HSBC Mutual Fund has announced the launch of a new fund offering (NFO) for an open-ended scheme focused on multi asset allocation. The fund aims to invest the corpus in equity and equity-related instruments, debt and money market securities and gold/silver ETFs. The NFO will be open for subscription from February 8 to February 22, 2024.
Investment Objective and Strategy
The investment objective of the fund is to generate long-term capital growth by investing in a diversified portfolio of assets across different asset classes. The fund will also aim to reduce volatility and offer diversification by investing across market caps based on prevailing valuation comfort.
The fund will follow a dynamic asset allocation strategy that will vary the exposure to different asset classes based on market conditions, macroeconomic factors and relative attractiveness of each asset class. The fund will use a combination of top-down and bottom-up approaches to select securities within each asset class.
The fund’s typical equity allocation may range between 65% to 80%, debt allocation between 15% to 30% and gold/silver ETFs allocation between 5% to 10%. The fund will invest in equity and equity-related instruments of companies across sectors, market capitalization, themes and styles. The fund will invest in debt and money market securities of various maturities, credit ratings and issuers. The fund will invest in gold/silver ETFs that track the domestic prices of gold/silver.
Fund Details
The fund is suitable for investors who are seeking long-term capital growth with moderate risk appetite and who are willing to invest in a diversified portfolio of assets across different asset classes. The fund has a minimum investment amount of Rs. 5,000 and multiples of Re. 1 thereafter. The fund offers growth and dividend options with payout, reinvestment and sweep facilities. The fund has an exit load of 1% if redeemed or switched out within one year from the date of allotment. The fund has an expense ratio of up to 2.25% for regular plan and up to 1% for direct plan.
The fund will be benchmarked against a customised index comprising of 70% Nifty 50 TRI, 15% Nifty Composite Debt TRI and 15% Domestic Price of Gold. The fund will be managed by Mr. Neelotpal Sahai (Head of Equities), Mr. Sanjay Shah (Head of Fixed Income) and Mr. Gautam Bhupal (Fund Manager – Overseas Investments) from HSBC Asset Management India.
Conclusion
HSBC Mutual Fund’s new offering is a multi asset allocation fund that aims to generate long-term capital growth by investing in a diversified portfolio of equity, debt and gold/silver ETFs. The fund will follow a dynamic asset allocation strategy that will vary the exposure to different asset classes based on market conditions, macroeconomic factors and relative attractiveness of each asset class. The fund is suitable for investors who are seeking long-term capital growth with moderate risk appetite and who are willing to invest in a diversified portfolio of assets across different asset classes.
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