HSBC MF’s new Export Opportunities Fund focuses on data rather than narratives to harness a largely ignored theme. Contrary to popular narratives of global slowdown, developed economies’ data suggests that they are coming out of a slump rather than getting into one.
Indian exporters are also corroborating this upbeat sentiment and with GoI’s big push on merchandise exports in the backdrop of new geopolitical dynamics, there are ample investment opportunities in the exports space.
The fund’s 2 filters – exports > 20% of sales and mcap > 2000 crs has yielded an investible universe of 310 stocks – of which85% are in the small and mid caps spaces. The portfolio will be run on a multicap format with 50% in large caps and 50% in mid/small caps.
IT services is showing green shoots on the back of commencement of interest cut cycles in developed markets. Abhishek will have a good mix of large, mid and small cap IT services stocks in his portfolio.
Abhishek is bullish on chemicals companies that are moving up the value chain from bulk to specialty and are executing capex plans to enable this.
India’s defense exports have doubled to $2.5 Bn and are set to double again to $5 bn by end of this decade.
Leaders in the Indian auto ancillaries space are no longer dealing with larger ancillary companies globally – they now work directly with global OEMs, which opens up many more opportunities for them.
EMS, building materials, new energy components are just some of the newer areas Indian companies are now making their mark in at the global level.
Expect the new portfolio to have meaningful exposures to IT services, pharma, chemicals, auto, capital goods, new energy and EMS sectors.