October 2020
Equity Product Deck
1
Content
Mutual Fund investments are subject to market risk. Please refer to the scheme type and riskometer on page no. 27, 45, 64, 80, 98
Equities Why invest in Equities? 02
Large Cap Why HSBC Large Cap Equity Fund? 09
Small Cap Why HSBC Small Cap Equity Fund? 31
Multi Cap Why HSBC Multi Cap Equity Fund? 50
Thematic Why HSBC Infrastructure Equity Fund? 71
Tax Why HSBC Tax Saver Equity Fund? 91
Market View Indian Market View 114
Global HSBC Global Asset Management 118
Capability India Investment Capabilities 121
2
Sharp equity market declines have been followed by recovery
Source: BSE, CRISIL Research, data as at September 2020
Returns for period less than one-year are absolute otherwise annualised,
Investments are subject to market risk. Past performance may or may not sustain in the future and does not guarantee or assure future returns
Equity asset class is one of the logical investment instrument and beneficial in the long term
– Equity is exposed to volatility in the short term
– As seen in the chart, while the linear trend of the asset class is positive in the long term, the short term shows volatility
– An example of this volatility is the subprime crisis in early 2008, which trimmed the market gains, while the quantitative
easing by global central banks subsequently pushed the markets higher
In equity markets crisis periods are recurrent, so are growth cycles
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Feb'00-Sept'01:
Tech bubble
Nifty TRI lost ~(50%)
Sep'01-Jan'08: Bull phase
Nifty TRI rose ~724%
Jan'08-Mar'09:
Sub-prime crisis
Nifty TRI fell ~(59%)
Mar'09-Jan'11:
Bounce back
post sub-prime crisis
Nifty TRI rose ~144%
Jan'11-Jan'12:
European crisis
Nifty TRI fell ~(15%)
Jan'12-Mar'15:
Post European crisis
Nifty TRI rose ~79%
Nov'16 - Nov'16
Demonetisation
Nifty fell ~(7%)
Nov '16 - Dec '18
Post Demonetisation
Nifty rose ~42%
Dec'18 -
Feb'19
Geopolitical
jitters in the
sub-continent
Nifty fell
~(3%)
Feb'19-Jan‘20
Corporate tax cut,
trade deal
Nifty TRI rose ~18%
Jan ‘20 -
June‘20
Corona
virus spread
Nifty TRI fell
~(18%)
?
3
Why invest in equities?
Source: NSE, CRISIL Research, CY – Calendar Year returns as at December 2019. Equity represented by Nifty 50, Debt represented by Crisil Composite Bond Fund Index and gold represented by
CRISIL Gold Index, Source: CRISIL, Labour bureau.nic.in, Inflation represented average of monthly inflation of industrial workers declared since January 1988 till December 2019, Source: BSE,
CRISIL Research, S&P BSE Sensex returns, Period: December 2004 – December 2019; Returns frequency: Monthly rolling
Mutual Fund investments are subject to market risk. Past performance may or may not sustain in the future and does not guarantee or assure future returns
Monthly rolling returns for respective holding periods since 1979. For instance, in case of 15-year monthly rolling returns, there will be 307 return periods. The first return period will be June 1979 to
June 1994 and last return period will be December 2004 to December 2019. * Positive returns – The number of investment periods during which returns have been positive. For example, where
investment returns have been computed for a 15-year rolling period, 307 months offered positive returns (profits), the number of positive returns period = 307. ^ Negative returns – Number of
investment periods during which returns have been negative. For example, where investment returns have been computed for a 5-year rolling period, 33 months offered negative returns (losses), the
number of negative returns = 33.
High growth over a long term Beat inflation
Potential of high returns Achieve goals
-60.0%
-40.0%
-20.0%
0.0%
20.0%
40.0%
60.0%
80.0%
200
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8
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9
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9Cale
ndar
year
retu
rns
Debt Equity Gold
100000
71299
5083536245
25842
0
20000
40000
60000
80000
100000
120000
Today 5 yr 10 yr 15 yr 20 yr
Rs
Years
Value of today’s Rs 100,000 over time
-5% -1%4% 5% 5%
60%
46%
29%21% 18%16% 15% 14% 13% 13%
-20%
0%
20%
40%
60%
80%
3 years 5 years 7 years 10 years 15 years
Lowest CAGR Highest CAGR Average CAGR
BSE Sensex
(Daily rolling return)
3-year
rolling
returns
5-year
rolling
returns
7-year
rolling
returns
10-year
rolling
returns
15-year
rolling
returns
Average rolling period
returns16.62% 16.23% 15.87% 15.82% 15.15%
Positive investment
periods89% 92% 94% 99% 100%
4
0
1
2
3
4
5
6
7
After a sharp decline in march, market has seen a rally and largely
recovered the losses
NIFTY50: +53%^ (from lowest levels YTD), YTD*: -4%
BSE200: +54%^ (from lowest levels YTD), YTD*: -2.5%
Recovery is not broad based and has been led by only few sectors
like Healthcare (+44% YTD), IT (+42% YTD) and Energy (+25%)
Some sectors well below pre-covid levels and offer potential upside
Financials (large part of market with 30-35% weight) down -24%
YTD
Select opportunities in Telecom (-11% YTD), Industrial (-18% YTD)
and Real Estate (-26% YTD) exits
Markets subject to the near term uncertainty. But incremental data
points suggest steady movement towards recovery and which is
reflected in our portfolios
From medium to long term perspective we expect select stocks in
some of these sectors to return to normalcy and hence offer a good
upside potential
We believe that overall equities still offer significant investment
opportunities.
Source: Bloomberg, Nifty Price to Book (PB) ratio, Data as at October 2020, ̂ Period - 23-Mar-20 to 15-Oct-20) *YTD data is from period 01-Mar-2020 to 15-Oct-2020.
Past performance may or may not sustain in the future and does not guarantee or assure future returns, Any views expressed were held at the time of preparation and are subject to change without notice. While any forecast,
projection or target where provided is indicative only and not guaranteed in any way. HSBC Asset Management India accepts no liability for any failure to meet such forecast, projection or target.
Why equity now?
2003
SARS
2008
Financial
crisis
2011
European
sovereign
debt crisis
2015
China
growth
concerns
2020 :
COVID-19?
2018 US –
China trade
tension /
IL&FS
2016 – 17
India
Demonetizatio
n
+ GST
2013
Taper Tantrum
NSE Nifty 50 – Price to Book ratio (PB)
Valuations look reasonable on a price to book basis and especially in select sectors
Current PB 2.6x
PB Average 3x
Nifty 50 – 1 year forward Price to Earnings ratio (P/E) (x) Nifty 50 – 1 year forward Price to Book ratio (P/B) (x)
Trend in India’s market cap-to-GDP (%) – trading below its long-period averages
Source: Bloomberg & Motilal Oswal Securities Ltd, Data as at September 2020, PE – Price to earnings ratio, PB – Price to book ratio
Past performance may or may not sustain in the future and does not guarantee or assure future returns, Any views expressed were held at the time of preparation and are subject to change without notice. While any forecast, projection or target
where provided is indicative only and not guaranteed in any way. HSBC Asset Management India accepts no liability for any fai lure to meet such forecast, projection or target.
Reasonable valuations post correction
19.8
9
13
17
21
25
29
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10 Year Avg: 18.9x2.5
1.5
2.3
3.0
3.8
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10 Year Avg: 2.6x
4252
82 83
103
55
9588
7164 66
81
69
79 83 79
56
80
FY0
4
FY0
5
FY0
6
FY0
7
FY0
8
FY0
9
FY1
0
FY1
1
FY1
2
FY1
3
FY1
4
FY1
5
FY1
6
FY1
7
FY1
8
FY1
9
FY2
0
FY2
1E
Average of 74% for the period
Source: Bloomberg, Data as at September 2020
Past performance may or may not sustain in the future and does not guarantee or assure future returns, Any views expressed were held at the time of preparation and are subject to change without notice. While any forecast, projection or
target where provided is indicative only and not guaranteed in any way. HSBC Asset Management India accepts no liability for any failure to meet such forecast, projection or target.
Reasonable valuations post correction
-8%
-6%
-4%
-2%
0%
2%
4%
Apr-06 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 Apr-19 Apr-20
Bond Yield (1Y T Bill) - Nifty Earnings Yield
GFC Crisis
European Debt crisis
TaperTantrum
Demonetisation
COVID-19
-8%
-6%
-4%
-2%
0%
2%
4%
Apr-06 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 Apr-19 Apr-20
Bond Yield (10Y GSec) - Nifty Earnings Yield
GFC
European Debt crisis
TaperTantrum
Demonetisation
COVID-19
7
HSBC Large Cap Equity Fund (HLEF)Large cap fund - An open ended equity scheme predominantly investing in large cap stocks.
Large-cap strategy
8
Reasonable valuations post correction
Source – MOSL, Data as at September 2020, ^ Source – Bloomberg - Price to earnings (PE)
Investments are subject to market risk. Past performance may or may not sustain in the future and does not guarantee or assure future returns
Large cap companies are well positioned in current market scenario
Reasonable valuations in large caps
– Corporate profit to GDP ratio shows scope for improvement as it is well below long term average
– Nifty is currently trading at 27.4x/19.1x on FY21/FY22 consensus earnings of Rs. 410/588 respectively. Current
valuations provide reasonable opportunities. ^
Valuations - Corporate profits to GDP %
4.7
5.4
6.3
7.37.8
5.5
6.56.3
4.8
4.3 4.3
3.73.2
3.6
2.93.1
3.4
FY
04
FY
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FY
06
FY
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FY
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FY
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FY
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FY
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FY
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FY
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FY
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FY
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FY
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FY
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FY
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FY
19
FY
20E
Average of 5%
• Over-the-top market pessimism often presents opportunities to buy companies with good prospects at lower valuations
• Examples: 2003 global SARS outbreak and 2008 – 2009 global financial crisis
Source: Bloomberg, Nifty Price to Book (PB) ratio, Data as at September 2020
NSE Nifty 50 – Price to Book ratio (PB)
Valuations look reasonable on a price to book basis
Market downturns can create significant opportunities!
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6
7
Jan-03 Mar-04 May-05 Jul-06 Sep-07 Nov-08 Jan-10 Mar-11 May-12 Jul-13 Sep-14 Nov-15 Jan-17 Mar-18 May-19 Jul-20
2003
SARS
2008
Financial
crisis2011
European
sovereign
debt crisis
2015
China
growth
concerns
2020 :
COVID-19?
2018 US –
China trade
tension /
IL&FS
2016 – 17
India
Demonetization
+ GST
2013
Taper Tantrum
Current PB 2.6x
PB Average 3x
10
Earnings growth
Source: MOSL, data as at September 2020, LPA – Long Period Average
Past performance is not indicative of future performance,
Earnings growth remained volatile in FY20
Nifty PAT growth
-20
-15
19
27
16
34
24
4
10
0
12
29
6
24
5
-2
10
28 10
20
5
-6
-12
-2 0
-7
1
-3 -3
77
-6
15 14
510 9 5
15
3
-1
7
-20
-41
-10-4
35
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21E
LPA: 6%
11
India’s equity market moves with earnings
Source: MOSL, ACE MF, data as at September 2020
Past performance may or may not sustain in the future and does not guarantee or assure future returns
FY01 to FY20, Nifty EPS growth is 10.3% CAGR
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FY2
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0
2000
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10000
12000
14000
Nif
ty E
PS
Nif
ty5
0 in
dex
Nifty EPS (INR) Nifty50
FY01 - FY20: 10.3% CAGR
39%
52%
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30%
35%
40%
45%
50%
55%
60% Ratio of Top 20 Indian profitable companies’ profit to the Total corporate profit
Profitability of companies is getting concentrated among few players
Source: Bloomberg, MOSL, Data as at March 2019, For illustration purposes only. Profit of 20 most profitable listed companies in India to the total profit of India’s listed corporates
Past performance may or may not sustain in the future and does not guarantee or assure future returns, Any views expressed were held at the time of preparation and are subject to change without notice. While any forecast, projection or target
where provided is indicative only and not guaranteed in any way. HSBC Asset Management India accepts no liability for any failure to meet such forecast, projection or target.
Top profitable companies share in the overall corporate profits has risen significantly
In last 16 years, top 20
companies profit share
has increased by 13%
Profit pool is getting consolidated with the dominant players in
respective sectors/industries. The trend is likely to accelerate due to
current disruption.
Profit Consolidation at overall level
‒ In last 16 years, top 20 companies profit share (in all listed companies) has
increased by 13% (from 39% to 52%)
Profit consolidation with sectors
In financials, profit share of Private sector banks has increased at the cost of
Public sector banks. HDFC Bank profit share has increased from 1.06% in
FY10 to 5.7% in FY20.
In Consumer Staples, HUL profit share has increase from 0.76% in FY10 to
1.4% in FY20.
In IT, TCS profit share has increase from 2.5% in FY10 to 6.8% in FY20 and
Infosys profit share has increase from 2.2% in FY10 to 3.5% in FY20.
We expect the overall market to do well but companies which are
dominant in their segment and / or gaining market share are likely to
do better than the overall market.
13
• Largecaps have potential to deliver above average performance in an economic up-cycle
Performance
• May subject to relatively lower volatility
Volatility
• Potential to deliver stable earnings growth
Earnings growth
• Can offer more visibility on earnings growth
Well-researched
• May support stock valuations in up as well as down trend
Well-owned
• In an economic up-cycle as well as downturn large cap tend to show relatively reasonable valuations
Valuation
• Positioned well to achieve economies of scale
Economies of scale
Advantage Large Cap Funds as underlying large cap stocks offer
Case for Large caps Funds
Investments are subject to market risk. Past performance may or may not sustain in the future and does not guarantee or assure future returns Mutual fund investments are subject to market
risks, read all scheme related documents carefully.
Large Caps: a core asset class within equities
14
HSBC Large Cap Equity Fund
Large cap fund - An open ended equity scheme predominantly investing in large cap stocks.
A portfolio strategy centered around superior quality and dominant businesses
Well researched and well
owned large caps that
have the potential to
deliver consistent
earnings growth with
sustainable competitive
advantage.
Relatively less volatiles as
being the dominant
companies in their sectors
and higher predictability of
growth, leading to
resilience.
HLEF portfolio strategy is
centered around superior
quality and dominant
businesses with the
potential to generate
sustainable growth.
Consistent earnings
growth
Low volatility and high
cashflow
HSBC Large Cap
Equity Fund (HLEF)
15
HSBC Large Cap Equity Fund 1 / 2
Fund strategy
HSBC Large Cap Equity Fund primarily comprises of large cap stocks, without exposure to excessive risk - inline with the risk appetite of investors
Fund strategy is centered around superior quality businesses that generate sustainable growth
Disciplined, repeatable approach to select good stocks at inexpensive valuations that can get re-rated v/s popular stocks at high valuations
Aim to benefit from the power of compounding
Avoiding stocks with poor corporate governance, inefficient capital allocators, and poor quality of business
8 As on 30 September 2020 of Growth option. During the same period, scheme benchmark (Nifty 50 TRI) has moved by 13.5X to Rs 135,069 from Rs 10,000 and delivered return of 15.73% 9 During the
same period, scheme benchmark (Nifty 50 TRI) has delivered return of 12.11%1 Pursuant to the circular issued by SEBI on ‘Categorization and Rationalization of the Schemes, there has been change in the fundamental attribute(s) of the aforesaid effective from Mar 14, 2018.2 The benchmark was changed w.e.f. 11th November, 2016 as a more suitable benchmark was identified which better matched the portfolio strategy. There has been no change to investment
management of the scheme.
Please refer slide no. 26 for detailed performance of HSBC Large Cap Equity Fund. For other schemes performance managed by Neelotpal Sahai refer respective slides in this presentation 63
Past performance may or may not sustain in the future and does not guarantee or assure future returns
12.1%SIP returns since
inception 8
20.9Xsince inception 7
INR 2,09,306Value of INR 10,000 since
inception 7
18.6%CAGR since inception 7
A large cap strategy with 20.9X growth in ~17 years
16
Fund Manager Neelotpal Sahai
Benchmark Nifty 50 TRI 2
Standard Deviation 20.04 3
Beta / Sharpe 0.91 3 / 0.07 3 / 4
Portfolio Turnover 6 0.99
Inception Date 10 December 2002
Portfolio Characteristics Fund Nifty 50 TRI
Number of portfolio holdings 26 50
Price to book 5 3.61 2.72
Dividend yield 5 0.74 1.29
Price to earnings 5 34.82 36.67
Return on Equity (%) 5 10.29 11.07
Weighted average market cap of the fund: Rs.4,11,533 Cr
HSBC Large Cap Equity Fund 1
An open ended equity scheme predominantly investing in large cap stocks
Data as of 30 September 2020
• Standard deviation is a statistical measure of the range of an investment's performance. When a mutual fund has a high standard deviation, its means its range of performance is wide, implying greater volatility.
• Beta is a measure of an investment's volatility vis-a-vis the market. Beta < 1 means the security will be less volatile than the market. A beta of greater than 1 implies that the security's price will be more volatile than the market.
• Portfolio turnover is a measure of how frequently assets within a fund are bought and sold by the managers.
• Price to Book (PB) and Price to Earnings (PE) are stocks valuation parameters relative to its earnings
• Dividend Yield is a financial ratio that indicates how much a company pays out in dividends each year relative to its share price.
• Return on equity (ROE) is a measure of profitability that calculates how much of profit a company generates on shareholders' equity.
• The weighted average market capitalization is a fund’s portfolio weighted by the market capitalization of each stock in the portfolio. In such a weighting companies with large weight account for a greater portion of the portfolio.
1 Pursuant to the circular issued by SEBI on ‘Categorization and Rationalization of the Schemes, there has been change in the fundamental attribute(s) of the aforesaid effective from Mar 14, 2018. 2 The benchmark (BM) was changed w.e.f. 11 Nov ‘16 as a more suitable BM was identified to better match with portfolio strategy. There has been no change to investment management of the scheme.3 Statistical Ratios disclosed are as per monthly returns (Annualized) for the last 3 years.4 Risk free rate: 4.81% (FIMMDA-NSE MIBOR)5 PE Trailing (weighted average method), Trailing 12 month Price to earnings adjusted for negative earnings, Weighted average method, PB – Price to book value, Trailing 12 month Price to earnings,
Index method aggregation. 6 Portfolio Turnover Ratio is computed for the last 12 months, Dividend Yield, ROE
17
Data as at September 2020
Past performance may or may not sustain and doesn’t guarantee the future performance
Current broader investment themes across equity funds
Our fund’s philosophy is to invest in dominant businesses having scalable potential and that have reasonable
valuations.
Over the past few years, we’ve witnessed a trend of profit pool consolidating with the dominant players in
respective sectors/industries.
We believe that the trend will accelerate as the current disruption has higher magnitude as well as it
encompasses more sectors. This has increased our resolve to be true to our philosophy. We believe that these
stocks would gain market share in the sluggish phase of the economy and gain revenue traction when the
economy returns to normalcy.
From a medium to long term perspective, the current phase of disruption shall also pave way for accelerated
digital adoption by consumers as well as enterprises.
We see telecom, internet economy, ecommerce, technology vendors etc., to benefit from this disruption.
Another long term theme is that of diversification of the global supply chain due to ‘China + 1’ strategy which
could be adopted by corporates as well as economies and India could stand to benefit out of that.
In the short term as we see the recovery phase playing out for corporate India, growth will be scarce and the
balance sheet strength will come to fore. Therefore, we are positively disposed towards companies with
relatively higher earnings resilience and ones with stronger balance sheets. As a result, we hold a positive view
on Healthcare, Consumer Discretionary and Telecom sectors.
We are also positive on Cement and Specialty chemicals, owing to strong demand recovery in the former while
the latter being a beneficiary of the global supply chain diversification away from China.
Within the discretionary basket, we are positive on companies that have rebounded in the pandemic phase itself
(eg: auto OEMs due to preference for personal mobility), companies that saw demand rebound within the
recovery phase (eg: white goods, apparels etc.) and companies still to see meaningful rebound but expected to
be beneficiaries of industry consolidation and formalization (eg: retailers, QSR etc.).
Positively disposed towards companies with relatively higher earnings resilience
and ones with stronger balance sheets
18Data as at September 2020
Past performance may or may not sustain and doesn’t guarantee the future performance
Current broader investment themes across equity funds
We are neutral on Financials, Consumer Staples and Technology sectors. Within Financials, we are positive on
large private banks and select large NBFCs and negative on PSU Banks, old or small private banks, and other
NBFCs.
Our positive stance on select lending institutions is driven by our assessment that the market is currently
assuming that the loan slippages and consequent credit costs to be much higher than what is being guided by
banks on account or what the market is ascribing to the rest of the economy.
Hence, we think that there is a relative divergence in the assessment of risks and the valuations of private
lending financials/banks. So this could lead to re-rating potential owing to better delivery on asset quality
parameters.
In Staples, we have moderated our earlier positive stance to neutral owing to rich valuations and lack of positive
triggers from hereon.
Our neutral position in Technology sector is on account of the sector’s ability to navigate the current phase much
better and being a beneficiary of shift to digital and increased demand for technology in the medium term.
We continue to have a negative view on Industrials, Energy and Utilities. We believe that private sector capex as
well as government capex will get delayed and hence we are not constructive on sectors that are dependent on
capex for revival.
Our negative view of the energy companies is due to subdued demand, weak profitability ratios, and volatile
prices (which are not in control of the companies).
Positive stance on select lending institutions
19
Current key focused sectors in HLEF
Data as at September 2020
Sectors Comments
Healthcare
Our positive stance is on account of the earnings resilience coupled with revenue visibility. Over the medium term, we
believe that the profit pool of pharma companies will improve owing to reduction in fixed costs, secular domestic market
growth and US business showing signs of improvement. Most of the companies have significantly deleveraged their
balance sheets which will aid earnings and returns profile going ahead. Valuations can improve further as the sector
offers mid-teens earnings growth visibility and improving return ratios. Our exposure to the sector, is primarily through
companies having exposure to US generic business. We also own domestic focused businesses with a higher degree of
vertical integration.
Consumer
Discretionary
The pandemic disruption has not been felt uniformly across all Consumer Discretionary players. We remain positive on
three types of companies. a) Those companies that have rebounded in the pandemic phase itself. e.g. Auto OEMs have
witnessed good traction due to increase in need for personal mobility. b) Those companies that have rebounded in the
recovery phase e.g. White goods, apparels etc. c) Segments and companies that may not have rebounded but we
believe that the disruption will affect weaker players and unorganized players more. And in the post pandemic phase,
these companies will come out stronger. We used the correction to reorient our exposure within the sector and added to
names where the price correction has been steeper than the value destruction in the business. Also, our exposure is
through companies that are dominant players in their respective businesses.
Telecom
Services
Telecom sector is a beneficiary of industry consolidation and improving pricing power. As a result, the profitability of the
sector is anticipated to come back strongly. We believe that players who are better positioned on network / spectrum
along with better access and ability to deploy future capital, will have dominance going forward. The long pending AGR
liability issue has also been put to rest after the SC ruling and it is no longer an overhang. Additionally, the sector is a
beneficiary from the pandemic disruption, which is leading to higher data usage. Given the accelerated digital adoption
across users and industries coupled with behavioural changes; the demand for telecom services is expected to remain
robust and this should increase the wallet share of players. Our preference is for sector leaders, which also have
stronger balance sheet and have shown better execution on the ground.
HSBC Large Cap Equity Fund (HLEF) portfolio strategy
In HLEF, in line with the thought process outlined above, we are overweight in Healthcare, Telecom and Consumer Discretionary
sectors. We are underweight in Energy and Utilities sectors. We have a neutral position in Technology, Financials, Consumer Staples,
Materials and Industrials sectors.
20
HSBC Large Cap Equity Fund – Sector allocation
Sector weightings (%) ( Active sector weightings (%)
Active sector weightings - The difference in allocation of an individual security or portfolio segment between portfolio and the benchmark. Average weight, Attribution for 1 month,
HSBC Global Asset Management, Data as on 30 September 2020
35.9
16.9
9.8
8.8
8.6
6.3
6.0
3.9
2.7
1.2
0 5 10 15 20 25 30 35 40
Financials
Information Technology
Energy
Consumer Staples
Consumer Discretionary
Materials
Health Care
Communication Services
Industrials
Not Classified
2.51.9 1.8 1.8
1.2
0.1 0.1
-0.1 -0.2
-2.0
-7.1-8.00
-6.00
-4.00
-2.00
0.00
2.00
4.00
Fin
an
cia
ls
Hea
lth
Ca
re
Com
mu
nic
ation
Se
rvic
es
Con
su
me
r D
iscre
tion
ary
Not
Cla
ssifie
d
Info
rmation
Te
ch
no
logy
Ma
teria
ls
Indu
str
ials
Con
su
me
r S
tap
les
Utilit
ies
En
erg
y
21
Top stock holdings in portfolio (%)
HSBC Large Cap Equity Fund - Stock positioning
Past performance may or may not be sustained in the future, The returns provided above have been rounded off and hence there may be minor differences between point-to-point returns vis-a-vis
returns indicated above. Data as on 30 September 2020.
9.8
9.6
9.4
8.1
5.8
4.8
4.6
4.4
3.9
3.9
0 2 4 6 8 10 12
RELIANCE INDUSTRIES LTD
HDFC BANK LIMITED
INFOSYS LTD
ICICI BANK LTD
HINDUSTAN UNILEVER LTD
KOTAK MAHINDRA BANK LTD
MARUTI SUZUKI INDIA LTD
HOUSING DEVELOPMENT FINANCE
AXIS BANK LTD
BHARTI AIRTEL LTD
22
0
200
400
600
800
1000
1200
1400
Jul-
07
Jan
-08
Jul-
08
Jan
-09
Jul-
09
Jan
-10
Jul-
10
Jan
-11
Jul-
11
Jan
-12
Jul-
12
Jan
-13
Jul-
13
Jan
-14
Jul-
14
Jan
-15
Jul-
15
Jan
-16
Jul-
16
Jan
-17
Jul-
17
Jan
-18
Jul-
18
Jan
-19
Jul-
19
Jan
-20
Jul-
20
HDFC Bank
0
100
200
300
400
500
600
700
800
900
Au
g-0
4
Jun
-05
Ap
r-06
Fe
b-0
7
Dec-0
7
Oct-
08
Au
g-0
9
Jun
-10
Ap
r-11
Fe
b-1
2
Dec-1
2
Oct-
13
Au
g-1
4
Jun
-15
Ap
r-16
Fe
b-1
7
Dec-1
7
Oct-
18
Au
g-1
9
Jun
-20
HCL Tech
HCL Technologies
– The stock is appreciated by more than 8X since
initiated
HSBC Large Cap Equity Fund
Track record of key stock picks
HLEF Entry
PointStock growth
of 8.1X in
HLEF portfolio
Bloomberg, data as at September 2020
The stock named above is for illustration purposes only and does not constitute investment research, investment advice or a recommendation to any reader of this content to buy or sell investment product.
Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies that may have been discussed in this report and
should understand that the views regarding future prospects may or may not be realised.
Currently in the portfolio, does not guarantee the position in the future. (Please refer latest portfolio for the reference)
Past performance may or may not be sustained in the future, Past performance is not indicative of future performance.
The returns provided above have been rounded off and hence there may be minor differences between point-to-point returns vis-a-vis returns indicated above.
HDFC Bank
– The stock has gained over 12X since initiated
Stock growth
of 12.9X in
HLEF portfolio
HLEF Entry
Point
23
HSBC Large Cap Equity Fund - portfolio
Data as on 30 September 2020
24
HSBC Large Cap Equity Fund - performance
Returns are of growth option. The returns for the respective periods are provided as on Last business day of Sep 2020 for the respective Schemes
Returns above 1 year are Compounded Annualized. Standard benchmark is prescribed by SEBI and is used for comparison purposes. Returns on 10,000 are
point-to-point returns for the specific time period, invested at the start of the period. The returns provided above have been rounded off and hence there may be minor differences between
point-to-point returns vis-a-vis returns indicated above. Different plans shall have a different expense structure. The performance details provided herein are of other than Direct plan.
Investment of Rs.10000/- 1 year (INR) 3Y (INR) 5Y (INR)Since Inception
(INR)
HSBC Large Cap Equity Fund – Growth 9,821 10,974 14,496 209,306
Nifty 50 TRI (Benchmark) 9,903 11,921 15,064 135,069
Alpha (82) (947) (568) 74,237
SIP performanceP2P performance
Data as at Sep 2020, Past performance may or may not be sustained in the future.
Please check the detailed performance on the slide number 26, For other schemes performance managed by Neelotpal Sahai refer respective slides in this presentation 63, 100
The Fund offers flexible and convenient Systematic Investment Plan (SIP) facility. To illustrate the advantages of SIP investments, this is how your investments would have grown if you had
invested say 10,000 systematically on the first Business Day of every month over a period of time in the Growth Option of Respective Scheme. The returns are calculated by XIRR approach
assuming investment of 10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows
with correct allowance for the time impact of the transactions.
-5%
0%
5%
10%
15%
20%
1Y 3Y 5Y Since Inception
HSBC Large Cap Equity Fund - Growth
Nifty 50 (Benchmark)
0%
2%
4%
6%
8%
10%
12%
14%
1Y 3Y 5Y Since Inception
HSBC Large Cap Equity Fund -…
25
Rolling performance – HSBC Large Cap Equity Fund
In the long term , probability of negative returns reduces and
creates an opportunity to generate better risk adjusted returns
Methodology - example:
Note - Rolling returns are calculated since inception. As inception date is different for different fund so the returns of one fund is not comparable with other fund.
10 years rolling returns for HSBC Large Cap Equity Fund are calculated using the data since its inception i.e. 10 Dec 2002 to 30 September 2020.
10 year data calculation has number of sets of two NAVs starting from 10 Dec 2002 to 9 Dec 2012, 11 Dec 2002 to 10 Dec 2012,..... and so on up to 1 Apr 2010 to 30 September 2020. The CAGR
returns are calculated for each of these number of NAV sets. The maximum, average and minimum returns number is taken out from these number of returns set. From this set of number of CAGR
returns other numbers are extracted such as the number of times where the fund has delivered less than Zero, more than 7%, 10% and more than 15% has been identified and converted into % times.
Similar daily rolling returns are calculated for other 10, 5, 3 and 1 year periods and above data is extracted.
Source ACE MF – as at September 2020, Nifty 50 TRI
^ ^ The above table shows the performance on daily rolling returns basis for respective periods (1, 3, 5 and 10 years) since the inception date of the scheme. The maximum, minimum and average
returns are calculated on the basis of total observations for respective rolling period.
Rolling return period for HSBC Large Cap Equity Fund – 10-Dec-02 – 30 September 2020,
Rolling return period for Nifty 50 TRI – 10-Dec-02 – 30 September 2020,
Please refer to page no 26 for performance in SEBI prescribed performance format of the above fund. Past performance may or may not be sustained in the future, For other schemes
performance managed by Neelotpal Sahai refer respective slides in this presentation 63 and 100
Returns - Daily Rolling CAGR%
Since Inception ^
Period (Y=Years) 10Y 5Y 3Y 1Y 10Y 5Y 3Y 1Y
Minimum returns% 4.5 -1.7 -5.5 -50.4 5.1 -1.0 -5.2 -55.3
Maximum returns% 27.1 63.0 85.3 196.3 22.4 44.8 62.0 107.5
Average Returns 12.6 13.9 16.5 22.0 13.1 13.8 15.8 18.9
Negative returns % times 0% 2% 6% 22% 0.0% 0.1% 2.3% 19%
Returns more than 7% (% times) 94% 77% 73% 65% 97.3% 82.2% 75.7% 70%
Returns more than 10% (% times) 58% 60% 60% 59% 71.7% 66.4% 60.2% 64%
Returns more than 15% (% times) 28% 28% 33% 50% 36.9% 28.2% 35.7% 50%
HSBC Large Cap Equity Fund(G)Nifty 50
(Benchmark )
26
HSBC Large Cap Equity Fund - performance
ICRA MFI Explorer, Data as on 30 September 2020. For other schemes performance managed by Neelotpal Sahai refer respective slides in this presentation 63 and 100
Performance of the respective benchmark is calculated as per the Total Return Index (TRI)
Pursuant to the circular issued by SEBI on ‘Categorization and Rationalization of the Schemes, there has been change in the fundamental attribute(s) of the aforesaid effective from Mar 14, 2018.
The performance details provided herein are of other than Direct Plan - Growth Option. Returns on Rs.10,000 are point-to-point returns for the specific time period, invested at the start of the period. The
returns for the respective periods are provided as on last available NAV of September 2020 for the respective Schemes. Returns 1 year and Above are Compounded Annualised. Load is not taken into
consideration for computation of performance. Different plans shall have a different expense structure. The expenses of the Direct Plan under the Scheme will be lower to the extent of the distribution
expenses / commission charged to the Other than Direct Plan. The performance data of the scheme(s) managed by the respective Fund Manager which has/have not completed 1 year is not provided.
Considering the varying maturities of the close ended schemes, the performance of close-ended schemes is not provided as it is strictly not comparable with that of open ended schemes.
Funds Managed by Neelotpal Sahai (Total Schemes Managed 5)
HSBC Large Cap Equity Fund
Incep
tion
Date
: 10-D
ec-0
2
Fund / Benchmark
(Value of `10,000 invested)
1 Year 3 Years 5 Years Since Inception
Amount in
`Returns
(%)
Amount in
`Returns
(%)
Amount in
`Returns
(%)
Amount in
`Returns
(%)
HSBC Large Cap Equity Fund 9,821 -1.79 10,974 3.14 14,496 7.70 209,306 18.61
Scheme Benchmark (Nifty 50 TRI) 9,903 -0.97 11,921 6.02 15,064 8.53 135,069 15.73
Additional Benchmark
(S&P BSE Sensex TRI)9,956 -0.44 12,602 8.00 15,500 9.15 150,852 16.45
The said Fund is managed by Neelotpal Sahai Effective (27 May 2013)
27
HSBC Large Cap Equity Fund – Key features
Benchmark Index Nifty 50 TRI
Minimum Application Amount
Lump sum = INR 5,000, SIP = INR 500
Options Growth, Dividend (Payout & Dividend Reinvestment)
Load StructureEntry Load – Nil;
Exit Load 4 – 1% if redeemed / switched out within 1 year from allotment else NIL
SIP/STP/SEP SIP/STP/SEP available
Fund Manager Neelotpal Sahai
Investment Objective
To generate long-term capital growth from an actively managed portfolio of equity
and equity related securities of predominantly large cap companies. However,
there can be no assurance or guarantee that the investment objective of the
scheme would be achieved.
4 Applicable with effect from 14 March, 2018, In respect of each purchase /switch-in of Units, an Exit Load of 1% is
payable if Units are redeemed / switched-out within 1 year from the date of allotment, No Exit Load will be charged, if
Units are redeemed/switched-out after 1 year from the date of allotment.
28
HSBC Small Cap Equity Fund (HSEF)Small Cap Fund - An open ended equity scheme predominantly investing in small cap stocks
Small Cap strategy
29
• Small Caps have potential to outperform in an economic up-cycle
Performance
• Subject to relatively very high volatility
Volatility
• Better earnings acceleration effect v/s large/midcaps due to base effect and emerging businesses
Earnings acceleration
• May lead to mis-appraisal and mis-pricing by the market
Under-researched
• Provides opportunities to accumulate small cap stocks at lower valuations
Under-owned
• On account of above average growth but at the same time unknown due to less research coverage on small caps
Valuation discount
• Offers diversity with potential to generate better performance
Diversity and alpha
Case for Small Cap funds
Past performance may or may not sustain and doesn’t guarantee the future performance
Small Caps: High growth asset class within equities
Underlying Small Cap stock features:
30
Small Caps can be Mid & Large caps of tomorrow
Historically, Index constituents change by ~50% every decade
Small caps today have potential to become Midcaps and may graduate to become the large caps of
tomorrow thereby, replacing the current Nifty constituents
Small cap investment is also one of the best way for aggressive investors to gain exposure to some of
the rapidly growing industries and business
Over the last 3 years some of the small cap stocks that have entered become Mid cap or Large caps
But 5 years prior to their inclusion, they were small or mid caps, much smaller in size and much less
discussed!
Source - Ambit Capital Research, Data as at September 2020. Note: “t-0” denotes the year of Nifty Midcap index inclusion. T-1 to t-5 are the years before inclusion in Nifty Midcap index. Past
performance may or may not sustain in the future and does not guarantee or assure future returns
Small Cap progress in size before Mid Cap inclusion
Don’t ignore todays small caps: tomorrows potential mid and large caps
80
90
100
110
120
130
140
t-5 t-3 t-1 t-0
Ave
rag
e M
ca
p (
Rs
bn
)
31
Source – AMBIT Capital Research, Note: For this exhibit, we have considered the stock inclusions in the Nifty Midcap 100 index since 2005. The performance denoted as 3 year CAGR from t-3 to t-0
reflects the median annualized returns of these inclusions over a 3 year period prior to inclusion in the Nifty Midcap index. Similarly, the 1 year CAGR from t-1 to t-0 reflects the average return over a 1
Year period prior to inclusion. The returns from t-0 to t+1 & t-0 to t+3 reflect the median returns of these inclusions over a 1 year & 3 year period post inclusion in the Nifty Midcap index. Data as at Sep
2020
Transition phase offers opportunity
The value in investing in Small Cap stocks is before they enter the index and not after!
Small cap stocks should be tapped at an early stage of their life-cycle
A look at the price-performance of all Nifty entrants historically suggests that the value in investing in
these stocks is before they enter the index and not after!
75
85
95
105
115
125
135
145
155
t-3 t-1 t-0 t+1 t+3Inclusions (relative to Nifty Midcap)
3-yr CAGR: 10%
1-yr CAGR: 20%
1-yr CAGR: -4%
3-yr CAGR: -11%
Nif
ty M
idcap e
ntr
y
32
Small caps have done well over the long run historically*
Source: Bloomberg, Capitaline, Ambit Capital research. Note: Universe is top 500 stocks based on 6 month average market cap each year. Large-caps are defined as top 100
stocks on market capitalization, between 101-250 as mid-caps, and between 251–500 as small-caps. *Performance has been calculated on a Mar-Mar basis starting from Mar-03,
latest year performance is updated as at June 2020.
Ambit Capital research. Note: Universe is top 500 stocks based on 6 month average market cap each year. Large-caps are defined as top 100 stocks on market capitalization, between 101-250 as mid-caps,
and between 251–500 as small-caps. *Institutional ownership as at Mar’20, #Analyst coverage and average daily liquidity as at Sep 20
Past performance may or may not sustained in the future, as at September 2020.
Higher returns attributable to inefficient price
discovery owing to lower analyst coverage…#
Lower institutional ownership* … and lower activity levels#
Case for long term investing in small caps
Gain from inefficient price discovery in Small Caps
-
1,000
2,000
3,000
Mar-
03
Mar-
04
Mar-
05
Mar-
06
Mar-
07
Mar-
08
Mar-
09
Mar-
10
Mar-
11
Mar-
12
Mar-
13
Mar-
14
Mar-
15
Mar-
16
Mar-
17
Mar-
18
Mar-
19
Mar-
20
Sep
-2
0
Large-Cap Mid-Cap Small-Cap
CAGR ReturnsSmallcaps: 18.4%Midcaps: 18.1%Largecaps: 17.3%
15
17
19
21
23
25
27
29
Mid Cap Small Cap
Mid Cap Small Cap
-
5
10
15
20
Mid Cap Small Cap
Mid Cap Small Cap
- 1 2 3 4 5 6 7 8 9
10 11
Mid Cap Small Cap
Mid Cap Small Cap
33
HSBC Small Cap Equity Fund
Small Cap Fund - An open ended equity scheme predominantly investing in small cap stocks
Aims to invests in small cap companies that can become mid/large caps of tomorrow
Emerging businesses with
high growth potential
demonstrated by earnings
acceleration.
Provide opportunities to
accumulate small cap
stocks at lower valuations.
HSEF employs bottom-up
fundamental approach to
find small cap stocks with
the potential of high
earning expansion which
can become Mid and
Large caps of tomorrow.
Earning accelerationUnder researched /
Under owned
HSBC Small Cap
Equity Fund (HSEF)
34
HSBC Small Cap Equity Fund 1
Fund strategy
Fund strategy is centered around superior quality businesses that generate sustainable growth with good capital efficiency
Bottom-up fundamental approach; looking for stocks that are in the growth phase of the business lifecycle, experiencing higher earnings
expansion as compared to their mid / large cap counterparts
Long term horizon; looking to identify companies that may migrate from small caps to midcaps and eventually large caps
Disciplined, repeatable approach to generate long-term alpha – good stocks at inexpensive valuations that can get re-rated v/s popular stocks at
high valuations
Avoid stocks with poor corporate governance, inefficient capital allocators, value traps and poor quality of business
7 As on 30 September 2020 of Growth option. The launch date of the S&P BSE 250 Small Cap Index (INR) is November 30, 2017 whereas the inception date of the scheme is May 19, 2005. All
information presented prior to the index launch date is back-tested which is available from Mar 31, 2008. During the same period, scheme benchmark (S&P BSE 250 small cap index TRI) has moved by
1.2X to Rs. 12,681 from Rs.10,000 and delivered return of 4.86%. 8 During the same period, scheme benchmark (S&P BSE 250 small cap index TRI) has delivered return of 1.28%1 Pursuant to the circular issued by SEBI on ‘Categorization and Rationalization of the Schemes, there has been change in the fundamental attribute(s) of the aforesaid effective from Mar 14, 2018.
1.16%SIP returns
over 5 years 8
1.2XIn 5 years 7
INR12,140Value of INR 10,000 in 5
years 7
3.95%CAGR over 5 years 7
35
Fund Manager Ankur Arora
Benchmark 2 S&P BSE 250 Small Cap Index TRI
Standard Deviation 3 28.94%
Beta / Sharpe 3 / 4 0.90 / -0.13
Portfolio Turnover 6 0.55
Inception Date 19 May 2005
Portfolio Characteristics FundS&P BSE 250 Small
Cap Index TRI
Number of holdings 45 250
Price to book 5 2.88 1.77
Dividend yield 5 0.70 1.25
Price to earnings 5 38.17 75.02
Return on Equity (ROE %) 5 13.06 9.68
Weighted average market cap of the fund: Rs.12,522 Cr
HSBC Small Cap Equity Fund 1 , 2
An open ended equity scheme predominantly investing in small cap stocks
HSBC Global Asset Management, data as of 30 September 2020
• Standard deviation is a statistical measure of the range of an investment's performance. When a mutual fund has a high standard deviation, its means its range of performance is wide, implying greater volatility.
• Beta is a measure of an investment's volatility vis-a-vis the market. Beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 implies that the security's price will be more volatile than
the market.
• Portfolio turnover is a measure of how frequently assets within a fund are bought and sold by the managers.
• Price to Book (PB) and Price to Earnings (PE) are stocks valuation parameters relative to its earnings
• Dividend Yield is a financial ratio that indicates how much a company pays out in dividends each year relative to its share price.
• Return on equity (ROE) is a measure of profitability that calculates how much of profit a company generates on shareholders' equity.
• The weighted average market capitalization is a fund’s portfolio weighted by the market capitalization of each stock in the portfolio. In such a weighting companies with large weight account for a greater portion of the portfolio.
1 Pursuant to the circular issued by SEBI on ‘Categorization and Rationalization of the Schemes, there has been change in the fundamental attribute(s) of the aforesaid effective from Mar 14, 2018. 2 The benchmark was changed w.e.f. 14th March 2018 as a more suitable benchmark was identified which better matched the portfolio strategy3 Statistical Ratios disclosed are as per monthly returns (Annualized) for the last 3 years.4 Risk free rate: 4.81% (FIMMDA-NSE MIBOR)5 PE Trailing (weighted average method), Trailing 12 month Price to earnings adjusted for negative earnings, Weighted average method, PB – Price to book value, Trailing 12 month Price to earnings,
Index method aggregation. 6 Portfolio Turnover Ratio is computed for the last 12 months, Dividend Yield, ROE6 Portfolio Turnover Ratio is computed for the last 12 months
36Data as at September 2020
HSEF portfolio strategy
The fund is small cap focused fund which aims to gain from the long term growth potential of small and emerging
companies. We have been very consistent in our view on the markets and our portfolio continues to reflect the
same. After the COVID-19 led disruption, market has recovered almost all its losses and small cap indices are
actually in positive on year to date basis. However, a quick glance on the constituents of this recovery clearly
differentiates the winners and losers in the market.
Most of the recovery has been led by leading players in their respective segment who had strong balance sheets
and had the ability to survive the COVID-19 led disruption. The basic premise being that stronger players would
gain disproportionate market share at the cost of smaller players in the current disruption. We have maintained a
similar view on the market for some time and have built the portfolio in line with the same theme.
We remain invested in the names which we believe will emerge stronger in the medium term, notwithstanding the
short term outcomes. A few segments of economy have got structurally impacted in the current environment while
a few other are facing only transitionary challenges. We are aligning our portfolio to the segments where we
believe the impact is transitionary in nature and they will emerge stronger post this disruption.
We continue to maintain a positive stance on the consumer discretionary space led by long term strengths of
these businesses.
We are maintained a positive stance on cash rich companies as these are the companies that will be able to
deliver superior performance in the current stressed environment.
We maintain our positive stance on material space primarily due to our positive stance on chemical companies
that we believe will continue to grow strongly in the medium to long term as global customers continue to diversify
supply chains from China alone.
We have also turned more positive on healthcare space primarily due to strong opportunity in API business. A
small shift in supply chains away from China can lead to huge growth opportunities for these players and many
companies have been able to demonstrate the potential growth opportunity in last few quarterly results leading to
our positive stance.
Mutual fund investments are subject to market risks, read all scheme-related documents carefully. Past performance may or may not sustain and doesn’t guarantee the future performance
HSEF maintained positive stance on cash rich companies
37
Current key focused sectors in HSEF
Data as at September 2020
Sectors Comments
Consumer
Discretionary
We remain positive on small ticket discretionary spends as we believe many of these companies will come back very
strongly post COVID-19 led slowdown. We are also positive on home improvement segment which should see a
pick-up in demand as things return to normalcy.
Healthcare
We find attractive opportunities in healthcare space given the large opportunity in API market. As the end customers
diversify their supply chain from China alone, Indian API manufacturers stand to benefit significantly. We also remain
positive on select hospital and diagnostic players that we believe can gain substantially in the medium to long term
given the current unorganized nature of the market.
Industrial
We continue to remain negative on industrial space as the capacity utilization in the system remain low leading to
little need for a new capex cycle to begin. On infra side, government continues to spend but opportunities in that
space also remain far and few between given the longer execution cycles and stretched balance sheet of many
players in the sector.
38
HSBC Small Cap Equity Fund - Sector allocation
Sector weightings (%) Active sector weightings (%)
HSBC Global Asset Management, Data as of 30 September 2020, Active sector weightings - The difference in allocation of an individual security or portfolio segment between portfolio and the
benchmark. Average weight, Monthly Attribution.
24.5
21.3
16.0
12.7
9.4
5.6
3.7
3.2
2.6
1.1
0 5 10 15 20 25 30
Materials
Consumer Discretionary
Industrials
Health Care
Financials
Consumer Staples
Real Estate
Information Technology
Communication Services
Not Classified
7.0
1.9 1.71.1
0.1
-0.1 -0.2 -0.5-1.2
-1.5
-3.2
-5.1 -6
-4
-2
0
2
4
6
8
Con
su
me
r D
iscre
tion
ary
Rea
l E
sta
te
Ma
teria
ls
Not
Cla
ssifie
d
Con
su
me
r S
tap
les
Fin
an
cia
ls
Hea
lth
Ca
re
Utilit
ies
Com
mu
nic
ation
Se
rvic
es
En
erg
y
Indu
str
ials
Info
rmation
Te
ch
no
logy
39
Top stock weightings in portfolio
HSBC Small Cap Equity Fund - Stock positioning
HSBC Global Asset Management, Data as of 30 September 2020 Past performance may or may not be sustained in the future, The returns provided above have been rounded off and hence there may be
minor differences between point-to-point returns vis-a-vis returns indicated above. Average weight, Attribution for 1 year
5.6
5.5
5.2
4.5
3.7
3.7
3.4
3.1
3.0
3.0
0 1 2 3 4 5 6
DIXON TECHNOLOGIES INDIA LTD
J.B. CHEMICALS & PHARMA LTD
AMBER ENTERPRISES INDIA LTD
VINATI ORGANICS LTD
APL APOLLO TUBES LTD
LAURUS LABS LTD
ESCORTS LTD
VMART RETAIL LTD
KEC INTERNATIONAL LTD
CAN FIN HOMES LTD
40
0
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1000
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1400
1600S
ep-1
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Vinati Organics
Vinati Organics –
– The stock has grown by more than 6 times since initiated
HSBC Small Cap Equity Fund
Track record of key stock picks
HSEF Entry
Point
Stock growth
of 6.7X
in HSEF
portfolio
Bloomberg, Data as at September 2020
The stock named above is for illustration purposes only and does not constitute investment research, investment advice or a recommendation to any reader of this content to buy or sell investment
product.
Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies that may have been discussed in this report and
should understand that the views regarding future prospects may or may not be realised.
Currently in the portfolio, does not guarantee the position in the future. (Please refer latest portfolio for the reference)
Past performance may or may not be sustained in the future, Past performance is not indicative of future performance.
The returns provided above have been rounded off and hence there may be minor differences between point-to-point returns vis-a-vis returns indicated above.
41
HSBC Small Cap Equity Fund – portfolio
Data as on 30 September 2020
42
HSBC Small Cap Equity Fund - performance
Source : ICRA MFI Explorer, as at September 2020, Please check the detailed performance on the slide number 44.
The Fund offers flexible and convenient Systematic Investment Plan (SIP) facility. To illustrate the advantages of SIP investments, this is how your investments would have grown if you had invested say Rs.10,000 systematically
on the first Business Day of every month over a period of time in the Growth Option of Respective Scheme. The returns are calculated by XIRR approach assuming investment of Rs.10,000/- on the 1st working day of every
month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows with correct allowance for the time impact of the transactions.
Please Note : “NA means not available
Pursuant to the circular issued by SEBI on ‘Categorization and Rationalization of the Schemes, there has been change in the fundamental attribute(s) of the aforesaid scheme including change in the benchmark to S&P BSE 250
Small Cap Index TRI effective from Mar 14, 2018. The launch date of the S&P BSE 250 Small Cap Index (INR) is November 30, 2017 whereas the inception date of the scheme is May 19, 2005. All information presented prior to
the index launch date is back-tested which is available from Mar 31, 2008. The corresponding benchmark returns since inception of the scheme is not available. All index data is available on the website of Asia Index Pvt. Ltd. a
joint venture between BSE Ltd. and S&PDow Jones Indices LLC. (source: http://www.asiaindex.co.in).
Returns are of growth option. The returns for the respective periods are provided as on Last business day of June 2020 for the respective Schemes. Returns above 1 year are Compounded Annualized. Standard benchmark is
prescribed by SEBI and is used for comparison purposes. Returns on 10,000 are point-to-point returns for the specific time period, invested at the start of the period. The returns provided above have been rounded off and hence
there may be minor differences between point-to-point returns vis-a-vis returns indicated above. Different plans shall have a different expense structure. The performance details provided herein are of other than Direct plan. Past
performance may or may not be sustained in the future.
Scheme count for the total schemes managed by the Fund Managers does not include closed ended scheme.
Investment of Rs.10,000/- 1Y (INR) 3Y (INR) 5Y (INR) Since Inception (INR) *
HSBC Small Cap Equity Fund – Growth 10,545 8,754 12,140 47,149
S&P BSE Small Cap 250 TRI (Benchmark) (Rs.) 10,719 8,604 12,681 -
Alpha (Rs.) (174) 150 (541) -
SIP performanceP2P performance
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
1Y 3Y 5Y Since Inception
HSBC Small Cap Equity Fund - Growth S&P BSE Small Cap 250
-5%
0%
5%
10%
15%
20%
25%
30%
35%
1Y 3Y 5Y Since Inception
HSBC Small Cap Equity Fund - Growth S&P BSE Small Cap 250
43
Rolling performance – HSBC Small Cap Equity Fund
In the long term, probability of negative returns reduces and
creates an opportunity to generate better risk adjusted returns
Methodology - example:
Note - Rolling returns are calculated since inception. As inception date is different for different fund so the returns of one fund is not comparable with other fund.
10 years rolling returns for HSBC Small Cap Equity Fund are calculated using the data since its inception i.e. 19 May 2005 to 30 September 2020.
This calculation has number of sets of two NAVs starting from 19 May 2005 to 9 Dec 2012, 11 Dec 2002 to 10 Dec 2012,..... and so on up to 1 Apr 2010 to 30 September 2020. The CAGR returns are
calculated for each of these number of NAV sets. The maximum, average and minimum returns number is taken out from these number of returns set. From this set of number of CAGR returns other
numbers are extracted such as the number of times where the fund has delivered less than Zero, more than 7%, 10% and more than 15% has been identified and converted into % times. Similar daily
rolling returns are calculated for other 5, 3 and 1 year periods and above data is extracted.
Source ACE MF – as at September 2020, Please Note :NA means not available. S&P BSE 250 Small Cap TRI
S&P BSE 250 Small Cap Index TRI - Pursuant to the circular issued by SEBI on ‘Categorization and Rationalization of the Schemes, there has been change in the fundamental attribute(s) of the
aforesaid scheme including change in the benchmark to S&P BSE 250 Small Cap Index TRI effective from Mar 14, 2018. The launch date of the S&P BSE 250 Small Cap Index (INR) is November 30,
2017 whereas the inception date of the scheme is May 19, 2005. The corresponding benchmark returns since inception of the scheme is not available.
^ ^ The above table shows the performance on daily rolling returns basis for respective periods (1, 3, 5 and 10 years) since the inception date of the scheme. The maximum, minimum and average
returns are calculated on the basis of total observations for respective rolling period.
Rolling return period for HSBC Small Cap Equity Fund – 19 May 2005 – 30 September 2020,
Please refer to page no 44 for performance in SEBI prescribed performance format of the above funds.
Returns - Daily Rolling CAGR%
Since Inception ^
Period (Y=Years) 10Y 5Y 3Y 1Y 10Y 5Y 3Y 1Y
Minimum returns% 3 -9 -21 -67 NA NA NA NA
Maximum returns% 18.71 32.43 48.73 142.82 NA NA NA NA
Average Returns 10.13 10.55 9.34 14.39 NA NA NA NA
Negative returns % times 0.0% 21.3% 28.5% 42% NA NA NA NA
Returns more than 7% (% times) 88.6% 63.0% 47.6% 51% NA NA NA NA
Returns more than 10% (% times) 49.9% 57.1% 42.5% 48% NA NA NA NA
Returns more than 15% (% times) 9.9% 33.1% 36.5% 44% NA NA NA NA
HSBC Small Cap Equity Fund(G)S&P BSE 250 Small Cap
(Benchmark)
44
HSBC Small Cap Equity Fund - performance
Past performance may or may not be sustained in the future,
Please Note :NA means not available.
ICRA MFI Explorer, Data as on 30 September 2020
11 Pursuant to the circular issued by SEBI on ‘Categorization and Rationalization of the Schemes, there has been change in the fundamental attribute(s) of the aforesaid scheme
including change in the benchmark to S&P BSE 250 Small Cap Index effective from Mar 14, 2018. The launch date of the S&P BSE 250 Small Cap Index (INR) is November 30, 2017
whereas the inception date of the scheme is May 19, 2005. All information presented prior to the index launch date is back-tested which is available from Mar 31, 2008. The
corresponding benchmark returns since inception of the scheme is not available. All index data is available on the website ofAsia Index Pvt. Ltd. a joint venture between BSE Ltd. and
S&PDow Jones Indices LLC. (source: http://www.asiaindex.co.in).
The performance details provided herein are of other than Direct Plan - Growth Option. Returns on Rs.10,000 are point-to-point returns for the specific time period, invested at the start of
the period. The returns for the respective periods are provided as on last available NAV of September 2020 for the respective Schemes. Returns 1 year and Above are Compounded
Annualised. Load is not taken into consideration for computation of performance. Different plans shall have a different expense structure. The expenses of the Direct Plan under the
Scheme will be lower to the extent of the distribution expenses / commission charged to the Other than Direct Plan. The performance data of the scheme(s) managed by the
respective Fund Manager which has/have not completed 1 year is not provided. Considering the varying maturities of the close ended schemes, the performance of close-ended
schemes is not provided as it is strictly not comparable with that of open ended schemes.
Past performance may or may not be sustained in the future. Refer note below.
The said Fund is managed by Ankur AroraEffective (05 Aug 2019)
Funds Managed by Ankur Arora (Total Schemes Managed 1)
HSBC Small Cap Equity Fund
Incep
tion
Date
: 19-M
ay-0
5
Fund / Benchmark
(Value of `10,000 invested)
1 Year 3 Years 5 Years Since Inception
Amount in
`Returns
(%)
Amount in
`Returns
(%)
Amount in
`Returns
(%)
Amount in
`Returns
(%)
HSBC Small Cap Equity Fund 10,545 5.43 8,754 -4.33 12,140 3.95 47,149 10.61
S&P BSE 250 Small Cap Index TRI
(Scheme Benchmark) 1110,719 7.17 8,604 -4.88 12,681 4.86 NA NA
Nifty 50 TRI (Standard Benchmark) 9,903 -0.97 11,921 6.02 15,064 8.53 68,598 13.34
45
HSBC Small Cap Equity Fund – Key features
Benchmark Index S&P BSE 250 Small Cap Index TRI
Minimum Application Amount
Lump sum = INR 5,000, SIP = INR 500
Options Growth, Dividend (Payout & Dividend Reinvestment)
Load StructureEntry Load – Nil;
Exit Load 4 – 1% if redeemed / switched out within 1 year from allotment
SIP/STP/SEP SIP/STP/SEP available
Fund Manager Ankur Arora
Investment Objective
To generate long term capital growth from an actively managed portfolio of equityand equity related securities of predominantly small cap companies. However, itcould move a portion of its assets towards fixed income securities if the fundmanager becomes negative on the Indian equity markets. However, there can beno assurance or guarantee that the investment objective of the scheme would beachieved.
4 Applicable with effect from 14 March, 2018, In respect of each purchase /switch-in of Units, an Exit Load of 1% is payable
if Units are redeemed / switched-out within 1 year from the date of allotment, No Exit Load will be charged, if Units are
redeemed/switched-out after 1 year from the date of allotment.
46
HSBC Multi Cap Equity Fund (HMEF)Multi cap fund - An open ended equity scheme investing across large cap, mid cap, small cap stocks
Multi Cap strategy
47
Largecap + Midcap + Smallcap = Multi Cap advantage
Case for Multi Cap Funds
• Multi Cap positioning can bring in performance consistency with the combination of Large, Mid and Small Caps as the investment scenario changes
Performance
• Multi Caps show relatively moderate volatility
Volatility
• Multi Cap investment offers combination of stable as well as accelerated earnings
Earnings growth
• Well research Large Caps have visibility on earnings growth
• Mid & Small Caps may subject to the market mis-appraisal and mis-pricing as they are under researched stocks
Well-researched and under-researched
• Support stock valuations in up as well as down trend
• Offers opportunity to accumulate midcaps at lower valuations
Well-owned and
under owned
• Mid Caps and Small Caps may offer valuation discount on account of under-research characteristics
Valuation
• While Large Caps can achieve economies of scale, Mid & Small Caps may offer relatively better growth / performance
Economies of scale and alpha
Mutual fund investments are subject to market risks, read all scheme related documents carefully. Past performance may or may not sustain and doesn’t guarantee the future performance
Multi Cap funds offer Triple Advantage
48
Bringing performance balance
ACE MF, HSBC Global Asset Management , data as of 31 December 2019
Largecaps investment support the overall portfolio with stable growth, while Mid and Small Caps help
to generate high alpha
– Largecap and Midcap stocks generally do not perform in similar time periods
– The need for the all season performance could be achieved with the flavor of combination of Large-Mid-
Small-caps in the portfolio
– Changing investment conditions call for active re-allocation between Large, Mid and Smallcaps
– Flexicap funds shift asset allocation between Large-Mid-Small-caps to gain from the periodic favourable
investment scenario for the stocks belonging to particular market cap segment
Multi cap strategy can outperform in the different time periods
-80
-60
-40
-20
0
20
40
60
80
100
120
Retu
rns %
Year
Large Cap Mid Cap
2005 2006 2010 2011 2014 2016 20182012 2013 2015 20172007 2008 2009 2019
49
Bringing performance consistency
Source – ACE MF, Chart representation - Large cap – S&PBSE Sensex, Mid Cap – S&P BSE Midcap, Small Cap – S&P BSE Small Cap index, HSBC Global Asset Management , data as of 31 Dec 2019
Switching makes sense between anticipated winners based on favourable or unfavorable market
conditions
– Large cap stocks have outperformed / fallen less in 2006, 2008, 2010, 2011, 2013, 2018 and 2019
– Midcap stocks have outperformed in 2012, 2015 & 2016
– Small cap stocks were the best performers in the year 2005, 2007, 2009, 2014 & 2017
– It makes sense to invest across market caps with multi cap investment strategy
Large, Mid, Small Caps outperform in the different time periods
-100.0
-50.0
0.0
50.0
100.0
150.0
Large Cap Mid Cap Small Cap
2005 2007 2010 2011 2013 2015 20172006 2008 2009 2012 2014 2016 2018 2019
50
Advantage Multi Cap strategy
Source – ACE MF, Data as of 31 December 2019
Riding with leaders with changing market conditions
– Large cap stocks have outperformed / fallen less in 2006, 2008, 2010, 2011, 2013, 2018 and 2019
– Midcap stocks have outperformed in 2012, 2015 & 2016
– Small cap stocks were the best performers in the year 2005, 2007, 2009, 2014 & 2017
– Investing across market caps with multi cap investment strategy at favourable times could be rewarding
Multi Cap portfolio offers an exposure to a potential winner across investment cycles
MFI ICRA, Chart representation - Large cap – S&PBSE Sensex, Mid Cap – S&P BSE Midcap, Small Cap – S&P BSE Small Cap index, HSBC Global Asset Management , data as of 31 Dec 18
-100.0
-50.0
0.0
50.0
100.0
150.0
Large Cap Mid Cap Small Cap Flexi Cap
2005 2007 2010 2011 2013 2015 20172006 2008 2009 2012 2014 2016 2018 2019
51
HSBC Multi Cap Equity Fund
Multi cap fund - An open ended equity scheme investing across large cap, mid cap, small cap stocks
HMEF invests in dominant players across market caps
Large caps support the
overall portfolio with
consistent growth &
stability, while Mid and
Small caps help to
generate alpha.
Potential to deliver across
time periods by identifying
and positioning for
favourable investment
cycles.
HMEF employs market-
cap diversification
approach comprising of
dominant players, which
can navigate market
cycles effectively with
focus on quality stocks.
Power of 3Focus on favourable
cycles
HSBC Multi Cap
Equity Fund (HMEF)
52
HSBC Multi Cap Equity Fund 1 , 2
Fund strategy
HSBC Multi Cap Equity Fund maintains a portfolio that comprises of combination of Large, Mid, Small Cap stocks.
Fund strategy is centered around superior quality businesses that generate sustainable growth.
Disciplined, repeatable approach to generate long-term growth with the flavor of alpha. Focus on basket of quality stocks at an inexpensive
valuations that can deliver stable growth while some get re-rated v/s high valuation popular stocks.
Avoiding accidents by ignoring stocks with poor corporate governance, inefficient capital allocators, and poor quality of business.
7 As on 30 September 2020 of Growth option. During the same period, scheme benchmark (Nifty 500 TRI) has moved by 7.9x to Rs. 79,581 from Rs.10,000 and delivered return of 13.30%. Please
refer page no. 62 for detailed performance of HSBC Multi Cap Equity Fund. 8 During the same period, scheme benchmark (Nifty 500 TRI) has delivered return of 10.95%
Past performance may or may not be sustained in the future. 1 Pursuant to the circular issued by SEBI on ‘Categorization and Rationalization of the Schemes, there has been change in the fundamental attribute(s) of the aforesaid effective from Mar 14, 2018. 2 The benchmark was changed w.e.f. 14 March 2018 as a more suitable benchmark was identified which better matched the portfolio strategy.
10.59%SIP returns since
inception 8
8.3Xsince inception 7
INR 83,155Value of INR 10,000 since
inception 7
13.6%CAGR since inception 7
53
Fund Manager Neelotpal Sahai
Benchmark Nifty 500 TRI
Standard Deviation 3 23.23%
Beta / Sharpe 3 / 4 1.01/-0.04
Portfolio Turnover 6 1.04
Inception Date 24 February 2004
Portfolio Characteristics FundNifty 500
TRI
Number of holdings 40 500
Price to book 5 3.51 2.58
Dividend yield 5 0.68 1.27
Price to earnings 5 36.12 44.19
Return on Equity (ROE (%)) 5 10.67 8.15
Weighted average market cap of the fund: Rs.3,24,094 Cr
HSBC Multi Cap Equity Fund 1 , 2
An open ended equity scheme investing across large cap, mid cap, small cap stocks
HSBC Global Asset Management, data as of 30 September 2020
• Standard deviation is a statistical measure of the range of an investment's performance. When a mutual fund has a high standard deviation, its means its range of performance is wide, implying greater volatility.
• Beta is a measure of an investment's volatility vis-a-vis the market. Beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 implies that the security's price will be more volatile than
the market.
• Portfolio turnover is a measure of how frequently assets within a fund are bought and sold by the managers.
• Price to Book (PB) and Price to Earnings (PE) are stocks valuation parameters relative to its earnings
• Dividend Yield is a financial ratio that indicates how much a company pays out in dividends each year relative to its share price.
• Return on equity (ROE) is a measure of profitability that calculates how much of profit a company generates on shareholders' equity.
• The weighted average market capitalization is a fund’s portfolio weighted by the market capitalization of each stock in the portfolio. In such a weighting companies with large weight account for a greater portion of the portfolio.
1 Pursuant to the circular issued by SEBI on ‘Categorization and Rationalization of the Schemes, there has been change in the fundamental attribute(s) of the aforesaid effective from Mar 14, 2018. 2 The benchmark was changed w.e.f. 14th March 2018 as a more suitable benchmark was identified which better matched the portfolio strategy3 Statistical Ratios disclosed are as per monthly returns (Annualized) for the last 3 years.4 Risk free rate: 4.81% (FIMMDA-NSE MIBOR)5 PE Trailing (weighted average method), Trailing 12 month Price to earnings adjusted for negative earnings, Weighted average method, PB – Price to book value, Trailing 12 month Price to earnings,
Index method aggregation. 6 Portfolio Turnover Ratio is computed for the last 12 months, Dividend Yield, ROE6 Portfolio Turnover Ratio is computed for the last 12 months
54Data as at September 2020
HMEF portfolio strategy
Our fund’s philosophy is to invest in dominant businesses having scalable potential and that have reasonable
valuations. Over the past few years, we’ve witnessed a trend of profit pool consolidating with the dominant players
in respective sectors/industries.
We believe that the trend will accelerate as the current disruption has higher magnitude as well as it encompasses
more sectors. This has increased our resolve to be true to our philosophy.
We believe that these stocks would gain market share in the sluggish phase of the economy and gain revenue
traction when the economy returns to normalcy. From a medium to long term perspective, the current phase of
disruption shall also pave way for accelerated digital adoption by consumers as well as enterprises.
We see telecom, internet economy, ecommerce, technology vendors etc., to benefit from this disruption. Another
long term theme is that of diversification of the global supply chain due to ‘China + 1’ strategy which could be
adopted by corporates as well as economies and India could stand to benefit out of that.
In the short term as we see the recovery phase playing out for corporate India, growth will be scarce and the
balance sheet strength will come to fore.
Therefore, we are positively disposed towards companies with relatively higher earnings resilience and ones with
stronger balance sheets. As a result, we hold a positive view on Healthcare and Telecom sectors.
We are also positive on Cement and Specialty chemicals, owing to strong demand recovery in the former while the
latter being a beneficiary of the global supply chain diversification away from China.
Mutual fund investments are subject to market risks, read all scheme-related documents carefully. Past performance may or may not sustain and doesn’t guarantee the future performance
A trend of profit pool consolidating with the dominant players in respective sectors/industries
55Data as at September 2020
HMEF portfolio strategy
We are neutral on Financials, Consumer Staples and Technology sectors. Within Financials, we are positive on large
private banks and select large NBFCs and negative on PSU Banks, old or small private banks, and other NBFCs.
Our positive stance on select lending institutions is driven by our assessment that the market is currently assuming
that the loan slippages and consequent credit costs to be much higher than what is being guided by banks on account
or what the market is ascribing to the rest of the economy.
Hence, we think that there is a relative divergence in the assessment of risks and the valuations of private lending
financials/banks. So this could lead to re-rating potential owing to better delivery on asset quality parameters. In
Staples, we have moderated our earlier positive stance to neutral owing to rich valuations and lack of positive triggers
from hereon.
Our neutral position in Technology sector is on account of the sector’s ability to navigate the current phase much
better and being a beneficiary of shift to digital and increased demand for technology in the medium term. We
continue to have a negative view on Industrials, Energy and Utilities.
We believe that private sector capex as well as government capex will get delayed and hence we are not constructive
on sectors that are dependent on capex for revival. Our negative view of the energy companies is due to subdued
demand, weak profitability ratios, and volatile prices (which are not in control of the companies).
Mutual fund investments are subject to market risks, read all scheme-related documents carefully. Past performance may or may not sustain and doesn’t guarantee the future performance
Neutral on Financials, Consumer Staples and Technology sectors
56
Current key focused sectors in HMEF
Data as at September 2020
Sectors Comments
Healthcare
Our positive stance is on account of the earnings resilience coupled with revenue visibility. Over the medium term,
we believe that the profit pool of pharma companies will improve owing to reduction in fixed costs, secular
domestic market growth and US business showing signs of improvement. Most of the companies have
significantly deleveraged their balance sheets which will aid earnings and returns profile going ahead. Valuations
can improve further as the sector offers mid-teens earnings growth visibility and improving return ratios. Our
exposure to the sector, is primarily through companies having exposure to US generic business. We also own
domestic focused businesses with a higher degree of vertical integration.
Materials
We have a preference for cement and we have a negative view on global cyclicals. Our negative stance global
cyclicals is due to weak demand (ex-China) and volatile prices. Our preference for cement is due to a gradually
improving demand scenario (driven by rural housing and some government projects getting fast tracked). Further,
capacity utilisation for the cement sector is expected to improve (on account of delay in new capacity additions),
which can keep prices firm in various regional markets. We have a positive view on Specialty chemicals space, as
we believe it will benefit on demand arising from end user industries like agrochemicals, pharma etc.
Diversification of global supply chain away from China could further benefit Indian companies as they are already
a part of the global supply chain. Our exposure to the sector is through market leaders with a good track record in
terms of delivering consistent revenue growth and with order book visibility.
Communication
Services
Telecom sector is a beneficiary of industry consolidation and improving pricing power. As a result, the profitability
of the sector is anticipated to come back strongly. We believe that players who are better positioned on network /
spectrum along with better access and ability to deploy future capital, will have dominance going forward. The
long pending AGR liability issue has also been put to rest after the SC ruling and it is no longer an overhang.
Additionally, the sector is a beneficiary from the pandemic disruption, which is leading to higher data usage. Given
the accelerated digital adoption across users and industries coupled with behavioural changes; the demand for
telecom services is expected to remain robust and this should increase the wallet share of players. Our
preference is for sector leaders, which also have stronger balance sheet and have shown better execution on the
ground.
Sector allocation: In the fund we are overweight in Healthcare, Communication Services and Materials sectors while having a
neutral position in Consumer Staples, Technology and Financials amongst the key sectors. Within Materials, our exposures are into
Cement and Specialty Chemicals space, latter being a beneficiary of the global supply chain diversification. In this fund we are
underweight in Industrials, Energy, Consumer Discretionary and Utilities sectors.
57
HSBC Multi Cap Equity Fund – Sector allocation
Sector weightings (%) Active sector weightings (%)
Active sector weightings - The difference in allocation of an individual security or portfolio segment between portfolio and the benchmark. Average weight, Attribution for 1 month, HSBC Global Asset
Management, Data as on 30 September 2020
29.8
13.3
10.8
10.6
10.3
8.6
6.6
4.1
3.4
1.5
0.9
0 5 10 15 20 25 30 35
Financials
Information Technology
Consumer Staples
Health Care
Materials
Energy
Consumer Discretionary
Industrials
Communication Services
Real Estate
Not Classified
-5.00-4.00-3.00-2.00-1.000.001.002.003.004.00
Hea
lth
Ca
re
Ma
teria
ls
Rea
l E
sta
te
Con
su
me
r S
tap
les
Fin
an
cia
ls
Not
Cla
ssifie
d
Com
mu
nic
ation
Se
rvic
es
Info
rmation
Te
ch
no
logy
Indu
str
ials
Con
su
me
r D
iscre
tion
ary
Utilit
ies
En
erg
y
58
Top stock weightings in portfolio (%)
HSBC Multi Cap Equity Fund - Stock positioning
HSBC Global Asset Management, Data as of 30 September 2020 Past performance may or may not be sustained in the future, The returns provided above have been rounded off and hence there may be
minor differences between point-to-point returns vis-a-vis returns indicated above. Average weight, Attribution for 1 year.
9.6
8.6
7.1
6.2
5.4
4.4
4.0
3.3
3.1
2.6
0 2 4 6 8 10 12
HDFC BANK LIMITED
RELIANCE INDUSTRIES LTD
ICICI BANK LTD
INFOSYS LTD
HINDUSTAN UNILEVER LTD
HCL TECHNOLOGIES LTD
BAJAJ FINANCE LTD
AXIS BANK LTD
MARUTI SUZUKI INDIA LTD
BHARTI AIRTEL LTD
59
0
200
400
600
800
1000
1200
1400
1600
Se
p-1
4
Ma
r-1
5
Se
p-1
5
Ma
r-1
6
Se
p-1
6
Ma
r-1
7
Se
p-1
7
Ma
r-1
8
Se
p-1
8
Ma
r-1
9
Se
p-1
9
Ma
r-2
0
Se
p-2
0
Vinati Organics
0
200
400
600
800
1000
1200
1400
Jul-
07
Jul-
08
Jul-
09
Jul-
10
Jul-
11
Jul-
12
Jul-
13
Jul-
14
Jul-
15
Jul-
16
Jul-
17
Jul-
18
Jul-
19
Jul-
20
HDFC Bank
0
1000
2000
3000
4000
5000
6000
Jan
-15
Jun
-15
Nov-1
5
Ap
r-16
Se
p-1
6
Fe
b-1
7
Jul-
17
Dec-1
7
Ma
y-1
8
Oct-
18
Ma
r-1
9
Au
g-1
9
Jan
-20
Jun
-20
Bajaj Finance
Bajaj Finance
– One of the financial services
company has moved up by more
than 9 times since initiated
HSBC Multi Cap Equity Fund
Track record of key stock picks
HMEF Entry
Point
Stock growth
of 9.4X in
HMEF portfolio
Bloomberg, Data as at September 2020
The stock named above is for illustration purposes only and does not constitute investment research, investment advice or a recommendation to any reader of this content to buy or sell investment product.
Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies that may have been discussed in this report and
should understand that the views regarding future prospects may or may not be realised.
Currently in the portfolio, does not guarantee the position in the future. (Please refer latest portfolio for the reference)
Past performance may or may not be sustained in the future, Past performance is not indicative of future performance.
The returns provided above have been rounded off and hence there may be minor differences between point-to-point returns vis-a-vis returns indicated above.
HMEF Entry
Point
Stock growth
of 4.3X in
HMEF portfolio
HMEF Entry
Point
Stock growth
of 6.4X in HMEF
portfolio
HDFC Bank
– One of the private bank
from gained over 4X
since initiated
Vinati Organics
– The stocks has moved up
by 6x since initiated
60
HSBC Multi Cap Equity Fund - portfolio
Data as of 30 September 2020
61
HSBC Multi Cap Equity Fund - performance
Investment of Rs.10000/- 1Y (INR) 3Y (INR) 5Y (INR) Since Inception (INR)
HSBC Multi Cap Equity – Growth 9,821 10,974 14,496 209,306
Nifty 500 TRI 9,903 11,921 15,064 135,069
Alpha -82 -947 -568 74237
ICRA MFI Explorer, Data as on 30 September 2020. Past performance may or may not be sustained in the future, Please check the detailed performance on the slide number 63.
For other schemes performance managed by Neelotpal Sahai refer respective slides in this presentation 26, 100
The Fund offers flexible and convenient Systematic Investment Plan (SIP) facility. To illustrate the advantages of SIP investments, this is how your investments would have grown if you had invested say
Rs10,000 systematically on the first Business Day of every month over a period of time in the Growth Option of Respective Scheme. The returns are calculated by XIRR approach assuming investment of
Rs10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows with correct allowance for the
time impact of the transactions.
Returns are of growth option. Returns above 1 year are Compounded Annualized. Standard benchmark is prescribed by SEBI and is used for comparison purposes. Returns on 10,000 are point-to-point
returns for the specific time period, invested at the start of the period. The returns provided above have been rounded off and hence there may be minor differences between point-to-point returns vis-a-vis
returns indicated above. Different plans shall have a different expense structure. The performance details provided herein are of other than Direct plan. Scheme count for the total schemes managed by
the Fund Managers does not include closed ended scheme.
Performance of the respective benchmark is calculated as per the Total Return Index (TRI)
Pursuant to the circular issued by SEBI on ‘Categorization and Rationalization of the Schemes, there has been change in the fundamental attribute(s) of the aforesaid effective from
Mar 14, 2018.
SIP performanceP2P performance
0%
2%
4%
6%
8%
10%
12%
14%
16%
1Y 3Y 5Y Since Inception
HSBC Multi Cap Equity - Growth Nifty 500 TRI
0%
2%
4%
6%
8%
10%
12%
14%
1Y 3Y 5Y Since Inception
HSBC Multi Cap Equity - Growth Nifty 500 TRI
62
Rolling performance – HSBC Multi Cap Equity Fund
In the long term, probability of negative returns reduces and
create an opportunity to generate better risk adjusted returns
Methodology - example:
Note - Rolling returns are calculated since inception. As inception date is different for different fund so the returns of one fund is not comparable with other fund.
10 years rolling returns for HSBC Multi Cap Equity Fund are calculated using the data since its inception i.e. 24 Feb 2004 to 30 September 2020.
This calculation has number of sets of two NAVs starting from 19 May 2005 to 9 Dec 2012, 11 Dec 2002 to 10 Dec 2012,..... and so on up to 1 Apr 2010 to 30 September 2020. The CAGR returns are
calculated for each of these number of NAV sets. The maximum, average and minimum returns number is taken out from these number of returns set. From this set of number of CAGR returns other
numbers are extracted such as the number of times where the fund has delivered less than Zero, more than 7%, 10% and more than 15% has been identified and converted into % times. Similar daily
rolling returns are calculated for other 5, 3 and 1 year periods and above data is extracted.
Source ACE MF – as at Sep 2020, Nifty 500 TRI
^ The above table shows the performance on daily rolling returns basis for respective periods (1, 3, 5 and 10 years) since the inception date of the scheme. The maximum, minimum and average
returns are calculated on the basis of total observations for respective rolling period.
TRI data of Standard Benchmark is not available since inception of the scheme. Standard Benchmark performance is calculated using Composite CAGR of S&P BSE 200 PRI values from date 24-
Feb-2004 to date 28-June-2007 and TRI values since date 29-June-2007.
Rolling return period for HSBC Multi Cap Equity Fund – 24 Feb 04 – 30 September 2020
Please check the detailed performance on the slide number 63 in SEBI prescribed performance format of the above fund. Past performance may or may not be sustained in the future.
For other schemes performance managed by Neelotpal Sahai refer respective slides in this presentation on page no 26 and 100
Returns - Daily Rolling CAGR%
Since Inception ^
Period (Y=Years) 10Y 5Y 3Y 1Y 10Y 5Y 3Y 1Y
Minimum returns% 5.8 -3.6 -9.7 -56.4 5.0 -1.4 -9.0 -59.2
Maximum returns% 19.8 24.9 52.7 110.2 19.3 26.2 49.7 118.5
Average Returns 12.6 12.4 13.5 17.0 12.2 12.3 13.4 17.1
Negative returns % times 0.0% 2.9% 10.1% 26% 0.0% 1.4% 8.2% 22%
Returns more than 7% (% times) 99.5% 73.0% 64.1% 61% 97.9% 81.0% 71.8% 64%
Returns more than 10% (% times) 78.3% 67.4% 51.5% 55% 69.7% 63.8% 62.0% 56%
Returns more than 15% (% times) 29.6% 45.0% 37.5% 47% 26.6% 34.4% 34.0% 47%
HSBC Multi Cap Equity Fund(G)Nifty 500
(Benchmark )
63
HSBC Multi Cap Equity Fund - performance
Past performance may or may not be sustained in the future,
For other schemes performance managed by Neelotpal Sahai refer respective slides in this presentation on page no. 26 and 100
Returns are of growth option. The returns for the respective periods are provided as on 30 September 2020. Returns above 1 year are Compounded Annualized. Standard benchmark is prescribed by
SEBI and is used for comparison purposes. Returns on 10,000 are point-to-point returns for the specific time period, invested at the start of the period. The returns provided above have been rounded off
and hence there may be minor differences between point-to-point returns vis-a-vis returns indicated above. Different plans shall have a different expense structure. The performance details provided
herein are of other than Direct plan. Scheme count for the total schemes managed by the Fund Managers does not include closed ended scheme.
ICRA MFI Explorer, Data as on 30 September 2020
Performance of the respective benchmark is calculated as per the Total Return Index (TRI)
The benchmark of the scheme has been changed from S&P BSE 200 TRI to NIFTY 500 TRI with effect from November 18, 2019.
Pursuant to the circular issued by SEBI on ‘Categorization and Rationalization of the Schemes, there has been change in the fundamental attribute(s) of the aforesaid effective from 14 March 2018.
Past performance may or may not be sustained in the future. Refer note below.
The said Fund is managed by Neelotpal Sahai Effective (27 May 2013)
Funds Managed by Neelotpal Sahai (Total Schemes Managed 5)
HSBC Multi Cap Equity Fund
Incep
tion
Date
: 24-F
eb
- 04
Fund / Benchmark
(Value of `10,000 invested)
1 Year 3 Years 5 Years Since Inception
Amount in
`Returns
(%)
Amount in
`Returns
(%)
Amount in
`Returns
(%)
Amount in
`Returns
(%)
HSBC Multi Cap Equity Fund 10,082 0.82 10,003 0.01 13,482 6.15 83,155 13.60
Scheme Benchmark (Nifty 500 TRI) 1 10,102 1.02 11,241 3.97 14,912 8.31 79,581 13.30
Additional Benchmark (Nifty 50 TRI) 9,903 -0.97 11,921 6.02 15,064 8.53 76,714 13.05
64
HSBC Multi Cap Equity Fund – Key features
Benchmark Index S&P BSE 200 TRI
Minimum Application Amount Lump sum = INR 5,000, SIP = INR 500
Options Growth, Dividend (Payout & Dividend Reinvestment)
Load StructureEntry Load – Nil;
Exit Load 4 – 1% if redeemed / switched out within 1 year from allotment
SIP/STP/SEP SIP/STP/SEP available
Fund Manager Neelotpal Sahai
Investment Objective
Seeks long term capital growth through investments across all marketcapitalisations, including small, mid and large cap stocks. The fund aims to bepredominantly invested in equity & equity related securities. However it could movea significant portion of its assets towards fixed income securities if the fundmanager becomes negative on equity markets. However, there can be noassurance or guarantee that the investment objective of the scheme would beachieved.
4 Applicable with effect from 14 March, 2018, In respect of each purchase /switch-in of Units, an Exit Load of 1% is payable
if Units are redeemed / switched-out within 1 year from the date of allotment, No Exit Load will be charged, if Units are
redeemed/switched-out after 1 year from the date of allotment.
65
HSBC Infrastructure Equity Fund (HIEF)Sector Fund –An open ended equity scheme following Infrastructure theme.
Thematic strategy
66
• Infrastructure sector has potential to deliver above average performance in an economic up-cycle
Performance
• Government has increased focused on higher infra spending
Government spending
• Cyclicals are exhibiting strong recovery driven by factors such as a depressed base, interest rate moderation and a recovery in commodity prices
Earnings growth
• With governments push for Make in India sectors such as defence provide huge potential and more sectors to gain
Make in India
• Focus on connecting India more effectively and providing for needs such as roads, Airports, Power, Railways and Housing
Infrastructure Needs
• Environmental Clearances streamlined
No more project delays
• Public Private Partnership (PPP) to further accelerate infrastructure growth
PPP
Infrastructure advantage
Case for Infrastructure Equity Funds
Mutual fund investments are subject to market risks, read all scheme related documents carefully. Past performance may or may not sustain and doesn’t guarantee the future performance
A capable engine for the growth of your portfolio
67
Government led initiatives for infrastructure developments
Source: IBEF, Bloomberg, December 2019
Focus on building smart and sustainable infrastructure; key driver of India’s economic growth
• Potential for catapulting India to 3rd largest construction globally
Housing for all by 2022
• Availability of 24 X 7 power to all, One nation one grid, Sobhagya scheme for electricity connection, scheme for electrification of villages (DDUGJY)
• Achieve 175 GW renewable energy generation capacity by 2022
Energy
• India is the world's largest importer of defence equipment. India has heavily relied on foreign players
Defence
• Bharat broadband network to create national optical fiber network connecting 2.5 lakh gram panchayats across India
Digital Infrastructure
• Accorded status of infrastructure, to boost investments in this sector
Logistics
68
Government’s capex target and achievement
Source: Union Budget, NHAI, * Railways figure includes both Centre’s budgetary allocation & Railway’s planned capex, Roads and transportation only Bharatmala program
• Government’s actual spending on roads, rural – urban development and railways stands at Rs.10,570bn with average 98% achievement vs budget estimates (BE) between from FY15 to FY19.
• Expected spending over 5 years (FY20E to FY24E) is Rs.20,300bn for Roads, Urban development and Railways *
Government capex progress
High government spending on infrastructure to drive growth over a long term
274
99
443
100
494
99
611
99
773
98
0
100
200
300
400
500
600
700
800
900
Actu
al R
s.b
n
Achie
ved %
Actu
al R
s.b
n
Achie
ved %
Actu
al R
s.b
n
Achie
ved %
Actu
al R
s.b
n
Achie
ved %
Actu
al R
s.b
n
Achie
ved %
FY15 FY15 FY16 FY16 FY17 FY17 FY18 FY18 FY19 FY19
Road Transport & Highways Ministry
698
99
789
99
967
99
1086
99
1118
99
0
200
400
600
800
1000
1200
Actu
al R
s.b
n
Achie
ved %
Actu
al R
s.b
n
Achie
ved %
Actu
al R
s.b
n
Achie
ved %
Actu
al R
s.b
n
Achie
ved %
Actu
al R
s.b
n
Achie
ved %
FY15 FY15 FY16 FY16 FY17 FY17 FY18 FY18 FY19 FY19
Rural Development Ministry
102 99
153
101
259
89
305
89
406
95
0
50
100
150
200
250
300
350
400
450
Actu
al R
s.b
n
Achie
ved %
Actu
al R
s.b
n
Achie
ved %
Actu
al R
s.b
n
Achie
ved %
Actu
al R
s.b
n
Achie
ved %
Actu
al R
s.b
n
Achie
ved %
FY15 FY15 FY16 FY16 FY17 FY17 FY18 FY18 FY19 FY19
Urban Development Ministry
289
96
350
109
453
98
452
108
549
99
0
100
200
300
400
500
600
Actu
al R
s.b
n
Achie
ved %
Actu
al R
s.b
n
Achie
ved %
Actu
al R
s.b
n
Achie
ved %
Actu
al R
s.b
n
Achie
ved %
Actu
al R
s.b
n
Achie
ved %
FY15 FY15 FY16 FY16 FY17 FY17 FY18 FY18 FY19 FY19
Railways Ministry
69
HSBC Infrastructure Equity Fund (HIEF)
Why Invest?
Given the Government’s thrust on infrastructure, we believe there is a multi-year investment opportunity across infrastructure
businesses in India
Past legacy issues are being eliminated through government efforts
Global multilateral funding like Japan International Cooperation Agency (JICA) and International Monetary Fund (IMF) and fall
in interest rates is improving economic viability of several projects
We are still in the early stages of a long drawn infrastructure investment cycle
Current Positioning
Being thematic infrastructure focused, the fund is overweight on Construction, Industrials sector
HIEF can invest across the market capitalisation within the infrastructure theme
Infrastructure sector outlook is positive with government spending on roads, railways, power, rural infrastructure besides
expected contribution from private sector over time
Investment Philosophy
Follows a comprehensive equity investment philosophy which takes into account profitability of the companies in addition to
their respective valuations and cash flow generation capability
Invests in themes that play an important role in and/or benefit from India’s infrastructure development
In a standard investment environment, aim to invest at least 90% of the funds in the infrastructure sector
Gain from the early stages of a long drawn infrastructure investment cycle in India
70
HSBC Infrastructure Equity Fund
Sector Fund – An open ended equity scheme following Infrastructure theme.
Aims to be a capable engine for the growth of your portfolio
Infrastructure sector has
the potential to deliver
above average
performance in an
economic up-cycle.
With an increased focus
on higher infra spending
and a need to connect
India more effectively to
provide basic
infrastructure needs make
this theme a potential
leader.
HIEF aims to be a capable
engine for the growth of
your portfolio by investing
superior quality
infrastructure businesses.
High potential Government focusHSBC Infrastructure
Equity Fund (HIEF)
71
HSBC Infrastructure Equity Fund (HIEF) 1
Fund strategy
Being thematic infrastructure focused, the fund is overweight on Construction, Industrials, and Transportation sector
Fund strategy is centered around superior quality businesses that generate sustainable growth
Disciplined, repeatable approach to generate long-term alpha – good stocks at inexpensive valuations that can get re-rated v/s popular
stocks at high valuations
Avoiding accidents by ignoring stocks with poor corporate governance, inefficient capital allocators, and poor quality of business
7 As on 30 September 2020 of Growth option. The launch date of the S&P BSE India Infrastructure Index (INR) is May 19, 2014 whereas the inception date of the scheme is Feb 23, 2006.
Information presented for 5 year return is back-tested which is available from Mar 31, 2008. During the same period of 5 years, scheme benchmark (S&P BSE India Infrastructure TRI) has moved by
0.9x to Rs 9,801 from Rs 10,000 and delivered return of -0.40%. 8 During the same period of 5 years, scheme benchmark (S&P BSE India Infrastructure TRI) has delivered SIP return of -8.10%. Past
performance may or may not be sustained in the future. Refer slide 79 for detailed performance.
1 Pursuant to the circular issued by SEBI on ‘Categorization and Rationalization of the Schemes, there has been change in the fundamental attribute(s) of the aforesaid effective from Mar 14, 2018.
Please refer page no. 86 for detailed performance of HSBC Infrastructure Equity Fund.
0.7xin 5 years 7
-10.18%SIP returns in 5 years 8
Rs.7,482Growth of Rs. 10,000 in 5
years 7
-5.63%CAGR over 5 years 7
72
Fund Manager Gautam Bhupal
BenchmarkS&P BSE India Infrastructure
Index TRI
Standard Deviation 3 29.58%
Beta / Sharpe 3 / 4 1.07 / -0.58
Portfolio Turnover 6 0.33
Inception Date 23 February 2006
Portfolio Characteristics FundS&P BSE India
Infra Index TRI
Number of portfolio holdings 31 30
Price to book 5 1.85 0.98
Dividend yield 5 1.40 5.00
Price to earnings 5 22.13 13.55
Return on Equity (%) 5 11.87 10.93
Weighted average market cap of the fund: Rs.1,75,774 Cr
HSBC Infrastructure Equity Fund 1
An open ended equity scheme following Infrastructure theme
HSBC Global Asset Management, Data as of 30 September 2020
• Standard deviation is a statistical measure of the range of an investment's performance. When a mutual fund has a high standard deviation, its means its range of performance is wide, implying greater volatility.
• Beta is a measure of an investment's volatility vis-a-vis the market. Beta of less than 1 means that the security will be less volatile than the market. A beta > 1 implies that the security's price will be more volatile than the market.
• Portfolio turnover is a measure of how frequently assets within a fund are bought and sold by the managers.
• Price to Book (PB) and Price to Earnings (PE) are stocks valuation parameters relative to its earnings
• Dividend Yield is a financial ratio that indicates how much a company pays out in dividends each year relative to its share price.
• Return on equity (ROE) is a measure of profitability that calculates how much of profit a company generates on shareholders' equity.
• The weighted average market capitalization is a fund’s portfolio weighted by the market capitalization of each stock in the portfolio. In such a weighting companies with large weight account for a greater portion of the portfolio.
1 Pursuant to the circular issued by SEBI on ‘Categorization and Rationalization of the Schemes, there has been change in the fundamental attribute(s) of the aforesaid effective from Mar 14, 2018. 3 Statistical Ratios disclosed are as per monthly returns (Annualized) for the last 3 years.4 Risk free rate: 4.81% (FIMMDA-NSE MIBOR)5 PE Trailing (weighted average method), Trailing 12 month Price to earnings adjusted for negative earnings, Weighted average method, PB – Price to book value, Trailing 12 month Price to earnings,
Index method aggregation. 6 Portfolio Turnover Ratio is computed for the last 12 months, Dividend Yield, ROE6 Portfolio Turnover Ratio is computed for the last 12 months
73
HSBC Infrastructure Equity Fund - Sector positioning
Sector weightings (%) Active sector weightings (%)
Active sector weightings - The difference in allocation of an individual security or portfolio segment between portfolio and the benchmark. Average weight, Attribution for 1 month, HSBC Global Asset
Management, Data as of 30 September 2020
1.1
2.2
2.3
2.5
4.4
9.7
14.8
17.6
45.3
0 10 20 30 40 50
ConsumerDiscretionary
Not Classified
Financials
InformationTechnology
Real Estate
Utilities
Energy
Materials
Industrials
17.6
4.4 3.7 2.5 2.2 1.1
-5.3-7.2
-19.0-25
-20
-15
-10
-5
0
5
10
15
20
Ma
teria
ls
Re
al E
sta
te
En
erg
y
Info
rmation
Te
ch
no
logy
Not
Cla
ssifie
d
Con
su
me
r D
iscre
tion
ary
Fin
an
cia
ls
Indu
str
ials
Utilit
ies
74
Top stock weightings in portfolio (%)
HSBC Infrastructure Equity Fund - Stock positioning
Past performance may or may not be sustained in the future, The returns provided above have been rounded off and hence there may be minor differences between point-to-point returns vis-a-vis
returns indicated above. Average weight, Attribution for 1 year HSBC Global Asset Management, Data as of 30 September 2020.
9.64
8.57
8.15
6.87
6.48
5.17
4.32
3.24
3.21
3.13
0.00 2.00 4.00 6.00 8.00 10.00 12.00
RELIANCE INDUSTRIES LTD
ADANI PORTS AND SPECIAL ECON
LARSEN & TOUBRO LTD
APL APOLLO TUBES LTD
NTPC LTD
KEI INDUSTRIES LTD
ULTRATECH CEMENT LTD
GUJARAT GAS LTD
BHARAT PETROLEUM CORP LTD
KNR CONSTRUCTIONS LTD
75
0
1000
2000
3000
4000
5000
6000
7000O
ct-
10
Ma
y-1
1
Dec-1
1
Jul-
12
Fe
b-1
3
Se
p-1
3
Ap
r-14
Nov-1
4
Jun
-15
Jan
-16
Au
g-1
6
Ma
r-1
7
Oct-
17
Ma
y-1
8
Dec-1
8
Jul-
19
Fe
b-2
0
Se
p-2
0
Schaeffler
HSBC Infrastructure Equity FundTrack record of key stock picks
Data as at September 2020, Bloomberg
The stock named above is for illustration purposes only and does not constitute investment research, investment advice or a recommendation to any reader of this content to buy or sell investment product.
Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies that may have been discussed in this report and
should understand that the views regarding future prospects may or may not be realised.
Currently in the portfolio, does not guarantee the position in the future. (Please refer latest portfolio for the reference)
Past performance may or may not be sustained in the future, Past performance is not indicative of future performance.
The returns provided above have been rounded off and hence there may be minor differences between point-to-point returns vis-a-vis returns indicated above.
Stock growth
of 4.4X in
HIEF portfolio
Schaeffler India (Fag Bearing)
– Auto ancillary company gained over 4X since initiated
HIEF Entry Point
76
HSBC Infrastructure Equity Fund - portfolio
Data as on 30 September 2020
77
HSBC Infrastructure Equity Fund - performance
Investment of Rs.10000/- 1Y (INR) 3Y (INR) 5Y (INR) Since Inception (INR)
HSBC Infrastructure Equity Fund – Growth 8,765 5,848 12,140 13,260
S&P BSE India Infrastructure TRI (Benchmark) 8,008 6,826 12,681 NA
Alpha 757 -978 -541 NA
Past performance may or may not be sustained in the future. Refer slide 79 for SEBI format performance. For other schemes performance managed by the Fund Manager refer slide number
97, 100. Please Note :NA means not available. Data as on 30 Sep 2020, ICRA MFI Explorer ,
Pursuant to the circular issued by SEBI on ‘Categorization and Rationalization of the Schemes, there has been change in the fundamental attribute(s) of the aforesaid effective from Mar 14, 2018.
The Fund offers flexible and convenient Systematic Investment Plan (SIP) facility. To illustrate the advantages of SIP investments, this is how your investments would have grown if you had
invested say 10,000 systematically on the first Business Day of every month over a period of time in the Growth Option of Respective Scheme. The returns are calculated by XIRR approach
assuming investment of 10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given an initial and final value and a series of cash inflows and outflows
with correct allowance for the time impact of the transactions. .
The launch date of the S&PBSE India Infrastructure Index TRI (INR) is May 19, 2014 whereas the inception date of the scheme is Feb 23, 2006. Information presented for 5 year return is back-
tested which is available from Mar 31, 2008. The corresponding benchmark returns since inception of the scheme is not available. All index data is available on the website of Asia Index Pvt. Ltd.
a joint venture between BSE Ltd. and S&PDowJones Indices LLC. (source: http://www.asiaindex.co.in).
Pursuant to the circular issued by SEBI on ‘Categorization and Rationalization of the Schemes, there has been change in the fundamental attribute(s) of the aforesaid effective from Mar 14, 2018.
Returns are of growth option. The returns for the respective periods are provided as on Last business day of Sep 2020 for the respective Schemes. Returns above 1 year are Compounded
Annualized. Standard benchmark is prescribed by SEBI and is used for comparison purposes. Returns on 10,000 are point-to-point returns for the specific time period, invested at the start of the
period. The returns provided above have been rounded off and hence there may be minor differences between point-to-point returns vis-a-vis returns indicated above. Different plans shall have a
different expense structure. The performance details provided herein are of other than Direct plan. Scheme count for the total schemes managed by the Fund Managers does not include closed
ended scheme.
SIP performanceP2P performance
-25%
-20%
-15%
-10%
-5%
0%
5%
1Y 3Y 5Y Since Inception
HSBC Infrastructure Equity Fund – Growth
S&P BSE India Infrastructure (Benchmark) -20%
-15%
-10%
-5%
0%
5%
1Y 3Y 5Y Since Inception
HSBC Infrastructure Equity Fund – Growth
S&P BSE India Infrastructure (Benchmark)
78
Rolling performance – HSBC Infrastructure Equity Fund
In the long term probability of negative returns reduces and
creates an opportunity to generate better risk adjusted returns
Methodology - example:
Note - Rolling returns are calculated since inception. As inception date is different for different fund so the returns of one fund is not comparable with other fund.
10 years rolling returns for HSBC Infrastructure Equity Fund are calculated using the data since its inception i.e. 23 Feb 2006 to 30 Sep 2020.
This calculation has number of sets of two NAVs starting from 19 May 2005 to 9 Dec 2012, 11 Dec 2002 to 10 Dec 2012,..... and so on up to 1 Apr 2010 to 30 September 2020. The CAGR returns are
calculated for each of these number of NAV sets. The maximum, average and minimum returns number is taken out from these number of returns set. From this set of number of CAGR returns other
numbers are extracted such as the number of times where the fund has delivered less than Zero, more than 7%, 10% and more than 15% has been identified and converted into % times. Similar daily
rolling returns are calculated for other 5, 3 and 1 year periods and above data is extracted.
Source ACE MF – as at September 2020, S&P BSE India Infrastructure Index TRI
S&P BSE India Infrastructure Index TRI (Benchmark) - The launch date of the S&PBSE India Infrastructure Index (INR) is May 19, 2014 whereas the inception date of the scheme is Feb 23, 2006. The
corresponding benchmark returns since inception of the scheme is not available.
^ The above table shows the performance on daily rolling returns basis for respective periods (1, 3, 5 and 10 years) since the inception date of the scheme. The maximum, minimum and average
returns are calculated on the basis of total observations for respective rolling period.
Rolling return period for HSBC Infrastructure Equity Fund – 23 Feb 06 – 30 September 2020
Please refer to page no 79 for performance in SEBI prescribed performance format of the above fund. Past performance may or may not be sustained in the future, For other schemes performance
managed by the Fund Manager refer slide number 97, 100
Returns - Daily Rolling CAGR%
Since Inception ^
Period (Y=Years) 10Y 5Y 3Y 1Y 10Y 5Y 3Y 1Y
Minimum returns% -3 -13 -23.25 -60 NA NA NA NA
Maximum returns% 8.91 23.25 34.25 119.95 NA NA NA NA
Average Returns 3.74 4.11 3.65 6.85 NA NA NA NA
Negative returns % times 10.6% 34.9% 44.1% 51% NA NA NA NA
Returns more than 7% (% times) 8.2% 35.4% 37.9% 41% NA NA NA NA
Returns more than 10% (% times) 0.0% 27.8% 31.7% 39% NA NA NA NA
Returns more than 15% (% times) 0.0% 15.4% 20.0% 36% NA NA NA NA
HSBC Infrastructure Equity Fund (G)S&P BSE India Infrastructure Index
(Benchmark)
79
HSBC Infrastructure Equity Fund - performance
ICRA MFI Explorer, Data as on 30 September 2020
Past performance may or may not be sustained in the future. For other schemes performance managed by the Fund Manager refer slide number 97, 100
Note :NA means not available.
1 The launch date of the S&PBSE India Infrastructure Index (INR) is May 19, 2014 whereas the inception date of the scheme is Feb 23, 2006. Information presented for 5 year return is back-
tested which is available from Mar 31, 2008. The corresponding benchmark returns since inception of the scheme is not available. All index data is available on the website of Asia Index Pvt. Ltd.
a joint venture between BSE Ltd. and S&PDowJones Indices LLC. (source: http://www.asiaindex.co.in).
Returns are of growth option. The returns for the respective periods are provided as on Last business day of September 2020 for the respective Schemes. Returns above 1 year are Compounded
Annualized. Standard benchmark is prescribed by SEBI and is used for comparison purposes. Returns on 10,000 are point-to-point returns for the specific time period, invested at the start of the
period. The returns provided above have been rounded off and hence there may be minor differences between point-to-point returns vis-a-vis returns indicated above. Different plans shall have a
different expense structure. The performance details provided herein are of other than Direct plan. Scheme count for the total schemes managed by the Fund Managers does not include closed
ended scheme.
Funds Managed by - Gautam Bhupal (Total Schemes Managed 7)
HSBC Infrastructure Equity Fund
Incep
tion
Date
: 23-F
eb
-06
Fund / Benchmark(Value of `10,000 invested)
1 Year 3 Years 5 Years Since Inception
Amount in
`Returns
(%)
Amount in
`Returns
(%)
Amount in
`Returns
(%)
Amount in
`Returns
(%)
HSBC Infrastructure Equity Fund 8,765 -12.32 5,848 -16.35 7,482 -5.63 13,260 1.95
S&P BSE India Infrastructure TRI (Scheme
Benchmark)18,008 -19.87 6,826 -11.93 9,801 -0.40 NA NA
Nifty 50 TRI (Standard Benchmark) 9,903 -0.97 11,921 6.02 15,064 8.53 43,928 10.66
Past performance may or may not be sustained in the future. Refer note below
The said Fund is managed by Gautam Bhupal Effective (11 May 2018)
80
HSBC Infrastructure Equity Fund – Key features
Benchmark Index S&P BSE India Infrastructure Index TRI
Minimum Application Amount
Lump sum = INR 5,000, SIP = INR 500
Options Growth, Dividend (Payout & Dividend Reinvestment)
Load StructureEntry Load – Nil;
Exit Load 4 – 1% if redeemed / switched out within 1 year from allotment
SIP/STP/SEP SIP/STP/SEP available
Fund Manager Gautam Bhupal
Investment Objective
To generate long term capital appreciation from an actively managed portfolio of
equity and equity related securities by investing predominantly in equity and equity
related securities of companies engaged in or expected to benefit from growth and
development of Infrastructure in India. However, there can be no assurance or
guarantee that the investment objective of the scheme would be achieved.
4 Applicable with effect from 14 March, 2018, In respect of each purchase /switch-in of Units, an Exit Load of 1% is payable if
Units are redeemed / switched-out within 1 year from the date of allotment, No Exit Load will be charged, if Units are
redeemed/switched-out after 1 year from the date of allotment.
81
HSBC Tax Saver Equity Fund (HTSF)ELSS - An open ended equity linked saving scheme with a statutory lock-in of 3 years and tax benefit
82
What are our tax saving options?
• Here are some tax saving options available under different sections of the Income Tax Act.
Source – CRISIL, data as at March 2020, The above list is for an illustration purpose only and it is not an exhaustive list.
It is recommended to consult financial advisor before taking any investment decisions
^^ELSS funds are subject to the Capital gains which will be charged at 10% if above INR 1 lakh. ^ Dividend is subjected to 10% tax.
Past performance may or may not be sustained in the future.
Mutual fund investments are subject to market risks, read all scheme related documents carefully.
Section of IT Act Particular Tax exemption limit
Investment linked
80C
Employee provident fund
Rs 1,50,000
Life insurance premiums (ULIPs)
ELSS (3 years)^^
National pension system (NPS)
FDs (5 years)
NSC
Sukanya Samriddhi Yojana
Senior Citizen Saving Scheme
Public provident fund (PPF)
80 CCD (1B)NPS Rs 50,000 (over and above Rs 1.50 lakh
under 80C)
Non-investment linked
80D Medical insurance Rs 25,000
80E Education loan interest No limit
24B Payment of interest on home loans Rs 2,00,000
ELSS funds offer one of the best tax saving options with lowest lock in
83
Equity Linked Saving Schemes (ELSS) offers many benefits
Source – CRISIL, A word of caution: Investors must remember that as returns are market-linked, they are prone to volatility. Hence, ELSS may not be suitable for very risk-averse investors. Also, investors must
remain invested for at least three years to claim tax benefits. Data as at March 2020.
^^ELSS funds are subject to the Capital gains which will be charged at 10% if above INR 1 lakh. ^ Dividend is subjected to 10% tax.
Past performance may or may not be sustained in the future.
Mutual fund investments are subject to market risks, read all scheme related documents carefully.
Diversified portfolio
Tax benefit of Rs 1.5
lakh under Section 80C
Professional management
Lower lock-in period
among 80C investment
options
Minimum investment of just Rs
500
Returns
Convenience
Capital gains and dividend are tax free^^
Evens out market
volatility through
SIP
One fund offers many benefits including tax savings and growth
84
SIP through the year
• SIPs allow investors to park funds in ELSS, starting with Rs 500 per month, at regular intervals. They help investors
benefit from rupee cost averaging and, thus, offset volatility in the equity market.
• SIPs also negate the need to time the market, as they rely on time spent in the market to generate returns (read:
discipline). Thus, investors can invest in SIPs through the year.
For illustration purpose only
Data an at December 2019
Performance of ELSS represented by CRISIL ranked ELSS funds
SIP returns are annualised
Past performance may or may not be sustained in the future. Mutual fund investments are subject to market risks, read all scheme related documents carefully.
ELSS Funds
Period SIP start date Total amount invested( Rs) Market value (Rs) SIP returns (%)
3-Years SIP 1-Jan-16 18000 20167 7.53
5-Years SIP 1-Jan-14 30000 38128 9.52
7-Years SIP 2-Jan-12 42000 66553 12.92
10-Years SIP 1-Jan-09 60000 119097 13.15
85
• Longer investment horizon increases the probability of better risk-adjusted returns for investors
Long term investment can deliver performance
• ELSS funds offer tax saving^ opportunity under section 80C
• Withdrawals are subjected to capital gains tax^
Tax Savings ^^
• Relatively lower volatility due to long term investments
Volatility
• Flexibility to invest on a monthly basis through systematic investment plans (SIPs)
• Reduces market volatility and averages out the cost for investor
Low investment
• Professionally managed by fund managers with experience and research driven processes
Professional Fund Managers and Processes
• A tax saving scheme^^ that predominantly invests in equity securities
• Diversified portfolio across sectors and market cap
Diversified portfolio
of equities
Tax Saving^ + Growth advantage
Case for Equity Linked Savings Schemes (ELSS)
HSBC MF, CRISIL, Investments are subject to market risk and, hence, investors must consider their age and risk appetite
Mutual fund investments are subject to market risks, read all scheme related documents carefully. Past performance may or may not be sustained in the future.
^^ELSS funds are subject to the Capital gains which will be charged at 10% if above INR 1 lakh. Dividend is subjected to 10% tax.
Tax saving^ + Growth = Double benefit
86
HSBC Tax Saver Equity Fund
^^ ELSS funds are subject to the Capital gains which will be charged at 10% if above INR 1 lakh. ^Dividend is subjected to 10% tax.
ELSS - An open ended equity linked saving scheme with a statutory lock-in of 3 years and tax benefit
One of the best tax saving solution for equity investors
A diversified portfolio
across sectors and market
caps provides the
potential growth over a
long term.
Equity Linked Savings
Schemes (ELSS) offer tax
saving^^ opportunity
under section 80C.
HTSF focuses to build a
diversified portfolio across
sectors and market caps
while offering tax saving
^^ opportunity under
section 80C.
Long term growth Tax benefit HSBC Tax Saver
Equity Fund (HTSF)
87
HSBC Tax Saver Equity Fund (HTSF) ^^
Fund strategy
• The fund maintains a balanced mix of Large and Mid Cap stocks
• An emphasis is on bottom up stock picking within the midcap space with a longer investment horizon
• Quality and stability are of primary importance in our approach towards portfolio management
• Disciplined, repeatable approach to generate long-term alpha – good stocks at inexpensive valuations that can get re-rated v/s popular stocks at
high valuations
• Avoiding accidents by ignoring stocks with poor corporate governance, inefficient capital allocators, and poor quality of business
1 As on 30 September 2020 of Growth option. During the same period, scheme benchmark (S&P BSE 200 TRI) has moved by 3.4X to Rs 34,640 from Rs 10,000 and delivered return of 9.46%.
2 During the same period, scheme benchmark (S&P BSE 200 TRI) has delivered return of 10.01%. Refer slide 97 for detailed performance.
^^ELSS funds are subject to the Capital gains which will be charged at 10% if above Rs.1 lakh. Dividend is subjected to 10% tax.
9.7%SIP returns since
inception 2
3.4Xsince inception 1
INR 34,814Value of INR 10,000
since inception 1
9.50%CAGR since
inception 1
88
Fund Manager Gautam Bhupal^^
Benchmark S&P BSE 200 TRI
Standard Deviation 4 / 5 22.55%
Beta 4 /Sharpe Ratio 4 / 5 0.99 / -0.09
Portfolio Turnover 6 0.63
Inception Date 5 January 2007
Portfolio Characteristics FundS&P BSE 200
TRI
Number of portfolio holdings 36 201
Price to book 7 3.59 2.63
Dividend yield 7 0.73 1.29
Price to earnings 7 36.72 38.64
Return on Equity (%) 7 10.7 10.10
Weighted average market cap of the fund: Rs.3,61,971 Cr
HSBC Tax Saver Equity Fund 3
An open ended equity linked saving scheme with a statutory lock-in of 3 years and tax benefit
Data as of 30 September 2020
• Standard deviation is a statistical measure of the range of an investment's performance. When a MF has a high standard deviation, its means its range of performance is wide, implying greater volatility.
• Beta is a measure of an investment's volatility vis-a-vis the market. Beta of < 1 means that the security will be less volatile than the market. A beta of greater than 1 implies that the security's price will be
more volatile than the market. Statistical Ratios disclosed are as per monthly returns (Annualized) for the last 3 years.
• Price to Book (PB) and Price to Earnings (PE) are stocks valuation parameters relative to its earnings
• Dividend Yield is a financial ratio that indicates how much a company pays out in dividends each year relative to its share price.
• Return on equity (ROE) is a measure of profitability that calculates how much of profit a company generates on shareholders' equity.
• The weighted average market capitalization is a fund’s portfolio weighted by the market capitalization of each stock in the portfolio. In such a weighting companies with large weight account for a greater
portion of the portfolio.
^^ Fund managed since 23 July 20193 Pursuant to the circular issued by SEBI on ‘Categorization and Rationalization of the Schemes, there has been change in the fundamental attribute(s) of the aforesaid effective from Mar 14, 2018.4 Statistical Ratios disclosed are as per monthly returns (Annualized) for the last 3 years.5 Risk free rate: 4.81% (FIMMDA-NSE Manor)6 Portfolio Turnover Ratio is computed for the last 12 months7 PE Trailing (weighted average method), Trailing 12 month Price to earnings adjusted for negative earnings, Weighted average method, PB – Price to book value, Trailing 12 month Price to earnings,
Index method aggregation. 6 Portfolio Turnover Ratio is computed for the last 12 months, Dividend Yield, ROE
89Data as at September 2020
HTSF portfolio strategy
HTSEF follows a flexi-cap strategy with a flexibility to invest across the market capitalization spectrum. The Indian
equity markets have rallied just shy of 50% from the March lows with the broader markets catching up during the
past month. Initial recovery was driven by attractive valuations in sectors that were to do relatively better in an
uncertain environment. The recent rally is driven by optimism around the reopening of the economy, pent-up
demand and rebound in economic activity indicators.
We remain positive on the recovery in medium to long term but at the same time, are mindful of challenges being
faced by companies in the near term.
The most prominent theme that drive our portfolio construction is of profit pool consolidating with the dominant
players in respective sectors/industries.
We believe that the trend will accelerate due to current disruption. In the short term as we see the recovery phase
playing out for corporate India, growth will be scarce and the balance sheet strength will come to fore. Therefore,
we are positively disposed towards companies with relatively higher earnings resilience and ones with stronger
balance sheets.
From a medium to long term perspective, the current phase of disruption shall also pave way for accelerated
digital adoption by consumers as well as enterprises.
We see telecom, internet economy, ecommerce, technology vendors etc., to benefit from this disruption. Another
long term theme is that of diversification of the global supply chain due to ‘China + 1’ strategy which could be
adopted by corporates as well as economies and India could stand to benefit out of that.
We are also positive on segments where we believe the impacts are transitionary in nature and they will emerge
stronger post this disruption.
The Fund is overweight in Healthcare, Industrials, Real Estate and Communication Services, neutral weight in
Consumer Discretionary, Consumer Staples, and Financials, while underweight in Utilities, Energy, Technology
and Materials.
Mutual fund investments are subject to market risks, read all scheme-related documents carefully. Past performance may or may not sustain and doesn’t guarantee the future performance
Positive on the recovery in medium to long term
90
Current key focused sectors in HTSF
Data as at September 2020
Sectors Comments
Communication
Services
Telecom sector is a beneficiary of industry consolidation and improving pricing power. As a result, the profitability
of the sector is anticipated to come back strongly. We believe that players who are better positioned on network /
spectrum along with better access and ability to deploy future capital, will have dominance going forward. The long
pending AGR liability issue has also been put to rest after the SC ruling and it is no longer an overhang.
Additionally, the sector is a beneficiary from the pandemic disruption, which is leading to higher data usage. Given
the accelerated digital adoption across users and industries coupled with behavioral changes; the demand for
telecom services is expected to remain robust and this should increase the wallet share of players. Our preference
is for sector leaders, which also have stronger balance sheet and have shown better execution on the ground.
Healthcare
Our positive stance is on account of the earnings resilience coupled with revenue visibility. Over the medium term,
we believe that the profit pool of pharma companies will improve owing to reduction in fixed costs, secular
domestic market growth and US business showing signs of improvement. Most of the companies have
significantly deleveraged their balance sheets which will aid earnings and returns profile going ahead. Valuations
can improve further as the sector offers mid-teens earnings growth visibility and improving return ratios. Our
exposure to the sector, is primarily through companies having exposure to US generic business. We also own
domestic focused businesses with a higher degree of vertical integration.
Real Estate
The sector has witnessed improvement in the affordability and listed players are turning out to be beneficiaries of
industry consolidation. With low interest rates (coupled with negative real rates), the home purchase affordability is
at a decadal high. In addition, the current crisis will accelerate the consolidation amongst the residential
developers in favor of the major players especially, the listed companies. Commercial assets such as Grade A
office spaces and malls will also see consolidation as new supply will be restricted due to current cash flow issues
faced by developers coupled high gestation business models. Our current exposure are to developers who have a
mix of commercial assets and residential portfolio, along with strong balance sheet.
91
HSBC Tax Saver Equity Fund - Sector positioning
Active sector weightings - The difference in allocation of an individual security or portfolio segment between portfolio and the benchmark. Average weight, Attribution for 3 month, HSBC Global Asset
Management, Data as of 30 September 2020.
Sector weightings (%) Active sector weightings (%)
30.0
12.1
10.0
9.7
9.2
7.7
6.9
6.7
4.4
2.3
1.0
0 5 10 15 20 25 30 35
Financials
Information Technology
Energy
Health Care
Consumer Staples
Consumer Discretionary
Materials
Industrials
Communication Services
Real Estate
Not Classified
-4
-3
-2
-1
0
1
2
3
4
Hea
lth
Ca
re
Indu
str
ials
Rea
l E
sta
te
Com
mu
nic
ation
Se
rvic
es
Not
Cla
ssifie
d
Fin
an
cia
ls
Con
su
me
r D
iscre
tion
ary
Con
su
me
r S
tap
les
Ma
teria
ls
Info
rmation
Te
ch
no
logy
Utilit
ies
En
erg
y
92
Top active stock weightings in portfolio (%)
HSBC Tax Saver Equity Fund - Stock positioning
HSBC Global Asset Management, Data as of 30 September 2020 Past performance may or may not be sustained in the future, The returns provided above have been rounded off and hence there may be
minor differences between point-to-point returns vis-a-vis returns indicated above. Average weight, Attribution for 1 year
10.0
9.1
8.2
7.9
6.1
3.6
3.6
3.3
3.0
2.8
0 2 4 6 8 10 12
RELIANCE INDUSTRIES LTD
HDFC BANK LIMITED
INFOSYS LTD
ICICI BANK LTD
HINDUSTAN UNILEVER LTD
BAJAJ FINANCE LTD
KOTAK MAHINDRA BANK LTD
BHARTI AIRTEL LTD
MARUTI SUZUKI INDIA LTD
SUN PHARMACEUTICAL INDUS
93
0
2000
4000
6000
8000
10000
12000
Jan
-14
Ap
r-14
Jul-
14
Oct-
14
Jan
-15
Ap
r-15
Jul-
15
Oct-
15
Jan
-16
Ap
r-16
Jul-
16
Oct-
16
Jan
-17
Ap
r-17
Jul-
17
Oct-
17
Jan
-18
Ap
r-18
Jul-
18
Oct-
18
Jan
-19
Ap
r-19
Jul-
19
Oct-
19
Jan
-20
0
200
400
600
800
1000
1200
1400
Jul-
07
Jan
-08
Jul-
08
Jan
-09
Jul-
09
Jan
-10
Jul-
10
Jan
-11
Jul-
11
Jan
-12
Jul-
12
Jan
-13
Jul-
13
Jan
-14
Jul-
14
Jan
-15
Jul-
15
Jan
-16
Jul-
16
Jan
-17
Jul-
17
Jan
-18
Jul-
18
Jan
-19
Jul-
19
Jan
-20
Jul-
20
HDFC Bank
HDFC Bank
– One of the private sector bank has delivered
more than 4X since added in HTSF
HSBC Tax Saver Equity FundTrack record of key stock picks
HTSF Entry Point
Stock growth
of 4X in
HTSF portfolio
Source: Bloomberg, Data as at September 2020.
The stock named above is for illustration purposes only and does not constitute investment research, investment advice or a recommendation to any reader of this content to buy or sell investment
product.
Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies that may have been discussed in this report and should understand that
the views regarding future prospects may or may not be realised.
Currently in the portfolio, does not guarantee the position in the future. (Please refer latest portfolio for the reference)
Past performance may or may not be sustained in the future, Past performance is not indicative of future performance.
The returns provided above have been rounded off and hence there may be minor differences between point-to-point returns vis-a-vis returns indicated above.
Stock growth
of 2X in
HTSF portfolio
HTSF Entry Point
Maruti Suzuki
– This auto sector stock has given 2X since the
fund initiated
94
HSBC Tax Saver Equity Fund - portfolio
Data as on 30 September 2020
95
HSBC Tax Saver Equity Fund - performance
Data as on 30 Sep 2020, ICRA MFI Explorer , Returns CAGR – Compounded Annualised Growth Rate, S&P BSE 200 TRI index used above as a benchmark
Investment of Rs.10000/- 1Y (INR) 3Y (INR) 5Y (INR) Since Inception (INR)
HSBC Tax Saver Equity Fund – Growth 9,610 9,750 13,117 34,814
S&P BSE 200 TRI (Benchmark) 10,097 11,596 15211 34640
Alpha -487 -1,846 -2,094 174
The Fund offers flexible and convenient Systematic Investment Plan (SIP) facility. To illustrate the advantages of SIP investments, this is how your investments would have
grown if you had invested say Rs.10,000 systematically on the first Business Day of every month over a period of time in the Growth Option of Respective Scheme.
The returns are calculated by XIRR approach assuming investment of Rs.10,000/- on the 1st working day of every month. XIRR helps in calculating return on investments given
an initial and final value and a series of cash inflows and outflows with correct allowance for the time impact of the transactions.
Past performance may or may not be sustained in the future. Please check the detailed performance on the slide number 97
For other schemes performance managed by Gautam Bhupal refer slide number 79, 100
Returns are of growth option. Returns above 1 year are Compounded Annualized. Standard benchmark is prescribed by SEBI and is used for comparison purposes. Returns on 10,000 are
point-to-point returns for the specific time period, invested at the start of the period. The returns provided above have been rounded off and hence there may be minor differences between
point-to-point returns vis-a-vis returns indicated above. Different plans shall have a different expense structure. The performance details provided herein are of other than Direct plan.
SIP performanceP2P performance
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
1Y 3Y 5Y Since Inception
HSBC Tax Saver Equity Fund – GrowthS&P BSE 200 (Benchmark)
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
14%
1Y 3Y 5Y Since Inception
HSBC Tax Saver Equity Fund – Growth
S&P BSE 200 (Benchmark)
96
Rolling performance – HSBC Tax Saver Equity Fund
In the long term probability of negative returns reduces and
creates an opportunity to generate better risk adjusted returns
Methodology - example:
Note - Rolling returns are calculated since inception. As inception date is different for different fund so the returns of one fund is not comparable with other fund.
10 years rolling returns for HSBC Infrastructure Equity Fund are calculated using the data since its inception i.e. 5 Jan 2007 to 30 September 2020.
This calculation has number of sets of two NAVs starting from 19 May 2005 to 9 Dec 2012, 11 Dec 2002 to 10 Dec 2012,..... and so on up to 1 Apr 2010 to 30 September 2020. The CAGR returns are
calculated for each of these number of NAV sets. The maximum, average and minimum returns number is taken out from these number of returns set. From this set of number of CAGR returns other
numbers are extracted such as the number of times where the fund has delivered less than Zero, more than 7%, 10% and more than 15% has been identified and converted into % times. Similar daily
rolling returns are calculated for other 5, 3 and 1 year periods and above data is extracted.
ACE MF data as at September 2020, S&P BSE 200 TRI
^ The above table shows the performance on daily rolling returns basis for respective periods (1, 3, 5 and 10 years) since the inception date of the scheme. The maximum, minimum and average
returns are calculated on the basis of total observations for respective rolling period.
Rolling return period for HSBC Tax Saver Equity Fund – 5 Jan 07 – 30 September 2020
Please refer to page no 97 for performance in SEBI prescribed performance format of the above fund. Past performance may or may not be sustained in the future, For other schemes performance
managed by the Fund Manager refer slide number 79, 100
Returns - Daily Rolling CAGR%
Since Inception ^
Period (Y=Years) 10Y 5Y 3Y 1Y 10Y 5Y 3Y 1Y
Minimum returns% 6 -1.6 -8 -53.9 5 -2.1 -5 -59.3
Maximum returns% 18.59 22.84 30.25 105.6 18.89 23.68 32.80 126.2
Average Returns 12.52 12.82 12.6 12.5 10.61 10.90 11.2 11.8
Negative returns % times 0.0% 0.3% 5.3% 30% 0.0% 2.8% 5.9% 26%
Returns more than 7% (% times) 99.3% 82.1% 80.1% 53% 90.9% 77.3% 70.0% 58%
Returns more than 10% (% times) 85.3% 67.3% 62.6% 48% 48.8% 58.3% 58.2% 50%
Returns more than 15% (% times) 16.4% 41.8% 35.9% 39% 15.4% 24.7% 27.8% 37%
HSBC Tax Saver Equity Fund (G)S&P BSE 200
(Benchmark )
97
HSBC Tax Saver Equity Fund - performance
Source - ICRA MFI Explorer, Data as on 30 September 2020, For other schemes performance managed by the Fund Manager refer slide number 79, 100
Past performance may or may not be sustained in the future, Returns are of growth option.
The performance details provided herein are of other than Direct Plan - Growth Option. Returns on 10,000 are point-to-point returns for the specific time period, invested at the start of
the period. The returns for the respective periods are provided as on last available NAV of September 2020 for the respective Schemes. Returns 1 year and Above are Compounded
Annualised. Load is not taken into consideration for computation of performance. Different plans shall have a different expense structure. The expenses of the Direct Plan under the
Scheme will be lower to the extent of the distribution expenses / commission charged to the Other than Direct Plan. The performance data of the scheme(s) managed by the
respective Fund Manager which has/have not completed 1 year is not provided. Considering the varying maturities of the close ended schemes, the performance of close-ended
schemes is not provided as it is strictly not comparable with that of open ended schemes.
Gautam Bhupal is managing HSBC Tax Saver schemes with effect from 23 July 2019
Past performance may or may not be sustained in the future. Refer note below.
The said Fund is managed by Gautam Bhupal Effective (23 July 2019)
Funds Managed by - Gautam Bhupal (Total Schemes Managed 7)
HSBC Tax Saver Equity Fund
Incep
tion
Date
: 05-J
an
-07
Fund / Benchmark
(Value of `10,000 invested)
1 Year 3 Years 5 Years Since Inception
Amount in
`Returns
(%)
Amount in
`Returns
(%)
Amount in `
Returns
(%)
Amount in
`Returns
(%)
HSBC Tax Saver Equity Fund 9,610 -3.89 9,750 -0.84 13,117 5.57 34,814 9.50
S&P BSE 200 TRI (Scheme Benchmark) 10,097 0.97 11,596 5.05 15,211 8.74 34,640 9.46
Nifty 50 TRI (Standard Benchmark) 9,903 -0.97 11,921 6.02 15,064 8.53 33,315 9.15
98
HSBC Tax Saver Equity Fund
Key Features
Benchmark Index S&P BSE 200 TRI
Minimum Application Amount
Lump sum - INR 5000 / SIP – INR 500
Options Growth, Dividend (Payout & Dividend Reinvestment)
Load Structure Entry Load – NA; Exit Load - Nil
SIP/STP/SEP SIP/STP/SEP available
Fund Manager Gautam Bhupal
Investment Objective
Aims to provide long term capital appreciation by investing in a diversified portfolioof equity & equity related instruments of companies across various sectors andindustries, with no capitalisation bias. The Fund may also invest in fixed incomesecurities. However, there can be no assurance or guarantee that the investmentobjective of the scheme would be achieved.
99
Equity Market Outlook
Source: HSBC Asset Management Company, India, Data as of September 2020 except otherwise mentioned.
• Equity markets lost the upward momentum during September and this coincided with the negative trading bias seen in global
equities as well.
• Concerns around the emergence of second wave of the virus globally halted the continued optimism path for global equities.
• In India however, the high frequency indicators continued to show improvement along with economic activity levels. Additionally,
there were signs of the infection curve flattening for the country as a whole with the daily new cases showing first signs of
peaking out during the month.
• India manufacturing PMI witnessed a significant jump to 56.8 in September compared to 52 in August, continuing on a trend of
expansion. The railway freight data registered a growth in September while the electricity consumption demand returned to pre-
COVID levels during September.
• The GST collection data for August (collected in September) also showed a growth (3.9% YoY) for the first time in 6 months.
• We believe, that there would be a dichotomy between the real economy and the performance of the dominant companies in the
listed universe. This we believe is due to the ability of the larger companies (including dominant companies) to adapt and ride the
disruption much more efficiently owing to its scale of economies (cost advantage), technological superiority (digital readiness)
and balance sheet strength.
• From a P/E perspective, Nifty is currently trading at 27.4x/19.1x on FY21/FY22 consensus earnings of Rs. 410/588 respectively.
It implies a flat growth in FY21 and a strong 43% growth in FY22.
• From a P/E perspective, Nifty is currently trading at 27.4x/19.1x on FY21/FY22 consensus earnings of Rs. 410/588 respectively.
It implies a flat growth in FY21 and a strong 43% growth in FY22.
• Our fund’s philosophy has been to invest in dominant businesses having scalable potential and that have reasonable valuations.
• We see telecom, internet economy, ecommerce, technology vendors etc., to benefit from this disruption.
• Another long term theme is that of diversification of the global supply chain due to ‘China + 1’ strategy which could be adopted by
corporates as well as economies and India could stand to benefit out of that.
Market focus could be firmly on the revival phase post the survival phase
100
Gautam Bhupal is managing above 3 HMS schemes with effect from 23 July 2019
ICRA MFI Explorer, Data as on 30 September 2020,
1 The said Fund has been in existence for more than 1 year but less than 3 years
HSBC Regular Saving Fund is managed by Kapil Punjabi since 18 February 2019 and by Gautam Bhupal since 23 July 2019
HSBC Focused Equity Fund performance is not given as it has not completed 1 year.
Performance of the respective benchmark is calculated as per the Total Return Index (TRI) . For other schemes performance managed by the Fund Manager refer other performance slides of the
presentation.
Pursuant to the circular issued by SEBI on ‘Categorization and Rationalization of the Schemes, there has been change in the fundamental attribute(s) of the aforesaid effective from Mar 14, 2018.
Past performance may or may not be sustained in the future, Note :NA means not available.
Returns are of growth option. The returns for the respective periods are provided as on Last business day of September 2020 for the respective Schemes. Returns above 1 year are Compounded
Annualized. Standard benchmark is prescribed by SEBI and is used for comparison purposes. Returns on 10,000 are point-to-point returns for the specific time period, invested at the start of the period.
The returns provided above have been rounded off and hence there may be minor differences between point-to-point returns vis-a-vis returns indicated above. Different plans shall have a different
expense structure. The performance details provided herein are of other than Direct plan. Scheme count for the total schemes managed by the Fund Managers does not include closed ended scheme.
Other Funds Managed by the above schemes Fund Managers
2
101
HSBC Global Asset Management
India investment capabilities and process
102
Fixed Income (158.4)
Equity (73.1)
Multi-Asset (123.4)
Liquidity (117.4)
Alternatives (32.1)*
Other (24.6)**
A global network of local experts
Investment professionals working across key locations
1. Asia-Pacific includes employees and assets of Hang Seng Bank, in which HSBC has a majority holding.
2. HSBC Jintrust Fund Management company is a joint venture between HSBC Global Asset Management and Shanxi Trust Corporation Limited.
*Alternatives assets include USD 4.3bn from committed capital (“dry powder”).
**Other is the assets of Hang Seng Bank, in which HSBC has a majority holding, and of HSBC Jintrust Fund Management, a joint venture between HSBC Global Asset Management and Shanxi Trust Corporation Limited.
Source: HSBC Global Asset Management as at 30 June 2020. Any differences are due to rounding.
HSBC Global Asset Management offices - Countries and territories where our investment teams
sit are in bold
Canada
USA
Mexico
Argentina
Bermuda
UK
Swede
n
Luxembourg
JerseyFrance
Spai
n
Switzerland
Malta
Italy
Germany
Turkey
Saudi
ArabiaUAE
India
Singapore
Hong Kong
Taiwan
Japan
Australi
a
Mainland
China2
Presence in
25 locations
617investment
professionals
88America
s
353EMEA
176Asia-
Pacific1
USD 528.9bn under management
By asset class (USD bn)
Americas (133.7)
EMEA (272.2)
Asia Pacific (123.0)
By region (USD bn)
Wholesale(276.5)
By client type (USD bn)
103
HSBC Asset Management, India – expertise and experience
The investment management team manages/advises strategies with assets across investment categories
Data as at Sep 2020, Any differences are due to rounding
INR 9983 Cr
AUM as at last day of quarter ended Sep ‘20 Expertise in managing Indian equity and debt
Managers/sub-advisors of Indian equity and debt assets from last 17 years
Differentiate Product offerings
Clear and differentiated product offerings across asset classes
Recognised leader in emerging markets asset management
International experience
Global presence, local knowledge
Ability to identify and position for global trends
Supported by global perspective on long term asset prices
Inputs on impact of macro economic developments on Indian fixed income markets
On the ground presence combined with global oversight
Personal local relationships combined with Executive Management engagement
and global support through dedicated Official Sector Institutions team based in
London
Tailored and bespoke approach when working with Official Sector Institutions
Offshore advisory (Equity and Fixed Income):
Rs.19193 Cr
AUM for the quarter ended (30 Sep 2020)
Asset class wise disclosure of AUM & AAUM
Disclosure of percentage of AUM by geography
Category AUM as on the last
day of the Quarter
Average AUM for
the Quarter
Income 264,904 204,376
Equity (other than ELSS) 280,991 273,086
Liquid 418,954 436,308
Equity - ELSS 13,741 13,728
Fund of Fund investing overseas 3,748 3,851
Fund of Fund investing in Domestic 16,051 16,599
Total 998,387 947,948
Geographical
Spread
% of Total AUM as on the
last day of the Quarter
Top 5 Cities 71.27
Next 10 Cities 15.73
Next 20 Cities 4.93
Next 75 Cities 4.08
Others 3.98Total 100.00
104
Equity Investment Process - A globally disciplined and structured approach
Our investment framework integrates global perspective
with local insight in a continuous cycle
Consistency
of investment
decisions
Portfolio
construction
Top down
insight
Bottom up
input
Forums and
committees
Globally
shared
tools
Consistent
philosophy
and approach
Macro
and
Strategy
team
Local
teams
insight
Local
Research
teams
Portfolio
Design
teams
Trading
Risk
Team based
approach
Global framework
Macro views
Expected returns
Asset allocation
Sectors and regions
Informed investment
decision
Risk budgeting
Portfolio optimisation
Tactical opportunities
Portfolio-specific constraints
Local insight
Stock-specific analysis
Relative valuation
Investment themes
Technicals
The information above is provided by and represents the opinions of HSBC Global Asset Management and is subject to change without notice
105
India Investment Capabilities - Investment philosophy
The information above is provided by and represents the opinions of HSBC Asset Management, India (HSBC AMC) and is subject to change without notice
Overarching investment philosophy – HSBC Global Asset Management, India
Price to Book / Return on Equity (PBRoE) effective for Global Emerging Markets – Price to book (PB) is often quoted as the best performing
factor in this space
Screening companies on the basis of
High Profitability (RoE)
Low Valuations (P/BV)
Ranking on the basis of PBRoE
Focused on the resilience of underlying fundamentals of the company
Concentrating on companies most likely to outperform- not the entire universe
Eliminating noise and person-centric decision making
Risk mitigation using portfolio construction tools
There is a well-established relationship between profitability and valuation
Excess volatility in equity markets implies that stocks are often mispriced
This creates the potential for an active investment opportunity that can be confirmed with proprietary fundamental research
Markets revert to a measure of “relative intrinsic value” over time, hence we are patient investors with a strict valuation discipline
and long-term investment horizon
We believe that concentrating overweight positions in profitable companies at below-average valuations will enhance returns
106
For illustrative purposes only
Universe is assembled
and filtered periodically
Stocks are ranked
according to a
combination
of valuation and
profitability
Data validity is verified
Begins with the top
ranked outliers
Stock analysis focuses
on 5 key issues:
– Corporate governance,
balance sheet,
profitability drivers,
growth shocks,
dynamic factors
Benefits from global
information sharing
Bottom-up
implementation of stock
ideas
Top-down use for
prudent risk control
Continuous monitoring/
reassessment of risk at
the stock and portfolio
level
Compliance monitoring
and internal controls
HSBC Group risk
management and audit
Output: Stock ‘outliers’ Output: Stock ideas Output: Stock portfolio Output: Stock reassessment
1. Universe
analysis
2.
Stock
analysis
3. Portfolio
construction
4.
Risk
management
Global investment process overviewOur process is focused on fundamental research within a proven valuation framework
The information above is provided by and represents the opinions of HSBC Asset Management, India (HSBC AMC) and is subject to change without notice
Valuation model
PBRoE: PB – Price to book (Valuations) vs RoE – Return on equity (Profitability)
For illustrative purposes only. The above asset allocation and strategy may not have all details. For more details please refer to the SID (Scheme Information Document) of HSBC Focused Equity Fund
Placement of stocks through proprietary PBRoE process makes it more efficient
Inflated Buy Growth Buy
Value BuyAttractive
Buy
RoE of stocks
PB
of
sto
cks
Profitability
Va
lua
tio
ns
108
The PBROE & risk mitigation model differentiates HSBC MF from the market
The PBROE Edge
Screening for best sources of alpha : companies with below-average valuation for a given profitability
Particularly applicable in the Emerging Markets universe
The price-to-book ratio works over large groups of stocks
Consistent and sustainable outperformance over time and across cycles
The framework has been tested by the HSBC GAM Research team and shown to outperform (over a period of years) at both regional
and country levels
Globally adopted investing framework
Focusing analysts on companies most likely to outperform
Key takeaways of Equity Investment Process
The information above is provided by and represents the opinions of HSBC Asset Management, India (HSBC AMC) and is subject to change without notice
109
HSBC Global Asset Management India - Investment Team
Tushar has over 25 years of experience in various roles through his career. He is an
MBA in Investment Finance, having graduated from the University of Hartford,
Connecticut, USA in 1992. Prior to joining HSBC Global Asset Management, India in
June 2009, Tushar has also worked in international positions in the United States for
a couple of years before returning to India. In India he has worked with HDFC Asset
Management and more recently with AIG Global Asset Management in senior asset
management roles.
Tushar Pradhan
CIO, HSBC Global Asset Management, India
110
Gautam Bhupal is Vice President and Fund Manager in the India Equity Investment team since 2008 and has over 13 years of experience
in areas of research and Fund Management. Prior to joining HSBC Global Asset Management, India in 2008, Gautam has worked with UTI
Asset Management Company as Equity Research Analyst. He holds a Post Graduate Diploma in Business Management from Management
Development Institute, Gurgaon and has completed his CA and CS.
Gautam Bhupal
VP & Fund Manager
Amaresh Mishra is Vice President and Fund Manager in the India Equity Investment team since 2007. He has over 12 years of experience
in Equities and Sales. Prior to joining HSBC Global Asset Management, India in 2005, he has worked Centre for Science and Environment
in New Delhi. He holds a PGDM from XIM, Bhuvneshwar.
Amaresh Mishra
VP & Fund Manager
Ranjithgopal K A is a Vice President and the Fund Manager in the India Equity Investment team and has over 11 years of experience in
Equity Research & Sales. He holds a Bachelor of Arts (Economics) degree and holds a Post Graduate Diploma in Business Management
from FORE School of Management, New Delhi.
Ranjithgopal K A
VP and Fund Manager
HSBC Global Asset Management India – Equity Investment Team
Nikunj Mehta has recently joined as Associate Vice President in the equity investment team. Nikunj is a B. Tech in Computer Science from
VJTI (Veermata Jijabai technology Institute), Mumbai. Nikunj has completed CFA (US) and is currently awaiting his Charter. Nikunj has
over 6 years of experience in sell side equity research having covered companies in energy, FMCG and real estate space. Prior to joining
HSBC Global Asset Management, Nikunj has worked in equity research department in well-known domestic and international broking firms.
Nikunj Mehta
AVP
Neelotpal Sahai is currently Head of Equities and Fund Manager since September 2017. He has been a Senior Vice President and
Portfolio Manager in the Onshore India Equity team in Mumbai since 2013, when he joined HSBC. Neelotpal is responsible for managing
three HSBC Mutual Fund equity funds. Neelotpal has been working in the industry since 1991. Previously, Neelotpal was Director at
IDFC Asset Management Company Ltd in Mumbai, responsible for equity fund management, and held a variety of positions at Motilal
Oswal Securities Ltd. in Mumbai, Infosys Technologies in Mumbai, Vickers Ballas Securities Ltd. in Mumbai, SBC Warburg in Mumbai,
UTI Securities Ltd. in Mumbai and HCL HP Ltd. in Mumbai. Neelotpal holds a Bachelor’s degree in Engineering from IIT BHU – Varanasi
and a Post-Graduate Diploma in Business Management from IIM Kolkata, both in India.
Neelotpal Sahai,
Head of Equities & Fund
Manager
Ankur Arora is a Senior Vice President and Fund Manager – Equities in the onshore India Equity Team. Ankur brings with him more than 15
years of experience spread across fund management, research and strategy. Prior to joining HSBC, Ankur has worked with Aegon Life
Insurance, Arvind Ltd, IDFC Asset management, ING Investment Management, Macquarie Securities, Evalueserve and UTI Asset
Management in various capacities. A management graduate from of Indian Institute of Management, Lucknow, Ankur also holds a CFA
from CFA Institute and a B. Com from Guru Nanak Dev University. Amritsar.
Ankur Arora
SVP & Fund Manager
Priyankar has over 4.5 years of experience in areas of research across different sectors. He has joined HSBC Asset Management (India)
Private Limited Associate Vice President - Equities since 6 May 2019. Prior to this he has worked with Motilal Oswal Asset Management
Company as an Equity Research Analyst from Nov 2014 to April 2019.
Priyankar Sarkar
AVP & Fund Manager
111
RiskometersHSBC Regular Savings Fund
This product is suitable for investors
who are seeking*:
• Capital appreciation over medium to long
term.
• Investment in fixed income
(debt and money market instruments) as
well as equity and equity related securities.
*Investors should consult their financial advisers if in doubt about
whether the product is suitable for them.
Investors understand that their principal
will be at Moderately High risk
HSBC Managed Solutions India -
Moderate
This product is suitable for investors
who are seeking*:
• To create wealth over long term
• Investing predominantly in units of equity
mutual funds as well as in a basket of debt
mutual funds, gold & exchange traded
funds, offshore mutual funds and money
market instruments.
*Investors should consult their financial advisers if in doubt about
whether the product is suitable for them.
Investors understand that their principal
will be at Moderately High risk
HSBC Managed Solutions India -
Growth
This product is suitable for investors
who are seeking*:
• To create wealth over long term
• Investing predominantly in units of equity
mutual funds as well as in a basket of debt
mutual funds, gold & exchange traded
funds, offshore mutual funds and money
market instruments.
*Investors should consult their financial advisers if in doubt about
whether the product is suitable for them.
Investors understand that their principal
will be at Moderately High risk
HSBC Managed Solutions India -
Conservative
This product is suitable for investors
who are seeking*:
• To provide income over the long-term;
• Investing predominantly in units of debt
mutual funds as well as in a basket of equity
mutual funds, gold & other exchange traded
funds and money market instruments.
*Investors should consult their financial advisers if in doubt about
whether the product is suitable for them.
Investors understand that their principal
will be at Moderate risk
This product is suitable for investors
who are seeking*:
• Long term wealth creation
• Investment in equity and equity related
securities across market capitalization
in maximum 30 stocks
*Investors should consult their financial advisers if in doubt about
whether the product is suitable for them.
HSBC Focused Equity Fund
Investors understand that their principal
will be at Moderately High risk
HSBC Equity Hybrid Fund
*Investors should consult their financial advisers if in doubt about
whether the product is suitable for them.
This product is suitable for investors
who are seeking*:
• Long term wealth creation and income
• Invests in equity and equity related
securities and fixed Income
instrumentsInvestors understand that their principal
will be at Moderately High risk
HSBC Large & Mid Cap Equity Fund
*Investors should consult their financial advisers if in doubt about
whether the product is suitable for them.
This product is suitable for investors
who are seeking*:
• Long term wealth creation and income
• Investment predominantly in equity and
equity related securities of Large and Mid
cap companiesInvestors understand that their principal
will be at Moderately High risk
112
Disclaimer
This document has been prepared by HSBC Asset Management (India) Private Limited (HSBC) for information purposes only and should not be construed as i) an offer or recommendation to buy or sell securities, commodities, currencies or other investments referred to herein; or ii) an offer to sell or a solicitation or an offer for purchase of any of the funds of HSBC Mutual Fund; or iii) an investment research or investment advice. It does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek personal and independent advice regarding the appropriateness of investing in any of the funds, securities, other investment or investment strategies that may have been discussed or referred herein and should understand that the views regarding future prospects may or may not be realized. In no event shall HSBC Mutual Fund/HSBC Asset management (India) Private Limited and / or its affiliates or any of their directors, trustees, officers and employees be liable for any direct, indirect, special, incidental or consequential damages arising out of the use of information / opinion herein.
This document is intended only for those who access it from within India and approved for distribution in Indian jurisdiction only. Distribution of this document to anyone (including investors, prospective investors or distributors) who are located outside India or foreign nationals residing in India, is strictly prohibited. Neither this document nor the units of HSBC Mutual Fund have been registered under Securities law/Regulations in any foreign jurisdiction. The distribution of this document in certain jurisdictions may be unlawful or restricted or totally prohibited and accordingly, persons who come into possession of this document are required to inform themselves about, and to observe, any such restrictions. If any person chooses to access this document from a jurisdiction other than India, then such person do so at his/her own risk and HSBC and its group companies will not be liable for any breach of local law or regulation that such person commits as a result of doing so.
© Copyright. HSBC Asset Management (India) Private Limited 2020, ALL RIGHTS RESERVED.
HSBC Asset Management (India) Private Limited, 16, V.N. Road, Fort, Mumbai-400001 Email: [email protected] | Website: www.assetmanagement.hsbc.com/in
Mutual fund investments are subject to market risks, read all scheme related documents carefully.