The HSBC Medium Duration Fund (A-IDCW) is designed for investors seeking a balanced approach to fixed income investments. It focuses on medium-duration securities, making it ideal for those looking to optimize returns while managing interest rate risks. This fund is suitable for conservative investors aiming for steady income and capital preservation over a medium-term horizon. With a strong track record and professional management, it stands out as a reliable choice in the Indian mutual fund landscape.

Focuses on medium-duration securities
Ideal for conservative investors
Aims for steady income and capital preservation
Managed by experienced professionals
Strong track record in fixed income
Helps in optimizing returns while managing risks

Investment Thesis

HSBC Medium Duration Fund (A-IDCW) stands out due to its strong backing from the reputable HSBC Group, ensuring credibility and trust. The fund is well-positioned to capitalize on the growing digital services landscape, enhancing customer engagement and operational efficiency. Furthermore, its attractive valuation compared to peers presents a compelling investment opportunity for retail investors.

Backed by the globally recognized HSBC Group, ensuring strong credibility.
Significant growth potential in digital services, enhancing customer experience.
Attractive valuation compared to peer funds, offering better investment returns.
Focus on medium-duration assets provides a balanced risk-return profile.
Consistent performance track record, appealing to conservative investors.

Opportunity vs Risk

Opportunities

Strong historical performance
Diversification in fixed income
Potential for stable returns
Rising interest rates benefit bonds

Risks ⚠️

Interest rate fluctuations
Credit risk in bond holdings
Market volatility impact
Liquidity concerns during downturns

Peer Perspective

HSBC Medium Duration Fund trades at a slight premium compared to peers like HDFC Medium Duration Fund and ICICI Prudential Medium Duration Fund. A rerating could occur if it demonstrates consistent margin stability and improved yield performance.

📊 Stock Investment Checklist (100 Points)

HSBC Medium Duration Fund(A-IDCW) • Updated: 2025-10-01 16:08:50

10

Business
High

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

Growth
High

Moderate revenue and profit growth observed, but consistency is a concern.
10

Profitability
High

ROE and ROCE are acceptable, but cash flow is inconsistent.
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 minor concerns regarding disclosures.
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 is hindered by growth consistency and valuation concerns.