HSBC Mutual Fund on February 8, 2023, announced the launch of HSBC Multi Asset Allocation Fund (HMAAF), a hybrid fund category diversifying across Equities, Debt instruments, Gold ETFs and Silver ETFs to reduce volatility.
The New Fund Offer (NFO) will run from February 8 to February 22, 2024. Investors can invest a minimum investment of Rs 5000 and in multiples of Re 1 thereafter for lumpsum investments. For SIPs, it is Rs 500 with a minimum of 12 instalments per year.
If investors redeem more than 10 per cent of investments within 1 year from the date of allotment, they face an exit load of 1 per cent.
Kailash Kulkarni, CEO, HSBC Asset Management Company (India) Pvt. Ltd., said, “India’s growth story is driven by several factors including increasing domestic consumption, strong forex reserves, focus on manufacturing and infrastructure development, improving debt markets, foreign investments, strong government reforms, etc. These factors, combined with significant market volatility, call for a multi-asset allocation strategy, considering different asset classes behave differently depending on economic situations."
HSBC Multi Asset Allocation Fund seeks to maintain a diversified portfolio, allocating 65 per cent to 80 per cent to equities, 10 per cent to 25 per cent in fixed income assets, and 10 per cent to 25 per cent to domestic gold and silver ETFs. The portfolio will undergo systematic rebalancing to maintain the targeted allocation based on market cycles.
Multi Asset Allocation Funds are strategically designed to allocate investments across diverse asset classes. Securities and Exchange Board of India (Sebi) mandates a minimum allocation of 10 per cent to three distinct categories such as equity, debt, gold or commodities, or REITs/InvITs units.
The fund house said it will follow a Flexicap approach and invest across market caps based on value-style investing. Multi-asset allocation funds are designed to rebalance allocations, ensuring timely adjustments to maintain a balanced investment approach. Multi-asset allocation funds witnessed the second highest industry-wide inflow of Rs. 22,415 crores in 2023.
Association of Mutual Funds of India (Amfi) data reveals that eleven funds in this category have delivered collective returns of 26.81 per cent in the past year, clocking the category's best performance historically. Over the past three years, the returns are 17.6 per cent and in 10 years it is 13 per cent.