Hsbc mutual fund common application form equity with kim

701 views
619 views

Published on

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
701
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
10
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Hsbc mutual fund common application form equity with kim

  1. 1. Common Key Information Memorandum for Equity SchemesHSBC Equity Fund (HEF) Continuous Offer of Units at NAV based pricesAn open-ended diversified Equity Scheme This Common Key Information Memorandum (KIM) sets forthHSBC India Opportunities Fund (HIOF)An open-ended flexi-cap Equity Scheme the information, which a prospective investor ought to know before investing. For further details of the Scheme(s) / MutualHSBC Midcap Equity Fund (HMEF) Fund, due diligence certificate by the AMC, Key Personnel,An open-ended diversified Equity Scheme investors’ rights & services, risk factors, penalties & pendingHSBC Progressive Themes Fund (HPTF) litigations etc. investors should, before investment, refer toAn open-ended flexi-theme Equity Scheme the Combined Scheme Information Document, Statement of Additional Information and Addenda thereto available free ofHSBC Dynamic Fund (HDF)An open-ended Scheme cost at any of the Investor Service Centres or distributors or from the website of the AMC, www.assetmanagement.HSBC Tax Saver Equity Fund (HTSF)An open-ended Equity Linked Savings Scheme (ELSS) hsbc.com/in. The particulars of the Scheme(s) have been prepared in accordance with the Securities and ExchangeHSBC Emerging Markets Fund (HEMF) Board of India (Mutual Funds) Regulations, 1996, as amendedAn open-ended Scheme till date and filed with Securities and Exchange Board ofHSBC Unique Opportunities Fund (HUOF) India (SEBI). The Units being offered for public subscriptionAn open-ended Equity Scheme have not been approved or disapproved by SEBI nor hasHSBC Small Cap Fund (HSCF) SEBI certified the accuracy or adequacy of this KIM.An open-ended Equity SchemeHSBC Brazil Fund (HBF) This Common Key Information Memorandum is datedAn open-ended Fund of Funds Scheme June 28, 2011.Sponsor: Trustee: Asset Management Company:HSBC Securities and Capital Markets Board of Trustees HSBC Asset Management (India) Private Limited(India) Private Limited Office: 314, D. N. Road, Corp. & Regd. Office: 314, D. N. Road,Regd. Office: 52/60, Mahatma Gandhi Road, Fort, Mumbai 400 001, India Fort, Mumbai 400 001, IndiaFort, Mumbai 400 001, India. Visit us at : www.assetmanagement.hsbc.com/in E mail id: hsbcmf@hsbc.co.in
  2. 2. COMPARISON BETWEEN THE SCHEMES Scheme Investment Objective Asset Allocation Pattern Product Differentiation Number AUM as Name of Folios on 31 as on May, 31 May, 2011 (Rs. 2011 in crores)HSBC Equity To generate long-term capital growth Instruments Indicative Allocation Risk HEF seeks to invest primarily 82,853 902.12Fund from an actively managed portfolio of (% of Net Assets) Profile into large cap Indian equity equity and equity related securities. stocks which makes the Minimum Maximum Scheme different from other Equities & Equity related 65% 100% High existing open-ended equity securities Schemes of HSBC Mutual Fund. Debt securities & Money Market 0% 35% Low to instruments (including Cash & Medium Cash equivalents) If the Scheme decides to invest in securitised debt, it is the intention of the Investment Manager that such investments will not normally exceed 30% of the corpus of the Scheme and if the Scheme decides to invest in ADRs/GDRs issued by Indian Companies and foreign securities in line with SEBI stipulation, it is the intention of the Investment Manager that such investments will not, normally exceed 30% of the assets of the Scheme. The scheme shall have derivative exposure as per the SEBI Guidelines issued from time to time.HSBC India To seek long term capital growth Instruments Indicative Allocation Risk HIOF seeks to invest primarily 21,089 179.31Opportunities through investments across all market (% of Net Assets) Profile into Indian equity stocks withFund capitalisations, including small, mid and no market capitalisation or large cap stocks. The fund aims to be Minimum Maximum other biases which makes the predominantly invested in equity and Equities & Equity related securities 65% 100% High Scheme different from other equity related securities. However, it existing open-ended equity could move a significant portion of its Schemes of HSBC Mutual Debt securities & Money Market 0% 35% Low to assets towards fixed income securities Fund. instruments (including Cash & Medium if the fund manager becomes negative Cash equivalents) on equity markets. If the Scheme decides to invest in securitised debt, it is the intention of the Investment Manager that such investments will not normally exceed 30% of the corpus of the Scheme and if the Scheme decides to invest in ADRs/GDRs issued by Indian Companies and foreign securities in line with SEBI stipulation, it is the intention of the Investment Manager that such investments will not, normally exceed 30% of the assets of the Scheme. The scheme shall have derivative exposure as per the SEBI Guidelines issued from time to time.HSBC To generate long term capital growth Instruments Indicative Allocation Risk HPTF is a thematic equity 65,277 211.56Progressive from an actively managed portfolio of (% of Net Assets) Profile Scheme which uses a flexi-Themes equity and equity related securities by theme approach in selection of investing primarily in sectors, areas Minimum Maximum areas in which to invest.Fund and themes that play an important Equities & Equity related 65% 100% High role in, and / or benefit from, Indias securities progress, reform process and economic Debt securities & Money Market 0% 35% Low to development. instruments (including Cash & Medium Cash equivalents) If the Scheme decides to invest in securitised debt, it is the intention of the Investment Manager that such investments will not normally exceed 30% of the corpus of the Scheme and if the Scheme decides to invest in ADRs/GDRs issued by Indian Companies and foreign securities in line with SEBI stipulation, it is the intention of the Investment Manager that such investments will not, normally exceed 30% of the assets of the Scheme. The scheme shall have derivative exposure as per the SEBI Guidelines issued from time to time.HSBC To generate long term capital growth Instruments Indicative Allocation Risk HMEF seeks to invest primarily 23,378 134.19Midcap from an actively managed portfolio of (% of Net Assets) Profile into mid cap Indian equityEquity Fund equity and equity related securities stocks which makes the primarily being Midcap stocks. Minimum Maximum Scheme different from other However, it could move a portion of its Equities & equity related securities 65% 100% High existing open-ended equity assets towards fixed income securities of companies whose market Schemes of HSBC Mutual if the fund manager becomes negative capitalization is Rs. 75 crores or Fund. on the Indian equity markets. more but does not exceed the market capitalization of the largest constituent of the BSE Midcap Index at the point of investment on a full market capitalisation basis Other equities & equity related 0% 35% High securities Debt and money market 0% 35% Low to instruments (including cash and Medium money at call) Under normal circumstances, the Scheme shall invest at least 65% of the net assets under the Scheme in Equity and Equity related Securities which fall within the definition of midcap companies. If the Scheme decides to invest in securitised debt, it is the intention of the Investment Manager that such investments will not normally exceed 30% of the corpus of the Scheme and if the Scheme decides to invest in ADRs/ GDRs issued by Indian Companies and foreign securities in line with SEBI stipulation, it is the intention of the Investment Manager that such investments will not, normally exceed 30% of the assets of the Scheme. The scheme shall have derivative exposure as per the SEBI Guidelines issued from time to time. 2
  3. 3. Scheme Investment Objective Asset Allocation Pattern Product Differentiation Number AUM as Name of Folios on 31 as on May, 31 May, 2011 (Rs. 2011 in crores)HSBC To provide long term capital appreciation Instruments Indicative Allocation Risk HDF seeks to normally invest 27,910 104.75Dynamic by allocating funds in equity and equity in equity, with an aim to (% of Net Assets) ProfileFund related instruments. It also has the capitalise on the potential flexibility to move, entirely if required, Minimum Maximum upside in equity markets but into debt instruments in times that can react quickly to a negative the view on equity markets seems Equities & Equity related 0% 100% High market by moving 100 per instruments negative. cent of its assets into debt Debt & money market 0% 100% Low to instruments, with an aim to instruments Medium limit the downside risk, in the event that the fund manager is If the Scheme decides to invest in securitised debt, it is the intention bearish on the market. of the Investment Manager that such investments will not normally exceed 30% of the corpus of the Scheme and if the Scheme decides to invest in ADRs/GDRs and foreign securities in line with SEBI stipulation, it is the intention of the Investment Manager that such investments will not, normally exceed 50% of the assets of the Scheme. No investments shall be made in foreign securitised debt. The net notional exposure to derivative in HDF shall not be more than 75% of the net assets. Investments in derivatives would be in accordance with the SEBI Regulations.HSBC To provide long term capital appreciation Instruments Indicative Allocation Risk HEMF is the only overseas 8,075 56.69Emerging by investing in India and in the emerging investing Scheme which (% of Net Assets) ProfileMarkets markets, in equity and equity related invests into units of Overseas instruments, share classes and units/ Minimum Maximum Mutual Funds.Fund securities issued by overseas mutual funds or unit trusts. The fund may also Units/securities issued by 80% 100% Medium overseas mutual funds or unit to High invest a limited proportion in debt and trusts of emerging markets* money market instruments. Domestic Debt, Money Market 0% 20% Low to instruments (including CBLO Medium & reverse repo) and units of domestic mutual funds. * Currently HSBC GEM Equity Fund is envisaged to be used for investing in the emerging markets however, HEMF could use any other global fund of HSBC Group to invest in emerging markets. If the Scheme decides to invest in securitised debt, it is the intention of the Investment Manager that such investments will not normally exceed 10% of the corpus of the Scheme. HEMF will not invest in underlying global scheme which invests more than 10% of their net assets in unlisted equity shares or equity related instruments.HSBC Tax To provide long term capital appreciation Instruments Indicative Allocation Risk HTSF is the only Scheme 81,574 237.11Saver Equity by investing in a diversified portfolio of (% of Net Assets) Profile launched as an EquityFund equity & equity related instruments Linked Savings Scheme as of companies across various sectors Minimum Maximum per the Notifications dated and industries, with no capitalization Equities & Equity related 80% 100% High 3 November, 2005 and 13 bias. The Fund may also invest in fixed securities D e c e m b e r, 2 0 0 5 i s s u e d income securities. Debt, Money Market 0% 20% Low to by the Department of instruments and Cash Medium Economic Affairs, Ministry of Finance Government of If the Scheme decides to invest in securitised debt, it is the intention India or such other Scheme of the Investment Manager that such investments will not normally as the Central Government exceed 20% of the corpus of the Scheme and if the Scheme decides may, by notification in the to invest in ADRs/GDRs issued by Indian Companies, it is the intention Official Gazette, specify of the Investment Manager that such investments will not, normally under section 80C of the exceed 20% of the assets of the Scheme. If the Scheme decides to Income Tax Act, 1961. The invest in foreign securities, it is the intention of the Investment Manager investors in the Scheme are that such investments will not normally exceed 20% of the corpus of entitled to deductions of the the Scheme. The exposure to derivative instruments shall be as per the amount invested in units of SEBI and applicable Guidelines issued from time to time. the Scheme, subject to a maximum of Rs. 1,00,000, under and in terms of Section 80C (2) (xiii) of the Income Tax Act, 1961.HSBC To provide long-term capital growth Instruments Indicative Allocation Risk HUOF seeks to invest into 23,576 87.42Unique from a diversified portfolio of equity stocks of companies facing (% of Net Assets) ProfileOpportunities and equity related instruments. The "out of ordinary" conditions focus would be to invest in stocks Minimum Maximum but have potential for longFund of companies facing "out-of-ordinary" term growth. The Scheme conditions. Equities & Equity related 65% 100% High aims to invest in companies instruments that have strong fundamentals Debt, Money Market 0% 35% Low to and possess growth potential instruments (including Cash & Medium but are either temporarily Cash equivalents) undervalued or are likely to If the Scheme decides to invest in securitised debt, it is the intention benefit from unlocking of value of the Investment Manager that such investments will not normally from the culmination of these exceed 35% of the corpus of the Scheme and if the Scheme decides out-of-ordinary situations that to invest in ADRs/GDRs issued by Indian Companies, it is the intention are usually non-recurring and of the Investment Manager that such investments will not, normally outside the ordinary course exceed 50% of the assets of the Scheme. The exposure to derivative of business instruments shall be as per the SEBI Guidelines issued from time to time. 3
  4. 4. Scheme Investment Objective Asset Allocation Pattern Product Differentiation Number AUM as Name of Folios on 31 as on May, 31 May, 2011 (Rs. 2011 in crores) HSBC Small To provide long-term capital appreciation Instruments Indicative Allocation Risk HSCF seeks to invest primarily 7,984 30.86 Cap Fund primarily from a diversified portfolio of into small cap Indian equity (% of Net Assets) Profile equity and equity related instruments stocks as defined under its of small cap companies. Minimum Maximum asset allocation. Equity and equity related 65% 100% High instruments of Small Cap Companies* Equity and equity related 0% 35% High instruments of other than Small Cap Companies* Debt and money market 0% 35% Low to instruments Medium * Small Cap Companies are defined as the companies with the market capitalization which is 1) lower than or equal to the market capitalization of the stock in the BSE Small Cap Index with the largest market capitalization and 2) higher than or equal to the market capitalization of the stock in the BSE Small Cap Index with the smallest market capitalization. If the Scheme decides to invest in securitised debt, it is the intention of the Investment Manager that such investments will not normally exceed 35% of the corpus of the Scheme and if the Scheme decides to invest in ADRs/GDRs and foreign securities in line with SEBI stipulation, it is the intention of the Investment Manager that such investments will not, normally exceed 35% of the assets of the Scheme, however, such investments will be made provided they meet the Investment Objective of the Scheme. No investments shall be made in foreign securitized debt. The net notional exposure to derivative in HSCF shall not be more than 75% of the net assets. Investments in derivatives would be in accordance with the SEBI Regulations. HSBC Brazil To provide long term capital appreciation Instruments Indicative Allocation Risk HBF will invest into HGIF Brazil 6,646 312.55 Fund by investing predominantly in units/ Equity Fund, which in turn will (% of Net Assets) Profile shares of HSBC Global Investment invest into stocks listed in the Funds (HGIF) Brazil Equity Fund. The Minimum Maximum Brazilian equity markets. It is Scheme may, at the discretion of the Units/shares of HGIF Brazil 95% 100% Medium different from HSBC Emerging Investment Manager, also invest in the Equity Fund to High Markets Fund (HEMF), an units of other similar overseas mutual existing open-ended overseas fund schemes, which may constitute Money Market instruments 0% 5% Low to investing scheme which a significant part of its corpus. The (including CBLO & reverse repo) Medium invests into equities of various Scheme may also invest a certain and / or units of liquid mutual fund countries which are classified proportion of its corpus in money schemes as emerging markets. market instruments and/or units of The Scheme will not invest in the underlying scheme(s) which invest liquid mutual fund schemes, in order more than 10% of their net assets in unlisted equity shares or equity to meet liquidity requirements from related instruments. time to time. Features HSBC EQUITY FUND HSBC INDIA OPPORTUNITIES FUND HSBC PROGRESSIVE THEMES FUNDType An open-ended diversified Equity Scheme An open-ended flexi-cap Equity Scheme An open-ended flexi-theme Equity SchemeInvestment Objective To generate long-term capital growth from an actively To seek long term capital growth through investments To generate long term capital growth from an actively managed portfolio of equity and equity related securities. across all market capitalisations, including small, mid managed portfolio of equity and equity related securities by and large cap stocks. The fund aims to be predominantly investing primarily in sectors, areas and themes that play invested in equity and equity related securities. However, it an important role in, and / or benefit from, Indias progress, could move a significant portion of its assets towards fixed reform process and economic development. income securities if the fund manager becomes negative on equity markets.Date of Inception 10 December, 2002 24 February, 2004 23 February, 2006Asset Allocation Please refer to page 2 Please refer to page 2 Please refer to page 2PatternInvestment Strategy The aim of the HSBC Equity Fund is to deliver above- The aim of the HSBC India Opportunities Fund is to seek The aim of the HSBC Progressive Themes Fund is to benchmark returns by providing long-term capital growth aggressive growth and deliver above-benchmark returns by deliver above benchmark returns by providing long-term from an actively managed portfolio, mainly comprising providing long-term capital growth from an actively managed capital growth from an actively managed portfolio, primarily companies registered in and/or listed on a regulated market portfolio, mainly comprising a judicious mix of small, mid comprising of stocks of companies in areas/sectors that of India. Income is not a primary consideration in the and large cap stocks. Income is not a primary consideration play an important role in Indias economic development. The investment policies of the HSBC Equity Fund. The Scheme in the investment policies of the HSBC India Opportunities sectors and areas will change with changes in the economy. will invest across a range of market capitalisations with a Fund. The Scheme aims to be predominantly invested in preference for medium and large companies. equity and equity related securities. However, it could move a significant portion of its assets towards fixed income securities if the fund becomes negative on equity markets.Risk Profile Mutual Fund units involve investment risks including the possible loss of principal. Please read Combined SID carefully for details on risk factors before investment. Please refer to page 10 for the summarized scheme specific risk factors under "Common Features for all Schemes".Risk Mitigation Risks & Description Risk Mitigants / Management StrategyFactors Market Risk : Value of holdings may fall as a result of market movements Investment approach supported by comprehensive research Currency Risk : Risk on account of exchange rate fluctuations Investment manager could use (there is no obligation) derivatives to hedge currency risk Country Risk : Risk on account of exposure to a single country Investment universe is carefully selected to include high quality businesses Liquidity Risk : High impact costs Robust process for periodic monitoring of liquidity Concentration Risk : Risk on account of high exposure to a risk class Investment across market capitalization spectrum and industries/sectors Legal / Tax / Regulatory Risk : Risk on account of changes in regulations This risk is something dependent upon a future event and will be clearly communicated to the investor Event Risk : Price risk as a result of company or sector specific event Usage of derivatives : Hedge portfolios if required, in case of predictable events Mitigated as instruments are normally exchange traded with readily available data Valuation Risk : Risk on account of incorrect valuation Investment approach supported by comprehensive research 4
  5. 5. Features HSBC EQUITY FUND HSBC INDIA OPPORTUNITIES FUND HSBC PROGRESSIVE THEMES FUNDPlan / Options Options : 1) Growth 2) DividendSub-Options Dividend Payout and Dividend Reinvestment OptionApplicable NAV Where the valid application is received upto 3.00 p.m. with a local cheque or demand draft payable at par at the place where it is received, the closing NAV offor ongoing the day of receipt of application will be applicable.Subscriptions Where the valid application is received after 3.00 p.m. with a local cheque or demand draft payable at par at the place where it is received, the closing NAV ofand Redemptions the next Business Day will be applicable.(including switch ins Where the valid application is received with an outstation cheque or demand draft which is not payable on par at the place where it is received, the closing NAV/ switch outs) of day on which the cheque or demand draft is credited will be applicable.Load Structure Entry Load* : Nil. Exit Load : 1% if redeemed / switched out within 1 year from the date of investment; otherwise Nil.(including SIP/STP # No load in case of switches between Equity Schemes. The applicable exit loads (if any) at the time of allotment of the Schemes of HSBC Mutual Fund shall also be charged onwhere applicable)# investments made by all investors. No exit load shall be charged for units allotted under bonus/dividend reinvestment option. The exit loads set forth above is subject to change at the discretion of the AMC and such changes shall be implemented prospectively. Please refer "Load Structure" under Common Features of all Schemes on page 11. *In terms of SEBI circular no. SEBI/IMD/CIR No.4/ 168230/09 dated June 30, 2009, no entry load will be charged by the Scheme to the investor effective August 1, 2009. Upfront commission shall be paid directly by the investor to the AMFI registered Distributors based on the investors assessment of various factors including the service rendered by the distributors.Waiver of load for Pursuant to SEBI Circular No. SEBI/IMD/CIR No. 4/168230/09 dated June 30, 2009, no Entry Load will be charged for all Mutual Fund Schemes.Direct Application Therefore, the procedure for Waiver of Load for Direct Applications is no longer applicable.Minimum Application / Purchase : Rs. 10,000/- and multiples of Re. 1/- thereafter Additional Purchase : Rs. 1,000/- and multiples of Re. 1/- thereafterRepurchase / Redemption : Rs. 1,000/- and multiples of Re. 1/- thereafterAdditional Amount+ + The requirement of minimum subscription amount will not be applicable in case of SIP for scheme(s) where SIP facility is available. Refer to the Combined SID/Addendums thereto for further details.Despatch of Within 10 working days of the receipt of the valid redemption request at the Official Points of Acceptance of Transactions of the Registrar and the AMC.Redemption Request The Fund would endeavour to dispatch redemption proceeds within 3 Business Days under normal circumstances on receiving a valid request.Fund Manager Jitendra Sriram Jitendra Sriram Dhiraj Sachdev & Jitendra Sriram Niren Parekh and Gaurav Mehrotra will be the dedicated Fund Manager for making overseas investments as permitted under the Regulations, guidelines and circulars issued from time to time.Benchmark Index BSE 200 BSE 500 BSE 200Dividend Policy Declaration of dividend is subject to the availability of distributable surplus. Such dividends if declared will be paid under normal circumstances, only to those Unitholders who have opted for Dividend sub-options with specified sub-options. Further, no exit load shall be charged for units allotted under dividend reinvestment option. However, it must be distinctly understood that the actual declaration of dividends under the Scheme and the frequency thereof will, inter alia, depend upon the distributable surplus of the Scheme. The Trustees reserve the right of dividend declaration and to change the frequency, date of declaration and the decision of the Trustees in this regard shall be final. There is no assurance or guarantee to unit holders as to the rate of dividend distribution nor that the dividend will be regularly paid. The dividend that may be paid out of the net surplus of the Scheme will be paid only to those Unitholders whose names appear in the register of Unitholders on the notified record date. The dividend will be at such rate as may be decided by the AMC in consultation with the Trustees.Performance of the Scheme Returns Benchmark Returns Scheme Returns Benchmark Returns Scheme Returns Benchmark ReturnsScheme* Last 1 year 8.65% 6.94% Last 1 year 10.77% 6.66% Last 1 year -9.00% 6.94% Compounded Last 3 years 2.91% 4.13% Last 3 years 1.89% 3.76% Last 3 years -8.49% 4.13% Annualised Last 5 years 12.90% 12.27% Last 5 years 9.01% 11.70% Last 5 years 2.43% 12.27% Returns ^ (As on 31 Since Inception 31.53% 23.49% Since Inception 18.69% 17.40% Since Inception 2.72% 10.79% May, 2011) Absolute Returns Absolute Returns Absolute Returns HEF Growth BSE 200 HIOF Growth BSE 500 HPTF - Growth BSE 200 92.87 120% 100% 100% 96.38 92.87 80% 100% 58.42 80% 60% 80% 62.24 60% 55.85 40% 30.24 24.13 60% 40% 20% 10.42 8.15 0.79 11.40 10.20 40% 24.25 23.92 24.13 16.18 16.00 9.71 20% 10.20 0% 20% 11.75 7.48 -2.23 -2.04 -8.15 -2.57 -1.40 3.94 0% -20% -1.40 0% -20% -10.05 -20% Apr. 10 - Apr. 09 - Apr. 08 - Apr. 07 - Apr. 06 - Apr. 10 - Apr. 09 - Apr. 08 - Apr. 07 - Apr. 06 - Apr. 10 - Apr. 09 - Apr. 08 - Apr. 07 - Apr. 06 - Mar. 11 Mar. 10 Mar. 09 Mar. 08 Mar. 07 Mar. 11 Mar. 10 Mar. 09 Mar. 08 Mar. 07 Mar. 11 Mar. 10 Mar. 09 Mar. 08 Mar. 07 *Past performance may or may not be sustained in the future. ^ Returns for 1 year & above are Compounded Annualised. Calculations are based on Growth Option NAVs. Since inception returns are calculated on Rs. 10 invested at inception.Recurring Expenses Actual Expenses for the previous financial year ended March 31, 2011 Total Expenses (Rs.) : 230,686,455.73 Total Expenses (Rs.) : 54,591,807.81 Tota l Expenses (Rs.) : 73,970,431.57 % to Net Assets : 2.01 % to Net Assets : 2.36 % to Net Assets : 2.33 First Rs. 100 crores % of the average daily net assets : 2.50 Next Rs. 300 crores % of the average daily net assets : 2.25 Next Rs. 300 crores % of the average daily net assets : 2.00 Balance : 1.75 Features HSBC MIDCAP EQUITY FUND HSBC DYNAMIC FUND HSBC EMERGING MARKETS FUNDType An open-ended diversified equity Scheme An open-ended Scheme An open-ended SchemeInvestment To generate long term capital growth from an actively To provide long term capital appreciation by allocating To provide long term capital appreciation by investing inObjective managed portfolio of equity and equity related funds in equity and equity related instruments. It also India and in the emerging markets, in equity and equity securities primarily being Midcap stocks. However, has the flexibility to move, entirely if required, into related instruments, share classes and units/securities it could move a portion of its assets towards fixed debt instruments in times that the view on equity issued by overseas mutual funds or unit trusts. The income securities if the fund manager becomes markets seems negative. fund may also invest a limited proportion in debt and negative on the Indian equity markets. money market instruments.Date of Inception 19 May, 2005 24 September, 2007 17 March, 2008Asset Allocation Please refer to page 2 Please refer to page 3 Please refer to page 3Pattern 5
  6. 6. Features HSBC MIDCAP EQUITY FUND HSBC DYNAMIC FUND HSBC EMERGING MARKETS FUNDInvestment Strategy The aim of the HSBC Midcap Equity Fund is to deliver The Scheme has the flexibility to allocate assets The aim of the HSBC Emerging Markets Fund is above-benchmark returns by providing long-term to both equity and debt instruments. It will hold a to provide long term capital appreciation from an capital growth from an actively managed portfolio, mix of securities-primarily equity and equity related actively managed portfolio, primarily comprising of a primarily comprising of midcap stocks. Income is not instruments. This allocation will be steadily monitored mix of small, mid and large cap stocks. Income is not a primary consideration in the investment policies of and updated as and when the market movements a primary consideration in the investment policies of the HSBC Midcap Equity Fund. The Scheme aims demand it, a switch would be made. This product the HSBC Emerging Markets Fund. The Scheme aims to be predominantly invested in midcap equity and offers a lower risk alternative to pure equity offerings to be predominantly invested in equity and equity equity related securities and also invest in small cap as it has the flexibility to move, entirely if required, related securities. The Fund may also invest in fixed equity and equity related securities. However, it could into debt instruments in times that the view on equity income securities. HEMF may invest in the Emerging move a portion of its assets towards fixed income markets seems negative. The relative balance of Markets through overseas funds or overseas equity securities if the fund becomes cautious or negative these securities can be periodically changed to take and equity related securities share classes / Units of on equity markets. advantage of phases in the economic cycle. The fund equity Fund as permitted by SEBI. HEMF proposes to would switch over from one asset-class combination invest in the overseas market by investing in units / to another, looking towards more aggressive growth securities issued by overseas mutual funds managed oriented stocks when the market is bullish and vice by HSBC globally, for example HSBC GEM Equity Fund versa. Thus, the scheme endeavours to achieve (GEM) etc. The Fund may undertake currency hedge the ideal asset allocation to make the most of the to protect the investors from the risk associated with markets and save opportunity costs for the investor. movement in currency markets. The fund will endeavour to provide long-term growth of principal and income. Thus, it aims to perform even in a distressed market scenario.Risk Profile Mutual Fund units involve investment risks including the possible loss of principal. Please read the Combined SID carefully for details on risk factors before investment. Please refer to page 10 for the summarized scheme specific risk factors under "Common Features for all Schemes"Risk Mitigation Risks & Description Risk Mitigants / Management StrategyFactors Market Risk : Value of holdings may fall as a result of market movements Investment approach supported by comprehensive research Currency Risk : Risk on account of exchange rate fluctuations Investment manager could use (there is no obligation) derivatives to hedge currency risk Country Risk : Risk on account of exposure to a single country Investment universe is carefully selected to include high quality businesses Liquidity Risk : High impact costs Robust process for periodic monitoring of liquidity Concentration Risk : Risk on account of high exposure to a risk class Investment across market capitalization spectrum and industries/sectors Legal / Tax / Regulatory Risk : Risk on account of changes in regulations This risk is something dependent upon a future event and will be clearly communicated to the investor Event Risk : Price risk as a result of company or sector specific event Usage of derivatives : Hedge portfolios if required, in case of predictable events Mitigated as instruments are normally exchange traded with readily available data Valuation Risk : Risk on account of incorrect valuation Investment approach supported by comprehensive researchPlan / Options Options : 1) Growth 2) DividendSub-Options Dividend Payout and Dividend Reinvestment OptionApplicable NAV Where the valid application is received upto 3.00 p.m. with a local cheque or demand draft payable at par at the place where it is received, the closing NAV offor ongoing the day of receipt of application will be applicable.Subscriptions Where the valid application is received after 3.00 p.m. with a local cheque or demand draft payable at par at the place where it is received, the closing NAV ofand Redemptions the next Business Day will be applicable.(including switch Where the valid application is received with an outstation cheque or demand draft which is not payable on par at the place where it is received, the closing NAVins / switch outs) of day on which the cheque or demand draft is credited will be applicable.Load Structure Entry Load* : Nil.(including SIP/STP Exit Load : 1% if redeemed / switched out within 1 year from the date of investment; otherwise Nil.where applicable)# # No load in case of switches between Equity Schemes. The applicable exit loads (if any) at the time of allotment of the Schemes of HSBC Mutual Fund shall also be charged on investments made by all investors. No exit load shall be charged for units allotted under bonus/dividend reinvestment option. The exit loads set forth above is subject to change at the discretion of the AMC and such changes shall be implemented prospectively. Please refer "Load Structure" under Common Features of all Schemes on page 11. *In terms of SEBI circular no. SEBI/IMD/CIR No.4/ 168230/09 dated June 30, 2009, no entry load will be charged by the Scheme to the investor effective August 1, 2009. Upfront commission shall be paid directly by the investor to the AMFI registered Distributors based on the investors assessment of various factors including the service rendered by the distributors.Waiver of load for Pursuant to SEBI Circular No. SEBI/IMD/CIR No. 4/168230/09 dated June 30, 2009, no Entry Load will be charged for all Mutual Fund Schemes.Direct Application Therefore, the procedure for Waiver of Load for Direct Applications is no longer applicable.Minimum Purchase : Rs. 10,000/- and multiples of Re. 1/- thereafter Additional Purchase : Rs. 1,000/- and multiples of Re. 1/- thereafterApplication / Repurchase : Rs. 1,000/- and multiples of Re. 1/- thereafterRepurchase / + The requirement of minimum subscription amount will not be applicable in case of SIP for scheme(s) where SIP facility is available. Refer to the Combined SID/Additional Amount+ Addendums thereto for further details.Despatch of Within 10 working days of the receipt of the valid redemption request at the Official Points of Acceptance of Transactions of the Registrar and the AMC.Redemption Request The Fund would endeavour to dispatch redemption proceeds within 3 Business Days under normal The Fund would endeavour to dispatch redemption circumstances on receiving a valid request. proceeds within 7 Business Days under normal circumstances on receiving a valid request.Fund Manager Dhiraj Sachdev Jitendra Sriram (for Equity portion) and Niren Parekh & Gaurav Mehrotra Sanjay Shah (for Fixed Income portion) Niren Parekh & Gaurav Mehrotra will be the dedicated Fund Manager for making overseas investments as permitted under the Regulations, guidelines and circulars issued from time to time.Benchmark Index BSE Midcap Index BSE 200 MSCI Emerging Market IndexDividend Policy Declaration of dividend is subject to the availability of distributable surplus. Such dividends if declared will be paid under normal circumstances, only to those Unitholders who have opted for Dividend sub-options with specified sub-options. Further, no exit load shall be charged for units allotted under dividend reinvestment option. However, it must be distinctly understood that the actual declaration of dividends under the Scheme and the frequency thereof will, inter alia, depend upon the distributable surplus of the Scheme. The Trustees reserve the right of dividend declaration and to change the frequency, date of declaration and the decision of the Trustees in this regard shall be final. There is no assurance or guarantee to unit holders as to the rate of dividend distribution nor that the dividend will be regularly paid. The dividend that may be paid out of the net surplus of the Scheme will be paid only to those Unitholders whose names appear in the register of Unitholders on the notified record date. The dividend will be at such rate as may be decided by the AMC in consultation with the Trustees. 6
  7. 7. Features HSBC MIDCAP EQUITY FUND HSBC DYNAMIC FUND HSBC EMERGING MARKETS FUNDPerformance of the Scheme Returns Benchmark Returns Scheme Benchmark Scheme BenchmarkScheme* Last 1 year -8.46% 1.10% Returns Returns Returns Returns Compounded Last 3 years -2.73% 0.73% Last 1 year 8.64% 6.94% Last 1 year 21.99% 17.21% Annualised Last 5 years 2.83% 6.46% Last 3 years -0.08% 4.13% Last 3 years -2.65% -1.38% Returns ^ Since Inception 11.67% 13.33% Since Inception 0.42% 2.91% Since Inception 1.79% 2.9% (As on 31 Absolute Returns Absolute Returns Absolute Returns May, 2011) HMEF - Growth BSE Midcap Index HDF - Growth BSE 200 HEMF - Growth BSE 200 150% 130.23 125% 100% 92.87 MSCI Emerging Market Index 116.01 100% 80% 100% 75% 60% 51.97 80% 50% 40% 60% 48.85 54.67 20% 9.27 8.15 40% 13.51 19.38 0.66 -1.40 -6.68 25% 5.15 0.99% 0% 20% 13.48 10.81 0% 1.73 3.69 0.30 5.12 -20% -4.12 -3.34 0% -25% -9.93% -7.39 -8.62 -2.47 Apr. 10 - Apr. 09 - Apr. 08 - Since Incep- Apr. 10 - Apr. 09 - Apr. 08 - Since Mar. 11 Mar. 10 Mar. 09 tion to Mar. 08 Apr. 10 - Apr. 09 - Apr. 08 - Apr. 07 - Apr. 06 - Mar. 11 Mar. 10 Mar. 09 Inception to Mar. 08 Mar. 11 Mar. 10 Mar. 09 Mar. 08 Mar. 07 *Past performance may or may not be sustained in the future. ^ Returns for 1 year & above are Compounded Annualised. Calculations are based on Growth Option NAVs. Since inception returns are calculated on Rs. 10 invested at inception.Recurring Expenses Actual Expenses for the previous financial year ended March 31, 2011 Total Expenses (Rs.) : 40,629,876.50 Total Expenses (Rs.) : 39,898,782.56 Total Expenses (Rs.) : 7,489,370.48 % to Net Assets : 2.36 % to Net Assets : 2.41 % to Net Assets : 1.10 First Rs. 100 crores % of the average daily net assets : 2.50 Total expenses of the Scheme shall consist of: Next Rs. 300 crores % of the average daily net assets : 2.25 (a) management fees not exceeding 0.75% of the daily Next Rs. 300 crores % of the average daily net assets : 2.00 average net assets of the Scheme; (b) other expenses relating to administration of the Scheme; and (c) the Balance : 1.75 weighted average of the total expense ratio of the underlying scheme(s) into which the Scheme invests. Provided that the sum total of a), b) and c) shall not exceed 2.50% of the daily average net assets of HEMF. Features HSBC TAX SAVER EQUITY FUND HSBC UNIQUE OPPORTUNITIES FUND HSBC SMALL CAP FUNDType An open-ended Equity Linked Savings Scheme An open-ended equity Scheme An open-ended equity SchemeInvestment To provide long term capital appreciation by investing To provide long-term capital growth from a diversified To provide long-term capital appreciation primarilyObjective in a diversified portfolio of equity & equity related portfolio of equity and equity related instruments. from a diversified portfolio of equity and equity related instruments of companies across various sectors and The focus would be to invest in stocks of companies instruments of small cap companies. industries, with no capitalization bias. The Fund may facing "out-of-ordinary" conditions. also invest in fixed income securities.Date of Inception 5 January, 2007 21 March, 2007 24 March, 2008Asset Allocation Please refer to page 3 Please refer to page 3 Please refer to page 4PatternInvestment Strategy The aim of the HSBC Tax Saver Equity Fund is The Fund Manager will seek to invest in companies The Fund Manager will endeavour to invest in small to provide long-term capital appreciation from an that currently operate in "out of ordinary" situations. cap companies that are typically characterized by actively managed portfolio, primarily comprising of a Out of ordinary situations are event-driven conditions strong fundamentals, high growth potential and mix of small, mid and large cap stocks. Income is not that render the company undervalued relative to its under-pricing relative to intrinsic value. Small Cap a primary consideration in the investment policies of long term potential and may, amongst others, include Companies are defined as the companies with the the HSBC Tax Saver Equity Fund. The Scheme aims (but not be limited to) the following: market capitalization to be predominantly invested in equity and equity Turnaround/Recovery situations which is : related securities. The Fund may also invest in fixed Financial restructurings, distressed debt etc. 1) lower than or equal to the market capitalization income securities. Mergers & Acquisitions, Divestments, Spin-Offs, of the stock in the BSE Small Cap Index with the Demergers, largest market capitalization and 2) higher than or equal to the market capitalization Out-of-favour industries/sectors of the stock in the BSE Small Cap Index with the Employee/Management buyouts smallest market capitalization. New product/business launches The fund will invest predominantly in equity and equity Asset plays (companies selling at significant related instuments but may also invest a limited portion discount to intrinsic value) in debt and money market instruments if the fund manager has a negative view of the equity market or Unrecognised growth potential to maintain liquidity. Companies likely to benefit from some change in the economy, industry transformation, new laws / regulations / technology.Risk Profile Mutual Fund units involve investment risks including the possible loss of principal. Please read the Combined SID carefully for details on risk factors before investment. Please refer to page 10 for the summarized scheme specific risk factors under "Common Features for all Schemes"Risk Mitigation Risks & Description Risk Mitigants / Management StrategyFactors Market Risk : Value of holdings may fall as a result of market movements Investment approach supported by comprehensive research Currency Risk : Risk on account of exchange rate fluctuations Investment manager could use (there is no obligation) derivatives to hedge currency risk Country Risk : Risk on account of exposure to a single country Investment universe is carefully selected to include high quality businesses Liquidity Risk : High impact costs Robust process for periodic monitoring of liquidity Concentration Risk : Risk on account of high exposure to a risk class Investment across market capitalization spectrum and industries/sectors Legal / Tax / Regulatory Risk : Risk on account of changes in regulations This risk is something dependent upon a future event and will be clearly communicated to the investor Event Risk : Price risk as a result of company or sector specific event Usage of derivatives : Hedge portfolios if required, in case of predictable events Mitigated as instruments are normally exchange traded with readily available data Valuation Risk : Risk on account of incorrect valuation Investment approach supported by comprehensive research 7
  8. 8. Features HSBC TAX SAVER EQUITY FUND HSBC UNIQUE OPPORTUNITIES FUND HSBC SMALL CAP FUNDPlan / Options Options : 1) Growth 2) DividendSub-Op tions Dividend Payout Option Dividend Payout & Dividend Reinvestment Option Dividend Payout & Dividend Reinvestment OptionApplicable NAV Where the valid application is received upto 3.00 p.m. with a local cheque or demand draft payable at par at the place where it is received, the closing NAV offor ongoing the day of receipt of application will be applicable.Subscriptions Where the valid application is received after 3.00 p.m. with a local cheque or demand draft payable at par at the place where it is received, the closing NAV ofand Redemptions the next Business Day will be applicable.(including switch ins Where the valid application is received with an outstation cheque or demand draft which is not payable on par at the place where it is received, the closing NAV/ switch outs) of day on which the cheque or demand draft is credited will be applicable.Load Structure Entry Load* : Nil Entry Load* : Nil.(including SIP/STP Exit Load : Nil Exit Load: 1% if redeemed / switched out within 1 year from the date of investment; otherwise Nil.where applicable)# # No load in case of switches between the Equity Schemes of HSBC Mutual Fund. The applicable exit loads (if any) at the time of allotment of the Schemes of HSBC Mutual Fund shall be charged on investments made by all investors. The applicable exit loads (if any) at the time of allotment of the Schemes of HSBC Mutual Fund shall also be charged on investments made by all investors. No exit load shall be charged for units allotted under bonus/dividend reinvestment option. The exit loads set forth above is subject to change at the discretion of the AMC and such changes shall be implemented prospectively. Please refer "Load Structure" under Common Features of all Schemes on page 11. *In terms of SEBI circular no. SEBI/IMD/CIR No.4/ 168230/09 dated June 30, 2009, no entry load will be charged by the Scheme to the investor effective August 1, 2009. Upfront commission shall be paid directly by the investor to the AMFI registered Distributors based on the investors assessment of various factors including the service rendered by the distributors.Waiver of load for Pursuant to SEBI Circular No. SEBI/IMD/CIR No. 4/168230/09 dated June 30, 2009, no Entry Load will be charged for all Mutual Fund Schemes.Direct Application Therefore, the procedure for Waiver of Load for Direct Applications is no longer applicable.Minimum Purchase : Rs. 500/- Purchase : Rs. 10,000/- and multiples of Re. 1/- thereafterApplication / Additional Purchase : In multiples of Rs. 500/- Additional Purchase : Rs. 1,000/- and multiples of Re. 1/- thereofRepurchase / thereafter. Redemption : Rs. 1,000/- and multiples of Re. 1/- thereofAdditional Amount+ Repurchase : Rs. 500/- and multiples of Rs. 500/- thereof. + The requirement of minimum subscription amount will not be applicable in case of SIP for scheme(s) where SIP facility is available. Refer to the Combined SID/ Addendums thereto for further details.Despatch of Within 10 working days of the receipt of the valid redemption request at the Official Points of Acceptance of Transactions of the Registrar and the AMC.Redemption The Fund would endeavour to dispatch redemption proceeds within 3 Business Days on receiving a valid request under normal circumstances.RequestFund Manager Jitendra Sriram & Aditya Khemani Jitendra Sriram Dhiraj Sachdev Niren Parekh & Gaurav Mehrotra will be the dedicated Fund Manager for making overseas investments as permitted under the Regulations, guidelines and circulars issued from time to time.Benchmark Index BSE 200 BSE 200 BSE Small Cap IndexDividend Policy Declaration of dividend is subject to the availability of distributable surplus. Such dividends if declared will be paid under normal circumstances, only to those Unitholders who have opted for Dividend sub-options with specified sub-options. Further, no exit load shall be charged for units allotted under dividend reinvestment option. However, it must be distinctly understood that the actual declaration of dividends under the Scheme and the frequency thereof will, inter alia, depend upon the distributable surplus of the Scheme. The Trustees reserve the right of dividend declaration and to change the frequency, date of declaration and the decision of the Trustees in this regard shall be final. There is no assurance or guarantee to unit holders as to the rate of dividend distribution nor that the dividend will be regularly paid. The dividend that may be paid out of the net surplus of the Scheme will be paid only to those Unitholders whose names appear in the register of Unitholders on the notified record date. The dividend will be at such rate as may be decided by the AMC in consultation with the Trustees.Performance of the Scheme Benchmark Scheme Benchmark Scheme Returns BenchmarkScheme* Returns Returns Returns Returns Returns Compounded Last 1 year 5.88% 6.94% Last 1 year 7.22% 6.94% Last 1 year -7.06% -3.64% Annualised Returns ^ Last 3 years 8.69% 4.13% Last 3 years -2.24% 4.13% Last 3 years 0.69% 0.42% (As on 31 Since Inception 8.46% 7.65% Since Inception 1.71% 10.06% Since Inception 1.78% 5.47% May, 2011) Absolute Returns Absolute Returns Absolute Returns HTSF - Growth BSE 200 HUOF - Growth BSE 200 180% HSCF - Growth BSE Small Cap Index 150% 161.73 100% 92.87 100% 92.87 123.83 87.14 120% 80% 80% 79.92 60% 60% 5.55 90% 40% 24.13 40% 24.70 60% 8.15 12.04 9.98 8.15 24.13 20% 5.80 20% 7.48 30% 12.83 -5.90 -6.42 0.37 -3.78 -3.40 -11.85 1.33 0% 0% 0% -20% -1.77 -1.40 -20% -3.40 -1.40 -30% Apr. 10 - Apr. 09 - Apr. 08 - Since Apr. 10 - Apr. 09 - Apr. 08 - Apr. 07 - Since Apr. 10 - Apr. 09 - Apr. 08 - Apr. 07 - Since Mar. 11 Mar. 10 Mar. 09 Inception Mar. 11 Mar. 10 Mar. 09 Mar. 08 Inception Mar. 11 Mar. 10 Mar. 09 Mar. 08 Inception to Mar. 08 to Mar. 07 to Mar. 07 *Past performance may or may not be sustained in the future. ^ Returns for 1 year & above are Compounded Annualised; Return below 1 year are absolute. Calculations are based on Growth Option NAVs.Recurring Expenses Actual Expenses for the previous financial year ended March 31, 2011 Total Expenses (Rs.) : 64,412,352.30 Total Expenses (Rs.) : 34,102,932.49 Total Expenses (Rs.) : 13,998,758.06 % to Net Assets : 2.34 % to Net Assets : 2.43 % to Net Assets : 2.48 First Rs. 100 crores % of the average daily net assets : 2.50 Next Rs. 300 crores % of the average daily net assets : 2.25 Next Rs. 300 crores % of the average daily net assets : 2.00 Balance : 1.75 8

×