HSBC Mutual Fund has announced the launch of HSBC India Export Opportunities Fund, an open-ended equity scheme following the export theme.

The new fund offer or NFO of this new scheme will open for subscription on September 5 and will close on September 19.

HSBC India Export Opportunities Fund aims to generate long-term capital growth from an actively managed portfolio of equity and equity-related securities of companies engaged in or expected to benefit from export of goods or services.

The scheme has the flexibility to invest in companies that are part of the exports theme across market capitalization – large cap, mid cap and small cap companies, according to a press release by the fund house. The scheme will track Nifty 500 Total Return Index (TRI). The scheme will be managed by Abhishek Gupta and Sonal Gupta.

The fund is a unique offering in the industry having a differentiated allocation structure. This thematic fund aims to capture the growth in exports, said the release.

The scheme will allocate 80-100% in equities and equity-related securities of companies engaged in or expected to benefit from the export of goods or services, 0-20% in other equity and equity-related securities, 0-20% in debt securities and money market instruments (including cash and cash equivalents, units of liquid and overnight mutual funds), and 0-10% in units of REITs and InvITs.

“The Indian government’s ambitious target to achieve $2 trillion in annual exports by 2030 underscores the nation’s commitment to expanding its international trade footprint. Our strength in skilled labour, and the focus on supply chain diversification along with reforms and incentives enhances our competitive edge in the global markets. Exports is an ever-evolving opportunity for the country, helping businesses improve productivity and efficiency; and build forex reserves for the country. Overall, India is well positioned to leverage this potential, supporting economic development, and fostering growth,” said Kailash Kulkarni, CEO, HSBC Mutual Fund.

“Stocks will be selected taking into consideration multiple criteria including fundamentals of the business, industry structure, relative business strength amongst peers, quality of the management, sensitivity to economic factors, financial strength of the company, key earnings drivers, and valuation. We believe that this, along with our bottom-up approach to investing may help in creating alpha over the medium to long-term for our prospective investors,” said Venugopal Manghat, CIO-Equity, HSBC Mutual Fund.