{"id":874,"date":"2026-05-31T12:13:11","date_gmt":"2026-05-31T06:43:11","guid":{"rendered":"https:\/\/www.malharinvestments.com\/blog\/?p=874"},"modified":"2026-05-31T12:15:34","modified_gmt":"2026-05-31T06:45:34","slug":"hsbc-multi-cap-fund-review","status":"publish","type":"post","link":"https:\/\/www.malharinvestments.com\/blog\/hsbc-multi-cap-fund-review\/","title":{"rendered":"HSBC Multi Cap Fund Review 2026: Should You Add This Multi Cap Mutual Fund to Your Portfolio?"},"content":{"rendered":"

If you have been comparing equity mutual funds<\/a> lately, chances are the HSBC Multi Cap Fund has popped up on your radar. It is a relatively young scheme, but it has built a fair bit of buzz among Indian investors who want exposure to large, mid and small companies through a single fund. In this detailed review, I will walk you through what the HSBC Multi Cap Fund actually does, how it has performed, who it suits, and the practical points you should weigh before starting an SIP investment<\/a> or putting in a lump sum. The idea is simple: by the end of this read, you should be able to decide for yourself whether this fund belongs in your portfolio.<\/p>\n

Before we go deeper, a quick reality check. India’s mutual fund industry has grown into a serious force. According to the Association of Mutual Funds in India (AMFI)<\/a>, the total industry assets under management stood at roughly Rs 81.92 lakh crore as on 30 April 2026, and monthly SIP contributions touched a record of around Rs 32,000 crore in March 2026. So a lot of ordinary households are now investing in mutual funds in India, and picking the right fund matters more than ever.<\/p>\n

What is the HSBC Multi Cap Fund?<\/h2>\n

The HSBC Multi Cap Fund is an open ended equity mutual fund from HSBC Mutual Fund, one of the older foreign sponsored fund houses operating in India. The scheme was launched on 30 January 2023, which makes it a little over three years old at the time of writing. As the name suggests, it invests across the full range of market capitalisation, meaning it holds large cap, mid cap and small cap stocks together in one portfolio.<\/p>\n

Here are the basic facts you should keep handy. The fund is benchmarked against the NIFTY 500 Multicap 50:25:25 Total Return Index (TRI). The minimum SIP amount is just Rs 500, and you can begin a lump sum with around Rs 1,000 to Rs 5,000 depending on the platform you use. The fund is currently managed by Venugopal Manghat, who is the Chief Investment Officer for Equity at HSBC Mutual Fund, along with Mahesh Chhabria and Mayank Chaturvedi. The assets under management have grown to roughly Rs 5,000 crore to Rs 5,300 crore, which is healthy for a fund of this age. You can always check the live numbers on Value Research<\/a> or Moneycontrol<\/a>.<\/p>\n

Why the “multi cap” tag matters<\/h3>\n

A multi cap mutual fund is not just any equity fund that buys whatever it likes. Back in September 2020, the Securities and Exchange Board of India (SEBI) tightened the rules for this category. Today, a true multi cap fund must keep a minimum of 25 per cent each in large cap, mid cap and small cap stocks at all times. You can read the regulatory framework on the SEBI<\/a> website. This is exactly what separates a multi cap fund from a flexi cap fund, where the manager is free to lean entirely towards large caps if he wishes.<\/p>\n

How multi cap funds work, explained simply<\/h2>\n

Think of the Indian stock market<\/a> as a three storey building. The ground floor holds the large, established companies like Reliance, HDFC Bank or Infosys. These are stable but grow slowly. The middle floor has mid cap companies that are still expanding and can deliver faster growth, though with more ups and downs. The top floor has small cap companies, which are the riskiest but can multiply your money if you pick the right ones.<\/p>\n

A multi cap fund parks money on all three floors at the same time. The 25 per cent minimum rule forces the fund to always keep a meaningful stake in mid and small companies, so you are never fully missing out on the high growth segments. The remaining 25 per cent of the portfolio is flexible, which the fund manager can shift towards whichever segment looks more attractive. This blend is why many investors see multi cap funds<\/a> as a one stop equity solution for long term wealth creation<\/a>.<\/p>\n

HSBC Multi Cap Fund objective and strategy<\/h2>\n

The stated objective of the HSBC Multi Cap Fund is to generate long term capital growth from an actively managed portfolio of equity and equity related securities spread across market capitalisation. In plain language, the fund is trying to grow your wealth over many years by owning a basket of Indian companies of all sizes.<\/p>\n

What I find interesting about the approach is that the fund leans on a “Growth at a Reasonable Price” style. The managers look for companies with solid growth prospects but try to avoid overpaying for them. The fund house itself describes the strategy as the power of investing across all three segments rather than betting on just one. You can see the official scheme details on the HSBC Mutual Fund<\/a> site.<\/p>\n

Portfolio allocation and market capitalisation breakup<\/h2>\n

Because of the SEBI mandate, the portfolio allocation always respects the 25 per cent floor for each segment. Beyond that, the fund tilts based on where the managers see opportunity. In its recent portfolio, financial services has been the dominant sector, which is fairly common for diversified Indian equity funds<\/a>. Top holdings have included names such as Reliance Industries, State Bank of India, HDFC Bank, Federal Bank and a few mid and small cap industrial names.<\/p>\n

A quick word on what the different market capitalisation buckets bring to the table:<\/p>\n