Fund to watch: HSBC FTSE-All Share Index Fund

The aim of the HSBC FTSE-All Share Index fund, which has recently celebrated its 25th anniversary, is to provide long-term capital growth by matching the return of the FTSE All- Share Index.

Lead manager Bijan Seghatchian does this by investing in companies that make up the index, which is why there are just fewer than 500 holdings, according to the latest fund factsheet.

As a result, the 10 largest holdings account for around 30% of assets under management and include a string of household names, such as HSBC Holdings (5.53%), BP (3.83%), British American Tobacco (2.99%), Vodafone Group (2.74%), Diageo (2.04%) and Barclays (1.87%).

Obviously, the industry composition is in line with the index, meaning that Financials has the largest share of 25.32%, followed by Consumer Goods on 13.99%.

Oil and Gas is the next largest holding with 12.33%, followed by Consumer Services on 11.45%, after which there is a host of sectors, which are each worth less than 10%, including Technology, Health Care, Telecommunications and Utilities.

Patrick Connolly, a certified financial planner at Chase de Vere, is a fan. "It gives investors broad exposure to the UK stockmarket," he says. "It uses full replication of stocks and so should accurately track the FTSE All Share Index and has competitive charges."

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.