The HSBC Large & Mid Cap Fund delivered a 16.2% one-year return, outperforming its benchmark. While the fund leads this timeframe, investors should consider its "very high" risk rating and check performance across longer horizons. The fund currently manages around ₹5,344 crore in assets.
The HSBC Large & Mid Cap Fund has reported strong performance, achieving a one-year compound annual growth rate of 16.2%. This performance indicates it has outperformed its benchmark, the NIFTY Large Midcap 250 TRI, which delivered a 2.1% return during the same period. This contrast highlights a period of significant growth for the fund relative to its assigned index.
Understanding Performance Beyond One Year
While the HSBC fund shows a strong one-year record, mutual fund performance can often shift depending on the time frame chosen. For instance, data indicates that other funds, such as the Sundaram Large and Mid Cap Fund, have seen different return profiles over one-month and three-month periods. Meanwhile, funds like the Invesco India Large & Mid Cap Fund have shown competitive strength over a three-year horizon. For investors, looking at returns across various cycles—rather than just the last 12 months—helps in understanding if a fund’s performance is consistent or influenced by short-term market trends.
Risk and Fund Context
The HSBC fund currently manages assets totaling approximately ₹5,344 crore. When looking at this fund, it is important to understand that it falls into the "Very High" risk category according to SEBI's riskometer. Funds in the large-and-mid-cap category are typically more volatile than those focused purely on large-cap stocks or debt, as they invest in mid-sized companies that can experience sharper price swings.
Investors should also consider costs. The fund's regular plan carries an expense ratio of roughly 2.53%–2.54%. Additionally, there is a 1% exit load for investors who choose to redeem more than 10% of their units within one year of their investment. These charges are relevant because they affect the actual returns a shareholder receives.
Moving forward, the primary monitorables for investors include the fund's consistency in managing market volatility and how it maintains its performance relative to peers over longer periods. A long-term investment horizon is typically advised for this category of funds to help smooth out the impact of short-term market ups and downs.