HSBC Mutual Fund has launched an open ended fund of fund called HSBC Managed Solutions Fund which will invest in existing schemes of HSBC MF – both domestic and international funds.

 

The NFO of the fund is currently open for subscription and closes on April 23, 2014.

 

The scheme aims to provide long term capital appreciation through an active asset allocation by investing in equity funds, debt funds, gold ETFs, offshore mutual funds and money market instruments.

 

The fund is available in three options – growth, moderate and conservative based on risk profile of the investors. Growth option has more exposure to equity and the exposure comes down further in moderate and conservative plans. Also, growth option will be benchmarked against BSE 200 and Composite Bond Index while moderate and conservative options will be benchmarked against CRISIL Balanced Fund Index and CRISIL Composite Bond Index, respectively.  

 

In a press release, the fund house says, "HSBC Managed Solutions is a holistic solution based on the principle of active Asset Allocation. Investments are managed dynamically across asset classes and rebalanced regularly to ensure optimal allocation for that risk profile."

 

 

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."

 

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. HSBC Managed Solutions builds in regular rebalancing as a core feature which helps the portfolio remain aligned to the needs of the investor."

The minimum investment amount of investment is Rs. 5,000.  No exit load will be charged in the scheme. Sanjay Shah, Gaurav Mehrotra and Piyush Harlalka will co-manage the fund.