HSBC Launches India Export Opportunities Fund with NFO Opened on September 5

HSBC Mutual Fund has introduced the HSBC India Export Opportunities Fund, an open-ended equity scheme focused on the export theme. The New Fund Offer (NFO) will be open for subscription from September 5 to September 19, 2024.

The investment objective of HSBC India Export Opportunities Fund is to achieve long-term capital growth by actively managing a portfolio of equity and equity-related securities of companies involved in, or expected to benefit from, the export of goods or services. However, there is no guarantee that the scheme’s objective will be realised and the scheme does not assure or guarantee any returns.

The scheme will track the Nifty 500 Total Return Index (TRI) and will be managed by Abhishek Gupta and Sonal Gupta. According to the fund house, this thematic fund offers a unique allocation structure designed to capitalise on growth in exports.

The fund will allocate 80-100% of its investments to equities and equity-related securities of export-focused companies, with 0-20% in other equity securities, and 0-20% in debt securities and money market instruments. It also plans to invest 0-10% in units of REITs and InvITs.

According to Venugopal Manghat, CIO-Equity at HSBC Mutual Fund, stocks will be selected based on several factors, including business fundamentals, industry structure, management quality, financial strength, and valuation. The fund’s bottom-up investment approach aims to generate alpha over the medium to long term.

Kailash Kulkarni, CEO of HSBC Mutual Fund, emphasised India’s potential for export growth, with the government targeting $2 trillion in annual exports by 2030. He highlighted the country’s strengths in skilled labour, supply chain diversification, and government reforms, positioning India to leverage its export potential, support economic development, and boost forex reserves.

This fund from HDFC Mutual Fund is suitable for investors who are seeking to create wealth over the long term and are comfortable with the investment predominantly in equity and equity-related securities of companies engaged in or expected to benefit from the export of goods or services. However, investors should consult their financial advisers if they are still determining whether the fund is suitable for them.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.