HSBC has successfully exploited the recent success of emerging market equities by attracting an impr...
HSBC has successfully exploited the recent success of emerging market equities by attracting an impressive $800m of new money to its India fund in the past four months.
The HSBC GIF Indian Equity Fund, launched in April 1996, has risen from $450m in October, when the group started actively promoting it, to its current assets under management of more than $1.2bn.
The Indian elections in April could spark another move upwards for the market, but the company has avoided over-promoting the fund to a wide intermediary audience.
"We are conscious we do not want India to be seen as another tech story, so we have been taking a long-term view as to how we promote the fund," said a spokesman. "A number of discretionary advisers and fund of funds have been buying into the fund on the basis of an asset allocation play.
"In general terms it is important that the industry takes a longer-term view to the type of products it promotes. This way we will regain investor confidence. Importantly, we have less chance of losing their confidence again by promoting short-term, marketing-driven investment ideas which over-promise."
The India fund"s investment adviser is Sanjiv Duggal.
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