Investment Objective and Approach

The investment objective of the scheme is to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related securities of companies engaged in financial services businesses. This is an open-ended equity scheme investing in financial services sector.

The fund focuses on capitalizing on India's thriving financial services ecosystem, spanning across banking, insurance, asset management, and fintech sectors. The banking sector is considered the backbone of the Indian economy, playing a crucial role in economic growth and development whereas the financial services sector is on a growth trajectory, driven by increasing financial inclusion, digitaisation and supportive regulatory policies.

India's financial services sector, from banking and insurance to asset management and fintech, is poised for significant growth driven by country's rapidly expanding economy, offering immense opportunities for wealth creation. The fund aims to leverage this growth potential through strategic investments in companies that are expected to benefit from India's expanding financial services market.

Fund Managers

The scheme is currently managed by its fund managers Gautam Bhupal and Harsh Shah. However, there appears to be some variation in recent information about the fund management team.

Gautam Bhupal brings substantial experience to the fund management role. He holds a B.Com (Hons), PGDBM and is also a CA, CS. Before getting associated with HSBC Mutual Fund, he was a part of Motilal Oswal Securities Ltd., Vickers Ballas Securities Ltd, SBC Warburg, IDFC Asset Management Company Ltd, UTI Securities Ltd, Infosys Ltd.

The fund management team operates under the guidance of HSBC's broader equity management framework, which emphasizes disciplined investment approaches and thorough research-driven decision making.

About the Fund House (AMC)

HSBC Asset Management India is part of the globally renowned HSBC Group, bringing international expertise to the Indian mutual fund industry. The HSBC empire is over 100 years old and was established by Sir Thomas Sutherland in 1886. It is the world's 7th largest bank in terms of total assets and revenues.

Part of HSBC Securities and Capital Markets (India) Private Limited, HSBC Mutual Funds is one of the leading AMCs in the investment market of the country. Being a part of the 7th largest bank in the world, it offers international quality investment options and services to prospective investors across the nation.

Key Highlights of HSBC Mutual Fund:

- HSBC Mutual Fund serves more than 1 million customers through its 1000 plus offices spread all over India

- It operates with a total corpus of Rs. 109825.42 Crore as of 2024, and offers more than 103 different types of schemes under three types of options, equity, debt, and product add-on funds

- We have been the stewards of our clients' ambitions since 1973

- Our purpose is to connect clients to investment opportunities around the world

The AMC's global heritage combined with deep local market understanding positions it well to manage sector-specific funds like the Financial Services Fund, leveraging both international best practices and local market insights.

Should I Invest in HSBC Financial Services Fund?

The HSBC Financial Services Fund presents both opportunities and considerations for potential investors:

Potential Benefits:

- Sector Focus: The fund provides targeted exposure to India's growing financial services sector, which includes banking, insurance, and fintech companies

- Professional Management: Managed by experienced fund managers with strong credentials in financial markets

- Growth Potential: The financial services sector is on a growth trajectory, driven by increasing financial inclusion, digitalization, and supportive regulatory policies. These factors contribute to the potential for robust growth in the sector, making it an attractive proposition for investors seeking to capitalize on the sector's performance

Key Considerations:

- Sector Concentration Risk: This is a fund that invests mainly in shares of banks and financial services companies. We believe that investors should avoid funds that have a narrowly defined investment mandate such as this one. Instead, they should invest in flexi-cap funds which provide complete freedom to the fund management team

- Investment Horizon: Do not invest in this, or any other banking sector fund, if you need to redeem your investment in less than seven years

- Systematic Investment: If you do invest, you must do so only through the SIP route

This fund is suitable for investors with a long-term investment horizon who want concentrated exposure to India's financial services growth story and understand the associated sector-specific risks.

FAQs

What is today's NAV of HSBC Financial Services Fund?

The latest NAV declared is ₹11.909 as on 22 Jul 2025 at 1:49 pm for the Direct plan. NAV fluctuates daily based on market movements.

What is the AUM of HSBC Financial Services Fund?

It has an AUM of ₹676.72 Crores as of July 2025. The AUM represents the total value of assets managed by the fund.

What is the expense ratio of HSBC Financial Services Fund?

The expense ratio is 1.03% for the fund. This is the annual fee charged for managing the fund including administrative costs and commissions.

What are the returns of HSBC Financial Services Fund since inception?

HSBC Financial Services Fund Direct Growth has given a CAGR return of 13.96% since inception. Past performance may vary and is not indicative of future results.

What is the minimum SIP amount to invest in HSBC Financial Services Fund?

The minimum investment required is ₹500 for the SIP (Systematic Investment Plan) option. This makes it accessible for retail investors to start investing systematically.

How do I invest in HSBC Financial Services Fund?

You can invest in this fund through Allvest platform. Simply register on the Allvest website or app, complete your KYC, search for the fund, and choose between lump sum or SIP investment options.

How to start a SIP in HSBC Financial Services Fund?

Log into your Allvest account, search for HSBC Financial Services Fund, select SIP option, choose your investment amount and frequency (monthly/quarterly), set up auto-debit mandate, and confirm your investment.

How do I automate an SIP in HSBC Financial Services Fund?

Through Allvest, you can set up automated SIPs by providing bank mandate authorization. Once set up, the specified amount will be automatically debited from your account on the chosen dates.

How can I withdraw/redeem my investment in HSBC Financial Services Fund?

You can redeem your investment through the Allvest platform by logging into your account, selecting the fund, choosing partial or full redemption, and submitting the request. Exit load is 1% if redeemed in 0-1 Years.