HSBC Large & Mid Cap Equity Fund – NFO of HSBC Mutual Fund
HSBC Mutual Fund is going to launch its new fund named “HSBC Large & Mid Cap Equity Fund” in the NFO (New Fund Offer) from 11th March 2019 to 25th March 2019. The forthcoming fund is a large and mid-cap open-ended fund which proposes to invest the assets in the stocks of large and mid-cap companies. HSBC Mutual Fund belongs to the HSBC (Hongkong and Shanghai Banking Corporation) Group and sponsored by HSBC Securities and Capital Markets (India) Private Limited.
HSBC Group, officially known as HSBC Holdings Plc is a UK based Multinational Banking and Financial Service Company and the world’s 7th largest bank. The HSBC Mutual Fund was incepted in the year 2001 and its Asset Under Management (AUM) stands at Rs 10,707.06 crore as on 31st December 2018.
HSBC Large & Mid Cap Equity Fund – Features of the Scheme
The notable features of the HSBC Large & Mid Cap Equity Fund are listed below:-
- This is an open-ended Scheme which will invest in both large and mid-cap stocks.
- It seeks to generate long-term growth of the invested capital.
- The scheme will follow the Nifty Large & Mid-Cap 250 TRI as benchmark index.
- There is no entry load to the scheme. The exit load will be charged only if someone redeems the units within 1 year, otherwise, no exit load will be charged.
- For lump-sum investment, a minimum investment of Rs 5,000 is required in the scheme and it will require a minimum of Rs 1,000 in case of additional purchase.
- For SIP, a minimum investment of Rs 1,000 is required.
- Both Direct and regular plans are available with growth and dividend options.
HSBC Large & Mid Cap Equity Fund – NFO Details
Type of Offer: NFO (New Fund Offer)
Offer Starts: 11th March 2019
Offer Ends: 25th March 2019
Scheme Type: Open-Ended
Scheme Category: Equity: Large & Mid Cap Fund
NFO Unit Price: Rs 10 Per Unit
Minimum Investment: Lump-Sum – Rs 5,000, SIP – Rs 1,000
Entry Load: Nil
Exit Load: 1% if redeemed within 1 year, otherwise Nil
Investment Manager: HSBC Asset Management (India) Private Limited
Fund Manager: Mr Neelotpal Sahai
HSBC Large & Mid Cap Equity Fund – Proposed Asset Allocation
This scheme, i.e., HSBC Large & Mid-Cap Equity Fund proposes to allocate the assets into equity and equity-related securities where it will invest a minimum of 80% to a maximum of 100% of the total asset. It further proposes to invest a minimum of 35% to a maximum of 65% of the total assets in the stocks of large and mid-cap companies, where a medium to high risk is associated. In the stocks of other than large & mid-cap companies, it will invest in the rage of 0-30%. It proposes to invest in debt and money market instruments also which will include the cash and cash equivalents and here it will invest from 0 to 20% of the total assets. A low to medium risk is associated with this approach.
HSBC Large & Mid Cap Equity Fund – Benefits of the Scheme
According to the fund house, the following are the major benefits of investing in upcoming NFO of HSBC Mutual Fund:-
- Power of Large Caps: Due to investment in large-cap stocks, the volatility of equities will be in control.
- Potential of Mid Caps: Investment in mid-cap funds has the potential to generate high growth.
- The mix of above Two: The mix of the above two benefits gives high growth with less volatility.
HSBC Large & Mid Cap Equity Fund – Why to Invest?
HSBC Mutual Fund offers the following better opportunities for investment:-
- The above scheme offers lower volatility and consistent performance due to optimal allocation to large caps.
- Due to optimal exposure to mid-caps, it has the potential to generate high growth.
- The combination of large and mid-caps has a winning combination.
- The balanced asset allocation manages the risk factor.
HSBC Large & Mid Cap Equity Fund – Risk Factors
Please go through the Scheme Information Document (SID) of upcoming NFO of HSBC Mutual Fund for details on risks associated.
HSBC Large & Mid Cap Equity Fund – How to Apply?
Please visit page number 59 of the Scheme Information Document (SID) for details on how to apply to upcoming NFO of HSBC Mutual Fund.
HSBC Large & Mid-Cap Equity Fund – Important Documents
- SID: Click here to read the Scheme Information Document (SID) of this upcoming NFO of HSBC Mutual Fund.
- Product Leaflet: Click Here to read the product leaflet of upcoming NFO of HSBC Mutual Fund.
Please go through this product website for more details and investment-related information.
Disclaimer: This post is just information about the scheme. It does not give any advice or recommendation. Mutual Fund investments are subject to market risk. Please read the offer document carefully before investing. It is also advised to consult your financial advisor of necessary suggestions.
Tags: Mutual Fund, HSBC Mutual Fund, Upcoming NFO Issue 2019, HSBC Large & Mid-Cap Equity Fund