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Puneinvest > Blog > Fund Reviews > NFO – HSBC Multi Cap Fund
Fund Reviews

NFO – HSBC Multi Cap Fund

Last updated: 2023/03/07 at 4:38 PM
Rajendra Todkar Published January 13, 2023
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hsbc multi

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.

Contents
Investment StrategyBasic Concept of HSBC Multi Cap FundLarge Cap >= 25%Mid Cap >= 25%Small Cap >= 25%Flexible <= 25%Definition of Large, Mid & Small Cap Stock Large Cap StocksMid Cap StocksSmall Cap StocksConclusion

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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NFOHSBC Multi Cap Fund
NFO Open Date10 Jan 2023
NFO Close Date24 Jan 2023
Re-open3 Feb 2023
BenchmarkNifty 500 Multicap 50:25:25 TRI
Fund ManagerVenugopal Manghat (For Domestic Equity)
Kapil Punjabi (Fixed Income)
Sonal Gupta (Overseas investment)
Exit Load1% 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.

Large Cap >= 25%

Large Caps are relatively stable with a lower downside risk and equipped to deliver better risk adjusted performance

Mid Cap >= 25%

Mid Caps companies have better growth potential at reasonable valuations with potential to generate relatively higher performance

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OnePlus [CPS] Many Geos

Small Cap >= 25%


Emerging businesses with an opportunity to generate higher Alpha

Flexible <= 25%

Flexibility to go overweight through dynamic exposure within the market caps or invest in Debt Securities & Money Market instruments

Definition of Large, Mid & Small Cap Stock

Large Cap Stocks

* Top 100 stocks
* Highly Liquid in Market
* Evolved businesses with track record

Mid Cap Stocks

* 101 to 250 stocks
* Emerging Businesses
* Potential Large Cap of Tomorrow
* Moderately Liquid
* High Growth Potential

Small Cap Stocks

* Beyond 250th stocks
* Great Growth Potential
* High Volatility & Low Liquidity

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.

Oppo India [CPS] IN
HSBC CC [CPA] IN
TAGGED: HSBC Mutual Fund, Multi Cap Fund
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By Rajendra Todkar
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Rajendra Todkar is an experienced finance, investment, and insurance writer with a passion for educating readers about personal finance and helping them make informed decisions. With over 15 years of dedicated experience in the field, Rajendra Todkar has established a strong reputation for providing valuable insights and practical advice.
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