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 export theme. The New Fund Offer (NFO) is set to open on September 5, and will close on September 19, 2024.
Fund objectives and strategy
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 primarily target companies engaged in or expected to benefit from the export of goods or services. The fund has the flexibility to invest across market capitalizations, including large, mid, and small-cap companies.
Benchmark
The scheme will track the Nifty 500 Total Return Index (TRI) as its benchmark.
Fund manager
Abhishek Gupta will manage the equity portion of the fund, while Sonal Gupta will oversee overseas securities.
Investment approach
HSBC India Export Opportunities Fund will allocate 80-100 per cent in equities and equity-related securities of companies engaged in or expected to benefit from the 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, units of liquid and overnight mutual funds), and 0-10 per cent in units of REITs and InvITs.
Key sectors targeted for investment
Manufacturing: Automobiles, industrial products, pharmaceuticals, chemicals, textiles, and more
Services: IT software and services, telecom, transport, and healthcare
The fund aims to capitalise on companies that:
– Export goods manufactured in India with potential for increased employment
– Benefit from government policies and reforms supporting exports
– Leverage India’s cost advantages and skilled talent pool
– Promote inbound tourism or provide cost-effective healthcare facilities
“Stocks will be selected taking into consideration multiple criteria including fundamentals of the business, industry structure, relative business strength amongst peers, quality of the management, sensitivity to economic factors, financial strength of the company, key earnings drivers, and valuation. We believe that this, along with our bottom-up approach to investing may help in creating alpha over the medium to long-term for our prospective investors,” said Venugopal Manghat, CIO-Equity at HSBC Mutual Fund.
First Published: Sep 04 2024 | 5:00 PM IST
