It will be an open-ended equity fund and Nifty 500 TRI will serve as the benchmark index. It is categorised in the risk-o-meter as “very high”. The NFO is open till September 19, which provides an investor the opportunity to buy a unit at Rs 10.
To achieve high economic growth, Indian economic policymakers are pursuing a three-pronged strategy – attract FDI (foreign direct investment, raise domestic demand/consumption and boost exports, especially through cost-effective skilled labour pool and government reforms.
Long-term capital growth
Improving India’s share in global exports offers plenty of headroom and this is precisely what HSBC India Export Opportunities Fund wants to exploit. The objective of the fund is to generate long-term capital growth through an actively managed portfolio of equity and related securities of companies that earn 20% or more revenue from exports. The fund authorities say that they will invest 80% of the money in 100 such company stocks.
Many sectors to choose from
The sectors where this fund is expected to focus investments include automobiles and auto components, industrial products and manufacturing, electrical equipment, pharma & biotechnology, chemicals, telecom services, IT services and services, textiles and apparel, construction, metals, petroleum products, agricultural food and other products, healthcare services and transport services.
“An increasing number of Indian companies are trying to increase their export earnings. Such a strategy coupled with the government’s drive to go for putting India’s stamp on the global map, will result in a situation where this fund can have a wide array of stocks to choose from,” remarked investment strategist and director, Wishlist Capital, Nilanjan Dey.
While the government projects that Indian exports will rise 2.5 times from $783 billion in 2023 to $2 trillion in 2030, product exports are expected to rise from $441 billion to $1 trillion between the same years, rising by 2.2 times. On the other hand, services exports could rise from $341 billion in 2023 to $1 trillion in 2030, signalling a growth of 2.9 times.
The effort by different businesses all over the world, especially in developed economies, to build resilient supply chains by following a China+1 strategy after the pandemic, could particularly boost Indian exports in the coming years.
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HSBC India Export Opportunities Fund NFO open: India is pushing for all-round growth in exports though the most visible policy push is in the domain of manufacturing. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
