HSBC launches new open-ended fund for various asset classes

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HSBC Global Asset Management, India announced the launch of a open-ended fund of funds scheme that will invest into various asset classes including domestic and offshore equity, long and short term debt and gold.

Named as “HSBC Managed Solutions”, the fund is tailored to fit risk profiles of a broad range of investors and is available in growth, moderate and conservative options, HSBC Asset Management said in a release.

The fund will work on the principles of active asset allocation.

“Investments will be managed dynamically across asset classes and rebalanced regularly to ensure optimal allocation for that risk profile,” HSBC Asset Management said.

The fund will not attract any exit loads, also investors can switch from one option to another without any switching costs, the fund house said.

The growth fund portfolio would have 80 per cent in equities constituting 80 per cent of BSE 200 index and 20 per cent in debt securities comprising of Crisil Composite Bond Index.

The balanced fund portfolio would have debt securities comprising Crisil Balanced Fund Index. The conservative fund portfolio would have 90 per cent in debt securities comprising of Composite Index and 10 per cent in equities comprising of BSE 200 Index.

The fund will be locally managed by Sanjay Shah, Gaurav Mehrotra and Piyush Harlalka. Puneet Chaddha, chief executive officer of HSBC Global Asset Management, India said, “There is a broad base of investors with varying risk profiles who require a simple, need-based solution which could stand as their core investment holding catering to their specific needs and risk profiles, and managed by a partner with expertise and experience they can trust.”

“HSBC Managed Solutions allows people who do not have the time and expertise to manage their own portfolios to benefit from flexible asset allocation executed by our global award winning teams in a disciplined, risk-aware and cost effective approach, with the goal of capturing long-term growth, Chaddha said.

“We aim to build long term relationships with our customers by providing them with world class solutions that are in line with their needs and risk profile and provide fair value,” he added.

Tushar Pradhan, chief investment officer, HSBC Global Asset Management, India said, “Multi-asset is a successful and a core capability of HSBC Global Asset Management worldwide and this proposition fits perfectly in our endeavor to offer value propositions to our investors.”

“This active asset allocation based solution helps contain portfolio volatility and positions it well to deliver better risk-adjusted returns over the long term,” Pradhan said.

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