HSBC Large Cap mutual fund review: Needs to sustain outperformance; should you invest?

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
12 OCTOBER 2002
CATEGORY

EQUITY
TYPE
LARGE CAP
AUM*
Rs.1,444 Crore
BENCHMARK
NIFTY 100 TOTAL
RETURN INDEX

WHAT IT COSTS
NAV**
GROWTH OPTION
Rs.326.08
IDCW
Rs.37.91
MINIMUM INVESTMENT
Rs.5,000
MINIMUM SIP AMOUNT
Rs.1,000
EXPENSE RATIO*** (%)
2.18
EXIT LOAD
For units in excess of 10% of the investment,1% will be charged for redemption within 365 days

*AS ON 30 APRIL 2023
**AS ON 17 MAY 2023
***AS ON 30 APRIL 2023

FUND MANAGER
NEELOTPAL SAHAI
10 YEARS

Recent portfolio changes
New Entrants
Bharat Petroleum Corporation, Cipla, Varun Beverages, Zydus Lifesciences.
Complete Exits
Cholamandalam Investment & Finance Company, Tata Consumer Products
Increasing allocation
Infosys, ITC, NTPC, Oil & Natural Gas Corporation, Reliance Industries, Housing Development Finance Corporation, NTPC.

Should you buy?
This fund gravitates towards dominant players within sectors, paying heed to the trend of profit pools conolidating with the bigger players. The fund manager’s preference is for companies with strong balance sheets and earnings resilience. The fund runs a fairly diversified portfolio yet retains large positions in its top bets. After witnessing a blip in performance in 2021 and 2022, the fund has come back strongly this year. However, the fund needs to show sustained outperformance over longer time frames to be counted as a worthy bet in this category.

(Source: Value Research)