HSBC Global Investment Funds - Indian Equity (JHSC)

Overview

The fund represents a targeted investment platform that focuses on a specific segment of the U.S. equity market, primarily characterized by small to mid-cap companies. By setting a minimum investment threshold of 80% of its net assets, the fund commits the majority of its resources to securities that make up its defined index. This index is meticulously crafted to include companies positioned within a particular niche: those larger than the smallest 4% of U.S. companies, yet smaller than the 750th largest company in the U.S. This strategy reflects a deliberate choice to invest in companies that, by virtue of their market capitalization, offer growth potential that differs from the largest U.S. corporations while avoiding the most volatile and risky smallest entities. The operation of the fund is anchored on a foundation of rigorous selection criteria and strategic reconstitution to adapt to market changes, ensuring fidelity to its investment thesis and alignment with the investment objectives of its stakeholders.

Products and Services

• Small to Mid-Cap Equity Investments

  The core product of this fund is its investment portfolio that focuses on small to mid-cap equity securities. By adhering to a strict criterion that targets companies based on their market capitalization rankings, the fund offers investors a unique opportunity. This scope aims to balance the growth prospects inherent in smaller companies with the stability more typical of mid-cap firms, thus targeting entities that are often overlooked in broader index funds.

• Index-Based Investment Strategy

  In alignment with its investment focus, the fund employs an index-based strategy to manage its asset allocation. The index guides the fund’s investment decisions by identifying eligible companies that fit within the fund’s market capitalization range criteria. This method ensures a systematic and disciplined investment approach, reducing the reliance on speculative stock picking and aligning the fund’s portfolio with the performance of its targeted market segment.