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NEW DELHI: HSBC Mutual Fund has filed an offer document with the Securities and Exchange Board of India (Sebi) to launch an open-ended thematic equity fund - ‘HSBC I.D.E.A Equity Fund’ (The Innovator, Disruptor, Adaptor and Enabler Equity Fund).
The scheme aims to provide long-term capital appreciation by investing in equity and equity-related securities of companies in the space of innovation, disruption, adaption to new business models, and becoming enablers to facilitate growth & productivity in businesses.
The scheme information document explained the stock selection process based on each factor mentioned in the name of the fund –
1. Innovators: The potential companies would include those which are deemed to be innovators by virtue of their existing product or service, and companies with innovation orientation whose potential product or service can bring in innovation advantage.
2. Disruptors: Would include companies which are seen as disruptors by virtue of their existing product or service, and companies whose product or service is assessed to disrupt or rewrite models in the future.
3. Enablers: This would include companies that are already offering the product or service and whose product or service is expected to continue to enable businesses in the future.
4. Adaptors: Instead of getting disrupted they have a credible strategy to mitigate the adverse impact and grow. These entities are charting a migration from the old economy to the new age with minimal disruption or cannibalization to their existing revenues.
The announcement of the New Fund Offer (NFO) is subject to Sebi’s approval. The scheme will be benchmarked to Nifty 500 TRI. The minimum application amount is ₹5,000 and in multiples of ₹1 thereafter.
