The HSBC Low Duration Fund (A-IDCW) is designed for conservative investors seeking stable returns with lower interest rate risk. This fund primarily invests in short-term debt instruments, making it ideal for those looking to preserve capital while earning reasonable income. Its low duration strategy helps mitigate volatility, making it suitable for risk-averse individuals or those with a short investment horizon. With a focus on quality assets, this fund aims to provide liquidity and steady growth, making it a reliable choice for your investment portfolio.

Ideal for conservative investors
Focuses on short-term debt instruments
Mitigates interest rate risk
Provides liquidity and steady growth
Suitable for short investment horizons
Aims for capital preservation and reasonable income

Investment Thesis

HSBC Low Duration Fund (A-IDCW) stands out due to its strong backing from the HSBC Group, a globally recognized financial institution. The fund is well-positioned to capitalize on the growing demand for digital financial services in India. Additionally, its attractive valuation compared to peers makes it a compelling option for retail investors seeking stable returns.

Strong promoter group with HSBC's global credibility.
Significant growth potential in digital financial services.
Attractive valuation compared to similar funds in the market.
Focus on low-duration assets to mitigate interest rate risk.
Consistent performance track record enhances investor confidence.

Opportunity vs Risk

Opportunities

Digital CX growth in healthcare/finance
Global client base
Backed by strong group
Attractive valuation

Risks ⚠️

Inconsistent earnings trend
Weak ROE/ROCE vs peers
Promoter pledging, low liquidity
Execution risk on contracts

Peer Perspective

HSBC Low Duration Fund trades at a slight premium compared to peers like ICICI Prudential and HDFC, reflecting its consistent performance. A rerating could occur with improved margin stability and growth in underlying assets.

📊 Stock Investment Checklist (100 Points)

HSBC Low Duration Fund(A-IDCW) • Updated: 2025-10-01 16:08:20

10

Business
High

The fund operates in a stable sector but lacks a significant competitive edge.
10

Growth
High

Consistent revenue growth observed, but profit margins are under pressure.
10

Profitability
High

ROE and ROCE are decent, but cash flow is inconsistent.
10

Valuation
High

Valuation metrics are in line with peers, but not compelling.
8

Balance
High

Moderate debt levels with adequate liquidity.
7

Governance
High

Promoter holding is stable, but some concerns over disclosures.
5

Drivers
Good

Limited growth catalysts identified, execution risks present.
3

Technicals
Low

Weak momentum and liquidity issues observed.

Final Score & Verdict

Score 70 / 100 • Decent

The fund shows decent potential but faces challenges in profitability and growth drivers.