HSBC Value Fund

Fund of the Month: HSBC Value Fund

Fund Manager: Venugopal Manghat, Mayank Chaturvedi

SEBI Categorisation: HSBC Value Fund

Type & Investment Objective

The investment objective of the Scheme is to generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity related securities, in the Indian markets with higher focus on undervalued securities. The Scheme could also additionally invest in Foreign Securities in international markets

Fund Investment Strategy

Diversified equity fund with strong value bias that aims to deliver long term reasonable risk adjusted returns. Value style (Market price < Intrinsic value of stock) and Bottom-up approach with aim to invest across market caps and sectors. Focus on identifying valuation anomalies versus the economic potential of the business over the medium term. Aims to minimize portfolio risk by investing in quality companies. The fund looks to invest in fundamentally strong companies that the fund manager believes are trading at less than their assessed values thus offering higher upside potential. This approach not only helps in identifying undervalued stocks but also factor-in the risk elements while picking stocks. investment style focused on identifying high-quality businesses at reasonable valuations with significant growth potential (GARP).

Outlook

• The global market outlook remains cautiously constructive despite rising geopolitical tensions and policy uncertainty. Global growth momentum has moderated but remains resilient, supported by technological investments, improving liquidity conditions and continued corporate earnings growth. The United States economy continues to expand at a steady pace, with strong investment in artificial intelligence and technology sectors supporting productivity, although a gradually cooling labour market and inflation dynamics may moderate growth going forward. European markets are benefiting from improving valuations, stabilizing economic activity and the ongoing rotation of global capital towards value-oriented markets. Meanwhile, emerging markets have shown improving momentum, supported by relatively stronger growth prospects.

• Nifty consensus EPS estimate for CY26/27 were largely unchanged in Feb’26 as per Bloomberg. Nifty now trades on 19.5x 1-year forward PE. This is now in-line with its 5-year average and a ~10% premium to its 10-year average.

• India’s growth remains quite resilient despite the global macro-economic challenges. Interest rate and liquidity cycle are supportive of a pick-up in growth going forward. 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. AMC expects higher private investments in renewable energy and related supply chain, localization of higher-end technology components, and India becoming a more meaningful part of global supply chains to support faster growth.

Sectoral Overweights

• Textile & Apparels: Attractive valuations, Supply chain efficiencies, Global demand.

• Banks & Finance: Credit Growth, Digital transformation, Financial Inclusion.

Sectoral Underweights

• IT - Software: Global Demand Slowdown, Margin Pressures, Client Budget Cuts

• Automobiles: Cautious and under review, rising inflation, Valuations stretched.

Sectoral Attribution – Fund Vs Benchmark – 1 Year Performance

• Top 3 Contributors: 1. IT - Software 2. Banks and Financials 3. Textile & Apparels

• Top 3 Detractors: 1. Petroleum Products 2. Automobiles 3. Industrial Products.

Active Share (%): 67.77

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 the units redeemed or switched out are upto 10% of the units purchased or switched in (the limit) within 1 year from the date of allotment – Nil.If units redeemed or switched out are over and above the limits within 1 year from the date of allotment - 1%.If units are redeemed or switched out on or after 1 year from the date of allotment - Nil."

• Benchmark Index: Nifty 500 TRI

• February 2026 [Fund Size in Crs] 14,750.42

• NAV: 52 Week High / Low: Rs. 115.93 / 90.83
  
   

Product Label

This product is suitable for investors who are seeking*:

• Long term capital appreciation

• Investment predominantly in equity and equity-related securities in Indian markets and foreign securities, with higher focus on undervalued securities

*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)

Disclaimer:This document has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. HDFC Bank Limited ("HDFC Bank") does not warrant its completeness and accuracy. This information is not intended as an offer or solicitation for the purchase or sale of any financial instrument / units of Mutual Fund. Recipients of this information should rely on their own investigations and take their own professional advice. Neither HDFC Bank nor any of its employees shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way from the information contained in this material. HDFC Bank and its affiliates, officers, directors, key managerial persons and employees, including persons involved in the preparation or issuance of this material may, from time to time, have investments / positions in Mutual Funds / schemes referred in the document. HDFC Bank may at any time solicit or provide commercial banking, credit or other services to the Mutual Funds / AMCs referred to herein.

Accordingly, information may be available to HDFC Bank, which is not reflected in this material, and HDFC Bank may have acted upon or used the information prior to, or immediately following its publication. HDFC Bank neither guarantees nor makes any representations or warranties, express or implied, with respect to the fairness, correctness, accuracy, adequacy, reasonableness, viability for any particular purpose or completeness of the information and views. Further, HDFC Bank disclaims all liability in relation to use of data or information used in this report which is sourced from third parties.

HDFC Bank House, 1 st Floor, C.S. No. 6 \ 242, Senapati Bapat Marg, Lower Parel, Mumbai 400 013. Phone: (91)-22-66527100, ext 7111, Fax: (91)-22-24900983 \ 24900858

HDFC Bank is a AMFI-registered Mutual Fund Distributor & a Corporate Agent for Insurance products.

Mutual fund investments are subject to market risks, read all scheme related documents carefully.