HSBC Multi Cap Fund

Diversified

Hybrid

India Multi Asset

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 Multi Cap Fund Growth invests across all company sizes in India for flexible growth.

What This Strategy Does

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

CW Expert Research Notes

Resilient Downside Protection

The fund has demonstrated resilience across market cycles, outperforming its benchmark in 2 out of the past 12 years, suggesting a focus on downside protection and consistency of outcomes.

Concentrated Conviction Bets

The strategy expresses high-conviction views through concentrated sector tilts, including overweights in industrials and financials, complemented by select high-conviction stock stories that differentiate the portfolio.

Earnings Delivery Potential

With a tilt towards cyclical sectors poised to benefit from the capex revival and earnings upgrades, the fund could participate in the next leg of the earnings cycle if the macro thesis plays out.

Performance and Risk Analysis

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

Fund Performance

3.5% AnnuallyAlpha

+0.0% vs +0.0% benchmarkSince Inception

+0.0% vs +0.0% benchmark3Y Annualized

+0.0% vs +0.0% benchmark5Y Annualized

HSBC Multi Cap Fund

Benchmark Index

Benchmark Performance Comparison

Hsbc Multi Cap Fund

NIFTY 50

Risk Profile

Standard Deviation18.7%

Maximum Drawdown-19.4% | Oct 2024

Sharpe Ratio0.06

Beta0.97

Upside Capture111%

Detailed Risks

Market Risk

Potential recession driven by high inflation could dampen consumer demand, impacting mid-cap holdings.

Liquidity Risk

Volatility spikes could impair exits from mid-cap positions, mitigated by large-cap weighting.

Concentration Risk

Concentrated mid-cap exposure amplifies sector risks like regulatory changes impacting key holdings.

Specific Strategy Risk

Mid-cap earnings misses or competitive pressures could impair scaling, mitigated by monitoring.

Strategy Details

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

Core Investment Theme

Delivers flexibility that matters during market transitions. By investing across capitalizations without constraints, this approach allows fund managers to rotate capital toward the best risk-reward opportunities—whether that's defensiveness in large caps during uncertainty or growth capture in smaller companies during expansions. This adaptability can 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 across cyclical sectors like consumer discretionary and industrials offer an attractive entry point. However, risks such as margin pressures and competitive dynamics warrant a balanced approach.

Why This Strategy is Attractive Now

This strategy seems well-positioned to capitalize on the evolving market landscape. With exposure to consumer cyclicals, financials, and technology leaders, the portfolio of around 70 holdings offers diversification. A moderate beta and flexibility to adapt to changing conditions could provide a risk-adjusted return profile aligned with the recovery.

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 relative to their growth prospects.

Why it Makes Sense

A Quality Growth approach appears well-suited in the current environment, where earnings visibility and pricing power are critical amid moderating economic growth and elevated input costs.

High-Level Investment Process

Sourcing: The strategy appears to focus on companies with sustainable competitive advantages, strong balance sheets, and the ability to compound earnings through cycles. Selection: The process likely emphasizes qualitative factors such as management quality, competitive positioning, and secular growth drivers, balanced with valuation discipline. Construction: Portfolio construction is consistent with a focus on risk management through diversification and position sizing aligned with conviction levels.

Portfolio Holdings Overview

SectoralAllocation

Financial Services25.84%

Utilities1.7%

Capital Goods29.63%

Technology4.92%

Services10.43%

Consumers21.81%

Energy & Infra5.67%

Geographic Allocation

Domestic100%

Top Stock Holdings

CompanySectorAllocation

TrepsUtilities3.86%

Reliance Industries LtdEnergy & Infra3.17%

State Bank of IndiaFinancial Services2.86%

HDFC Bank LtdFinancial Services2.63%

TD Power Systems LtdCapital Goods2.48%

The Federal Bank LtdFinancial Services2.34%

GE Vernova T&D India LtdCapital Goods2.25%

BSE LtdFinancial Services2.00%

ICICI Bank LtdFinancial Services1.88%

Apar Industries LtdCapital Goods1.86%

Fund House Management

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

Fund Manager Track Record

Venugopal Manghat

Mr. Venugopal Manghat has experience of 31 years. Manages 24 funds at HSBC Asset Management (India) Private Ltd with an AUM of approximately ₹21,544 Cr Holds a B.S.C degree.

54 years

Combined Team Experience

₹ 53,676 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.

Mahesh Chhabria

Co-Portfolio Manager

Mr. Mahesh Chhabria has experience of 16 years. Manages 112 funds at HSBC Asset Management (India) Private Ltd with an AUM of approximately ₹5,341 Cr Holds a M.M.S degree.

CW Expert Take

HSBC AMC brings institutional rigour to focussed investing. Their strength lies in process consistency, whether managing large-cap equity or credit strategies, they maintain disciplined frameworks that have weathered multiple market cycles. The fund house benefits from deep research capabilities and a stable investment team that translates macro insights into portfolio positioning.

Investment Philosophy & Approach

Disciplined Approach

HSBC Asset Management follows a disciplined investment approach focused on risk management.

Research-Driven Process

The fund house employs rigorous research to construct high-conviction portfolios.

Long-Term Mindset

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)2.22%

Exit Load1

Regulatory & Tax Information

INF336L01QQ8

ISIN

DailyDealing Frequency

Nifty 500 Multicap 50:25:25 TR INRBenchmark

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

STCG | <1Year 20%%

Tax Implications (India)