HSBC Value Fund delivers impressive returns and outperforms peers

HSBC Value Fund has outperformed its benchmark and peers across timeframes, driven by strong stock selection and higher mid- and small-cap exposure

The HSBC Value Fund, launched in January 2010, has featured in the top 30th percentile of the focused funds category of the Crisil Mutual Fund Ranking (CMFR) for three consecutive quarters through March 2026. The fund’s assets under management (AUM) increased to ₹13,371 crore at March-end 2026 from ₹7,884 crore at March-end 2023. Venugopal Manghat has managed the fund since November 2012.

 

The scheme aims to ensure long-term capital appreciation by investing in a diversified portfolio of predominantly equity and equity-related securities, with a greater focus on undervalued securities.

   

Trailing returns

   

The fund outperformed the benchmark Nifty 500 TRI over the one-, two-, three, five-, seven- and 10-year trailing periods. It also outperformed other funds ranked in the CMFR’s value fund category in March 2026 over the one-, two-, three-, five-, seven- and 10-year trailing periods.

 

To put this in perspective, an investment of ₹10,000 in the fund on January 8, 2010 — the fund’s inception date — would have increased to ₹1,14,885 on May 7, 2026, at an annualised rate of 16.12 per cent. The same investment in the category and the benchmark would have grown to ₹75,880 (13.21 per cent) and ₹62,943 (11.92 per cent), respectively.

   

A systematic investment plan (SIP) is a disciplined way of investing in mutual funds, wherein a specific amount is invested at regular intervals.

 

A monthly SIP of ₹10,000 in the fund over 10 years, totalling ₹12 lakh, would have grown to ₹29.42 lakh (17.27 per cent annualised return). In comparison, the same investment in the benchmark would have risen to ₹24.95 lakh (14.17 per cent), as on May 7, 2026. Overall, the fund has outperformed the benchmark over the one, three-, five-, seven- and 10-year SIP periods.

     

Portfolio analysis

   

The fund's exposure to largecap stocks has been lower than that of its peers in the past three years.

 

Allocation averaged 43.62 per cent in largecap stocks, and 20.83 per cent and 33.74 per cent in mid- and smallcap stocks, respectively. In comparison, the category’s investments in largecap stocks stood at 56.12 per cent on average, followed by 14.65 per cent in midcaps and 21.90 per cent in smallcaps. The fund’s allocation to midcap and smallcap stocks surpassed its peers.

 

The portfolio was diversified across 21 sectors. The highest average allocation was to financial services at 29.94 per cent, followed by capital goods (9.47 per cent), information technology (8.95 per cent), fast-moving consumer goods (5.91 per cent) and construction (5.37 per cent).

 

The fund’s overweight positions, compared with its category, in certain large-, mid- and smallcap stocks and high-return sectors such as metals (27.35 per cent), capital goods (24.52 per cent) and realty (19.90 per cent) helped it outperform in the past three years.

 

During the period under review, the fund took exposure to 111 stocks and held 37 consistently. The Multi Commodity Exchange of India, GE T&D India, National Thermal Power Corporation, Jindal Stainless and Karur Vysya Bank were the key contributing stocks to the portfolio.