HSBC Mutual Fund to launch mid-cap fund; details here

HSBC Mid-Cap Fund will seek long-term capital growth primarily from an actively managed portfolio of equity and equity-related securities of mid-cap companies.

The fund, which will open on September 6 and close on September 20, will follow the Nifty Mid Cap 150 Index Total Return Index benchmark, and will be managed by Ankur Arora.

Talking about the fund’s investment strategy, Ankur Arora, Senior Vice President and Fund Manager, HSBC AMC said, “HSBC Mid Cap Fund aims at prudential exposure to stock ideas through bottom-up implementation of stock ideas and top-down approach. To build a focused portfolio. Control. The fund will explore opportunities in innovative disruptive discipline and is expected to benefit from the creation of a new portfolio that is at the beginning of the expansion cycle.”

The scheme will have the facility to invest in large-, mid- and small-cap companies, but at least 65% will be invested in mid-cap companies.

The fund will explore opportunities in an expansionary theme that supports mid- and small-cap companies to generate alpha.

According to the fund house, the scheme will follow a ‘4Q’ investment approach while identifying opportunities: quality of business; management quality; earning quality; and the amount of earnings.

Commenting on the launch of the fund, Ravi Menon, Chief Executive Officer, HSBC AMC, said, “We believe that mid-caps provide a more diversified universe for investment and quality investment opportunities with current emerging themes. provides. With a quality portfolio, we are confident that HSBC Mid-Cap Fund will be a healthy addition to a client’s portfolio for long-term compounding.”

There shall be an exit load of 1% on redemption or switch-out of units within one year of allotment and nil thereafter.

There are more than 20 active funds available in the mid cap category in India. HDFC is the largest fund in the mid-cap opportunities category with a net worth of . More than ₹30,000 crore, followed by Kotak Emerging Equity with net assets of approx. ₹15,000 crores.

In the past one year, most of the equity funds have given good returns due to the sharp jump in the markets.

The mid-cap category has given an average return of around 66 per cent over a period of one year. However, experts warn that investors should not have similar expectations going forward.