HSBC Mutual Fund announced the launching of an open-ended equity scheme HSBC Multi Cap Fund which is being invested across large-cap, mid-cap, and small-cap stocks. The new fund offer (NFO) of the HSBC Multi Cap Fund will be available on market from 10th January to 24th January 2024.
HSBC lauches multi cap funds
The AMC stated the HSBC Multi Cap Fund was framed in a way to expand wealth creation extensively for the long term through investment in equity and equity-related securities across market capitalization.
As a part of widening market capitalization, the idea was developed for providing long-term wealth creation through the means of investing in equity and equity-related securities.
The multi-cap option adheres to ensure that investors stay invested in multiple sectors, themes, and market capitalizations nevertheless the ray of hope for achieving the investment objective of the scheme is bounded with uncertainty.
The fund will have a minimum weightage to large, mid, and small caps by holding minimum shares of 25% in each, and arranging flexible allocation with a balance of up to 25% to equity or debt securities and money market instruments and thereby pave ways to attain effective diversification.
The minimum subscription amount is Rs 5,000 and in multiples of Rs 1 thence forth and one can make an additional investment of Rs 1,000 per application and in multiples of Rs 1, follow by.
With the above detail, the HSBC multi-cap fund is available in both regular and direct plans and the above subject will have two options as well viz.., Growth and Income Distribution adjoined Capital Withdrawal option (IDCW) with the payout of IDCW and reinvestment of the IDCW sub-option. In addition, systematic transfer plan (STP) and systematic withdrawal plan (SWP) facilities will be applicable only after the plan under the scheme re-opens for continued sale and purchase.
From the point concerning investment strategy, Mr.Venugopal Manghat, CIO- Equity of HSBC Asset Management Company India said, ” We stay committed to our investment strategy for each scheme and remain consistent in achieving objectives.
Our investment strategy sticks to a more bottom-up approach as well as involves evaluating companies on multiple parameters such as capital allocation and returns, competitive advantages, business potential, management, profitability, and others. We are in the process of setting a strategy simple which will enable us to stay invested for long periods for compounding benefit”.
CEO of HSBC Asset Management (India), Mr. Kailash Kulkarni said,
“With the launch of the HSBC Multi cap fund, we promised to provide investors with an opportunity to benefit from investing across the large mid-cap, and small-cap stocks. By investing in a fund, investors will avail of three benefits: Large caps exhibit a lower probability of negative returns within equities over the long term, mid-caps represent more potential of delivering high growth whereas the small caps replicate more probability of delivering high alpha“.
HSBC Multi cap fund will track NIFTY 500 Multicap 50:25:25 TRI as the benchmark and the scheme like other funds will not charge any entry fee.
On the other hand, the mutual fund house charges an exit load due to certain conditions as the exit load is charged by 1% if units are redeemed over and above the limit within one year from the allotment date and the exit load will not be charged in case the units redeemed less than 10% of the units purchases within a year of allotment.
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