HSBC Financial Services Fund

(An open-ended equity scheme investing in financial services sector)

India's financial services sector is poised for significant growth driven by country’s rapidly expanding economy, offering immense opportunities for wealth creation. With increasing financial inclusion, rapid digital transformation and progressive regulatory reforms, the sector is evolving into a dynamic ecosystem that supports diverse financial needs.

From banking and insurance to asset management and fintech, the sector is poised for exponential growth, making it an attractive avenue for investors seeking long-term value. The banking sector is considered the backbone of the Indian economy, playing a crucial role in economic growth and development whereas the financial services sector is on a growth trajectory, driven by increasing financial inclusion, digitaisation and supportive regulatory policies. These factors contribute to the potential for robust growth in the sector, making it an attractive proposition for investors seeking to capitalise on the sector's performance.

Financial services sector offers diverse collection of growing themes

Investment Objective

The investment objective of the scheme is to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related securities of companies engaged in financial services businesses. There is no assurance that the investment objective of the scheme will be achieved.

Portfolio construction approach

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 Financial Services Fund?

• Financial sector is expected to grow 2x of GDP to achieve the Viksit Bharat ambition
• The share of financial assets within the overall Indian households mix has been increasing
• Technology has reformed the financial landscape – Smartphone penetration, lowest data cost led to increase in active internet user
• Government initiatives have accelerated the pace of growth in the sector – UPI, Aadhaar, GST, Digilocker and ONDC are some of the major enablers for the improved prospects of financial services sector
• Change in behaviour of Indians – Risk averse to Return focused approach is driving investments towards assets such as Equity, Mutual Funds
• HSBC Financial Services Fund may have more allocation to non-lending themes such as Capital Market, Mutual Funds, Insurance, Wealth Management, Depositories, etc.
• The fund may not follow benchmark hugging strategy to create a differentiated portfolio which may have potential for growth
• Also aims to have higher weightage to Mid-Small Cap segment compared to benchmark

Scheme name and Type of scheme HSBC Financial Services Fund (An open ended equity scheme investing in financial services sector) This product is suitable for investors who are seeking*: To create wealth over long term Investment predominantly in equity and equity related securities of companies engaged in financial services businesses.

Scheme Risk-o-meter

Benchmark Risk-o-meter (as applicable) As per AMFI Tier I Benchmark i.e. Benchmark Index: BSE Financial Services Index TRI

* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

The product labelling assigned during the New Fund Offer (NFO) is based on internal assessment of the Scheme characteristics or model portfolio and the same may vary post NFO when the actual investments are made.

Map Disclaimer

Source of map: www.surveyofindia.gov.in

Map of India is used for illustrative purpose only and is not a political map of India

Note – The above information is for illustrative purpose only. The sector(s)/issuer(s) mentioned in this document do not constitute any research report nor it should be considered as an investment research, investment recommendation or advice to any reader of this content to buy or sell any stocks/investments. Please refer Scheme Information Document (SID) for more details.

Note - Please refer Scheme Information Document (SID) for more details on Investment Approach and other details.

Source: RBI, Financial Stability Board, World Bank, Federal Reserve, Bundesbank, BCG analysis, # FICCI-IBA-BCG report titled ‘Banking for a Viksit Bharat’, RBI; MoSPI, NSE, AMFI, NPS Trsu, Tracxn, BCG analysis, TRAI, Cable.co.uk, Kantak / JM Financial & Beams Fintech Analysis Report, HSBC Mutual Fund.

The sector(s)/stock(s)/issuer(s) mentioned in this document do not constitute any research report nor it should be considered as an investment research, investment recommendation or advice to any reader of this content to buy or sell any stocks / investments. The Fund/portfolio may or may not have any existing / future position in these sector(s)/stock(s)/issuer(s). Past performance may or may not be sustained in future and is not a guarantee of any future returns.