HSBC Mutual Fund on Monday (January 9) announced the launch of HSBC Multi Cap Fund, which is an open-ended equity scheme investing across large-cap, mid-cap and small-cap stocks. The new fund offer (NFO) of HSBC Multi Cap Fund will open tomorrow (10th January 2023) and close on 24th January 2023.
In a statement, the AMC said that the HSBC Multi Cap Fund will aim 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.
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HSBC Multi Cap Fund is the first NFO launched 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 is now offering 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 the 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 November 25, 2022 (“Completion Date”),
The schemes of L&T Mutual Fund were transferred to and became part of HSBC Mutual Fund on and from the close of business hours on November 25, 2022.
HSBC Multi Cap Fund will be managed 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.
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The AMC said that the multi-cap fund’s 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
(Disclaimer: The above content is based on a press release issued by HSBC AMC. Mutual Fund investments are subject to market risks. There is no assurance or guarantee that the scheme’s objectives will be met. Please consult your financial advisor before investing)