| HSBC Mutual Fund has introduced a new open-ended equity scheme, the HSBC India Export Opportunities Fund. This fund is designed to capitalize on the growth of India's export sector by investing in companies that generate a significant portion of their revenue from exports.
The new fund offer (NFO) is open for subscription from September 5th to 19th, 2024. Investors can choose from regular and direct plans, each with growth and IDCW options.
The HSBC India Export Opportunities Fund aims to provide long-term capital growth by investing in companies across market capitalizations. It will be managed by experienced fund managers Abhishek Gupta and Sonal Gupta. The fund is benchmarked against the Nifty 500 Total Return Index (TRI) and it requires a minimum initial investment of Rs 5,000.
The scheme will maintain a minimum exposure of 80% of net assets in equities & equity related securities of companies engaged in or expected to benefit from export of goods and services. The scheme will remain invested in the export theme regardless of the fundamental outlook, macroeconomic, environment, liquidity / prospects of the companies for this theme. This may result in volatility in scheme performance depending on outlook for the export theme.
The scheme intends to invest primarily in equities and equity-related securities of companies from the sectors/industry having exports with revenue more than 20% from outside India, including IT software and services, pharmaceuticals & biotechnology, automobiles & auto components, telecom services, petroleum products, chemicals, metals, textiles & apparels, industrial products and manufacturing, agricultural food and other products, construction, transport services, electrical equipment, and healthcare services.
The fund also has flexibility to invest upto 20% asset in other equities and equity related securities.
By investing in the HSBC India Export Opportunities Fund, investors can gain exposure to the growing Indian export sector, which is expected to benefit from favorable government policies, supply chain diversification, and competitive advantages. The Indian government has set an ambitious target to achieve $2 trillion exports by 2030 implying exports share to increase to ~29%. The government expects exports to grow at ~15% CAGR over FY24-30, with services likely to grow faster than manufacturing. This will aid India to increase its share in world manufacturing from less than 3% in 2023 to its ambition of 5% in 2030 and 10% in 2047.
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