· Big opportunities through small caps as they may offer valuation discount on account of under-research/under owned features.
· Flexible asset allocation strategy for part of assets help as fund can go overweight on certain market cap in favourable market cycle or debt securities and money market instruments. This enables the investors to access benefits in multiple market cycles through one fund
Commenting on the launch of the HSBC Multi Cap Fund, Kailash Kulkarni, Co-CEO, HSBC Asset Management (India) Private India, said, “With the launch of HSBC Multi Cap Fund, we are providing investors with an opportunity to benefit from investing across large cap, mid cap and small cap stocks. With one fund, investors get three benefits: Large caps offer lower probability of negative returns or limit downside within equities over the long term, mid caps have more potential of delivering high growth and small caps offer more probability of delivering high alpha.”
On investment strategy, Venugopal Manghat, CIO-Equity, HSBC Asset Management Company India, said, “We stay true to our investment strategy for each scheme and remain consistent with its investment objective. Our investment strategy across schemes follows a more bottom-up approach. We evaluate companies on multiple parameters such as capital allocation and returns, competitive advantages, business potential, management, profitability and others. We keep the strategy simple and look forward to remain invested for long periods of time for compounding benefit.