HSBC Medium to Long Duration Fund Fund(IDCW Payout)

Ticker: mf17601
Decent 68/100

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Business Overview

The HSBC Medium to Long Duration Fund is designed for investors seeking stable returns through a diversified portfolio of fixed-income securities. Ideal for those with a moderate to long-term investment horizon, this fund aims to capitalize on interest rate movements while managing risk effectively. With a focus on quality bonds, it offers a reliable option for wealth creation and income generation.

  • Targeted at moderate to long-term investors
  • Focuses on high-quality fixed-income securities
  • Aims to provide stable returns
  • Helps in managing interest rate risks
  • Offers regular income through IDCW payouts

Investment Thesis

The HSBC Medium to Long Duration Fund offers a compelling investment opportunity, backed by a strong promoter group and credibility. With a significant growth runway in digital services and attractive valuations compared to peers, this fund is poised for robust performance in the evolving market landscape.

  • Strong backing from HSBC, a globally recognized financial institution.
  • Expanding digital services enhance customer engagement and operational efficiency.
  • Attractive valuation metrics compared to similar funds in the market.
  • Focus on medium to long duration bonds provides stability and income potential.
  • Proven track record of performance and risk management.

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 Medium to Long Duration Fund trades at a slight premium compared to peers like ICICI Prudential and HDFC, with a key rerating condition being consistent margin stability and improved interest rate outlook.
📊 Stock Investment Checklist (100 Points)
HSBC Medium to Long Duration Fund Fund(IDCW Payout) • Updated: 2025-10-01 14:52:29
  • 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 OCF is inconsistent compared to net profit.
  • 8
    Valuation
    High
    Valuation metrics are slightly above peers, indicating potential overvaluation.
  • 7
    Balance
    High
    Debt levels are manageable, but liquidity could be improved.
  • 6
    Governance
    Good
    Promoter holding is stable, but there are concerns about transparency.
  • 5
    Drivers
    Good
    Limited growth catalysts identified, with execution risks present.
  • 5
    Technicals
    Good
    Market sentiment is neutral, with low liquidity affecting price action.
Final Score & Verdict
Score 68 / 100 • Decent
The fund shows decent potential but faces challenges in profitability and valuation metrics. Investors should monitor market conditions closely.