HSBC Value Fund Direct Growth Overview and Investment

The HSBC Value Fund Direct Growth is a type of equity fund that invests in a mix of large-cap and mid-cap stocks with a value investing approach.

This fund aims to generate long-term capital growth by investing in undervalued stocks with strong fundamentals.

The fund has a moderate risk profile, suitable for investors with a medium to long-term investment horizon.

HSBC Value Fund Direct Growth invests in a diversified portfolio of around 50-60 stocks, with a focus on companies with strong financials, competitive advantages, and growth potential.

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The HSBC Value Fund Direct-Growth is a value fund-oriented fund that has been around since January 2013. It's managed by Venugopal Manghat.

The fund has a sizeable assets under management (AUM) of ₹13,674.92 crore as of January 2, 2025. Its current NAV (Net Asset Value) is ₹121.13.

You can invest in this fund via both lumpsum and SIP (Systematic Investment Plan) modes. The minimum SIP amount is ₹500, while the minimum lumpsum investment is ₹5,000.

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Here are the key details about the fund's exit load policy:

The fund aims to provide long-term capital appreciation and growth by investing in a mix of financial instruments. It has a sector allocation of 18.14% in Banks, 11.12% in IT-Software, 7.83% in Construction, 4.91% in Industrial Products, and 4.88% in Finance.

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To invest in the HSBC Value Fund Direct Growth, you'll need to have a minimum of ₹5,000. The minimum additional investment is ₹1,000, and for a Systematic Investment Plan (SIP), you can start with as little as ₹500.

The fund has a low expense ratio of 0.77%, which is inclusive of GST. This is a relatively low cost compared to other funds in the market.

You can exit the fund at any time, but be aware that there's an exit load of 1% if you redeem or switch out more than 10% of your units within the first year. After one year, there's no exit load.

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The expense ratio is a crucial aspect of any investment, and in this case, it's a relatively low 0.77% (inclusive of GST). This means you'll be paying a small percentage of your investment as fees to the fund manager.

If you decide to exit your investment, you'll need to know about the exit load, which is a fee charged when you redeem or switch out your units. The good news is that there's no exit load if you redeem or switch out 10% or less of your units within a year of allotment.

If you redeem or switch out more than 10% of your units within a year, the exit load is 1%. On the other hand, if you redeem or switch out your units after a year, there's no exit load to worry about.

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Investment Details can make or break your investment experience. The minimum investment required to start investing in a fund like the HSBC Value Fund Direct-Growth is Rs. 5,000.00.

You'll need to have some money set aside to get started. The minimum additional investment you can make in this fund is Rs. 1,000.00.

It's also worth noting that some funds have a minimum SIP (Systematic Investment Plan) investment requirement, which is Rs. 500.00 in this case.

If you need to withdraw some of your investment, be aware that the minimum withdrawal amount is Rs. 500.00.

Here's a quick rundown of the minimum investment and withdrawal requirements for the HSBC Value Fund Direct-Growth:

The HSBC Value Fund Direct Growth has an asset under management of ₹14123.13 Cr.

The expense ratio for this fund is a reasonable 0.77% (inclusive of GST), which is a standard industry rate.

You can redeem or switch out units without any exit load if you do it within 1 year from the date of allotment and stay within the 10% limit.

The asset under management for this scheme is a staggering ₹14123.13 Cr.

The expense ratio for this scheme is a relatively low 0.77% (inclusive of GST), which is good news for investors.

If you redeem or switch out up to 10% of your units within 1 year from the date of allotment, you won't have to pay an exit load.

If you redeem or switch out more than 10% of your units within 1 year from the date of allotment, you'll be charged a 1% exit load.

Redeeming or switching out your units after 1 year from the date of allotment comes with no exit load.

The key features of this fund are what really caught my attention. Here are some of the most important ones:

The 5-year return of 26.11% is impressive, to say the least. This means that if you invested in this fund 5 years ago, you would have seen a significant increase in your investment value.

The expense ratio of 0.77% is relatively low, which means that the fund managers are doing a great job of keeping costs under control. This is good news for investors, as it means they get to keep more of their returns.

The fund is managed by Venugopal Manghat, who has a proven track record of success. This gives me confidence in the fund's ability to deliver strong returns.

The fund size is a whopping ₹14123.13 Cr, which is a testament to its popularity and stability. This size also means that the fund has the resources it needs to invest in a wide range of assets.

The risk profile of this fund is very high, which means it's not for the faint of heart. If you're risk-averse, you may want to consider a more conservative option.

The HSBC Value Fund Direct-Growth is a solid investment option, but let's take a closer look at its performance metrics.

Over the past 1 year, the fund has delivered an impressive 28.73% annualized return, ranking it 4th among its peers.

Its standard deviation is 13.69, indicating moderate volatility, but still lower than the category average of 13.59.

The fund's beta of 0.94 suggests that its returns are less volatile compared to the broader market.

A Sharpe ratio of 1.21 indicates that the fund provides better risk-adjusted returns compared to the category average of 1.04.

The Treynor ratio of 17.58 is also higher than the category average of 14.88, indicating that the fund outperforms the market on a risk-adjusted basis.

Jensen's Alpha of 9.00 is a significant advantage over the category average of 6.53, showing the fund manager's ability to outperform the market.

Here's a summary of the fund's key performance metrics: