HSBC MUTUAL FUND LAUNCHES NEW FUND OFFER (NFO) HSBC India Export Opportunities Fund
(An open ended equity scheme following export theme)
HSBC Mutual Fund today announced the launch of HSBC India Export Opportunities Fund, an open ended equity scheme following the export theme. The new fund offer (NFO) opens on September 5, 2024, and closes on September 19, 2024.
The HSBC India Export Opportunities Fund ("the Scheme") aims to generate long-term capital growth from an actively managed portfolio of equity and equity related securities of companies engaged in or expected to benefit from export of goods or services. The scheme has the flexibility to invest in companies that are part of the exports theme across market capitalization – large cap, mid cap and small cap companies. The scheme will track Nifty 500 Total Return Index (TRI).
The scheme will be managed by Abhishek Gupta (Equity), Senior Vice President, Equities, HSBC Mutual Fund and Sonal Gupta (Overseas Securities), Head Research Equities, HSBC Mutual Fund.
Investment Approach:
The HSBC India Export Opportunities Fund is a unique offering in the industry having a differentiated allocation structure. This thematic fund aims to capture the growth in exports.
- The fund aims to invest 80% to 100% of the total assets in Equities & Equity related securities of companies engaged in or expected to benefit from export of goods or services.
- The fund intends to invest predominantly in Equities and Equity Related Securities of companies from the sectors/industry having exports revenue more than 20% from outside India.
- The fund also has flexibility to invest up to 20% of total assets in other equity and equity related securities.
Sectors that the fund aims to invest includes:
- Manufacturing - Automobiles & Auto components, Industrial products and manufacturing, Electrical equipment, Pharmaceuticals & Biotechnology, Chemicals, Textiles & Apparels, Construction, Agricultural food and other products, Petroleum products, Metals
- Services - IT software and services, Telecom services, Transport services, Healthcare services
The above list of sectors / industries may change over time based on the company disclosures.
The fund will take exposure to companies that are likely to involve themselves in the following activities:
1. Export goods manufactured in India that have the potential to increase employment.
2. Benefit from the government's policy and reforms towards exports as a sector.
3. Leverages India's cost benefit arbitrage in services, ease of doing business and highly skilled talent pool.
4. Assist in promoting inbound tourism or providing cost-effective world-class healthcare facilities.
The above list is indicative and the Fund Manager may add such activities that satisfies the above exports theme.
For more details refer SID of the scheme.
Commenting on the launch, Kailash Kulkarni, CEO, HSBC Mutual Fund, said, "The Indian government's ambitious target to achieve $2 trillion in annual exports by 2030 underscores the nation's commitment to expanding its international trade footprint. With our strength in skilled labour, and the focus on supply chain diversification along with reforms and incentives enhances our competitive edge in the global markets. Exports is an ever-evolving opportunity for the country, helping businesses improve productivity and efficiency; and build forex reserves for the country. Overall, India is well positioned to leverage this potential, supporting economic development, and fostering growth."
Venugopal Manghat, CIO-Equity, HSBC Mutual fund, said, "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."
HSBC Mutual Fund has over Rs. 1.24 lakh crore assets under management (AUM*) as of on 31 July 2024. With a footprint at 64 locations across cities, the company offers comprehensive and tailored solutions with over 43 open ended funds including equity funds, debt funds, hybrid funds, index funds and fund of funds.
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