HSBC Multicap Fund

Fund of the Month: HSBC Multicap Fund

Fund Manager: Venugopal Manghat, Mahesh Chabari

SEBI Categorisation: Multi Cap Fund

Type & Investment Objective

The investment objective of the Fund is to generate long-term capital growth from an actively managed portfolio of equity and equity related securities across market capitalization. However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.
 

Fund Investment Strategy

Diversified exposure: The fund invests across large, mid, and small caps, ensuring balanced participation across market segments. Opportunity across valuations: In the current market environment, the strategy focuses on identifying reasonably valued businesses with growth potential. Bottom-up stock selection: Emphasis on company-level fundamentals rather than market timing helps capture long-term opportunities. Disciplined portfolio and risk framework: Allocation, position sizing, and regular monitoring of liquidity and volatility help maintain portfolio balance. FM follows a GARP approach.
 

Outlook

- Global markets staged a strong recovery in April despite continued pressure from elevated crude oil prices, which remained above USD 100 per barrel. Investor sentiment improved meaningfully after the sharp correction seen in March, leading to broad-based gains across developed and emerging markets. That said, the global macro environment remains mixed. The ongoing geopolitical tensions, particularly in West Asia, remain a key risk. The disruption around critical energy supply routes has kept oil prices elevated, raising concerns around sustained inflation and potential growth shocks. Markets are increasingly factoring in a scenario of “higher-for-longer” inflation, which may limit the flexibility of central banks in the near term.

- Nifty consensus EPS estimate for CY26/27 were downgraded by 4% and 1% in April 2026 as per Bloomberg. Accordingly, Nifty now trades at 18.6x 1-year forward PE. This is now at a 5% discount to its 5-year average and a 2% premium to its 10-year average.

- AMC believes India’s growth remains quite resilient despite the global macro-economic challenges. AMC expects India’s investment cycle to be on a medium-term uptrend supported by government investment in infrastructure, support to manufacturing and pickup in private investments. Announcements of potential trade deals with EU and US should help support private capex driven by improved medium term tariff certainty and export competitiveness. Nifty valuations are trading at 10-year average. AMC remains constructive on Indian equities on a longer-term basis however near-term outlook remains more uncertain due to conflicts.
 

Sectoral Overweights

- Construction: Government Capex Push, Strong order book visibility, Execution Cycle upswing

- Electrical Equipment: Power Capex Revival, Energy Transition Tailwinds
 

Sectoral Underweights

- Petroleum Products: Margin Volatile, Crude Oil Price Sensitivity, Government intervention risk.

- Petroleum: Margin Volatility, Crude Oil Price Sensitivity, Government intervention risk.
 

Sectoral Attribution – Fund Vs Benchmark – 1 Year Performance

- Top Contributors: 1. Electrical Equipment 2. Capital Market & 3. Construction

- Top Detractors: 1. Bank and Financials 2. Petroleum Products & 3. Automobile
 

Active Share (%): 65.14

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. 5000
• Load Structure Exit Load: "If redeemed before 1 Year ; Exit Load is 1%; If units redeemed or switched out are upto 10% of the units purchased or switched in within 1 year from the date of allotment â?? Nil, If units redeemed or switched out are over and above the limit within 1 year from the date of allotment â?? 1%,If units are redeemed or switched out on or after 1 year from the date of allotment. â?? Nil"
• Benchmark Index: NIFTY 500 Multicap 50:25:25 TRI
• April 2026 [Fund Size in Crs] 5,500.08
• NAV: 52 Week High / Low: Rs. 19.28 / 16.68
  
  

Product Label

This product is suitable for investors who are seeking*:

• To create wealth over long-term
• Investment predominantly in equity and equity related securities across market capitalization
   

*Investors should consult their financial advisers 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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