HSBC Mutual Fund has announced the launch of HSBC Global Equity Climate Change Fund of Fund. The scheme would be investing its assets HSBC Global Investment Funds - Global Equity Climate Change (HGECC).
The New Fund Offer (NFO) starts from 03rd March 2021 and will end on 17th March 2021. The fund will reopen for continuous sale and repurchase on 30th March 2021.
Investment Objective
The investment objective of the scheme is to provide long-term capital growth by investing its assets in HSBC Global Investment Funds - Global Equity Climate Change (HGECC). Along with this, the fund may also invest its assets in money market instruments and units of other overnight or liquid mutual fund schemes to meet liquidity requirements.
Features
- The Fund will be investing a minimum of 95% of its assets in its underlying fund which is HSBC Global Investment Funds – Global Equity Climate Change.
- The fund aims to give exposure to companies following different themes across geographies.
- The Fund will have exposure to 40-50 companies in its portfolio.
How does ESG work?
- ESG has a material effect on the company's performance.
- Consideration of Material ESG factors is an integral part of security analysis.
- Portfolio managers & analysts use the in-house ESG ratings system for the selection of portfolio companies. ESG ratings help to make good investment decisions.
- CIO has the accountability for the ESG integration.
- ESG specialists support the global investment teams.
Why invest in HSBC Global Climate Change Equity Fund?
- The fund will offer the benefit of geographical diversification. These companies may offer varying & contrasting risk-adjusted-performance in various investment cycles.
- Geographical & sectoral diversification can lead to risk reduction in the investor's portfolio. It can help to diversify the investor's domestic dominant portfolio.
- The fund gives the opportunities to invest in different themes.
- The Fund will give exposure to different markets & global markets including companies like Apple, Samsung, Google, etc.
- The fund will offer the benefit of currency-adjusted performance through investments in global companies.
- The fund can help to benefit from the growth in developed as well as developing countries.
Also Read: What is Portfolio - Meaning, Types, Management, Components, Objective, Steps to Build Portfolio
Who Should Invest?
This scheme is suitable for investors who are -
- Interested in long-term capital growth.
- Interested in investments in companies that can be benefited from climate change through fund of fund route.
- Recommended for investors with an investment horizon of 5 years & above.
Asset Allocation Pattern-
| Instruments | Minimum % of total assets (Indicative) | Maximum % of total assets (Indicative) | Risk Profile |
| Units of HSBC Global Investment Funds - Global Equity Climate Change (HGECC) | 95% | 100% | High |
| Money Market Instruments and units of domestic overnight & liquid mutual fund schemes | 0% | 5% | Low to Moderate |
About the scheme-
| Name of the fund | HSBC Global Equity Climate Change Fund of Fund |
| Fund launched by | HSBC Mutual Fund |
| Asset Management Company | HSBC Asset Management (India) Private Limited |
| Type of scheme | An open-ended fund of fund scheme investing in the HSBC Global Investment Funds - Global Equity Climate Change |
| Investment Objective | The investment objective of the scheme is to generate long-term capital growth by investing its assets in HSBC Global Investment Funds - Global Equity Climate Change (HGECC). Along with this, the fund may also invest its assets in money market instruments, units of other liquid/overnight funds. |
| Benchmark | MSCI AC World Index TRI |
| Entry Load | Not Applicable |
| Exit Load | 1% of applicable NAV - If units are redeemed or switched out within 1 year. Nil - If units are redeemed or switched out after 1 year. |
| Minimum Application Amount | ₹ 5,000 & in multiples of ₹ 1 thereafter |
| Minimum Additional Amount | ₹ 1,000 & in multiples of ₹ 1 thereafter |
| STP, & SWP | Available |
| Plans Available |
|
| Options |
|
| Fund Managers | Mr. Priyankar Sarkar (For overseas investment) and Mr. Kapil Punjabi (For Fixed Income) |
SIP Details
| Type | Minimum Installments | Minimum Amount |
| Monthly SIP | 12 | ₹500 & in multiples of ₹1 thereafter |
| Quarterly SIP | 4 | ₹1,500 & in multiples of ₹1 thereafter |
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