HSBC Focused Fund
Direct · GrowthAI Summary
HSBC Focused Fund has delivered strong alpha across all timeframes, with SIP XIRR of 17.57% over 3Y and 14.91% over 5Y versus category averages of 15.84% and 15.54% respectively. Against the NIFTY 50, the fund generated 8.96% alpha over 3Y and 6.26% over 5Y, with a 3Y fund CAGR of 13.69% versus the benchmark's 4.78%. However, recent performance has softened, with calendar year returns of just 2.28% in 2025 and 2.08% in 2026 after strong gains of 24.32% in 2024 and 30.26% in 2023.
The fund shows a beta of roughly 1.03, moving closely with the market, but demonstrates favorable asymmetry with upside capture above 100% and downside capture below 100% across all periods (e.g., 106.63% upside versus 95.12% downside over 3Y). It has experienced 3 drawdown events exceeding 10%, with a maximum drawdown duration of 151 days and a recovery period of 355 days, indicating meaningful but manageable drawdown risk. Calmar ratios of 0.87 (3Y) and 0.78 (5Y) reflect reasonable risk-adjusted returns given the market-like volatility profile.
The portfolio holds 26 stocks with the top 10 accounting for roughly 46.98% of NAV, led by HDFC Bank at 6.65% and Larsen & Toubro at 4.85%. Sector exposure is diversified across financials (Capital Markets 9.2%, Banks 8.9%, Finance 7.3% — a combined 25.4%), with meaningful allocations to Electrical Equipment (7.0%) and Automobiles (5.7%). The inclusion of Shadowfax Technologies, an unlisted-style transport services bet at 3.68%, adds a differentiated but higher-risk element to the concentrated focused-fund structure.
The fund outperforms the category average SIP XIRR over 1Y (13.39% vs 11.19%) and 3Y (17.57% vs 15.84%), though it trails slightly over 5Y (14.91% vs 15.54%). Its consistent positive alpha over every measured window from 1Y through 15Y suggests durable stock selection rather than a short-term anomaly. Calendar year returns show some volatility, ranging from -1.81% in 2022 to 31.92% in 2021, which is typical for a focused equity mandate.
This fund suits investors with a high risk tolerance seeking a concentrated, high-conviction equity portfolio that has historically outperformed the NIFTY 50 with lower downside capture. A minimum investment horizon of 5-7 years is recommended to ride out drawdowns like the 355-day recovery period observed. It works well as a core or satellite equity holding for investors comfortable with 26-stock concentration and sector tilts toward financials and industrials.
- Consistent positive alpha versus NIFTY 50 across all periods from 1Y to 15Y, including 8.96% over 3Y and 6.26% over 5Y
- Favorable capture asymmetry with upside capture above 100% and downside capture below 100% in every measured period
- Outperforms category average SIP XIRR over 1Y (13.39% vs 11.19%) and 3Y (17.57% vs 15.84%)
- Recent performance has weakened sharply, with calendar year returns of only 2.28% in 2025 and 2.08% in 2026
- Concentrated 26-stock portfolio with roughly 25.4% in financial-sector exposure and a 3.68% position in Shadowfax Technologies adds single-stock and sector risk
Generated on 17-10-2026, 2:11 AM. Verify before investing.
Gives more importance to longer time periods (10Y, 20Y) than shorter ones (1Y, 3Y). This balances out recent outperformance and gives a more realistic picture of what long-term returns might look like.
The largest peak-to-trough decline in the fund's NAV. Shows the worst-case loss an investor would have experienced at any point in the fund's history.
If you invested ₹1,00,000 every month via SIP, here's how this fund has historically performed across different time horizons.
| Duration | Invested | Median Value | XIRR | Min XIRR | Max XIRR |
|---|---|---|---|---|---|
| 1 Year | ₹12.00 L | ₹12.80 L | 18.1% | -26.8% | 63.4% |
| 3 Years | ₹36.00 L | ₹45.54 L | 17.6% | 2.8% | 31.0% |
| 5 Years | ₹60.00 L | ₹86.53 L | 15.0% | 9.1% | 19.1% |
SIP returns vs benchmark & category
Annualised SIP return (XIRR) over each rolling horizon — like-for-like, not lump-sum.
| Duration | Fund SIP XIRR | NIFTY 50 | Category avg | Fund edge |
|---|---|---|---|---|
| 1 Year | 18.1% | 14.3% | 11.2% | +3.9% |
| 3 Years | 17.6% | 11.0% | 15.8% | +6.5% |
| 5 Years | 15.0% | 10.4% | 15.5% | +4.7% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 18.0% | 12.6% | -7.2% | 71.4% | 0.68 | 3.47 | 89% | — | — |
| 3 Years | 18.4% | 18.6% | 11.2% | 25.1% | 4.37 | — | 100% | — | — |
| 5 Years | 16.5% | 15.4% | 10.4% | 22.8% | 3.11 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +13.11 | 1.02 | 104.6% | 89.0% | 3.2% | -9.5% |
| 3 Years | +7.86 | 1.02 | 105.5% | 95.2% | 13.3% | 5.5% |
| 5 Years | +5.56 | 1.02 | 103.3% | 96.3% | 10.1% | 4.6% |
| 7 Years | +5.09 | 1.01 | 101.5% | 94.5% | 16.2% | 11.1% |
| 10 Years | +3.45 | 1.01 | 101.5% | 94.5% | 11.1% | 7.6% |
| 12 Years | +2.84 | 1.01 | 101.5% | 94.5% | 9.2% | 6.3% |
| 15 Years | +2.24 | 1.01 | 101.5% | 94.5% | 7.3% | 5.0% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | HDFC Bank Limited | 6.65% |
| 2 | Larsen & Toubro Limited | 4.85% |
| 3 | Multi Commodity Exchange of India Ltd. | 4.66% |
| 4 | GE Vernova T&D India Limited | 4.60% |
| 5 | Nippon Life India Asset Management Ltd | 4.59% |
| 6 | Shriram Finance Limited | 4.51% |
| 7 | Reliance Industries Limited | 4.41% |
| 8 | KEI Industries Limited | 4.23% |
| 9 | Infosys Limited | 3.80% |
| 10 | Shadowfax Technologies Limited | 3.68% |