of 25 per cent in each) and flexible allocation of balance up to 25 per cent to equity or debt securities and money market instruments.
It will follow the Nifty 500 Multi Cap 50:25:25 TRI Index, HSBC Mutual Fund further announced in the release.
Incidentally, this is the first NFO being launched by HSBC AMC after it acquired L&T AMC.
According to HSBC Mutual Fund, the fund’s investment-strategy will focus on strong businesses with sustainable profitability, higher earnings potential and reasonable valuations. It will also focus on bottom-up stock picking and strong franchises, which will allow it to achieve all-season performance with the combination of large-, mid- and small-cap stocks in the portfolio. Lastly, it will offer relatively more diversification and potential to deliver better risk adjusted performance
HSBC Mutual Fund added that the fund will provide good opportunities through small caps, as they offer valuation discount on account of under-research/under-owned features.
In addition, flexible asset allocation strategy will allow the fund to go overweight on certain market cap in favourable market cycle or debt securities and money market instruments, thus allowing investors to access benefits in multiple market cycles through one fund, the release said.
Kailash Kulkarni, Co-CEO, HSBC Asset Management (India) Private India, says: “With the launch of HSBC Multi Cap Fund, we are providing investors with an opportunity to benefit from investing across large-, mid- and small-cap stocks. With one fund, investors get three benefits: Large-caps offer lower probability of negative returns or limit downside within equities over the long-term, while mid-caps have more potential of delivering high growth, and small-caps offer more probability of delivering high alpha.”
Venugopal Manghat, CIO-Equity, HSBC Asset Management Company India, says, “We stay true to our investment strategy for each scheme and remain consistent with its investment objective. Our investment strategy across schemes follows a more bottom-up approach. We evaluate companies on multiple parameters, such as capital allocation and returns, competitive advantages, business potential, management, profitability and others. We keep the strategy simple and look forward to remain invested for long periods of time for compounding benefit.
