HSBC Mutual Fund announce the launch of HSBC Multi Cap Fund, an open-end equity scheme investing across large cap, mid cap and small cap stocks.
The new fund offering (NFO) opens on 10th January 2023 and closes on 24th January 2023. The HSBC Multi Cap Fund aims to provide long-term wealth creation by investment in equity and equity related securities across market capitalization.
The fund will have minimum weightage to large, mid and small caps (minimum of 25% in each) and flexible allocation of balance up to 25% to equity or debt securities and money market instruments.
Given this structure, the fund has the potential to offer effective diversification.
With HSBC Multi Cap Fund, the first NFO post the acquisition of L&T AMC and schemes of L&T Mutual Fund by HSBC Asset Management (India) Private Ltd (HSBC AMC), HSBC Mutual Fund now offers funds in most of the categories as per the Securities and Exchange Board of India’s classification of mutual fund schemes under the regulations on categorization and rationalization of mutual funds.
HSBC Securities and Capital Markets (India) Private Limited holds 100% of the paid-up equity share capital of HSBC AMC.
On and from the close of business hours on 25th November, 2022 (“Completion Date”), the schemes of L&T Mutual Fund were transferred to and forms part of HSBC Mutual Fund
(“HSBC MF”) and the HSBC AMC and its nominees had acquire the entire share capital of L&T AMC from L&T Sponsor and its nominees.
HSBC Mutli Cap Fund will be manage by Venugopal Manghat, CIO—Equities, Sonal Gupta, Head of Research—Equity, and Kapil Punjabi, Senior Vice President and Fund Manager— Fixed Income for Domestic equities, overseas investments and fixed income investments respectively by the Scheme.
The fund’s unique investment-strategy will:
- Focus on strong businesses with sustainable profitability, higher earnings potential and reasonable valuations
- Focus on bottom up stock picking and strong franchises—enable to achieve all season performance with the combination of large, mid and small caps in the portfolio
- Offer relatively more diversification and potential to deliver better risk adjusted performance
The benefits and features of HSBC Multi Cap Fund include:
Kailash Kulkarni, Co-CEO, HSBC Asset Management (India) Private India, Said :
“With the launch of HSBC Multi Cap Fund, we are providing investors with an opportunity to benefit from investing across large cap, mid cap 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, 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, Said :
“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.
