HSBC Mutual Fund Launches Financial Services Fund to Capitalize on Sectoral
HSBC Mutual Fund has announced the launch of the HSBC Financial Services Fund, an open-ended equity scheme to seek opportunities available in the financial services sector. The New Fund Offer or NFO is scheduled to open its gates for subscription from February 6, 2025, and will be open till February 20, 2025.
The scheme aims to seek long-term capital appreciation by investing in equity and equity-related securities of companies that operate within the financial services industry. In regard to investment strategy, it shall include both lending as well as non-lending segments; thus, it shall offer wide coverage to all kinds of financial entities.
The portfolio of the fund is likely to comprise banks, non-banking financial companies (NBFCs), stockbroking firms, asset management companies, depositories, credit rating agencies, insurance providers, fintech firms, and investment banking entities. This diversified mix will help the scheme tap into the growth potential of the sector and offer investors a chance to reap the benefits of India’s growing financial landscape.
Investment Approach and Benchmark
The fund will be managed by Gautam Bhupal, Senior Vice President, Fund Management – Equities, HSBC Mutual Fund. The approach will be quite structured and disciplined in terms of stock selection, company analysis, and portfolio monitoring. Industry trends, financial strength, management quality, and valuations will also be considered from multiple angles.
The BSE Financial Services Index TRI has been selected as the benchmark for the fund, aligning it with the key industry trends and performance metrics.
Sector Growth and Economic Outlook
Given that the focus of the economic expansion of India is now set, the financial sector is going to grow at twice the pace of that of the overall economy. Estimates are such that India’s GDP could expand from $3.4 trillion to $30 trillion by 2047. Given this, the financial services sector is sure to play a very important role in the country’s transformation and development.
HSBC Mutual Fund’s Reach and Market Share
HSBC Mutual Fund currently administers an amount of Rs.1.25 lakh crore by December 31, 2024. The Company is present at 64 locations in India. It has designed 44 open-ended funds, these funds being equity, debt, hybrid, and index funds.
With this sector-specific scheme, HSBC Mutual Fund aims at making investors tap the rapidly emerging opportunities in the landscape of the Indian financial services sectors through a structure of systematic investments for creating wealth over a period of time.
