Kolkata: One of the most prominent asset management funds of India, HSBC Mutual Fund, has launched and NFO (New Fund Offering) titled HSBC Financial Services Fund, which, as the nomenclature implies, will focus on the financial services sector, which is one of the sectors with huge promise as India strives for faster growth. The NFO has opened for subscription on February 6 and is set to close on February 20.
As informed by the management, HSBC Financial Services Fund will invest in stocks of all intermediaries in India’s financial services sector — banks, NBFCs (non-banking financial institutions), stockbroking firms, AMCs (asset management companies), depositories, credit rating agencies, insurance providers, fintech firms, and investment banking entities.
Higher mix of mid and small-cap stocks
The objective of the mutual fund scheme is to generate long-term capital appreciation by investing in equity and equity-related securities of companies that are active oin the financial services sector. India’s economic expansion augurs well for high growth of the country’s financial sector. There will be a higher mix of mid and small cap stocks versus the benchmark, the NFO literature has stated.
“India’s GDP is projected to grow 8.8 times from its current $3.4 trillion to $30 trillion by 2047. The financial sector is expected to grow at twice this pace, supporting the country’s Viksit Bharat 2047 vision,” said Kailash Kulkarni, CEO of HSBC Mutual Fund. “We aim to generate long-term alpha through disciplined stock selection, company analysis, and portfolio monitoring. We will consider multiple factors, including industry trends, financial strength, management quality, and valuations,” mentioned CIO-Equity of the AMC Venugopal Manghat.
Key features of HSBC Financial Services Fund
NFO opened on: February 6, 2025
NFO to close on: February 20, 2025
Type: Open ended equity-oriented
Degree of risk: Very high risk on risk-o-meter
Benchmark index: BSE Financial Services Index TRI
Fund manager: Gautam Bhupal
Who is the fund suitable for?
As stated by the management, the HSBC Financial Services Fund is suitable for investors who seek to create wealth over long term by investing predominantly in equity and equity-related securities. However, the AMC management has also stated that it always advisable to speack to personal investment experts before commiting funds.
HSBC Mutual Fund is one of the most prominent AMCs in India. It has more than Rs 1.25 lakh crore (AUM) assets under management under its belt till December 31, 2024 and has presence in 64 locations across Indian cities. HSBC AMC manages as many as 44 open ended funds in a variety of segments such as equity funds, debt funds, hybrid funds, index funds and FoF (fund of funds) till Q3 of the current financial year.
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As India plans for faster growth in the coming years and strives for achieving a developed nation status by 2047, financial services is a sector that stands too gain from the advances planned by the country’s policymakers. Against this backdrop, HSBC Mutual Fund has launched HSBC Financial Services Fund to tap into this promise. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
