HSBC Multicap Fund

Fund of the Month: Invesco India Large & Mid Cap Fund

Fund Manager: Aditya Khemani

SEBI Categorisation:Large & Mid Cap Fund

Type & Investment Objective

To Generate capital appreciation from a diversified portfolio of predominantly Equity and Equity Related Instruments of Large and Midcap companies.
 

Fund Investment Strategy

An “All- weather” equity fund. Provides broad based exposure to market.Bottom up and top-down approach to select stocks. Style: Blend of Growth & Value Style.
 

Outlook

- Geopolitical developments continue to influence market outlook. While the West Asia conflict remains unresolved, there is increasing likelihood of a more durable peace arrangement, driven by mutual economic and strategic imperatives. A resolution particularly easing supply disruptions could reduce the geopolitical risk premium and improve macro stability.

- With India markets underperforming through much of 2025 and early 2026, aggregate valuations now appear even more attractive relative to the start of the year. Besides, with Nifty earnings forecasts also having stabilized, there is guarded optimism around return to double-digit growth through FY27 though near-term could be modest due to the recent geopolitical crisis. With this backdrop, Nifty is now trading in line with its long-term average. Midcap valuations are above average, but with relatively stronger and more resilient earnings growth, whereas smallcap valuations are elevated but probably at the start of a new earnings cycle

- Overall, the medium-term outlook remains constructive. Despite recent underperformance and heavy FII outflows, valuations have become more attractive, improving the risk-reward balance. Policy support, fiscal space, and resilient domestic demand should underpin growth. Historically, event-driven disruptions have tended to present investment opportunities, reinforcing confidence in a gradual recovery in both economic activity and markets.
 

Sectoral Overweights

- Consumer Discretionary: Expect consumption to pick up gradually over the coming quarters

- Real Estate: Bullish on this space as AMC is seeing the larger established players taking market share away from the smaller players and hence growing at a much faster rate
 

Sectoral Underweights

-Consumer Staples: Within the staples, most of the categories have high penetration and hence the growth rate will not be material and hence AMC has chosen to be overweight on discretionary.

- Utilities: Within the space AMC doesn't see not many companies offering both reasonable growth and a decent ROE. Underweight due to valuations at which they are trading.
 

Sectoral Attribution – Fund Vs Benchmark – 1 Year Performance

- Selection in financials, healthcare, IT contributed to the alpha. While, selection in consumer discretionary, industrials and materials weighed on the performance.

Active Share (%):83

This fund is recommended for investors with an investment horizon of 2-3 years, in line with investors’ individual risk profile and product suitability.

 

Scheme Features

•  Options: Growth and Income Distribution cum capital withdrawal (IDCW)
•  Minimum Investment amount: Rs. 100
• Load Structure Exit Load: "If redeemed before 1 Year; Exit Load is 1%; If units are redeemed/switched out within 1 year from the date of allotment:if upto 10% of units allotted are redeemed/switched out - Nil.Any redemption / switch-out of units in excess of 10% of units allotted - 1%.If units are redeemed/switched out after 1 year from the date of allotment, no exit load is payable."
• Benchmark Index: NIFTY Large Midcap 250 TRI
• May 2026 [Fund Size in Crs] 10,152.74
• NAV: 52 Week High / Low: Rs. 104.51 / 86.67
  
  

Product Label

This product is suitable for investors who are seeking*:

• capital appreciation over long-term
• Investments predominantly in equity and equity-related instruments of large and midcap companies
   

* Investors should consult their financial advisors if in doubt about whether the product is suitable for them..

Source for entire data stated above is ICRA Analytics Ltd. (For Disclaimer of ICRA Analytics Ltd, refer https://icraanalytics.com/home/disclaimer)

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