HSBC Global Asset Management · 2018-03-12 · HSBC Global Asset Management, India – Addendums to...

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HSBC Global Asset Management - Addendums

HSBC Global Asset Management, India – Addendums to SID, SAI and KIM

26 September 2016

18 October 2016

03 November 2016

19 December 2016

31 January 2017

23 February 2017

27 February 2017

03 April 2017

28 April 2017

23 May 2017

27 July 2017

21 September 2017

13 October 2017

24 November 2017

29 December 2017

19 January 2018

02 February 2018

01 March 2018

07 March 2018

NOTICE CUM ADDENDUM

HSBC MUTUAL FUND

In accordance with Para B titled "Enhancing Scheme Related Disclosures" under Circular no.

SEBI/HO/IMD/DF2/CIR/P/2016/42 dated March 18, 2016 issued by Securities and Exchange

Board of India (SEBI), a new section titled "Additional Scheme Related Disclosures" stands

inserted/updated under the Scheme Information Document ("SID") / Key Information

Memorandum ("KIM") (as applicable) in the following schemes of HSBC Mutual Fund :

ADDITIONAL SCHEME RELATED DISCLOSURES:

1. HSBC Fixed Term Series 94 (a closed ended debt scheme)

A. Name of the Fund Manager and tenure of managing the scheme

Name of the Fund Manager Tenure of Managing the scheme

Kapil Punjabi 0.27

B. Portfolio Related Disclosures (as on March 31, 2017)

Portfolio - Top 10 Holdings (Issuer-wise)

Sr. No Issuer % of Net Assets

1 Power Grid Corporation of (I) Ltd 11.20

2 National Bank for Agriculture and Rural Development 11.15

3 EXIM 11.14

4 Power Finance Corporation Limited 10.49

5 Small Industries Development Bank of India 10.36

6 Rural Electrification Corporation 10.35

7 Cash And Cash Equivalents 9.14

8 Tata Capital Housing Finance Ltd 8.73

9 Cholamandalam Investment and Finance Co.Ltd 8.73

10 LIC Housing Finance Limited 8.71

Sector Allocation (% of Net Assets)


1 Financial Services 79.66

2 Energy 11.20


Portfolio Turnover Ratio (Portfolio turnover is defined as lesser of purchases and sales

as a percentage of the average corpus of the Scheme(s) during a specified period of

time.) - The Portfolio Turnover Ratio in case of debt fund is not applicable.

Kindly refer the Fund’s website, www.assetmanagement.hsbc.com/in for monthly portfolio

disclosures.

C. Aggregate investment in the Plan/Scheme by directors, fund manager’s and key

managerial personnel of the AMC as on March 31, 2017

Scheme Name AuM in INR AMC’s Board of

Directors Fund Manager(s) Other Key

Managerial Personnel

of AMC

HSBC Fixed Term Series 94

Nil

Note: The above investments are based on holdings as of March 31, 2017 and

sourced from the Fund’s Registrars records, on the basis of PAN of the above persons.

The investments have been aggregated at a scheme level, irrespective of the date of

investment into the scheme. The CEO of the AMC being a Director has been included

under AMC Directors and not under Key Managerial Personnel.




Kapil Punjabi 0.27






3 Power Grid Corporation Of (I) Ltd 7.84

4 Small Industries Development Bank Of India 7.82

5 National Bank For Agriculture And Rural Development

7.81


7 EXIM 7.80


9 Cholamandalam Investment And Finance Co.Ltd 7.79






3 Energy 7.84





disclosures.






of AMC


NIL









Sanjay Shah 0.27









9.83


7 EXIM 9.82


9 Cholamandalam Investment And Finance Co.Ltd 7.35






3 Energy 9.87





disclosures.






of AMC


NIL









Sanjay Shah 0.27




1 EXIM 11.12


3 East North Interconnection Company Limited (ENICL)

9.78


5 Tata Capital Financial Services Limited 8.87


7 IRFC Limited 7.91

8 National Bank for Agriculture and Rural Development 7.86






2 Energy 9.78






disclosures.






of AMC


16,36,590 NIL









Kapil Punjabi 0.27





2 National Thermal Power Corporation 10.95


10.65


5 Bajaj Finance Ltd 9.79

6 Sundaram Bnp Home Finance 9.76


8 L & T Finance Limited 9.12






2 Energy 20.32






disclosures.






of AMC


NIL






6. HSBC Capital Protection Oriented Fund – Series II – Plan I (A close ended capital

protection oriented scheme)



Sanjay Shah 2.1








13.27


6 Kotak Mahindra Prime Limited 8.64


8 EXIM 5.04





3 Energy 13.22





disclosures.






of AMC

HSBC Capital Protection Oriented Fund – Series II – Plan I

18,21,234.83 NIL






7. HSBC Capital Protection Oriented Fund – Series II – Plan II (A close ended capital

protection oriented scheme)



Sanjay Shah 2.04







16.30


5 Kotak Mahindra Prime Limited 10.84


7 IRFC Limited 7.60

8 EXIM 5.38





2 Energy 16.50


Note: Cash and Cash Equivalents includes Overnight Investments (CBLO/Reverse

Repo)





disclosures.






of AMC

HSBC Capital Protection Oriented Fund – Series II – Plan II

NIL






Apart from point A to C as mentioned above, following illustration showing impact of

expense ratio on plan/scheme’s return is also disclosed in the SID of the above mentioned

Plans/Schemes.

D. Illustration: Impact of Expense Ratio on Scheme's return:

Collections at Day Zero A 100,000,000

Purchase Price per unit B 10

Units allotted to domestic investors A/B C 10,000,000

Amount Invested D 100,000,000

Yield on investment E 6%

Expense ratio F 1.65%

AUM after one month

AUM including Yield (D*E)/12+D G 100,500,000

Expenses (for one month) (INR)-approximated at average of opening and closing AUM

((A+G)/2 * F)/12 H 137,844

AUM after one month G-H I 100,362,156

NAV per unit I/C J 10.0362

Annualized returns (Pre Expenses) % (G-D)/D*100*12 K 6.00

Annualized returns (Post Expenses) % (I-D)/D*100*12 L 4.35

This addendum shall form an integral part of the SID / KIM of the above mentioned Plan(s)/Scheme(s) as amended from time to Time. Applicants(s)/Unit holder(s) may contact our Customer Service Number - 1800 200 2434 or their

financial advisor(s), for any additional information/clarifications. You may also visit our website

www.assetmanagement.hsbc.com/in or write to us at hsbcmf@camsonline,com for any other

related information.

For & on behalf of HSBC Asset Management (India) Private Limited (Investment Manager to HSBC Mutual Fund)

Sd/- Authorised Signatory Mumbai, April 28, 2017

Mutual Fund investments are subject to market risks, read all scheme related documents carefully HSBC Asset Management (India) Private Limited, 16, V. N. Road, Fort, Mumbai – 400001 Email: [email protected], Website: www.assetmanagement.hsbc.com/in Issued by HSBC Asset Management (India) Private Limited CIN – U74140MH2001PTC134220

http://www.assetmanagement.hsbc.com/in

mailto:[email protected]

http://www.assetmanagement.hsbc.com/in

HSBC MUTUAL FUND

NOTICE CUM ADDENDUM

Changes in the Fundamental Attributes of various schemes of HSBC Mutual FundWe would like to inform you that in order to bring the uniformity in the practice across Mutual Funds and to standardize the scheme categories and their characteristics, SEBI vide its circular no. SEBI/HO/IMD/DF3/CIR/P/2017/114 dated October 06, 2017 and SEBI circular SEBI/HO/IMD/DF3/CIR/P/2017/126 dated December 04, 2017, has issued guidelines for categorization and rationalization of Mutual Fund schemes. Accordingly, the following changes will be carried out in certain schemes of HSBC Mutual Fund (‘HMF’) to align the same with the requirements specified in the aforesaid circulars. The Board of Directors of the HSBC Asset Management (India) Pvt. Ltd. (the AMC) and the Board of Trustees (the Trustees) have approved the following changes, which will be effective from March 14, 2018 and will be effected in the Scheme Information Document (SID) and Key Information Memorandum (KIM) of the respective Schemes.

18-0146 HSBC_FA Change Consolidate_Notice AD_Financial Exp • Size: 32.9 x 50 cms.

1. HSBC EQUITY FUND Sr. Particulars Existing provisions Revised provisions No. 1. Name of the HSBC Equity Fund HSBC Large Cap Equity Fund Scheme 2. Scheme Large cap equity scheme Large Cap Fund Category 3. Type of An open-ended diversified Equity Large Cap Fund – An open ended Scheme Scheme equity scheme predominantly investing in large cap stocks 4. Investment To generate long-term capital growth To generate long-term capital growth Objective from an actively managed portfolio of from an actively managed portfolio of equity and equity related securities. equity and equity related securities of predominantly large cap companies. However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.

Sr. Particulars Existing provisions Revised provisions No.

5. Asset allocation pattern

Instruments Indicative Risk allocation Profile (% of net assets) Min Max Equity and 65% 100% HighEquity relatedsecuritiesDebt securities 0% 35% Low to& Money Market Mediuminstruments(including cash& cashequivalents)

If the Scheme decides to invest in securitized 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 regulations issued from time to time. The Scheme may review the above pattern of investments based on views on the equity markets and asset liability management needs. However, at all times the portfolio will adhere to the overall investment objective of the Scheme. Investors may note that securities which provide higher returns, typically display higher volatility. Accordingly, the investment portfolio of the Scheme would reflect moderate to high volatility in its equity and equity related investments and low to moderate volatility in its debt and money market investments.

If the Scheme decides to invest in securitized debt, it is the intention of the Investment Manager that such investments will not normally exceed 20% 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 35% of the assets of the Scheme.The Scheme shall have derivative exposure as per the SEBI regulations issued from time to time. The Scheme may review the above pattern of investments based on views on the equity markets and asset liability management needs. However, at all times the portfolio will adhere to the overall investment objective of the Scheme. The Scheme will adopt the list of large cap companies as defined by SEBI, from time to time. Presently as per SEBI circular no. SEBI/HO/IMD/DF3/CIR/P/ 2017/114 dated October 06, 2017 and SEBI/HO/IMD/DF3/CIR/P/2017/126 dated December 04, 2017 large cap companies will comprise of companies from 1st to 100th companies in terms of full market capitalization. The Fund would adopt the list of large cap companies prepared by AMFI for this purpose in accordance with the SEBI circular no. SEBI/HO/IMD/DF3/CIR/P/2017/114 dated October 06, 2017 and SEBI/HO/IMD/DF3/ CIR/P/2017/126 dated December 04, 2017. If there is any updation in the list of large cap companies, the fund would rebalance its portfolio (if required) in line with the updated list, within a period of one month.Investors may note that securities which provide higher returns, typically display higher volatility. Accordingly, the investment portfolio of the Scheme would reflect high volatility in its equity and equity related investments and low to moderate volatility in its debt and money market investments.

6. Investment Strategy

The aim of HSBC Equity Fund is to deliver above-benchmark returns by providing long-term capital growth from an actively managed portfolio, mainly comprising companies registered in and / or listed on a regulated market of India. Income is not a primary consideration in the investment policies of HEF. The Scheme will invest across a range of market capitalisations with a preference for medium and large companies.A top down and bottom up approach will be used to invest in equity and equity related instruments. Investments will be pursued in select sectors based on the Investment Team’s analysis of business cycles, regulatory reforms, competitive advantage etc. Selective stock picking will be done from these sectors. The fund manager in selecting scrips will focus on the fundamentals of the business, the industry structure, the quality of management, sensitivity to economic factors, the financial strength of the company and the key earnings drivers.Since investing requires disciplined risk management, the AMC would incorporate adequate safeguards for controlling risks in the portfolio construction process. Stock specific risk will be minimized by investing only in those companies that have been analyzed by the Investment Team at the AMC.Risk will also be reduced through adequate diversification of the portfolio. Diversification will be achieved by spreading the investments over a range of industries / sectors.The Scheme may however, invest in unlisted and / or privately placed and / or unrated debt securities, subject to the limits indicated under “Investment

The aim of HSBC Large Cap Equity Fund is to deliver above-benchmark returns by providing long-term capital growth from an actively managed portfolio, mainly comprising companies registered in and / or listed on a regulated market of India. The Scheme will invest at least 80% in large cap companies and may also invest in equity and equity related instruments of companies other than large cap companies.A top down and bottom up approach will be used to invest in equity and equity related instruments. Investments will be pursued in select sectors based on the Investment Team’s analysis of business cycles, regulatory reforms, competitive advantage etc. Selective stock picking will be done from these sectors. The fund manager in selecting scrips will focus on the fundamentals of the business, the industry structure, the quality of management, sensitivity to economic factors, the financial strength of the company and the key earnings drivers.Since investing requires disciplined risk management, the AMC would incorporate adequate safeguards for controlling risks in the portfolio construction process. Stock specific risk will be minimized by investing only in those companies that have been analyzed by the Investment Team at the AMC.Risk will also be reduced through adequate diversification of the portfolio. Diversification will be achieved by spreading the investments over a range of industries / sectors.As per the asset allocation pattern indicated above, for investment in debt securities and money market instruments, the Fund may invest a part

7. Risk-o-meter This product is suitable for investors who are seeking*:- To create wealth over long term- Investment in equity and equity related securities

This product is suitable for investors who are seeking*:- To create wealth over long term- Investment in predominantly large cap equity and equity related securities

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.


Instruments Indicative Risk allocation Profile (% of net assets) Min Max Equity and 80% 100% HighEquity relatedsecurities of largecap companiesEquity and 0% 20% HighEquity relatedsecurities ofother than largecap companiesDebt securities 0% 20% Low to & Money Market Mediuminstruments(including cash& cashequivalents)

2. HSBC MIDCAP EQUITY FUND Sr. Particulars Existing provisions Revised provisions No. 1. Name of the HSBC Midcap Equity Fund HSBC Small Cap Equity Fund Scheme 2. Scheme Mid-cap Equity Scheme Small Cap Fund Category 3. Type of An open-ended diversified Equity An open ended equity scheme Fund Scheme predominantly investing in small cap stocks 4. Investment To generate long term capital growth from To generate long term capital growth from Objective an actively managed portfolio of equity and an actively managed portfolio of equity and equity related securities primarily being equity related securities of predominantly Midcap stocks. However, it could move a small cap companies. However, it could move portion of its assets towards fixed income a portion of its assets towards fixed income securities if the fund manager becomes securities if the fund manager becomes negative on the Indian equity markets. negative on the Indian equity markets. However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.

5. Asset allocation pattern

Instruments Indicative Risk allocation Profile (% of net assets) Min Max Equities & equity 65% 100% Highrelated securitiesof companieswhose marketcapitalization (a)does not exceedthe capitalizationof the largestconstituent and(b) is not lessthan the marketcapitalization ofthe smallestconstituent ofS&P BSE MIDCAP IndexOther equity and 0% 35% Highequity relatedsecurities Debt securities 0% 35% Low to & Money Market Mediuminstruments(including cash& cashequivalents)

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. The Scheme may review the above pattern of investments based on views on the equity and debt markets and asset liability management needs. The portfolio of the Scheme shall be reviewed on half yearly basis against the stated definition of Midcap Stock/Companies and necessary rebalancing, if any required, will be carried out within 90 days of the half yearly review. However, at all times the portfolio will adhere to the overall investment objective of the Scheme. Midcap stocks will comprise equity stocks of companies whose market capitalization (a) does not exceed the capitalization of the largest constituent and (b) is not less than the market capitalization of the smallest constituent of S&P BSE MID CAP Index. Investors may note that securities which provide higher returns, typically display higher volatility. Accordingly, the investment portfolio of the Scheme would reflect

The Scheme will adopt the list of small cap companies as defined by SEBI, from time to time. Presently, as per SEBI circular no. SEBI/HO/IMD/DF3/CIR/P/ 2017/114 dated October 06, 2017 and SEBI/HO/IMD/DF3/ CIR/P/2017/126 dated December 04, 2017, small cap companies will comprise of companies from 251st company onwards in terms of full market capitalization. The Fund would adopt the list of small cap companies prepared by AMFI for this purpose in accordance with the SEBI circular no. SEBI/HO/IMD/DF3/CIR/P/ 2017/114 dated October 06, 2017 and SEBI/HO/IMD/DF3/ CIR/P/2017/126 dated December 04, 2017. If there is any updation in the list of small cap companies, the fund would rebalance its portfolio (if required) in line with the updated list, within a period of one month.Investors may note that securities which provide higher returns, typically display higher volatility. Accordingly, the investment portfolio of the Scheme would reflect high volatility in its equity and equity related investments and low to moderate volatility in its debt and money market investments.If the Scheme decides to invest in securitized 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 issued by Indian Companies and foreign securities in line with SEBI stipulation, it is the intention of the

Instruments Indicative Risk allocation Profile (% of net assets) Min Max Equity and Equity 65% 100% Highrelated securitiesof small capcompaniesEquity and Equity 0% 35% Highrelated securitiesof other thansmall capcompaniesDebt securities & 0% 35% Low to Money Market Mediuminstruments(including cash& cashequivalents)

Restrictions for the Scheme” as per this SID, from issuers of repute and sound financial standing. If investment is made in unrated debt securities, the approval of the Board of the AMC and the Trustees or the Investment Management Committee (within the broad parameters approved by the Board of the AMC and the Trustees) shall be obtained, as per the Regulations.As per the asset allocation pattern indicated above, for investment in debt securities and money market instruments, the Fund may invest a part of the portfolio in various debt securities issued by corporates and / or state and central government. Such government securities may include securities which are supported by the ability to borrow from the treasury or supported only by the sovereign guarantee or of the state government or supported by GOI / state government in some other way.The Scheme may invest in other Scheme managed by the AMC or in the schemes of any other mutual fund, provided it is in conformity with the investment objectives of the Scheme and in terms of the prevailing Regulations. As per the Regulations, no investment management fees will be charged for such investments.

of the portfolio in various debt securities issued by corporates and / or state and central government. Such government securities may include securities which are supported by the ability to borrow from the treasury or supported only by the sovereign guarantee or of the state government or supported by Government of India (GOI) / state government in some other way.The Scheme may invest in other Scheme managed by the AMC or in the schemes of any other mutual fund, provided it is in conformity with the investment objectives of the Scheme and in terms of the prevailing Regulations. As per the Regulations, no investment management fees will be charged for such investments.

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Investors understand that their principalwill be at Moderately High risk.

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7. Benchmark S&P BSE Midcap Index. S&P BSE 250 Small Cap Index


The aim of HSBC Midcap Fund is to deliver above-benchmark returns by providing long-term capital growth from an actively managed portfolio, primarily comprising of midcap stocks. Income is not a primary consideration in the investment policies of HMEF.

The Scheme aims to be predominantly invested in midcap equity and equity related securities and also invest in small cap equity and equity related securities. However, it could move a portion of its assets towards fixed income securities if the fund becomes cautious or negative on equity markets.

A top down and bottom up approach will be used to invest in equity and equity related instruments. Investments will be pursued in select sectors based on the Investment Team’s analysis of business cycles, regulatory reforms, competitive advantage etc. Selective stock picking will be done from these sectors. The fund manager in selecting scrips will focus on the fundamentals of the business, the industry structure, the quality of management, corporate governance trends, sensitivity to economic factors, the financial strength of the company and the key earnings drivers.

Since investing requires disciplined risk management, the AMC would incorporate adequate safeguards for controlling risks in the portfolio construction process. Risk will also be reduced through adequate diversification of the portfolio. Diversification will be achieved by spreading the investments over a range of industries / sectors.

The Scheme may however, invest in unlisted and / or privately placed and / or unrated debt securities subject to the limits indicated under “Investment Restrictions for the Scheme(s)” prescribed in this SID, from issuers of repute and sound financial standing. If investment is made in unrated debt securities, the approval of the Board of the AMC and the Trustees or the Investment Management Committee (within the broad parameters approved by the Board of the AMC and the Trustees) shall be obtained, as per the Regulations.

As per the asset allocation pattern indicated above, for investment in debt securities and money market instruments, the Fund may invest a part of the portfolio in various debt securities issued by corporates and / or state and central government. Such government securities may include securities which are supported by the ability to borrow from the treasury or supported only by the sovereign guarantee or of the state government or supported by GOI / state government in some other way.

With the aim of controlling risks, rigorous in depth credit evaluation of the instruments proposed to be invested in will be carried out by the Investment Team of the AMC. The credit evaluation includes a study of the operating environment of the company, the past track record as well as the future prospects of the issuer, the short as well as long-term financial health of the issuer. The AMC will also be guided by the ratings of rating agencies such as CRISIL, CARE and ICRA or any other rating agency as approved by the regulators.

In addition, the Investment Team of the AMC will study the macro economic conditions, including the political, economic environment and factors affecting liquidity and interest rates. The AMC would use this analysis to attempt to predict the likely direction of interest rates and position the portfolio appropriately to take advantage of the same.

The Scheme may invest in other Schemes managed by the AMC or in the schemes of any other mutual fund, provided it is in conformity with the investment objectives of the Scheme and in terms of the prevailing Regulations. As per the Regulations, no investment management fees will be charged for such investments.

The aim of HSBC Small Cap Equity Fund is to deliver above-benchmark returns by providing long-term capital growth from an actively managed portfolio, primarily comprising of small cap stocks.

The Scheme aims to be predominantly invested in small cap equity and equity related securities and may also invest in equity and equity related securities of other than small cap companies. However, it could move a portion of its assets towards fixed income securities if the fund becomes cautious or negative on equity markets.



As per the asset allocation pattern indicated above, for investment in debt securities and money market instruments, the Fund may invest a part of the portfolio in various debt securities issued by corporates and / or state and central government. Such government securities may include securities which are supported by the ability to borrow from the treasury or supported only by the sovereign guarantee or of the state government or supported by Government of India (GOI) / state government in some other way.



The Scheme may invest in other Scheme managed by the AMC or in the schemes of any other mutual fund, provided it is in conformity with the investment objectives of the Scheme and in terms of the prevailing Regulations. As per the Regulations, no investment management fees will be charged for such investments.

4. HSBC ULTRA SHORT TERM BOND FUND Sr. Particulars Existing provisions Revised provisions No. 1. Name of the HSBC Ultra Short Term Bond Fund HSBC Low Duration Fund Scheme 2. Scheme Debt Fund Low Duration Fund Category 3. Type of An open-ended Debt Scheme An open ended low duration debt scheme Fund investing in instruments such that the Macaulay duration of the portfolio is between 6 months to 12 months 4. Investment Seeks to provide liquidity and reasonable To seek to provide liquidity and reasonable Objective returns by investing primarily in a mix of returns by investing primarily in a mix of short term debt and money market debt and money market instruments such instruments. that the Macaulay duration of the portfolio is between 6 months to 12 months. However there can be no assurance or guarantee that the investment objective of the scheme would be achieved.

5. Asset allocation

Instruments Indicative Risk allocation Profile (% of net assets) Min Max Money Market & 70% 100% LowDebt instrumentswith maturity/average maturity/interest ratereset not greaterthan 1 yearDebt instruments 0% 30% Low towith maturity Mediumgreater than1 year

*If the Scheme decides to invest in foreign securities, it is the intention of the Investment Manager that such investments will not, normally exceed 30% of the assets of the Scheme. However, the AMC with a view to protecting the interests of the investors, may increase exposure in foreign securities as deemed fi t from time to time.The Scheme shall have derivative exposure as per the SEBI regulations issued from time to time.The portfolio duration will undergo a change according to the expected movement in interest rates. Liquidity conditions and other macroeconomic factors affecting interest rates shall be taken into account for varying the portfolio duration. Under normal circumstances, if the interest rates move down, the duration of the portfolio shall be increased and vice versa.The Scheme may review the above pattern of investments based on views on the debt markets and asset liability management needs and the portfolio shall be reviewed and rebalanced on a regular basis. However, at all times the portfolio will adhere to the overall investment objective of the Scheme.

*The Macaulay duration is the weighted average term to maturity of the cash flows from a bond/ instrument. The weight of each cash flow is determined by dividing the present value of the cash flow by the price.If the Scheme decides to invest in foreign securities, it is the intention of the Investment Manager that such investments will not, normally exceed 30% of the assets of the Scheme. However, the AMC with a view to protecting the interests of the investors, may increase exposure in foreign securities as deemed fit from time to time.The Scheme shall have derivative exposure as per the SEBI regulations issued from time to time.Securitized debt, while relatively illiquid compared to other debt investments provides a higher yield pickup. Hence only if the Fund Manager becomes cautious or negative on the Indian markets for a reasonably long period of time he would consider investing in such instruments to improve the yield to the fund and investors as opposed to putting the monies in reverse repo and short term money market instruments upto 50% of net assets of the Scheme. No investments shall be made in foreign securitized debt.

Instruments Indicative Risk allocation Profile (% of net assets)Debt & Money 100% Low tomarket Mediuminstruments suchthat Macaulayduration* of theportfolio isbetween 6 to12 months

HSBC MUTUAL FUND

NOTICE CUM ADDENDUM


3. HSBC INFRASTRUCTURE EQUITY FUND Sr. Particulars Existing provisions Revised provisions No. 1. Name of the Equity scheme Thematic Fund Scheme 2. Type of Fund An open ended equity scheme An open ended equity scheme following Infrastructure theme

3. Asset allocation table

Instruments Indicative Risk allocation Profile (% of net assets) Min Max Equities & Equity 65% 100% Highrelated securitiesof companiesoperating inInfrastructureSector*Equity and equity 0% 35% Highrelatedinstruments ofother thanInfrastructureSector*Debt securities & 0% 35% Low to Money Market Mediuminstruments(including cash &cash equivalents)

*The fund will seek to invest, though not limited to, in the following sectors that are beneficiaries of the infrastructure growth and economic reforms expected in the country in the coming years viz Banking/Financial Services(Excluding Retail banks, being largely retail lending institutions); Capital Goods; Energy; Materials; Transportation; Utilities; Port & Logistics; Cement & Construction; Infrastructure Asset owners and Turnkey or services providers in infrastructure or any business benefiting from infrastructure investment.

*The fund will seek to invest in the sectors that are beneficiaries of the infrastructure growth and economic reforms expected in the country in the coming years eg. Banking/Financial Services (Excluding Retail banks, being largely retail lending institutions); Capital Goods; Energy; Materials; Transportation; Utilities; Port & Logistics; Cement & Construction; Infrastructure Asset owners and Turnkey or services providers in infrastructure or any business benefiting from infrastructure investment.

Instruments Indicative Risk allocation Profile (% of net assets) Min Max Equity and Equity 80% 100% Highrelated securitiesof companiesoperating inInfrastructure *Equity and Equity 0% 20% Highrelatedinstruments ofcompaniesoperating inother thanInfrastructure *Debt securities & 0% 20% Low to Money Market Mediuminstruments(including cash& cashequivalents)

8. Risk-o-meter This product is suitable for investors who are seeking*:- To create wealth over long term- Investment in predominantly mid cap equity and equity related securities

This product is suitable for investors who are seeking*:- To create wealth over long term- Investment in predominantly small cap equity and equity related securities



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moderate to high volatility in its equity and equity related investments and low to moderate volatility in its debt and money market investments.If the Scheme decides to invest in securitized 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. Securitized debt, while relatively illiquid compared to other debt investments provides a higher yield pickup. Hence only if the Fund Manager becomes cautious or negative on the Indian equity markets for a reasonably long period of time would he consider investing in such instruments to improve the yield to the fund and investors as opposed to putting the monies in reverse repo and short term money market instruments.No investments shall be made in foreign securitized debt. For investments in ADRs / GDRs, the Fund Manager would consider the premium / discount to the underlying stock and the possibility of the discount narrowing or the premium expanding, liquidity management of the portfolio, secondary and primary offerings of ADRs / GDRs.The Scheme shall have derivative exposure as per the SEBI regulations issued from time to time.

Investment Manager that such investments will not, normally exceed 35% of the assets of the Scheme. Securitized debt, while relatively illiquid compared to other debt investments provides a higher yield pickup. Hence only if the Fund Manager becomes cautious or negative on the Indian equity markets for a reasonably long period of time would he consider investing in such instruments to improve the yield to the fund and investors as opposed to putting the monies in reverse repo and short term money market instruments.No investments shall be made in foreign securitized debt. For investments in ADRs / GDRs, the Fund Manager would consider the premium / discount to the underlying stock and the possibility of the discount narrowing or the premium expanding, liquidity management of the portfolio, secondary and primary offerings of ADRs / GDRs.The Scheme shall have derivative exposure as per the SEBI regulations issued from time to time.


Instruments Indicative Risk allocation Profile (% of net assets)Debt & Money 100% Low tomarket Mediuminstruments suchthat Macaulayduration* of theportfolio isbetween 1 yearto 3 years

5. (a) HSBC INCOME FUND - SHORT TERM PLAN Sr. Particulars Existing provisions Revised provisions No. 1. Name of the HSBC Income Fund - Short Term Plan HSBC Short Duration Fund Scheme 2. Scheme Short Term Plan Short Duration Fund Category 3. Type of An open-ended Income Scheme An open ended short term debt scheme Fund investing in instruments such that the Macaulay duration of the portfolio is between 1 year to 3 years

4. Investment To provide a reasonable income through a To provide reasonable income through a Objective diversified portfolio of fixed income diversified portfolio of fixed income securities. The AMC’s view of interest rate securities such that the Macaulay duration trends will be reflected in the type and of the portfolio is between 1 year to 3 years. maturities of securities in which the Short However, there can be no assurance or Term Plan has invested. guarantee that the investment objective of the scheme would be achieved.

7. Benchmark CRISIL Liquid Fund Index - 90%, CRISIL Short Term Bond Fund Index - 10%.

CRISIL Ultra Short Term Debt Index


The aim of the Investment Manager will be to allocate the assets of the Scheme between various money market and fixed income securities (predominantly short duration instruments) with the objective of providing liquidity and achieving optimal returns with the surplus funds.

Since providing liquidity is of paramount importance, the focus will be to ensure liquidity while seeking to maximize the yield. An appropriate mix of money market and debt instruments will be used to achieve his. The Investment Team of the AMC will carry out rigorous in depth credit evaluation of the money market and debt instruments proposed to be invested in. The credit evaluation includes a study of the operating environment of the issuer, the past track record as well as the future prospects of the issuer and the short term / long term financial health of the issuer. The AMC will study the macro economic conditions, including the political and economic environment and factors affecting liquidity and yields in an attempt to predict the direction of interest rates.

Liquidity will be maintained through a combination of cash, reverse repo, daily put/call MIBOR papers and liquid CPs / CDs of strong credits. As compared to a liquid scheme, the higher portfolio maturity would mean higher allocation to 6-12 months instruments and a mix of structured credits in the 1 year segment as well as moving down the credit curve to improve yield. The scheme could run a mark to market component slightly higher than a liquid scheme (whose regulatory maximum is 10%) but sharply lower than an STP (in the region of 40-60%).

With the aim of controlling risks, a credit evaluation of the instruments proposed to be invested in will be carried out by the Investment Team of the AMC. The credit evaluation includes a study of the operating environment of the company, the past track record as well as the future prospects of the issuer, the short as well as long-term financial health of the issuer. The AMC will also be guided by the ratings of rating agencies such as CRISIL, CARE and ICRA or any other rating agency as approved by the regulators.

In addition, the Investment Team of the AMC will study the macro economic conditions, including the political, economic environment and factors affecting liquidity and interest rates. The AMC would use this analysis to attempt to predict the likely direction of interest rates and position the portfolio appropriately to take advantage of the same. The Fund may invest a part of the portfolio in various debt securities issued by corporates and / or state and central government. Such government securities may include securities which are supported by the ability to borrow from the Treasury or supported only by India’s sovereign guarantee or of the state government or supported by GOI / state government in some other way. The Scheme may invest in other Schemes managed by the AMC or in the schemes of any other mutual fund, provided it is in conformity with the investment objectives of the schemes and in terms of the prevailing Regulations. As per the Regulations, no investment management fees will be charged for such investments.

The aim of the Investment Manager will be to allocate the assets of the Scheme between various money market and fixed income securities, such that the Macaulay duration of the portfolio is between 6 to 12 months with the objective of providing liquidity and achieving optimal returns with the surplus funds.

Since providing liquidity is of paramount importance, the focus will be to ensure liquidity while seeking to maximize the yield. An appropriate mix of money market and debt instruments will be used to achieve this. The Investment Team of the AMC will carry out rigorous in depth credit evaluation of the money market and debt instruments proposed to be invested in. The credit evaluation includes a study of the operating environment of the issuer, the past track record as well as the future prospects of the issuer and the short term / long term financial health of the issuer. The AMC will study the macro economic conditions, including the political and economic environment and factors affecting liquidity and yields in an attempt to predict the direction of interest rates.

Liquidity will be maintained through a combination of cash, reverse repo, daily put/call MIBOR papers and liquid CPs / CDs of strong credits.

With the aim of controlling risks, a credit evaluation of the instruments proposed to be invested in will be carried out by the Investment Team of the AMC. The credit evaluation includes a study of the operating environment of the company, the past track record as well as the future prospects of the issuer, the short as well as long-term financial health of the issuer. The AMC will also be guided by the ratings of rating agencies such as CRISIL, CARE and ICRA or any other rating agency as approved by the regulators.

The AMC would use this analysis to attempt to predict the likely direction of interest rates and position the portfolio appropriately to take advantage of the same. The Fund may invest a part of the portfolio in various debt securities issued by corporates and / or state and central government. Such government securities may include securities which are supported by the ability to borrow from the Treasury or supported only by India’s sovereign guarantee or of the state government or supported by Government of India (GOI) / state government in some other way. The Scheme may invest in other Schemes managed by the AMC or in the schemes of any other mutual fund, provided it is in conformity with the investment objectives of the schemes and in terms of the prevailing Regulations. As per the Regulations, no investment management fees will be charged for such investments.


HIF - Short Term Plan will invest predominantly in debt and money market instruments where interest rate risk is low.The AMC’s view of interest rate trends will be reflected in the type and the maturity dates of instruments in which funds are invested. In pursuing such a policy, it should be recognised that the best overall returns are achieved by anticipating or reacting to interest rate changes rather than aiming for the highest possible interest rates at all times.The best resultant overall return is therefore achieved through both capital appreciation and income, which may result in somewhat lower yields than might otherwise normally appear obtainable from the relevant securities. The Scheme aims to provide investors with actively managed portfolios of interest bearing transferable debt and money market instruments. The portfolios may also include liquid assets and other assets permitted from time to time, with a short remaining maturity, especially in times of rising interest rates.In the Short Term Plan, exposure to instruments bearing price risk will be controlled, such that the Plan offers an appropriate mix of liquidity and returns. The Scheme may invest in unlisted and / or privately placed and / or unrated debt securities subject to the limits indicated under “Investment Restrictions for the Scheme(s)” in this SID, from issuers of repute and sound financial standing. If investment is made in unrated debt securities, the approval of the Board of the AMC and the Trustees or the Investment Management Committee (within the broad parameters approved by the Board of the AMC and the Trustees) shall be obtained, as per the Regulations.With the aim of controlling risks, rigorous in depth credit evaluation of the instruments proposed to be invested in will be carried out by the Investment Team of the AMC. The credit evaluation includes a study of the operating environment of the company, the past track record as well as the future prospects of the issuer, the short as well as long-term financial health of the issuer. The AMC will also be guided by the ratings of rating agencies such as CRISIL, CARE and ICRA or any other rating agency as approved by the regulators.In addition, the Investment Team of the AMC will study the macro economic conditions, including the political, economic environment and factors affecting liquidity and interest rates. The AMC would use this analysis to attempt to

The Scheme will invest predominantly in debt and money market instruments such that the Macaulay duration of the portfolio is between 1 year to 3 years. The AMC’s view of interest rate trends will be reflected in the type and the maturity dates of instruments in which funds are invested. In pursuing such a policy, it should be recognized that the best overall returns are achieved by anticipating or reacting to interest rate changes rather than aiming for the highest possible interest rates at all times.The best resultant overall return is therefore achieved through both capital appreciation and income, which may result in somewhat lower yields than might otherwise normally appear obtainable from the relevant securities. The Scheme aims to provide investors with actively managed portfolios of interest bearing transferable debt and money market instruments. The portfolios may also include liquid assets and other assets permitted from time to time, with a short remaining maturity, especially in times of rising interest rates.The Scheme exposure to instruments bearing price risk will be controlled, such that the Scheme offers an appropriate mix of liquidity and return.With the aim of controlling risks, rigorous in depth credit evaluation of the instruments proposed to be invested in will be carried out by the Investment Team of the AMC. The credit evaluation includes a study of the operating environment of the company, the past track record as well as the future prospects of the issuer, the short as well as long-term financial health of the issuer. The AMC will also be guided by the ratings of rating agencies such as CRISIL, CARE and ICRA or any other rating agency as approved by the regulators.In addition, the Investment Team of the AMC will study the macro economic conditions, including the political, economic environment and factors affecting liquidity and interest rates. The AMC would use this analysis to attempt to predict the likely direction of interest rates and position the portfolio appropriately to take advantage of the same.The Fund may invest a part of the portfolio in various debt securities issued by corporates and / or state and central government. Such government securities may include securities which are supported by the ability to borrow from the treasury or supported only by the sovereign guarantee or of the state government or supported by

HSBC MUTUAL FUND

NOTICE CUM ADDENDUM


5. Asset allocation

Instruments Indicative Risk allocation Profile (% of net assets) Min Max Debt and Money 80% 100% Low to Market MediumInstruments with duration ofupto 3 yearsDebt Instruments 0% 20% Low to with duration of Mediumgreater than3 years

If the Plan decides to invest in securitized debt, it is the intention of the Investment Manager that such investments will not normally exceed 50% of the corpus of the Plan and if the Plan decides to invest in foreign securities, it is the intention of the Investment Manager that such investments will not, normally exceed 25% of the assets of the Plan.The Plan shall under normal circumstances not have exposure of more than 50% of its net assets in derivative instruments. Investments in derivatives would be in accordance with the SEBI Regulations.The Plan will endeavour to invest in shorter duration instruments in line with the investment objective. Investments will be in money market instruments and debt instruments depending on prevailing interest rates and a view of the market. The portfolio duration will undergo a change according to the expected movement in interest rates. Liquidity conditions and other macro-economic factors affecting interest rates shall be taken into account for varying the portfolio duration. Under normal circumstances, if the interest rates move down, the duration of the portfolio shall be increased and vice versa.It is expected that the modified duration for the Short Term Plan could range between 1-3 years depending on interest rate views. However, this can undergo a change in case the market conditions warrant and according to the fund manager’s view.The Plan may review the above pattern of investments based on views on interest rates and asset liability management needs. However, at all times the portfolio will adhere to the overall investment objectives of the Scheme.The Plan may participate in securities lending as permitted under the Regulations.

*The Macaulay duration is the weighted average term to maturity of the cash flows from a bond. The weight of each cash flow is determined by dividing the present value of the cash flow by the price.If the Scheme decides to invest in securitized debt, it is the intention of the Investment Manager that such investments will not normally exceed 50% of the corpus of the Scheme and if the Scheme decides to invest in foreign securities, it is the intention of the Investment Manager that such investments will not, normally exceed 35% of the assets of the Scheme.The Scheme shall under normal circumstances not have exposure of more than 50% of its net assets in derivative instruments. Investments in derivatives would be in accordance with the SEBI Regulations.The Scheme may participate in securities lending as permitted under the Regulations.

8. Risk-o-meter This product is suitable for investors who are seeking*:- Liquidity over short term- Investment in Debt / Money Market Instruments

This product is suitable for investors who are seeking*:- Liquidity over short term- Investment in a mix of debt and money market instruments such that the Macaulay^ duration of the portfolio is between 6 months to 12 months.

* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.^ The Macaulay duration is the weighted average term to maturity of the cash flows from a bond. The weight of each cash flow is determined by dividing the present value of the cash flow by the price.

Riskometer


Riskometer



Securitised debt, while relatively illiquid compared to other debt investments provides a higher yield pickup. Hence only if the Fund Manager becomes cautious or negative on the Indian markets for a reasonably long period of time he would consider investing in such instruments to improve the yield to the fund and investors as opposed to putting the monies in reverse repo and short term money market instruments upto 50% of net assets of the Scheme. No investments shall be made in foreign securitised debt.


5. Asset allocation

Instruments Indicative Risk allocation Profile (% of net assets) Min Max Debt Instruments 40% 100% Low to with residual Mediummaturity/averagematurity greaterthan 182 daysMoney Market 0% 60% Low to and debt Mediuminstruments(including cash,money at call)with residualmaturity/averagematurity less than183 days andfloating rateinstrumentswhere the resettenor is one yearor less.

If the Plan decides to invest in securitised debt, it is the intention of the Investment Manager that such investments will not, normally exceed 50% of the corpus of the Plan and if the Plan decides to invest in foreign debt securities, it is the intention of the Investment Manager that such investments will not, normally exceed 25% of the assets of the Plan.The Plan shall under normal circumstances not have exposure of more than 50% of its net assets in derivative instruments. Investments in derivatives would be in accordance with the SEBI Regulations. The portfolio duration will undergo a change according to the expected movement in interest rates. Liquidity conditions and other macroeconomic factors affecting interest rates shall be taken into account for varying the portfolio duration. Under normal circumstances, if the interest rates move down, the duration of the portfolio shall be increased and vice versa. It is expected that the modified duration for the Investment Plan will be in a range of 6 months - 8 years depending on the interest rate view. However, this can undergo a change in case the market conditions warrant and according to the fund manager’s view.The Plan may review the above pattern of investments based on views on interest rates and asset liability management needs. However, at all times the portfolio will adhere to the overall investment objectives of the Scheme.The Plan may participate in securities lending as permitted under the Regulations.

*The Macaulay duration is the weighted average term to maturity of the cash flows from a bond/ instrument. The weight of each cash flow is determined by dividing the present value of the cash flow by the price.#The fund manager, in the interest of investors, may reduce the portfolio duration up to one year, in case the fund manager has a view on interest rate movements in light of anticipated adverse situation. Hence, Portfolio Macaulay duration under such anticipated adverse situation would be between 1 year to 7 years. Whenever the portfolio Macaulay duration is reduced below the specified floors of 4 years, the AMC shall record the reasons for the same with adequate justification and maintain the same for inspection. The written justifications shall also be placed before the Trustees in the subsequent Trustee meeting.If the Scheme decides to invest in securitized debt, it is the intention of the Investment Manager that such investments will not, normally exceed 50% of the corpus of the Scheme and if the Scheme decides to invest in foreign debt securities, it is the intention of the Investment Manager that such investments will not, normally exceed 25% of the assets of the Scheme.The Scheme shall under normal circumstances not have exposure of more than 50% of its net assets in derivative instruments. Investments in derivatives would be in accordance with the SEBI Regulations.The Scheme may participate in securities lending as permitted under the Regulations.

Instruments Indicative Risk allocation Profile (% of net assets)Debt & Money 100% Low tomarket Mediuminstrumentssuch thatMacaulayduration* of theportfolio isbetween 4 years#to 7 yearsAsset allocation under anticipated adverse situationDebt & Money 100% Low tomarket Mediuminstrumentssuch thatMacaulayduration* of theportfolio isbetween 1 years#to 7 years

5. (b) HSBC INCOME FUND - INVESTMENT PLAN Sr. Particulars Existing provisions Revised provisions No. 1. Name of the HSBC Income Fund – Investment Plan HSBC Debt Fund Scheme 2. Scheme Income Scheme Medium to Long Duration Fund Category 3. Type of An open-ended Income Scheme An open ended medium to long term debt Fund scheme investing in instruments such that the Macaulay duration of the portfolio is between 4 years to 7 years. 4. Investment To provide a reasonable income through To provide reasonable income through a Objective a diversified portfolio of fixed income diversified portfolio of fixed income securities. The AMC’s view of interest rate securities such that the Macaulay duration trends will be reflected in the type and of the portfolio is between 4 years to maturities of securities in which the 7 years. However, there can be no Investment Plan has invested. guarantee that the investment objective of the scheme would be achieved.

6. HSBC MONTHLY INCOME PLAN


1. Name of the HSBC Monthly Income Plan HSBC Regular Savings Fund Scheme

2. Scheme Income Scheme Conservative Hybrid Scheme Category

3. Type of An open ended Fund. Monthly income is An open ended hybrid scheme investing Fund not assured and is subject to the availability predominantly in debt instruments. of distributable surplus.

predict the likely direction of interest rates and position the portfolio appropriately to take advantage of the same.The Fund may invest a part of the portfolio in various debt securities issued by corporates and / or state and central government. Such government securities may include securities which are supported by the ability to borrow from the treasury or supported only by the sovereign guarantee or of the state government or supported by GOI / state government in some other way. Given that the liquidity of fixed income instruments is currently limited, the AMC will try to provide liquidity by staggering maturities for various instruments, as well as holding a sufficient portion of the portfolio in more liquid government and corporate paper as well as money market securities.The Scheme may invest in other Scheme(s) managed by the AMC or in the schemes of any other mutual fund, provided it is in conformity with the investment objectives of the Scheme and in terms of the prevailing regulations. As per the Regulations, no investment management fees will be charged for such investments.

Government of India (GOI) / state government in some other way. Given that the liquidity of fixed income instruments is currently limited, the AMC will try to provide liquidity by staggering maturities for various instruments, as well as holding a sufficient portion of the portfolio in more liquid government and corporate paper as well as money market securities.The Scheme may invest in other Scheme(s) managed by the AMC or in the schemes of any other mutual fund, provided it is in conformity with the investment objectives of the Scheme and in terms of the prevailing Regulations. As per the Regulations, no investment management fees will be charged for such investments.

HSBC MUTUAL FUND

NOTICE CUM ADDENDUM



HIF – Investment Plan aims to provide investors with income, with appropriate liquidity, and therefore will invest in a mix of debt and money market instruments, over varying maturities.The AMC’s view of interest rate trends will be reflected in the type and the maturity dates of instruments in which funds are invested. In pursuing such a policy, it should be recognised that the best overall returns are achieved by anticipating or reacting to interest rate changes rather than aiming for the highest possible interest rates at all times.The best resultant overall return is therefore achieved through both capital appreciation and income, which may result in somewhat lower yields than might otherwise normally appear obtainable from the relevant securities. The Scheme aims to provide investors with actively managed portfolios of interest bearing transferable debt and money market instruments. The portfolios may also include liquid assets and other assets permitted from time to time, with a short remaining maturity, especially in times of rising interest rates.In the Investment Plan, investments will be made mainly into debt instruments, with an appropriate allocation to money market instruments to maintain the overall liquidity of the portfolio.The Scheme may invest in unlisted and / or privately placed and / or unrated debt securities subject to the limits indicated under “Investment Restrictions for the Scheme(s)” in this SID, from issuers of repute and sound financial standing. If investment is made in unrated debt securities, the approval of the Board of the AMC and the Trustees or the Investment Management Committee (within the broad parameters approved by the Board of the AMC and the Trustees) shall be obtained, as per the Regulations.With the aim of controlling risks, rigorous in depth credit evaluation of the instruments proposed to be invested in will be carried out by the Investment Team of the AMC. The credit evaluation includes a study of the operating environment of the company, the past track record as well as the future prospects of the issuer, the short as well as long-term financial health of the issuer. The AMC will also be guided by the ratings of rating agencies such as CRISIL, CARE and ICRA or any other rating agency as approved by the regulators.In addition, the Investment Team of the AMC will study the macro economic conditions, including the political, economic environment and factors affecting liquidity and interest rates. The AMC would use this analysis to attempt to predict the likely direction of interest rates and position the portfolio appropriately to take advantage of the same.The Scheme may invest a part of the portfolio in various debt securities issued by corporates and / or state and central government. Such government securities may include securities which are supported by the ability to borrow from the treasury or supported only by the sovereign guarantee or of the state government or supported by GOI / state government in some other way. Given that the liquidity of fixed income instruments is currently limited, the AMC will try to provide liquidity by staggering maturities for various instruments, as well as holding a sufficient portion of the portfolio in more liquid government and corporate paper as well as money market securities.The Scheme may invest in other Scheme(s) managed by the AMC or in the schemes of any other mutual fund, provided it is in conformity with the investment objectives of the Scheme and in terms of the prevailing Regulations. As per the Regulations, no investment management fees will be charged for such investments.

The Scheme aims to provide investors with income, with appropriate liquidity, and therefore will invest in a mix of debt and money market instruments, over varying maturities.The AMC’s view of interest rate trends will be reflected in the type and the maturity dates of instruments in which funds are invested. In pursuing such a policy, it should be recognized that the best overall returns are achieved by anticipating or reacting to interest rate changes rather than aiming for the highest possible interest rates at all times.The best resultant overall return is therefore achieved through both capital appreciation and income, which may result in somewhat lower yields than might otherwise normally appear obtainable from the relevant securities. The Scheme aims to provide investors with actively managed portfolios of interest bearing transferable debt and money market instruments. With the aim of controlling risks, rigorous in depth credit evaluation of the instruments proposed to be invested in will be carried out by the Investment Team of the AMC. The credit evaluation includes a study of the operating environment of the company, the past track record as well as the future prospects of the issuer, the short as well as long-term financial health of the issuer. The AMC will also be guided by the ratings of rating agencies such as CRISIL, CARE and ICRA or any other rating agency as approved by the regulators.In addition, the Investment Team of the AMC will study the macro economic conditions, including the political, economic environment and factors affecting liquidity and interest rates. The AMC would use this analysis to attempt to predict the likely direction of interest rates and position the portfolio appropriately to take advantage of the same.The Scheme may invest a part of the portfolio in various debt securities issued by corporates and / or state and central government. Such government securities may include securities which are supported by the ability to borrow from the treasury or supported only by the sovereign guarantee or of the state government or supported by Government of India (GOI) / state government in some other way. Given that the liquidity of fixed income instruments is currently limited, the AMC will try to provide liquidity by staggering maturities for various instruments, as well as holding a sufficient portion of the portfolio in more liquid government and corporate paper as well as money market securities.The Scheme may invest in other Scheme(s) managed by the AMC or in the schemes of any other mutual fund, provided it is in conformity with the investment objectives of the Scheme and in terms of the prevailing Regulations. As per the Regulations, no investment management fees will be charged for such investments.

7. Risk-o-meter This product is suitable for investors who are seeking*:- Regular income over medium term- Investment in diversified portfolio of fixed income securities

This product is suitable for investors who are seeking*:- Regular income over medium term- Investment in diversified portfolio of fixed income securities such that the Macaulay^ duration of the portfolio is between 1 year to 3 years



Riskometer


Riskometer


7. Risk-o-meter This product is suitable for investors who are seeking*:- Regular income over long term- Investment in diversified portfolio of fixed income securities

This product is suitable for investors who are seeking*:- Regular income over long term- Investment in diversified portfolio of fixed income securities such that the Macaulay^ duration of the portfolio is between 4 years to 7 years



Riskometer


Riskometer




5. Risk-o-meter This product is suitable for investors who are seeking*:- Regular income over medium term- Investment in fixed income (debt and money market instruments) as well as equity and equity related securities

This product is suitable for investors who are seeking*:- Investment in fixed income (debt and money market instruments) as well as equity and equity related securities- Capital appreciation over medium to long term



Riskometer


Riskometer


7. HSBC EMERGING MARKETS FUND Sr. Particulars Existing provisions Revised provisions No. 1. Name of the HSBC Emerging Markets Fund HSBC Global Emerging Markets Fund Scheme 2. Scheme Fund of Funds Fund of Funds (Overseas) Category 3. Type of An open-ended Scheme An open ended fund of fund scheme investing Fund in HSBC Global Investment Funds - Global Emerging Markets Equity Fund 4. Investment To provide long term capital appreciation The primary investment objective of the Objective by investing in India and in the emerging Scheme is to provide long term capital markets, in equity and equity related appreciation by investing predominantly instruments, share classes and units/ in units/shares of HSBC Global Investment securities issued by overseas mutual Funds - Global Emerging Markets Equity funds or unit trusts. The fund may also Fund. The Scheme may also invest a invest a limited proportion in debt and certain proportion of its corpus in money money market instruments. market instruments and / or units of liquid mutual fund schemes, in order to meet liquidity requirements from time to time. However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.

4. Asset allocation

Instruments Indicative Risk allocation Profile (% of net assets) Min Max Debt Instruments 0% 100% Low toand Money MediumMarket Instruments(including cash,money at calland reverserepos)Equities and 0% 25% MediumEquity related to Highinstruments

If the Scheme decides to invest in securitised debt, it is the intention of the Investment Manager that such investments will not normally exceed 50% 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 25% of the assets of the Scheme.The Scheme shall have derivative exposure as per the SEBI regulations issued from time to time. It is expected that the modified duration of the portion of the portfolio invested in debt and money market instrument will be in the range of 6 months - 8 years. However, this can undergo a change in case the market conditions warrant and according to the fund manager’s view. The Scheme may review the above pattern of investments based on views on the debt and equity markets and asset liability management needs and the portfolio shall be reviewed and rebalanced on a regular basis. However, at all times the portfolio will adhere to the overall investment objective of the Scheme.

If the Scheme decides to invest in securitised debt, it is the intention of the Investment Manager that such investments will not normally exceed 50% 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 Regulations, it is the intention of the Investment Manager that such investments will not, normally exceed 25% of the assets of the Scheme.The Scheme shall under normal circumstances not have exposure of more than 25% of its net assets in derivative instruments. Investments in derivatives would be in accordance with the SEBI Regulations issued from time to time.

Instruments Indicative Risk allocation Profile (% of net assets) Min Max Debt Instruments 75% 90% Low toand Money MediumMarket Instruments(including cash,money at calland reverserepos)Equities and 10% 25% HighEquity related instruments

5. Asset allocation table

Instruments Indicative Risk allocation Profile (% of net assets) Min Max Units/securities 80% 100% Mediumissued by to Highoverseas mutualfunds or unittrusts ofemergingmarkets*Domestic Debt, 0% 20% Low to Money Market Mediuminstruments(including CBLO& reverse repo)and units ofdomestic mutualfunds.

* 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 into an underlying global scheme which invests more than 10% of their net assets in unlisted equity shares or equity related instruments.The Scheme may review the above pattern of investments based on views on the equity and debt markets and asset liability management needs and the portfolio shall be reviewed and rebalanced on a regular basis. However, at all times the portfolio will adhere to the overall investment objective of the Scheme.

Instruments Indicative Risk allocation Profile (% of net assets) Min Max Units issued by 95% 100% MediumHSBC Global to HighInvestmentFunds – GlobalEmerging MarketsEquity Fund Money Market 0% 5% Low toinstruments Medium (including CBLO& reverse repo)and units ofdomestic liquidmutual funds.

HSBC MUTUAL FUND

NOTICE CUM ADDENDUM


Income is not a primary consideration in the investment policies of HEMF. The Scheme aims to be predominantly invested in equity and equity related securities. The Fund may also invest in fixed income securities.

HEMF may invest in the Emerging Markets through overseas funds or overseas equity and equity related securities share classes /Units of equity Fund as permitted by SEBI. HEMF proposes to invest in the overseas market by investing in units / securities issued by overseas mutual funds managed by HSBC globally, for example HSBC GEM Equity Fund (GEM) etc. The Fund may undertake currency hedge to protect the investors from the risk associated with movement in currency markets as mentioned in the risk factors earlier.



The Scheme may however, invest in unlisted and / or privately placed and / or unrated debt securities subject to the limits indicated under “Investment Restrictions for the Scheme prescribed in this SID, from issuers of repute and sound financial standing. If investment is made in unrated debt securities, the approval of the Board of the AMC and the Trustees or the Investment Management Committee (within the broad parameters approved by the Board of the AMC and the Trustees) shall be obtained, as per the Regulations.

As per the asset allocation pattern indicated above, for investment in debt securities and money market instruments, the Fund may invest a part of the portfolio in various debt securities issued by corporates and / or state and central government. Such government securities may include securities which are supported by the ability to borrow from the treasury or supported only by the sovereign guarantee or of the state government or supported by GOI / state government in some other way.



The Scheme may invest in other Scheme(s) managed by the AMC or in the schemes of any other mutual fund, provided it is in conformity with the investment objectives of the Scheme and in terms of the prevailing Regulations.

corpus in money market instruments and / or units of liquid mutual fund schemes, in order to meet liquidity requirements from time to time.

The Scheme may undertake currency hedging to protect the investors from the risk associated with movement in currency markets.

Investment in units / shares of overseas mutual fund schemes other than HSBC Global Investment Funds - Global Emerging Markets Equity Fund, will be considered as a change in the fundamental attribute of the Scheme and all applicable provisions under the SEBI (Mutual Funds) Regulations, 1996 read with any amendments thereto, would be complied with, including giving an option to investors for a period of 30 days, to exit at the prevailing NAV of the Scheme, without being charged any exit load.


The aim of HSBC Emerging Markets Fund is to provide long-term capital appreciation from an actively managed portfolio, primarily comprising of a mix of small, mid and large cap stocks.

The Scheme will invest predominantly in units / shares of HSBC Global Investment Funds – Global Emerging Markets Equity Fund. The Scheme may also invest a certain proportion of its

7. Risk-o-meter This product is suitable for investors who are seeking*:- To create wealth over long term- Investment in equity and equity related securities of Emerging economies

This product is suitable for investors who are seeking*:- To create wealth over long term- Investment predominantly in units of HSBC Global Investment Funds - Global Emerging Markets Equity Fund



Riskometer


Riskometer




8. HSBC MANAGED SOLUTIONS


1. Name of the Fund of Funds Fund of Funds (Overseas/Domestic) Scheme

2. Type of An open ended Fund of Funds Scheme An open ended fund of fund scheme Fund investing in a basket of equity, debt, Gold and other Exchange Traded Funds

Securities and Exchange Board of India vide its letter no. IMD/DF3/OW/P/2018/89/1 dated January 02, 2018 conveyed it's no objection to the aforesaid change(s) in fundamental attributes of the respective Schemes of HMF.As per Regulation 18(15A) of the SEBI (Mutual Funds) Regulations, 1996, the above proposed changes are construed as changes in the fundamental attributes of the respective Schemes of HMF. Hence, unit holders who do not wish to continue to hold units in view of the proposed changes, have an option to switch their investments held in the aforesaid schemes of HMF to any other schemes of the HMF or redeem their investments at prevailing applicable Net Asset Value, without payment of any exit load, if any, by submitting their application at any of the designated Official Points of Acceptance, during a period of 30 days starting from February 12, 2018 to March 13, 2018 (both days inclusive). It should be noted that currently there is no exit load applicable under the aforesaid schemes. Unit holders who have pledged / marked lien on their units will have the option to exit only if they submit a release of their pledges / lien prior to submitting their redemption / switch requests during the exit option period. In case a lien is marked on units held by a unit holder or units have been frozen / locked pursuant to an order of a governmental authority or a court, redemption / switch-out can be executed only after the lien / order is vacated / revoked within the exit option period specified above.Unit holders, who have registered for Systematic Investment Plan/Systematic Transfer Plan facility prior to the above effective date and wish to discontinue investment of their future installments, shall make a written request to the Fund in this regard. The Fund will take at least 25 business days to process such requests and the intervening installments will continue to be processed. Unit holders should ensure that change in address / pay–out bank details, if any required by them, are updated in HSBC Mutual Fund’s records before exercising the exit option. Unit holders holding units in dematerialized form may approach their Depository Participant for such changes.It should be noted that no action is required to be taken by those unit holders who are in agreement with the proposed changes, and the same shall be deemed as their acceptance to the proposed changes. Such unit holders will continue to hold units in the respective Scheme(s) with the revised Scheme features after completion of the exit option period i.e. with effect from March 14, 2018. A written/email communication is also being sent to all the unit holders of the respective schemes informing them of the proposed changes and the exit option details. This Notice-cum-Addendum forms an integral part of the SID and KIM of the Fund, as amended from time to time. All other terms and conditions except as mentioned above, of the respective Scheme(s) remain unchanged.Applicants/Unit holders may contact our Investor Service Centers/their distributors, for any additional information/ clarifications. Also, please visit our website www.assetmanagement.hsbc.com/in for any other related information.Investors may obtain Statement of Additional Information, Scheme Information Document and Key Information Memorandums along with application forms from the Investor Service Centres of HSBC Mutual Fund or call on Tel: 1800-200-2434. (Can be dialled from all phones within India) or Tel: +91-44-39923900 (can be dialled from outside India).

For & on behalf of HSBC Asset Management (India) Private Limited(Investment Manager to HSBC Mutual Fund)

Sd/-Authorised SignatoryMumbai, February 02, 2018

3. Asset allocation Growth Plan

Instruments Indicative Risk allocation Profile (% of net assets) Min Max Equity Schemes 55% 90% High(Units of DomesticEquity andOffshore Equity)Debt Schemes 10% 30% Low to MediumGold and other 0% 15% Medium Exchange Traded to HighFundMoney Market 0% 20% Low to Schemes/Liquid MediumFunds (includingupto 5% inmoney marketinstruments)

Instruments Indicative Risk allocation Profile (% of net assets) Min Max Units of various 95% 100% HighMutual FundSchemes(Domestic andOffshore funds)out of whicha) Equity 55% 90% High

Schemes(Units ofDomesticEquity and OffshoreEquity)

b) Debt 10% 30% Low toSchemes Medium

c) Gold and 0% 15% Mediumother to HighExchangeTraded Fund

d) Money Market 0% 20% Low Schemes/Liquid Funds

Money market 0% 5% Lowinstruments

HSBC MUTUAL FUND

NOTICE CUM ADDENDUM

Asset allocation Moderate Plan








Asset allocation Conservative Plan









HSBC Global Asset Management · 2018-03-12 · HSBC Global Asset Management, India – Addendums to...

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