HSBC MF's Multi Cap Fund Turns 3; CIO Highlights the 'Power of Three'

As the HSBC Multi Cap Fund completes three years since launch on Jan 2023, Venugopal Manghat, Chief Investment Officer – Equity at HSBC Mutual Fund, says the milestone may offers a good moment to revisit a simple but enduring investment principle: diversification.

Launched on 30thJanuary 2023, the fund was designed to pursue long term capital growth by investing across large cap, mid cap and small cap companies. Mr. Manghat says the idea behind the strategy has remained consistent since the beginning - participating in the full breadth of India’s equity markets rather than relying on a single segment to drive returns.

Since inception, the fund has delivered a compound annual growth rate (CAGR) of 22.56%, outperforming its benchmark over the same period. For Manghat, however, the numbers are only one part of the story. The broader objective has been to build a portfolio capable of navigating changing market conditions while staying diversified.

The three year milestone also coincides with the launch of a digital campaign titled “Teen Tigda Kaam Tagda”, which aims to translate the fund’s diversification philosophy into a message that everyday investors can easily relate to.

Fund performance since inception

Data as of 28February 2026 shows that the HSBC Multi Cap Fund has generated a CAGR of 22.52% since launch. Over the same period, its benchmark - the NIFTY 500 Multicap 50:25:25 Total Return Index (TRI) - delivered 18.75%, while the Nifty 50 TRI returned 13.54% (Regular Plan).

Investor participation in the scheme has grown steadily since launch, with assets under management (AUM) currently at around 5,300 crore.

Manghat notes that the fund’s progress can also be illustrated through systematic investing. An investor who began a monthly systematic investment plan (SIP) of 10,000 in January 2023 would have invested a total of 3.60 lakh by the end of January 2026.

During this period, the value of the investment would have grown to about 4,56,307 reflecting an XIRR of 13.77%. An equivalent investment aligned with the benchmark would have risen to roughly 4,39,485 translating to an XIRR of 11.24%.

According to Manghat, the broader takeaway is straightforward: disciplined investing and diversification often deliver better outcomes over time than trying to predict short term market movements.

Diversification at the core of the strategy

The HSBC Multi Cap Fund follows the regulatory framework for multi cap schemes, which requires a minimum allocation of 25% each to large cap, mid cap and small cap stocks. This ensures the portfolio remains diversified across market capitalisation segments.

Manghat believes this structure allows investors to participate in multiple layers of India’s growth story. Large cap companies typically provide stability and scale, while mid cap and small cap firms often represent businesses that are expanding and unlocking new opportunities.

The fund follows a bottom up stock selection approach guided by the GARP (Growth at a Reasonable Price) philosophy. In practice, the investment team looks for companies with strong earnings growth potential that are still reasonably valued.

Another part of the strategy involves identifying businesses that may not yet be widely owned or closely tracked by investors but show the potential to grow meaningfully over time.

Manghat on navigating evolving markets

Manghat believes diversification becomes particularly valuable in markets where leadership can shift quickly between sectors and company sizes.

“A disciplined multi cap strategy allows investors to participate across the broader equity market rather than concentrating exposure in a single segment,” he said. “By combining large, mid and small cap stocks, investors can potentially capture opportunities that emerge across different phases of economic and corporate growth cycles.”

He adds that rigorous research and prudent risk management remain central to the investment process, especially in environments where market leadership can change rapidly.

Translating the philosophy into a campaign

While the investment strategy emphasises diversification, Manghat also wanted the idea to be communicated in a simple and engaging way. That thinking eventually led to the campaign “Teen Tigda Kaam Tagda”.

The campaign draws inspiration from the familiar phrase “Teen tigdakaambigda,” often interpreted as “three’s a crowd.” Instead of challenging the belief directly, the campaign reframes it - suggesting that the number three can represent strength in investing.

The digital film follows a fictional character named Ramesh, who believes that whenever three people are involved, something is bound to go wrong. This belief shows up repeatedly in his daily life.

But when it comes to investing, the number three takes on a different meaning. In mutual fund portfolios, combining large cap, mid cap and small cap stocks may strengthen diversification. A multi cap fund blends these three segments to build a portfolio that can capture opportunities across the broader equity market.

Manghat credits Ankur Thakore, Chief Business Officer at HSBC Mutual Fund, with helping translate this philosophy into a campaign that investors can immediately connect with. The film concludes with the message “Teen Tigda Kaam Tagda”, reinforcing the idea that bringing together three market segments can work in an investor’s favour when building a long term portfolio.

Reaching investors across platforms

The “Teen Tigda Kaam Tagda” campaign is being rolled out across digital platforms, print media and outdoor advertising, with the aim of building awareness around multi cap investing and the role diversification can play in long term portfolios.

The HSBC Multi Cap Fund is positioned for investors comfortable with very high levels of risk and seeking long term capital appreciation through equity investments across multiple market capitalisation segments.For Manghat, the fund’s three year journey reinforces a core investment lesson: diversification and disciplined investing often prove more valuable than trying to predict short term market movements.

Source: HSBC Mutual Fund. Data as on Feb 28, 2026   Click: https://www.assetmanagement.hsbc.co.in/assets/documents/mutual-funds/en/c7d27da2-209d-40a1-a69f-81ebadd2cb1a/performance-note-equity-hybrid-debt-global-funds-march-2026.pdf to check other funds performance managed by the Fund Manager