May 2014 - HSBC · Market Update The Indian equity markets touched historical highs as the election...

May 2014

Index

1

In this Issue ...

Fund Manager Commentary Pg 2

HSBC Equity Fund Pg 6

HSBC India Opportunities Fund Pg 8

HSBC Midcap Equity Fund Pg 10

HSBC Progressive Themes Fund Pg 12

HSBC Tax Saver Equity Fund Pg 14

HSBC Unique Opportunities Fund Pg 16

HSBC Dynamic Fund Pg 18

HSBC Emerging Markets Fund Pg 20

HSBC Brazil Fund Pg 21

HSBC Asia Pacific (Ex Japan) Dividend Yield Fund Pg 22

HSBC Managed Solutions India - Growth Pg 23

HSBC Managed Solutions India - Moderate Pg 24

HSBC Managed Solutions India - Conservative Pg 25

Fund Managers - Equity Pg 26

Comparative Performance of Equity Schemes Pg 28

HSBC MIP - Savings Plan Pg 32

HSBC MIP - Regular Plan Pg 34

HSBC Income Fund - Investment Plan Pg 36

HSBC Income Fund - Short Term Plan Pg 38

HSBC Floating Rate Fund - Long Term Plan Pg 40

HSBC Cash Fund Pg 42

HSBC Gilt Fund Pg 44

HSBC Ultra Short Term Bond Fund Pg 45

HSBC Flexi Debt Fund Pg 47

Fund Managers - MIP & Debt Pg 49

Comparative Performance of MIP & Debt Schemes Pg 51

Fund Manager Commentary May 2014

2

Equity & MIP

Market UpdateThe Indian equity markets touched historical highs as the election related news flows continued to show optimism amongst market participants. The general election verdict surpassed even the widely perceived investor expectations as it handed out a clear majority to the BJP led NDA formation. While both the opinion polls and exit polls were pointing towards the NDA formation to be front runner in the elections, the scale of the win for the outfit and the BJP in particular exceeded expectations. For the first time in history a non-Congress party, the BJP, secured a majority in the Lower House of Parliament (Lok Sabha) and this also marked the first single party majority in 30 years. Given this historic verdict, the expectations from the Narendra Modi led government is likely to be high and also the fact that they rode to power on a pro-development & economic reforms plank. The strong track record of the new Prime Minister in his home state of Gujarat lends some credibility to his campaign promises of ‘minimum government and maximum governance’ and driving the economic and social development of India. We have already seen him announce a much smaller Cabinet of 24 Ministers (Cabinet rank) compared to 33 in the outgoing government. While the Indian equity markets have moved up significantly around the election results, there may be more room for re-rating especially in sectors that are likely to benefit from the return of investment spending and economic revival. However much will depend on the real policy decisions & ground level execution by the new government.

As the investors began to factor in the strong verdict and a likely stable & decisive government at the centre, the market indices rallied with the BSE Sensex & Nifty delivering returns of 8% respectively. The gains in the broader market indices were much higher as the election verdict was widely expected to provide boost to ailing sectors such as Infrastructure, Capital Goods etc. The BSE Midcap & Smallcap indices gained as much as 15.6% & 20.4% respectively, riding on this optimism. The cyclical & beaten down names continued to re-rate on the expectations of a supportive policy environment due to the strong election verdict. Sectors such as Realty, Metals, Capital Goods gained upwards of 20% or more during the month of May 2014, while investor interest in sectors such as Pharma, IT & Consumer Staples waned as value over growth preference continued during the same month.

Echoing the upbeat sentiments of a stable government formation at the centre, the Foreign Institutional Investors (FIIs) pumped in ~USD 2.3 bn (net inflows) into Indian equities (cash segment) during May 2014. The FIIs have net bought Indian equities worth ~USD 7.6 bn so far this calendar year 2014. The Domestic institutional investors however continued to be net sellers and finished the month of May 2014 at a net outflow of ~USD 814 mn, taking their year till date (YTD) net outflow tally to ~USD 4.3 bn.The Current Account Deficit (CAD) narrowed further for the quarter ended March 2014 to ~USD 1.2 bn or ~0.2% of gross domestic product (GDP) annualised (vs. ~0.9% of GDP annualised in December 2013). This is the lowest CAD figure since the March 2009 quarter. On a full year basis (Financial Year 2014-15), the CAD narrowed substantially to 1.7% of the GDP from an all-time high of 4.7% seen in financial year 2013-14 (FY13).

Election verdict drives a major rally in equities

Source: Bloomberg ; Central Statistical Organization (CSO) India

Significant improvement in the CAD figure

Strong FII flows continued

Source: Bombay Stock Exchange (BSE)

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Indices Performance - May 2014


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Inflation & Industrial Growth

Inflation- mixed trends

Inflation trends for April 2014 were mixed with the Wholesale Price Index (WPI) seeing some deceleration, while the retail inflation or the Consumer Price Index (CPI) moved up marginally for the month. The Wholesale Price Index (WPI) inflation came in at 5.2% in April 2014 (YoY) as against 5.7% during March 2014 (YoY). The moderation in WPI was on the back of lower food & fuel inflation. The CPI on the other hand moved up marginally to 8.6% in April 2014 (YoY vs. 8.3% in March 2014). A pick-up in prices of Vegetables & Fruits largely led to the rise seen on the CPI side. The core CPI inflation however remained largely stable at 7.8% (YoY) for April 2014.

Industrial Production- contraction continued

The industrial production growth (measured through Index of Industrial Production or IIP) registered a decline of 0.5% for March 2014 (YoY vs. -1.8% in February 2014). Overall IIP growth for Financial Year 2014-15 came in at -0.1% YoY, first ever contraction seen since 1981. The March 2014 data was adversely impacted by the sizeable contraction seen on the Capital Goods (12.5%, YoY) and Consumer Durables segments (11.8%, YoY).

Global Economic Scenario

European Union elections assumed some significance

Days after the Indian general election results were announced, the voters of the 28 European Union (EU) countries elected 751 members to the European Parliament. As per the preliminary estimates, the centre-right party is set to win 214 seats with 28.5% vote share, making them the largest group. The main centre-right and left groups still hold the majority of seats but euro-skeptic groups have seized ground, especially in the UK, France and Greece. Though usually a non-event for the markets but this time around there were concerns that if a Euro-skeptic party emerges as the largest outfit then it may lead to higher level of debt & budget deficits in the region. Markets seem to have taken the result of the European elections in their stride even though over time there could be pressure to reduce the pace of austerity in the peripheral countries. Separately, there were some positive vibes coming out of the European Central bank (ECB) when President Mr. Mario Draghi signaled that the policy makers were ready to take stimulus action in June should they see low inflation becoming entrenched.

Going ForwardWith the election verdict behind us, all eyes will be now on the new government and how they go about revival of the growth path for the economy. The equity markets have rallied well ahead of the actual outcomes such as policy reforms, framework for economic growth revival and expectations from the new government undoubtedly run very high. Equities are expected to sustain the optimism given the strong election verdict, but may trade range bound till more ground level initiatives are seen from the new government. The upcoming union budget which is slated for the July 2014, may provide us with the first glimpses of the economic agenda that this government is likely to pursue over their 5 year term. Indian economy is bottoming out in terms of GDP growth after three years of slowdown. While the economic growth is unlikely to rebound sharply in the near term, we expect a moderate recovery in economic growth in financial year 2015-16 vs. financial year 2014-15 driven by an improvement in the external demand and a gradual pick-up in the private investment and consumption. However, in the short term we must be wary of the El-Nino impact adversely affecting the Monsoon rainfall this time. A significant shortfall in rainfall may lead to lower agricultural growth in financial year 2014-15 and this may slow down the economic revival process too. From a long term perspective, we still believe that equity markets have the potential to deliver better returns vis-à-vis other alternatives that have outperformed the asset class over a 5 year period. Therefore, we continue to urge investors to approach equity investing from a long term perspective and always keep the asset allocation plan in mind, taking into account one’s risk appetite and future goals in mind.Source: Bloomberg, for all data except where mentioned otherwise

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Review: HSBC Progressive Themes FundCurrently focusing on the following themes; 1. Economic Reforms (34.7%) which includes Financial sector reform- 25.5% & Oil & Gas Sector deregulation sub theme- 9.2%2. Infrastructure (43.7%) which includes Power- 12.7%, Construction– 16.4% and Logistics 14.6%. Well diversified exposure across sectors encompassing the above themes.

Review: HSBC Dynamic FundThe cash levels and sector allocation in the fund are likely to change depending on the market conditions and technical factors.

Review: HSBC MIP Regular and Savings PlansOur current equity exposure is 14.93% in HMIP Regular and 24.94%, in HMIP Savings. Currently it is more biased towards large caps than mid or small caps.

Review: HSBC Midcap Equity FundBeing overweight industrials helped performance while being overweight consumer discretionary, information technology and underweight consumer staples, financials, telecommunication & utilities impacted the performance.

Sectors HSBC Equity Fund

HSBC India Opportunities

Fund

HSBCMidcap

Equity FundConsumer Discretionary = Consumer Staples Energy = Financials Healthcare = = =Industrials Information Technology = = Materials =Telecommunication Utilities

Overweight Underweight = Neutral

Review: HSBC India Opportunities FundBeing overweight financials, industrials, materials and underweight consumer staples, energy, telecommunication helped performance while being underweight in utilities has impacted the performance.

Review: HSBC Equity FundBeing overweight financials, industrials, materials, consumer discretionary and underweight consumer staples, telecommunication helped performance while being underweight in utilities has impacted the performance.

DebtRBI's Monetary Policy, Economic Events and Data

Monetary Policy reiterates stance on anchoring inflationexpectations;

whilst indicating comfort from the strong election mandate, INR stability and accreting Forex Reserves

Bond yields continued the lowering trend bias through the month of May 2014 as benchmark ten year yields traded at near term lows. The election outcome of clear majority to a single national party, the BJP brought about optimism for reforms revival. This optimism induced a rally in the markets and the currency, as Foreign Institutional Investor (FII) inflows surged to over USD 5bn during the month of May 2014.Second Bi-Monthly Monetary Policy - Overall Assessment and OutlookDomestic Markets:Lead indicators point to continuing sluggishness in domestic economic activity in the first quarter of financial year 2014-15. The outlook for agriculture remains uncertain as delay in the onset of the south west monsoon with 60% chance of the occurrence of El- Nino loom over. The ongoing contraction in the production of consumer durables and capital goods, coupled with moderation in corporate sales and non-oil, non-gold imports, indicate continuing weakness in both consumption and investment demand. Inflation: Retail inflation measured by the Consumer Price Index (CPI) increased for the second consecutive month in April 2014, due to sharp increase in food inflation, especially in the prices of fruits, vegetables, sugar, pulses and milk. CPI inflation excluding food and fuel has moderated gradually since September 2013, although it still remains elevated.External Markets:A broad-based strengthening of growth is gaining traction in the United States of America (USA) and the United Kingdom (UK), after a moderation in the first quarter of calendar year 2014 due to adverse weather conditions. Also economic recovery in the Eurozone is struggling to gather momentum. Structural constraints continue to hamper growth in emerging market economies (EMEs), with concerns about the slowdown in China as its economy rebalances.

For the financial year 2013-14 as a whole, India’s current account deficit (CAD) narrowed sharply to 1.7% of Gross Domestic Product (GDP). The shrinking import demand and resumption in export growth is likely to help CAD contraction going ahead. Robust inflows of portfolio investment, supported by foreign direct investment and external commercial borrowings, kept external financing conditions comfortable and helped add to reserves.

Economic Data

Macro data indicates sticky inflation as industrial activity remains subdued

Trade Deficits continue to remain comfortable

Headline CPI inflation rose to 8.6% in the month of April 2014 from 8.3% in the month of March 2014, due to higher food prices. But core inflation remained unchanged at 7.8% year-on-year (YoY).Industrial output (IIP) growth contracted -0.5% YoY in March 2014 from -1.8% in February 2014, better than expected, led by a sharp rebound in consumer non-durables output growthThe trade deficit narrowed in April 2014 to USD10.1bn from USD10.5bn in March 2014, as export growth improved from 5.3% YoY in April 2014 from -3.1% in March 2014, while imports remained sluggish at -15% YoY in April 2014. Imports excluding oil and gold contracted at a slower pace of 5.4% YoY in April 2014.

Market Activity

Bonds remain range bound amidst nil supply; but H1 FY 2014 – 15 borrowing looms large on markets

Bond yields remained volatile during the early part of the month owing to market positioning ahead of the event outcome. Unlike the surge witnessed in the equity indices, bond yields traded in a wider range immediately post the election outcome. Eventually, the bond yields softened closer to monetary policy meet in line with the equity indices and currency.Benchmark ten year G-sec yield traded at near term lows of 8.58% levels post the monetary policy outcome.

Limited supply in corporate bonds

Credit supply has considerably dried up through the first two months of financial year 2014-15. Lack of access to Treasury Bills for FII’s has induced increased demand in the shorter end of the credit curve, incentivizing the issuers to alter their issuance pattern towards meeting the demand. This would allow the credit curve to remain relatively flatter in the coming months.

Global Economy

In line with expectations, The Federal Open Market Committee (FOMC) announced a further tapering of USD 10bn during its meeting held on April 2014. There by reducing the programme from USD 55 bn to USD 45 bn. US Federal Reserve (Fed) chairman Yellen’s testimony likewise re-affirmed the dovish bias by the Fed as the labor market and economy remained below the Fed’s expectations suggesting lower rates for a longer period of time.US Treasuries yields have been witnessing a shift in sentiment in the last two weeks of May 2014. The notion of a weaker than expected growth and benign inflation are likely factors that have led to downward revisions of US treasuries by various investment bank’s trading desk.We expect a package of measures to ease monetary policy from the European Central Bank (ECB) which could include marginal cut to all key interest rates at its meeting scheduled 5th June 2014.

Going Forward

The RBI seems to have derived comfort from the decisive election outcome aiding optimism to the growth outlook and renewed momentum on the Foreign Institutional Investor (FII) inflows leading to stable currency. This comfort was evidenced in policy note wherein the RBI has reiterated, “If the economy stays on this course, further policy tightening will not be warranted.” and also goes on to add “On the other hand, if disinflation, adjusting for base effects, is faster than currently anticipated, it will provide headroom for an easing of the policy stance.”The RBI’s policy stance remains firmly anchored on keeping the economy on a disinflationary glide path and taking CPI inflation to 8% by January 2015 and below 6% by January 2016. The risk factors to the central forecast on inflation remain broadly balanced as upside risk in form of delayed monsoon, setting of administered price of fuel is likely to get balanced by the possibility of stronger government action on food supply and fiscal consolidation. Optimism on reform process, accelerating forex reserves, positive outlook on exports, ongoing pass through of oil prices would indicate that the rates have peaked for the current cycle. That said, we believe that the RBI would be remain inclined to usher in impetus for growth momentum sooner than later, in case of faster than expected decline in inflation trends.G-sec yields would likely to be impacted by the demand supply dynamics of G-sec’s, coupled with macro-economic factors, food prices, inflation and monsoon. Debt markets seem to have been gaining further comfort on the outlook of short term rates. Sovereign supply, net of maturities, increases considerably through the Jun-Sept 2014 quarter. Fiscal ‘maths’ would be keenly watched out for additional borrowing, if any, as the same may alter the demand supply equation further. Considering the above, we would be biased towards maintaining appropriate duration ahead of the upcoming Union Budget due in first fortnight of July 2014.Source: Bloomberg, for all data except where mentioned otherwise


5

An Open Ended Diversified Equity SchemeInvestment Objective: Aims to generate long term capital growth from an actively managed portfolio of equity and equity related securities.

Issuer Market Value(` in Lacs)

% to NetAssets

Auto Tata Motors 2,075.25 3.58%Maruti Suzuki India 2,044.62 3.53%Auto AncillariesMotherson Sumi Systems 1,198.20 2.07%Banks ICICI Bank 4,395.96 7.59%Axis Bank 3,121.46 5.39%State Bank of India 1,906.69 3.29%HDFC Bank 1,585.50 2.74%Yes Bank 1,423.61 2.46%Punjab National Bank 943.80 1.63%Bank of Baroda 842.65 1.46%CementACC 802.20 1.39%ConstructionJaiprakash Associates 1,095.75 1.89%Construction ProjectLarsen & Toubro 3,477.38 6.01%Consumer Non DurablesI T C 3,246.63 5.61%Ferrous MetalsJindal Steel and Power 1,488.75 2.57%Tata Steel 1,425.30 2.46%Finance LIC Housing Finance 1,273.40 2.20%Rural Electrification Corporation 799.25 1.38%HDFC 613.76 1.06%Media & EntertainmentSun TV Network 619.88 1.07%Minerals/Mining Sesa Sterlite 2,243.60 3.88%NMDC 1,105.00 1.91%Oil Oil & Natural Gas Corporation 2,836.13 4.90%Cairn India 675.30 1.17%Petroleum Products Reliance Industries 1,330.88 2.30%Bharat Petroleum Corporation 913.33 1.58%Pharmaceuticals Lupin 1,310.33 2.26%Dr Reddy’s Laboratories 1,230.33 2.13%PowerNTPC 642.00 1.11%Software HCL Technologies 2,269.68 3.92%Wipro 1,771.70 3.06%Tech Mahindra 1,730.70 2.99%Infosys 1,175.76 2.03%Transportation Adani Ports and Special Economic Zone 1,042.75 1.80%Total 94.42%

HSBC Equity Fund (HEF) May 2014

6


% to NetAssets

Other Equity Investments 1,216.98 2.10%Reverse Repos 2,141.53 3.70%CBLOs 182.03 0.31%Net Current Assets -308.89 -0.53%Total Net Assets as on 31 May 2014 57,889.13 100.00%

Asset AllocationAuto 7.11%Auto Ancillaries 2.07%Banks 24.56%Cement 1.39%Construction 1.89%Construction Project 6.01%Consumer Non Durables 5.61%Ferrous Metals 5.03%Finance 4.64%Media & Entertainment 1.07%Minerals/Mining 5.79%Oil 6.07%Petroleum Products 3.88%Pharmaceuticals 4.39%Power 1.11%Software 12.00%Transportation 1.80%Other Equity Investments 2.10%Reverse Repos/CBLOs 4.01%Net Current Assets -0.53%Total Net Assets 100.00%

Dividend DeclarationRecord Date / period of

dividend declaredDividend (` per unit)

Non-InstitutionalDividend (` per unit)

InstitutionalNAV (`) per unit(cum dividend)

HSBC Equity Fund - Dividend28-May-10 1.50 1.50 26.691119-Nov-10 2.00 2.00 29.324422-Feb-13 2.50 2.50 26.1962HSBC Equity Fund - Dividend Direct Plan22-Feb-13 2.50 2.50 26.2505

Date of Allotment 10-Dec-02Benchmark S&P BSE 200NAV (Growth) per unit(as on 30.05.14)

` 131.8884

Fund Managers Neelotpal SahaiSIP AvailableMinimumApplicationAmount

` 10,000` 1,000 p.m.(SIP)

Exit Load@ NilStatistical Ratios

Standard Deviation 0.86%R-Squared 0.9539Beta (Slope) 0.9361Sharpe Ratio** 0.0159Total Expense Ratio as on May 31, 2014

Regular 2.42% Direct Plan 1.72% Excludes service tax on Investment Management fees of 0.17% of Total Net Assets. Annualised Expense Ratio from 1st April 2014 onwards

Regular 2.45% Direct Plan 1.72% Excludes service tax on Investment Management fees of 0.17% of Total Net Assets. Portfolio Turnover 1.16

Statistical ratios disclosed as per daily returns of the last 3 years/since inception, whichever is later. @ Effective from March 1, 2013 for prospective investments. **Risk free rate: 10 yr Gsec: 8.65% as on May 31, 2014.

HSBC Equity Fund (HEF) May 2014

7

Upon payment of dividend, the NAV per unit falls to the extent of payout and statutory levy, if any. Face value: `10 per unit.

This Product is suitable for investors who are seeking* :l To create wealth over long terml Investment in equity and equity related securitiesl High risk (Brown)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

An Open Ended Flexi-Cap Equity SchemeInvestment Objective: Seeks long term capital growth through investments across all market capitalisations, including small, mid and large cap stocks. It aims to be predominantly invested in equity & equity related securities. However it could move a significant portion of its assets towards fixed income securities if the fund manager becomes negative on equity markets.


% to NetAssets

Auto Eicher Motors 667.55 3.27%Tata Motors 518.81 2.54%Auto AncillariesBalkrishna Industries 506.12 2.48%Banks ICICI Bank 1,418.05 6.94%Axis Bank 1,009.88 4.94%State Bank of India 610.14 2.99%HDFC Bank 594.56 2.91%Yes Bank 569.40 2.79%Punjab National Bank 471.90 2.31%Corporation Bank 354.20 1.73%Syndicate Bank 282.40 1.38%Cement Shree Cement 685.11 3.35%Construction IRB Infrastructure Developers 492.75 2.41%Prestige Estates Project 465.86 2.28%Construction ProjectLarsen & Toubro 850.03 4.16%Consumer Non Durables I T C 1,025.25 5.02%Ferrous MetalsTata Steel 427.59 2.09%Finance LIC Housing Finance 477.53 2.34%Industrial Capital GoodsAIA Engineering 377.68 1.85%Industrial ProductsSupreme Industries 457.38 2.24%Minerals/MiningSesa Sterlite 560.90 2.75%Oil Oil & Natural Gas Corporation 567.23 2.78%Petroleum Products Hindustan Petroleum Corporation 460.75 2.26%Gulf Oil Corporation 319.20 1.56%Reliance Industries 266.18 1.30%Pharmaceuticals Aurobindo Pharma 502.35 2.46%Ipca Laboratories 394.30 1.93%Divi's Laboratories 318.80 1.56%PowerCESC 433.09 2.12%Software HCL Technologies 638.35 3.12%Infosys 529.09 2.59%Tech Mahindra 480.75 2.35%Mindtree 377.44 1.85%Eclerx Services 273.80 1.34%Textile ProductsArvind 456.75 2.24%TransportationGateway Distriparks 388.24 1.90%Gujarat Pipavav Port 252.50 1.24%Total 95.37%

HSBC India Opportunities Fund (HIOF) May 2014

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% to NetAssets

Other Equity Investments 180.57 0.88%Reverse Repos 768.69 3.76%CBLOs 65.34 0.32%Net Current Assets -64.39 -0.33%Total Net Assets as on 31 May 2014 20,432.09 100.00%

Asset AllocationAuto 5.81%Auto Ancillaries 2.48%Banks 25.99%Cement 3.35%Construction 4.69%Construction Project 4.16%Consumer Non Durables 5.02%Ferrous Metals 2.09%Finance 2.34%Industrial Capital Goods 1.85%Industrial Products 2.24%Minerals/Mining 2.75%Oil 2.78%Petroleum Products 5.12%Pharmaceuticals 5.95%Power 2.12%Software 11.25%Textile Products 2.24%Transportation 3.14%Other Equity Investments 0.88%Reverse Repos/CBLOs 4.08%Net Current Assets -0.33%Total Net Assets 100.00%





HSBC India Opportunities Fund - Dividend11-Dec-09 1.00 1.00 16.901319-Nov-10 1.00 1.00 18.23134-Feb-13 1.50 1.50 17.7319HSBC India Opportunities Fund - Dividend Direct Plan4-Feb-13 1.50 1.50 17.7519

Date of Allotment 24-Feb-04Benchmark S&P BSE 500NAV (Growth) per unit(as on 30.05.14)

` 50.9988

Fund Manager Neelotpal SahaiSIP AvailableMinimumApplication Amount

` 10,000` 1,000 p.m.(SIP)





Statistical ratios disclosed as per daily returns of the last 3 years/since inception, whichever is later. @ Effective from March 1, 2013 for prospective investments.**Risk free rate: 10 yr Gsec: 8.65% as on May 31, 2014.

HSBC India Opportunities Fund (HIOF) May 2014

9


This Product is suitable for investors who are seeking* :l To create wealth over long terml Invests in equity and equity related securities across market capitalisationsl High risk (Brown)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

An Open Ended Diversified Equity SchemeInvestment Objective: Seeks to generate long term capital growth from an actively managed portfolio of equity and equity related securities primarily being midcap stocks. However, it could move a portion of its assets towards fixed income securities if the fund manager becomes negative on the Indian equity markets.


% to NetAssets

AutoVST Tillers Tractors 235.88 1.60%Auto Ancillaries Apollo Tyres 551.35 3.75%Balkrishna Industries 488.05 3.32%Suprajit Engineering 452.96 3.08%Banks Jammu & Kashmir Bank 449.42 3.05%DCB Bank 403.39 2.74%Dena Bank 370.09 2.52%State Bank of Bikaner and Jaipur 301.58 2.05%Federal Bank 226.79 1.54%CementEverest Industries 223.27 1.52%ConstructionIRB Infrastructure Developers 384.35 2.61%National Buildings Construction Corporation 270.95 1.84%BF Utilities 195.34 1.33%Construction ProjectKEC International 511.20 3.47%Consumer Non DurablesGodfrey Phillips India 473.89 3.22%FinanceCholamandalam Investment & Fin. Co. 449.21 3.05%Indiabulls Housing Finance 439.71 2.99%Industrial Capital GoodsBEML 315.98 2.15%Media & Entertainment HT Media 388.14 2.64%Jagran Prakashan 180.08 1.22%Minerals/Mining Gujarat Mineral Development Corporation 174.97 1.19%PesticidesUPL 561.35 3.82%PI Industries 378.41 2.57%Petroleum ProductsGulf Oil Corporation 478.34 3.25%Hindustan Petroleum Corporation 220.36 1.50%PharmaceuticalsAurobindo Pharma 646.36 4.39%Ipca Laboratories 282.32 1.92%Alembic Pharmaceuticals 219.39 1.49%PowerCESC 259.85 1.77%Software Nucleus Software Exports 367.93 2.50%Persistent Systems 349.14 2.37%Tech Mahindra 323.06 2.20%Textile - CottonVardhman Textiles 200.99 1.37%Textile ProductsArvind 336.17 2.28%Transportation Gateway Distriparks 415.03 2.82%Adani Ports and Special Economic Zone 238.88 1.62%Gujarat Pipavav Port 170.44 1.16%Total 87.91%

HSBC Midcap Equity Fund (HMEF) May 2014

10


% to NetAssets

Other Equity Investments 1,113.12 7.55%Reverse Repos 643.75 4.38%CBLOs 54.72 0.37%Net Current Assets -32.27 -0.21%Total Net Assets as on 31 May 2014 14,713.88 100.00%

Asset AllocationAuto 1.60%Auto Ancillaries 10.15%Banks 11.90%Cement 1.52%Construction 5.78%Construction Project 3.47%Consumer Non Durables 3.22%Finance 6.04%Industrial Capital Goods 2.15%Media & Entertainment 3.86%Minerals/Mining 1.19%Pesticides 6.39%Petroleum Products 4.75%Pharmaceuticals 7.80%Power 1.77%Software 7.07%Textiles - Cotton 1.37%Textile Products 2.28%Transportation 5.60%Other Equity Investments 7.55%Reverse Repos/CBLOs 4.75%Net Current Assets -0.21%Total Net Assets 100.00%





HSBC Midcap Equity Fund - Dividend24-Mar-08 0.75 0.75 13.379711-Dec-09 1.00 1.00 13.892719-Nov-10 2.00 2.00 15.4864

Date of Allotment 19-May-05Benchmark S&P BSE MidcapNAV (Growth) per unit(as on 30.05.14)

` 27.0221

Fund Manager Dhiraj SachdevSIP AvailableMinimumApplicationAmount

` 10,000` 1,000 p.m.(SIP)






HSBC Midcap Equity Fund (HMEF) May 2014

11


Our exposure to midcap stocks in HSBC Midcap Equity Fund (HMEF) is 90.5600%

This Product is suitable for investors who are seeking* :l To create wealth over long terml Invests in predominantly mid cap equity and equity related securitiesl High risk (Brown)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

An Open Ended Flexi-Theme Equity SchemeInvestment Objective: Seeks to generate long term capital growth from an actively managed portfolio of equity and equity related securities by investing primarily in sectors, areas and themes that play an important role in, and/or benefit from India’s progress, reform process and economic development.


% to NetAssets

Auto Tata Motors DVR 413.69 3.05%Auto Ancillaries Apollo Tyres 494.98 3.65%Banks ICICI Bank 687.75 5.07%Jammu & Kashmir Bank 605.51 4.46%Karnataka Bank 452.08 3.33%Dena Bank 402.54 2.97%Union Bank of India 267.87 1.97%United Bank of India 158.42 1.17%CementEverest Industries 331.59 2.44%HIL 155.34 1.14%ConstructionIRB Infrastructure Developers 492.75 3.63%National Buildings Construction Corporation 481.68 3.55%Construction ProjectsGammon Infrastructure Projects 189.22 1.39%Finance Rural Electrification Corporation 767.28 5.65%GasGujarat State Petronet 145.70 1.07%Industrial Capital GoodsBEML 449.38 3.31%Industrial Products FAG Bearings India 662.29 4.88%Minerals/MiningGujarat Mineral Development Corporation 400.41 2.95%Petroleum Products Hindustan Petroleum Corporation 865.40 6.38%Indian Oil Corporation 241.99 1.78%Power Reliance Infrastructure 438.66 3.23%JSW Energy 434.54 3.20%Power Grid Corporation of India 335.50 2.47%PTC India 275.00 2.03%CESC 242.53 1.79%ServicesAditya Birla Nuvo 430.02 3.17%Textile - Cotton Vardhman Textiles 259.78 1.91%TransportationGateway Distriparks 898.38 6.62%Gujarat Pipavav Port 624.94 4.60%Adani Ports and Special Economic Zone 461.83 3.40%Total 96.26%

HSBC Progressive Themes Fund (HPTF) May 2014

12


% to NetAssets


Asset AllocationAuto 3.05%Auto Ancillaries 3.65%Banks 18.97%Cement 3.58%Construction 7.18%Construction Project 1.39%Finance 5.65%Gas 1.07%Industrial Capital Goods 3.31%Industrial Products 4.88%Minerals/Mining 2.95%Petroleum Products 8.16%Power 12.72%Services 3.17%Textiles - Cotton 1.91%Transportation 14.62%Other Equity Investments 3.45%Reverse Repos/CBLOs 1.15%Net Current Assets -0.86%Total Net Assets 100.00%





HSBC Progressive Themes Dividend11-May-07 1.00 1.00 12.239026-May-08 1.00 1.00 13.7160

Date of Allotment 23-Feb-06Benchmark S&P BSE 200NAV (Growth) per unit(as on 30.05.14)

` 14.0544

Fund Manager Dhiraj SachdevSIP AvailableMinimumApplicationAmount

` 10,000` 1,000 p.m.(SIP)


Standard Deviation 1.15%R-Squared 0.7788Beta (Slope) 1.1256Sharpe Ratio** -0.0099Total Expense Ratio as on May 31, 2014




HSBC Progressive Themes Fund (HPTF) May 2014

13


This Product is suitable for investors who are seeking* :l To create wealth over long terml Invests in equity and equity related securities, primarily in themes that play an important role in India’s economic developmentl High risk (Brown)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

An Open Ended Equity Linked Savings Scheme (ELSS)Investment Objective: Aims to provide long term capital appreciation by investing in a diversified portfolio of equity & equity related instruments of companies across various sectors and industries, with no capitalisation bias. The Fund may also invest in fixed income securities.


% to NetAssets

Auto Maruti Suzuki India 666.39 3.62%Auto Ancillaries Motherson Sumi Systems 526.79 2.86%MRF 374.64 2.03%Amara Raja Batteries 352.42 1.91%Banks ICICI Bank 1,249.30 6.78%Indusind Bank 619.38 3.36%Axis Bank 600.42 3.26%Federal Bank 554.24 3.01%Jammu & Kashmir Bank 396.98 2.15%South Indian Bank 361.32 1.96%ING Vysya Bank 279.01 1.51%Cement Shree Cements 931.54 5.05%The Ramco Cements 529.09 2.87%Orient Cement 234.38 1.27%ConstructionJaiprakash Associates 299.51 1.63%Construction ProjectLarsen & Toubro 1,101.94 5.98%Consumer DurablesWhirlpool of India 352.18 1.91%Bajaj Electricals 297.53 1.61%Consumer Non DurablesI T C 800.03 4.34%McLeod Russel India 468.40 2.54%Britannia Industries 273.93 1.49%Ferrous MetalsJindal Steel & Power 208.43 1.13%Fertilisers Coromandel International 298.03 1.62%Finance LIC Housing Finance 673.08 3.65%Sundaram Finance 428.05 2.32%HDFC 298.11 1.62%GasPetronet LNG 287.40 1.56%Industrial Capital GoodsCrompton Greaves 535.02 2.90%Industrial ProductsSupreme Industries 490.77 2.66%OilOil & Natural Gas Corporation 510.50 2.77%Pharmaceuticals Ipca Laboratories 472.17 2.56%Divi's Laboratories 255.84 1.39%Lupin 248.03 1.35%PowerCESC 398.44 2.16%Software Infosys 593.76 3.22%Tech Mahindra 590.36 3.20%Mindtree 369.89 2.01%Total 97.26%

HSBC Tax Saver Equity Fund (HTSF) May 2014

14

Date of Allotment 05-Jan-07Benchmark S&P BSE 200NAV (Growth) per unit(as on 30.05.14)

` 21.2803

Fund Manager Aditya KhemaniSIP AvailableMinimumApplicationAmount

` 500(Lumpsum & SIP)



Regular 2.59% Direct Plan 1.89% Excludes service tax on Investment Management fees of 0.19% of Total Net Assets.Annualised Expense Ratio from 1st April 2014 onwards




% to NetAssets


Asset AllocationAuto 3.62%Auto Ancillaries 6.80%Banks 22.03%Cement 9.19%Construction 1.63%Construction Project 5.98%Consumer Durables 3.52%Consumer Non Durables 8.37%Ferrous Metals 1.13%Fertilisers 1.62%Finance 7.59%Gas 1.56%Industrial Capital Goods 2.90%Industrial Products 2.66%Oil 2.77%Pharmaceuticals 5.30%Power 2.16%Software 8.43%Other Equity Investments 1.86%Reverse Repos/CBLOs 1.36%Net Current Assets -0.48%Total Net Assets 100.00%





HSBC Tax Saver Equity Dividend19-Feb-10 1.00 1.00 12.8713

HSBC Tax Saver Equity Fund (HTSF) May 2014

15


This Product is suitable for investors who are seeking* :l To create wealth over long terml Invests in equity and equity related securities with no market capitilastion biasl High risk (Brown)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

An Open Ended Equity SchemeInvestment Objective: To provide long-term capital growth from a diversified portfolio of equity and equity related instruments. The focus would be to invest in stocks of companies facing “out-of-ordinary” conditions.


% to NetAssets

Auto Maruti Suzuki India 147.67 3.15%Tata Motors 73.46 1.57%Auto Ancillaries Motherson Sumi System 112.63 2.40%Amara Raja Batteries 111.18 2.37%MRF 102.30 2.18%Banks ICICI Bank 349.55 7.45%HDFC Bank 240.52 5.13%Karur Vysya Bank 148.33 3.16%Axis Bank 145.06 3.09%Federal Bank 127.93 2.73%Bank of Baroda 127.66 2.72%Indusind Bank 93.44 1.99%Jammu & Kashmir Bank 84.98 1.81%CementShree Cements 171.28 3.65%Grasim Industries 82.98 1.77%Construction ProjectLarsen & Toubro 226.03 4.82%Consumer Non DurablesI T C 275.73 5.88%McLeod Russel India 114.55 2.44%Ferrous MetalsTata Steel 72.10 1.54%FertilisersCoromandel International 71.81 1.53%FinanceLIC Housing Finance 165.54 3.53%Industrial Products Supreme Industries 152.46 3.25%Minerals/MiningNMDC 76.50 1.63%Non - Ferrous Metals Hindustan Zinc 110.02 2.34%Oil Oil & Natural Gas Corporation 236.34 5.04%Petroleum Products Reliance Industries 166.09 3.54%Bharat Petroleum Corporation 117.43 2.50%Pharmaceuticals Lupin 122.61 2.61%Divi's Laboratories 79.70 1.70%Software Infosys 177.10 3.77%HCL Technologies 155.83 3.32%Mindtree 100.40 2.14%Tech Mahindra 99.03 2.11%Total 98.86%

HSBC Unique Opportunities Fund (HUOF) May 2014

16


% to NetAssets


Asset AllocationAuto 4.72%Auto Ancillaries 6.95%Banks 28.08%Cement 5.42%Construction Project 4.82%Consumer Non Durables 8.32%Ferrous Metals 1.54%Fertilisers 1.53%Finance 3.53%Industrial Products 3.25%Minerals/Mining 1.63%Non - Ferrous Metals 2.34%Oil 5.04%Petroleum Products 6.04%Pharmaceuticals 4.31%Software 11.34%Other Equity Investments 0.76%Reverse Repos/CBLOs 0.86%Net Current Assets -0.48%Total Net Assets 100.00%

Date of Allotment 21-Mar-07Benchmark S&P BSE 200NAV (Growth) per unit(as on 30.05.14)

` 13.7580

Fund Manager Gaurav Mehrotra & Amaresh Mishra

SIP AvailableMinimumApplicationAmount

` 10,000` 1,000 p.m.(SIP)


Standard Deviation 0.83%R-Squared,m 0.9354Beta (Slope) 0.8869Sharpe Ratio** 0.0114Total Expense Ratio as on May 31, 2014

Regular 2.70% Direct Plan 2.00% Excludes service tax on Investment Management fees of 0.20% of Total Net Assets.Annualised Expense Ratio from 1st April 2014 onwards

Regular 2.70% Direct Plan 2.00% Excludes service tax on Investment Management fees of 0.20% of Total Net Assets.Portfolio Turnover 0.44


HSBC Unique Opportunities Fund (HUOF) May 2014

17

This Product is suitable for investors who are seeking* :l To create wealth over long terml Invests in equity and equity related securities of companies facing “out-of-ordinary” conditionsl High risk (Brown)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

An Open Ended SchemeInvestment Objective: To provide long term capital appreciation by allocating funds in equity and equity related instruments. It also has the flexibility to move, entirely if required, into debt instruments in times that the view on equity markets seems negative.


% to NetAssets

Auto Tata Motors 207.53 3.04%Maruti Suzuki India 204.46 3.00%Banks ICICI Bank 425.42 6.24%State Bank of India 381.34 5.59%Axis Bank 275.42 4.04%HDFC Bank 198.19 2.91%CementACC 100.28 1.47%Construction ProjectLarsen & Toubro 262.74 3.85%Consumer Non DurablesI T C 444.28 6.51%Minerals/Mining Sesa Sterlite 140.23 2.06%NMDC 68.00 1.00%Oil Oil & Natural Gas Corporation 189.08 2.77%Petroleum Products Reliance Industries 159.71 2.34%Bharat Petroleum Corporation 140.91 2.07%Pharmaceuticals Aurobindo Pharma 113.87 1.67%Sun Pharmaceutical Industries 103.81 1.52%PowerPower Grid Corporation Of India 122.00 1.79%Software Tata Consultancy Services 256.96 3.77%HCL Technologies 226.97 3.33%Telecom ServicesBharti Airtel 103.23 1.51%Transportation Adani Ports and Special Economic Zone 113.75 1.67%Total 62.15%

HSBC Dynamic Fund (HDF) May 2014

18


% to NetAssets

Other Equity Investments 206.03 3.03%Reverse Repos 2,254.63 33.06%CBLOs 191.65 2.81%Net Current Assets -69.80 -1.05%Total Net Assets as on 31 May 2014 6,820.65 100.00%

Asset AllocationAuto 6.04%Banks 18.78%Cement 1.47%Construction Project 3.85%Consumer Non Durables 6.51%Minerals/Mining 3.06%Oil 2.77%Petroleum Products 4.41%Pharmaceuticals 3.19%Power 1.79%Software 7.10%Telecom Services 1.51%Transportation 1.67%Other Equity Investments 3.03%Reverse Repos/CBLOs 35.87%Net Current Assets -1.05%Total Net Assets 100.00%

Date of Allotment 24-Sep-07Benchmark S&P BSE 200NAV (Growth) per unit(as on 30.05.14)

` 12.1124

Fund Manager Neelotpal Sahai(for Equity portion)Sanjay Shah (for Fixed Income portion)


` 10,000` 1,000 p.m.(SIP)






HSBC Dynamic Fund (HDF) May 2014

19

This Product is suitable for investors who are seeking* :l To create wealth over long terml Invests in equity and equity related securities and in debt instruments when view on equity markets is negativel High risk (Brown)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

Date of Allotment 17-Mar-08Benchmark MSCI Emerging

Markets IndexNAV (Growth) per unit(as on 30.05.14)

` 11.2525

Fund Manager Piyush Harlalka (Dedicated fund manager for overseas investments)


` 10,000` 1,000 p.m.(SIP)



Regular 2.70% Direct Plan 2.00% (inclusive of underlying scheme’s expenses) Excludes service tax on Investment Management fees of 0.11% of Total Net Assets.Annualised Expense Ratio from 1st April 2014 onwards

Regular 2.70% Direct Plan 2.00% (inclusive of underlying scheme’s expenses) Excludes service tax on Investment Management fees of 0.11% of Total Net Assets. Portfolio Turnover 0.46


Asset AllocationOverseas Mutual Fund 97.88%Reverse Repos/CBLOs 1.71%Net Current Assets 0.41%Total Net Assets 100.00%


% to NetAssets

Overseas Mutual FundHSBC GIF Glob Emerg Mkts Eq S1 Dis 1,304.25 97.88%Reverse Repos 20.94 1.57%CBLOs 1.78 0.13%Net Current Assets 5.58 0.41%Total Net Assets as on 31 May 2014 1,332.55 100.00%

An Open Ended SchemeInvestment Objective: To provide long term capital appreciation by investing in India and in the emerging markets, in equity and equity related instruments, share classes and units/securities issued by overseas mutual funds or unit trusts. The fund may also invest a limited proportion in domestic debt and money market instruments.

HSBC Emerging Markets Fund (HEMF) May 2014

20

This Product is suitable for investors who are seeking* :l To create wealth over long terml Investment in equity and equity related securities of Emerging economiesl High risk (Brown)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.


Date of Allotment 06-May-11Benchmark MSCI Brazil

10/40 IndexNAV (Growth) per unit(as on 30.05.14)

` 8.7732

Fund Manager Piyush Harlalka (Dedicated fund manager for overseas investments)


` 10,000` 1,000 p.m.(SIP)


Standard Deviation 1.24% R-Squared 0.3340Beta (Slope) 0.5280Sharpe Ratio** -0.0370Total Expense Ratio as on May 31, 2014


Regular 2.70% Direct Plan 2.00% (inclusive of underlying scheme’s expenses) Excludes service tax on Investment Managementfees of 0.11% of Total Net Assets. Portfolio Turnover 0.06


Asset AllocationOverseas Mutual Fund 99.04%Reverse Repos/CBLOs 3.41%Net Current Assets -2.45%Total Net Assets 100.00%


% to NetAssets

Overseas Mutual FundHSBC GIF BRAZIL EQUITY S3D 8,410.82 99.04%Reverse Repos 267.13 3.15%

CBLOs 22.71 0.27%

Net Current Assets -208.17 -2.45%

Total Net Assets as on 31 May 2014 8,492.49 100.00%

An Open-Ended Fund of Funds SchemeInvestment Objective: The primary investment objective of the Scheme is to provide long term capital appreciation by investing predominantly in units/shares of HSBC Global Investment Funds (HGIF) Brazil Equity Fund. The Scheme may, at the discretion of the Investment Manager, also invest in the units of other similar overseas mutual fund schemes, which may constitute a significant part of its corpus. The Scheme may also invest a certain proportion of its corpus in money market instruments and/or units of liquid mutual fund schemes, in order to meet liquidity requirements from time to time.

HSBC Brazil Fund (HBF) May 2014

21

This Product is suitable for investors who are seeking* :l To create wealth over long terml Invests in equity and equity related securities through feeder route in Brazilian marketsl High risk (Brown)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

Date of Allotment 24-Feb-2014Benchmark MSCI AC Asia

Pacific ex JapanNAV (Growth) per unit(as on 30.05.14)

` 10.2775

Fund Manager Piyush Harlalka (for overseas investments), Sanjay Shah (for investments in Indian Market)


` 10,000` 1,000 p.m.(SIP)


Standard Deviation 0.51%R-Squared 0.5042Beta (Slope) 0.6144Sharpe Ratio** -0.0014Total Expense Ratio as on May 31, 2014


Regular 2.30% Direct Plan 1.60%(inclusive of underlying scheme’s expenses) Excludes service tax on Investment Managementfees of 0.09% of Total Net Assets. Portfolio Turnover 0.08


Asset AllocationOverseas Mutual Fund 99.61%Reverse Repos/CBLOs 2.57%Net Current Assets -2.18%Total Net Assets 100.00%


% to NetAssets

Overseas Mutual FundHSBC GIF Asia Pacific (Ex Japan) EQ HD-S9D 5,290.63 99.61%Reverse Repos 125.97 2.37%

CBLOs 10.71 0.20%

Net Current Assets -115.78 -2.18%

Total Net Assets as on 31 May 2014 5,311.53 100.00%

An Open Ended Fund of Funds Scheme Investment Objective: The primary investment objective of the Scheme is to provide long term capital appreciation by investing predominantly in units of HSBC Global Investment Funds (HGIF) Asia Pacific Ex Japan Equity High Dividend Fund (HEHDF). The Scheme may also invest a certain proportion of its corpus in money market instruments and / or units of liquid mutual fund schemes, in order to meet liquidity requirements from time to time. However, there is no assurance that the investment objective of the Scheme will be achieved.

HSBC Asia Pacific (Ex Japan)Dividend Yield Fund (HAPDF)

May 2014

22

This Product is suitable for investors who are seeking* :l To create wealth over long terml Investment in equity and equity related securities of Asia Pacific countries (excluding Japan) through fund of funds routel High risk (Brown)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk


% to NetAssets

Mutual FundHSBC Equity Fund - Growth Direct 3,337.97 54.91%HSBC Income Fund Inv Plan Growth Direct 941.56 15.49%HSBC Midcap Equity Fund - Growth Direct 836.82 13.77%Overseas Mutual FundHSBC MSCI World Ucits ETF 572.43 9.42%Total 93.59%Other Mutual Fund Investments 30.09 0.49%Reverse Repos 300.06 4.94%CBLOs 125.46 2.06%Net Current Assets -65.85 -1.08%Total Net Assets as on 31 May 2014 6,078.54 100.00%

An Open Ended Fund of Funds Scheme Investment Objective: The objective of the Plan is to provide long term total return primarily by seeking capital appreciation through an active asset allocation with diversification commensurate with the risk profile of investments by investing predominantly in units of equity mutual funds as well as in a basket of debt mutual funds gold exchange traded funds (ETFs) and other ETFs, offshore mutual funds and money market instruments.

HSBC Managed Solutions India - Growth May 2014

23

Asset Allocation Mutual Fund 84.17%Overseas Mutual Fund 9.42%Other Mutual Fund Investments 0.49%Reverse Repos/CBLOs 7.00%Net Current Assets -1.08%Total Net Assets 100.00%

Date of Allotment 30-Apr-2014Benchmark Composite Index con-

stituting 80% of BSE 200 Index and 20% of CRISIL Composite Bond Index

NAV (Growth) per unit(as on 30.05.14)

` 10.9229

Fund Manager Piyush Harlalka (Dedicated Fund Manager for investments in foreign securities)Gaurav Mehrotra (For managing investments in Indian Market – Equity Portion) Sanjay Shah (For managing investments in Indian Market – Fixed Income Portion)


` 5,000` 1,000 p.m.(SIP)



Regular 2.34% Direct Plan 2.07% (inclusive of underlying scheme’s expenses) Excludes service tax on Investment Management fees of 0.00% of Total Net Assets and of 0.16% on the underlying scheme’s in which the fund of fund invests.Annualised Expense Ratio from 1st April 2014 onwards

Regular 2.12% Direct Plan 1.85%(inclusive of underlying scheme’s expenses) Excludes service tax on Investment Management fees of 0.00% of Total Net Assets and of 0.0014% on the underlying scheme’s in which the fund of fund invests. Portfolio Turnover 0.15


This Product is suitable for investors who are seeking* l To create wealth over long terml Investing predominantly in units of equity mutual funds as well as in a basket of debt mutual funds, gold & exchange traded funds, offshore mutual funds and money market instruments.l High risk (Brown)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk


% to NetAssets

Mutual Fund

HSBC Equity Fund - Growth Direct 3,655.28 37.38%HSBC Income Fund Inv Plan Growth Direct 2,076.39 21.23%HSBC Flexi Debt Fund Growth Direct 1,607.46 16.44%HSBC Midcap Equity Fund - Growth Direct 980.07 10.02%HSBC Inc Fund Short Term - Growth Direct 277.34 2.84%

Overseas Mutual Fund

HSBC MSCI World Ucits ETF 699.52 7.15%Total 95.06%Reverse Repos 638.21 6.53%CBLOs 54.25 0.55%Net Current Assets -210.08 -2.14%Total Net Assets as on 31 May 2014 9,778.44 100.00%

An Open Ended Fund of Funds Scheme Investment Objective: The objective of the fund is to provide long term total return aimed at capital appreciation and providing income through an active asset allocation with diversification commensurate with the risk profile of investments by investing in a basket of debt mutual funds, equity mutual funds, gold ETFs and other ETFs, offshore mutual funds and money market instruments.

HSBC Managed Solutions India - Moderate May 2014

24

Date of Allotment 30-Apr-2014Benchmark CRISIL Balanced

Fund Index NAV (Growth) per unit(as on 30.05.14)

` 10.6790

Fund Manager Piyush Harlalka (Dedicated Fund Manager for investments in foreign securities)Gaurav Mehrotra (For managing investments in Indian Market – Equity Portion) Sanjay Shah (For managing investments in Indian Market – Fixed Income Portion)


` 5,000` 1,000 p.m.(SIP)






Asset Allocation Mutual Fund 87.91%Overseas Mutual Fund 7.15%Reverse Repos/CBLOs 7.08%Net Current Assets -2.14%Total Net Assets 100.00%

This Product is suitable for investors who are seeking* l To create wealth and provide income over the long-terml Investments in a basket of debt mutual funds, equity mutual funds, gold & exchange traded funds, offshore mutual funds and money market instruments.l Medium risk (Yellow)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk


% to NetAssets

Mutual FundHSBC Inc Fund Short Term - Growth Direct 12,489.20 42.03%HSBC Flexi Debt Fund Growth Direct 10,474.60 35.25%HSBC Equity Fund - Growth Direct 3,348.20 11.27%HSBC Income Fund Inv Plan Growth Direct 2,025.75 6.82%HSBC Midcap Equity Fund - Growth Direct 966.66 3.25%Total 98.62%Reverse Repos 894.08 3.01%CBLOs 91.99 0.31%Net Current Assets -575.01 -1.94%Total Net Assets as on 31 May 2014 29,715.48 100.00%

An Open Ended Fund of Funds Scheme Investment Objective: The objective of the Plan is to provide long term total return aimed at providing income through an active asset allocation with diversification commensurate with the risk profile of investments by predominantly investing in units of debt mutual funds as well as in a basket of equity mutual funds, gold ETFs and other ETFs and money market instruments.

HSBC Managed Solutions India - Conservative May 2014

25

Date of Allotment 30-Apr-2014Benchmark Composite Index

constituting of 90% into CRISIL Composite Bond Index and 10% of BSE 200 Index

NAV (Growth) per unit(as on 30.05.14)

` 10.2921

Fund Manager Piyush Harlalka (Dedicated Fund Manager for investments in foreign securities)Gaurav Mehrotra (For managing investments in Indian Market – Equity Portion) Sanjay Shah (For managing investments in Indian Market – Fixed Income Portion) SIP AvailableMinimumApplicationAmount

` 5,000` 1,000 p.m.(SIP)






Asset Allocation Mutual Fund 98.62%Reverse Repos/CBLOs 3.32%Net Current Assets -1.94%Total Net Assets 100.00%


This Product is suitable for investors who are seeking*l To provide income over long-terml Investing predominantly in units of debt mutual funds as well as in a basket of equity mutual funds, gold & other exchange traded funds and money market instruments.l Medium risk (Yellow)* Investing predominantly in units of debt mutual funds as well as in a basket of equity mutual funds, gold & other exchange traded funds and money market instruments.

Name of Scheme Fund Manager

HSBC Equity Fund Neelotpal Sahai (from 27 May 2013)

HSBC India Opportunities Fund Neelotpal Sahai (from 27 May 2013)

HSBC Midcap Equity Fund Dhiraj Sachdev (from 01 December 2009)

HSBC Progressive Themes Fund Dhiraj Sachdev (from 01 December 2009)

HSBC Tax Saver Equity Fund Aditya Khemani (from 24 February 2009)

HSBC Unique Opportunities Fund Gaurav Mehrotra and Amaresh Mishra (from 02 July 2012)

HSBC Dynamic Fund For Equity portion: Neelotpal Sahai (from 27 May 2013) & For Debt portion: Sanjay Shah (from 14 August 2009)

HSBC Emerging Markets Fund Piyush Harlalka (from 02 July 2012)

HSBC Brazil Fund Piyush Harlalka (from 02 July 2012)

HSBC Asia Pacific (Ex Japan) Dividend Yield Fund

For overseas investments: Piyush Harlalka (from 24 February 2014) & For investment in Indian markets: Sanjay Shah (from 24 February 2014)

HSBC Managed Solutions For overseas investment : Piyush Harlalka (April 2014) , For Investments in Indian Mar-ket - Equity Portion : Gaurav Mehrotra (April 2014) & For Investments in Indian Market - Debt Portion : Sanjay Shah (April 2014)

Fund Manager’s ExperienceDhiraj Sachdev Senior Vice President and Fund Manager - EquitiesB.Com., ACA, Grad CWA, Diploma in Foreign Trade Management (DFTM)Experience:Over 17 years experience in Equity Research and Fund Management. l HSBC Asset Management (India) Private Ltd Senior Vice President & Fund Manager, from October 2011 to present, Senior Fund Manager from 1 December 2009 to September 2011, Head of Equity-Portfolio Management Services from October 2005 to November 2009 l ASK Raymond James Securities India Private Ltd Portfolio Manager from October 2003 to September 2005 l HDFC Bank Ltd Senior Manager Equities from November 1999 to September 2003 l DSQ Software Ltd Business Analyst from June 1999 to November 1999 l Probity Research & Services Ltd (India Infoline Ltd) Research Analyst from November 1998 to May 1999 l Ford Brothers Capital Services (P) Ltd Manager Research from July 1996 to Sept 1998 Gaurav MehrotraVice President & Assistant Fund ManagerPost Graduate Diploma in Business Management, Bachelor of EngineeringExperience: Over 8 years experience in research. l HSBC Asset Management (India) Private Ltd Vice President & Assistant Fund Manager, from April 2012 to present, Associate Vice President, Investment Management from September 2007 to March 2012 l JPMorgan Services India Private Ltd Equity Research from August 2005 to September 2007 l Tata Consultancy Services Ltd Business Analyst from June 2004 to July 2005

Fund Managers - Equity May 2014

26

Neelotpal Sahai Senior Fund Manager - EquitiesB.Tech, PGDM (IIM Kolkata) Experience:Over 18 years of experience in Research and Fund Management. l HSBC Asset Management (India) Private Ltd Senior Fund Manager – Equities from April 2013 onwards. l IDFC Asset Management Company Ltd. Director from February 2006 to April 2013 l Motilal Oswal Securities Ltd Senior Research Analyst from March 2005 to January 2006 l Infosys Ltd Senior Project Manager from June 1999 to March 2005 l Vickers Ballas Securities Ltd Analyst from September 1998 to June 1999 l SBC Warburg Analyst from May 1997 to May 1998 l UTI Securities Ltd Equity Analyst from June 1995 to May 1997

Aditya KhemaniVice President & Fund Manager - EquitiesB.Com. (Hons.), Post Graduate Diploma in Business ManagementExperience: Over 8 years experience in research. l HSBC Asset Management (India) Private Ltd Vice President & Fund Manager (Equity), from April 2012 to present, Assistant Fund Manager, Equities from February 2009 to March 2012; Associate Vice President - Investment Management from October 2007 to February 2009. l SBI Funds Management India Private Ltd Senior Manager - Equity Research from March 2007 to September 2007 l Prudential ICICI Asset Management Company India Private Ltd Assistant Manager - Equity Research from December 2005 to February 2007 l Morgan Stanley Advantage Services India Private Ltd Research Associate from May 2005 to November 2005

Amaresh Mishra Vice President & Assistant Fund ManagerPost Graduate Diploma in Business Manager Management Bachelor of Engineering (Chemical) Experience: Over 8 years of experience in Equities & Sales l HSBC Asset Management (India) Private Ltd Vice President & Assistant Fund Manager, from April 2012 to present, Associate Vice President, Investment Management from April 2008 to March 2012, Associate Vice President, Equities from October 2007 to March 2008; Associate Vice President, Sales and Distribution from March 2005 to September 2007 l Centre for Science and Environment Trainee Researcher from July 2001 to July 2002

Piyush Harlalka Vice President - Fixed Income M.B.A, (Finance), C.A., C.S. Experience:Over 7 years of experience in Research l HSBC Asset Management (India) Private Ltd

Vice President - Fixed Income from April 2012 to present; Associate Vice President - Fixed Income, from October 2010 to March 2012; Assistant Vice President, Investment Management, PMS, from December 2008 to October 2010; Research Analyst, from, July 2007 to November 2008. l Batlivala & Karanai Securities Pvt. Ltd., Research Analyst from April 2006 to June 2007

Fund Managers - Equity May 2014

27

Funds Managed by Neelotpal Sahai.

Comparative Performance of Equity Schemes May 2014

HSBC Equity Fund Date of Inception : 10 Dec 02Scheme Name & Benchmarks April 13 -

March 14April 12 - March 13

April 11 - March 12

Since Inception

HSBC Equity Fund - Growth 16.82% 4.20% -8.90% 24.34%S&P BSE 200 (Scheme Benchmark) 16.65% 5.41% -9.55% 18.72%CNX Nifty (Standard Benchmark) 17.53% 6.93% -9.13% 17.67%`10,000, if invested in HEF, would have become `11,682 `10,420 `9,110 `1,18,277

`10,000, if invested in S&P BSE 200, would have become `11,665 `10,541 `9,045 `69,977

`10,000, if invested in CNX Nifty, would have become `11,753 `10,693 `9,087 `63,309

HSBC India Opportunities Fund Date of Inception : 24 Feb 04Scheme Name & Benchmarks April 13 -


April 11 - March 12

Since Inception

HSBC India Opportunities Fund - Growth 27.93% 0.21% -3.60% 15.97%S&P BSE 500 (Scheme Benchmark) 16.44% 4.14% -9.47% 13.76%CNX Nifty (Standard Benchmark) 17.53% 6.93% -9.13% 13.77%`10,000, if invested in HIOF, would have become `12,793 `10,021 `9,640 `44,698



28

Data for the period April to March has been considered in all cases, except for ‘Since Inception’ returns. ‘Since Inception’ (%) returns are compounded annualised, other % returns are absolute. ‘Since inception’ returns are calculated on `10 invested at inception. Standard benchmark is prescribed by SEBI for long-term equity schemes and is used for comparison purposes. Returns on `10,000 are point-to-point returns for the specific time period, invested at the start of the period. The returns provided above have been rounded off and hence there may be minor differences between point-to-point returns vis-a-vis returns indicated above.

Past performance may or may not be sustained in the future. Refer note below.



HSBC Dynamic Fund Date of Inception : 24 Sep 07Scheme Name & Benchmarks April 13 -


April 11 - March 12

Since Inception

HSBC Dynamic Fund - Growth 13.20% 1.59% -8.24% 1.70%S&P BSE 200 (Scheme Benchmark) 16.65% 5.41% -9.55% 4.04%CNX Nifty (Standard Benchmark) 17.53% 6.93% -9.13% 4.82%`10,000, if invested in HDF, would have become `11,320 `10,159 `9,176 `11,160



Fund Managed by Neelotpal Sahai (for Equity portion)Sanjay Shah (for Fixed Income portion)


29

HSBC Brazil Fund Date Of Inception : 06 May 11Scheme Name & Benchmarks April 13 -


Since Inception

HSBC Brazil Fund - Growth -11.37% -2.50% -4.90%MSCI Brazil 10/40 Index (Scheme Benchmark) -14.46% -14.53% -13.38%CNX Nifty (Standard Benchmark) 17.53% 6.93% 6.71%`10,000, if invested in HBF, would have become `8,863 `9,750 `8,642

`10,000, if invested in MSCI Brazil 10/40 Index, would have become `8,554 `8,547 `6,587

`10,000, if invested in CNX Nifty, would have become `11,753 `10,693 `12,079


HSBC Emerging Markets Fund Date of Inception : 17 Mar 08Scheme Name & Benchmarks April 13 -


April 11 - March 12

Since Inception

HSBC Emerging Markets Fund - Growth 3.94% 4.55% -6.74% 1.37%MSCI Emerging Market Index (Scheme Benchmark) 0.81% 1.77% -7.26% 1.21%

CNX Nifty (Standard Benchmark) 17.53% 6.93% -9.13% 6.81%`10,000, if invested in HMEF, would have become `10,394 `10,455 `9,326 `10,856

`10,000, if invested in MSCI Emerging Market Index, would have become `10,081 `10,177 `9,274 `10,754



Funds Managed by - Piyush Harlalka.



30


Fund Managed by Gaurav Mehrotra and Amaresh Mishra.


HSBC Unique Opportunities Fund Date of Inception : 21 Mar 07Scheme Name & Benchmarks April 13 -


April 11 - March 12

Since Inception

HSBC Unique Opportunities Fund - Growth 17.03% 4.82% -9.79% 3.31%S&P BSE 200 (Scheme Benchmark) 16.65% 5.41% -9.55% 8.21%CNX Nifty (Standard Benchmark) 17.53% 6.93% -9.13% 8.55%`10,000, if invested in HUOF, would have become `11,703 `10,482 `9,021 `12,572



HSBC Tax Saver Equity Fund Date of Inception : 05 Jan 07Scheme Name & Benchmarks April 13 -


April 11 - March 12

Since Inception

HSBC Tax Saver Equity Fund - Growth 22.52% 11.90% -4.42% 9.52%S&P BSE 200 (Scheme Benchmark) 16.65% 5.41% -9.55% 6.82%CNX Nifty (Standard Benchmark) 17.53% 6.93% -9.13% 7.46%`10,000, if invested in HTSF, would have become `12,252 `11,190 `9,558 `19,315




Fund Managed by - Aditya Khemani.


31


HSBC Small Cap Fund Date of Inception : 24 Mar 08Scheme Name & Benchmarks April 13 -


April 11 - March 12

Since Inception

HSBC Small Cap Fund - Growth 35.67% -6.02% -18.39% 2.93%S&P BSE Small Cap (Scheme Benchmark) 19.09% -14.05% -20.74% 0.29%CNX Nifty (Standard Benchmark) 17.53% 6.93% -9.13% 6.42%`10,000, if invested in HSCF, would have become `13,567 `9,398 `8,161 `11,903

`10,000, if invested in S&P BSE Smallcap, would have become `11,909 `8,595 `7,926 `10,175



HSBC Progressive Themes Fund Date of Inception : 23 Feb 06Scheme Name & Benchmarks April 13 -


April 11 - March 12

Since Inception

HSBC Progressive Themes Fund - Growth 4.65% -10.58% -4.28% 1.06%S&P BSE 200 (Scheme Benchmark) 16.65% 5.41% -9.55% 9.56%CNX Nifty (Standard Benchmark) 17.53% 6.93% -9.13% 10.15%`10,000, if invested in HPTF, would have become `10,465 `8,942 `9,572 `10,896




Funds Managed by - Dhiraj Sachdev.

HSBC Midcap Equity Fund Date of Inception : 19 May 05Scheme Name & Benchmarks April 13 -


April 11 - March 12

Since Inception

HSBC Midcap Equity Fund - Growth 28.40% -8.82% -8.51% 9.51%S&P BSE Midcap (Scheme Benchmark) 13.86% -4.30% -9.14% 9.19%CNX Nifty (Standard Benchmark) 17.53% 6.93% -9.13% 14.67%`10,000, if invested in HMEF, would have become `12,840 `9,118 `9,149 `22,400

`10,000, if invested in S&P BSE Midcap, would have become `11,386 `9,570 `9,086 `21,818



An Open Ended Fund with Regular & Savings Plans.Monthly income is not assured and is subject to availability of distributable surplus.Investment Objective: Seeks to generate reasonable returns through investments in Debt and Money Market Instruments. The secondary objective of the scheme is to invest in equity and equity related instruments to seek capital appreciation.

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Money Market InstrumentsCertificate of DepositPunjab National Bank 468.85 2.72% Fitch A1+Canara Bank 468.79 2.72% CRISIL A1+Corporate/PSU DebtCorporate Bonds / DebenturesHDFC 1,192.75 6.91% CRISIL AAAIndian Railway Finance Corporation 929.70 5.39% CRISIL AAAPower Finance Corporation 723.70 4.19% CRISIL AAARural Electrification Corporation 506.82 2.94% CRISIL AAAPower Finance Corporation 501.26 2.91% CRISIL AAALIC Housing Finance 495.88 2.87% CRISIL AAABajaj Finance 300.10 1.74% [ICRA]AA+LIC Housing Finance 251.91 1.46% CRISIL AAANABARD 201.35 1.17% CRISIL AAAPower Finance Corporation 58.54 0.34% CRISIL AAARural Electrification Corporation 19.66 0.11% CARE AAAEquityEquitiesShree Cements 265.96 1.54%ICICI Bank 261.63 1.52%Larsen & Toubro 255.01 1.48%Orient Cement 219.30 1.27%McLeod Russel India 219.29 1.27%Oil & Natural Gas Corporation 207.98 1.21%Axis Bank 205.65 1.19%LIC Housing Finance 181.46 1.05%The Ramco Cements 180.27 1.04%ITC 179.42 1.04%Crompton Greaves 177.12 1.03%HDFC Bank 177.01 1.03% N.AMaruti Suzuki India 176.06 1.02%Grasim Industries 171.68 1.00%Supreme Industries 171.18 0.99%IndusInd Bank 162.85 0.94%IPCA Laboratories 147.47 0.85%Motherson Sumi Systems 146.10 0.85%Tech Mahindra 121.15 0.70%Amara Raja Batteries 112.42 0.65%Jaiprakash Associates 102.27 0.59%Karur Vysya Bank 96.55 0.56%MRF 93.21 0.54%Divi's Laboratories 83.04 0.48%HDFC 79.79 0.46%Havells India 79.57 0.46%Hindustan Dorr-Oliver 31.05 0.18%Government Securities8.83% GOVT OF INDIA RED 25-11-2023 1,679.60 9.74% Sovereign8.12% GOVT OF INDIA RED 10-12-2020 1,165.99 6.76% Sovereign8.35% GOVT OF INDIA RED 14-05-2022 1,099.39 6.37% Sovereign9.20% GOVT OF INDIA RED 30-09-2030 651.13 3.77% Sovereign7.16% GOVT OF INDIA RED 20-05-2023 585.51 3.39% Sovereign7.28% GOVT OF INDIA RED 03-06-2019 280.07 1.62% SovereignZero Coupon BondsHDFC 313.39 1.82% CRISIL AAATotal 93.88%

HSBC MIP - Savings Plan (HMIP-S) May 2014

32

Date of Allotment 24-Feb-04Benchmark CRISIL MIP

Blended IndexNAV (Growth) per unit(as on 30.05.14)

` 25.6662

Average Maturity of Portfolio

70.44 months

Modified Durationof Portfolio

47.97 months

Fund Manager Aditya Khemani(for Equity portion)Sanjay Shah &Ruchir Parekh(for Debt portion)

SIP AvailableMinimum Application AmountGrowth `10,000Quarterly Dividend `10,000Monthly Dividend `25,000SIP `1,000 p.m.Exit Load@ NilTotal Expense Ratio as on May 31 2014


Regular 2.34% Direct Plan 1.84% Excludes service tax on Investment Management fees of 0.00% of Total Net Assets. @ Effective from March 1, 2013 for prospective investments.

Asset AllocationCorporate/ PSU Debt 31.85%Government Securities 31.65%Equity 24.94%Money Market Instrument 5.44%Cash Equivalents 4.37%Net Current Assets 1.75%Total Net Assets 100.00%

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Cash EquivalentsCBLOs 59.09 0.34%Reverse Repos 695.12 4.03%Net Current Assets 298.96 1.75%Total Net Assets as on 31 May 2014 17,252.05 100.00%

Rating ProfileAAA and equivalents 35.55%Sovereign 31.65%Equity 24.94%Reverse Repos/ CBLOs 4.37%Net Current Assets 1.75%AA+/ AA-/ AA and equivalents 1.74%Total Net Assets 100.00%

HSBC MIP - Savings Plan (HMIP-S) May 2014

33





HSBC MIP - Savings Plan - Monthly Dividend28-Mar-14 0.05065 0.04851 12.491625-Apr-14 0.05065 0.04851 12.539826-May-14 0.05845 0.05597 12.9227HSBC MIP - Savings Plan - Monthly Dividend - Direct Plan28-Feb-14 0.05065 0.04851 12.315628-Mar-14 0.05065 0.04851 12.733825-Apr-14 0.05065 0.04851 12.7891HSBC MIP - Savings Plan - Quarterly Dividend13-Sep-13 0.15585 0.14926 11.915013-Dec-13 0.15585 0.14926 12.093314-Mar-14 0.15585 0.14926 12.3657HSBC MIP - Savings Plan - Quarterly Dividend - Direct Plan13-Dec-13 0.11689 0.11195 12.470314-Mar-14 0.15585 0.14926 12.8260


This Product is suitable for investors who are seeking* :l Regular Income over medium terml Investment in fixed income (debt and money market instruments) as well as equity and equity related securitiesl Medium risk (Yellow)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

An Open Ended Fund with Regular & Savings Plans. Monthly income is not assured and is subject to availability of distributable surplus.Investment Objective: Seeks to generate reasonable returns through investments in Debt and Money Market Instruments. The secondary objective of the scheme is to invest in equity and equity related instruments to seek capital appreciation.

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Corporate/PSU DebtCorporate Bonds / DebenturesNABARD 805.41 8.37% CRISIL AAAHDFC 795.16 8.26% CRISIL AAAIndian Railway Finance Corporation 538.25 5.59% CRISIL AAARural Electrification Corporation 506.82 5.27% CRISIL AAAPower Finance Corporation 501.26 5.21% CRISIL AAALIC Housing Finance 495.88 5.15% CRISIL AAAPower Finance Corporation 336.37 3.50% CRISIL AAALIC Housing Finance 251.91 2.62% CRISIL AAABajaj Finance 200.07 2.08% [ICRA]AA+EquityEquitiesShree Cements 91.46 0.95%ICICI Bank 82.96 0.86%Larsen & Toubro 81.91 0.85%Supreme Industries 76.67 0.80%McLeod Russel India 73.95 0.77%Axis Bank 73.45 0.76%ITC 71.76 0.75%Tech Mahindra 68.27 0.71%Maruti Suzuki India 67.40 0.70%Grasim Industries 66.76 0.69%Karur Vysya Bank 64.74 0.67%Oil & Natural Gas Corporation 64.29 0.67% N.A.LIC Housing Finance 63.67 0.66%HDFC Bank 61.60 0.64%Orient Cement 55.46 0.58%Amara Raja Batteries 55.45 0.58%IPCA Laboratories 52.84 0.55%Motherson Sumi Systems 51.63 0.54%HDFC 40.77 0.42%Jaiprakash Associates 36.53 0.38%Crompton Greaves 36.52 0.38%MRF 34.10 0.35%Havells India 28.14 0.29%Divi's Laboratories 27.26 0.28%Hindustan Dorr-Oliver 9.32 0.10%Government Securities8.83% GOVT OF INDIA RED 25-11-2023 951.10 9.88% Sovereign8.12% GOVT OF INDIA RED 10-12-2020 723.89 7.52% Sovereign8.35% GOVT OF INDIA RED 14-05-2022 628.22 6.53% Sovereign9.20% GOVT OF INDIA RED 30-09-2030 343.80 3.57% Sovereign7.16% GOVT OF INDIA RED 20-05-2023 288.25 3.00% Sovereign7.28% GOVT OF INDIA RED 03-06-2019 142.41 1.48% SovereignTotal 92.96%

HSBC MIP - Regular Plan (HMIP-R) May 2014

34

Date of Allotment 24-Feb-04Benchmark CRISIL MIP

Blended IndexNAV (Growth) per unit(as on 30.05.14)

` 21.8421


68.45 months


47.12 months

Fund Manager Aditya Khemani(for Equity portion)Sanjay Shah &Ruchir Parekh(for Debt portion)

SIP AvailableMinimum Application AmountGrowth `10,000Quarterly Dividend `10,000Monthly Dividend `25,000SIP `1,000 p.m.Exit Load@ NilTotal Expense Ratio as on May 31, 2014


Regular 2.49% Direct Plan 1.94% Excludes service tax on Investment Management fees of 0.00% of Total Net Assets.@ Effective from March 1, 2013 for prospective investments.

Asset AllocationCorporate/ PSU Debt 46.05%Government Securities 31.98%Equity 14.93%Cash Equivalents 5.02%Net Current Assets 2.02%Total Net Assets 100.00%

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Cash EquivalentsCBLOs 37.83 0.39%Reverse Repos 445.07 4.63%Net Current Assets 193.07 2.02%Total Net Assets as on 31 May 2014 9,621.68 100.00%

Rating ProfileAAA and equivalents 43.97%Sovereign 31.98%Equity 14.93%Reverse Repos/ CBLOs 5.02%AA+/ AA-/ AA and equivalents 2.08%Net Current Assets 2.02%Total Net Assets 100.00%

HSBC MIP - Regular Plan (HMIP-R) May 2014

35





HSBC MIP - Regular Plan - Monthly Dividend28-Mar-14 0.05065 0.04851 11.225025-Apr-14 0.05065 0.04851 11.247526-May-14 0.05065 0.04851 11.4644HSBC MIP - Regular Plan - Monthly Dividend - Direct Plan31-Jan-14 0.05065 0.04851 10.979128-Feb-14 0.05065 0.04851 11.0079HSBC MIP - Regular Plan - Quarterly Dividend13-Sep-13 0.15585 0.14926 11.232213-Dec-13 0.15585 0.14926 11.309714-Mar-14 0.15585 0.14926 11.4516


This Product is suitable for investors who are seeking* :l Regular Income over medium terml Investment in fixed income (debt and money market instruments) as well as equity and equity related securitiesl Medium risk (Yellow)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

An Open Ended Income SchemeInvestment Objective: Aims to provide reasonable income through a diversified portfolio of fixed income securities. The AMC’s view of interest rate trends and the nature of the Plans will be reflected in the type and maturities of securities in which the Short Term and Investment Plans are invested.

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Securitised DebtInvestments - Asset Back Security

India MBS 2002 Series I 18.90 0.18% CRISIL AAA (SO)

Corporate/PSU DebtCorporate Bonds / DebenturesIndian Railway Finance Corporation 831.84 7.82% CRISIL AAAState Bank of India 699.68 6.58% CRISIL AAAExport Import Bank of India 513.57 4.83% CRISIL AAAHDFC 397.58 3.74% CRISIL AAAHDFC 243.64 2.29% CRISIL AAARural Electrification Corporation 186.76 1.76% CARE AAAPower Finance Corporation 152.89 1.44% CRISIL AAAPower Finance Corporation 146.36 1.38% CRISIL AAAGovernment Securities8.83% GOVT OF INDIA RED 25-11-2023 1,998.32 18.79% Sovereign8.35% GOVT OF INDIA RED 14-05-2022 1,084.67 10.20% Sovereign9.20% GOVT OF INDIA RED 30-09-2030 979.30 9.21% Sovereign7.28% GOVT OF INDIA RED 03-06-2019 973.11 9.15% Sovereign8.12% GOVT OF INDIA RED 10-12-2020 699.60 6.58% Sovereign7.16% GOVT OF INDIA RED 20-05-2023 364.82 3.43% Sovereign8.24% GOVT OF INDIA RED 15-02-2027 158.23 1.49% Sovereign5.59% GOVT OF INDIA RED 04-06-2016 0.38 0.00% SovereignTotal 88.87%Cash EquivalentsCBLOs 113.35 1.07%Reverse Repos 1,333.48 12.54%Net Current Assets -263.21 -2.48%Total Net Assets as on 31 May 2014 10,633.26 100.00%

HSBC Income Fund - Investment Plan (HIF-IP) May 2014

36

Date of Allotment 10-Dec-02Benchmark CRISIL Composite

Bond Fund IndexNAV (Growth) per unit(as on 30.05.14)

` 21.3801


88.71 months


57.67 months

Yield To Maturity* 8.71%Fund Manager Ruchir Parekh &

Sanjay ShahSIP AvailableMinimumApplicationAmount

` 10,000` 1,000 p.m.(SIP)

Exit Load@ NilTotal Expense Ratio as on May 31, 2014 Regular 1.85%Direct Plan 1.10%Excludes service tax on Investment Management fees of 0.12% of Total Net Assets.

Annualised Expense Ratio from 1st April 2014 onwards Regular 1.85%Direct Plan 1.10%Excludes service tax on Investment Management fees of 0.12% of Total Net Assets.

@ Effective from March 1, 2013 for prospective investments.* Based on invested Amount

Asset AllocationGovernment Securities 58.85%Corporate/ PSU Debt 29.84%Cash Equivalents 13.61%Securitised Debt 0.18%Net Current Assets -2.48%





HSBC Income Fund - Investment Plan - Regular Option - Quarterly Dividend13-Sep-13 0.19482 0.18658 11.039413-Dec-13 0.15585 0.14926 10.819414-Mar-14 0.15585 0.14926 10.8448HSBC Income Fund - Investment Plan - Institutional Option - Quarterly Dividend12-Jun-09 0.11387 0.10598 11.029411-Sep-09 0.11387 0.10598 10.996011-Dec-09 0.11387 0.10598 11.0973

Rating ProfileSovereign 58.85%AAA and equivalents 30.02%Reverse Repos/ CBLOs 13.61%Net Current Assets -2.48%

HSBC Income Fund - Investment Plan (HIF-IP) May 2014

37


This Product is suitable for investors who are seeking* :l Regular Income over long terml Investment in diversified portfolio of fixed income securitiesl Low risk (Blue)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

An Open Ended Income SchemeInvestment Objective: Aims to provide reasonable income through a diversified portfolio of fixed income securities. The AMC’s view of interest rate trends and the nature of the Plans will be reflected in the type and maturities of securities in which the Short Term and Investment Plans are invested.

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Money Market InstrumentsCertificate of DepositCorporation Bank 4,681.91 5.44% CRISIL A1+Oriental Bank of Commerce 2,491.05 2.89% CRISIL A1+Corporation Bank 2,445.02 2.84% CRISIL A1+Corporation Bank 2,343.08 2.72% CRISIL A1+UCO Bank 2,330.39 2.71% CRISIL A1+Punjab National Bank 2,250.49 2.61% Fitch A1+Allahabad Bank 1,899.55 2.21% [ICRA]A1+Indian Bank 1,678.96 1.95% Fitch A1+State Bank of Patiala 1,477.86 1.72% [ICRA]A1+Bank of Baroda 1,406.43 1.63% [ICRA]A1+State Bank of Patiala 973.38 1.13% [ICRA]A1+Vijaya Bank 838.91 0.97% CARE A1+Oriental Bank of Commerce 459.15 0.53% CRISIL A1+Andhra Bank 398.93 0.46% CARE A1+Axis Bank 226.99 0.26% CRISIL A1+Corporation Bank 202.80 0.24% CRISIL A1+Oriental Bank of Commerce 187.89 0.22% CRISIL A1+ICICI Bank 185.78 0.22% [ICRA]A1+Kotak Mahindra Bank 166.63 0.19% CRISIL A1+State Bank of Patiala 151.60 0.18% [ICRA]A1+State Bank of Patiala 124.50 0.14% [ICRA]A1+Oriental Bank of Commerce 124.46 0.14% CRISIL A1+IndusInd Bank 98.01 0.11% CRISIL A1+ICICI Bank 96.51 0.11% [ICRA]A1+ING Vysya Bank 96.50 0.11% CRISIL A1+Yes Bank 96.48 0.11% [ICRA]A1+Yes Bank 92.06 0.11% [ICRA]A1+Yes Bank 23.33 0.03% CARE A1+Commercial PaperEdelweiss Financial Services 2,444.99 2.84% CRISIL A1+Vodafone India 2,330.52 2.71% CRISIL A1+Corporate/PSU Debt

Corporate Bonds / DebenturesLIC Housing Finance 4,614.24 5.36% CRISIL AAAExport Import Bank of India 4,063.33 4.72% CRISIL AAAPower Finance Corporation 4,010.07 4.66% CRISIL AAALIC Housing Finance 3,967.02 4.61% CRISIL AAAKotak Mahindra Prime 3,500.00 4.07% CRISIL AA+Power Finance Corporation 3,452.65 4.01% CRISIL AAAShriram Transport Finance Company 3,001.43 3.49% CRISIL AAKotak Mahindra Prime 2,509.86 2.92% CRISIL AA+HDFC 2,509.68 2.92% CRISIL AAARural Electrification Corporation 2,507.35 2.91% CRISIL AAARural Electrification Corporation 2,027.29 2.36% CRISIL AAALIC Housing Finance 1,511.44 1.76% CRISIL AAARural Electrification Corporation 1,510.49 1.75% CRISIL AAAPower Grid Corporation of India 1,493.14 1.73% CRISIL AAAPower Grid Corporation of India 1,475.33 1.71% CRISIL AAANABARD 1,007.55 1.17% CRISIL AAAPower Grid Corporation of India 1,005.71 1.17% CRISIL AAARural Electrification Corporation 1,004.49 1.17% CRISIL AAAPower Grid Corporation of India 993.08 1.15% CRISIL AAAPower Finance Corporation 507.40 0.59% CRISIL AAAHDFC 502.01 0.58% CRISIL AAAShriram Transport Finance Company 500.19 0.58% CRISIL AANABARD 362.08 0.42% CRISIL AAAHDFC 340.14 0.40% CRISIL AAAPower Finance Corporation 301.50 0.35% CRISIL AAALIC Housing Finance 140.58 0.16% CRISIL AAAExport Import Bank of India 120.49 0.14% CRISIL AAA

HSBC Income Fund - Short Term Plan (HIF-STP) May 2014

38

Date of Allotment 10-Dec-02Benchmark CRISIL Short Term


` 21.4298


21.02 months


16.92 months


Sanjay ShahSIP AvailableMinimumApplicationAmount

` 10,000` 1,000 p.m.(SIP)

Exit Load@ NilTotal Expense Ratio as on May 31, 2014 Regular 1.25%Institutional # 0.70%Institutional Plus # 0.60%Direct Plan 0.50%Excludes service tax on Investment Management fees of 0.05% of Total Net Assets.

Annualised Expense Ratio from 1st April 2014 onwards Regular 1.25%Institutional # 0.70%Institutional Plus # 0.60%Direct Plan 0.50%Excludes service tax on Investment Management fees of 0.05% of Total Net Assets.

@ Effective from March 1, 2013 for prospective investments.* Based on invested Amount# Plan(s) discontinued from accepting subscriptions w.e.f. October 01, 2012

Asset AllocationCorporate / PSU Debt 57.59%Money Market Instruments 37.53%Net Current Assets 2.58%Cash Equivalents 2.30%

Rating ProfileAAA and equivalents 84.06%AA+/ AA-/ AA and equivalents 11.06%

Net Current Assets 2.58%Reverse Repos/ CBLOs 2.30%





HSBC Income Fund - Short Term Plan - Regular Option - Monthly Dividend28-Mar-14 0.04971 0.04761 11.054725-Apr-14 0.05192 0.04972 11.057826-May-14 0.05952 0.05701 11.1075HSBC Income Fund - Short Term Plan - Monthly Dividend - Direct Plan28-Mar-14 0.08005 0.07667 11.135225-Apr-14 0.05712 0.05471 11.106026-May-14 0.06523 0.06247 11.1566HSBC Income Fund - Short Term Plan - Institutional Option - Monthly Dividend27-Dec-13 0.04864 0.04658 10.968724-Jan-13 0.06312 0.05410 10.635922-Feb-13 0.06114 0.05240 10.5969HSBC Income Fund - Short Term Plan - Institutional Plus Option - Monthly Dividend30-Dec-11 0.08478 0.07266 10.120027-Jan-12 0.05533 0.04742 10.086624-Feb-12 0.05663 0.04854 10.0881

HSBC Income Fund - Short Term Plan (HIF-STP) May 2014

39

Zero Coupon BondsHDFC 626.79 0.73% CRISIL AAATotal 95.12%Cash EquivalentsCBLOs 155.30 0.18%Reverse Repos 1,826.97 2.12%Net Current Assets 2,197.42 2.58%Total Net Assets as on 31 May 2014 86,069.15 100.00%


This Product is suitable for investors who are seeking* :l Regular Income over Medium terml Investment in diversified portfolio of fixed income securitiesl Low risk (Blue)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

An Open Ended Income SchemeInvestment Objective: Seeks to generate a reasonable return with commensurate risk through investments in floating rate debt instruments and fixed rate debt instruments swapped for floating rate returns. The Scheme may also invest in fixed rate money market and debt instruments.

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Money Market InstrumentsCertificate of DepositState Bank of Patiala 1,460.07 12.26% [ICRA]A1+Andhra Bank 1,296.51 10.89% CARE A1+ICICI Bank 997.54 8.38% [ICRA]A1+Oriental Bank of Commerce 936.18 7.86% CRISIL A1+Corporation Bank 684.60 5.75% CRISIL A1+Allahabad Bank 599.86 5.04% [ICRA]A1+Indian Bank 279.83 2.35% Fitch A1+Punjab National Bank 187.54 1.57% Fitch A1+Commercial PaperIndia Infoline Finance 1,381.16 11.60% [ICRA]A1+Sundaram Finance 1,364.07 11.46% [ICRA]A1+Vodafone India 932.21 7.83% CRISIL A1+Edelweiss Financial Services 489.00 4.11% CRISIL A1+Fixed DepositFixed DepositJammu & Kashmir Bank 1,200.00 10.08% Fixed DepositTotal 99.18%Cash EquivalentsCBLOs 18.08 0.15%Reverse Repos 153.86 1.29%Net Current Assets -72.62 -0.62%Total Net Assets as on 31 May 2014 11,907.88 100.00%

HSBC Floating Rate Fund - Long Term Plan (HFRF-LTP)

May 2014

40

Date of Allotment 16-Nov-04Benchmark CRISIL Liquid Fund

IndexNAV (Growth) per unit(as on 30.05.14)

` 20.3343


3.40 months


3.12 months

Yield To Maturity* 8.87%Fund Manager Sanjay Shah &

Ruchir ParekhSIP AvailableMinimumApplicationAmount

` 10,000` 1,000 p.m.(SIP)

Sub OptionsGrowth, Daily Dividend, Reinvestment Weekly Dividend, Reinvestment, Monthly Dividend (Payout & Reinvestment)Exit Load@ Nil

Total Expense Ratio as on May 31, 2014 Regular # 1.29% Institutional 0.74%Direct Plan 0.19% Excludes service tax on Investment Management fees of 0.01% of Total Net Assets. Annualised Expense Ratio from 1st April 2014 onwards Regular # 1.29% Institutional 0.74%Direct Plan 0.19% Excludes service tax on Investment Management fees of 0.01% of Total Net Assets. @ Effective from March 1, 2013 for prospective investments.* Based on invested Amount# Plan(s) discontinued from accepting subscriptions w.e.f. October 01, 2012

Asset AllocationMoney Market Instruments 89.10%Fixed Deposit 10.08%Cash Equivalents 1.44%Net Current Assets -0.62%





HSBC Floating Rate Fund - Long Term Plan - Regular Option - Monthly Dividend28-Mar-14 0.06000 0.05747 10.077025-Apr-14 0.04575 0.04382 10.058726-May-14 0.05612 0.05375 10.0720HSBC Floating Rate Fund - Long Term Plan - Monthly Dividend - Direct Plan26-May-14 0.03295 0.03156 10.0457HSBC Floating Rate Fund - Long Term Plan - Institutional Option - Monthly Dividend28-Feb-14 0.03694 0.03538 10.660828-Mar-14 0.17909 0.17152 10.699625-Apr-14 0.05133 0.04916 10.5356

Rating ProfileAAA and equivalents 89.10%Fixed Deposit 10.08%Reverse Repos/ CBLOs 1.44%Net Current Assets -0.62%

HSBC Floating Rate Fund - Long Term Plan (HFRF-LTP)

May 2014

41


This Product is suitable for investors who are seeking* :l Liquidity over short terml Investment in floating rate and fixed rate Debt and Money Market Instrumentsl Low risk (Blue)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.


An Open Ended Liquid SchemeInvestment Objective: Aims to provide reasonable returns, commensurate with low risk while providing a high level of liquidity, through a portfolio of money market and debt securities.

IssuerMarketValue

(` in Lacs)

% toNet

AssetsRating

Money Market InstrumentsCertificate of DepositAndhra Bank 9,995.41 4.17% CARE A1+Bank of Baroda 9,973.13 4.16% CRISIL A1+Corporation Bank 9,972.01 4.16% CRISIL A1+Dena Bank 4,998.87 2.08% CRISIL A1+State Bank of Travancore 4,997.76 2.08% CRISIL A1+Allahabad Bank 4,997.68 2.08% [ICRA]A1+Andhra Bank 4,987.62 2.08% CARE A1+Indian Bank 4,987.22 2.08% Fitch A1+Oriental Bank of Commerce 4,985.99 2.08% CRISIL A1+Union Bank of India 4,985.98 2.08% CRISIL A1+Union Bank of India 4,933.77 2.06% CRISIL A1+IDBI Bank 4,933.46 2.06% CRISIL A1+IDBI Bank 2,498.83 1.04% CRISIL A1+Canara Bank 2,498.24 1.04% CRISIL A1+Indian Bank 2,497.65 1.04% Fitch A1+Andhra Bank 2,495.28 1.04% CARE A1+Union Bank of India 2,493.60 1.04% CRISIL A1+Andhra Bank 2,493.28 1.04% CARE A1+Canara Bank 2,493.24 1.04% CRISIL A1+Canara Bank 2,485.94 1.04% CRISIL A1+Commercial PaperIndia Infoline Finance 12,461.58 5.20% [ICRA]A1+Sundaram Finance 7,498.24 3.13% [ICRA]A1+Magma Fincorp 7,496.42 3.13% CARE A1+Redington (India) 7,496.36 3.13% [ICRA]A1+Gruh Finance 7,491.27 3.12% CRISIL A1+Aditya Birla Finance 7,455.98 3.11% [ICRA]A1+Reliance Capital 7,389.47 3.08% CRISIL A1+Edelweiss Financial Services 4,993.72 2.08% CRISIL A1+Redington (India) 4,985.32 2.08% [ICRA]A1+Edelweiss Financial Services 4,984.94 2.08% CRISIL A1+L&T Infrastructure Finance Co. 4,970.99 2.07% CARE A1+Reliance Capital 4,969.22 2.07% [ICRA]A1+L&T Infrastructure Finance Co. 3,975.15 1.66% CARE A1+Fixed DepositFixed DepositCanara Bank 10,000.00 4.17% Fixed DepositVijaya Bank 10,000.00 4.17% Fixed DepositVijaya Bank 10,000.00 4.17% Fixed DepositIndusInd Bank 10,000.00 4.17% Fixed DepositUCO Bank 5,000.00 2.08% Fixed DepositPunjab & Sind Bank 5,000.00 2.08% Fixed DepositTreasury Bill91 DAYS TREASURY BILL RED 12-06-2014 5,486.15 2.29% Sovereign

Total 98.56 %Cash EquivalentsCBLOs 1,169.96 0.49%Reverse Repos 13,764.06 5.74%Net Current Assets -11,479.87 -4.79%

Total Net Assets as on 31 May 2014 2,39,813.94 100.00%

HSBC Cash Fund (HCF) May 2014

42

Date of Allotment 04-Dec-02Benchmark CRISIL Liquid Fund


` 1298.9036


0.52 months


0.47 months


Kapil PunjabiSIP AvailableMinimumApplicationAmount

` 10,000` 1,000 p.m.(SIP)

Sub OptionsGrowth, Daily Dividend, Reinvestment Weekly Dividend, Reinvestment, Monthly Dividend (Payout & Reinvestment) Exit Load@ Nil

Total Expense Ratio as on May 31, 2014 Regular # 1.00% Institutional # 0.35%Institutional Plus 0.15%Direct Plan 0.10%Currently there is no Service Tax levied due to nil Investment Management Fees being charged.

Annualised Expense Ratio from 1st April 2014 onwards Regular # 1.00% Institutional # 0.35%Institutional Plus 0.11%Direct Plan 0.06%Currently there is no Service Tax levied due to nil Investment Management Fees being charged.@ Effective from March 1, 2013 for prospective investments.* Based on invested Amount# Plan(s) discontinued from accepting subscriptions w.e.f. October 01, 2012





HSBC Cash Fund - Institutional Option - Monthly Dividend28-Mar-14 5.54689 5.31237 1007.174525-Apr-14 5.59575 5.35917 1007.237226-May-14 5.89904 5.64963 1007.6264HSBC Cash Fund - Monthly Dividend - Direct Plan26-May-14 5.92796 5.67733 1007.6081HSBC Cash Fund - Institutional Plus Option - Monthly Dividend26-Aug-11 0.04886 0.04686 10.138329-Sep-11 0.05876 0.05636 10.150928-Oct-11 0.05244 0.05030 10.1428

Asset AllocationMoney Market Instruments 75.43%Fixed Deposit 20.84%Cash Equivalents 6.23%Treasury Bill 2.29%Net Current Assets -4.79%

Rating ProfileAAA and equivalents 75.43%Fixed Deposit 20.84%Reverse Repos/ CBLOs 6.23%Sovereign 2.29%Net Current Assets -4.79%

HSBC Cash Fund (HCF) May 2014

43

Upon payment of dividend, the NAV per unit falls to the extent of payout and statutory levy, if any. Face value: `1,000 per unit.

This Product is suitable for investors who are seeking* :l Overnight Liquidity over short terml Invests in Money Market Instrumentsl Low risk (Blue)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.


HSBC Cash Fund 01 May 2014 to 04 May 2014***

05 May 2014 to 14 May 2014***

15 May 2014 to 19 May 2014***

20 May 2014 to 31 May 2014***

Average for the Month

Normal (erstwhile insti - plus) 0.06 0.13 0.02 0.15 0.11

Direct 0.01 0.08 0.01 0.10 0.07

*** Service tax on AMC fees is charged in addition to the above stated TERs .

Date of Allotment 05-Dec-03Benchmark I-Sec Composite


` 15.9477


84.49 months


56.68 months

Yield To Maturity* 8.57%Fund Manager Sanjay ShahSIP AvailableMinimum ` 10,000Application ` 1,000 p.m.(SIP)AmountExit Load@ Nil

Total Expense Ratio as on May 31, 2014 Regular 1.00% Direct Plan 0.50% Excludes service tax on Investment Management fees of 0.06% of Total Net Assets. Annualised Expense Ratio from 1st April 2014 onwards Regular 1.00% Direct Plan 0.50% Excludes service tax on Investment Management fees of 0.06% of Total Net Assets. @ Effective from March 1, 2013 for prospective investments.* Based on invested Amount

An Open Ended Gilt SchemeInvestment Objective: Aims to generate reasonable returns through investments in Government Securities of various maturities. The AMC’s view of interest rate trends and the nature of the plans will be reflected in the maturities of securities in which the Plans are invested.

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Government Securities7.28% GOVT OF INDIA RED 03-06-2019 56.96 24.24% Sovereign8.35% GOVT OF INDIA RED 14-05-2022 49.08 20.88% Sovereign8.12% GOVT OF INDIA RED 10-12-2020 38.87 16.54% Sovereign8.83% GOVT OF INDIA RED 25-11-2023 25.30 10.76% Sovereign9.20% GOVT OF INDIA RED 30-09-2030 20.84 8.87% Sovereign7.16% GOVT OF INDIA RED 20-05-2023 13.51 5.75% SovereignTotal 87.04%Cash EquivalentsCBLOs 2.01 0.86%Reverse Repos 23.69 10.08%Net Current Assets 4.77 2.02%Total Net Assets as on 31 May 2014 235.03 100.00%





HSBC Gilt Fund - Monthly Dividend31-Oct-08 0.06136 0.05711 10.807728-Nov-08 0.04193 0.03903 10.785526-Dec-08 0.03400 0.03164 10.7764

Asset AllocationGovernment Securities 87.04%Cash Equivalents 10.94%Net Current Assets 2.02%

Rating ProfileSovereign 87.04%Reverse Repos/ CBLOs 10.94%Net Current Assets 2.02%

HSBC Gilt Fund (HGF) May 2014

44


This Product is suitable for investors who are seeking* :l Regular Income over long terml Investment in Government Securitiesl Low risk (Blue)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.


An Open Ended Debt SchemeInvestment Objective: Seeks to provide liquidity and reasonable returns by investing primarily in a mix of short term debt and money market instruments.

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Money Market InstrumentsCertificate of DepositPunjab National Bank 1,781.64 8.01% Fitch A1+Corporation Bank 1,760.41 7.92% CRISIL A1+ICICI Bank 1,496.31 6.73% [ICRA]A1+Vijaya Bank 1,491.39 6.71% CARE A1+Oriental Bank of Commerce 1,404.27 6.31% CRISIL A1+Bank of Baroda 937.62 4.22% [ICRA]A1+Canara Bank 937.57 4.22% CRISIL A1+Andhra Bank 498.66 2.24% CARE A1+Indian Bank 373.10 1.68% Fitch A1+Commercial PaperSundaram Finance 2,046.11 9.20% [ICRA]A1+Vodafone India 1,398.31 6.29% CRISIL A1+India Infoline Finance 1,085.20 4.88% [ICRA]A1+Corporate/ PSU DebtCorporate Bonds / DebenturesLIC Housing Finance 1,538.08 6.92% CRISIL AAAKotak Mahindra Prime 1,000.00 4.50% CRISIL AA+Power Finance Corporation 986.47 4.44% CRISIL AAAHDFC 502.84 2.26% CRISIL AAAKotak Mahindra Prime 501.97 2.26% CRISIL AA+Shriram Transport Finance Company 500.19 2.25% CRISIL AAFixed DepositFixed DepositJammu & Kashmir Bank 1,300.00 5.85% Fixed DepositTotal 96.89%Cash EquivalentsCBLOs 114.54 0.51%Reverse Repos 418.48 1.88%Net Current Assets 167.51 0.71%Total Net Assets as on 31 May 2014 22,240.66 100.00%

HSBC Ultra Short Term Bond Fund (HUSBF) May 2014

45

Date of Allotment 17-Oct-06Benchmark Customised

Benchmark Index**NAV (Growth) per unit(as on 30.05.14)

` 11.5453


9.32 months


8.14 months


Ruchir ParekhSIP AvailableMinimum ` 10,000Application ` 1,000 p.m.(SIP)Amount

Sub OptionsGrowth, Daily Dividend, Reinvestment Weekly Dividend, Reinvestment, Monthly Dividend (Payout & Reinvestment)Exit Load@ NilTotal Expense Ratio as on May 31, 2014 Regular # 1.29% Institutional 0.99%Institutional Plus # 0.24%Direct Plan 0.34%Excludes service tax on Investment Management fees of 0.03% of Total Net Assets.

Annualised Expense Ratio from 1st April 2014 onwards Regular # 1.28% Institutional 0.98%Institutional Plus # 0.23%Direct Plan 0.33%Excludes service tax on Investment Management fees of 0.03% of Total Net Assets.

@ Effective from March 1, 2013 for prospective investments.** Composite index of CRISIL Liquid Fund Index(90%) and CRISIL Short Term Bond Fund Index(10%).* Based on invested Amount# Plan(s) discontinued from accepting subscriptions w.e.f. October 01, 2012

Asset AllocationMoney Market Instruments 68.41%Corporate/ PSU Debt 22.63%Fixed Deposit 5.85%Cash Equivalents 2.40%Net Current Assets 0.71%

Rating ProfileAAA and equivalents 82.03%AA+/ AA-/ AA and equivalents 9.01%Fixed Deposit 5.85%Reverse Repos/ CBLOs 2.40%Net Current Assets 0.71%





HSBC Ultra Short Term Bond Fund - Institutional Option - Monthly Dividend28-Mar-14 0.07855 0.07523 10.227625-Apr-14 0.04780 0.04578 10.188126-May-14 0.07115 0.06814 10.2181HSBC Ultra Short Term Bond Fund - Institutional Plus Option - Monthly Dividend28-Jan-11 0.04829 0.04501 10.382125-Feb-11 0.04125 0.03845 10.374125-Mar-11 0.05214 0.04859 10.3865

HSBC Ultra Short Term Bond Fund (HUSBF) May 2014

46


HSBC Ultra Short Term Bond Fund

01 May 2014 to 04 May 2014***

05 May 2014 to 14 May 2014***

15 May 2014 to 19 May 2014***

20 May 2014 to 31 May 2014***

Average for the Month

Normal (erstwhile institutional plan) 0.25 0.25 0.25 0.25 0.25

Direct 0.35 0.35 0.35 0.35 0.35

*** Service tax on AMC fees is charged in addition to the above stated TERs .

This Product is suitable for investors who are seeking* :l Liquidity over short terml Investment in Debt / Money Market Instrumentsl Low risk (Blue)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

An Open Ended Debt SchemeInvestment Objective: Seeks to deliver returns in the form of interest income and capital gains, along with high liquidity, commensurate with the current view on the markets and the interest rate cycle, through active invest-ment in debt and money market instruments.

IssuerMarketValue

(` in Lacs)

% toNet

AssetsRating

Money Market InstrumentsCertificate of DepositVijaya Bank 2,330.30 4.36% CARE A1+

Canara Bank 937.57 1.75% CRISIL A1+

Corporate/PSU DebtCorporate Bonds / DebenturesIndian Railway Finance Corporation 5,039.96 9.43% CRISIL AAA

Power Finance Corporation 3,883.50 7.26% CRISIL AAA

State Bank of India 3,798.25 7.11% CRISIL AAA

HDFC 2,192.79 4.10% CRISIL AAA

LIC Housing Finance 2,015.26 3.77% CRISIL AAA

Shriram Transport Finance Company 2,000.77 3.74% CRISIL AA

Rural Electrification Corporation 1,759.46 3.29% CARE AAA

HDFC 596.37 1.12% CRISIL AAA

Power Finance Corporation 282.96 0.53% CRISIL AAA

Government Securities8.83% GOVT OF INDIA RED 25-11-2023 6,981.46 13.06% Sovereign

9.20% GOVT OF INDIA RED 30-09-2030 4,776.68 8.94% Sovereign





8.24% GOVT OF INDIA RED 15-02-2027 800.76 1.50% Sovereign

Zero Coupon BondsHDFC 313.39 0.59% CRISIL AAA

Total 96.43%Cash EquivalentsCBLOs 284.22 0.53%Reverse Repos 3,343.67 6.26%Net Current Assets -1,715.22 -3.22%Total Net Assets as on 31 May 2014 53,455.63 100.00%

HSBC Flexi Debt Fund (HFDF) May 2014

47

Date of Allotment 05-Oct-07Benchmark CRISIL Composite


` 17.2986


80.06 months


52.79 months


Ruchir ParekhSIP AvailableMinimum ` 10,000Application ` 1,000 p.m.(SIP)AmountExit Load@ Nil

Total Expense Ratio as on May 31, 2014 Regular # 1.85%Institutional 1.60% Direct Plan 0.85%Excludes service tax on Investment Management fees of 0.06% of Total Net Assets.Annualised Expense Ratio from 1st April 2014 onwards Regular # 1.85%Institutional 1.60% Direct Plan 0.85%Excludes service tax on Investment Management fees of 0.06% of Total Net Assets.@ Effective from March 1, 2013 for prospective investments.* Based on invested Amount# Plan(s) discontinued from accepting subscriptions w.e.f. October 01, 2012





HSBC Flexi Debt Fund - Regular Option - Monthly Dividend26-Apr-13 0.05836 0.04973 10.494931-May-13 0.11214 0.10740 10.671828-Jun-13 0.03263 0.03125 10.4175HSBC Flexi Debt Fund - Institutional Option - Monthly Dividend28-Mar-14 0.09339 0.08944 10.705525-Apr-14 0.05770 0.05526 10.659726-May-14 0.11711 0.11216 10.7360HSBC Flexi Debt Fund - Monthly Dividend - Direct Plan26-May-14 0.12405 0.11880 10.8739HSBC Flexi Debt Fund - Regular Option - Quarterly Dividend13-Sep-13 0.19482 0.18658 11.671013-Dec-13 0.15585 0.14926 11.463114-Mar-14 0.15585 0.14926 11.5043HSBC Flexi Debt Fund - Institutional Option - Quarterly Dividend13-Sep-13 0.19482 0.18658 11.590213-Dec-13 0.15585 0.14926 11.389114-Mar-14 0.15585 0.14926 11.4358HSBC Flexi Debt Fund - Quarterly Dividend - Direct Plan14-Mar-14 0.15585 0.14926 11.5588HSBC Flexi Debt Fund - Regular Option - Half Yearly Dividend16-Mar-12 0.35236 0.30201 11.267214-Sep-12 0.35236 0.30201 11.431515-Mar-13 0.35236 0.30201 11.6629HSBC Flexi Debt Fund - Institutional Option - Half-yearly Dividend15-Mar-13 0.35236 0.30201 10.9757HSBC Flexi Debt Fund - Half-yearly Dividend - Direct Plan13-Sep-13 0.31171 0.29853 10.7220

Asset AllocationGovernment Securities 49.38%Corporate / PSU Debt 40.94%Cash Equivalents 6.79%Money Market Instruments 6.11%Net Current Assets -3.22%

Rating ProfileSovereign 49.38%AAA and equivalents 43.31%Reverse Repos/ CBLOs 6.79%AA+/ AA-/ AA and equivalents 3.74%Net Current Assets -3.22%

HSBC Flexi Debt Fund (HFDF) May 2014

48


This Product is suitable for investors who are seeking* :l Regular Income over long terml Investment in Debt / Money Market Instrumentsl Low risk (Blue)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

Name of Scheme Fund Manager

HSBC MIP - Savings & Regular Plan

For Debt portion: Sanjay Shah (from 14 August 2009) & Ruchir Parekh (from 25 January 2011) & For Equity portion: Aditya Khemani (from 24 February 2009)

HSBC Income Fund - Investment Plan

Ruchir Parekh (from 25 January 2011) &Sanjay Shah (from 09 January 2009)

HSBC Income Fund - Short Term Plan

Ruchir Parekh (from 25 January 2011) &Sanjay Shah (from 09 January 2009)

HSBC Floating Rate Fund Long Term Plan

Sanjay Shah (from 09 January 2009) & Ruchir Parekh (from 22 September 2012)

HSBC Cash Fund Ruchir Parekh (from 25 January 2011) &Kapil Punjabi (from 14 March 2014)

HSBC Gilt Fund Sanjay Shah (from 09 January 2009)

HSBC Ultra Short Term Bond Fund

Sanjay Shah (from 22 September 2012) & Ruchir Parekh (from 22 September 2012)

HSBC Flexi Debt Fund Sanjay Shah (from 09 January 2009) &Ruchir Parekh (from 25 January 2011)

Fund Managers - MIP & Debt May 2014

49

Fund Manager’s Experience

Sanjay Shah Senior Vice President Head - Fixed IncomeB. Com, A.C.A., Post Graduate Diploma in ManagementExperience:Over 14 years of experience in research and risk l HSBC Asset Management (India) Private Ltd Senior Vice President & Fund Manager, Fixed Income since October 2011 to present, Vice President & Fund Manager, Fixed Income since December 2008 to September 2011. l FIL Fund Management Private Ltd Credit Analyst from September 2008 to December 2008 l Lehman Brothers Structured Financial Services Private Ltd Vice President, Convertible Products from September 2006 to Sep tember 2008 l Rabo India Finance Private Ltd Senior Manager – Credit Risk from July 2004 to September 2006 l ICICI Bank Ltd Manager, Credit Risk from January 2003 to June 2004 l SBI Funds Management Private Ltd Chief Manager, Debt Funds from June 1999 to January 2003

Fund Managers - MIP & Debt May 2014

50

Kapil Punjabi Vice President & Fund Manager - Fixed Income B.M.S, M.M.S (Mumbai University) Experience:Over 7 years of experience in research and Fund Management l HSBC Asset Management (India) Private Ltd. Vice President & Fund Manager - Fixed Income from March 04, 2014 onwards. l Taurus Asset Management Company Limited Fund Manager Fixed Income from June 07, 2012 to February 27, 2014. l Edelweiss Asset Management Limited Fund Manager Fixed Income from December 05, 2009 to June 06, 2012. l Edelweiss Securities Limited Manager - Investments from October 2007 to November 2009 l Trans Market Group Research (India) Private Limited Research Analyst and Proprietary Trader from May 2006 to October 2007.

Ruchir ParekhSenior Vice President and Fund Manager - Fixed IncomeMBA, B.ComExperience:Over 16 years of experience in research and fixed income management l HSBC Asset Management (India) Private Ltd Senior Vice President & Fund Manager, Fixed Income since September 2011 to present, Vice President & Fund Manager, Fixed Income since January 2011 to September 2011. l AIG Global Asset Management (India) Private Ltd Fund Manager, Fixed Income from April 2007 - January 2011 l HDFC Asset Management Company Ltd Sr. Manager, Fixed Income Analyst from February 2003 - April 2007 l Bear Stearns & Co., New York, NY Fixed Income Analyst from October 2000 - March 2002 l Moodys Investors Service, New York, NY Senior Associate from June 1997 - October 2000

Comparative Performance of Debt Schemes May 2014

51

Data for the period April to March has been considered in all cases, except for ‘Since Inception’ returns. ‘Since Inception’ (%) returns are compounded annualised, other % returns are simple annualised. ‘Since inception’ returns are calculated on `10 invested at inception. Standard benchmark is prescribed by SEBI and is used for comparison purposes. Returns on ̀ 10,000 are point-to-point returns for the specific time period, invested at the start of the period. The returns provided above have been rounded off and hence there may be minor differences between point-to-point returns vis-a-vis returns indicated above.

HSBC MIP - Regular Plan Date of Inception : 24 Feb 04Scheme Name & Benchmarks April 13 -


April 11 - March 12

Since Inception

HSBC MIP - Regular Plan - Growth 6.60% 10.07% 5.20% 7.67%Crisil MIP Blended Index (Scheme Benchmark) 6.42% 9.09% 5.26% 7.12%Crisil 1 Year T-Bill Index (Standard Benchmark) 5.78% 8.37% 6.59% 5.45%Crisil 10 Year Gilt Index (Standard Benchmark) -0.79% 11.31% 2.41% 4.21%`10,000, if invested in HMIP - R, would have become `10,660 `11,007 `10,520 `21,103

`10,000, if invested in Crisil MIP Blended Index, would have become `10,642 `10,909 `10,526 `20,049

`10,000, if invested in Crisil 1 Year T-Bill Index, would have become `10,578 `10,837 `10,659 `17,090

`10,000, if invested in Crisil 10 Year Gilt Index, would have become `9,921 `11,131 `10,241 `15,170

HSBC MIP - Savings Plan Date of Inception : 24 Feb 04Scheme Name & Benchmarks April 13 -


April 11 - March 12

Since Inception

HSBC MIP - Savings Plan - Growth 8.99% 10.74% 4.94% 9.30%Crisil MIP Blended Index (Scheme Benchmark) 6.42% 9.09% 5.26% 7.12%Crisil 1 Year T-Bill Index (Standard Benchmark) 5.78% 8.37% 6.59% 5.45%Crisil 10 Year Gilt Index (Standard Benchmark) -0.79% 11.31% 2.41% 4.21%`10,000, if invested in HMIP - S, would have become `10,899 `11,074 `10,494 `24,561

`10,000, if invested in Crisil MIP Blended Index, would have become `10,642 `10,909 `10,526 `20,049



Funds Managed by - Sanjay Shah & Ruchir Parekh (for Debt portion) &Aditya Khemani (for Equity portion)



HSBC Gilt Fund Date of Inception : 05 Dec 03Scheme Name & Benchmarks April 13 -


April 11 - March 12

Since Inception

HSBC Gilt Fund - Growth 1.99% 12.37% 8.15% 4.30%I-Sec Composite Index (Scheme Benchmark) 3.95% 11.71% 6.77% 6.50%Crisil 10 Year Gilt Index (Standard Benchmark) -0.79% 11.31% 2.41% 4.20%`10,000, if invested in HGF, would have become `10,199 `11,237 `10,815 `15,453

`10,000, if invested in I-Sec Composite Bond Fund Index, would have become `10,395 `11,171 `10,677 `19,156


Fund Managed by - Sanjay Shah.



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47

HSBC FRF - LTP - Regular Plan Date of Inception : 16 Nov 04Scheme Name & Benchmarks April 13 -


April 11 - March 12

Since Inception

HSBC FRF - LTP - Growth 9.21% 9.17% 9.38% 7.68%Crisil Liquid Fund Index (Scheme Benchmark) 9.46% 8.22% 8.45% 6.96%Crisil 1 Year T-Bill Index (Standard Benchmark) 5.78% 8.37% 6.59% 5.67%

`10,000, if invested HFRF - LTP, would have become `10,921 `10,917 `10,938 `20,014

`10,000, if invested in Crisil Liquid Fund Index, would have become `10,946 `10,822 `10,845 `18,798


Funds Managed by - Sanjay Shah & Ruchir Parekh.


HSBC Ultra Short Term Bond Fund$ Date of Inception : 17 Oct 06Scheme Name & Benchmarks April 13 - March 14 Since InceptionHSBC Ultra Short Term Bond Fund - Growth 9.04% 8.91%Customised Benchmark Index (Scheme Benchmark)* 8.60% 8.18%

Crisil 1 Year T-Bill Index (Standard Benchmark) 5.78% 6.59%

`10,000, if invested in HUSTBF, would have become `10,904 `11,365

`10,000, if invested in Customised Benchmark Index, would have become `10,860 `11,250

`10,000, if invested in Crisil 1 Year T-Bill Index, would have become `10,578 `11,004


HSBC Flexi Debt Fund Date of Inception: 05 Oct 07Scheme Name & Benchmarks April 13 -


April 11 - March 12

Since Inception

HSBC Flexi Debt Fund - Growth 3.69% 11.26% 9.54% 8.38%Crisil Composite Bond Fund Index (Scheme Benchmark) 4.34% 9.27% 7.68% 6.54%

Crisil 10 Year Gilt Index (Standard Benchmark) -0.79% 11.31% 2.41% 5.49%`10,000, if invested in HFDF, would have become `10,369 `11,126 `10,954 `16,862

`10,000, if invested in Crisil Composite Bond Fund Index, would have become `10,434 `10,927 `10,768 `15,091



*Composite index of Crisil Liquid Fund Index(90%) and Crisil Short Term Bond Fund Index(10%).

$Pursuant to SEBI circular dated Sept 13, 2012, certain Plans/options within the schemes have been discontinued to comply with a single plan structure. Since there was no continuous NAV history available for the surviving Plan prior to 1 October 2012, returns since the said date have been considered for calculating performance. The inception date of HSBC Ultra Short Term Bond Fund however is 17 October 2006.


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HSBC Income Fund - Investment Plan Date of Inception : 10 Dec 02Scheme Name & Benchmarks April 13 -


April 11 - March 12

Since Inception

HSBC Income Fund - Investment Plan - Growth 1.85% 11.19% 8.86% 6.65%Crisil Composite Bond Fund Index (Scheme Benchmark) 4.34% 9.27% 7.68% 5.72%

Crisil 10 Year Gilt Index (Standard Benchmark) -0.79% 11.31% 2.41% 5.03%`10,000, if invested in HIF - IP, would have become `10,185 `11,119 `10,886 `20,725

`10,000, if invested in Crisil Composite Bond Fund Index, would have become `10,434 `10,927 `10,768 `18,767


HSBC Income Fund - S T P Date of Inception : 10 Dec 02Scheme Name & Benchmarks April 13 -


April 11 - March 12

Since Inception

HSBC Income Fund - S T P - Growth 7.23% 9.26% 8.41% 6.80%Crisil Short Term Bond Fund Index (Scheme Benchmark) 8.79% 9.09% 8.28% 6.64%

Crisil 1 Year T-Bill Index (Standard Benchmark) 5.78% 8.37% 6.59% 5.44%

`10,000, if invested in HIF -ST, would have become `10,723 `10,926 `10,841 `21,047

`10,000, if invested in Crisil Short Term Bond Fund Index, would have become `10,879 `10,909 `10,828 `20,691


Funds Managed by - Ruchir Parekh & Sanjay Shah.



HSBC Cash Fund@ Date of Inception: 04 Dec 02Scheme Name & Benchmarks

Last 7 Days as on 31

March 2014

Last 15 Days as on 31

March 2014

Last 30 Days as on 31 March

2014

April 13 - March 14

April 12 - March 13

Since Inception

HSBC Cash Fund - Growth 10.31% 9.92% 9.44% 9.42% 8.91% 8.98%

Crisil Liquid Fund Index (Scheme Benchmark)

13.20% 12.94% 11.69% 9.46% 8.22% 8.76%

Crisil 91 Day T-Bill Index (Standard Benchmark)

12.05% 11.69% 10.15% 8.55% 8.49% 8.24%

`10,000, if invested in HCF, would have become

`10,020 `10,041 `10,078 `10,942 `10,891 `12,802

`10,000, if invested in Crisil Liquid Fund Index, would have become

`10,025 `10,053 `10,096 `10,946 `10,822 `12,727

`10,000, if invested in Crisil 91 Day T-Bill Index, would have become

`10,023 `10,048 `10,083 `10,855 `10,849 `12,554


@Pursuant to SEBI circular dated Sept 13, 2012, certain Plans/options within the schemes have been discontinued to comply with a single plan structure. Since there was no continuous NAV history available for the surviving Plan prior to 19 May 2011, returns since the said date have been considered for calculating performance. The inception date of HSBC Cash Fund however is 4 December 2002.

Fund Managed by - Ruchir Parekh & Kapil Punjabi.

Statutory Details & Disclaimers

All returns have been sourced from MutualFundsIndia Explorer software unless otherwise stated. With regard to equity schemes (including the equity component of MIPs), Fund performance is calculated on a total return basis (i.e. it includes dividends re-invested) while the benchmark is calculated on a price return basis (i.e. it does not consider dividends re-invested). This document has been prepared by HSBC Asset Management (India) Private Ltd (HSBC) for information purposes only and should not be construed as an offer or solicitation of an offer for purchase of any of the funds of HSBC Mutual Fund. All information contained in this document (including that sourced from third parties), is obtained from sources HSBC, the third party believes to be reliable but which it has not independently verified and HSBC, the third party makes no guarantee, representation or warranty and accepts no responsibility or liability as to the accuracy or completeness of such information. The information and opinions contained within the document are based upon publicly available information and rates of taxation applicable at the time of publication, which are subject to change from time to time. Expressions of opinion are those of HSBC only and are subject to change without notice. It does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies that may have been discussed or recommended in this report and should understand that the views regarding future prospects may or may not be realized. Neither this document nor the units of HSBC Mutual Fund have been registered in any jurisdiction. The distribution of this document in certain jurisdictions may be restricted or totally prohibited and accordingly, persons who come into possession of this document are required to inform themselves about, and to observe, any such restrictions. Mutual fund investments are subject to market risks. Please read the Scheme Information Document carefully before investing.

Investors should not invest in the Scheme solely based on the information provided in this document and should read the Combined Scheme Information Document and, Statement of Additional Information of the Fund for details. This document does not constitute an offering document. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, on any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, with-out the prior written permission of HSBC Asset Management (India) Private Ltd.

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

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