New fund offer (NFO)

The Indian government has set an ambitious target to achieve USD2 trillion exports by 2030, implying exports share to increase to around 29%. The government expects exports to grow at around 15% CAGR (compound annual growth rate) over the financial years from 2024 to 2030, with services likely to grow faster than manufacturing.

This will aid India to increase its share in world manufacturing from less than 3% in 2023 to its ambition of 5% in 2030 and 10% in 2047.

The aim of the scheme is to generate long-term capital growth from an actively managed portfolio of equity-related securities of companies engaged in or expected to benefit from export of goods or services.

The scheme intends to invest predominantly in equities and equity-related securities of companies from the sectors/industries having exports with revenue more than 20% from outside India which, among other things, include:

• Automobiles and auto components
• Industrial products and manufacturing
• Electrical equipment
• Pharma and biotechnology
• Chemicals
• Telecom services
• IT software and services
• Textiles and apparels
• Construction
• Agricultural food and other products
• Petroleum products
• Metals
• Transport services
• Healthcare services

The fund will take exposure to companies that are likely to involve themselves in the following activities:

• Export goods manufactured in India that have the potential to increase employment
• Benefit from government's policy and reforms towards exports as a sector
• Leverages India's cost benefit arbitrage in services, ease of doing business and highly skilled talent pool
• Assist in promoting inbound tourism or providing cost-effective world-class healthcare facilities

The investment objective of the scheme is to generate long-term capital growth from an actively managed portfolio of equity and equity related securities of companies engaged in or expected to benefit from export of goods or services.

There is no assurance that the objective of the scheme will be realised and the scheme does not assure or guarantee any returns.

The HSBC India Export Opportunities Fund (HEOF) aims to benefit from India’s export growth:

• Indian exports have grown 10% CAGR compared to the pre-Covid era, 1.7x of nominal GDP growth³
• By 2030, India’s target for exports is USD 2 trillion, which reflects strong 15% CAGR³
• India offers some distinct driving factors for export growth such as cost-effective skilled labour and government reforms
• The HEOF aims to capture this growth trend by investing in export-oriented companies with export revenue of more than 20%. The fund will invest 80 to 100% in such companies
• Along with a proven stock selection process (SAPM), the HEOF will also filter companies based on 4C evaluation, namely company MOAT, corporate governance, cash flows and comparative valuations

Investors understand that their principal will be at Very High risk.

HSBC India Export Opportunities Fund

(An open-ended equity scheme following export theme.)

This product is suitable for investors who are seeking:

• To create wealth over long term
• Investment predominantly in equity and equity-related securities of companies engaged in or expected to benefit from export of goods or services

Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

The product labelling assigned during the New Fund Offer is based on internal assessment of the Scheme characteristics or model portfolio and the same may vary post NRO when the actual investments are made.

As per AMFI Tier I Benchmark ie Benchmark index: Nifty 500 TRI

¹ The fund is newly launched and has no track record of performance. Investors should be fully aware of the uncertainty and risks associated with a newly launched fund, with lack of prior track record or proven process.

² Refer to the sections 'How will the scheme allocate its assets?', 'Where will the scheme invest?' and 'What are the Investment Strategies' in the scheme information document for more details on asset allocation and investments.

The sector(s)/stock(s)/issuer(s) mentioned do not constitute any research report nor should be considered as investment research, an investment recommendation or advice to any reader of this content to buy or sell any stocks/investments. The fund/portfolio may or may not have an existing/future position in these sector(s)/stock(s)/issuer(s). Past performance may or may not be sustained in future and is not a guarantee of any future returns.

Note: Views provided above based on information provided in public domain at this moment and subject to change. Investors should not consider the same as investment advice.

Investors are requested to note that as per SEBI (Mutual Funds) Regulations, 1996 and guidelines issued thereunder, HSBC AMC, its employees and/or empaneled distributors/agents are forbidden from guaranteeing/promising/assuring/predicting any returns or future performances of the schemes of HSBC Mutual Fund. Hence, please do not rely upon any such statements/commitments. If you come across any such practices, please register a complaint via email at investor.line@mutualfunds.hsbc.co.in.

³ Source: HSBC Mutual Fund, Government of India. The above list is indicative and the Fund Manager may add such sectors/ industries or activities that satisfies the above exports theme. The above list of sectors/ industries may change over time based on the company disclosures.

The list of sectors shown above is indicative and the Fund Manager may add such activities that satisfies the above exports theme.