HSBC Consumption Fund

Consumption Fund - An open ended equity scheme following consumption theme

India is broadly where China was in CY06. Since then, China has seen explosion in consumption spends across categories and we believe that India will follow similar path. India is favorably positioned due to its demographics, formalization of economy, increase women participation in workforce etc. Aspirational Indian are more tech savvy and influenced by social media and ready to spend now than later through use of credit. We are witnessing consumption shifting from unorganized to organized, premium categories and consumer behavior moving towards buying everything anywhere. This should drive strong consumptions spends in the coming decade. HSBC India Consumption fund will aim to capture this strong underlying growth trends in the country.

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 of companies engaged in or expected to benefit from consumption and consumption related activities. However, there can be no assurance or guarantee that the investment objective of the scheme will be achieved.

Benchmark Index (Tier 1)

Nifty India Consumption Index TRI

The Nifty India Consumption Index is designed to reflect performance of a diversified portfolio of companies representing the domestic consumption sector which includes sectors like Consumer Non-durables, Healthcare, Auto, Telecom Services, Pharmaceuticals, Hotels, Media & Entertainment, etc. The Nifty India Consumption Index comprises of 30 companies listed on the National Stock Exchange (NSE).

The Scheme is being benchmarked against the Index mentioned above, since the composition of Index is in line with the investment objective of the Scheme and is most suited for comparing performance of the Scheme.

Investment strategy

Our philosophy

• Follow investment mandate
• Active Fund Management
• Research based stock selection
• Robust risk management

Our process

Proprietary research drives stock selection:

Power of SAPM - Equity investment process comprises three stages

• Selection of Ideas
• Analysis of Companies
• Portfolio Creation and Monitoring

Why HSBC Consumption Fund?

• The Fund can generate long-term capital growth from an actively managed portfolio of companies engaged in or expected to benefit from consumption
• Some of the sectors from the Consumption sectors have potential to offer consistent growth even in economic downturn
• The fund with a minimum 80 per cent weight in consumption index and up to 20 per cent outside its benchmark where key consumption enablers will be in focus can offer high growth and consistency over a long term.