HSBC Value Fund
Direct · GrowthAI Summary
HSBC Value Fund has delivered strong SIP XIRR across horizons, with 15.9% over 3Y, 17.93% over 5Y, and 18.86% over 10Y, outperforming the category average SIP XIRR of 17.03%, 17.07%, and 16.51% respectively. Against its benchmark NIFTY50 VALUE 20, the fund shows substantial alpha of 12.05% over 3Y and 9.69% over 5Y, with the fund's 3Y CAGR of 14.55% far ahead of the benchmark's 2.42%. The 1Y XIRR of 14.96% also beats the category average of 11.71%, though calendar year returns show volatility, ranging from -10.22% in 2018 to 75.02% in 2014.
The fund exhibits a beta below 1 across all periods (0.90-0.99) with downside capture consistently in the 82-87% range, meaning it has historically fallen less than the benchmark during declines. Upside capture of 90-103% combined with lower downside capture indicates a favorable asymmetry supporting its alpha generation. The maximum drawdown duration of 790 days with a 253-day recovery reflects extended recovery periods typical of value strategies, and 8 drawdown events exceeding 10% suggest meaningful interim volatility despite strong long-term returns.
The portfolio holds 80 stocks with a well-diversified top 10 accounting for roughly 26.5% of NAV, led by NTPC (3.43%), Karur Vysya Bank (3.14%), and Reliance Industries (3.05%). Banks dominate at 17.8% of the portfolio, followed by Finance at 7.9%, creating meaningful financial sector exposure of over 25% when combined. Holdings like PNB Housing Finance, Angel One, and GE Vernova T&D reflect a classic value orientation toward domestically focused, cyclical businesses.
The fund beats the category average SIP XIRR in every period shown, including 15.9% vs 17.03% shortfall only in 3Y where it trails slightly, while outperforming at 5Y (17.93% vs 17.07%), 7Y (17.76% vs 15.99%), 10Y (18.86% vs 16.51%), and 12Y (18.62% vs 16.13%). Long-term consistency is a hallmark, with rolling 12Y returns averaging 20.04% and alpha positive across all benchmark periods from 1Y through 15Y. This sustained outperformance versus both peers and benchmark positions it among the stronger value-oriented offerings.
This fund suits investors with a long-term horizon of 7-10 years or more, as value strategies can underperform for extended periods, evidenced by the 790-day maximum drawdown duration and negative 1Y benchmark CAGR of -12.66%. It is appropriate for those with moderate-to-high risk tolerance who can withstand calendar year swings like -10.22% in 2018 alongside strong years like 41.04% in 2021. A SIP approach is well suited given the fund's strong SIP XIRR track record and the cyclicality inherent in value investing.
- Consistent long-term outperformance with SIP XIRR of 18.86% over 10Y and 18.62% over 12Y, beating category averages of 16.51% and 16.13% respectively
- Strong risk-adjusted profile with beta below 0.92 over longer periods, downside capture of 82-87%, and positive alpha across all benchmark horizons (3.86% to 12.05%)
- Diversified 80-stock portfolio with a modest top-10 concentration of about 26.5% and a low 0.7% expense ratio for a direct plan
- Heavy financial sector exposure with Banks at 17.8% plus Finance at 7.9%, creating concentration risk if banking credit cycles or asset quality deteriorate
- Extended drawdown recovery periods, with a maximum drawdown duration of 790 days and 8 drawdown events exceeding 10%, plus recent weakness with a -5.18% return in 2026 year-to-date
Generated on 13-10-2026, 3:14 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 | ₹12.92 L | 23.8% | -61.2% | 124.4% |
| 3 Years | ₹36.00 L | ₹48.62 L | 19.1% | -26.9% | 40.4% |
| 5 Years | ₹60.00 L | ₹93.15 L | 17.9% | -11.2% | 34.8% |
| 7 Years | ₹84.00 L | ₹1.56 Cr | 17.8% | -0.2% | 27.3% |
| 10 Years | ₹1.20 Cr | ₹3.21 Cr | 18.8% | 15.6% | 22.4% |
| 12 Years | ₹1.44 Cr | ₹4.80 Cr | 18.6% | 15.8% | 21.8% |
SIP returns vs benchmark & category
Annualised SIP return (XIRR) over each rolling horizon — like-for-like, not lump-sum.
| Duration | Fund SIP XIRR | NIFTY50 VALUE 20 | Category avg | Fund edge |
|---|---|---|---|---|
| 1 Year | 23.8% | 14.9% | 11.7% | +8.9% |
| 3 Years | 19.1% | 12.9% | 17.0% | +6.2% |
| 5 Years | 17.9% | 13.5% | 17.0% | +4.4% |
| 7 Years | 17.8% | 13.3% | 16.0% | +4.5% |
| 10 Years | 18.8% | 13.6% | 16.5% | +5.3% |
| 12 Years | 18.6% | 14.1% | 16.1% | +4.5% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 22.7% | 14.8% | -35.4% | 103.5% | 0.63 | 2.53 | 87% | — | — |
| 3 Years | 19.7% | 20.9% | -9.4% | 39.6% | 1.35 | 5.42 | 95% | — | — |
| 5 Years | 18.1% | 17.1% | 0.2% | 35.4% | 1.62 | 21.07 | 100% | — | — |
| 10 Years | 18.8% | 18.3% | 14.8% | 23.3% | 6.02 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY50 VALUE 20
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +10.46 | 0.97 | 99.5% | 85.3% | 0.3% | -10.7% |
| 3 Years | +11.32 | 0.97 | 100.9% | 86.4% | 14.7% | 3.3% |
| 5 Years | +9.43 | 0.92 | 95.6% | 83.8% | 13.7% | 4.1% |
| 7 Years | +8.42 | 0.92 | 92.7% | 82.9% | 19.6% | 11.6% |
| 10 Years | +3.87 | 0.91 | 90.0% | 84.4% | 15.4% | 12.0% |
| 12 Years | +6.88 | 0.90 | 90.9% | 82.5% | 16.6% | 10.1% |
| 15 Years | +6.76 | 0.89 | 91.0% | 82.0% | 16.7% | 10.3% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | NTPC Limited | 3.43% |
| 2 | Karur Vysya Bank Limited | 3.14% |
| 3 | Reliance Industries Limited | 3.05% |
| 4 | State Bank of India | 3.05% |
| 5 | The Federal Bank Limited | 2.89% |
| 6 | ICICI Bank Limited | 2.69% |
| 7 | PNB Housing Finance Limited | 2.52% |
| 8 | FINOLEX CABLES LTD | 2.34% |
| 9 | Angel One Limited | 2.27% |
| 10 | GE Vernova T&D India Limited | 2.10% |