HSBC Flexi Cap Fund

All Cap

Diversified

Equity

India Defensive

Others

Aggressive growth Investor Profile

Investor Profile

1–7 yearsInvestment Horizon

HNI, UHNI, Retail Investor, Mass AffluentTarget Segments

SEBI registered equity mutual fund suitable for all investor categoriesRegulatory Fit

Hsbc Flexi Cap Fund - Growth invests across all company sizes in India for flexible growth.

What This Strategy Does

HSBC Flexi Cap Fund is an equity flexi-cap fund which captures India's broad-based earnings growth opportunity through a multi-cap portfolio construction approach, deploying capital across technology, financials, and consumer sectors to achieve benchmark-aligned compounding.

CW Expert Research Notes

Benchmark-beating Consistency

The fund has outperformed its benchmark S&P BSE 500 India Index in 6 out of the past 12 years, demonstrating resilient earnings delivery and downside protection characteristics.

High Volatility Tilt

The fund exhibits a consistent overweight to the volatility factor, investing in stocks with a history of higher standard deviation of returns compared to category peers, contributing to stronger bull market performance at the cost of larger drawdowns.

Valuation Opportunity Potential

With a below-average fee hurdle and the potential for improved performance under the new management team, the fund could offer an attractive valuation opportunity if the process enhancements lead to better risk-adjusted outcomes.

Performance and Risk Analysis

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

Fund Performance

0.5% AnnuallyAlpha

+0.0% vs +0.0% benchmarkSince Inception

+0.0% vs +0.0% benchmark3Y Annualized

+0.0% vs +0.0% benchmark5Y Annualized

HSBC Flexi Cap Fund

Benchmark Index

Benchmark Performance Comparison

Hsbc Flexi Cap Fund

NIFTY 50

Risk Profile

Standard Deviation15.0%

Maximum Drawdown-19.6% | Oct 2024

Sharpe Ratio-0.47

Beta0.98

Upside Capture108%

Detailed Risks

Market Risk

Potential recession driven by high inflation could dampen consumer demand, impacting fund's cyclical exposure; mitigated by flexi-cap mandate allowing defensive rotation.

Liquidity Risk

Significant mid-cap allocation could face liquidity stress during volatility spikes, hindering rebalancing; partially offset by large-cap buffer and cash reserves.

Concentration Risk

Concentrated bets in consumer discretionary or financials could amplify losses if rising rates dent consumption; diversification across sectors limits downside.

Specific Strategy Risk

Regulatory tightening on lending practices could pressure bank holdings; rigorous bottom-up research identifies emerging risks and opportunities.

Strategy Details

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

Core Investment Theme

Delivers flexibility to capitalize on opportunities across the market-cap spectrum. By investing without constraints, this approach allows fund managers to rotate capital toward the best risk-reward prospects—whether defensiveness in large caps during uncertainty or growth capture in smaller companies during expansions. This adaptability aims to smooth portfolio returns across varying market conditions.

Broader Market View

Market Outlook

Equity markets appear to be entering a recovery phase following the recent valuation correction. Consumption trends and earnings normalization, supported by a revival in capex and credit growth, are aligning with the strategy's tilt towards consumer, financial services, and technology sectors. While competitive pressures and margin cyclicality remain risks, the present environment offers an attractive entry point.

Why This Strategy is Attractive Now

The strategy seems well-positioned to capitalize on the current market dynamics. Its balanced exposure across consumer cyclicals, defensives, financials, and technology appears aligned with key beneficiaries of the unfolding recovery. The portfolio's diversification across around 70 holdings, including market leaders, coupled with its moderate beta and risk-adjusted approach, could allow for flexibility and stability through this cycle.

Investment Style & Process

Investment Style

The portfolio exhibits characteristics of a Quality Growth strategy, emphasizing companies with durable competitive advantages, consistent earnings growth, and reasonable valuations.

Why it Makes Sense

In the current environment of moderating economic growth and elevated uncertainty, a Quality Growth approach offers exposure to resilient businesses with pricing power and sustainable growth trajectories.

High-Level Investment Process

Sourcing: The strategy appears to favor companies with strong franchises, healthy balance sheets, and attractive growth runways across a range of sectors. Selection: The process suggests a preference for businesses with defendable market positions, robust profitability, and reasonable valuations relative to growth prospects. Construction: Portfolio construction is consistent with a focus on diversification across sectors and market capitalizations while maintaining a bias towards quality growth characteristics.

Portfolio Holdings Overview

SectoralAllocation

Consumers18.8%

Capital Goods22.69%

Energy & Infra5.54%

Financial Services29.82%

Utilities3.24%

Services9.05%

Technology10.86%

Geographic Allocation

Domestic100%

Top Stock Holdings

CompanySectorAllocation

HDFC Bank LtdFinancial Services4.39%

ICICI Bank LtdFinancial Services4.21%

Reliance Industries LtdEnergy & Infra3.40%

Bharti Airtel LtdServices2.47%

TrepsUtilities2.44%

Infosys LtdTechnology2.41%

State Bank of IndiaFinancial Services2.22%

Multi Commodity Exchange of India LtdFinancial Services2.20%

Axis Bank LtdFinancial Services2.18%

Hindalco Industries LtdCapital Goods2.13%

Fund House Management

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

Fund Manager Track Record

Abhishek Gupta

Mr. Abhishek Gupta has experience of 16 years. Manages 28 funds at HSBC Asset Management (India) Private Ltd with an AUM of approximately ₹5,248 Cr Holds a B.Com degree.

23 years

Combined Team Experience

₹ 32,039 Cr

Assets Under Management

Mayank Chaturvedi

Co-Portfolio Manager

Mr. Mayank Chaturvedi has experience of 6 years. Manages 126 funds at HSBC Asset Management (India) Private Ltd with an AUM of approximately ₹26,791 Cr Holds a B.Com degree.

CW Expert Take

HSBC Flexi Cap Fund brings a flexible, multi-cap approach to equity investing. Their investment philosophy centers on identifying quality businesses across market capitalization segments, with a focus on sustainable growth and reasonable valuations. The fund house leverages extensive research capabilities, combining top-down macro views with rigorous bottom-up analysis to construct high-conviction portfolios. While maintaining a core large-cap bias, the strategy actively allocates across market caps to capitalize on emerging opportunities.

Investment Philosophy & Approach

Disciplined Approach

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

Risk Management

Risk management is embedded in the investment process through robust portfolio construction.

Long-Term Perspective

The firm maintains a long-term perspective, aiming for consistent risk-adjusted returns.

Operational & Regulatory Details

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

Costs and Fees

Total Expense Ratio (TER)1.95%

Exit Load1

Regulatory & Tax Information

INF336L01AF5

ISIN

DailyDealing Frequency

BSE 500 India TR INRBenchmark

LTCG | >1Year 12.5%% on gain above 1.25 Lakh

STCG | <1Year 20%%

Tax Implications (India)