HSBC Mutual Fund on February 6, 2025 launched a new scheme called HSBC Financial Services Fund. The scheme will invest primarily in equity and equity-related securities of companies engaged in financial services businesses. The new fund offer will remain open till February 20, 2025.
HSBC Mutual Fund Launches Financial Services Fund, NFO Opens Today
The HSBC Mutual Fund will invest in equity and equity-related securities of companies engaged in the financial services business. The NFO will remain open till February 20, 2025. Minimum investment is Rs 5,000
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The underlying index tracked by the scheme is BSE Financial Services Index TRI.
Subscription Amount
Investors who wish to subscribe to the scheme through systematic investment plan (SIP) can do so by making a lump sum investment of Rs. 5,000 per application and in multiples of Re. 1 thereafter. Investors can also make a weekly or monthly SIP investment in the scheme by investing Rs 6,000 in six instalments with the minimum instalment amount being Rs 500.
Investors can also invest in the scheme via a quarterly SIP by investing Rs 6,000 in four instalments aggregating to Rs 6,000. The minimum investment amount for quarterly SIP is Rs 1,500.
Investment Objective
According to the scheme information document (SID), the objective of the scheme is to generate long-term capital appreciation by investing in equity and equity-related securities of companies engaged in financial services businesses.
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What Does The Scheme Invest In
The scheme will make an allocation ranging from 80-100 per cent in equities and equity-related securities of companies engaged in financial services businesses.
Additionally, the scheme may invest up to 20 per cent of its total assets in other equity and equity-related securities and debt securities and money market instruments, such as cash and cash equivalents, units of liquid and overnight mutual funds.
Exit Load
There will be no exit load on 10 per cent of the units purchased or switched within one year from the date of allotment. However, 1 per cent exit load will be charged on the balance units if they are redeemed or switched out within 1 year from the date of allotment.
Risk Profile
The risk profile of the scheme has been termed as ‘very high’.
Who Is The Fund Ideal For
According to the SID, the scheme is ideal for investors who wish to create wealth over the long term
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