HSBC Mutual Fund has launched the HSBC Financial Services Fund, an open-ended equity scheme. This fund will invest in stocks within the financial sector and will be open for investment from 6 February to 20 February.
The main goal of this scheme is to offer strong long-term returns to investors. It will focus on stocks from both lending and non-lending financial companies.
Types of Stocks in the Fund Portfolio
The portfolio of this fund will include stocks from a variety of financial companies, such as:
1) Banks
2) Non-Banking Financial Companies (NBFCs)
3) Stock Broking Firms
4) Asset Management Companies
5) Credit Rating Agencies
6) Insurance and Fintech Firms
7) Investment Banking Companies
The fund will be managed by Gautam Bhupal, Senior Vice President (Fund Management-Equities) at HSBC Mutual Fund. It will track the BSE Financial Services Index TRI as its benchmark.
Growth Potential in the Financial Sector
HSBC Mutual Fund’s CEO, Kailash Kulkarni, expects strong growth in the financial sector, driven by India’s expanding economy.
India’s GDP is projected to grow from $3.4 trillion to $30 trillion by 2047, which will benefit the financial sector, potentially doubling in growth. This growth is part of India’s aim to become a developed nation by 2047.
Strong Performance of Existing Funds
There are already several financial services funds available in the market that have shown good returns. For example:
1) ICICI India Financial Services Fund: 19.43% return over the last 3 years.
2) ICICI Pru Banking & Financial Services Fund: 13.78% return in the last 3 years.
3) SBI Banking and Financial Services Fund: 17.13% return in the last 3 years.
Wide Investment Options in the Financial Sector
The financial sector, including banks and NBFCs, offers plenty of investment opportunities. There are stocks available from both large and small companies, including top private and government banks. Many of these banking stocks have performed well over the medium and long term.
Should You Invest in HSBC Financial Services Fund?
HSBC Mutual Fund manages 44 open-ended funds, including equity, debt, hybrid, and index funds. As of December 31, 2024, the fund’s assets under management (AUM) stood at Rs 1.25 lakh crore.
While there are many financial services funds in the market, experts suggest evaluating their past performance before investing.
Thematic funds, like this one, come with risks, so it’s important to understand the details before investing. It may be wise to consult a financial advisor before making any decisions.
