HSBC Global Asset Management has started a new fund offer (NFO) of the HSBC Equity Hybrid Fund from 28th September. The NFO period of this scheme will continue till 12th October 2018 and the scheme will re-open for continuous sale and repurchase for 26th October onwards. This new equity hybrid scheme NFO from HSBC AMC comes on the heels of the similar NFOs from Axis Mutual Fund and the Motilal Oswal Mutual Fund. Being an open-ended fund, you will be able to invest in/redeem scheme units on all days when markets are open.
HSBC Equity Hybrid Fund will invest between 65% – 80% of its assets in equities and equity-derivatives for tax purposes. Being a hybrid scheme, an additional 20% – 35% of scheme assets will be invested in debt and money market instruments including cash and cash equivalent instruments. Additionally, the fund will limit its securitized debt exposure to 30% of assets while derivatives exposure will be capped at 50%. This hybrid scheme from HSBC AMC can also invest in units of Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) within the limit of 10% of assets.
The benchmark for the HSBC Equity Hybrid Fund is a customized index comprising the S&P BSE 200 Index (70%) and the CRISIL Composite Bond Fund Index (30%). The returns of these indices are as follows*:
|Index Name||1 Year Return (%)||5 Year Returns (%)|
|S&P BSE 200 Index||17.75||19.99|
|CRISIL Composite Bond Fund Index||5.11||8.61|
*The returns data of indices are based on 31st August 2018 figures.
Thus, the calculated returns provided by the customized index using applicable weight assignments over the 1 year and 5 year periods are 13.95% and 16.57% respectively.
HSBC Equity Hybrid Fund will be jointly managed by Neelotpal Sahai and Sanjay Shah. They already manage key funds of HSBC AMC such as HSBC Large Cap Equity Fund (AUM Rs. 744 crores as of 31st August 2018), HSBC Small Cap Equity Fund (AUM Rs. 589 crores) and HSBC Dynamic Asset Allocation Fund (AUM Rs. 46 crores). Among these, the HSBC Small Cap Equity Fund has undergone significant correction in the past year with 1 year returns recorded at -8.19% while the scheme’s 5 year return was 27.69% as per NAV on 27th September 2018.
Additional Features of the HSBC Equity Hybrid Fund NFO:
|NFO Period||28th September to 12th October 2018|
|Minimum Investment||Rs. 1000|
|Benchmark||S&P BSE 200 Index (70%) + CRISIL Composite Bond Fund Index (30%)|
|Fund Managers||Neelotpal Sahai and Sanjay Shah|