HSBC Large & Mid cap mutual fund has a heavily diversified portfolio; 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
28 MARCH 2019
CATEGORY

EQUITY
TYPE
LARGE & MIDCAP
AUM*
Rs.2,236 crore
BENCHMARK
NIFTY LARGE MIDCAP 250
TOTAL RETURN INDEX

WHAT IT COSTS
NAV**
GROWTH OPTION
Rs.17.90
IDCW**
Rs.16.34
MINIMUM INVESTMENT
Rs.5,000
MINIMUM SIP AMOUNT
Rs.1,000
EXPENSE RATIO* (%)
2.05
EXIT LOAD
For units in excess of 10% of investment,1% will be charged for redemption within 365 days.

*AS ON 30 JUNE 2023
**AS ON 18 JULY 2023

Recent portfolio changes
New entrants
Can Fin Homes, Kajaria Ceramics, Mahindra & Mahindra Financial Services, Safari Industries (India), Triveni Turbine (May). Bank of Baroda, Dixon Technologies (India), ideaForge Technology, One 97 Communications, Rolex Rings, Shriram Finance, Timken India, Zensar Technologies (June).
Complete exits
Cipla, Kansai Nerolac Paints, NTPC (May). Axis Bank, Balkrishna Industries, Eicher Motors, HDFC Asset Management Company, Hindustan Aeronautics, SRF, Thermax, Trent (June).

Should you buy?
Unlike many of its peers in the large- and mid-cap category, this fund does not show a clear tilt towards large caps. Currently, it has a sizeable presence in small caps, apart from its core mandate. Further, with lower allocation to frontline index stocks, its average portfolio market cap is placed considerably lower than its category average. The portfolio is heavily diversified with modest positions in top bets. In its short running time so far, its performance has been a mix bag. Though it started poorly, the fund’s performance has picked up smartly in the past year. A veteran fund manager at its helm provides comfort, but it needs to prove its credentials by quickly building a healthy track record.

(Source: Value Research)