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HSBC Focused Equity Fund is an open ended equity scheme investing in maximum 30 stocks across market caps (i.e. Multi-Cap). The New Fund Offer (NFO) of the scheme opened for subscription on July 1, 2020 and closes on July 15. The scheme will reopen for continuous transactions on July 29 this year. Here are more details about the scheme.

Investment Strategy

The scheme aims to keep a minimum of 65% of its assets in equity or equity related instruments and the objective is to create long term wealth for its investors. According to the fund’s allocation pattern, it may invest about 0 to 35% of its funds in money market instruments and about 0 to 10% in REITs and INvITs.

Fund Details 

The scheme will invest in 30 stocks across market cap categories. The scheme will have both regular and direct plan options. Both these plans will have Growth option and Dividend option (with dividend payout and reinvestment facilities), all under a common portfolio. 

Invest in direct mutual funds

  • Enjoy 0% commission
  • SIP starting at ₹500

The NFO price has been set at Rs 10 per unit and the units will be offered at NAV prices after reopening. The benchmark index for the fund is S&P BSE 200 TRI. You can find other details about the NFO below.

Name of the FundHSBC Focused Equity Fund 
Type of SchemeAn open ended equity scheme investing in maximum 30 stocks across market caps (i.e. Multi-Cap)
Equity categoryFocused Fund 
BenchmarkS&P BSE 200 (TRI)
NFO DatesOpens on July 1, 2020 and closes on July 15, 2020
ReopenJuly 29, 2020
Fund ManagersNeelotpal Sahai and Gautam Bhupal
Minimum Application Amount/Minimum Purchase AmountRs. 5,000 and in multiples of Re. 1 thereafter
Minimum Additional InvestmentRs 1,000 and in multiples of Re 1 thereafter
Minimum Redemption AmountRs 1,000 and in multiples of Re 1 thereafter
Entry LoadNil
Exit Load1%- If redeemed on or before 12 months
Nil- If redeemed after 12 months
PlansRegular Plan and Direct Plan
OptionsGrowth and Dividend option

Details for SIP Investment in the Fund

Monthly SIPRs. 500/-  for minimum 12 installments
Quarterly SIPRs. 1,500/- for minimum 4 installments

About the Index

The HSBC Focussed Equity Fund is benchmarked against S&P BSE 200 TRI index. The index captures the performance of the top 200 companies listed on the BSE. It has around 201 constituents as of July 2, 2020. 

Also, all mutual funds in India are mandated by Securities and Exchange Board of India (Sebi) to follow the total return index (TRI) version of the benchmark index. A TRI index  takes into account the stock price and the dividend payouts of the stocks while reflecting the final stock price.

About the Fund Managers

1. Neelotpal Sahai

Sahai is serving as the senior fund manager and vice president and equity fund manager at HSBC Global AMC. He has been with the firm since 2013. He has over 25 years of experience in research and fund management, having worked at several organisations before HSBC, namely IDFC AMC Ltd., Motilal Oswal Securities Ltd,among others.  

Sahai has also been managing the following  funds:

  • HSBC Large Cap Equity Fund
  • HSBC Multi Cap Equity Fund
  • HSBC Large and Mid Cap Equity Fund (alongside Amaresh Mishra )
  • HSBC Equity Hybrid Fund (alongside K. A. Ranjithgopal & Kapil Punjabi)

2. Gautam Bhupal

Bhupal has 16 years of experience in the industry. He has been working with HSBC since 2008 when he started working as a fund manager for PMS portfolios. He has been an investment manager and he took on the position of vice president and fund manager in October 2015. Before HSBC, he worked as an equity research analyst with UTI AMC from 2004 to 2008. Gautam also manages the following funds:

  • HSBC Infrastructure Equity Fund
  • HSBC Tax Saver Equity Fund
  • HSBC Regular Savings Fund (alongside Kapil Punjabi )
  • HSBC Managed Solutions India – Growth (alongside Anitha Rangan )
  • HSBC Managed Solutions India – Moderate (alongside Anitha Rangan )
  • HSBC Managed Solutions India – Conservative (alongside Anitha Rangan )

Investors with moderately high risk appetite looking to benefit from long term wealth creation potential of equities with focused approach can consider investing in this fund 

Being a concentrated portfolio, the fund would have moderately higher risk but will also aim to deliver better than benchmark returns by investing in quality companies across market capitalization. The fund will follow a sector agnostic approach and aims to invest in companies which have potential to deliver higher long term growth.

Source : Scheme Information DocumentHSBC Focused Equity Fund

Mutual fund investments are subject to market risks, read all scheme related documents carefully before investing. 

Happy Investing!

Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.

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