HSBC Nifty Next 50 Index Fund(IDCW Payout)

Ticker: mf17230
Decent 56/100

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Business Overview

The HSBC Nifty Next 50 Index Fund (IDCW Payout) is designed for investors looking to gain exposure to the next tier of large-cap companies in India. This fund tracks the Nifty Next 50 Index, making it ideal for those seeking long-term capital appreciation through diversified equity investments. It is suitable for both new and seasoned investors aiming to build a robust portfolio with potential growth. With a focus on transparency and low costs, this fund represents a strategic choice for wealth creation.

  • Tracks the Nifty Next 50 Index
  • Ideal for long-term capital appreciation
  • Diversified exposure to large-cap companies
  • Suitable for both new and experienced investors
  • Focus on transparency and low costs
  • Helps in building a robust investment portfolio

Investment Thesis

HSBC Nifty Next 50 Index Fund offers a compelling investment opportunity due to its strong promoter credibility, significant growth potential in digital services, and attractive valuations compared to peers. This fund is well-positioned to capitalize on India's evolving market landscape, making it a prudent choice for retail investors seeking long-term growth.

  • Strong backing from HSBC, a globally recognized financial institution.
  • Exposure to high-growth companies in the Nifty Next 50 index.
  • Digital services are rapidly expanding, enhancing fund performance potential.
  • Valuations remain attractive compared to similar funds, providing a margin of safety.
  • Diversified portfolio reduces risk while aiming for substantial returns.

Opportunity vs Risk

Opportunities
  • Diversification across 50 large companies
  • Potential for long-term capital growth
  • Access to emerging market trends
  • Lower expense ratio than active funds
Risks ⚠️
  • Market volatility affecting index performance
  • Limited to Nifty Next 50 stocks
  • Economic downturns impact returns
  • Potential tracking error with index
📊 Stock Investment Checklist (100 Points)
HSBC Nifty Next 50 Index Fund(IDCW Payout) • Updated: 2025-10-01 03:08:25
  • 10
    Business
    High
    The fund is invested in a diversified portfolio of companies in the Nifty Next 50, which includes future-ready sectors.
  • 10
    Growth
    High
    Consistent revenue and profit growth observed in the underlying companies.
  • 10
    Profitability
    High
    ROE and ROCE are healthy, but OCF is slightly lower than net profit.
  • 8
    Valuation
    High
    P/E and P/B ratios are in line with peers, indicating fair valuation.
  • 7
    Balance
    High
    Debt levels are manageable, with good liquidity and reserves.
  • 6
    Governance
    Good
    Promoter holding is stable, with minimal pledging and good disclosures.
  • 5
    Drivers
    Good
    Growth drivers are present, but execution risks remain due to market volatility.
  • 5
    Technicals
    Good
    Market sentiment is neutral, with moderate liquidity.
Final Score & Verdict
Score 56 / 100 • Decent
The HSBC Nifty Next 50 Index Fund shows decent potential with a diversified portfolio and consistent growth, but investors should be cautious of market volatility and execution risks.