PowerPoint Presentation · Lump sum investment performance SIP performance Returns are of growth...
Transcript of PowerPoint Presentation · Lump sum investment performance SIP performance Returns are of growth...
HSBC Multi Cap Equity FundMulti cap fund - An open ended equity scheme investing across large cap, mid cap, small cap stocks
(Formerly known as HSBC India Opportunities Fund 1)
Investment Objective:
Seeks long term capital growth through investments across all market capitalisations, including small, mid and large cap stocks. It aims
to be predominantly invested in equity & equity related securities. However it could move a significant portion of its assets towards fixed
income securities if the fund manager becomes negative on equity markets. However, there can be no assurance or guarantee that the
investment objective of the scheme would be achieved.
8 As on 30 June 2018 of Growth option. During the same period, scheme benchmark (S&P BSE 200) has grown to Rs 72,960 from Rs 10,000 and delivered return of 14.85%. Please refer page
no. 3 for detailed performance of HSBC Multi Cap Equity Fund. 9 Outperformance is vis-a-vis benchmark based on discrete one year performance ending on 31 December 2017. Past
performance may or may not be sustained in the future.
Fund Manager Neelotpal Sahai
Benchmark 10 S&P BSE 200
Inception Date 24 February 2004
Standard Deviation 2 16.07%
Beta 2 1.0963
Sharpe Ratio 3 0.2615
NAV INR 85.3955
Exit Load 41% if redeemed / switched
out within 1 year from
allotment
Portfolio Characteristics FundS&P BSE
200
Number of holdings 51 200
Price to book 6 2.57 2.82
Price to earnings 6 34.87 39.79
Return on Equity (ROE (%)) 13.03 12.64
Portfolio Turnover 7 0.45 -
July 2018
3.63%Average alpha
created year-on-year
since inception 9
9/13Years of
outperformance
since inception 9
INR 85,435Growth of INR 10,000
since inception 8
16.12%CAGR since
inception 8
Month End Total Expenses ratios (Annualised) 5
Regular Plan 2.43%
Direct Plan 1.73%
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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.
5 Includes GST on Investment Management fees of 0.18% of Total Net Assets
6 PE, PB - Trailing 12 months
7 Portfolio Turnover Ratio is computed for the last 12 months
10 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
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 Statistical Ratios disclosed are as per monthly returns (Annualized) for the last 3 years.3 Risk free rate: 6.25% (FIMMDA-NSE MIBOR) as on June 29, 2018
Fund Positioning:
Sectors PositionActive sector
weightings (%)Rationale
Materials 7.57 O/w• Prefer metals (both ferrous and non-ferrous), given expectations of
deleveraging amongst India based companies due to improved cash flows.
Industrials 5.89 O/w• Our holdings are oriented towards early cyclicals (construction and EPC) and
building materials
Financials 3.81 O/w• Our preference of stocks is driven by retail focus, healthy capital position
and fair valuations.
Consumer
Discretionary2.05 O/w
• Prefer select Home improvement, Consumer Goods and aspirational goods
within this space.
Telecom 0.23 E/w• Industry has consolidated and has gravitated firmly towards a three player
market. Our preference is for companies where bulk of the capex is behind.
Utilities -3.25 U/w
• Private companies in the sector are suffering from lower merchant rates
and lack of long term Power Purchase Agreements (PPAs) by State
Electricity Boards. Our preference is for Public sector over Private sector.
Healthcare -3.27 U/w
• Our preference is for stocks with relatively higher growth, lower
dependence on select drugs to drive revenues, fair valuations and the ones
with lesser degree of US FDA related concerns.
Information
Technology-3.38 U/w
• Our preference of stocks is driven by higher revenue visibility, ability to
adapt to industry disruptions and relative valuations.
Energy -5.28 U/w• Our preference is for companies where bulk of the capex is behind us and
which may turn into free cash flow positive in the medium term.
Consumer
Staples-6.91 U/w
• The underlying growth trends still remain moderate and the valuations
continue to remain expensive.Data as on 30 June 2018
Why invest in HSBC Multi Cap Equity Fund
• Good mix of large cap and mid cap stocks in the portfolio without exposure to excessive risk – in line with the risk appetite of
investors
• True to label fund – The fund will stay true to its objective in keeping with the mandate reposed by the investor whilst investing in
the fund
Who can benefit from this fund?
• Investors intending to create a corpus through generating inflation-adjusted returns to cater to their long-term goals
• Investors seeking an exposure across market capitalisations in their portfolio to get a good value from opportunities existing
across small, mid and large cap segments
• Investors who regularly set aside their investible surplus can look to generate retirement corpus by investing through the
systematic investment plan route
Portfolio Asset Allocation Market Capitalisation
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Lump sum investment performance
SIP performance
Returns are of growth option. The returns for the respective periods are provided as on 30 June 2018. Returns above 1 year are Compounded Annualized. Standard benchmark is prescribed bySEBI 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 beenrounded 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 performancedetails 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 other funds managed by the Fund Manager
10 Pursuant to the circular issued by SEBI on ‘Categorization and Rationalization of the Schemes, there has been change in the fundamenta l attribute(s) of the aforesaid effective from Mar 14, 2018.Performance of the respective benchmark is calculated as per the Total Return Index (TRI)11 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. 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&P Dow Jones Indices LLC. (source:
ttp://www.asiaindex.co.in).
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Equity Market Update
• We continue to see divergence in the performance of Large caps and that of Mid / Small caps
• The current cycle of re-rating in mid / small caps and subsequent correction is as a result of valuations in the space running ahead
of actual earnings delivery / expectations. This coupled with headwinds from increase in commodity prices especially global crude
oil and INR depreciation.
• Valuations at an aggregate level and for individual stocks within the mid / small cap space have now moderated
• We are likely to see meaningful acceleration in corporate earnings growth over the next 2-3 years driven by the favourable base
as well as genuine uptick in domestic demand and consumption
• We remain constructive on the India story from a medium to long term perspective.
• The factors to closely track in the near to medium term would be the RBI’s policy actions, election calendar culminating in the
general elections, global crude price dynamics, rising trends of protectionism in the developed economies and the interest rate
actions in the US
Disclaimer:
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
HSBC Asset Management (India) Private Limited, 16, V.N. Road, Fort, Mumbai-400001
Email: [email protected] | Website: www.assetmanagement.hsbc.com/in
Performance of the respective benchmark is calculated as per the Total Return Index (TRI)
Expressions of opinion are those of HSBC only and are subject to change without any prior intimation or notice. 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 financial advice regarding the
appropriateness of investing in any securities or investment strategies that may have been discussed or recommended in this report and should understand that
the views regarding future prospects may or may not be realised. Neither this document nor the units of HSBC Mutual Fund have been registered in any
jurisdiction. The distribution of this document in certain jurisdictions may be 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.
NA – Not applicable
Returns are of growth option. The returns for the respective periods are provided as on 30 June 2018. 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.
1. 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.
2. 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 thesecurity's price will be more volatile than the market.
3. Portfolio turnover is a measure of how frequently assets within a fund are bought and sold by the managers.
4. Price to Book (PB) and Price to Earnings (PE) are stocks valuation parameters relative to its earnings
5. Return on equity (ROE) is a measure of profitability that calculates how much of profit a company generates on shareholders' equity.
6. 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 accountfor a greater portion of the portfolio.
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Performance of other funds managed by the Fund Manager