HSBC Mutual Fund has announced the launch of a new scheme, HSBC Multi Cap Fund, with a NFO opening on January 10th and closing on January 24th, 2023.
HSBC Multi Cap Fund, will aim to provide long-term wealth creation through investments in equity and equity-related securities of companies across market capitalizations, including large-, mid-, and small-cap stocks.
In compliance with SEBI guidelines, the HSBC Multi Cap Fund will allocate a minimum weightage of 25% each to large, mid, and small cap stocks, with the remaining 25% of the fund's allocation being flexible, allowing for investments in equity or debt securities, as well as money market instruments.
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Investment Strategy
The investment strategy for the HSBC Multi Cap Fund will focus on selecting strong businesses with sustainable profitability, high earnings potential and reasonable valuations.
The fund will employ a bottom-up approach to stock picking, selecting companies with strong franchises, in order to achieve all-season performance through a balanced combination of large-, mid- and small-cap stocks in the portfolio.
This approach is expected to offer relatively more diversification and the potential to deliver better risk-adjusted performance.
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| NFO | HSBC Multi Cap Fund |
|---|---|
| NFO Open Date | 10 Jan 2023 |
| NFO Close Date | 24 Jan 2023 |
| Re-open | 3 Feb 2023 |
| Benchmark | Nifty 500 Multicap 50:25:25 TRI |
| Fund Manager | Venugopal Manghat (For Domestic Equity) Kapil Punjabi (Fixed Income) Sonal Gupta (Overseas investment) |
| Exit Load | 1% unit redeem before 1 Year (10% of unit redeem before 1 year -NIL) |
Basic Concept of HSBC Multi Cap Fund
Multi Cap Fund invest across market caps with defined allocation range
- HSBC Multi Cap Fund with a minimum weight to Large, Mid and Small Caps (25% each) and flexi allocation upto 25% to equity or Debt Securities & Money Market instruments, has potential to offer effective diversification
- A flexible asset allocation strategy for part of assets helps as fund can go overweight on a certain market cap in a relatively favorable market cycle or invest in Debt
- The fund will have an actively run portfolio with focus on bottom-up stock picking, which is rewarding across cycles.
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Definition of Large, Mid & Small Cap Stock
Conclusion
If you are already invested in a multi-cap category of funds, it is important to assess whether the HSBC Multi Cap Fund would add value to your existing portfolio or if it would result in an overlap of investments.
It is also important to consider how this new fund fits into your overall asset allocation strategy.
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