HSBC Mutual Fund launches HSBC Focused Equity Fund

HSBC Asset Management has announced the launch of HSBC Focused Equity Fund (HFEF) – an open-ended equity scheme investing in maximum 30 stocks across market caps. The NFO will open on July 1 and close for subscription on July 15.

According to the pres release shared by the fund house, the fund aims to seek long term capital growth by building a concentrated portfolio of equity & equity related instruments of 30 companies across large-cap, mid-cap and small-cap categories with a sector agnostic approach. HSBC Focused Equity Fund will follow BSE 200 Index TRI Benchmark and will be co-managed by Neelotpal Sahai, Head of Equities, HSBC AMC and Gautum Bhupal, Fund Manager, HSBC AMC.

The scheme will have a concentrated portfolio up to 30 companies across market capitalization. The scheme will be sector and market-cap agnostic.

“We do believe that companies with market leadership, niche product positioning, scale and competitive advantages will tend to benefit more going forward and are likely to outperform across cycles. These current opportunities are sector as well as market cap agnostic in nature. With a concentrated portfolio strategy, we are confident that this fund has the potential to outperform, whilst helping customers to create wealth,” Ravi Menon, CEO, HSBC AMC said.

Talking about the fund’s investment strategy Neelotpal Sahai, Head of Equities, HSBC AMC said, “HSBC Focused Equity Fund aims to build a concentrated portfolio through bottom-up implementation of stock ideas and top down approach for prudent risk control. While investing in a company, the fund will focus on the fundamentals of the business including profitability, industry structure, quality of management, sensitivity to economic factors, financial strength of the company, valuation and key earnings drivers.”


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