HSBC Focused Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 16, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
HSBC Focused Fund Direct Growth Plan has a NAV of ₹28.9283 as of 15 Sep 2026 and manages ₹1,843 Cr. Its 1-year, 3-year and 5-year returns are 6.72%, 13.61% and 12.06%, respectively, and the scheme sits in the High Risk bucket. Our view is that this is a focused equity fund with a decent long-term record, but the recent 1-year result is softer than its 3-year and 5-year numbers, so it suits investors who can stay with a concentrated equity approach through uneven periods.
The fund’s benchmark is Nifty 50, and the gap versus the benchmark is positive across the 3-year and 5-year periods. With a top-heavy portfolio and only 29 disclosed holdings, it may work better for investors who want active stock selection and can tolerate sharper swings than a broad-market index approach.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹28.9283 as of 15 Sep 2026 |
| AUM | ₹1,843 Cr |
| Expense Ratio | 0.98% |
| Launch Date | 22 Jul 2020 |
| Min SIP | ₹500 |
| Risk Category | High Risk |
| Benchmark | Nifty 50 |
| Fund Category | Equity |
| Exit Load | Nil upto 10% of units and 1% for remaining units on before 1Y |
| Fund Managers | Neelotpal Sahai, Mayank Chaturvedi |
The fund is managed by Neelotpal Sahai and Mayank Chaturvedi.
Source data date: as of 15 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | -3.45% | -4.81% |
| 3M | 3.32% | -3.63% |
| 1Y | 6.72% | -8.27% |
| 3Y | 13.61% | 5.59% |
| 5Y | 12.06% | 5.58% |
In the short run, the fund has been uneven. The 1-month return is negative, but the 3-month return has recovered into positive territory, which tells us the recent path has not been smooth even though the fund is still ahead of the benchmark over those same windows.
The 1-year figure is also positive while the benchmark is negative, so the fund has held up better than Nifty 50 over the past year. That said, the yearly pattern is not a straight line: the recent path includes dips and partial recoveries, so near-term volatility remains visible.
Over 3 years and 5 years, the picture is more constructive. The fund’s 13.61% 3-year return and 12.06% 5-year return are both clearly above the benchmark’s 5.59% and 5.58%, which suggests the strategy has added value over full market cycles rather than only in brief bursts.
Our view is that the key question is not whether the fund has beaten the index at times, but whether an investor can tolerate a concentrated equity portfolio when short-term performance turns choppy. The longer record is still stronger than the recent one, so the fund looks more suitable as a patient holding than as a short-term parking place.
Source data date: as of 15 Sep 2026
Should you BUY or HOLD HSBC Focused?
A fund’s past returns alone don’t tell you whether you should buy it today or continue holding it.
The right decision depends on factors such as your current allocation, purchase price, risk profile, investment horizon and the role this fund plays in your overall portfolio.
Already holding HSBC Focused? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| HSBC Focused Fund Direct Growth Plan | 6.72% | 13.61% | 12.06% |
| Motilal Oswal Focused Fund Direct Growth Plan | 22.84% | 13.21% | 10.13% |
| Old Bridge Focused Fund Direct Growth Plan | 14.09% | Data not available | Data not available |
| SBI Focused Fund Direct Growth Plan | 12.80% | 15.38% | 12.15% |
| Quant Focused Fund Direct Growth Plan | 11.10% | 12.62% | 13.61% |
| ITI Focused Fund Direct Growth Plan | 7.42% | 16.93% | Data not available |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
The fund’s 1-year return trails Motilal Oswal Focused Fund Direct Growth Plan, SBI Focused Fund Direct Growth Plan, Quant Focused Fund Direct Growth Plan and Old Bridge Focused Fund Direct Growth Plan on the available figures, though it is still ahead of ITI Focused Fund Direct Growth Plan over the same period. That makes the recent picture mixed rather than weak in absolute terms.
The longer record is more balanced. At 3 years, the fund sits above Motilal Oswal Focused Fund Direct Growth Plan, Quant Focused Fund Direct Growth Plan and Old Bridge Focused Fund Direct Growth Plan where data is available, while at 5 years it is ahead of Motilal Oswal Focused Fund Direct Growth Plan but behind SBI Focused Fund Direct Growth Plan and Quant Focused Fund Direct Growth Plan. In our view, the short-term and longer-term peer stories are not identical: the recent run has been less competitive than the longer cycle, but the fund still shows credible multi-year compounding.
Source data date: as of 15 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| ICICI Bank Limited | Bank | 8.13% |
| HDFC Bank Limited | Bank | 5.77% |
| Shriram Finance Limited | Finance | 4.67% |
| Multi Commodity Exchange of India Ltd. | Finance | 4.61% |
| TREPS | Cash & Cash Equivalents and Net Assets | 4.51% |
| Larsen & Toubro Limited | Infrastructure | 4.39% |
| Reliance Industries Limited | Crude Oil | 4.16% |
| Infosys Limited | IT | 4% |
| TVS Motor Company Limited | Automobile & Ancillaries | 4% |
| Nippon Life India Asset Management Ltd | Finance | 3.82% |
The top 10 holdings account for approximately 48.06% of the portfolio.
To see all holdings, visit the HSBC Focused Fund Direct Growth Plan page
The largest holding, ICICI Bank Limited, stands at 8.13%, which is meaningful but not extreme for a focused portfolio. The next few positions are also sizeable, but the weights begin to step down fairly quickly after the first two names, and the tenth holding is down to 3.82%.
That pattern suggests the portfolio is not driven by a single oversized position, yet the leading names are still likely to have greater influence on outcomes than the smaller holdings. With 48.06% of the portfolio in the top 10 and 29 holdings disclosed overall, the fund appears to combine concentration at the top with a reasonably long tail below it.
In our view, this structure may support active ideas across banks, finance, infrastructure, IT and consumer-linked businesses, but it also means stock-specific outcomes could matter more than they would in a broad index fund. Investors should expect that individual positions can shape returns more noticeably than in a more diversified equity scheme.
Source data date: as of 15 Sep 2026
Who should invest
This fund is better aligned with investors who can accept High Risk and stay invested through uneven stretches. The 3-year and 5-year returns show that the strategy has worked better over a longer horizon than over the past year, so a patient holding period matters more here than a short-term view.
It may suit investors who want a focused equity allocation and are comfortable with the possibility that returns can lag in shorter windows before recovering over time. The main trade-off is clear: you are taking more stock-specific concentration in exchange for the chance of stronger multi-year compounding than the benchmark has delivered.
Tax and exit load
| Holding period | Tax rate | Description |
|---|---|---|
| Units held less than 1 year | 20% | Short-term capital gains tax |
| Units held more than 1 year | 12.5% | Long-term capital gains tax |
Exit load
- If units are sold on or before 1 year, the exit load is 1% for the portion above 10% of units; the first 10% has no exit load.
- After 1 year, there is no exit load.
Source data date: as of 15 Sep 2026
Frequently asked questions
What is the current NAV of HSBC Focused Fund Direct Growth Plan?
The NAV is ₹28.9283 as of 15 Sep 2026.
What are the 1-year, 3-year and 5-year returns?
The fund’s returns are 6.72% over 1 year, 13.61% over 3 years and 12.06% over 5 years.
How does the fund compare with Nifty 50?
It has beaten Nifty 50 over 1 year, 3 years and 5 years on the figures available here. The gap is especially clear over the 3-year and 5-year periods.
How does it compare with the peer funds listed here?
Its 1-year return is below several peers, but its 3-year and 5-year numbers are still competitive on the available comparisons. The recent and longer-term pictures are not the same.
Is there a minimum SIP amount?
Yes. The minimum SIP amount is ₹500.
What are the fund’s risk profile, managers and exit load?
The scheme is tagged High Risk and is managed by Neelotpal Sahai and Mayank Chaturvedi. If units are sold on or before 1 year, the exit load is 1% for the portion above 10% of units, and there is no exit load after 1 year.
Bottom line
HSBC Focused Fund Direct Growth Plan has a mixed near-term profile but a stronger multi-year record, with 3-year and 5-year returns that sit comfortably above the benchmark. The peer set tells a similar story: the latest 1-year result is less impressive than several rivals, while the longer-run numbers remain competitive. The portfolio is concentrated enough for stock selection to matter, yet spread across 29 disclosed holdings, which makes it a focused but not single-bet style of equity exposure.
Published on 16 September 2026 at 4:12 PM IST
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RIA disclosure
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. This review is prepared by Uniapps Investment Adviser Pvt. Ltd. (earlier known as Uniapps Global Research Pvt. Ltd.) under SEBI Registered Investment Adviser registration INA000017639 for general informational purposes and is not personalized investment advice.