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HSBC India Next Portfolio

Opportunities have never announced themselves. Until now.

HSBC Portfolio Management Services presents HSBC India Next Portfolio, which invests your money where India’s future is.

So don’t miss out on this opportunity to make the most of tomorrow.

Infrastructure Glocal

India with its young-working population, demographic dividend, large market opportunity provides huge potential for GLOCAL companies.
Digitisation Digitisation

Digital usage in India is soaring with lower data costs, giving rise to futuristic opportunities.
Consumption Consumption

An increase in younger population in the work force and an anticipated rise in upper middle class is set to drive discretionary spending resulting in a high growth trajectory.

 

Why Invest in HSBC India Next Portfolio

    Fuelled by focused themes

  • The portfolio aims to gain by focusing on the select themes such as Consumption, GLOCAL and Digitisation in a more concentrated manner that can propel growth

    • Potential of high growth with new age portfolio

  • HINP's allocation to Discretionary spending can offer above average growth over a long term

    • New age investment ideas backed by conventional yet progressive themes

  • HINP's allocation to Digitisation can add new age investment ideas

    • Earning visibility

  • Expected earnings acceleration can offer high alpha generation opportunities effectively

    • High conviction and concentration

  • High conviction and concentrated portfolio of HINP can provide high alpha generation opportunities within HSBC's proprietary "PBRoE" portfolio construction process along with TVSQ strategy

Investment Approach: HSBC India Next Portfolio (HINP)

Investment Objective

HSBC India Next Portfolio aims to generate returns and provide long term capital appreciation by investing in equity and equity related securities across market cap of businesses benefitting from transformation in Indian economy.

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 liquid funds/overnight 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 is to create long term wealth for investors by participating in companies from sectors that are likely to be beneficiaries of transformation in the Indian economy including themes such as, digitization, consumption, GLOCAL, ie Global companies working in local markets, etc. The portfolio manager intends to do the same by buying equities of these businesses and hence, equity and equity related securities are chosen for investment. The portfolio manager may, from time to time, invest un deployed funds in units of liquid funds/overnight funds of HSBC Mutual Fund including cash and cash equivalents for cash management purposes.

Allocation of portfolio across types of securities Indicative Allocation (% of assets)
Instruments Minimum Maximum
Equity and equity related securities 95% 100%
Units of liquid funds/overnight funds of HSBC Mutual Fund including cash and cash equivalents 0% 5%
*For cash management and pending deployment in the portfolio

Benchmark

Benchmark - S&P BSE 200

Rationale for selection of benchmark

The portfolio is being benchmarked against the BSE200 index since its composition is in line with the objective of the investment approach. The index is broad based and is most suited for comparing the performance of the portfolio.

Indicative tenure or investment horizon

Medium to Long Term (3 years+)

Risk associated with investment approach

  • Deployment of monies under the investment strategy will be oriented towards equity and equity related securities of companies belonging to themes/sectors that are likely to be beneficiaries of transformation in the Indian economy including themes such as digitization, consumption, GLOCAL, ie Global companies working in local markets, etc and hence, will be affected by risks associated with these industries as well as any factors that affect the broader macro-economic environment such as interest rate changes, liquidity, cross border fund flows, statutory/regulatory changes etc
  • Since the portfolio is expected to be concentrated with exposure to select themes/sectors, it may perform differently from the broader stock markets/benchmark, but may still be impacted by broad market movements. It is likely that the portfolio may also experience period of volatile performance and liquidity challenges in view of the limited number of stocks invested in by the fund manager

Investors should note that pursuant to SEBI circular no. SEBI/HO/IMD/DF1/CIR/P/2020/26 dated 13 February 2020, an option to invest directly, ie without intermediation of persons engaged in distribution services, is available to the investors with effect from October 01, 2020.

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