Product Note

HSBC Value Fund (HVAF)

An open ended equity scheme following a value investment strategy.
February 2024

Fund Category Fund Manager Benchmark 1 Inception Date AUM&

Venugopal Manghat, Gautam

Value Fund Nifty 500 TRI 8 Jan 2010 Rs. 11238.98 Cr
Bhupal@ and Sonal Gupta#

16.85% 8.9X
CAGR since inception 2 since inception 2

71,80,623 INR 8,94,240

Value of SIP investment Value of Lump Sum
INR 10,000 p.m. since Investment INR 100,000
Inception 3 since inception 2

Portfolio % to net assets Sector - Allocation % to net assets

NTPC Limited 4.75% Banks 20.06%
ICICI Bank Limited 4.01% IT - Software 10.50%
Jindal Stainless Limited 3.79% Construction 6.66%
State Bank of India 3.29% Industrial Products 5.83%
Indian Bank 2.73% Realty 4.96%
Reliance Industries Limited 2.53% Power 4.75%
Canara Bank 2.48% Ferrous Metals 4.65%
Sun Pharmaceutical Industries Limited 2.48% Cement & Cement Products 4.12%
Multi Commodity Exchange of India Automobiles 3.86%
2.43%
Limited
Finance 3.76%
Karur Vysya Bank Limited 2.32%
Risk Ratios 4 Risk Ratios 4

Standard Deviation 14.10% Sharpe Ratio 5 1.44

Beta 0.93 R2 0.87

Entry Load*: Not Applicable, Exit Load: If the units redeemed or switched out are upto 10% of the units purchased or switched in within 1 year from the
date of allotment Nil, If units redeemed or switched out are over and above the limit within 1 year from the date of allotment 1%, If units are redeemed or switched
out on or after 1 year from the date of allotment Nil. A switch-out or a withdrawal under SWP may also attract an Exit Load like any Redemption. No Exit load will be
chargeable in case of switches made between different options of the Scheme. No Exit load will be chargeable in case of Units allotted on account of IDCW
reinvestments, if any. Exit load is not applicable for Segregated Portfolio. * In terms of 10.4.1.a. of SEBI Master Circular on Mutual Funds dated May 19, 2023, no entry
load will be charged to the investor.
Month End Total Expenses Ratios (Annualized)5 Regular6: 1.75%, Direct: 0.78%
1 As per clause 1.9 of the SEBI Master Circular dated May 19, 2023, on Principles for bringing uniformity in Benchmarks of Mutual Fund has introduced
two-tiered structure for benchmarking of certain categories of schemes. Accordingly, the benchmark has been classified as Tier 1 benchmark effective from 01 December
2021.
2 As on 31 January 2024 of Growth option regular plan. During the same period, scheme benchmark (Nifty 500 TRI) has moved by 5.2X to Rs. 5,25,920 from Rs.100,000

and delivered return of 12.52%. Please refer page no.3 for detailed performance of HSBC Value Fund.
3 During the same period, value of scheme benchmark (Nifty 500 TRI) has moved to 52,78,374
4 Quantitative Data disclosed are as per monthly returns (Annualized) for the last 3 years.
5 Risk free rate: 6.85% (FIMMDA-NSE Mibor)
6 TER Annualized TER including GST on Investment Management Fees
7 Continuing plans
@ Managing since October 01, 2023. Please refer notice cum addendum dated September 29, 2023.
# Sonal Gupta is dedicated fund manager for investments in foreign securities by all the schemes of HSBC Mutual Fund.
&For disclosure of quarterly AUM/AAUM and AUM by geography, please visit our website: https://www.assetmanagement.hsbc.co.in/en/mutual-funds/investor-

resources/information-library#&accordion1446811090=4
Note: The sector(s)/stock(s)/issuer(s) mentioned in this document do not constitute any research report nor it should be considered as an investment research, 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 any existing / future position in
these sector(s)/stock(s)/issuer(s).
Source HSBC Mutual Fund, Data as of 31 January 2024. Past performance may or may not be sustained in the future and is not indicative of future results.
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HSBC Value Fund (HVAF) | Product Note
[February 2024]

ors, instead,
turn to buying stocks that are trading at a discount to their intrinsic value. Even the most successful global investors of all time
advocate the value investing approach to unearth good businesses at good prices.

Why HSBC Value Fund?

• To seek an exposure to value style companies

• Aim to identify undervalued stocks having the potential to deliver long term risk-adjusted returns
• Undervalued stocks would include stocks which the Fund Managers believe are trading at less than their assessed values
• Long term capital appreciation
• Aims to create a corpus through generating inflation-adjusted returns to cater to long-term goals

Fund Approach

• Diversified equity fund with strong value bias that aims to deliver long term reasonable risk adjusted returns
• Focus on identifying valuation anomalies versus the economic potential of the business over the medium term
• Aims to minimize portfolio risk by investing in quality companies, monitoring corporate fundamentals closely
• The fund looks to invest in fundamentally strong companies that the fund manager believes are trading at less than their
assessed values thus offering higher upside potential
• This approach not only helps in identifying undervalued stocks but also factor-in the risk elements while picking stocks

Investment Objective

The investment objective of the Scheme is to generate long-term capital appreciation from a diversified portfolio of predominantly
equity and equity related securities, in the Indian markets with higher focus on undervalued securities. The Scheme could also
additionally invest in Foreign Securities in international markets.

HSBC Value
Value Theme Quality
Fund

Focus on quality
Seek opportunities Focus on Quality
companies with
through the stocks companies through
valuation discount
that can offer valuation proven investment
that can provide
discount approach
potential for growth

Source - HSBC Mutual Fund, Data as of 31 January 2024

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HSBC Value Fund (HVAF) | Product Note
[February 2024]

Fund Manager - Venugopal Manghat Effective 24 Nov 2012. Total Schemes Managed - 7
Fund Manager - Gautam Bhupal Effective 01 Oct 2023. Total Schemes Managed - 12
Fund Manager - Sonal Gupta Effective 05 Jul 2021. Total Schemes Managed - 15

Lump Sum Investment Performance

Inception
1 Year 3 Years 5 Years Since Inception Date
Fund / Benchmark
(Value of Rs 10,000 invested) Amount in ` Returns % Amount in ` Returns % Amount in ` Returns % Amount in ` Returns %

HSBC Value Fund-Regular 14751 47.51 21766 29.53 26575 21.58 89424 16.85

08-Jan-10
Scheme Benchmark (Nifty 500 TRI) 13381 33.81 18085 21.79 23216 18.34 52592 12.52

Additional Benchmark (Nifty 50 TRI) 12435 24.35 16510 18.15 21276 16.29 49054 11.97

Past performance may or may not be sustained in the future and is not indicative of future results. The performance details provided herein are of Regular Plan
- Growth Option. Returns on ₹10,000 are point-to-point returns for the specific time period, invested at the start of the period. The returns for the respective periods are
provided as on last available NAV of January 2024 for the respective schemes. Returns for 1 year and above are Compounded Annualized. Returns for less than 1 year is
Simple Annualized. Load is not taken into consideration for computation of performance. Different plans shall have a different expense structure. The expenses of the
Direct Plan under the Scheme will be lower to the extent of the distribution expenses / commission charged to the Regular Plan.
As per clause 5.9.1 of the SEBI Master Circular dated May 19, 2023, the scheme returns vis-à-vis the benchmark return (Total Return Index) shall be disclosed are provided
from the date of allotment of units.
Post merger performance of the surviving scheme, arising out of merger of schemes with similar features, is computed as per the provisions of clause 13.4 of the SEBI
Master Circular dated May 19, 2023, on Disclosure of Performance of Schemes post-merger using the weighted average performance of both transferor and transferee
schemes. In other cases, performance is computed using the Applicable NAV of the surviving/continuing schemes.

SIP Performance HSBC Value Fund Reg

Inception Date: 08-Jan-10

Scheme Name & Benchmarks 1 Year 3 Years 5 Years Since Inception
Total amount invested (`) 120000 360000 600000 1680000
Market Value as on January 31, 2024 (`) 1,56,115 5,53,302 11,88,602 71,80,623
Scheme Returns (%) 59.90 29.98 27.72 18.89
Nifty 500 TRI - Scheme Benchmark (`) 1,46,215 4,88,320 10,27,778 52,78,374
Nifty 500 TRI - Scheme Benchmark Returns (%) 42.69 20.82 21.66 15.07
Nifty 50 TRI - Additional Benchmark (`) 1,38,471 4,59,553 9,47,510 47,86,416
Nifty 50 TRI - Additional Benchmark Returns (%) 29.62 16.50 18.32 13.84

Past performance may or may not be sustained in the future and is not indicative of future results. For SIP returns, monthly investment of Rs. 10,000/-
invested on the 1st day of every month has been considered. SIP Return are calculated on XIRR basis. IDCW are assumed to be reinvested and bonus is adjusted. Load is
not taken into consideration.
Sonal Gupta is dedicated fund manager for investments in foreign securities by all the schemes of HSBC Mutual Fund.
Source: HSBC Mutual Fund, data as on 31 January 2024
Click here to check other funds performance managed by the Fund Manager

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HSBC Value Fund (HVAF) | Product Note
[February 2024]

Product Label
Scheme name and Type of scheme Scheme Risk-o-meter Benchmark Risk-o-meter

HSBC Value Fund Benchmark : NIFTY 500 TRI

An open ended equity scheme following a value investment strategy.

This product is suitable for investors who are seeking*:

-related securities in Indian markets and foreign Investors understand that their
securities, with higher focus on undervalued securities. principal will be at Very High risk

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

Note on Risk-o-meters: Riskometer is as on 31 January 2024, Any change in risk-o-meter shall be communicated by way of Notice cum Addendum and by way
of an e-mail or SMS to unitholders of that particular scheme

Past performance may or may not be sustained in the future and is not indicative of future results. Source: HSBC Mutual Fund, data as on
31 January 2024

Disclaimer: This document has been prepared by HSBC Asset Management (India) Private Limited (HSBC) for information purposes only and should not be
construed as i) an offer or recommendation to buy or sell securities, commodities, currencies or other investments referred to herein; or ii) an offer to sell or a
solicitation or an offer for purchase of any of the funds of HSBC Mutual Fund; or iii) an investment research or investment advice. It does not have regard to specific
investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek personal and
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Asset management (India) Private Limited and / or its affiliates or any of their directors, trustees, officers and employees be liable for any direct, indirect, special,
incidental or consequential damages arising out of the use of information / opinion herein.
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