HSBC Midcap Equity - Betting on banks :: Business Line

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The fund has completely re-jigged its holdings from late 2009 and has built a totally new portfolio with a new set of stocks in the basket.

Midcap stocks have delivered good returns in the past one year, outpacing the bluechip indices. Mid-cap stocks-focussed equity funds have registered impressive returns.

HSBC Midcap Equity has outperformed its benchmark, BSE Mid-cap, by delivering 25.7 per cent returns, while its benchmark managed only 17.1 per cent in the past one year. However, the fund has underperformed its benchmark in the three- and five-year timeframes.

Sector trends & stock moves

The fund has completely re-jigged its holdings from late 2009 and has built a totally new portfolio with a new set of stocks in the basket.

It held large-cap stocks such as LIC Housing Finance, Crompton Greaves, Lupin and Bank of Baroda which it exited later. However, the fund has minor holdings in large-cap stocks such as Gujarat Mineral Development Corporation and Apollo Tyres.

The fund has been consistently holding 32-38 stocks over the last three years.

Banks and Consumer non-durables continue to be the most preferred sectors for the fund in the past two years. It holds 20 per cent of the portfolio in Banks and 9 per cent in the Consumer non-durables sector.

Among banks, the fund has been maintaining interest in stocks such as Jammu and Kashmir Bank, Dena Bank, State Bank of Bikaner and Jaipur and State Bank of Travancore over the past three years.

The Jammu and Kashmir Bank stock has delivered 76 per cent returns and Dena Bank has registered 69 per cent returns in the last one year.

In the past one year, the fund exited the Automobiles, Construction, and Power sectors.

Cement sector is one of the fund’s favoured ones in recent times.

The fund has holdings in niche sectors such as Pesticides and Minerals.

PI Industries, Gujarat Mineral Development Corporation, Gateway Distriparks and Prime Focus are the stocks in which the fund has holdings.