Beginners Guide in Evaluating HSBC Mutual Fund Performance

HSBC Mutual Fund

May 2002 marked the launch of HSBC AMC, which now operates in 23 countries. Over the years, the company has expanded its portfolio by launching schemes in multiple categories. Currently, HSBC offers over 41 open-ended schemes and manages assets of around Rs. 1,8,712.97 crores in June 2024. 

Moving on from the HSBC mutual fund AMC details, let’s now understand the returns generated by this AMC through its different schemes.  

Reviewing HSBC Fund Performance

Let’s review the performance of different HSBC funds. 

1. HSBC Managed Solutions India Growth Fund 

This fund operates as a Fund of Funds (FoF). That means it primarily invests in a broad portfolio of other mutual funds managed by HSBC. The fund managers of this scheme employ a combination of top-down and bottom-up approaches to select the underlying funds. However, the fund has a ‘Very High’ risk profile. 

Over the past five years, the fund has delivered a 3-year return of 16.24%. The scheme performance is benchmarked against a composite index comprising 80% of the S&P BSE 200 TRI Index and 20% of the CRISIL Composite Bond Index.

2. HSBC Value Fund Direct

This scheme follows an approach that focuses on undervalued securities and may also involve investing in foreign securities in international markets. The last 3 years’ annualized return for this scheme is 27.72%. 

The fund also has an expense ratio of 0.79%, which is below the category average. The scheme has a fund size of 11,430.68 Crores.

3. HSBC Focused Fund

This fund invests in up to 30 companies across various market capitalisations. The fund has an AUM of Rs 1569.67 Crores. The scheme’s current allocation is 45.26% in large-cap stocks, 10.54% in mid-cap stocks, and 22.7% in small-cap stocks.

This scheme’s last three-year annualized return is 18.76%, which is slightly better than the category average of 18.61%.

4. HSBC Conservative Hybrid Fund Direct

This scheme provides investors with a balanced portfolio of equity and debt instruments. It invests 24.21% of its assets in domestic equities and across large, mid, and small-cap stocks. The remaining 72.07% is invested in debt instruments, and out of this percentage, 67.61% in government securities. 

Over the last three years, the scheme generated an annualized return of 8.02%. The fund’s expense ratio is 1.35%, which is slightly below the category average, suggesting efficient fund management. 

5. HSBC Medium Duration Fund

It is an open-ended medium-term debt scheme that invests primarily in debt and money market securities. The fund operates with a Macaulay portfolio duration between 3 and 4 years, indicating a relatively high-interest rate risk and moderate credit risk. 

The fund has demonstrated an annual return of 7.44%, while its benchmark CRISIL 10-Year Gilt Index return stands at 6.24%.

This Medium Duration Fund maintains a major allocation of its portfolio in AAA or equivalent securities. However, there is nil exposure to AA- and below-rated names.

6. HSBC Infrastructure Fund 

It is a sectoral/thematic mutual fund that invests in equity and equity-related securities of companies engaged in the infrastructure sector. The scheme allocates 39.12% in large-cap stocks, 14.14% in mid-cap stocks, and 36.43% in small-cap stocks. 

In the last year, the fund has generated an annualized return of 45.04%, outperforming its benchmark, the Nifty Infrastructure TRI, which stood at 42.48%.

Over a three-year period, the fund has provided an annualized return of 33.98%.


If you wish to invest in MF, HSBC AMC can be a good option. Evaluating an HSBC fund’s performance isn’t just about looking at past returns. It is about understanding the fundamentals, comparing them to benchmarks, and considering fees. Happy Investing!

Magazine Union

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