HSBC Asset Management has launched its HSBC India Multi Income fund which will begin trading on 12 January 2024.
The fund, which was made available to retail investors in Hong Kong on Tuesday, will be made up of a diversified portfolio of India fixed income, equities and currency. It aims to provide investors access to India’s fast-growing economy.
The strategy will focus on Indian government bonds, as well as investment-grade and high-yield corporate bonds. It will also invest in large- mid- and small-cap Indian equities.
“Investors should not overlook India as both its bonds and equities offer attractive potential for yields and returns,” said Charles Li, head of wholesale, Asia, HSBC Asset Management, in a statement.
The product is managed by Gloria Jing, director of multi asset at HSBC Asset Management, who said: “Buoyed by ongoing reforms and structural changes, Indian equities offer standout earnings and growth prospects.”
The inclusion of India government bonds to JPMorgan’s emerging market benchmarks is also expected to drive strong inflows to India.
Jing added: “The HSBC India Multi Income fund combines the benefits of equities and bonds with a granular approach to allocation.”
“The fund will flexibly invest across different vehicles including direct investments like bonds and equities, to indirect investments such as mutual funds, ETFs and REITs, offering investors a unique chance to harness India’s thriving economy and markets.”
She also noted that Indian equities and bonds exhibit a relatively low correlation to their global and regional peers, which could offer diversification benefits to a portfolio.
The annual management fee is 1.6%, and dividends will be paid out monthly (although payments are not guaranteed).
The fund’s base currency is US dollars, and share classes are also available in Hong Kong, Australian, Canadian and Singapore dollars, euros, pound sterling and renminbi.
