HT Bureau
GUWAHATI, Feb 7: HSBC Mutual Fund on Wednesday announced the launch of HSBC Multi Asset Allocation Fund (HMAAF), an open-ended scheme investing in equity and equity-related instruments, debt & money market securities and Gold/ Silver ETFs. The fund aims to generate long-term capital growth, help reduce volatility and offer diversification. The new fund offering (NFO) opens on February 8 2024 and closes on February 22 and will reopen on March 1.
HMAAF will capitalise on an optimum multi asset allocation investment strategy. The fund will follow a flexicap approach and invest across market caps based on prevailing valuation comfort. The investment process considers several factors including the quality of business, competitive advantage, corporate governance track record, sustainability practices, financial strength, risk-reward evaluation, key earnings drivers, etc. The fund will be managed by Cheenu Gupta, SVP Fund Management Equities (for Domestic Equities), Dipan Parikh, VP Dealing Equities (for Gold/ Silver ETFs), Mahesh Chhabria, VP, Fund management Fixed Income (for Fixed Income) and Sonal Gupta, Head Research Equities (for Foreign Securities).
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Multi asset allocation funds enable customers in diversification along with asset rebalancing. They rebalance allocations, ensuring timely adjustments to maintain a balanced investment approach. This proactive approach helps investors who are seeking a comprehensive and dynamic investment strategy to navigate the current financial landscape, while optimizing their asset mix. In the calendar year 2023, under hybrid category, multi asset allocation funds witnessed the second highest inflow at Rs. 22,415 crores* industrywide.
Commenting on the launch, Kailash Kulkarni, CEO, HSBC Asset Management Company (India) Pvt. Ltd, said, “India’s growth story is driven by several factors including increasing domestic consumption, strong forex reserves, focus on manufacturing and infrastructure development, improving debt markets, foreign investments, strong government reforms, etc. These factors, combined with significant market volatility, calls for a multi asset allocation strategy, considering different asset classes behave differently depending on economic situations. With an efficient asset allocation, the HSBC Multi Asset Allocation Fund aims to spread the risk and optimise performance to deliver risk adjusted growth in the long run.”
Venugopal Manghat, CIO-Equity, HSBC Asset Management (India) Pvt Ltd said, “With a strategic blend of equity that offers capital appreciation, fixed income that brings stability and gold/silver adding resilience, a Multi asset allocation is a prudent solution to help counter volatility and achieve return optimisation in the long run. Backed by rigorous research, our focus will be on delivering relative value using a combination of top-down and bottom-up approaches ensuring prudent diversification.”
