HSBC ELSS needs to sustain outperformance in a longer time frame
We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.
By ET Bureau |
Getty Images
ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.
BASIC FACTS DATE OF LAUNCH 27 FEBRUARY 2006 CATEGORY
EQUITY TYPE ELSS AUM* Rs.3,316 crore BENCHMARK NIFTY 500 TOTAL RETURN INDEX
WHAT IT COSTS NAV** GROWTH OPTION Rs.92.51 IDCW** Rs.25.39
EXPENSE RATIO# (%) 1.92 EXIT LOAD 0% *AS ON 30 SEPT 2023 **AS ON 17 OCT 2023 #AS ON 30 SEPT 2023
FUND MANAGER CHEENU GUPTA /GAUTAM BHUPAL 2 YEARS, 2 MONTHS/ 10 MONTHS
Recent portfolio changes New entrants 360 One Wam, Avalon Technologies, Can Fin Homes, Craftsman Automation, Jio Financial Services, Safari Industries (India), The Federal Bank, United Spirits, Zensar Technologies(Jul). Coforge, Max Healthcare Institute, Polycab India (Aug). Bikaji Foods International, Mahindra Holidays & Resorts India, Mankind Pharma, Maruti Suzuki India (Sept). Complete exits Housing Development Finance Corporation, Motherson Sumi Wiring India, NTPC, SRF (Jul). Increasing allocation Bank of Baroda, HDFC Bank, Samvardhana Motherson International (Jul). 360 One Wam, Cipla, Safari Industries (India) (Aug). Hindustan Aeronautics, Polycab India, Shriram Finance (Sept).
Should you buy? Earlier known as L&T Tax Advantage, this fund is now run under the HSBC Mutual Fund banner after the merger, even as HSBC Tax Saver fund was discontinued. It scouts for the best opportunities that the market presents, without any sector or market-cap bias. It looks to own scalable businesses with strong execution capabilities, proven management track records and strong financials. The fund portfolio is reasonably diversified with large positions in its top bets. The fund has witnessed chronic underperformance for the past few years, lagging both the index and peers. While the fund’s year-to-date performance has improved, it needs to sustain outperformance in a longer time frame to prove its credentials.
