HSBC Evolve Portfolio
Grow with Micro themes under Macro trends
HSBC Portfolio Management Services presents HSBC Evolve Portfolio, which aims to invest your money in emerging micro themes under macro trends.
Investment Objective
The aim of the Portfolio is long term wealth creation from an actively managed portfolio of equity and equity related securities optimizing opportunities across the market capitalization spectrum without any sector bias. However, there can be no assurance or guarantee that the investment objective of the Approach would be achieved.
Key Macro Trends: Driving India Story
- Demographics which drives consumption
- Government focus on Manufacturing and Infrastructure
- Formalisation
- Digitisation
- Infrastructure and Rural Development
- Global supply chain diversification or China +1 strategy
Market cap creation within these macro trends have changed as various micro themes or new sectors emerged within them. The portfolio aims to capture these macro trends + micro themes across cycles.
HSBC Evolve Portfolio
- India’s macro trends remain strong and continue to get stronger
- New micro themes have emerged over the years, leading to changes in out-performers every cycle
- A winning portfolio should have an exposure to stocks in micro themes along with dominant players which benefit macro trends
- The portfolio will follow flexicap approach
- The portfolio would have large dominant players which continue to benefit from macro trends – Red Ocean winners
- Along with micro themes within these macro trends, i.e. new or niche sector companies – Blue Ocean winners
- A combination of ROBO^ winners – should drive out-performance. Hence a flexi cap approach
Description of types of securities
- Equity and equity related securities including convertible bonds and debentures and warrants carrying the right to obtain equity shares
- Derivative instruments as may be permitted by SEBI / RBI
- Units of overnight funds /liquid funds of HSBC Mutual Fund
- Cash and cash equivalents
- Any other instruments as may be permitted by RBI / SEBI / such other Regulatory Authorities from time to time
Basis of selection of types of securities
The investment approach seeks to invest in companies across the entire market capitalization spectrum without any sector bias. The portfolio manager intends to do the same by buying equities of these companies and hence, equity and equity related securities are chosen for investment. The portfolio manager will focus on companies which have potential to deliver high growth.
Allocation of portfolio across types of securities
The investment approach has the mandate to invest in Equity and Equity related instruments of Large, Mid and Small cap companies without any sector bias.
Benchmark index for comparison of performance
- Regulatory Benchmark/ Strategy Benchmark: BSE 500 TRI
Rationale for selection of benchmark
This Investment approach is designed to offer broad based exposure across market capitalization and sectors in the Indian listed equity universe. BSE 500 TRI is suitably aligned with this investment approach.
Indicative tenure or investment horizon
Medium to Long Term (3-5 years+)
Risk associated with investment approach:
- The portfolio may perform differently from the broader stock markets/benchmark, in view of the limited number of stocks invested in by the fund manager. At times, Portfolios of individual clients may be concentrated in certain companies / industries. The performance of the Portfolios would depend on the performance of such companies / industries / sectors of the economy
- Deployment of monies under the investment strategy will be oriented towards equity and equity related securities of companies belonging to various market capitalization which include large, mid and small cap. Stocks of mid and small cap companies usually have lower trading volumes on the exchanges, which may result into higher impact costs and longer execution time compared to large cap stocks
- Also, in case the portfolio becomes more skewed towards the mid-small caps, this may increase volatility of the portfolio
Investment Strategy
This Investment Approach aims to dynamically capture micro themes which have high potential nested within larger macro trends.
By actively identifying and allocating to companies with high growth potential, this Investment Approach seeks to deliver relatively superior returns without being constrained by market cap or sector boundaries.
This flexible approach makes the Investment Approach highly relevant in today’s fast changing economic landscape.
The investment approach seeks to predominantly invest in Equity and Equity related instruments of large, mid and small cap companies without any sector bias. The portfolio manager intends to do the same by buying equities of these companies and hence, equity and equity related securities are chosen for investment.
The portfolio manager also reserves the right to invest in liquid and overnight schemes of HSBC Mutual Fund including cash and cash equivalents. The portfolio manager may invest in derivatives, or any other instrument as may be permitted by SEBI / RBI / such other Regulatory Authority from time to time as may be decided by the portfolio manager.
The portfolio manager may also participate in the Securities Lending Scheme. However, it is expressly clarified that clients are not being offered any guaranteed / assured returns and that the portfolio manager only endeavors to meet the investment objective.
Note - Past performance may or may not be sustained in the future. Source – HSBC Asset Management India.
Source –Bloomberg, HSBC Asset Management, Latest available data as at June 2025, 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).
^ ROBO - W. Chan Kim and Renée Mauborgne, both INSEAD professors and leading thinkers in strategic management, introduced the Blue Ocean Strategy framework in their 2005 book, "Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant." The book has been translated into over 40 languages and has sold millions of copies, underscoring its global impact on business practices. Note - The above information is for general information purpose only and it should not be considered as investment research, investment recommendation or advice to any reader of this content to buy or sell investments. The portfolio may or may not have any future position in these stocks. Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies that may have been discussed in this report and should understand that the views regarding future prospects may or may not be realised. Past performance may or may not sustain and doesn’t guarantee the future performance. For more information read the Disclosure Document