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HSBC Mid Cap Fund
Midcap Fund – An open ended equity scheme predominantly investing in mid cap stocks
(Formerly known as L&T Midcap Fund. HSBC Midcap Fund has merged into L&T Midcap Fund and the surviving scheme has been renamed)
Investment Objective
To seek to generate long-term capital growth from an actively managed portfolio of equity and equity related securities of predominantly mid cap companies. However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.
Our philosophy
- Disciplined investment approach with “fundamental research” as the foundation of our investment decision making process
- Focus on companies with an attractive combination of profitability and valuation
- Look to own scalable businesses with strong execution capability, proven management track record and strong financials
Our process
Proprietary research drives stock selection:
- Our equity investment process comprises three stages – Stock selection, Stock analysis and Portfolio construction
- Use a combination of quantitative and qualitative filters to arrive at a list of investable universe of stocks
- Evaluate stock ideas on the basis of three key parameters, namely Quality of Business, ESG and Valuation
- Portfolio construction is an outcome of the above mentioned investment process and tracked against predefined risk matrix
Why HSBC Midcap Fund?
- To seek an exposure in mid cap segment stocks for higher alpha generating opportunities
- A top down and bottom up approach will be used to invest in equity and equity related instruments
- True to label fund – The fund will stay true to its objective in keeping with the mandate reposed by the investor whilst investing in the fund
- To create a corpus through generating inflation-adjusted returns to cater to long-term goals
Performance snapshot
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- HSBC Midcap Fund-Regular plan has given 26.83 per cent CAGR vs 14.05 per cent Scheme Benchmark (NIFTY Midcap 150 TRI) during 1 year. In 3 years the fund has given 25.11 per cent CAGR vs 17.67 per cent of benchmark. Over the long term (10 years) the fund has given 16.92 per cent CAGR vs 17.50 per cent. of benchmark.
- HSBC Midcap Fund-Direct plan has given 28.18 per cent CAGR vs 14.05 per cent Scheme Benchmark (NIFTY Midcap 150 TRI) during 1 year. In 3 years the fund has given 26.45 per cent CAGR vs 17.67 per cent of benchmark. Over the long term (10 years) the fund has given 18.24 per cent CAGR vs 17.50 per cent. of benchmark.
- In the past, HSBC Midcap Fund – Regular plan has delivered a 19.2 per cent CAGR and has multiplied investors’ wealth by about 48 times since inception
- ₹1,00,000 invested in Aug 2004 has become more than ₹48 lakhs. A monthly SIP of ₹10,000 has grown to ₹2.6 crore.
FAQs – Frequently Asked Questions
What are mid-cap stocks?
Mid-cap stocks represent companies that fall within the mid-cap segment of the equity market. They typically sit between large-cap and small-cap companies in terms of market capitalisation.
Why do investors consider mid-cap funds?
Mid-cap companies can offer exposure to businesses that are in a phase of expansion and development. This can provide an opportunity to participate in their growth over the long term, although such investments can also experience significant market fluctuations.
How important are valuations when investing in mid-caps?
Valuations are an important consideration because strong growth expectations can sometimes be reflected in stock prices. As of August 2026, the Midcap 150 Index traded at 26.4x, compared with its long-term average of 24.8x.
What is the current earnings outlook for mid-cap companies?
The Fund Lens highlights an expected 21 per cent growth in Midcap 150 Index PAT in FY27, following mid-teens earnings growth in FY26.
Tell us about HSBC Midcap Fund and what is the investment approach followed by the fund manager?
HSBC Midcap Fund is an open-ended equity scheme predominantly investing in mid-cap stocks, with the objective of seeking long-term capital growth.
The fund follows a bottom-up stock selection approach, supported by a top-down view. Its 4Q framework evaluates Quality of Business, Quality of Management, Quality of Earnings and Quantum of Earnings.
How does the fund construct its portfolio and what does the 4Q investment framework mean?
The framework assesses the scalability and competitive advantage of a business, management track record and governance, consistency of earnings and cash flows, and the potential for strong earnings growth.
The portfolio is built across Stable/Leaders, High Growth/Challengers and Themes/Turnarounds, with each category serving a different role in the portfolio.
How diversified is the portfolio?
As of 31 August 2026, the fund held 49 equity stocks. The top 5 stocks accounted for 20.34 per cent and the top 10 stocks for 36.90 per cent of the portfolio.
Does the fund invest only in mid-cap stocks? What’s the funds current view on mid-cap valuations?
The scheme predominantly invests in mid-cap stocks but can have exposure to other market-cap segments. As of August 2026, the portfolio had 68.1 per cent mid-cap, 25.9 per cent small-cap, 5.1 per cent large-cap and 1.0 per cent cash exposure.
How has HSBC Midcap Fund lumpsum investment performed over the last 1, 3, 5 and 10 years?
- 1-year performance: As at 31 August 2026, the Regular Plan – Growth option delivered 26.83 per cent, compared with 14.05 per cent for the NIFTY Midcap 150 TRI
- 3-year performance: The option delivered a 25.11 per cent CAGR, compared with 17.67 per cent for the NIFTY Midcap 150 TRI
- 5-year performance: The option delivered an 18.88 per cent CAGR, compared with 17.82 per cent for the NIFTY Midcap 150 TRI.
- 10-year performance: The option delivered a 16.92 per cent CAGR, compared with 17.50 per cent for the NIFTY Midcap 150 TRI.
How has the fund performed through SIPs?
For a ₹10,000 monthly SIP, the Regular Plan delivered 21.23 per cent XIRR over 3 years and 22.62 per cent over 5 years. Since inception, the SIP value was ₹2.60 crore on a total investment of ₹26.40 lakh, with a 17.70 per cent XIRR.
What are the key sectors currently preferred by the fund?
The Fund Lens highlights preferences for Electrical Equipment, Retailing, Industrial Manufacturing, Finance and Automobiles. The stated rationale includes power infrastructure opportunities, manufacturing themes, credit growth and electrification.
What are some key portfolio characteristics of the fund?
As of 31 August 2026, the fund had an Active Share of 73.47 per cent, Beta of 1.01, Sharpe Ratio of 0.98, Standard Deviation of 20.02 per cent and one-year portfolio turnover of 1.31.
What type of investor is HSBC Midcap Fund suitable for?
The scheme is intended for investors seeking long-term wealth creation and investment in equity and equity-related securities of mid-cap companies.
Cheenu Gupta
Senior Vice President & Fund Manager – Equity, HSBC Mutual Fund
Investment Experience – 20 years
Cheenu Gupta is Equity Fund Manager at HSBC Asset Management India and brings with her around 20 years of rich experience. She joined HSBC as part of the L&T Investment Management team. Prior to that Cheenu, worked with Canara Robeco AMC, where she worked as Equity Fund Manager. She was also associated with Tata AIA Life Insurance as Equity Fund Manager, ING Investment Management as Senior Research Analyst and UTI Mutual Fund as Analyst.
Cheenu is a CFA charter holder (USA) and has completed her PGDBM from S.P. Jain, Mumbai, where she was a gold medallist in her Finance specialization. She is also a B.E. (Information Technology) from VESIT, Mumbai University.
Fund Manager - Cheenu Gupta Effective 26 Nov 2022. Total Schemes Managed – 5, Fund Manager - Mayank Chaturvedi Effective 01 Oct 2025. Total Schemes Managed - 19
Source: HSBC Mutual Fund, Data as on 31 Aug 2026. 2 As on 9 Aug 2004 of Growth option regular plan. During the same period, value of scheme benchmark (NIFTY Midcap 150 TRI) is not available. Please refer page detailed performance of HSBC Mid Cap Fund. 3 During the same period, value of scheme benchmark (NIFTY Midcap 150 TRI) is not available. Note: 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. The performance details provided herein are of Regular as well as Direct Plan - Growth Option. Returns on ₹10,000 are point-to-point returns for the specific time period, invested at the start of the period. The returns for the respective periods are provided as on last available NAV of Aug 2026 for the respective schemes. Returns for 1 year and above are Compounded Annualized. Returns for less than 1 year is Simple Annualized. Load is not taken into consideration for computation of performance. Different plans shall have a different expense structure. The expenses of the Direct Plan under the Scheme will be lower to the extent of the distribution expenses / commission charged to the Regular Plan.
As per clause 6.9.1 of the SEBI Master Circular for Mutual Funds dated March 20, 2026., the scheme returns vis-à-vis the benchmark return (Total Return Index) shall be disclosed are provided from the date of allotment of units.
Post merger performance of the surviving scheme, arising out of merger of schemes with similar features, is computed as per the provisions of clause 14.3 of the SEBI Master Circular for Mutual Funds dated March 20, 2026., on Disclosure of Performance of Schemes post-merger using the weighted average performance of both transferor and transferee schemes. In other cases, performance is computed using the Applicable NAV of the surviving/continuing schemes~~ Face value Rs 10
8HSBC Midcap Fund: The launch date of the Nifty Midcap 150 TRI is Apr 01, 2005 whereas the inception date of the scheme is Aug 09, 2004. The corresponding benchmark returns since inception of the scheme not available. (Methodology Document for Equity Indices (niftyindices.com))
Source: HSBC Mutual Fund, data as on 31 Aug 2026
Click here to check other funds performance managed by the Fund Manager
Past performance may or may not be sustained in future and is not a guarantee of any future returns. For SIP returns, monthly investment of Rs. 10,000/- invested on the 1st day of every month has been considered. SIP Return are calculated on XIRR basis. IDCW are assumed to be reinvested and bonus is adjusted. Load is not taken into consideration.
Mayank Chaturvedi shall be the fund manager for investments in foreign securities (wherever applicable) for all the schemes of HSBC Mutual Fund. w.e.f. October 01, 2025.
Source: HSBC Mutual Fund, data As on 31 Aug 2026
Click here to check other funds performance managed by the Fund Manager
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HSBC Midcap Fund (An open ended equity scheme predominantly investing in mid cap stocks) This product is suitable for investors who are seeking*: As per AMFI Tier I Benchmark i.e. Benchmark Index: Nifty Midcap 150 TRI |
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* Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Note on Risk-o-meters: The risk-o-meter is as per the product labelling of the Scheme available as on the date of this communication/disclosure Any change in risk-o-meter shall be communicated by way of Notice cum Addendum and by way of an e-mail or SMS to unitholders of that particular scheme.
Visit this link and check the latest Riskometer / Product Labels in the “Performance - Equity Hybrid Debt Global Funds” document of the latest month. Past performance may or may not be sustained in the future and is not indicative of future results.
Investors are requested to note that as per SEBI (Mutual Funds) Regulations, 1996 and guidelines issued thereunder, HSBC AMC, its employees and/or empaneled distributors/agents are forbidden from guaranteeing/promising/assuring/predicting any returns or future performances of the schemes of HSBC Mutual Fund. Hence please do not rely upon any such statements/commitments. If you come across any such practices, please register a complaint via email at investor.line@mutualfunds.hsbc.co.in.
This document/content is intended only for distribution in Indian jurisdiction. Neither this document nor the units of HSBC Mutual Fund have been registered under Securities law/Regulations in any foreign jurisdiction. The distribution of this document in certain jurisdictions may be unlawful or restricted or totally prohibited and accordingly, persons who come into possession of this document are required to inform themselves about, and to observe, any such restrictions. If any person chooses to access this document from a jurisdiction other than India, then such person do so at his/her own risk and HSBC and its group companies will not be liable for any breach of local law or regulation that such person commits as a result of doing so.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
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Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Risk Warning
The value of investments and any income from them can go down as well as up and investors may not get back the amount originally invested.
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