With 44.93% SIP Returns In 5 Years, This Managed Solutions-Growth Fund Is Good For SIP

In a sea of funds for investments, FoF (Fund OF Funds) could be a good investment option. The risk of a FOF is distributed among hundreds or even thousands of equities in the mutual funds it invests in. FOFs also allow investors to diversify their portfolios and lessen the risk of investing with a single fund manager. In this article, we have given insights into the one FoF that has given good returns over the years. Check out the fund's detail as well as returns.

HSBC Managed Solutions - Growth - Direct Plan - Growth

This Aggressive hybrid FoF scheme was launched on 13th April 2014 by the HSBC Mutual Funds. It is open-ended with an above-average risk grade fund. The Asset Under Managed for the Growth scheme of the fund is Rs 39.56 crore. The NAV of the scheme declared on 07th April 2022 is Rs 27.5833. The expense ratio of the scheme is Rs 1.41%, compared to its category average return its high. 

This is a medium-sized fund (FoF) of its category. It is a highly risky fund for investments. Value Research has rated this fund's scheme 3-Star. The minimum investment amount required in this growth scheme of the fund is Rs 5,000 and for SIP it is Rs 500. 

The scheme aims to offer long-term total return by investing in a basket of debt, equity, gold exchange-traded funds (ETFs) and other ETFs, units of offshore mutual funds, and money market instruments with active asset allocation and diversification commensurate with the risk profile of investments.

Absolute And Annualised Returns

Lump-Sum Investment Returns

Since its inception, it has delivered 13.63% average annual returns.

Investment Period	Absolute Returns	Annualised Returns
1 Year	18.28%	18.28%
2 Year	87.12%	36.79%
3 Year	51.25%	14.75%
5 Year	74.30%	11.75%
Since Inception	175.83%	13.63%

SIP Returns

SIP Period	Absolute Returns	Annualised Returns
1 Year	5.66%	10.66%
2 Year	26.74%	24.64%
3 Year	35.45%	20.73%
5 Year	44.93%	14.83%

Portfolio

The equity part of the fund is predominantly invested in the financial industry. In comparison to other funds in the category, it has less exposure to financial industries. The fund's debt part has a low credit rating, meaning that the borrowers to whom it has given money are not of high quality. HSBC Equity Direct-Growth, HSBC Midcap Equity Direct-Growth, HSBC Income Short Term Direct-Growth, HSBC Income Investment Direct-Growth, and HSBC Flexi Debt Direct-Growth are the fund's top holdings.

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme-related documents, and Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.