HSBC Mutual Fund launches HSBC Financial Services Fund

 New Fund Offer (NFO) opens for subscription on February 6, 2025

India, 05 February 2025: HSBC Mutual Fund today announced the launch of the HSBC Financial Services Fund, an open-ended equity scheme investing in the financial services sector. The New Fund Offer (NFO) opens on February 6, 2025, and closes on February 20, 2025.

The financial services sector plays a crucial role in economic growth and development of the country. Driven by increasing financial inclusion, digitalization, and supportive regulatory policies along with the shift towards Indian households channelizing their savings into financial assets, has meant that the sector is on a growth trajectory. The HSBC Financial Services Fund aims to capitalize on the growth opportunities and potential of the financial services sector.

The fund will be managed by Gautam Bhupal, SVP fund management Equities, HSBC Mutual Fund, who has strong expertise in leveraging the depth of opportunities the financial services sector has to offer, thereby providing investors the opportunity to benefit from India’s long-term growth story. This product is suitable for investors who are seeking to create wealth over the long term.

Investment Approach:

• The aim of the scheme is to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related securities of companies engaged in financial services businesses. The mix will include the traditional lending segments & non-lending segments. The companies in this mix will include:
• Banks & Non-Banking Financial Institutions
• Stock Broking & Allied Entities, Asset Management Company(s), Depositories, Credit Rating Agencies, Clearing Houses and Other Intermediaries
• Financial Technology (Fintech), Exchanges and Data Platforms
• Investment Banking Companies
• Wealth Management Entities
• Distributors of Financial Products
• Insurance Companies – General, Life
• Microfinance, Housing Finance and payment companies
• Companies engaged in the Financial Services sector from Sector list provided by AMFI / SEBI in Industry Classification data or other financial services as identified by Fund Manager, etc.

While the Lending side brings stability, strengthened regulations, and strong balance sheets, the non-lending side has companies with high growth potential, market expansion, and high ROE.

The scheme will track BSE Financial Services Index TRI.

Kailash Kulkarni, CEO, HSBC Mutual Fund, said, “India’s GDP is projected to grow, multiplying by 8.8 times from its current $3.4 tn to $30 tn by 2047, with the financial sector expected to grow 2x of this GDP to help achieve the Viksit Bharat 2047 vision. Within this burgeoning financial landscape, we are witnessing a significant deepening of the non-lending sector, encompassing areas such as capital markets, insurance, deposits & currency management among others. Propelled by technology and an evolving investor mindset, the financial ecosystem has been transformed. Our fund aims to capitalize on these emerging growth prospects.”

Venugopal Manghat, CIO-Equity, HSBC Mutual fund, said, “Our investment approach is aimed at delivering long term alpha through an equity investment process comprising apt stock selection, diligent analysis of companies and portfolio creation and monitoring. 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.”

HSBC Mutual Fund has over Rs. 1.25 lakh crore assets under management (AUM) as of on 31 December 2024. With a footprint at 64 locations across cities, the company offers comprehensive and tailored solutions with around 44 open ended funds including equity funds, debt funds, hybrid funds, index funds and fund of funds as on December 31, 2024.