HSBC Mutual Fund started off very well, but has suffered because of the lack of quality equity schemes…
30-Nov-2012 •Research Desk
The bull run coincided with the start of < href="https://www.valueresearchonline.com/funds/h2_amclist.asp?amc=308"> HSBC asset management company in 2002, resulting in the fund house gaining prominence and building a sizeable business rapidly. It launched several equity schemes to ride the bull market and also debt funds. HSBC Equity is the fund that put this AMC on the investment map. The timing being great, its performance in 2003 and 2004 was excellent. The way the fund raced ahead in terms of its size is more of a fund-led success, rather than a brand-led one.
The AMC launched several equity schemes to ride the bull run, which it was unable to sustain after the 2008 crash. The AMC has re-oriented itself since 2008, to re-emphasise its fixed income asset offerings, which are better in comparison to the main equity offerings. However, lack of scale and wide range of equity schemes that are struggling to perform, leave little room for this AMC to attract investor interest. The silver lining are two international funds from this AMC - the HSBC Brazil fund and HSBC Emerging Markets fund - offer unique opportunities and have also done well. Lack of scale and wide range of equity schemes.