HSBC Mutual Fund today announced the launch of HSBC Multi Cap Fund – an open-ended equity scheme investing across large-cap, mid-cap, and small-cap stocks. The new fund offering (NFO) opens on 10 January 2023 and closes on 24 January 2023. The HSBC Multi Cap Fund aims 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.HSBC Multi Cap Fund is a multi-cap fund that aims to deliver all-season performance with the combination of large, mid, and small caps in the portfolio.
The fund’s unique investment strategy will focus on strong businesses with sustainable profitability, higher earnings potential, and reasonable valuations. Features of the fund include a Flexible asset allocation strategy for part of assets, weighting towards a certain market cap in favorable market cycles, and exposure to debt securities and money market instruments. On investment strategy, Venugopal Manghat, CIO-Equity, HSBC Asset Management Company India, said, “We keep the strategy simple and look forward to remaining invested for long periods of time for compounding benefit.
