HSBC India Opportunities Fund seeks long term capital growth through investments across all market capitalisations including small, mid and large cap stocks. It aims to be predominantly invested in equity & equity related securities. Financial Advisor Arnav Pandya recommends investing in the fund for investors who are looking for an exposure on equity markets with a time horizon of more than three years.
Nature: Equity oriented open ended
Inception: February 2004
Assets under Management: Rs 208 crore at the end of June 2013
Fund Manager: Tushar Pradhan and Neelotpal Sahai
- This is a multi cap fund that can invest across different market capitalisations. At the end of February 2012 the fund had the highest exposure to banks at 16 percent of the portfolio with software and finance also having shares in double digits. Auto and auto ancillaries also had a significant share in the portfolio. Bosch was the top individual holding in the portfolio with Reliance Industries, Infosys, HDFC Bank, ICICI Bank, ITC, HDFC and TCS being some of the other leading ones. The portfolio turnover ratio of the fund was 0.93 and the BSE 500 was the benchmark. It was an outperformer over the one year period but an underperformer over the three year one ended December 2011.
- Six months later the fund had moved a significant part of its portfolio into cash and cash equivalents so short term debt investments made up over 10 per cent of the portfolio. Banks continued to be the top sector in the portfolio with software, finance and auto ancillaries retaining their positions. ICICI Bank was the top holding with Bosch, HDFC bank, L&T, ITC, United Phosphorous and Infosys being the other significant holdings. The portfolio turnover ratio had dropped to 0.35 times and it was an outperformer over the one and three year period ended June 2012.
- At the end of February 2013 the cash and cash equivalents had once again come down to quite low levels. Banks continued to lead the sector holdings with an 18 per cent share with software not far behind at 15 per cent. Finance and auto were two other significant sectors. ICICI Bank and Infosys were the leading holdings in the portfolio with HDFC bank, PNB, ITC, Tata Motors, HDFC and Reliance Industries being some of the other leading ones. The fund was an underperformer over the one year period but an outperformer over the three year one ended December 2012.
- There was a change in the overall situation as at the end of August 2013 as software climbed to the top of the sector charts ahead of banks. Consumer non durables, petroleum products and auto were some of the other leading sectors in the portfolio. Infosys was the top individual holding with ITC, HCL Tech, Reliance Industries, ICICI Bank, HDFC, HDFC bank, ONGC and Tech Mahindra being other leading holdings. The portfolio turnover ratio had climbed to over 0.75 times. The fund was an underperformer over the one year period but an outperformer over the three year period ended June 2013.
- The fund has been consistent over a longer time period and hence conservative investors who want a wider exposure to the equity markets in their portfolio with a time horizon of more than 3 years can consider this as a choice.
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