HSBC Mutual Fund has introduced the HSBC Financial Services Fund, an open-ended equity scheme focusing on the financial sector. The fund will be open for investment from February 6 to February 20.
Its main objective is to provide strong long-term returns by investing in stocks of both lending and non-lending financial companies.
Types of Stocks in the Portfolio
The fund’s portfolio will include a variety of financial companies, such as:
1) Banks
2) Non-Banking Financial Companies (NBFCs)
3) Stock Broking Firms
4) Asset Management Companies
5) Credit Rating Agencies
6) Insurance and Fintech Firms
7) Investment Banking Companies
Gautam Bhupal, Senior Vice President (Fund Management-Equities) at HSBC Mutual Fund, will manage the fund, which will use the BSE Financial Services Index TRI as its benchmark.
Growth Potential in the Financial Sector
The financial sector is expected to grow significantly, fueled by India’s expanding economy.
HSBC Mutual Fund’s CEO, Kailash Kulkarni, highlights that India’s GDP is projected to increase from $3.4 trillion to $30 trillion by 2047.
This economic growth is likely to benefit the financial sector, which could double in size, contributing to India’s goal of becoming a developed nation by 2047.
Existing Financial Services Funds and Their Returns
Other financial services funds have already delivered impressive returns:
ICICI India Financial Services Fund: 19.43% (last 3 years)
ICICI Pru Banking & Financial Services Fund: 13.78% (last 3 years)
SBI Banking and Financial Services Fund: 17.13% (last 3 years)
The financial sector provides numerous investment opportunities, including stocks from top private and government banks, as well as smaller companies.
Many banking stocks have shown strong performance over the medium and long term.
Should You Invest in HSBC Financial Services Fund?
HSBC Mutual Fund currently manages 44 open-ended funds, covering equity, debt, hybrid, and index categories, with an AUM of ₹1.25 lakh crore as of December 31, 2024.
However, thematic funds like this one carry risks. Before investing, consider reviewing the fund’s details, comparing it with others,
and seeking advice from a financial advisor. It’s important to assess the fund’s suitability for your financial goals.
