Tuesday, February 6, 2024


(An open-ended scheme investing in Equity & Equity Related instruments, Debt & Money Market Securities and Gold / Silver ETFs)
Long term wealth creation
Investment in equity and equity related securities, fixed income instruments and Gold / Silver ETFs

Mumbai , 6 February 2024 : HSBC Mutual Fund today announced the launch of HSBC Multi Asset Allocation Fund (HMAAF), an open-ended scheme investing in equity and equity-related instruments, debt & money market securities and Gold/ Silver ETFs. The fund aims to generate long-term capital growth, help reduce volatility and offer diversification. The new fund offering (NFO) opens on 8th February 2024 and closes on 22nd February 2024 and will reopen on 1st March 2024.
HMAAF will capitalize on an optimum multi asset allocation investment strategy. The fund will follow a flexicap approach and invest across market caps based on prevailing valuation comfort. The investment process considers several factors including the quality of business, competitive advantage, corporate governance track record, sustainability practices, financial strength, risk-reward evaluation, key earnings drivers, etc. The fund will be managed by Cheenu Gupta, SVP Fund Management Equities (for Domestic Equities), Dipan Parikh, VP Dealing Equities (for Gold/ Silver ETFs), Mahesh Chhabria, VP, Fund management Fixed Income (for Fixed Income) and Sonal Gupta, Head Research Equities (for Foreign Securities). Multi asset allocation funds enable customers in diversification along with asset rebalancing. They rebalance allocations, ensuring timely adjustments to maintain a balanced investment approach. This proactive approach helps investors who are seeking a comprehensive and dynamic investment strategy to navigate the current financial landscape, while optimizing their asset mix. In the calendar year 2023, under hybrid category, multi asset allocation funds witnessed the second highest inflow at Rs. 22,415 crores* industrywide.
HMAAF investment strategy:

The fund will follow a blended (Top-down + Bottom-up) approach and blended growth and value style investing.
The fund aims to invest in high quality assets including Government securities, corporate bonds, and money market instruments to generate alpha with active duration management.

The risk will be spread across three major asset classes:
Equity - allocation may range between 65% and 80% of net assets.
Debt and Money Market Securities– allocation may range between 10% and 25% of net assets.
Gold/ Silver - allocation around 10% and 25% of net assets.

Asset re-allocation could be undertaken basis changes in a market/ asset class outlook of the fund house.

Note: Please refer to Scheme Information Document (SID) for more details on Asset Allocation of the scheme.

The benefits:
Multi asset allocation can be a prudent solution to counter volatility and may achieve return optimization in the long run.
The fund is an ideal vehicle for long-term risk adjusted capital growth.
Right asset class mix may help to achieve favourable results over a longer term.
Multi asset allocation can help to achieve specific goals (small, medium, and long-term) by allocating money to different asset classes in sync with one’s risk capacity and time horizon.
Commenting on the launch, Kailash Kulkarni, CEO, HSBC Asset Management Company (India) Pvt. Ltd, said, “India’s growth story is driven by several factors including increasing domestic consumption, strong forex reserves, focus on manufacturing and infrastructure development, improving debt markets, foreign investments, strong government reforms, etc. These factors, combined with significant market volatility, calls for a multi asset allocation strategy, considering different asset classes be…

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