Invest now

Introduction

Higher exports always help nations to grow rapidly in terms of GDP and domestic output. In this era of globalisation, most leading economies in the world are also major exporters. India has powered through to emerge as the fifth-largest economy in the world. International trade has played a key role in fueling India's economic growth - the share of merchandise and services trade in India's GDP increased from 15% in 1980 to 46% in 2023. The growing emphasis on export-led growth is reflected in the improved share of India's exports in global trade - from 0.4% in 1980 to 1.85% to 2023.

The Indian government has set an ambitious target to achieve $2tn exports by 2030 implying exports share to increase to ~29%. The government expects exports to grow at ~15% CAGR over FY24-30, with services likely to grow faster than manufacturing. This will aid India to increase its share in world manufacturing from less than 3% in 2023 to its ambition of 5% in 2030 and 10% in 2047.

Introducing HSBC India Export Opportunities Fund

HSBC India Export Opportunities Fund aims to capture the growth in exports. The thematic scheme intends to invest predominantly in Equities and Equity Related Securities of companies from the sectors/industry having exports revenue more than 20% from outside India.

The fund aims to invest 80% to 100% of the assets in Equities & Equity related securities of companies engaged in or expected to benefit from export of goods or services in companies that have exports revenue of more than 20%. The fund also has flexibility to invest upto 20% asset in other equities and equity related securities. This thematic fund is one of the unique offerings in the industry having this differentiated allocation structure.

Note: Please read Scheme Information Document (SID) for more details on Asset Allocation of the scheme.

Investing Style & Approach

Identifying the investment opportunities based on the Investment Team’s analysis of drivers of growth of sectors

• Investments will be pursued in sectors engaged in or expected to benefit from export of goods or services
• Selective stock picking will be done from these sectors basis
  • Fundamentals of the business
  • Industry structure and relative business strength amongst peers
  • Quality of the management
  • Sensitivity to economic factors
  • Financial strength of the company
  • Key earnings drivers
  • Valuation methods such as relative valuation, fundamental valuation,

Market Cap

The scheme has flexibility to invest in companies that are part of the exports theme across market capitalization viz. Large cap, mid cap and small cap companies.

Asset Allocation*

Source: HSBC Mutual Fund, Data as on 31 July 2024, * Refer to the sections “How will the scheme allocate its assets?” and “Where will the scheme invest?” and “What are the Investment Strategies” in the SID for more details on Asset Allocation and Investments. 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. Note: Views provided above based on information provided in public domain at this moment and subject to change. Investors should not consider the same as investment advice.

Investment Focus*

Exports to grow at ~15% CAGR over FY24-30

• The Indian government has set an ambitious target to achieve $2tn exports by 2030 implying exports share to increase to ~29%. The government expects exports to grow at ~15% CAGR over FY24-30, with services likely to grow faster than manufacturing. This will aid India to increase its share in world manufacturing from less than 3% in 2023 to its ambition of 5% in 2030 and 10% in 2047.

HSBC India Export Opportunities Fund

• Aims to capture the growth in exports. The Scheme intends to invest predominantly in Equities and Equity Related Securities of companies (80%-100%) from the sectors/industry having exports revenue more than 20% from outside India. Further to achieve diversification, the Scheme may invest up to 20% of the assets in Companies of other equity and equity related securities.

Invest now

Blogs

Infographics

Resources

Source: Bloomberg, GOI, HSBC Mutual Fund, Data as on 31 July 2024, * Refer to the sections “How will the scheme allocate its assets?” and “Where will the scheme invest?” and “What are the Investment Strategies” in the SID for more details on Asset Allocation and Investments. 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. Note: Views provided above based on information provided in public domain at this moment and subject to change. Investors should not consider the same as investment advice.

Disclaimer

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.

Views are personal and based on information available in the public domain at present. Investors should not consider the same as investment advice. Please consult your financial advisor for all your investment decision.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

© Copyright. HSBC Asset Management (India) Private Limited 2024, ALL RIGHTS RESERVED.

HSBC Asset Management (India) Private Limited, 9-11 Floors, NESCO IT Park, Building no. 3, Western Express Highway, Goregaon (East), Mumbai 400 063, India.

Website: www.assetmanagement.hsbc.co.in