HSBC Midcap mutual fund review: Steady fund battling bad times; should you invest?

ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.

BASIC FACTS
DATE OF LAUNCH
9 AUGUST 2004
CATEGORY

EQUITY
TYPE
MID CAP
AUM*
Rs.6,981 Crore
BENCHMARK
NIFTY MIDCAP 150
TOTAL RETURN INDEX

WHAT IT COSTS
NAV**
GROWTH OPTION
Rs.201.83
IDCW
Rs.49.24
MINIMUM INVESTMENT
Rs.5,000
MINIMUM SIP AMOUNT
Rs.500
EXPENSE RATIO*** (%)
1.85
For units in excess of 10% of the investment,1% will be charged for redemption within 365 days

*AS ON 28 FEBRUARY 2023
**AS ON 14 MARCH 2023
***AS ON 31 JANUARY 2023

FUND MANAGERS
VIHANG NAIK
6 YEARS, 8 MONTHS

Recent portfolio changes
New Entrants
Gujarat State Petronet, Shree Cement.
Complete Exits
ACC, Arvind, Indraprastha Gas, INOX Leisure, Motherson Sumi Wiring, RateGain Travel Technologies, Sona BLW Precision Forgings, Affle (India), Navin Fluorine, Page Industries, SRF, Vinati Organics.
Increasing allocation
HDFC AMC, Lupin, NTPC, Suven Pharmaceuticals, Tata Communications, Gujarat State Petronet, Johnson Controls -Hitachi Air Conditioning, Lupin, Suven Pharmaceuticals.

Should you buy?
This fund (earlier L&T Midcap) retains its mid cap tilt, after paring back its earlier heavy small cap exposure. The fund portfolio is heavily diversified and its risk conscious approach is evident in the modest exposure taken even in top bets. The fund continues to take sharp sector deviations relative to index —currently heavily overweight healthcare and relatively light on financials. A consistent performer earlier, the fund has fallen on tough times since 2018, chronically lagging index and peers. The fund needs to address widening gap relative to index if it is to be counted among top picks in its category.