The Asset Factsheet March 2016

Transcription

1 The Asset Factsheet March 2016

2 Index Fund Manager Commentary HSBC Equity Fund HSBC India Opportunities Fund HSBC Midcap Equity Fund HSBC Infrastructure Equity Fund HSBC Tax Saver Equity Fund HSBC Dynamic Fund HSBC Dividend Yield Equity Fund HSBC Emerging Markets Fund HSBC Asia Pacific (Ex Japan) Dividend Yield Fund HSBC Brazil Fund HSBC Managed Solutions India - Growth HSBC Managed Solutions India - Moderate HSBC Managed Solutions India - Conservative HSBC Global Consumer Opportunities Fund Fund Managers - Equity Comparative Performance of Equity Schemes Performance of Equity Schemes HSBC MIP - Savings Plan HSBC MIP - Regular Plan HSBC Income Fund - Investment Plan HSBC Income Fund - Short Term Plan HSBC Floating Rate Fund - Long Term Plan HSBC Cash Fund HSBC Ultra Short Term Bond Fund HSBC Flexi Debt Fund Fund Managers - MIP & Debt Comparative Performance of MIP & Debt Schemes Section II - How to read Factsheet

3 Fund Manager Commentary RBI cuts repo rate by 25 bps After the belt tightening - fiscally speaking - in the budget, hopes were high that the Reserve Bank of India (RBI) would announce a rate cut in April The central bank did not disappoint the markets announcing a repo rate cut of 25 basis points (or bps) to 6.5% in the April 2016 bi-monthly monetary policy review. This marks continuity in the RBI s accommodative policy stance. Among other factors, this will be based on: The Consumer Price Index (CPI) inflation, which will be under pressure from unseasonal rain, monsoon, low reservoir level and upturn in commodity prices Effective supply side measures to keep food prices in check Commitment to fiscal consolidation On the liquidity front, the RBI seems to have improved upon its liquidity management framework, which has changed significantly taking into account Urjit Patel committee report about a year back. Liquidity management is driven by two objectives: Manage short term liquidity fluctuations due to seasonal and frictional liquidity Need to supply durable liquidity in economy to facilitate growth First objective is met through various repo and reverse repo auctions, which RBI conducts from time to time. Second objective is met by modulating Net Foreign Assets (NFA) and Net Domestic Assets (NDA). Going forward RBI may first meet requirements of durable liquidity and then use fine-tuning operations for short term objective and progressively lower average ex ante liquidity deficit closer to neutrality. Going Forward, RBI may continue to follow development on: Commodity prices especially, food and oil Implementation of pay commission proposal and its effect on wages and rents Transmission of lower rates through marginal cost of funds based lending rate Stance of policy remains accommodative and RBI may continue to watch macroeconomic and financial markets developments with a view to responding with further action as the space opens up. Source: Bloomberg; Reserve Bank of India (RBI) Economic Indicators Food prices soften for now 10.00% 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% Jul/07 Nov/07 Mar/08 Jul/08 Nov/08 Mar/09 Jul/09 Nov/09 Mar/10 Jul/10 Repo Rate Movement Nov/10 Mar/11 Jul/11 The CPI or retail inflation in February 2016 fell to 5.2% year-on-year (YoY), vs 5.7% in January 2016, marking a four month low. This was fashioned by falling prices particularly in vegetables, fruits and pulses. This saw food inflation falling to 5.3% from 6.9% in previous month. The core CPI inflation however nudged higher during the month back of higher prices of personal care & effects. However, the CPI looks to be on course to meet the 5% target by March For the same reason, the Wholesale Price Index (WPI) or wholesale inflation contracted for the 16th consecutive month in February 2016, down 0.91% against a 0.90% fall in January Also, persistent deflationary pressures kept non-food, non-fuel inflation in the negative territory. Nov/11 Mar/12 Jul/12 Nov/12 Repo Rate Mar/13 Jul/13 Nov/13 Mar/14 Jul/14 Nov/14 Mar/15 Jul/15 Nov/15 Mar/ CPI Inflation (%) Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Consumer Price Index (CPI) Source: Bloomberg; Central Statistical Organization (CSO) India 01

4 Fund Manager Commentary Industrial production down for the third month The industrial output remained in the contraction zone during January The Index of Industrial Production (IIP) growth contracted for the third month running at -1.5% for January 2016, against 1.2% decline in the previous month. This was mainly on account of declines in capital goods and consumer non-durable goods output. The weak trends in the industrial output reflect subdued private sector capex and sluggish rural demand scenario. 12.0% Index of Industrial Production (IIP) 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% -6.0% Jan/13 Feb/13 Mar/13 Apr/13 May/13 Jun/13 Jul/13 Aug/13 Sep/13 Oct/13 Nov/13 Dec/13 Jan/14 Feb/14 Mar/14 Apr/14 May/14 Jun/14 Jul/14 Aug/14 Sep/14 Oct/14 Nov/14 Dec/14 Jan/15 Feb/15 Mar/15 Apr/15 May/15 Jun/15 Jul/15 Aug/15 Sep/15 Oct/15 Nov/15 Dec/15 Jan/16 IIP YoY Growth (New Series; base ) Source: Bloomberg; Central Statistical Organization (CSO) India External Institutional Fund Flows March 2016 was the best month for net Foreign Institutional Investor (FII) inflows since February 2013 and saw a significant net inflow of ~USD 4.09 billion into Indian equities. This has reversed the trends of net outflows seen for the first two months of the year and has taken the year-to-date (YTD) net inflow tally from the FII segment to ~USD 1.21 billion. Domestic Institutional Investors (DIIs) net sold equities worth ~USD 2.53 billion during March 2016 and the selling pattern were similar for both MF & Insurance segments for the month. DIIs are now net buyers to the tune of ~USD 0.9 billion through this calendar year as they sold into the rally in March negating the net inflows during January and February Current account deficit narrows India s Current Account Deficit (CAD) narrowed to USD 7.1 billion or 1.3% of GDP (gross domestic product) over the October-December 2015 quarter from USD 8.7 billion in the previous quarter and USD 7.7 billion in the corresponding quarter of the last year. This was largely due to a significant decline in the goods trade deficit offsetting even the shrinking of services account surplus and expansion in primary and secondary income deficits. The October-December 2015 quarter saw a lower trade deficit of USD 34.1 billion vis-à-vis USD 38.6 billion in the same period last year. Falling oil prices was the primary reason for the contraction. Oil deficit contracted to USD 12.9 billion from USD 19.2 billion. In what looks like a positive sign for the economy, non-oil, non-gold imports or core imports picked up pace growing 2.3% - a turnaround of sorts after seven months of decline. Global Economic Scenario Globally, sentiments improved during March after a weak start to the calendar year. Investor sentiments were boosted by higher commodity prices, improved global macro data, monetary stimulus by the European Central Bank (ECB) and a dovish commentary coming out of the US Federal Reserve. The ECB surprised at its March meeting by delivering more stimulus than expected, though signaled that further rate cuts were unlikely at this juncture. Meanwhile, the US Federal Reserve kept interest rates unchanged at its March meeting whilst also adopting a more dovish than expected tone. The overall dovish tone of the policy statement was reflected in the downward revision to interest rate projections, moving closer in line with market expectations, with an implicit forecast of two rate hikes in 2016, down from four in December Oil prices also rallied in March with crude rising above USD 40 per barrel for the first time since early-december This month the support came from the confirmation of a meeting on 17 April 2016 between major producers to discuss an output freeze (even without Iranian cooperation) as well as a weaker dollar. The market was also been boosted by news of significant disruptions in Iraq and Nigeria as well as data showing further declines in US output amid lower rig counts. Meanwhile, on the demand-side, positive Chinese imports data and a fall in US gasoline stockpiles has also buoyed the market. Equity Market Update Equity markets staged a bounce back in March supported by positive global cues. Dovish stance by the US Federal Reserve and liquidity supporting measures by the European Central bank helped to improve sentiments leading to a relief rally in Emerging markets across the globe. Commodities also rallied with crude price seeing an uptick of 10% during the month. There was a rally in the currency markets as well and INR saw ~3.2% appreciation against the USD month-on-month (MoM). Domestically, we have seen improvement in the macro data points over the past 2 years and the budget policy document has laid out a fiscal roadmap reaffirming its focus on the fiscal consolidation front. We continue to believe that India is on a relatively better footing macro-wise vis-à-vis other emerging markets. 02

5 Fund Manager Commentary Major indices surge in double digits March 2016 saw both large cap and mid cap indices score over 10% gains. The S&P BSE Sensex and Nifty appreciated by 10.2% and 10.8% respectively. The S&P BSE Midcap and S&P BSE Smallcap, also surged 10.9% and 10.4% respectively. From a sectoral point of view all BSE sector indices were positive except for Healthcare. Banking, Capital goods, Auto, Metals and Energy led the way and outperformed the key large cap indices. 11.0% 10.8% 10.6% 10.4% 10.2% 10.0% Indices Performance - Mar % Sensex BSE100 BSE200 BSE500 BSE MidCap BSE SmallCap Source: Bloomberg; Bombay Stock Exchange (BSE) Focus on 4QFY16 results & RBI actions Quarterly results should start trickling in; beginning mid-april 2016 and expectations are relatively moderate given what we have seen so far during the year. After the global cues led the rally in the market, fundamentals will again be the focus as we go into the earnings season.as we move into the new financial year, it is quite crucial that the corporate performance signs-off on a relatively better note for FY16 as expectations for the coming year will be reflective of this performance. However on the flip side, a muted performance in the fourth quarter of FY16 could lead to downgrades in estimates for FY17 and that could dampen the sentiments on the fundamental side of the domestic economy. Another important event is the monetary easing cycle by the RBI and an immediate 25 bps cut in the rate already priced in, the focus will be on the commentary and the timeline for the future rate cuts as well as path to be adopted in the monetary policy decisions. Equity Market Outlook As stated, corporate performance (gauged through the quarterly results) and the RBI monetary easing process are 2 key aspects to look out for in the near term. Government s reform announcements could slow down due to the ongoing assembly elections in states of Tamil Nadu, West Bengal, Kerala, Assam & Puducherry and expected to pick-up post the result announcements on 19 May However, the government exhibited its resolve on the policy front through the passing of the Real Estate regulator bill, Aadhaar money bill among others during the first half of the budget session. However, expectations are currently running low on the timeline of the important GST bill and other big policy announcements. With the second half of the budget session scheduled to start from 25 April, any incremental positive news flow around these policy measures could help in boosting sentiments of the market participants. Debt Market Update Bond prices recorded near term highs across the curve during the month. Commitment to fiscal consolidation ignited the rally in the market which got a significant push from release of softer inflation print, both CPI and WPI. It got further support from unexpected series of Open Market Operation (OMO) purchases conducted by RBI worth INR 420 billion in order to grow its domestic assets and provide long term liquidity. Markets continued to rally on positive news flowing in the form of dovish FOMC and news flash on RBI approving HTM limit for Ujwal Assurance Discom Yojna (UDAY) bonds. Total of INR 1.1 trillion of UDAY bonds got issues during the month which witnessed healthy demand from market participants. Securities were issued at a spread of 75 bps over an equivalent G-Sec. Expectation of rate cut and year end valuation took yields to near time lows with 10 years G-sec closing the year at 7.46% against 7.62% in the previous month. Spreads in Corporate bond compressed during the month on light volumes. Healthy demand continued in 3 year segment on FMP demand. Yields in shorter end of the corporate curve eased along with ease in liquidity scenario. Overnight rates remained above benchmark rate on back of higher government balances and significantly higher currency leakage. Money market levels increased on the back of year end phenomena and were quick to soften in the new fiscal and post policy rate cut. Debt Market Outlook Growth with an eye on the inflation target continues to be the focus of the RBI. With credit growth still low and lower deposit rates, it is only a matter of time before banks pass on the rate reduction to borrowers. This may help build some demand and expand capacities in the long run. Liquidity has been well managed, although we have seen some pressure over the last two months. We expect overnight rates to hover around the repo rate (6.5%). With overnight at 6.5%, 10 year G-sec at around % levels present good value. Commencement of government securities supply is balanced by liquidity management (OMO) and spread out supply. However, shorter end of the curve may benefit more due to better liquidity management. The demand supply equation may also be impacted favorably if OMO continues to take place. This segment had witnessed compression of spreads over the new 10 year G-sec, at over 55 bps. We expect issuances / state securities supply to remain consistent at current level. We see no significant movement in yields when supply hits market. Given that there is no softening from here, we retain our neutral stance. Source: Bloomberg, for all data except where mentioned otherwise 03

6 Fund Manager Commentary Sectors HSBC Equity Fund HSBC India Opportunities Fund HSBC Midcap Equity Fund # Consumer Discretionary Consumer Staples Energy Financials Healthcare Industrials Information Technology Materials Telecommunication Utilities Overweight Underweight Neutral # The S&P BSE Midcap Index was reconstituted in mid of April 2015 and hence the relative sector positioning of the fund vs. the benchmark has changed. Review: HSBC Equity Fund Being overweight consumer discretionary, financials and underweight consumer staples, materials, telecommunication helped performance while being overweight information technology and underweight energy, industrials, utilities hurt performance. Review: HSBC India Opportunities Fund Being overweight consumer discretionary, financials and underweight consumer staples, telecommunication helped performance while being overweight information technology and underweight materials hurt performance. Review: HSBC Midcap Equity Fund Being overweight consumer discretionary, information technology, materials and underweight consumer staples, healthcare, telecommunication helped performance while being overweight industrials and underweight financials, utilities hurt performance. Review: HSBC Dynamic Fund The 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 Plans Our current exposure is 14.68% in HMIP Regular and 25.02% in HMIP Savings. Currently it is more biased towards large caps than mid or small caps. 04

7 HSBC Equity Fund (HEF) An Open Ended Diversified Equity Scheme Investment Objective: Aims to generate long term capital growth from an actively managed portfolio of equity and equity related securities. FUND DETAILS Date of Allotment NAV (Growth) per unit (as on ) Monthly Average AUM (In Lakhs) Fund Manager Minimum Application Statistical Ratios Standard Deviation Beta (Slope) Sharpe Ratio** Weighted Average Monthly Total Expenses ratios (Annualized) Regular 2.43% Direct Plan 1.71% Excludes service tax on Investment Management fees of 0.25% of Total NetAssets. Portfolio Turnover 1.03 Statistical ratios disclosed as per monthly returns (absolute) for the last 3 Effective from March 1, 2013 for prospective investments. **Risk free rate: 9.00% (FIMMDA-NSE Mibor) as on March 31, 2016) Asset Allocation Auto 8.42% AutoAncillaries 2.76% Banks 24.69% Cement 2.85% Construction 1.69% Construction Project 3.57% Consumer Non Durables 5.79% Finance 6.90% Gas 1.11% Pesticides 2.53% Petroleum Products 5.53% Pharmaceuticals 8.34% Power 1.59% Software 18.06% Textile Products 3.49% Other Equity Investments 0.66% Reverse Repos/CBLOs 2.06% Net CurrentAssets -0.04% Total Net Assets % This product is suitable for investors who are seeking*: To create wealth over long term Investment in equity and equity related securities HSBC Equity Fund (HEF) LOW 10-Dec-02 S&P BSE 200 ` , Neelotpal Sahai Available `10,000 `1,000 p.m.() Nil Riskometer Moderate Investors understand that their principal will be at risk 4.55% HIGH * Investors should consult their financial advisers if in doubt about whether the product is suitable for them. FUND PORTFOLIO Issuer Auto Tata Motors 3, % Maruti Suzuki India 1, % Auto Ancillaries Motherson Sumi Systems % MRF % Banks HDFC Bank 5, % Yes Bank 2, % ICICI Bank 2, % Indusind Bank 1, % Axis Bank 1, % Cement Ultratech Cement 1, % Construction J.Kumar Infraprojects % Construction Project Voltas 1, % Larsen & Toubro % Consumer Non Durables I T C 3, % Finance Bajaj Finance 1, % Bajaj Finserv 1, % HDFC 1, % Gas Petronet LNG % Pesticides UPL 1, % Petroleum Products Reliance Industries 3, % Pharmaceuticals Glenmark Pharmaceuticals 1, % Sun Pharmaceutical Industries 1, % Aurobindo Pharma 1, % Lupin % Power NTPC % Software Infosys 5, % Tata Consultancy Services 2, % HCL Technologies 2, % Textile Products Welspun India 1, % Other Equity Investments % Cash Equivalents Market Value ( ` in Lacs) % to Net Assets CBLO % Reverse Repos % Net Current Assets % Total Net Assets as on 31-Mar , % Dividend Declaration Record Date / period of dividend declared Non-Institutional Institutional NAV ( `) per unit (cum dividend) HSBC Equity Fund - Dividend 22-Feb Jun Nov HSBC Equity Fund - Dividend - Direct Plan 22-Feb Jun Nov Upon payment of dividend, the NAV per unit falls to the extent of payout and statutory levy, if any. Face value: `10 per unit. 05

8 HSBC India Opportunities Fund (HIOF) An Open Ended Flexi-Cap Equity Scheme Investment 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. FUND DETAILS Date of Allotment NAV (Growth) per unit (as on ) Monthly Average AUM (In Lakhs) Fund Manager Minimum Application Statistical Ratios Standard Deviation Beta (Slope) Sharpe Ratio** Weighted Average (Annualized) Portfolio Turnover Monthly Total Expenses ratios Regular 2.55% Direct Plan 1.76% Excludes service tax on Investment Management fees of 0.15% of Total NetAssets. Asset Allocation 24-Feb-04 S&P BSE 500 ` , Neelotpal Sahai Available `10,000 `1,000 p.m.() Nil 4.82% Statistical ratios disclosed as per monthly returns (absolute) for the last 3 Effective from March 1, 2013 for prospective investments. **Risk free rate: 9.00% (FIMMDA-NSE Mibor) as on March 31, 2016) Auto 7.05% AutoAncillaries 1.29% Banks 25.01% Chemicals 1.67% Construction 3.81% Construction Project 1.20% Consumer Non Durables 5.30% Finance 8.02% Industrial Products 2.39% Pesticides 2.31% Petroleum Products 4.50% Pharmaceuticals 8.36% Software 15.56% Textile Products 7.38% Other Equity Investments 4.00% Reverse Repos/CBLOs 2.41% Net CurrentAssets -0.26% Total Net Assets % FUND PORTFOLIO Issuer Auto Tata Motors 1, % Eicher Motors 1, % Auto Ancillaries Motherson Sumi Systems % Banks HDFC Bank 4, % Yes Bank 2, % Axis Bank 1, % Indusind Bank 1, % ICICI Bank 1, % Chemicals Vinati Organics % Construction KNR Constructions % Ahluwalia Contracts (India) % Somany Ceramics % Construction Project Power Mech Projects % Consumer Non Durables I T C 2, % Finance Bajaj Finance 1, % SKS Microfinance 1, % Bajaj Finserv % Industrial Products Supreme Industries 1, % Pesticides UPL 1, % Petroleum Products Reliance Industries 2, % Pharmaceuticals Torrent Pharmaceuticals 1, % Aurobindo Pharma 1, % Glenmark Pharmaceuticals % Sun Pharmaceutical Industries % Software Infosys 3, % Tata Consultancy Services 1, % HCL Technologies 1, % Textile Products Welspun India 1, % Arvind % Indian Terrain Fashions % Other Equity Investments 1, % Cash Equivalents Market Value ( ` in Lacs) % to Net Assets CBLO % Reverse Repos % Net Current Assets % Total Net Assets as on 31-Mar , % HSBC India Opportunities Fund (HIOF) This product is suitable for investors who are seeking*: To create wealth over long term Invests in equity and equity related securities across market capitalisations LOW Riskometer Moderate Investors understand that their principal will be at risk * Investors should consult their financial advisers if in doubt about whether the product is suitable for them. HIGH Dividend Declaration Record Date / period of dividend declared Non-Institutional Institutional NAV ( `) per unit (cum dividend) HSBC India Opportunities Fund - Dividend 27-Jun Mar Nov HSBC India Opportunities Fund - Dividend Direct Plan 27-Jun Mar Nov Upon payment of dividend, the NAV per unit falls to the extent of payout and statutory levy, if any. Face value: `10 per unit. 06

9 HSBC Midcap Equity Fund (HMEF) An Open Ended Diversified Equity Scheme Investment 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. FUND DETAILS Date of Allotment NAV (Growth) per unit (as on ) Monthly Average AUM (In Lakhs) Fund Manager Minimum Application Statistical Ratios Standard Deviation Beta (Slope) Sharpe Ratio** Weighted Average Monthly Total Expenses ratios (Annualized) Regular 2.68% Direct Plan 1.82% Excludes service tax on Investment Management fees of 0.19% of Total NetAssets. Portfolio Turnover 0.55 Statistical ratios disclosed as per monthly returns (absolute) for the last 3 Effective from March 1, 2013 for prospective investments. **Risk free rate: 9.00% (FIMMDA-NSE Mibor) as on March 31, 2016) Asset Allocation 19-May-05 S&P BSE Midcap ` , Dhiraj Sachdev Available `10,000 `1,000 p.m.() Nil 6.55% Auto 3.25% AutoAncillaries 4.27% Chemicals 4.63% Construction 5.78% Construction Project 2.95% Consumer Durables 3.33% Consumer Non Durables 4.26% Finance 14.37% Industrial Capital Goods 6.74% Industrial Products 4.13% Media & Entertainment 4.98% Pesticides 5.90% Petroleum Products 5.91% Pharmaceuticals 8.02% Software 2.46% Textile Products 8.28% Textiles - Synthetic 2.57% Other Equity Investments 7.62% Reverse Repos/CBLOs 0.93% Net CurrentAssets -0.38% Total Net Assets % HSBC Midcap Equity Fund (HMEF) This product is suitable for investors who are seeking*: To create wealth over long term Invests in predominantly mid cap equity and equity related securities LOW Riskometer Moderate Investors understand that their principal will be at risk * Investors should consult their financial advisers if in doubt about whether the product is suitable for them. HIGH FUND PORTFOLIO Issuer Market Value ( ` in Lacs) % to Net Assets Auto Vst Tillers Tractors 1, % Auto Ancillaries Ceat % Apollo Tyres % Chemicals Vinati Organics 1, % Navin Fluorine International % Construction IRB Infrastructure Developers % Ahluwalia Contracts (India) % National Buildings Construction Corp % Construction Project Power Mech Projects 1, % Consumer Durables Mirza International 1, % Consumer Non Durables CCL Products (India) % Kaveri Seed Company % Finance Cholamandalam Investment & Fin Co. 1, % Motilal Oswal Financial Services 1, % Dewan Housing Finance Corporation % Indiabulls Housing Finance % SKS Microfinance % Industrial Capital Goods Sanghvi Movers 1, % Inox Wind % BEML % Industrial Products Finolex Industries % Ramkrishna Forgings % Media & Entertainment Jagran Prakashan % Hindustan Media Ventures % Pesticides UPL 1, % PI Industries % Petroleum Products Hindustan Petroleum Corporation 1, % Gulf Oil Lubricants India % Pharmaceuticals Aurobindo Pharma 1, % Wockhardt % Torrent Pharmaceuticals % Software Sonata Software % Textile Products Welspun India 1, % Arvind % Indian Terrain Fashions % Textiles - Synthetic Sarla Performance Fibers % Other Equity Investments 2, % Cash Equivalents CBLO % Reverse Repos % Net Current Assets % Total Net Assets as on 31-Mar , % Dividend Declaration Record Date / period of dividend declared Non-Institutional Institutional NAV ( `) per unit (cum dividend) HSBC Midcap Equity Fund - Dividend 11-Dec Nov Nov Upon payment of dividend, the NAV per unit falls to the extent of payout and statutory levy, if any. Face value: `10 per unit. 07

10 HSBC Infrastructure Equity Fund (HIEF) An Open Ended Equity Scheme Investment 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. FUND DETAILS Date of Allotment NAV (Growth) per unit (as on ) Monthly Average AUM (In Lakhs) Fund Manager Minimum Application Statistical Ratios Standard Deviation Beta (Slope) Sharpe Ratio** 23-Feb-06 S&P BSE 200 ` , Dhiraj Sachdev Available `10,000 `1,000 p.m.() Nil 8.14% Weighted Average Monthly Total Expenses ratios (Annualized) Regular 2.69% Direct Plan 1.98% Excludes service tax on Investment Management fees of 0.29% of Total NetAssets. Portfolio Turnover 0.21 Statistical ratios disclosed as per monthly returns (absolute) for the last 3 Effective from March 1, 2013 for prospective investments. **Risk free rate: 9.00% (FIMMDA-NSE Mibor) as on March 31, 2016) Asset Allocation AutoAncillaries 1.52% Banks 3.91% Cement 4.41% Construction 18.76% Construction Project 2.73% Ferrous Metals 1.37% Finance 3.77% Gas 2.68% Industrial Capital Goods 9.59% Industrial Products 7.68% Minerals/Mining 1.64% Oil 1.27% Petroleum Products 9.98% Power 16.50% Transportation 11.35% Other Equity Investments 2.29% Reverse Repos/CBLOs 1.25% Net CurrentAssets -0.70% Total Net Assets % HSBC Infrastructure Equity Fund (HIEF) This product is suitable for investors who are seeking*: To create wealth over long term Invests in equity and equity related securities, primarily in themes that play an important role in India's economic development LOW Riskometer Moderate Investors understand that their principal will be at risk * Investors should consult their financial advisers if in doubt about whether the product is suitable for them. HIGH FUND PORTFOLIO Issuer Auto Ancillaries Apollo Tyres % Banks Jammu & Kashmir Bank % Karnataka Bank % Cement Everest Industries % Construction National Buildings Construction Corp % IRB Infrastructure Developers % Ahluwalia Contracts (India) % KNR Constructions % Construction Project Power Mech Projects % Larsen & Toubro % Ferrous Metals Jindal Saw % Finance Rural Electrification Corporation % Gas Gujarat State Petronet % Industrial Capital Goods BEML % Sanghvi Movers % Inox Wind % Industrial Products FAG Bearings India % KEI Industries % Minerals/Mining Gujarat Mineral Development Corpor % Oil Aban Offshore % Petroleum Products Hindustan Petroleum Corporation % Indian Oil Corporation % Power Adani Transmission % Power Grid Corporation Of India % Reliance Infrastructure % PTC India % Rattanindia Power % JSW Energy % Transportation Gateway Distriparks % Adani Ports & Special Economic Zone % Gujarat Pipavav Port % Other Equity Investments % Cash Equivalents Market Value ( ` in Lacs) % to Net Assets CBLO % Reverse Repos % Net Current Assets % Total Net Assets as on 31-Mar , % Dividend Declaration Record Date / period of dividend declared Non-Institutional Institutional NAV ( `) per unit (cum dividend) HSBC Infrastructure Equity Fund Dividend 11-May May Upon payment of dividend, the NAV per unit falls to the extent of payout and statutory levy, if any. Face value: `10 per unit. 08

11 HSBC Tax Saver Equity Fund (HTSF) 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. FUND DETAILS Date of Allotment NAV (Growth) per unit (as on ) Monthly Average AUM (In Lakhs) Fund Manager Minimum Application Statistical Ratios Standard Deviation Beta (Slope) Sharpe Ratio** 05-Jan-07 S&P BSE 200 ` , Aditya Khemani Available `500 (Lumpsum & ) Nil 5.01% Weighted Average Monthly Total Expenses ratios (Annualized) Regular 2.61% Direct Plan 1.90% Excludes service tax on Investment Management fees of 0.28% of Total NetAssets. Portfolio Turnover 0.57 Statistical ratios disclosed as per monthly returns (absolute) for the last 3 Effective from March 1, 2013 for prospective investments. **Risk free rate: 9.00% (FIMMDA-NSE Mibor) as on March 31, 2016) Asset Allocation Auto 8.26% AutoAncillaries 1.68% Banks 25.65% Cement 4.39% Construction 1.64% Construction Project 1.99% Consumer Durables 1.44% Consumer Non Durables 8.05% Finance 2.77% Industrial Capital Goods 1.09% Minerals/Mining 1.36% Pesticides 2.28% Petroleum Products 1.72% Pharmaceuticals 5.04% Retailing 1.62% Services 1.00% Software 12.52% Textile Products 10.42% Transportation 4.27% Other Equity Investments 1.62% Reverse Repos/CBLOs 1.00% Net CurrentAssets 0.19% Total Net Assets % FUND PORTFOLIO Issuer Market Value ( ` in Lacs) % to Net Assets Auto Maruti Suzuki India % Tata Motors % Auto Ancillaries MRF % Banks HDFC Bank 1, % Axis Bank % ICICI Bank % Indusind Bank % Federal Bank % Jammu & Kashmir Bank % Cement Ultratech Cement % The Ramco Cements % Construction Somany Ceramics % Construction Project Larsen & Toubro % Consumer Durables Crompton Greaves Consumer Electrical % Consumer Non Durables I T C % Kaveri Seed Company % United Spirits % Hindustan Unilever % Finance LIC Housing Finance % Industrial Capital Goods V-Guard Industries % Minerals/Mining Coal India % Pesticides UPL % Petroleum Products Reliance Industries % Pharmaceuticals Torrent Pharmaceuticals % Sun Pharmaceutical Industries % Retailing Aditya Birla Fashion & Retail % Services Aditya Birla Nuvo % Software Infosys 1, % Tata Consultancy Services % HCL Technologies % Textile Products Welspun India % SRF % Indian Terrain Fashions % Arvind % Transportation Adani Ports & Special Economic Zone % Gateway Distriparks % Other Equity Investments % Cash Equivalents CBLO % Reverse Repos % Net Current Assets % Total Net Assets as on 31-Mar , % HSBC Tax Saver Equity Fund (HTSF) This product is suitable for investors who are seeking*: To create wealth over long term Invests in equity and equity related securities with no market capitilastion bias LOW Riskometer Moderate Investors understand that their principal will be at risk * Investors should consult their financial advisers if in doubt about whether the product is suitable for them. HIGH Dividend Declaration Record Date / period of dividend declared Non-Institutional Institutional NAV ( `) per unit (cum dividend) HSBC Tax Saver Equity Fund Dividend 17-Oct Mar Mar HSBC Tax Saver Equity Fund Dividend Direct 17-Oct Mar Mar Upon payment of dividend, the NAV per unit falls to the extent of payout and statutory levy, if any. Face value: `10 per unit. 09

12 HSBC Dynamic Fund (HDF) An Open Ended Scheme Investment 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. FUND DETAILS Date of Allotment NAV (Growth) per unit (as on ) Monthly Average AUM (In Lakhs) Fund Managers Minimum Application Statistical Ratios Standard Deviation Beta (Slope) Sharpe Ratio** 24-Sep-07 S&P BSE 200 ` , Neelotpal Sahai (for Equity portion) Sanjay Shah (for Fixed Income portion) Available `10,000 `1,000 p.m.() Nil 3.26% Weighted Average Monthly Total Expenses ratios (Annualized) Regular 2.68% Direct Plan 1.98% Excludes service tax on Investment Management fees of 0.29% of Total NetAssets. Portfolio Turnover 0.89 Statistical ratios disclosed as per monthly returns (absolute) for the last 3 Effective from March 1, 2013 for prospective investments. **Risk free rate: 9.00% (FIMMDA-NSE Mibor) as on March 31, 2016) Asset Allocation Auto 8.99% Banks 19.97% Cement 3.02% Construction Project 4.81% Consumer Non Durables 10.79% Finance 2.07% Petroleum Products 6.85% Pharmaceuticals 6.40% Power 2.56% Software 11.43% Telecom - Services 1.94% Transportation 1.25% Other Equity Investments 0.70% Reverse Repos/CBLOs 20.23% Net CurrentAssets -1.01% Total Net Assets % HSBC Dynamic Fund (HDF) This product is suitable for investors who are seeking*: To create wealth over long term Invests in equity and equity related securities and in debt instruments when view on equity markets is negative LOW Riskometer Moderate Investors understand that their principal will be at risk HIGH * Investors should consult their financial advisers if in doubt about whether the product is suitable for them. FUND PORTFOLIO Issuer Auto Market Value ( ` in Lacs) % to Net Assets Tata Motors % Maruti Suzuki India % Hero Motocorp % Banks HDFC Bank % Yes Bank % ICICI Bank % Indusind Bank % Cement Ultratech Cement % Construction Project Larsen & Toubro % Voltas % Consumer Non Durables I T C % Asian Paints % Hindustan Unilever % Finance HDFC % Petroleum Products Reliance Industries % Pharmaceuticals Sun Pharmaceutical Industries % Glenmark Pharmaceuticals % Lupin % Power NTPC % Software Infosys % Tata Consultancy Services % Telecom - Services Bharti Airtel % Transportation Adani Ports & Special Economic Zone % Other Equity Investments % Cash Equivalents CBLO % Reverse Repos % Net Current Assets % Total Net Assets as on 31-Mar , % 10

13 HSBC Dividend Yield Equity Fund (HDYEF) An Open Ended Equity Scheme Investment Objective: The Scheme aims to generate dividend yield and capital appreciation by primarily investing into equities and equity related securities of domestic Indian companies. FUND DETAILS Date of Allotment NAV (Growth) per unit (as on ) Monthly Average AUM (In Lakhs) Fund Managers Minimum Application Statistical Ratios Standard Deviation Beta (Slope) Sharpe Ratio** 21-Mar-07 S&P BSE 200 ` , Gautam Bhupal & Amaresh Mishra Available `10,000 `1,000 p.m.() Nil 4.43% Weighted Average Monthly Total Expenses ratios (Annualized) Regular 2.33% Direct Plan 1.63% Excludes service tax on Investment Management fees of 0.20% of Total NetAssets. Portfolio Turnover 0.30 Statistical ratios disclosed as per monthly returns (absolute) for the last 3 Effective from March 1, 2013 for prospective investments. **Risk free rate: 9.00% (FIMMDA-NSE Mibor) as on March 31, 2016) Asset Allocation Auto 8.40% AutoAncillaries 3.06% Banks 20.07% Cement 1.81% Chemicals 1.46% Construction 2.40% Construction Project 3.26% Consumer Non Durables 8.87% Finance 2.70% Industrial Capital Goods 1.50% Minerals/Mining 5.00% Non - Ferrous Metals 2.29% Oil 2.58% Petroleum Products 4.65% Pharmaceuticals 4.00% Power 3.18% Software 18.84% Textile Products 3.93% Other Equity Investments 0.98% Reverse Repos/CBLOs 1.60% Net CurrentAssets -0.58% Total Net Assets % HSBC Dividend Yield Equity Fund (HDYEF) This product is suitable for investors who are seeking*: To create wealth over long term Invests in equity and equity r e l a t e d s e c u r i t i e s o f companies facing "out-ofordinary" conditions LOW Riskometer Moderate Investors understand that their principal will be at risk * Investors should consult their financial advisers if in doubt about whether the product is suitable for them. HIGH FUND PORTFOLIO Issuer Auto Market Value ( ` in Lacs) % to Net Assets Hero Motocorp % Maruti Suzuki India % Tata Motors % Auto Ancillaries MRF % Banks ICICI Bank % Axis Bank % HDFC Bank % Karur Vysya Bank % Jammu & Kashmir Bank % Cement ACC % Chemicals Tata Chemicals % Construction IRB Infrastructure Developers % Construction Project Larsen & Toubro % Consumer Non Durables I T C % Hindustan Unilever % Finance Indiabulls Housing Finance % Industrial Capital Goods V-Guard Industries % Minerals/mining Coal India % Non - Ferrous Metals Hindustan Zinc % Oil Oil & Natural Gas Corporation % Petroleum Products Bharat Petroleum Corporation % Reliance Industries % Pharmaceuticals Lupin % Sun Pharmaceutical Industries % Power NTPC % Software Infosys % Tata Consultancy Services % Wipro % HCL Technologies % Eclerx Services % Textile Products Welspun India % Other Equity Investments % Cash Equivalents CBLO % Reverse Repos % Net Current Assets % Total Net Assets as on 31-Mar , % 11

14 HSBC Emerging Markets Fund (HEMF) An Open Ended Scheme Investment 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. FUND DETAILS Date of Allotment NAV (Growth) per unit (as on ) Monthly Average AUM (In Lakhs) Fund Manager Minimum Application Statistical Ratios Standard Deviation Beta (Slope) Sharpe Ratio** 17-Mar-08 MSCI Emerging Markets Index ` Anitha Rangan (Dedicated fund manager for overseas investments) Available `10,000 `1,000 p.m.() Nil 4.53% Weighted Average Monthly Total Expenses ratios (Annualized) Regular 2.68% Direct Plan 1.98% (inclusive of underlying scheme's expenses) Excludes service tax on Investment Management fees of 0.16% of Total NetAssets. Statistical ratios disclosed as per monthly returns (absolute) for the last 3 Effective from March 1, 2013 for prospective investments. **Risk free rate: 9.00% (FIMMDA-NSE Mibor) as on March 31, 2016) FUND PORTFOLIO Issuer Overseas Mutual Fund HSBC GIF Glob Emerg Mkts Eq S1 Dis % Cash Equivalents Market Value ( ` in Lacs) % to Net Assets CBLO % Reverse Repos % Net Current Assets % Total Net Assets as on 31-Mar % Dividend Declaration Record Date / period of dividend declared Non-Institutional Institutional NAV ( `) per unit (cum dividend) HSBC - Emerging Market Fund - Dividend 27-Jun HSBC - Emerging Market Fund - Dividend - Direct Plan 27-Jun Upon payment of dividend, the NAV per unit falls to the extent of payout and statutory levy, if any. Face value: `10 per unit. Asset Allocation Overseas Mutual Fund 97.47% Reverse Repos/CBLOs 3.39% Net CurrentAssets -0.86% Total Net Assets % HSBC Emerging Markets Fund (HEMF) This product is suitable for investors who are seeking*: To create wealth over long term Investment in equity and equity related securities of Emerging economies LOW Riskometer Moderate Investors understand that their principal will be at risk * Investors should consult their financial advisers if in doubt about whether the product is suitable for them. HIGH 12

15 HSBC Asia Pacific (Ex Japan)Dividend Yield Fund (HAPDF) 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 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. FUND DETAILS Date of Allotment NAV (Growth) per unit (as on ) Monthly Average AUM (In Lakhs) Fund Manager Minimum Application 24-Feb-14 MSCI AC Asia Pacific ex Japan ` , Anitha Rangan (for overseas investments), Sanjay Shah (for investments in Indian Market) Available `10,000 `1,000 p.m.() Nil FUND PORTFOLIO Issuer Overseas Mutual Fund HSBC GIF ASIA PACIFIC EX JAPAN EQ HD-S9D 1, % Cash Equivalents Market Value ( ` in Lacs) % to Net Assets CBLO % Reverse Repos % Net Current Assets % Total Net Assets as on 31-Mar , % Weighted Average Monthly Total Expenses ratios (Annualized) Regular 2.28% Direct Plan 1.58% (inclusive of underlying scheme's expenses) Excludes service tax on Investment Management fees of 0.10% of Total Effective from March 1, 2013 for prospective investments. Asset Allocation Overseas Mutual Fund 99.10% Reverse Repos/CBLOs 2.32% Net CurrentAssets -1.42% Total Net Assets % HSBC Asia Pacific (Ex Japan)Dividend Yield Fund (HAPDF) This product is suitable for investors who are seeking*: To create wealth over long term Investment in equity and equity related securities of Asia Pacific countries (excluding Japan) through fund of funds route LOW Riskometer Moderate Investors understand that their principal will be at risk HIGH * Investors should consult their financial advisers if in doubt about whether the product is suitable for them. 13

16 HSBC Brazil Fund (HBF) 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/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. FUND DETAILS Date of Allotment NAV (Growth) per unit (as on ) Monthly Average AUM (In Lakhs) Fund Manager Minimum Application Statistical Ratios Standard Deviation Beta (Slope) Sharpe Ratio** 06-May-11 MSCI Brazil 10/40 Index ` , Anitha Rangan (Dedicated fund manager for overseas investments) Available `10,000 `1,000 p.m.() Nil 9.40% FUND PORTFOLIO Issuer Overseas Mutual Fund HSBC GIF BRAZIL EQUITY S3D 2, % Cash Equivalents Market Value ( ` in Lacs) % to Net Assets CBLO % Reverse Repos % Net Current Assets % Total Net Assets as on 31-Mar , % Weighted Average Monthly Total Expenses ratios (Annualized) Regular 2.68% Direct Plan 1.98% (inclusive of underlying scheme's expenses) Excludes service tax on Investment Management fees of 0.16% of Total NetAssets. Statistical ratios disclosed as per monthly returns (absolute) for the last 3 Effective from March 1, 2013 for prospective investments. **Risk free rate: 9.00% (FIMMDA-NSE Mibor) as on March 31, 2016) Asset Allocation Overseas Mutual Fund 99.67% Reverse Repos/CBLOs 16.38% Net CurrentAssets % Total Net Assets % HSBC Brazil Fund (HBF) This product is suitable for investors who are seeking*: To create wealth over long term Invests in equity and equity related securities through feeder route in Brazilian markets LOW Riskometer Moderate Investors understand that their principal will be at risk * Investors should consult their financial advisers if in doubt about whether the product is suitable for them. HIGH 14

17 HSBC Managed Solutions India - Growth (HMSG) 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. FUND DETAILS Date of Allotment NAV (Growth) per unit (as on ) Monthly Average AUM (In Lakhs) Fund Managers Minimum Application 30-Apr-14 Composite Index constituting 80% of S&P BSE 200 Index and 20% of CRISIL Composite Bond Index ` , Anitha Rangan (Dedicated Fund Manager for investments in foreign securities) Gautam Bhupal (For managing investments in Indian Market Equity Portion) Sanjay Shah (For managing investments in Indian Market Fixed Income Portion) Available `5,000 `1,000 p.m.() Nil FUND PORTFOLIO Issuer Mutual Fund HSBC Equity Fund - Growth Direct 7, % HSBC Midcap Equity Fund - Growth Direct 2, % HSBC Income Fund Short Term - Growth Direct 1, % HSBC Income Fund Inv Plan Growth Direct % HSBC Flexi Debt Fund Growth Direct % Cash Equivalents Market Value ( ` in Lacs) % to Net Assets CBLO % Reverse Repos % Net Current Assets % Total Net Assets as on 31-Mar , % Weighted Average Monthly Total Expenses ratios (Annualized) Regular 2.39% Direct Plan 2.12% (inclusive of underlying scheme's expenses) Excludes service tax on Investment Management fees of 0.00% of Total Net Assets and of 0.24% on the underlying scheme's in which the fund of fund Effective from March 1, 2013 for prospective investments. Asset Allocation Mutual Fund 98.78% Reverse Repos/CBLOs 1.14% Net CurrentAssets 0.08% Total Net Assets % HSBC Managed Solutions India - Growth This product is suitable for investors who are seeking*: To create wealth over long term 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. LOW Riskometer Moderate Investors understand that their principal will be at risk * Investors should consult their financial advisers if in doubt about whether the product is suitable for them. HIGH 15