HSBC Corporate Bond Fund

Bonds

Debt

India High Yield Credit

Others

Aggressive growth Investor Profile

Investor Profile

1–3 yearsInvestment Horizon

HNI, UHNI, Retail Investor, Mass AffluentTarget Segments

SEBI registered equity mutual fund suitable for all investor categoriesRegulatory Fit

Hsbc Corporate Bond Fund Growth invests in corporate bonds, offering higher returns with moderate risk.

What This Strategy Does

HSBC Corporate Bond Gr is an India Fund Corporate Bond strategy which captures India's ₹35 trillion corporate debt market through active duration management, deploying capital across corporate and government bonds to achieve benchmark-aligned compounding.

CW Expert Research Notes

Consistent Outperformance

HSBC Corporate Bond Gr has outperformed its Morningstar category peers over the long term, returning 7% annualized over 10 years versus 5.7% for the category average, demonstrating resilient earnings delivery across cycles.

Concentrated Positioning

The fund's concentrated exposure to the corporate bond segment, with a 61% allocation versus minimal government and securitized debt holdings, reflects a differentiated process versus more benchmark-aware peers.

Valuation Opportunity

With the fund trading at a fair valuation versus history and peers according to Morningstar analysis, the current entry point could represent an attractive risk/reward if the corporate credit cycle remains supportive.

Performance and Risk Analysis

Historical returns, volatility patterns, and how this fund has performed relative to its benchmark.

Fund Performance

-0.8% AnnuallyAlpha

+7.2% vs +9.9% benchmarkSince Inception

+7.1% vs +6.3% benchmark3Y Annualized

+5.9% vs +6.5% benchmark5Y Annualized

HSBC Corporate Bond Fund

Benchmark Index

Benchmark Performance Comparison

Hsbc Corporate Bond Fund

FD Returns

Risk Profile

Standard Deviation1.4%

Maximum Drawdown-0.4% | Mar 2026

Sharpe Ratio-1.22

Beta1.25

Upside Capture94%

Detailed Risks

Market Risk

Potential recession in India could trigger corporate defaults, impacting fund's credit exposure.

Liquidity Risk

Spike in risk aversion could strain liquidity for corporate bonds, hindering rebalancing.

Concentration Risk

Concentrated sector bets amplify downside from regulatory actions or competitive shifts.

Specific Strategy Risk

Credit deterioration among issuers could impair earnings, triggering downgrades or defaults.

Strategy Details

A closer look at the investment thesis, portfolio construction, and current holdings.

Core Investment Theme

Provides exposure to high-quality corporate bonds, offering a stable income stream with moderate credit risk. The fund invests primarily in securities issued by Indian companies across the credit spectrum, with a focus on preserving capital and generating consistent returns.

Broader Market View

Market Outlook

Equity markets appear to be entering a mid-cycle phase, with attractive valuations following the recent correction. Consumption recovery, earnings normalization, and capex revival are expected to drive performance, favoring sectors like consumer discretionary, financials, and industrials. However, risks such as margin pressures and cyclicality warrant a balanced approach.

Why This Strategy is Attractive Now

This strategy seems well-positioned for the current environment, with exposure to consumer cyclicals, financials, and technology. The portfolio holds market leaders across sectors and offers diversification through approximately 70 holdings. A moderate beta and flexibility could allow for risk-adjusted participation in the market recovery while maintaining a balanced profile.

Investment Style & Process

Investment Style

The portfolio exhibits characteristics of a Quality Growth approach, emphasizing companies with durable competitive advantages, consistent earnings growth, and reasonable valuations relative to their long-term potential.

Why it Makes Sense

In the current environment of moderating economic growth and elevated uncertainty, a Quality Growth strategy can offer downside protection while participating in secular growth opportunities across sectors like technology and healthcare.

High-Level Investment Process

Sourcing: The strategy appears to source investment ideas from a broad universe of quality companies across market capitalizations, with a focus on those demonstrating sustainable competitive advantages, pricing power, and strong balance sheets. Selection: The selection process suggests a preference for companies with visible earnings growth trajectories, recurring revenue streams, and attractive valuations relative to their long-term cash flow potential. Construction: Portfolio construction is consistent with a diversified, conviction-weighted approach that balances risk management with the ability to establish meaningful position sizes in high-conviction holdings.

Portfolio Holdings Overview

SectoralAllocation

Financial Services100%

Top Stock Holdings

CompanySectorAllocation

Indian Oil Corporation LimitedUtilities5.32%

Power Grid Corporation Of India LimitedUtilities4.68%

National Bank For Agriculture And Rural DevelopmentUtilities2.94%

Ntpc LimitedUtilities2.90%

6.01% Govt Stock 2030Utilities2.82%

7.04% Govt Stock 2029Utilities2.79%

Ntpc LimitedUtilities2.79%

Small Industries Development Bank Of IndiaUtilities2.59%

Power Finance Corporation LimitedUtilities2.53%

National Highways Authority Of IndiaUtilities2.29%

Fund House Management

The asset management company’s track record, AUM scale, and fund manager credentials.

Fund Manager Track Record

Shriram Ramanathan

Mr. Shriram Ramanathan has experience of 27 years. Manages 93 funds at HSBC Asset Management (India) Private Ltd with an AUM of approximately ₹6,262 Cr Holds a PGDBM degree.

30 years

Combined Team Experience

₹ 12,523 Cr

Assets Under Management

Mohd Asif Rizwi

Co-Portfolio Manager

Mr. Mohd Asif Rizwi has experience of 2 years. Manages 137 funds at HSBC Asset Management (India) Private Ltd with an AUM of approximately ₹6,262 Cr

CW Expert Take

HSBC Corporate Bond Gr applies institutional discipline to fixed income investing. Their investment process emphasizes risk management through rigorous credit analysis and portfolio construction frameworks. The fund house leverages global research capabilities while maintaining local market expertise, seeking to generate consistent risk-adjusted returns across interest rate cycles.

Investment Philosophy & Approach

Disciplined Approach

HSBC Asset Management follows a disciplined investment approach focused on rigorous research.

Risk Management

The fund house emphasizes robust risk management practices across all portfolios.

Long-Term Perspective

HSBC Asset Management maintains a long-term perspective in capital allocation decisions.

Operational & Regulatory Details

What it costs to invest, transaction mechanics, and regulatory disclosures you should know.

Costs and Fees

Total Expense Ratio (TER)0.6%

Exit Load0.5

Regulatory & Tax Information

INF917K01AH0

ISIN

DailyDealing Frequency

CRISIL Corporate Debt A-II TR INRBenchmark

Capital Gain Tax | Taxed as per Income Tax Slab

Tax Implications (India)