HSBC Mutual Fund has announced the launch of its latest offering, the HSBC India Export Opportunities Fund, an open-ended equity scheme focused on the theme of exports. The new fund offer (NFO) will open on 5 September and close on 19 September 2024.
Objectives and strategy of the fund
The new scheme aims to generate long-term capital growth by investing in an actively managed portfolio of equity and equity-related securities. It will focus primarily on companies that are engaged in or are expected to benefit from the export of goods or services. The fund has the flexibility to invest across market capitalisations, including large, mid and small-cap companies.
Benchmark
The scheme will track the Nifty 500 Total Return Index (TRI) as a benchmark.
Fund Manager
Abhishek Gupta will manage the equity portion of the fund, while Sonal Gupta will oversee foreign securities.
Investment approach
HSBC India Export Opportunities Fund will allocate 80-100 per cent in equity and equity-related securities of companies that are involved in or expected to benefit from export of goods or services, 0-20 per cent in other equity and equity-related securities, 0-20 per cent in debt securities and money market instruments (including cash and cash equivalents, liquid and overnight mutual fund units) and 0-10 per cent in units of REITs and InvITs.
Key sectors of investment focus
Manufacturing: automobiles, industrial products, pharmaceuticals, chemicals, textiles and more
Services: Software and IT services, telecommunications, transportation and healthcare.
The fund aims to capitalize companies that:
– Export Indian-made goods with potential to increase employment.
– Benefit from government policies and reforms that support exports
– Leverage India’s cost advantages and skilled talent pool
– Promote inbound tourism or provide cost-effective health facilities
“Stocks will be selected based on multiple criteria including company fundamentals, industry structure, relative strength of the company compared to peers, quality of management, sensitivity to economic factors, financial strength of the company, key earnings drivers and valuation. We believe this, coupled with our bottom-up approach to investing, can help generate alpha over the medium to long term for our prospective investors,” said Venugopal Manghat, CIO – Equities, HSBC Mutual Fund.
First published: September 4, 2024 | 5:00 p.m. IS
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