HSBC Mutual Fund introduces HSBC Financial Services Fund: A focused bet on India’s booming financial sector

HSBC Financial Services Fund provides a new investment avenue for long-term wealth creation.

HSBC Mutual Fund has announced the launch of the HSBC Financial Services Fund. This open-ended equity scheme aims to capitalise on the strong growth potential of India's financial sector.

The New Fund Offer (NFO) opens on February 6, 2025, and closes on February 20, 2025, offering investors a timely opportunity to gain exposure to this dynamic and evolving sector.

With India’s financial services industry expanding due to rising financial inclusion, increasing digital adoption, and a shift towards financial assets, the fund is designed to capture opportunities across both lending and non-lending segments.

The scheme will track the BSE Financial Services Index TRI, ensuring a well-diversified and structured approach to investing in financial services businesses.

Fund Details

• Fund Name: HSBC Financial Services Fund
• Fund Type: Open-ended equity scheme
• Investment Objective: To generate long-term capital appreciation by investing predominantly in equity and equity-related securities of companies engaged in financial services.
• NFO Period: February 6, 2025 – February 20, 2025
• Benchmark: BSE Financial Services Index TRI
• Fund Manager: Gautam Bhupal, SVP – Fund Management (Equities), HSBC Mutual Fund
• Minimum Investment: As per scheme information document
• Investment Approach: Focus on both lending and non-lending financial businesses, offering stability and high-growth potential.
• Sector Coverage: Banks, NBFCs, Stock Broking, Asset Management, Fintech, Investment Banking, Insurance, Wealth Management, Housing Finance, Microfinance, and Payment Companies.

Management Comments on the Fund Launch
Kailash Kulkarni, CEO of HSBC Mutual Fund, highlighted the crucial role of the financial services sector in India's long-term economic trajectory, stating: "India’s GDP is projected to grow 8.8 times from $3.4 trillion to USD 30 trillion by 2047, with the financial sector expected to grow at twice this rate to support the Viksit Bharat 2047 vision. The sector is evolving rapidly, with deepening capital markets, expanding insurance coverage, and growing digital financial services. Our fund aims to capitalise on these emerging opportunities."

Further reinforcing the fund’s investment strategy, Venugopal Manghat, CIO-Equity, HSBC Mutual Fund, added: "Our investment approach is aimed at delivering long-term alpha through meticulous stock selection and in-depth analysis. We focus on companies with strong fundamentals, superior management, and high earnings potential, ensuring a robust and well-diversified portfolio for our investors."

Who Should Invest in HSBC Financial Services Fund?
This fund is ideal for investors who:

• Believe in the long-term growth of India's financial services sector. The sector is poised for multi-decade expansion, supported by increasing financial participation and digitalisation.
• Seek diversification within equities. The fund covers a broad spectrum of financial businesses, from traditional banks to high-growth fintech firms.
• Willing to take a sectoral exposure for higher returns. While financial services remain a key economic driver, investors must be comfortable with the sectoral concentration risk.
• Have a long-term investment horizon. Given the cyclical nature of financial businesses, investing with a minimum 5-7-year outlook is recommended for optimal results.

Conclusion
The HSBC Financial Services Fund is a well-timed thematic offering that allows investors to participate in the growth of India’s financial sector. The sector is expected to deliver significant long-term wealth creation with strong regulatory support, increasing financial literacy, and digital innovations transforming the landscape.

Disclaimer: The article is for informational purposes only and not investment advice.