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                                                                                                                                                    HSBC Mutual Fund
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                                                                                                                                                           Combined Scheme
                                                                                                                                                         Information Document
                                                                                                     Singapore
                                                                                                     Taiwan



  Investment teams
  Local client service and marketing presence plus the HSBC Group network



HSBC Equity Fund (HEF)                                                                                                                          Continuous offer of Units of the Scheme(s) is at NAV
An open-ended diversified Equity Scheme                                                                                                         based prices (subject to applicable load)
HSBC India Opportunities Fund (HIOF)
An open-ended flexi-cap equity Scheme
                                                                                                                                                The particulars of the Scheme(s) have been prepared in
HSBC Midcap Equity Fund (HMEF)                                                                                                                  accordance with the Securities and Exchange Board of India
An open-ended diversified equity Scheme
                                                                                                                                                (Mutual Funds) Regulations, 1996, as amended till date, and
HSBC Advantage India Fund (HAIF)                                                                                                                filed with Securities and Exchange Board of India (SEBI), along
An open-ended flexi-theme equity Scheme                                                                                                         with a Due Diligence Certificate from the AMC. The units being
HSBC MIP (HMIP)                                                                                                                                 offered for public subscription have not been approved or
An open-ended Fund with Regular and Savings Plan. Monthly income                                                                                recommended by SEBI nor has SEBI certified the accuracy or
is not assured and is subject to the availability of distributable surplus                                                                      adequacy of the Combined Scheme Information Document.
HSBC Income Fund (HIF)                                                                                                                          The Combined Scheme Information Document sets forth concisely
An open-ended Income Scheme
                                                                                                                                                the information about the Scheme(s) that a prospective investor
HSBC Floating Rate Fund (HFRF)                                                                                                                  ought to know before investing. Before investing, investors should
An open-ended Income Scheme                                                                                                                     also ascertain about any further changes to this Combined Scheme
HSBC Ultra Short Term Bond Fund (HUSBF)                                                                                                         Information Document after the date of this Document from the
An open-ended Debt Scheme                                                                                                                       Mutual Fund / Investor Service Centres / Website / Distributors or
                                                                                                                                                Brokers.
HSBC Gilt Fund (HGF)
An open-ended Gilt Scheme                                                                                                                       Investors in the Scheme(s) are not being offered any guaranteed /
HSBC Cash Fund (HCF)                                                                                                                            assured returns.
An open-ended Liquid Scheme
                                                                                                                                                Investors are advised to consult their Legal / Tax and other
HSBC Tax Saver Equity Fund (HTSF)                                                                                                               Professional Advisors in regard to tax / legal implications relating to
An open-ended Equity Linked Savings Scheme                                                                                                      their investments in the Scheme(s) before making decision to invest
HSBC Unique Opportunities Fund (HUOF)                                                                                                           in or redeem the Units.
A close-ended equity scheme with automatic conversion into an
open-ended equity scheme at the end of three years from the date                                                                                The investors are advised to refer to the Statement of Additional
of allotment of units                                                                                                                           Information (SAI) for details of HSBC Mutual Fund, Tax
                                                                                                                                                and    Legal     issues    and     general     information    on
HSBC Dynamic Fund (HDF)
An open-ended Scheme                                                                                                                            www.assetmanagement.hsbc.com/in.

HSBC Flexi Debt Fund (HFDF)                                                                                                                     SAI is incorporated by reference (is legally a part of the Combined
An open-ended Debt Scheme                                                                                                                       Scheme Information Document). For a free copy of the current SAI,
HSBC Emerging Markets Fund (HEMF)                                                                                                               please contact your nearest Investor Service Centre or log on to
An open-ended Scheme                                                                                                                            www.assetmanagement.hsbc.com/in.
HSBC Small Cap Fund (HSCF)                                                                                                                      The Combined Scheme Information Document should be read in
A close-ended equity Scheme with automatic conversion into an                                                                                   conjunction with the SAI and not in isolation.
open-ended equity scheme at the end of three years from the date
of allotment of units.
                                                                                                                                                This Combined Scheme Information Document is dated 20 May, 2009.
  Sponsor:                                                                                                                              Asset Management Company:                           Trustee:
  HSBC Securities and Capital Markets (India) Private Limited                                                                           HSBC Asset Management (India) Private Limited       Board of Trustees
  Regd. Office: 52/60, Mahatma Gandhi Road,                                                                                             Corp. & Regd. Office: 314, D. N. Road,              Office: 314, D. N. Road,
  Fort, Mumbai 400 001, India                                                                                                           Fort, Mumbai 400 001, India                         Fort, Mumbai 400 001, India


            Visit us at : www.assetmanagement.hsbc.com/in                                                                                                            E mail id: hsbcmf@hsbc.co.in
                                                                            TABLE OF CONTENTS

                                                                                 Page No.                                                                                           Page No.

Highlights / Summary of the Scheme ...................................                       1    Ongoing Offer Details .............................................................            51

SECTION I .............................................................................. 13             Sale, Repurchase and switches of Units
                                                                                                        on Ongoing Basis ..............................................................          55
Risk Factors ............................................................................   13
                                                                                                        Cut-off timings for redemptions .......................................                  57
       Standard Risk Factors ....................................................... 13
                                                                                                        Where can the applications for purchase /
       Scheme Specific Risk Factors .......................................... 13                       redemptions / switches be submitted? ..............................                      59
Requirement of Minimum Investors in the Scheme ........... 15                                           Minimum Application Amount / Additional
                                                                                                        Investment / Minimum Amount for redemption ..............                                59
Special Considerations ............................................................         15
                                                                                                        Minimum balance to be maintained and
Definitions ................................................................................ 16
                                                                                                        consequences of non maintenance ....................................                     60
Due Diligence Certificate ........................................................ 19
                                                                                                        Special Products / Facilities available ..............................                   60

SECTION II ............................................................................. 20             Receiving Allotment Statement /
                                                                                                        Correspondence by email ..................................................               64
Information about the Scheme .............................................. 20
                                                                                                        Redemption / Repurchase proceeds ..................................                      65
       Type of the Scheme .......................................................... 20
                                                                                                        Periodic Disclosures ..........................................................          65
       Investment Objective ........................................................ 20
                                                                                                        NAV Information ............................................................... 65
       Asset Allocation of the Scheme ....................................... 20
                                                                                                        Half yearly Disclosure: Portfolio / Financial Results ......                             66
       Where will the Scheme Invest? ........................................ 20
                                                                                                        Annual Report ...................................................................        66
       Change in Investment Pattern ........................................... 33
                                                                                                        Associate Transactions ......................................................            66
       Trading in Derivatives ...................................................... 33
                                                                                                        Taxation .............................................................................   66
       Exposure to Derivatives ....................................................         33
                                                                                                        Investor Services ............................................................... 66
       Valuation of Derivative Products ......................................              36
                                                                                                        Computation of NAV ........................................................              66
       Investment Strategies ........................................................ 36
                                                                                                        Policy on computation of NAV
       Investment Approach and Risk Control ........................... 36                              in case of foreign securities ..............................................             66
       Derivative Strategies .........................................................      44
                                                                                                  SECTION IV ...........................................................................         67
       Portfolio Turnover ............................................................. 44
                                                                                                  Fees and Expenses ...................................................................          67
       Procedure followed for Investment Decisions .................                        44
                                                                                                        NFO Expenses ...................................................................         67
       Fundamental Attributes ..................................................... 45
                                                                                                        Annual Scheme Recurring Expenses ................................                        67
       Benchmark Index .............................................................. 45
                                                                                                        Load Structure ...................................................................       68
       Fund Manager(s) ............................................................... 46
                                                                                                        Waiver of Load for Direct application .............................                      69
       Investment Restriction ...................................................... 47
       Scheme Performance .........................................................         48    SECTION V .............................................................................        70
                                                                                                  Unitholders' Rights .................................................................          70
SECTION III ........................................................................... 51
Units & the New Fund Offer .................................................                51    SECTION VI ...........................................................................         70
                                                                                                        Penalties and Pending Litigations ....................................                   70




76                                                                                                                 Combined Scheme Information Document (SID)
HIGHLIGHTS / SUMMARY OF THE SCHEME(S)
Name of the        HSBC EQUITY FUND (HEF)                                          HSBC INDIA OPPORTUNITIES FUND (HIOF)
Scheme
Type of Scheme     An open-ended diversified Equity Scheme                         An open-ended flexi-cap Equity Scheme
Investment         To generate long-term capital growth from an actively           To seek long term capital growth through investments
Objective          managed portfolio of equity and equity related securities.      across all market capitalisations, including small, mid and
                                                                                   large cap stocks. The fund aims to be predominantly
                                                                                   invested in equity and 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.

Liquidity          Being open ended Scheme(s), Units may be purchased or           Being open ended Scheme(s), Units may be purchased or
                   redeemed on every Business Day at NAV based prices,             redeemed on every Business Day at NAV based prices,
                   subject to provisions of entry / exit load, if any. The Fund    subject to provisions of entry / exit load, if any. The Fund
                   will, under normal circumstances, endeavour to despatch         will, under normal circumstances, endeavour to despatch
                   redemption proceeds within 3 Business Days.                     redemption proceeds within 3 Business Days.

Benchmark Index    BSE 200                                                         BSE 500
Transparency /     The AMC will calculate and disclose the NAVs of the             The AMC will calculate and disclose the NAVs of the
NAV Disclosure     Scheme at the close of every Business Day. NAV of the           Scheme at the close of every Business Day. NAV of the
                   Scheme / Option(s) shall be made available at all Investor      Scheme / Option(s) shall be made available at all Investor
                   Service Centres of the AMC. The AMC shall have the              Service Centres of the AMC. The AMC shall have the
                   NAV published in two daily newspapers. The AMC shall            NAV published in two daily newspapers. The AMC shall
                   update the NAVs on the website of the Fund                      update the NAVs on the website of the Fund
                   www.assetmanagement.hsbc.com/in and of the Association          www.assetmanagement.hsbc.com/in and of the Association
                   of Mutual Funds in India - AMFI (www.amfiindia.com) by          of Mutual Funds in India - AMFI (www.amfiindia.com) by
                   9.00 p.m. on every Business Day. In case of any delay, the      9.00 p.m. on every Business Day. In case of any delay, the
                   reasons for such delay would be explained to AMFI in            reasons for such delay would be explained to AMFI in
                   writing. If the NAVs are not available before                   writing. If the NAVs are not available before
                   commencement of Business Hours on the following day             commencement of Business Hours on the following day
                   due to any reason, the Fund shall issue a press release         due to any reason, the Fund shall issue a press release
                   giving reasons and explaining when the Fund would be            giving reasons and explaining when the Fund would be
                   able to publish the NAVs. The NAV of the scheme will be         able to publish the NAVs. The NAV of the scheme will be
                   determined on every Business Day, except under special          determined on every Business Day, except under special
                   circumstances specified in this Combined Scheme                 circumstances specified in this Combined Scheme
                   Information Document.                                           Information Document.
                   As presently required by the SEBI (MF) Regulations, a           As presently required by the SEBI (MF) Regulations, a
                   complete statement of the Scheme portfolio would be             complete statement of the Scheme portfolio would be
                   published by the Mutual Fund as an advertisement in one         published by the Mutual Fund as an advertisement in one
                   English daily circulating in the whole of India and in a        English daily circulating in the whole of India and in a
                   newspaper published in the language of the region where         newspaper published in the language of the region where
                   the Head Office of the mutual fund is situated, within 1        the Head Office of the mutual fund is situated, within 1
                   month from the close of each half year (i.e. 31 March and       month from the close of each half year (i.e. 31 March and
                   30 September) or mailed to the Unitholders.                     30 September) or mailed to the Unitholders.

Loads (including   Entry Load : For investment / switch in* < Rs. 5 crores         Entry Load : For investment / switch in* < Rs. 5 crores
SIP / STP where    - 2.25%, otherwise Nil.                                         - 2.25%, otherwise Nil.
applicable)        For switch transactions from HCF to HEF (excludes existing      Exit Load : 1% for < Rs. 5 crores, if redeemed / switched
                   & prospective STP transactions) - Nil                           out* within 1 year from date of investment, otherwise Nil.
                   Exit Load : 1.25% for < Rs. 5 crores, if redeemed /             * No load in case of switches between equity Schemes of
                   switched out* within 1 year from date of investment,            HSBC Mutual Fund.
                   otherwise Nil.                                                  No entry/exit load shall be charged for units allotted under
                   For switch transactions from HCF to HEF and subsequent          bonus / dividend reinvestment option.
                   switch transactions from HEF to any other debt or equity        Further, investors are requested to refer to "Section IV -
                   scheme (excludes existing & prospective STP transactions)       Point D on Waiver of load for Direct Applications".
                   - 2.25% for < Rs. 5 crores, if above switch investments are
                   redeemed / switched out within 1 year from the date of
                   switch, otherwise Nil.
                   * No load in case of switches between equity Schemes of
                   HSBC Mutual Fund.
                   No entry/exit load shall be charged for units allotted under
                   bonus / dividend reinvestment option.
                   Further, investors are also requested to refer to "Section IV
                   - Point D on Waiver of load for Direct Applications".

Minimum            Rs. 10,000/- per application and in multiples of Re. 1/-        Rs. 10,000/- per application and in multiples of Re. 1/-
Application        thereafter.                                                     thereafter.
Amount


HSBC Mutual Fund                                                                                                                                  1
Minimum            Rs. 1,000/- per application and in multiples of Re. 1/-         Rs. 1,000/- per application and in multiples of Re. 1/-
additional         thereafter.                                                     thereafter.
investment
Minimum            Rs. 1,000/- and in multiples of Re. 1/- thereafter.             Rs. 1,000/- and in multiples of Re. 1/- thereafter.
Redemption
Amount
Plan / Options     Dividend (Payout / Reinvestment) and Growth                     Dividend (Payout / Reinvestment) and Growth
Sub Options        Dividend Payout Option and Dividend Reinvestment                Dividend Payout Option and Dividend Reinvestment
                   Option                                                          Option

Dividend           Declaration of dividend and its frequency will inter alia       Declaration of dividend and its frequency will inter alia
                   depend upon the distributable surplus. Dividend may be          depend upon the distributable surplus. Dividend may be
                   declared from time to time at the discretion of the Trustees.   declared from time to time at the discretion of the Trustees.



Name of the        HSBC MIDCAP EQUITY FUND (HMEF)                                  HSBC ADVANTAGE INDIA FUND (HAIF)
Scheme
Type of Scheme     An open-ended diversified Equity Scheme                         An open-ended flexi-theme Equity Scheme
Investment         To generate long term capital growth from an actively           To generate long term capital growth from an actively
Objective          managed portfolio of equity and equity related securities       managed portfolio of equity and equity related securities
                   primarily being Midcap stocks. However, it could move a         by investing primarily in sectors, areas and themes that
                   portion of its assets towards fixed income securities if the    play an important role in, and / or benefit from, India's
                   fund manager becomes negative on the Indian equity              progress, reform process and economic development.
                   markets.
Liquidity          Being open-ended Scheme(s), Units may be purchased or           Being open-ended Scheme(s), Units may be purchased or
                   redeemed on every Business Day at NAV based prices,             redeemed on every Business Day at NAV based prices,
                   subject to provisions of entry / exit load, if any. The Fund    subject to provisions of entry / exit load, if any. The Fund
                   will, under normal circumstances, endeavour to despatch         will, under normal circumstances, endeavour to despatch
                   redemption proceeds within 3 Business Days.                     redemption proceeds within 3 Business Days.

Benchmark Index    BSE MidCap Index                                                BSE 200
Transparency /     The AMC will calculate and disclose the NAVs of the             The AMC will calculate and disclose the NAVs of the
NAV Disclosure     Scheme at the close of every Business Day. NAV of the           Scheme at the close of every Business Day. NAV of the
                   Scheme / Option(s) shall be made available at all Investor      Scheme / Option(s) shall be made available at all Investor
                   Service Centres of the AMC. The AMC shall have the              Service Centres of the AMC. The AMC shall have the
                   NAV published in two daily newspapers. The AMC shall            NAV published in two daily newspapers. The AMC shall
                   update the NAVs on the website of the Fund                      update the NAVs on the website of the Fund
                   www.assetmanagement.hsbc.com/in and of the Association          www.assetmanagement.hsbc.com/in and of the Association
                   of Mutual Funds in India - AMFI (www.amfiindia.com) by          of Mutual Funds in India - AMFI (www.amfiindia.com) by
                   9.00 p.m. on every Business Day. In case of any delay, the      9.00 p.m. on every Business Day. In case of any delay, the
                   reasons for such delay would be explained to AMFI in            reasons for such delay would be explained to AMFI in
                   writing. If the NAVs are not available before                   writing. If the NAVs are not available before
                   commencement of Business Hours on the following day             commencement of Business Hours on the following day
                   due to any reason, the Fund shall issue a press release         due to any reason, the Fund shall issue a press release
                   giving reasons and explaining when the Fund would be            giving reasons and explaining when the Fund would be
                   able to publish the NAVs. The NAV of the scheme will be         able to publish the NAVs. The NAV of the scheme will be
                   determined on every Business Day, except under special          determined on every Business Day, except under special
                   circumstances specified in this Combined Scheme                 circumstances specified in this Combined Scheme
                   Information Document.                                           Information Document.
                   As presently required by the SEBI (MF) Regulations, a           As presently required by the SEBI (MF) Regulations, a
                   complete statement of the Scheme portfolio would be             complete statement of the Scheme portfolio would be
                   published by the Mutual Fund as an advertisement in one         published by the Mutual Fund as an advertisement in one
                   English daily circulating in the whole of India and in a        English daily circulating in the whole of India and in a
                   newspaper published in the language of the region where         newspaper published in the language of the region where
                   the Head Office of the mutual fund is situated, within 1        the Head Office of the mutual fund is situated, within 1
                   month from the close of each half year (i.e. 31 March and       month from the close of each half year (i.e. 31 March and
                   30 September) or mailed to the Unitholders.                     30 September) or mailed to the Unitholders.

Loads (including   Entry Load : For investment / switch in* < Rs. 5 crores         Entry Load : For investment / switch in* < Rs. 5 crores
SIP / STP where    - 2.25%, otherwise Nil.                                         - 2.25%, otherwise Nil.
applicable)        Exit Load : 1% for < Rs. 5 crores, if redeemed / switched       Exit Load : 1% for < Rs. 5 crores, if redeemed / switched
                   out* within 1 year from date of investment, otherwise Nil.      out* within 1 year from date of investment, otherwise Nil.
                   * No load in case of switches between equity Schemes of         * No load in case of switches between equity Schemes of
                   HSBC Mutual Fund.                                               HSBC Mutual Fund.




2                                                                                      Combined Scheme Information Document (SID)
                  No entry/exit load shall be charged for units allotted under    No entry/exit load shall be charged for units allotted under
                  bonus / dividend reinvestment option.                           bonus / dividend reinvestment option.
                  Further, investors are also requested to refer to "Section IV   Further, investors are also requested to refer to "Section IV
                  - Point D on Waiver of load for Direct Applications".           - Point D on Waiver of load for Direct Applications".

Minimum           Rs. 10,000/- per application and in multiples of Re. 1/-        Rs. 10,000/- per application and in multiples of Re. 1/-
Application       thereafter.                                                     thereafter.
Amount

Minimum           Rs. 1,000/- per application and in multiples of Re. 1/-         Rs. 1,000/- per application and in multiples of Re. 1/-
additional        thereafter.                                                     thereafter.
investment
Minimum           Rs. 1,000/- and in multiples of Re. 1/- thereafter.             Rs. 1,000/- and in multiples of Re. 1/- thereafter.
Redemption
Amount
Plan / Options    Dividend (Payout / Reinvestment) and Growth                     Dividend (Payout / Reinvestment) and Growth
Sub Options       Dividend Payout Option and Dividend Reinvestment                Dividend Payout Option and Dividend Reinvestment
                  Option                                                          Option

Dividend          Declaration of dividend and its frequency will inter alia       Declaration of dividend and its frequency will inter alia
                  depend upon the distributable surplus. Dividend may be          depend upon the distributable surplus. Dividend may be
                  declared from time to time at the discretion of the Trustees    declared from time to time at the discretion of the Trustees



Name of the       HSBC DYNAMIC FUND (HDF)                                         HSBC EMERGING MARKETS FUND (HEMF)
Scheme
Type of Scheme    An open-ended Scheme                                            An open-ended Scheme
Investment        To provide long term capital appreciation by allocating         To provide long term capital appreciation by investing in
Objective         funds in equity and equity related instruments. It also has     India and in the emerging markets, in equity and equity
                  the flexibility to move, entirely if required, into debt        related instruments, share classes and units/securities issued
                  instruments in times that the view on equity markets seems      by overseas mutual funds or unit trusts. The fund may also
                  negative.                                                       invest a limited proportion in debt and money market
                                                                                  instruments.

Liquidity         Being open-ended Scheme(s), Units may be purchased or           Being open ended Scheme(s), Units may be purchased or
                  redeemed on every Business Day at NAV based prices,             redeemed on every Business Day at NAV based prices,
                  subject to provisions of entry / exit load, if any. The Fund    subject to provisions of entry / exit load, if any. The Fund
                  will, under normal circumstances, endeavour to despatch         will, under normal circumstances, endeavour to despatch
                  redemption proceeds within 3 Business Days.                     redemption proceeds within 7 Business Days.

Benchmark Index   BSE 200                                                         MSCI Emerging Market Index
Transparency /    The AMC will calculate and disclose the NAVs of the             The AMC will calculate and disclose the NAVs of
NAV Disclosure    Scheme at the close of every Business Day. NAV of the           the Scheme at the close of every Business Day. NAV of
                  Scheme / Option(s) shall be made available at all Investor      the Scheme / Option(s) shall be made available at all
                  Service Centres of the AMC. The AMC shall have the              Investor Service Centres of the AMC. The AMC shall have
                  NAV published in two daily newspapers. The AMC shall            the NAV published in two daily newspapers. The AMC
                  update the NAVs on the website of the Fund                      shall update the NAVs on the website of the Fund
                  www.assetmanagement.hsbc.com/in and of the Association          www.assetmanagement.hsbc.com/in and of the Association
                  of Mutual Funds in India - AMFI (www.amfiindia.com) by          of Mutual Funds in India - AMFI (www.amfiindia.com)
                  9.00 p.m. on every Business Day. In case of any delay, the      latest by 10.00 a.m. on the next Business Day, due to
                  reasons for such delay would be explained to AMFI in            differences in the time zones. In case of any delay, the
                  writing. If the NAVs are not available before                   reasons for such delay would be explained to AMFI in
                  commencement of Business Hours on the following day             writing. If the NAVs are not available before
                  due to any reason, the Fund shall issue a press release         commencement of Business Hours on the following day
                  giving reasons and explaining when the Fund would be            due to any reason, the Fund shall issue a press release
                  able to publish the NAVs. The NAV of the scheme will be         giving reasons and explaining when the Fund would be
                  determined on every Business Day, except under special          able to publish the NAVs. The NAV of the scheme will be
                  circumstances specified in this Combined Scheme                 determined on every Business Day, except under special
                  Information Document.                                           circumstances specified in this Combined Scheme
                  As presently required by the SEBI (MF) Regulations, a           Information Document.
                  complete statement of the Scheme portfolio would be             As presently required by the SEBI (MF) Regulations, a
                  published by the Mutual Fund as an advertisement in one         complete statement of the Scheme portfolio would be
                  English daily circulating in the whole of India and in a        published by the Mutual Fund as an advertisement in one
                  newspaper published in the language of the region where         English daily circulating in the whole of India and in a
                  the Head Office of the mutual fund is situated, within 1        newspaper published in the language of the region where
                  month from the close of each half year (i.e. 31 March and       the Head Office of the mutual fund is situated, within 1
                  30 September) or mailed to the Unitholders.                     month from the close of each half year (i.e. 31 March and
                                                                                  30 September) or mailed to the Unitholders.



HSBC Mutual Fund                                                                                                                                   3
Loads (including   Entry Load : 2.50% for investments / Switch In* below            Entry Load : 2.50% for investments / Switch in* below
SIP / STP where    Rs. 5 crores, otherwise Nil.                                     Rs. 5 crores, otherwise Nil.
applicable)        Exit Load : 1% for investments below Rs. 5 crores, if            Exit Load : 1% for investments below Rs. 5 crores, if
                   redeemed / switched out within 1 year from date of               redeemed / switched out within 1 year from date of
                   investment, otherwise Nil.                                       investment, otherwise Nil.
                   * No load in case of switches between equity Schemes of          * No load in case of switches between equity Schemes of
                   HSBC Mutual Fund.                                                HSBC Mutual Fund.
                   No entry / exit load shall be charged for units allotted under   No entry/exit load shall be charged for units allotted under
                   bonus / dividend reinvestment option.                            bonus / dividend reinvestment option.
                   Further, investors are also requested to refer to "Section IV    Further, investors are also requested to refer to "Section IV
                   - Point D on Waiver of load for Direct Applications".            - Point D on Waiver of load for Direct Applications".

Minimum            Rs. 10,000/- per application and in multiples of Re. 1/-         Rs. 10,000/- per application and in multiples of Re. 1/-
Application        thereafter.                                                      thereafter.
Amount

Minimum            Rs. 1,000/- and in multiples of Re. 1/- thereafter.              Rs. 1,000/- and in multiples of Re. 1/- thereafter.
additional
investment
Minimum            Rs. 1,000/- and in multiples of Re. 1/- thereafter.              Rs. 1,000/- and in multiples of Re. 1/- thereafter.
Redemption
Amount
Plan / Options     Dividend (Payout / Reinvestment) and Growth                      Dividend (Payout / Reinvestment) and Growth
Sub Options        Dividend Payout Option and Dividend Reinvestment                 Dividend Payout Option and Dividend Reinvestment
                   Option                                                           Option

Dividend           Declaration of dividend and its frequency will inter alia        Declaration of dividend and its frequency will inter alia
                   depend upon the distributable surplus. Dividend may be           depend upon the distributable surplus. Dividend may be
                   declared from time to time at the discretion of the Trustees.    declared from time to time at the discretion of the Trustees.



Name of the        HSBC TAX SAVER EQUITY FUND (HTSF)                                HSBC UNIQUE OPPORTUNITIES FUND (HUOF)
Scheme
Type of Scheme     An open-ended Equity Linked Savings Scheme (ELSS)                A close-ended equity Scheme with automatic conversion
                                                                                    into an open-ended equity scheme at the end of three years
                                                                                    from the date of allotment of units.
Investment         To provide long term capital appreciation by investing in        To provide long-term capital growth from a diversified
Objective          a diversified portfolio of equity & equity related instruments   portfolio of equity and equity related instruments. The
                   of companies across various sectors and industries, with         focus would be to invest in stocks of companies facing
                   no capitalization bias. The Fund may also invest in fixed        "out-of-ordinary" conditions.
                   income securities.

Liquidity          Being an open-ended Scheme, Units may be purchased or            The Scheme will not be open for ongoing subscriptions /
                   redeemed (after a lock-in period of 3 years from the date        switch ins. However, units can be redeemed / switched out
                   of allotment) on every Business Day at NAV based prices,         on every Business Day at NAV based prices, subject to
                   subject to provisions of entry / exit load, if any. The Fund     provisions of exit load, if any. The Fund will, under normal
                   will, under normal circumstances, endeavour to despatch          circumstances, endeavour to despatch redemption proceeds
                   redemption proceeds within 3 Business Days. The Units            within 3 Business Days.
                   purchased under the Scheme shall have a lock-in period of
                   three years from the date of allotment of Units. Accordingly,    Upon maturity, the scheme will automatically be converted
                   the Units can be redeemed (i.e. sold back to the Fund) on        into an open-ended scheme for the benefit of providing
                   every Business Day, at the Applicable NAV (hereinafter           investors the facility of purchase and redemptions on any
                   defined), on expiry of lock-in period of three years from        Business Day, without any further reference from the
                   the date of allotment. Redemption requests can be made           Mutual Fund / Trustee, subject to the Regulations. However,
                   for an amount of Rs. 500 or more. Subject to the lock-in         the Trustee reserves the right not to convert the Scheme
                   period stated above, Redemption could also be made for           into an open-ended Scheme upon maturity, if deemed
                   the total number of units standing to the credit of investor     appropriate to protect the interest of the scheme / investors.
                   at the time of closure of account. It may, however, be noted     The Mutual Fund / AMC will adhere to the applicable
                   that in the event of death of the Unitholder, the legal heir,    SEBI Regulation in this regard.
                   subject to production of requisite documentary evidence,
                   will be able to redeem the investment only after the
                   completion of one year or anytime thereafter, from the date
                   of allotment of Units to the deceased Unitholder.

Benchmark Index    BSE 200                                                          BSE 200




4                                                                                       Combined Scheme Information Document (SID)
Transparency /     The AMC will calculate and disclose the NAVs of the             The AMC will calculate and disclose the NAVs of the
NAV Disclosure     Scheme at the close of every Business Day. NAV of the           Scheme at the close of every Business Day. NAV of the
                   Scheme / Option(s) shall be made available at all Investor      Scheme / Option(s) shall be made available at all Investor
                   Service Centres of the AMC. The AMC shall have the              Service Centres of the AMC. The AMC shall have the
                   NAV published in two daily newspapers. The AMC shall            NAV published in two daily newspapers. The AMC shall
                   update the NAVs on the website of the Fund                      update the NAVs on the website of the Fund
                   www.assetmanagement.hsbc.com/in and of the Association          www.assetmanagement.hsbc.com/in and of the Association
                   of Mutual Funds in India - AMFI (www.amfiindia.com) by          of Mutual Funds in India - AMFI (www.amfiindia.com) by
                   9.00 p.m. on every Business Day. In case of any delay, the      9.00 p.m. on every Business Day. In case of any delay, the
                   reasons for such delay would be explained to AMFI in            reasons for such delay would be explained to AMFI in
                   writing. If the NAVs are not available before                   writing. If the NAVs are not available before
                   commencement of Business Hours on the following day             commencement of Business Hours on the following day
                   due to any reason, the Fund shall issue a press release         due to any reason, the Fund shall issue a press release
                   giving reasons and explaining when the Fund would be            giving reasons and explaining when the Fund would be
                   able to publish the NAVs. The NAV of the scheme will be         able to publish the NAVs. The NAV of the scheme will be
                   determined on every Business Day, except under special          determined on every Business Day, except under special
                   circumstances specified in this Combined Scheme                 circumstances specified in this Combined Scheme
                   Information Document.                                           Information Document.
                   As presently required by the SEBI (MF) Regulations, a           As presently required by the SEBI (MF) Regulations, a
                   complete statement of the Scheme portfolio would be             complete statement of the Scheme portfolio would be
                   published by the Mutual Fund as an advertisement in one         published by the Mutual Fund as an advertisement in one
                   English daily circulating in the whole of India and in a        English daily circulating in the whole of India and in a
                   newspaper published in the language of the region where         newspaper published in the language of the region where
                   the Head Office of the mutual fund is situated, within 1        the Head Office of the mutual fund is situated, within 1
                   month from the close of each half year (i.e. 31 March and       month from the close of each half year (i.e. 31 March and
                   30 September) or mailed to the Unitholders.                     30 September) or mailed to the Unitholders.

Loads (including   Entry Load : For investments / switch-ins below Rs. 1           During the time period, fund is closed :
SIP / STP where    Crore - 2.25%*, otherwise Nil                                   Entry Load: Nil
applicable)        Exit Load : Nil                                                 Exit Load: Nil^
                   * No load in case of switches between equity Schemes of         Upon Conversion into open-ended scheme*:
                   HSBC Mutual Fund.                                               Entry Load: For investments / switch in below Rs. 5
                   No entry/exit load shall be charged for units allotted under    Crores (including SIP/STP) - 2.25%, otherwise Nil.
                   bonus / dividend reinvestment option.                           Exit Load: Nil
                   Further, investors are also requested to refer to "Section IV   ^The investor will have to bear the proportionate
                   - Point D on Waiver of load for Direct Applications".           unamortized initial issue expenses for exiting during the
                                                                                   close ended period.
                                                                                   * The Scheme shall levy the Load structure immediately
                                                                                   on conversion from close ended to open ended.
                                                                                   No entry/exit load shall be charged for units allotted under
                                                                                   bonus / dividend reinvestment option.
                                                                                   Further, investors are also requested to refer to "Section IV
                                                                                   - Point D on Waiver of load for Direct Applications".

Minimum            Rs. 500/- per application                                       Rs. 10,000/- per application and in multiples of Re. 1/-
Application                                                                        thereafter.
Amount

Minimum            Rs. 500/- per application and in multiples of Rs. 500/-         Rs. 1,000/- per application and in multiples of Re. 1/-
additional         thereafter.                                                     thereafter (applicable upon conversion into open ended
investment                                                                         scheme).
Minimum            Rs. 500/- and in multiples of Rs. 500/- thereafter.             Rs. 1,000/- and in multiples of Re. 1/- thereafter.
Redemption
Amount
Plan / Options     Growth and Dividend                                             Dividend Option and Growth Option
Sub Options        Dividend Payout Option                                          Dividend Payout Option and Dividend Reinvestment
                                                                                   Option

Dividend           Declaration of dividend and its frequency will inter alia       Declaration of dividend and its frequency will inter alia
                   depend upon the distributable surplus. Dividend may be          depend upon the distributable surplus. Dividend may be
                   declared from time to time at the discretion of the Trustees.   declared from time to time at the discretion of the Trustees




HSBC Mutual Fund                                                                                                                                   5
Name of the       HSBC MIP (HMIP)                            HSBC INCOME FUND -                         HSBC INCOME FUND -
Scheme                                                       INVESTMENT PLAN (HIF-IP)                   SHORT TERM PLAN (HIF-ST)
Type of Scheme    An open ended Fund with Regular            An open-ended Income Scheme                An open-ended Income Scheme
                  and Savings Plan. Monthly income is
                  not assured and is subject to the
                  availability of distributable surplus.
Investment        To seek generation of reasonable           To provide a reasonable income             To provide a reasonable income
Objective         returns through investments in Debt        through a diversified portfolio of fixed   through a diversified portfolio of fixed
                  and Money Market Instruments. The          income securities. The AMC's view of       income securities. The AMC's view
                  secondary objective of the scheme is       interest rate trends and the nature of     of interest rate trends and the nature
                  to invest in equity and equity related     the Plans will be reflected in the type    of the Plans will be reflected in the
                  instruments to seek capital                and maturities of securities in which      type and maturities of securities in
                  appreciation.                              the Short Term and Investment Plans        which the Short Term and Investment
                                                             are invested.                              Plans are invested.

Liquidity         Being open ended Scheme(s), Units          Being open ended Scheme(s), Units          Being open ended Scheme(s), Units
                  may be purchased or redeemed on            may be purchased or redeemed on            may be purchased or redeemed on
                  every Business Day at NAV based            every Business Day at NAV based            every Business Day at NAV based
                  prices, subject to provisions of entry /   prices, subject to provisions of entry /   prices, subject to provisions of entry /
                  exit load, if any. The Fund will, under    exit load, if any. The Fund will, under    exit load, if any. The Fund will, under
                  normal circumstances, endeavour to         normal circumstances, endeavour to         normal circumstances, endeavour to
                  despatch redemption proceeds within        despatch redemption proceeds within        despatch redemption proceeds within
                  1 Business Day.                            1 Business Day.                            1 Business Day.

Benchmark Index   CRISIL MIP Blended Index                   CRISIL Composite Bond Fund Index           CRISIL Short Term Bond Fund Index
Transparency /    The AMC will calculate and disclose        The AMC will calculate and disclose        The AMC will calculate and disclose
NAV Disclosure    the NAVs of the Scheme at the close        the NAVs of the Scheme at the close        the NAVs of the Scheme at the close
                  of every Business Day. NAV of the          of every Business Day. NAV of the          of every Business Day. NAV of the
                  Scheme / Option(s) shall be made           Scheme / Option(s) shall be made           Scheme / Option(s) shall be made
                  available at all Investor Service          available at all Investor Service          available at all Investor Service
                  Centres of the AMC. The AMC shall          Centres of the AMC. The AMC shall          Centres of the AMC. The AMC shall
                  have the NAV published in two daily        have the NAV published in two daily        have the NAV published in two daily
                  newspapers. The AMC shall update           newspapers. The AMC shall update           newspapers. The AMC shall update
                  the NAVs on the website of the Fund        the NAVs on the website of the Fund        the NAVs on the website of the Fund
                  www.assetmanagement.hsbc.com/in            www.assetmanagement.hsbc.com/in            www.assetmanagement.hsbc.com/in
                  and of the Association of Mutual           and of the Association of Mutual Funds     and of the Association of Mutual
                  Funds       in    India      - AMFI        in India - AMFI (www.amfiindia.com)        Funds       in    India      - AMFI
                  (www.amfiindia.com) by 9.00 p.m. on        by 9.00 p.m. on every Business Day.        (www.amfiindia.com) by 9.00 p.m.
                  every Business Day. In case of any         In case of any delay, the reasons for      on every Business Day. In case of any
                  delay, the reasons for such delay would    such delay would be explained to           delay, the reasons for such delay would
                  be explained to AMFI in writing. If        AMFI in writing. If the NAVs are not       be explained to AMFI in writing. If
                  the NAVs are not available before          available before commencement of           the NAVs are not available before
                  commencement of Business Hours on          Business Hours on the following day        commencement of Business Hours on
                  the following day due to any reason,       due to any reason, the Fund shall issue    the following day due to any reason,
                  the Fund shall issue a press release       a press release giving reasons and         the Fund shall issue a press release
                  giving reasons and explaining when         explaining when the Fund would be          giving reasons and explaining when
                  the Fund would be able to publish the      able to publish the NAVs. The NAV of       the Fund would be able to publish the
                  NAVs. The NAV of the scheme will           the scheme will be determined on every     NAVs. The NAV of the scheme will
                  be determined on every Business Day,       Business Day, except under special         be determined on every Business Day,
                  except under special circumstances         circumstances specified in this            except under special circumstances
                  specified in this Combined Scheme          Combined Scheme Information                specified in this Combined Scheme
                  Information Document.                      Document.                                  Information Document.
                  As presently required by the SEBI          As presently required by the SEBI          As presently required by the SEBI
                  (MF) Regulations, a complete               (MF) Regulations, a complete               (MF) Regulations, a complete
                  statement of the Scheme portfolio          statement of the Scheme portfolio          statement of the Scheme portfolio
                  would be published by the Mutual           would be published by the Mutual           would be published by the Mutual
                  Fund as an advertisement in one            Fund as an advertisement in one            Fund as an advertisement in one
                  English daily circulating in the whole     English daily circulating in the whole     English daily circulating in the whole
                  of India and in a newspaper published      of India and in a newspaper published      of India and in a newspaper published
                  in the language of the region where        in the language of the region where        in the language of the region where
                  the Head Office of the mutual fund is      the Head Office of the mutual fund is      the Head Office of the mutual fund is
                  situated, within 1 month from the close    situated, within 1 month from the close    situated, within 1 month from the close
                  of each half year (i.e. 31 March and       of each half year (i.e. 31 March and 30    of each half year (i.e. 31 March and
                  30 September) or mailed to the             September) or mailed to the                30 September) or mailed to the
                  Unitholders.                               Unitholders.                               Unitholders.




6                                                                                     Combined Scheme Information Document (SID)
Loads (including   Regular Plan -                            Entry Load : Nil                          Entry Load : Nil
SIP / STP where    Entry Load : Nil                          Exit Load :                               Exit Load :
applicable)
                   Exit Load : 1% if redeemed / switched     Regular & Institutional Option -          Regular Option - 0.5% if redeemed /
                   out within 1 year from the date of        1% if redeemed / switched out within      switched out within 6 months from
                   investment.                               1 year from the date of investment.       the date of investment.
                   For SEP - Nil.                            No entry/exit load shall be charged for   Institutional & Institutional Plus
                                                             units allotted under bonus / dividend     Option - Nil
                   Saving Plan -                             reinvestment option.                      No entry/exit load shall be charged
                   Entry Load : Nil                          Further, investors are also requested     for units allotted under bonus/
                   Exit Load : 1.50% if redeemed /           to refer to "Section IV - Point D on      dividend reinvestment option.
                   switched out within 1 year from the       Waiver of load for Direct                 Further, investors are also requested
                   date of investment.                       Applications".                            to refer to "Section IV - Point D on
                   For SEP - Nil.                                                                      Waiver of load for Direct
                   No entry/exit load shall be charged                                                 Applications".
                   for units allotted under bonus /
                   dividend reinvestment option.
                   Further, investors are also requested
                   to refer to "Section IV - Point D on
                   Waiver of load for Direct
                   Applications".

Minimum            Growth Option : Rs. 10,000/- per          Regular Option : Rs. 10,000/- per         Regular Option - Rs. 1,00,000/- per
Application        application and in multiples of Re. 1/-   application and in multiples of Re. 1/-   application and in multiples of Re. 1/-
Amount             thereafter.                               thereafter.                               thereafter.
                   Dividend Options:                         Institutional Option : Rs. 50, 00,000/-   Institutional        Option         :
                   Monthly Dividend Option -                 per application and in multiples of       Rs.1,00,00,000/- per application and
                   Rs. 25,000/- per application and in       Re. 1/- thereafter.                       in multiples of Re. 1/- thereafter.
                   multiples of Re. 1/- thereafter.                                                    Institutional Plus Option :
                   Quarterly Dividend Option -                                                         Rs.5,00,00,000/- per application and
                   Rs. 10,000/- per application and in                                                 in multiples of Re. 1/- thereafter.
                   multiples of Re. 1/- thereafter.

Minimum            Rs. 1,000/- per application & in          Regular Option : Rs. 1,000/- per          Regular Option : Rs. 1,000/- per
additional         multiples of Re. 1/- thereafter.          application & in multiples of Re. 1/-     application & in multiples of Re. 1/-
investment                                                   thereafter.                               thereafter.
                                                             Institutional Option : Rs. 10,000/-       Institutional & Institutional Plus
                                                             per application & in multiples of Re.     Option : Rs. 10,000/- per application
                                                             1/- thereafter.                           & in multiples of Re. 1/- thereafter.

Minimum            Rs. 1,000 & in multiples of Re. 1/-       Rs. 1,000 & in multiples of Re. 1/-       Rs. 1,000 & in multiples of Re. 1/-
Redemption         thereafter.                               thereafter.                               thereafter.
Amount
Plan / Options     Regular Plan and Savings Plan.            Regular Option & Institutional Option     Regular Option , Institutional Option
                   Growth & Dividend (Payout &                                                         & Institutional Plus Option
                   Re-investment) Option

Sub Options        Under Dividend Option - Monthly &         Growth & Dividend (Payout &               Growth & Dividend (Payout &
                   Quarterly Dividend Payout and             Re-investment)                            Re-investment)
                   Re-investment Option

Dividend           Monthly, Quarterly or at such intervals   Quarterly or at such intervals as may     Weekly and Monthly or at such
                   as may be decided by the Trustees. An     be decided by the Trustees. An investor   intervals as may be decided by the
                   investor in Monthly, Quarterly            in Quarterly Dividend can opt for         Trustees. Weekly dividend will be
                   Dividend can opt for payout /             payout / reinvestment.                    reinvested whereas an investor in
                   reinvestment.                             Declaration of dividend and its           Monthly Dividend can opt for payout /
                   Declaration of dividend and its           frequency will inter alia depend upon     reinvestment.
                   frequency will inter alia depend upon     the distributable surplus.                Declaration of dividend and its
                   the distributable surplus.                                                          frequency will inter alia depend upon
                                                                                                       the distributable surplus




HSBC Mutual Fund                                                                                                                                 7
Name of the                   HSBC FLOATING RATE FUND (HFRF)                                  HSBC ULTRA SHORT TERM BOND
Scheme                                                                                        FUND (HUSBF)
                       Long Term Plan (LT)                   Short Term Plan (ST)
Type of Scheme     An open ended Income Scheme                                                An open ended Debt Scheme
Investment         Seeks to generate a reasonable return with commensurate risk from          Seeks to provide liquidity and reasonable returns
Objective          a portfolio comprised of floating rate debt instruments and fixed rate     by investing primarily in a mix of short term debt
                   debt instruments swapped for floating rate returns. The Scheme may         and money market instruments.
                   also invest in fixed rate money market and debt instruments. There
                   can be no assurance that the Scheme objective can be realised.

Liquidity          Being open ended Scheme(s), Units may be purchased or redeemed             Being open ended Scheme(s), Units may be
                   on every Business Day at NAV based prices, subject to provisions           purchased or redeemed on every Business Day at
                   of entry / exit load, if any. The Fund will, under normal circumstances,   NAV based prices, subject to provisions of entry /
                   endeavour to despatch redemption proceeds within 1 Business Day.           exit load, if any. The Fund will, under normal
                                                                                              circumstances, endeavour to despatch redemption
                                                                                              proceeds within 1 Business Day.

Benchmark Index    CRISIL Liquid Fund Index                                                   CRISIL Liquid Fund Index - 90%
                                                                                              CRISIL Short Term Bond Fund Index - 10%
Transparency /     The AMC will calculate and disclose the NAVs of the Scheme at the          The AMC will calculate and disclose the NAVs
NAV Disclosure     close of every Business Day. NAV of the Scheme / Option(s) shall           of the Scheme at the close of every Business Day.
                   be made available at all Investor Service Centres of the AMC. The          NAV of the Scheme / Option(s) shall be made
                   AMC shall have the NAV published in two daily newspapers. The              available at all Investor Service Centres of the
                   AMC shall update the NAVs on the website of the Fund                       AMC. The AMC shall have the NAV published
                   www.assetmanagement.hsbc.com/in and of the Association of Mutual           in two daily newspapers. The AMC shall update
                   Funds in India - AMFI (www.amfiindia.com) by 9.00 p.m. on every            the NAVs on the website of the Fund
                   Business Day. In case of any delay, the reasons for such delay would       www.assetmanagement.hsbc.com/in and of the
                   be explained to AMFI in writing. If the NAVs are not available             Association of Mutual Funds in India - AMFI
                   before commencement of Business Hours on the following day due             (www.amfiindia.com) by 9.00 p.m. on every
                   to any reason, the Fund shall issue a press release giving reasons and     Business Day. In case of any delay, the reasons
                   explaining when the Fund would be able to publish the NAVs. The            for such delay would be explained to AMFI in
                   NAV of the scheme will be determined on every Business Day,                writing. If the NAVs are not available before
                   except under special circumstances specified in this Combined              commencement of Business Hours on the
                   Scheme Information Document.                                               following day due to any reason, the Fund shall
                   As presently required by the SEBI (MF) Regulations, a complete             issue a press release giving reasons and explaining
                   statement of the Scheme portfolio would be published by the Mutual         when the Fund would be able to publish the
                   Fund as an advertisement in one English daily circulating in the           NAVs. The NAV of the scheme will be determined
                   whole of India and in a newspaper published in the language of the         on every Business Day, except under special
                   region where the Head Office of the mutual fund is situated, within        circumstances specified in this Combined Scheme
                   1 month from the close of each half year (i.e. 31 March and 30             Information Document.
                   September) or mailed to the Unitholders.                                   As presently required by the SEBI (MF)
                                                                                              Regulations, a complete statement of the Scheme
                                                                                              portfolio would be published by the Mutual Fund
                                                                                              as an advertisement in one English daily
                                                                                              circulating in the whole of India and in a
                                                                                              newspaper published in the language of the region
                                                                                              where the Head Office of the mutual fund is
                                                                                              situated, within 1 month from the close of each
                                                                                              half year (i.e. 31 March and 30 September) or
                                                                                              mailed to the Unitholders.

Loads (including   LT :                                  ST :                                 Regular, Institutional & Institutional Plus
SIP / STP where    Entry Load : Nil                      Entry & Exit Load : Nil              Option:
applicable)                                                                                   Entry & Exit Load : Nil.
                   Exit Load :
                   Regular Option - 0.25% if                                                  No entry/exit load shall be charged for units
                   redeemed / switched out                                                    allotted under bonus / dividend reinvestment
                   within 3 months from date                                                  option.
                   of investment.                                                             Further, investors are also requested to refer to
                   Institutional Option - Nil                                                 "Section IV - Point D on Waiver of load for
                                                                                              Direct Applications".
                   No entry/exit load shall be charged for units allotted under bonus/
                   dividend reinvestment option.
                   Further, investors are also requested to refer to "Section IV - Point
                   D on Waiver of load for Direct Applications".




8                                                                                       Combined Scheme Information Document (SID)
Minimum          Regular Option : Rs. 10,000/-        Regular Option : Rs. 1,00,000/-       Regular Option : Rs. 10,000/- per application &
Application      per application & in multiples of    per application & in multiples        in multiples of Re. 1/- thereafter.
Amount           Re. 1/- thereafter.                  of Re. 1/- thereafter.                Institutional Option : Rs. 50,00,000/- per
                 Institutional Option : Rs.           Institutional Option : Rs.            application & in multiples of Re. 1/- thereafter.
                 50,00,000/- per application & in     50,00,000/- per application & in
                 multiples of Re. 1/- thereafter.                                           Institutional Plus Option : Rs. 5,00,00,000/-
                                                      multiples of Re. 1/- thereafter.      per application & in multiples of Re. 1/- thereafter.
                                                      Institutional Plus Option : Rs.
                                                      5,00,00,000/- per application &
                                                      in multiples of Re. 1/- thereafter.

Minimum          Regular Option : Rs. 1,000/-         Regular Option : Rs. 1,000/-          Regular Option : Rs. 1,000/- per application &
additional       per application & in multiples of    per application & in multiples of     in multiples of Re. 1/- thereafter.
investment       Re. 1/- thereafter.                  Re. 1/- thereafter.                   Institutional & Institutional Plus Option :
                 Institutional Option : Rs.           Institutional & Institutional         Rs. 10,000/- per application & in multiples of
                 10,000/- per application & in        Plus Option : Rs. 10,000/- per        Re. 1/- thereafter.
                 multiples of Re. 1/- thereafter.     application & in multiples of
                                                      Re. 1/- thereafter.
Minimum          Regular & Institutional              Regular Option : Rs. 1,000/- &        Regular, Institutional & Institutional Plus
Redemption       Option : Rs. 1,000/- & in            in multiples of Re. 1/- thereafter.   Option : Rs. 1,000/- & in multiples of Re. 1/-
Amount           multiples of Re. 1/- thereafter.     Institutional & Institutional         thereafter.
                                                      Plus Option : Rs. 10,000/- & in
                                                      multiples of Re. 1/- thereafter.

Plan / Options   Regular Option & Institutional       Regular Option, Institutional         Regular Option, Institutional Option &
                 Option                               Option & Institutional Plus           Institutional Plus Option
                                                      Option
Sub Options      LT : Regular Option : Weekly         ST : Regular Option : Daily &         Regular : Daily and Weekly Dividend
                 & Monthly Dividend Option and        Weekly Dividend Reinvestment          reinvestment and Growth Sub-options.
                 Growth Sub-option.                   and Growth Sub-options.               Institutional & Institutional Plus : Daily,
                 Institutional Option : Weekly,       Institutional and Institutional       Weekly & Monthly Dividend and Growth Sub-
                 Fortnightly & Monthly Dividend       Plus Option : Daily, Weekly &         options.
                 and Growth Sub-options.              Monthly Dividend and Growth           Daily & Weekly dividend will be reinvested
                 Weekly & Fortnightly Dividend        Sub-options.                          whereas an investor in Monthly Dividend can opt
                 will be reinvested whereas an        Daily & Weekly dividend will          for payout / reinvestment.
                 investor in Monthly Dividend         be reinvested whereas an
                 can opt for Payout /                 investor in Monthly Dividend
                 Reinvestment.                        can opt for Payout /
                 However, weekly dividend in          Reinvestment.
                 Institutional Option will have
                 dividend payout and re-
                 investment facility. Provided, the
                 unitholders are requested to note
                 that payout of weekly dividend
                 in the said Option is applicable
                 only when the dividend amount
                 is equal to or more than Rs. 1
                 lakh, otherwise the dividend
                 amount will be re-invested.

Dividend         Weekly, Fortnightly & Monthly        Daily, Weekly, & Monthly              Daily, Weekly, & Monthly Dividend or at such
                 Dividend or at such intervals as     Dividend or at such intervals as      intervals as may be decided by the Trustees.
                 may be decided by the Trustees.      may be decided by the Trustees.       Declaration of dividend and its frequency will
                 Declaration of dividend and its      Declaration of dividend and its       inter alia depend upon the distributable surplus.
                 frequency will inter alia depend     frequency will inter alia depend
                 upon the distributable surplus.      upon the distributable surplus.




HSBC Mutual Fund                                                                                                                                    9
Name of the        HSBC CASH FUND (HCF)                                            HSBC GILT FUND (HGF)
Scheme
Type of Scheme     An open-ended liquid Scheme                                     An open ended Gilt Scheme
Investment         Aims to provide reasonable returns, commensurate with           Aims to generate reasonable returns through investments
Objective          low risk while providing a high level of liquidity, through     in Government Securities of various maturities. The AMC's
                   a portfolio of money market and debt securities. However,       view of interest rate trends and the nature of the plans will
                   there can be no assurance that the scheme objective can be      be reflected in the maturities of securities in which the
                   realised.                                                       Plans are invested.
Liquidity          Being open ended Scheme(s), Units may be purchased or           Being open ended Scheme(s), Units may be purchased or
                   redeemed on every Business Day at NAV based prices,             redeemed on every Business Day at NAV based prices,
                   subject to provisions of entry / exit load, if any. The Fund    subject to provisions of entry / exit load, if any. The Fund
                   will, under normal circumstances, endeavour to despatch         will, under normal circumstances, endeavour to despatch
                   redemption proceeds within 1 Business Day.                      redemption proceeds within 1 Business Day.
Benchmark Index    CRISIL Liquid Fund Index                                        I Sec Composite Index
Transparency /     The AMC will calculate and disclose the NAVs of the             The AMC will calculate and disclose the NAVs of the
NAV Disclosure     Scheme at the close of every Business Day. NAV of the           Scheme at the close of every Business Day. NAV of the
                   Scheme / Option(s) shall be made available at all Investor      Scheme / Option(s) shall be made available at all Investor
                   Service Centres of the AMC. The AMC shall have the              Service Centres of the AMC. The AMC shall have the
                   NAV published in two daily newspapers. The AMC shall            NAV published in two daily newspapers. The AMC shall
                   update the NAVs on the website of the Fund                      update the NAVs on the website of the Fund
                   www.assetmanagement.hsbc.com/in and of the Association          www.assetmanagement.hsbc.com/in and of the Association
                   of Mutual Funds in India - AMFI (www.amfiindia.com) by          of Mutual Funds in India - AMFI (www.amfiindia.com) by
                   9.00 p.m. on every Business Day. In case of any delay, the      9.00 p.m. on every Business Day. In case of any delay, the
                   reasons for such delay would be explained to AMFI in            reasons for such delay would be explained to AMFI in
                   writing. If the NAVs are not available before                   writing. If the NAVs are not available before
                   commencement of Business Hours on the following day             commencement of Business Hours on the following day
                   due to any reason, the Fund shall issue a press release         due to any reason, the Fund shall issue a press release
                   giving reasons and explaining when the Fund would be            giving reasons and explaining when the Fund would be
                   able to publish the NAVs. The NAV of the scheme will be         able to publish the NAVs. The NAV of the scheme will be
                   determined on every Business Day, except under special          determined on every Business Day, except under special
                   circumstances specified in this Combined Scheme                 circumstances specified in this Combined Scheme
                   Information Document.                                           Information Document.
                   As presently required by the SEBI (MF) Regulations, a           As presently required by the SEBI (MF) Regulations, a
                   complete statement of the Scheme portfolio would be             complete statement of the Scheme portfolio would be
                   published by the Mutual Fund as an advertisement in one         published by the Mutual Fund as an advertisement in one
                   English daily circulating in the whole of India and in a        English daily circulating in the whole of India and in a
                   newspaper published in the language of the region where         newspaper published in the language of the region where
                   the Head Office of the mutual fund is situated, within 1        the Head Office of the mutual fund is situated, within 1
                   month from the close of each half year (i.e. 31 March and       month from the close of each half year (i.e. 31 March and
                   30 September) or mailed to the Unitholders.                     30 September) or mailed to the Unitholders.
Loads (including   Entry & Exit Load : Nil                                         Entry Load : Nil.
SIP / STP where    No entry/exit load shall be charged for units allotted under    Exit Load : 0.5% if redeemed/switched out within 6 months
applicable)        bonus / dividend reinvestment option.                           from the date of investment.
                   Further, investors are also requested to refer to "Section IV   No entry/exit load shall be charged for units allotted under
                   - Point D on Waiver of load for Direct Applications".           bonus / dividend reinvestment option.
                                                                                   Further, investors are also requested to refer to "Section IV
                                                                                   - Point D on Waiver of load for Direct Applications".
Minimum            Regular Option : Rs. 1,00,000/- per application & in            Rs. 10,000/- per application & in multiples of Re. 1/-
Application        multiples of Re. 1/- thereafter.                                thereafter.
Amount             Institutional Option : Rs. 50,00,000/- per application &
                   in multiples of Re. 1/- thereafter.
                   Institutional Plus Option : Rs. 5,00,00,000/- per
                   application & in multiples of Re. 1/- thereafter.
Minimum            Regular Option : Rs. 1,000/- per application & in multiples     Rs. 1,000/- & in multiples of Re. 1/- thereafter.
additional         of Re. 1/- thereafter.
investment         Institutional & Institutional Plus Option : Rs. 10,000/-
                   per application & in multiples of Re. 1/- thereafter.

Minimum            Regular Option : Rs. 1,000/- & in multiples of Re. 1/-          Rs. 1,000/- & in multiples of Re. 1/- thereafter.
Redemption         thereafter.
Amount             Institutional & Institutional Plus Option : Rs. 10,000/-
                   & in multiples of Re. 1/- thereafter.
Plan / Options     Regular Option, Institutional Option & Institutional Plus       Growth, Weekly & Monthly Dividend Options
                   Option                                                          Weekly Dividend will be Reinvested whereas an
                                                                                   investor in Monthly Dividend can opt for Payout /
                                                                                   Reinvestment.


10                                                                                    Combined Scheme Information Document (SID)
Sub Options       Regular : Daily Dividend Reinvestment, Weekly Dividend
                  Reinvestment and Growth Sub-options.
                  Institutional and Institutional Plus : Daily, Weekly &
                  Monthly Dividend and Growth Sub-options.
                  Daily & Weekly Dividend will be Reinvested whereas an
                  investor in Monthly Dividend can opt for Payout /
                  Reinvestment.

Dividend          Daily, Weekly, & Monthly Dividend or at such intervals         Weekly & Monthly Dividend or at such intervals as may
                  as may be decided by the Trustees.                             be decided by the Trustees.
                  Declaration of dividend and its frequency will inter alia      Declaration of dividend and its frequency will inter alia
                  depend upon the distributable surplus.                         depend upon the distributable surplus.


Name of the       HSBC FLEXI DEBT FUND (HFDF)                                    HSBC SMALL CAP FUND (HSCF)
Scheme
Type of Scheme    An open-ended Debt Scheme                                      A close ended Equity Scheme with automatic conversion
                                                                                 into open-ended equity scheme at the end of three years
                                                                                 from the date of allotment of units.
Investment        To deliver returns in the form of interest income and          To provide long-term capital appreciation primarily from
Objective         capital gains, along with high liquidity, commensurate         a diversified portfolio of equity and equity related
                  with the current view on the markets and the interest rate     instruments of small cap companies.
                  cycle, through active investment in debt and money market
                  instruments.

Liquidity         Being open ended Scheme(s), Units may be purchased or          The Scheme is not open for ongoing subscriptions / switch
                  redeemed on every Business Day at NAV based prices,            ins. However, units can be redeemed / switched out on a
                  subject to provisions of entry / exit load, if any. The Fund   monthly basis on the stipulated date(s) (last 3 Business
                  will, under normal circumstances, endeavour to despatch        Days of every month) as mentioned in this Combined
                  redemption proceeds within 1 Business Day.                     Scheme Information Document at NAV based prices,
                                                                                 subject to provisions of exit load, if any and recovery of
                                                                                 balance proportionate unamortized NFO expenses. The
                                                                                 Scheme will offer for sale and repurchase, Units on every
                                                                                 Business Day after conversion into open ended equity
                                                                                 scheme at the end of three years from the date allotment.
                                                                                 The Units of the Scheme shall be available for subscription
                                                                                 at applicable NAV based prices thereafter, subject to
                                                                                 prevalent load provisions, if any on every Business Day.The
                                                                                 Fund will, under normal circumstances, endeavour to
                                                                                 despatch redemption proceeds within 3 Business Days.

Benchmark Index   CRISIL Composite Bond Fund Index                               BSE Small Cap Index
Transparency /    The AMC will calculate and disclose the NAVs of the            The AMC will calculate and disclose the NAVs of the
NAV Disclosure    Scheme at the close of every Business Day. NAV of the          Scheme at at least once a week, ie every Wednesday and
                  Scheme / Option(s) shall be made available at all Investor     daily during the period of redemption as mentioned in this
                  Service Centres of the AMC. The AMC shall have the             Combined Scheme Information Document. NAV of the
                  NAV published in two daily newspapers. The AMC shall           Scheme / Option(s) shall be made available at all Investor
                  update the NAVs on the website of the Fund                     Service Centres of the AMC. The AMC shall have the
                  www.assetmanagement.hsbc.com/in and of the Association         NAV published on a weekly basis in two daily newspapers.
                  of Mutual Funds in India - AMFI (www.amfiindia.com) by         The AMC shall update the NAVs on the website of the
                  9.00 p.m. on every Business Day. In case of any delay, the     Fund www.assetmanagement.hsbc.com/in and of the
                  reasons for such delay would be explained to AMFI in           Association of Mutual Funds in India - AMFI
                  writing. If the NAVs are not available before                  (www.amfiindia.com) by 9.00 p.m. on every Business
                  commencement of Business Hours on the following day            Day. In case of any delay, the reasons for such delay would
                  due to any reason, the Fund shall issue a press release        be explained to AMFI in writing. If the NAVs are not
                  giving reasons and explaining when the Fund would be           available before commencement of Business Hours on the
                  able to publish the NAVs. The NAV of the scheme will be        following day due to any reason, the Fund shall issue a
                  determined on every Business Day, except under special         press release giving reasons and explaining when the Fund
                  circumstances specified in this Combined Scheme                would be able to publish the NAVs. The NAV of the
                  Information Document.                                          scheme will be determined on a weekly basis, except
                  As presently required by the SEBI (MF) Regulations, a          under special circumstances specified in this Combined
                  complete statement of the Scheme portfolio would be            Scheme Information Document.
                  published by the Mutual Fund as an advertisement in one        As presently required by the SEBI (MF) Regulations, a
                  English daily circulating in the whole of India and in a       complete statement of the Scheme portfolio would be
                  newspaper published in the language of the region where        published by the Mutual Fund as an advertisement in one
                  the Head Office of the mutual fund is situated, within 1       English daily circulating in the whole of India and in a
                  month from the close of each half year (i.e. 31 March and      newspaper published in the language of the region where
                  30 September) or mailed to the Unitholders.                    the Head Office of the mutual fund is situated, within 1
                                                                                 month from the close of each half year (i.e. 31 March and
                                                                                 30 September) or mailed to the Unitholders.


HSBC Mutual Fund                                                                                                                          11
Loads (including   Regular Option :                                                During close ended period:
SIP / STP where    Entry Load : Nil                                                Entry Load : Nil
applicable)
                   Exit Load :                                                     Exit Load ^: If the investments are redeemed / switched
                   - 0.75% if redeemed / switched out within 6 months from         out within 1 year : 2%, 2 Year : 1.5% & 3 Year : 1%
                   the date of investment;                                         ^Balance proportionate unamortized NFO expenses to be
                   - 0.25% if redeemed / switched out from greater than 6          recovered in case of exit within close-ended period.
                   months to 1 year from the date of investment.                   Upon conversion into an open ended scheme*:
                   Institutional Option:                                           Entry Load : For investments / switch-ins in below Rs.
                   Entry & Exit Load : Nil                                         5 Crores - 2.25%, otherwise Nil.

                   No entry/exit load shall be charged for units allotted under    Exit Load : Nil
                   bonus / dividend reinvestment option.                           * The Scheme shall levy the Load structure immediately
                   Further, investors are also requested to refer to "Section IV   on conversion from close ended to open ended.
                   - Point D on Waiver of load for Direct Applications".           No entry/exit load shall be charged for units allotted under
                                                                                   bonus / dividend reinvestment option.
                                                                                   Further, investors are also requested to refer to "Section IV
                                                                                   - Point D on Waiver of load for Direct Applications".

Minimum            Regular Option : Rs. 10,000/- per application & in              Rs. 10,000/- per application & in multiples of Re. 1/-
Application        multiples of Re. 1/- thereafter.                                thereafter.
Amount             Institutional Option : Rs. 50,00,000/- per application &
                   in multiples of Re. 1/- thereafter.
Minimum            Regular Option : Rs. 1,000/- per application & in multiples     Rs. 1,000/- per application & in multiples of Re. 1/-
additional         of Re. 1/- thereafter.                                          thereafter (applicable upon conversion into open ended
investment                                                                         scheme).
                   Institutional Option : Rs. 10,000/- per application & in
                   multiples of Re. 1/- thereafter.

Minimum            Rs. 1,000/- & in multiples of Re. 1/- thereafter.               Rs. 1,000/- & in multiples of Re. 1/- thereafter.
Redemption
Amount

Plan / Options     Regular & Institutional Option                                  Dividend (Payout / Reinvestment) and Growth
Sub Options        Regular & Institutional : Fortnightly, Monthly, Quarterly       Dividend Payout & Dividend Reinvestment Option
                   & Half Yearly Dividend (Payout / Reinvestment) and
                   Growth Sub-options.
                   Fortnightly Dividend will be reinvested whereas investors
                   in Monthly, Quarterly & Half Yearly Dividend can opt for
                   Payout / Reinvestment.
Dividend           Fortnightly, Monthly, Quarterly & Half Yearly Dividend          Declaration of dividend and its frequency will inter alia
                   or at such intervals as may be decided by the Trustees.         depend upon the distributable surplus. Dividend may be
                   Declaration of dividend and its frequency will inter alia       declared from time to time at the discretion of the Trustees.
                   depend upon the distributable surplus.




12                                                                                     Combined Scheme Information Document (SID)
SECTION I - INTRODUCTION
A. RISK FACTORS                                                                 controls, economic deterioration, bi-lateral conflict leading to
STANDARD RISK FACTORS:                                                          immobilization of the overseas financial assets and the prevalent
                                                                                tax laws of the respective jurisdiction for execution of trades or
l   Mutual Funds and securities investments are subject to market               otherwise.
    risks and there is no assurance or guarantee that the objectives
    of the Scheme(s) will be achieved.                                     l    As the Fund will invest in securities which are denominated in
                                                                                foreign currencies (e.g. US Dollars), fluctuations in the exchange
l   Investment in Mutual Fund Units involves investment risks                   rates of these foreign currencies may have an impact on the
    such as trading volumes, settlement risk, liquidity risk, default           income and value of the fund. The investment manager in India
    risk including the possible loss of principal.                              may hedge the currency risk based on his view on the forex
l   As the price / value / interest rates of the securities in which the        markets.
    scheme invests fluctuates, the value of your investment in the         l    As the portfolio will invest in stocks of different countries, the
    scheme may go up or down depending on the various factors                   portfolio shall be exposed to the political, economic and social
    and forces affecting the capital markets and money markets.                 risks with respect to each country. However, the investment
l   Past performance of the Sponsor/AMC/Mutual Fund does not                    manager shall ensure that his exposure to each country is limited
    guarantee future performance of the scheme.                                 so that the portfolio is not exposed to one country. Investments
                                                                                in various economies will also diversify and reduce this risk.
l   HEF, HIOF, HMEF, HAIF, HMIP, HIF, HFRF, HUSBF, HGF,
    HCF, HTSF, HUOF, HDF, HFDF, HEMF and HSCF are the                      l    The fund will be exposed to settlement risk, as different countries
    name(s) of the scheme(s) and do not in any manner indicate                  have different settlement periods.
    either the quality of the scheme(s) or their future prospects and      l    The Scheme(s) may also use various derivative products from
    returns.                                                                    time to time, as would be available and permitted by SEBI, in
l   The Sponsor is not responsible or liable for any loss resulting             an attempt to protect the value of the portfolio and enhance
    from the operation of the scheme(s) beyond the initial                      Unitholders' interest.
    contribution of Rs. 1,00,000/- (Rupees One Lakh only) made             Applicable only for HUOF
    by it towards setting up the Fund. The associates of the Sponsor
    are not responsible or liable for any loss or shortfall resulting      Investing in stocks of companies in 'Out of Ordinary Conditions', Mid
    from the operation of the scheme(s).                                   and Small Cap stocks are riskier than investing in Large Cap Stocks.

l   The present scheme(s) are not a guaranteed or assured return           l    The volumes of trading of the stocks of companies in 'Out of
    scheme(s).                                                                  Ordinary Conditions' could be lower than that of large, mid &
                                                                                small cap stocks. The liquidity of investments made in the
l   Mutual Funds being vehicles of securities investments are subject           Scheme may be restricted due to the same.
    to market and other risks and there can be no guarantee against
    loss resulting from investing in the Scheme(s). The various                 Since the Scheme would invest in stocks of companies in 'Out
    factors which impact the value of the Schemes' investments                  of Ordinary Conditions', it might under perform the benchmark.
    include, but are not limited to, fluctuations in the bond markets,     l    The Scheme seeks to generate returns out of stocks of companies
    fluctuations in interest rates, prevailing political and economic           in 'Out of Ordinary Conditions' that are likely to outperform in
    environment, changes in government policy, factors specific to              the future. This may or may not happen.
    the issuer of the securities, tax laws, liquidity of the underlying
    instruments, settlement periods, trading volumes etc.                  Applicable only for HMEF
                                                                           l    Medium capitalisation stocks have the potential to experience
l   Investment decisions made by the AMC may not always be
                                                                                greater volatility and may be less liquid than larger capitalisation
    profitable.
                                                                                stocks. Thus, relative to larger, more liquid stocks, investing in
                                                                                medium capitalization stocks, involves potentially greater
SCHEME SPECIFIC RISK FACTORS:                                                   volatility and risk. The biggest risk of equity investing is that
Risk factors associated with investing in Equity or                             returns can fluctuate and investors can lose money.
Equity related Securities (Applicable in case of HEF,
                                                                           l    The Scheme seeks to generate returns by investing in stocks of
HIOF, HMEF, HAIF, HMIP, HDF, HTSF, HUOF, HEMF                                   Medium Cap Companies that have strong or improving
and HSCF):                                                                      fundamentals, high growth potential or are under-priced relative
l   Subject to the stated investment objective(s), the Scheme(s)                to their intrinsic value. This may or may not happen. However,
    propose to invest in equity and equity related securities. Equity           as with all equity investing, there is the risk that a company will
    instruments by nature are volatile and prone to price fluctuations          not achieve its expected earnings results, or that an unexpected
    on a daily basis due to both macro and micro factors. Trading               change in the market or within the company will occur, both of
    volumes, settlement periods and transfer procedures may restrict            which may adversely affect investment results.
    the liquidity of these investments. Different segments of financial
    markets have different settlement periods and such periods may         Applicable only for HSCF
    be extended significantly by unforeseen circumstances. The             l    Historically, small capitalisation stocks have experienced greater
    inability of the Scheme(s) to make intended securities' purchases           volatility than other equity asset classes, and they may be less
    due to settlement problems could cause the Scheme(s) to miss                liquid than larger capitalisation stocks. Thus, relative to larger,
    certain investment opportunities. In the view of the Fund                   more liquid stocks, investing in small capitalization stocks,
    Manager, investing in Mid and Small Cap stocks are riskier than             involves potentially greater volatility and risk. The biggest risk
    investing in Large Cap Stocks.                                              of equity investing is that returns can fluctuate and investors can
                                                                                lose money.
l   To the extent the assets of the scheme are invested in overseas
    financial assets, there may be risks associated with currency          l    The Scheme seeks to generate returns by investing in stocks of
    movements, restrictions on repatriation and transaction                     Small Cap Companies that have strong or improving
    procedures in overseas market. Further, the repatriation of capital         fundamentals, high growth potential or are under-priced relative
    to India may also be hampered by changes in regulations or                  to their intrinsic value. This may or may not happen. However,
    political circumstances as well as the application to it of other           as with all equity investing, there is the risk that a company will
    restrictions on investment. In addition, country risks would                not achieve its expected earnings results, or that an unexpected
    include events such as introduction of extraordinary exchange               change in the market or within the company will occur, both of
                                                                                which may adversely affect investment results.

HSBC Mutual Fund                                                                                                                                13
Risk factors associated with investing in Fixed Income                          bonds which are AAA rated are comparatively less risky than
Securities:                                                                     bonds which are AA rated.
Subject to the stated investment objective, the Scheme(s) propose to        l   Prepayment Risk: The risk associated with the early unscheduled
invest in debt and related instruments.                                         return of principal on a fixed-income security. The early
l    Price-Risk or Interest Rate Risk: As with all debt securities,             unscheduled return of principal may result in reinvestment risk.
     changes in interest rates may affect the NAV of the Scheme(s)          l   Short Selling Risk: The risk associated with upward movement
     as the prices of securities increase as interest rates decline and         in market price of security sold short may result in loss. The
     decrease as interest rates rise. Prices of long-term securities            losses on short position may be unlimited as there is no upper
     generally fluctuate more in response to interest rate changes              limit on rise in price of a security.
     than do short-term securities. Indian debt markets can be volatile
     leading to the possibility of price movements up or down in            Risks associated with Investing in Foreign Securities:
     fixed income securities and thereby to possible movements in           l   Foreign Securities: It is the AMC's belief that investment in
     the NAV.                                                                   foreign securities offers new investment and portfolio
                                                                                diversification opportunities into multi-market and multi-
     In the case of floating rate instruments, an additional risk could
                                                                                currency products. However, such investments also entail
     be due to the change in the spreads of floating rate instruments.
                                                                                additional risks. Such investment opportunities may be pursued
     If the spreads on floating rate papers rise, then there could be
                                                                                by the AMC provided they are considered appropriate in terms
     a price loss on these instruments. Secondly in the case of fixed
                                                                                of the overall investment objectives of the Scheme(s). Since the
     rate instruments that have been swapped for floating rates, any
                                                                                Scheme(s) would invest only partially in foreign securities,
     adverse movement in the fixed rate yields vis-à-vis swap rates
                                                                                there may not be readily available and widely accepted
     could result in losses. However, floating rate debt instruments
                                                                                benchmarks to measure performance of the Scheme(s). To
     which have periodical interest rate reset, carry a lower interest
                                                                                manage risks associated with foreign currency and interest rate
     rate risk as compared to fixed rate debt instruments. In a falling
                                                                                exposure, the Fund may use derivatives for efficient portfolio
     interest rate scenario the returns on floating rate debt instruments
                                                                                management including hedging and in accordance with
     may not be better than those on fixed rate debt instruments.
                                                                                conditions as may be stipulated by SEBI / RBI from time to
l    Liquidity or Marketability Risk: This refers to the ease with              time.
     which a security can be sold at or near to its valuation yield-
                                                                                Offshore investments will be made subject to any / all approvals,
     to-maturity (YTM). The primary measure of liquidity risk is the
                                                                                conditions thereof as may be stipulated by SEBI/RBI and
     spread between the bid price and the offer price quoted by a
                                                                                provided such investments do not result in expenses to the Fund
     dealer. Liquidity risk is today characteristic of the Indian fixed
                                                                                in excess of the ceiling on expenses prescribed by and consistent
     income market.
                                                                                with costs and expenses attendant to international investing.
l    Credit Risk: Credit risk or default risk refers to the risk that an        The Fund may, where necessary, appoint other intermediaries
     issuer of a fixed income security may default (i.e. will be unable         of repute as advisors, custodian/sub-custodians etc. for managing
     to make timely principal and interest payments on the security).           and administering such investments. The appointment of such
     Because of this risk, corporate debentures are sold at a yield             intermediaries shall be in accordance with the applicable
     above those offered on Government Securities, which are                    requirements of SEBI and within the permissible ceiling of
     sovereign obligations. Normally, the value of a fixed income               expenses. The fees and expenses would illustratively include,
     security will fluctuate depending upon the changes in the                  besides the investment management fees, custody fees and
     perceived level of credit risk as well as any actual event of              costs, fees of appointed advisors and sub-managers, transaction
     default. The greater the credit risk, the greater the yield required       costs and overseas regulatory costs.
     for someone to be compensated for the increased risk.
                                                                                To the extent that the assets of the Scheme(s) will be invested
l    Reinvestment Risk: This risk refers to the interest rate levels at         in foreign securities denominated in foreign currencies, the
     which cash flows received from the securities in the Scheme(s)             Indian Rupee equivalent of the net assets, distributions and
     are reinvested. The additional income from reinvestment is the             income may be adversely affected by changes in the value of
     "interest on interest" component. The risk is that the rate at             certain foreign currencies relative to the Indian Rupee. The
     which interim cash flows can be reinvested may be lower than               repatriation of capital to India may also be hampered by changes
     that originally assumed.                                                   in regulations concerning exchange controls or political
                                                                                circumstances as well as the application to it of other restrictions
l    Duration Risk: Duration is a risk measure used to measure the              on investment.
     bond / security price changes to potential changes in interest
     rates. Duration of portfolio x the expected changes in rates =         Risks associated with Investing in Derivatives:
     the expected value change in the portfolio. Duration is more           l   The Fund may use derivative instruments like stock index futures,
     scientific measure of risk compared to average maturity of the             option on stocks, stock indices, interest rate swaps, forward rate
     portfolio. The higher the duration of the portfolio, the greater           agreements or other derivative instruments as permitted under
     the changes in value (i.e. higher risk) to movement in interest            the Regulations and guidelines.
     rates. Modified duration is the duration of a bond / security
     given its current yield to maturity, put / call feature, and an            As and when the Scheme(s) trade in the derivatives market there
     expected level of future interest rates.                                   are risk factors and issues concerning the use of derivatives that
                                                                                investors should understand. Derivative products are specialised
l    Benchmark Risk: The floating rate segment of the domestic debt             instruments that require investment techniques and risk analyses
     market is not very developed. Currently, majority of the issuance          different from those associated with stocks and bonds. The use
     of floating rate papers is linked to NSE MIBOR. As the floating            of a derivative requires an understanding not only of the
     rate segment develops further, more benchmark rates for floating           underlying instrument but also of the derivative itself. Derivatives
     papers may be available in future. The fewer number of                     require the maintenance of adequate controls to monitor the
     benchmark rates could result in limited diversification of the             transactions entered into, the ability to assess the risk that a
     benchmark risk.                                                            derivative adds to the portfolio and the ability to forecast price
     Different types of securities in which the scheme(s) would                 or interest rate movements correctly. There is the possibility that
     invest as given in the Combined Scheme Information Document                a loss may be sustained by the portfolio as a result of the failure
     carry different levels and types of risk. Accordingly the scheme's         of another party (usually referred to as the "counter party") to
     risk may increase or decrease depending upon its investment                comply with the terms of the derivatives contract. Other risks
     pattern. E.g. corporate bonds carry a higher amount of risk than           in using derivatives include the risk of mispricing or improper
     Government Securities. Further even among corporate bonds,                 valuation of derivatives and the inability of derivatives to
                                                                                correlate perfectly with underlying assets, rates and indices.

14                                                                                     Combined Scheme Information Document (SID)
    Thus, derivatives are highly leveraged instruments. Even a              B. REQUIREMENT OF MINIMUM INVESTORS
    small price movement in the underlying security could have a               IN THE SCHEMES / PLANS OF MUTUAL
    large impact on their value. Also, the market for derivative
    instruments is nascent in India.
                                                                               FUNDS
                                                                            (Applicable for all schemes and shall be applicable for
    Derivative products are leveraged instruments and can provide           HUOF & HSCF after conversion into open-ended
    disproportionate gains as well as disproportionate losses to the        scheme)
    investor. Execution of such strategies depends upon the ability
    of the fund manager to identify such opportunities. Identification      The Scheme/Plan(s) shall have a minimum of 20 investors and no
    and execution of the strategies to be perused by the fund manager       single investor shall account for more than 25% of the corpus of the
    involve uncertainty and decision of fund manager(s) may not             Scheme/Plan(s). However, if such limit is breached during the NFO
    always be profitable. No assurance can be given that the fund           of the Scheme, the Fund will endeavour to ensure that within a period
    manager(s) will be able to identify or execute such strategies.         of three months or the end of the succeeding calendar quarter from
                                                                            the close of the NFO of the Scheme, whichever is earlier, the Scheme
    The risks associated with the use of derivatives are different          complies with these two conditions. In case the Scheme / Plan(s)
    from or possibly greater than, the risks associated with investing      does not have a minimum of 20 investors in the stipulated period,
    directly in securities and other traditional investments.               the provisions of Regulation 39(2)(c) of the SEBI (MF) Regulations
                                                                            would become applicable automatically without any reference from
Risks associated with Investing in Securitised Debt:                        SEBI and accordingly the Scheme / Plan(s) shall be wound up and
    Securitised Debt: Securitised debt papers carry credit risk of the      the units would be redeemed at applicable NAV. The two conditions
    Obligors and are dependent on the servicing of the PTC /                mentioned above shall also be complied within each subsequent
    Contributions etc. However these are offset suitably by                 calendar quarter thereafter, on an average basis, as specified by
    appropriate pool selection as well as credit enhancements               SEBI. If there is a breach of the 25% limit by any investor over the
    specified by Rating Agencies. In cases where the underlying             quarter, a rebalancing period of one month would be allowed and
    facilities are linked to benchmark rates, the securitised debt          thereafter the investor who is in breach of the rule shall be given 15
    papers may be adversely impacted by adverse movements in                days notice to redeem his exposure over the 25% limit. Failure on
    benchmark rates. However this risk is mitigated to an extent by         the part of the said investor to redeem his exposure over the 25%
    appropriate credit enhancement specified by rating agencies.            limit within the aforesaid 15 days would lead to automatic redemption
    Securitised debt papers also carry the risks of prepayment by           by the Mutual Fund on the applicable Net Asset Value on the 15th
    the obligors. In case of prepayments of securities debt papers,         day of the notice period. The Fund shall adhere to the requirements
    it may result in reduced actual duration as compared to the             prescribed by SEBI from time to time in this regard.
    expected duration of the paper at the time of purchase, which
    may adversely impact the portfolio yield. These papers also             C. SPECIAL CONSIDERATIONS
    carry risk associated with the collection agent who is responsible      l    From time to time and subject to the Regulations, the Sponsor,
    for collection of receivables and depositing them. The Investment            their affiliates, associates, subsidiaries, the Mutual Fund and the
    team evaluates the risks associated with such investments before             AMC may invest directly or indirectly in the Scheme(s). These
    making an investment decision.                                               entities may acquire a substantial portion of the Scheme(s)'
    The underlying assets in the case of investment in securitised               Units and collectively constitute a major investor in the
    debt could be mortgages or other assets like credit card                     Scheme(s). Accordingly, redemption of Units held by such
    receivables, automobile / vehicle / personal / commercial /                  entities may have an adverse impact on the Scheme(s) because
    corporate loans and any other receivables / loans / debt.                    the timing of such redemption may impact the ability of other
                                                                                 Unitholders to redeem their Units.
    The risks associated with the underlying assets can be described
    as under:                                                               l    As the liquidity of the Scheme(s) investments could, at times,
                                                                                 be restricted by trading volumes and settlement periods, the
    Credit card receivables are unsecured. Automobile / vehicle                  time taken by the Fund for redemption of Units may be significant
    loan receivables are usually secured by the underlying                       in the event of an inordinately large number of redemption
    automobile / vehicle and sometimes by a guarantor. Mortgages                 requests or of a restructuring of the Scheme(s)' portfolio. In
    are secured by the underlying property. Personal loans are usually           view of this, the Trustees have the right, in their sole discretion
    unsecured. Corporate loans could be unsecured or secured by                  to limit redemptions (including suspending redemption) under
    a charge on fixed assets / receivables of the company or a letter            certain circumstances, as described under the section titled
    of comfort from the parent company or a guarantee from a                     "Right to Limit Redemptions".
    bank / financial institution. As a rule of thumb, underlying
    assets which are secured by a physical asset / guarantor are            l    Redemptions due to change in the fundamental attributes of the
    perceived to be less risky than those which are unsecured. By                Scheme(s) or due to any other reasons may entail tax
    virtue of this, the risk and therefore the yield in descending               consequences. The Trustees, the Mutual Fund, the AMC, their
    order of magnitude would be credit card receivables, personal                directors or their employees shall not be liable for any tax
    loans, vehicle / automobile loans, mortgages and corporate                   consequences that may arise.
    loans assuming the same rating.                                         l    The Scheme(s) at times may receive large number of redemption
Risks associated with Securities Lending:                                        requests which may have an adverse impact on the performance
                                                                                 of the Scheme(s) and may also affect all the unit holders as the
l   Securities Lending : The risks in lending portfolio securities, as
                                                                                 fund manager needs to liquidate securities to meet the
    with other extensions of credit, consist of the failure of another
                                                                                 redemptions post which the portfolio is likely to be less liquid.
    party, in this case the approved intermediary, to comply with the
    terms of agreement entered into between the lender of securities        l    The tax benefits described in this Combined Scheme Information
    i.e. the Scheme(s) and the approved intermediary. Such failure               Document are as available under the present taxation laws and
    to comply can result in the possible loss of rights in the collateral        are available subject to conditions. The information given is
    put up by the borrower of the securities, the inability of the               included for general purpose only and is based on advice received
    approved intermediary to return the securities deposited by the              by the AMC regarding the law and practice in force in India and
    lender and the possible loss of any corporate benefits accruing              the investors should be aware that the relevant fiscal rules or
    to the lender from the securities deposited with the approved                their interpretation may change. As is the case with any
    intermediary. The Mutual Fund may not be able to sell such lent              investment, there can be no guarantee that the tax position or
    securities and this can lead to temporary illiquidity.                       the proposed tax position prevailing at the time of an investment
                                                                                 in the Scheme(s) will endure indefinitely. In view of the individual




HSBC Mutual Fund                                                                                                                                 15
      nature of tax consequences, each investor is advised to consult                Prospective investors are advised not to rely upon any
      his / her own professional tax advisor.                                        information or representations not incorporated in this Combined
                                                                                     Scheme Information Document as the same have not been
l     Neither this Combined Scheme Information Document nor the                      authorised by the Fund or the AMC. Any subscription, purchase
      Units of the scheme(s) have been registered in any jurisdiction.               or sale made by any person on the basis of statements or
      The distribution of this Combined Scheme Information                           representations which are not contained in this Combined Scheme
      Document in certain jurisdictions may be restricted or totally                 Information Document or which are inconsistent with the
      prohibited and accordingly, persons who come into possession                   information contained herein shall be solely at the risk of the
      of this Combined Scheme Information Document are required                      investor.
      to inform themselves about, and to observe, any such restrictions.
                                                                                l    To the best of the knowledge and belief of the Trustees and the
l     Prospective investors should review / study this Combined                      AMC, information contained in this Combined Scheme
      Scheme Information Document carefully and in its entirety and                  Information Document is in accordance with the SEBI
      shall not construe the contents hereof or regard the summaries                 regulations and the facts stated herein are correct and this
      contained herein as advice relating to legal, taxation, or financial /         Combined Scheme Information Document does not omit
      investment matters and are advised to consult their own                        anything likely to have an impact on the importance of such
      professional advisor(s) as to the legal, tax, financial or any other           information.
      requirements or restrictions relating to the subscription, gifting,
      acquisition, holding, disposal (sale, switch or redemption or             Interpretation
      conversion into money) of Units and to the treatment of income            For all purposes of this Combined Scheme Information Document,
      (if any), capitalisation, capital gains, any distribution, and other      except as otherwise expressly provided or unless the context otherwise
      tax consequences relevant to their subscription, acquisition,             requires:
      holding, capitalisation, disposal (sale, transfer, switch or
      conversion into money) of Units within their jurisdiction of              l    The terms defined in this Combined Scheme Information
      nationality, residence, incorporation, domicile etc. or under the              Document include the plural as well as the singular.
      laws of any jurisdiction to which they or any managed funds to
                                                                                l    Pronouns having a masculine or feminine gender shall be deemed
      be used to purchase/gift Units are subject, and also to determine
                                                                                     to include the other.
      possible legal, tax, financial or other consequences of
      subscribing / gifting, purchasing or holding Units before making          l    All references to "US$" refer to United States Dollars and "Rs."
      an application for Units.                                                      refer to Indian Rupees. A "crore" means "ten million" and a
                                                                                     "lakh" means a "hundred thousand".
l     HSBC Mutual Fund / the AMC have not authorised any person
      to give any information or make any representations, either oral          l    The contents of the Combined Scheme Information Document
      or written, not stated in this Combined Scheme Information                     are applicable to all the Scheme(s) covered under this Combined
      Document in connection with issue of Units under the Scheme(s).                Scheme Information Document, unless specified otherwise.

D. DEFINITIONS
In this Combined Scheme Information Document, the following words and expressions shall have the meaning specified herein, unless the
context otherwise requires:
    ADRs and GDRs                                   ADRs are negotiable certificates issued to represent a specified number of shares (or one share)
                                                    in a foreign stock that is traded on a U.S. exchange. ADRs are denominated in U.S. dollars.
                                                    GDRs are negotiable certificates held in the bank of one country representing a specific number
                                                    of shares of a stock traded on an exchange of another country.
    Asset Management Company or                     HSBC Asset Management (India) Private Limited, incorporated under the provisions of the
    AMC or Investment Manager                       Companies Act, 1956, and approved by SEBI to act as Investment Manager for the Schemes
                                                    of HSBC Mutual Fund.
    Applicable NAV                                  The Net Asset Value applicable for purchases / redemptions / switches etc., based on the
                                                    Business Day and relevant cut-off times on which the application is accepted at an Investor
                                                    Service Centre.
    Business Day                                    A day other than (1) Saturday and Sunday and / or (2) a day on which The Bombay Stock
                                                    Exchange Limited and / or National Stock Exchange of India Limited and / or Reserve Bank
                                                    of India and / or banks in Mumbai are closed and / or (3) a day on which there is no RBI
                                                    clearing / settlement of securities and / or (4) a day on which The Bombay Stock Exchange
                                                    Limited and / or National Stock Exchange of India Limited and / or any other overseas
                                                    exchanges where the fund has a substantial investment and / or Reserve Bank of India and /
                                                    or banks in Mumbai and / or banks in overseas markets where the fund has substantial
                                                    investment are closed (point no. (4) specifically applicable to HEMF only) and / or (5) a day
                                                    on which the sale and / or redemption and / or switches of Units is suspended by the Trustees /
                                                    AMC and / or (6) a book closure period as may be announced by the Trustees / AMC and /
                                                    or (7) A day on which the sale and repurchase the units of the overseas mutual fund, where
                                                    the fund has a substantial investment, is suspended or closed (point no. (7) specifically
                                                    applicable to HEMF only) and / or (8) a day on which normal business cannot be transacted
                                                    due to storms, floods, bandhs, strikes or such other events as the AMC may determine from
                                                    time to time.
                                                    The AMC reserves the right to change the definition of Business Day(s).
                                                    Provided that the days when the banks in any location where the AMC's Investor Service
                                                    Centres are located, are closed due to a local holiday, such days will be treated as non Business
                                                    Days at such centres for the purposes of accepting fresh subscriptions. However, if the Investor
                                                    Service Centre in such locations is open on such local holidays, then redemption and switch
                                                    requests will be accepted at those centres, provided it is a Business Day for the Scheme on
                                                    an overall basis. Notwithstanding the above, the AMC may declare any day as a Business Day /
                                                    Non Business Day.

16                                                                                           Combined Scheme Information Document (SID)
 Custodian                      JP Morgan Chase Bank, Mumbai, registered under the SEBI (Custodian of Securities)
                                Regulations, 1996, currently acting as global Custodian to the Scheme(s) or any other custodian
                                approved by the Trustees.
 Combined Scheme Information    This document issued by HSBC Mutual Fund, offering units of the Scheme(s) of HSBC
 Document                       Mutual Fund, for subscription.
 Designated Collection Centre   Such centres as may be designated by the AMC for collection of subscriptions and / or
                                redemptions and / or switches in the Scheme(s).
 Depository                     Depository as defined in the Depositories Act, 1996.
 Derivatives                    A financial instrument, traded on or off an exchange, the price of which is directly dependent
                                upon (i.e., "derived from") the value of one or more underlying securities, equity indices, debt
                                instruments, commodities, other derivative instruments, or any agreed upon pricing index or
                                arrangement (e.g., the movement over time of the Consumer Price Index or freight rates) etc.
                                is known as a derivative. Derivatives involve the trading of rights or obligations based on the
                                underlying product, but do not directly transfer property.
 Distributor                    Such persons / firms / companies / corporates as may be appointed by the AMC to distribute /
                                sell / market the Schemes of the Fund.
 Dividend                       Income distributed by Scheme on the Units, where applicable.
 Equity related securities      Convertible Debentures, Equity Warrants, Convertible Preference Shares, FCCBs, Equity
                                Mutual Funds etc. are considered equity related securities.
 FII                            Foreign Institutional Investors, registered with SEBI under Securities and Exchange Board of
                                India (Foreign Institutional Investors) Regulations, 1995 as amended from time to time.
 Floating Rate Instruments      Floating rate instruments are debt / money market instruments issued by Central / State
                                Governments, Corporates, PSUs etc. with interest rates that are reset periodically. The periodicity
                                of interest reset could be daily, monthly, annually or any other periodicity that may be mutually
                                agreed between the issuer and the Fund.
 Foreign Securities             ADRs / GDRs issued by Indian or Foreign companies, Equity of overseas companies listed
                                on recognized stock exchanges overseas, Initial Public Offer (IPO) and Follow on Public
                                Offerings (FPO) for listing at recognized stock exchanges overseas, Foreign debt securities in
                                the countries with fully convertible currencies, with rating not below investment grade by
                                accredited/registered credit rating agencies, Money market instruments rated not below
                                investment grade, Repos - only as pure investment avenues, where the counterparty is rated
                                not below investment grade; also repos should not however, involve any borrowing of funds
                                by mutual funds, Government securities where the countries are rated not below investment
                                grade, Derivatives traded on recognized stock exchanges overseas only for hedging and
                                portfolio balancing with underlying as securities, Short term deposits with banks overseas
                                where the issuer is rated not below investment grade, Units/securities issued by overseas mutual
                                funds registered with overseas regulators and investing in approved securities or Real Estate
                                Investment Units/securities issued by overseas mutual funds registered with overseas regulators
                                and investing in approved securities or Real Estate Investment Trusts (REITs) listed in recognized
                                stock exchanges overseas or unlisted overseas securities (not exceeding 10% of their net assets)
                                or such other security / instrument as stipulated by SEBI / RBI / other Regulatory Authority
                                from time to time.
 Fund or Mutual Fund            HSBC Mutual Fund, a trust set up under the provisions of the Indian Trusts Act, 1882 and
                                registered with SEBI under the Securities and Exchange Board of India (Mutual Funds)
                                Regulations, 1996 vide Registration No. MF/046/02/5 dated May 27, 2002.
 HEF                            HSBC Equity Fund
 HIOF                           HSBC India Opportunities Fund
 HMEF                           HSBC Midcap Equity Fund
 HAIF                           HSBC Advantage India Fund
 HMIP                           HSBC MIP (an open ended Fund. Monthly income is not assured and is subject to the
                                availability of distributable surplus)
 HMIP-RP                        HSBC MIP - Regular Plan
 HMIP-SP                        HSBC MIP - Savings Plan
 HIF-ST                         HSBC Income Fund - Short Term Plan
 HFRF                           HSBC Floating Rate Fund
 HFRF-LT                        HSBC Floating Rate Fund - Long Term Plan
 HFRF-ST                        HSBC Floating Rate Fund - Short Term Plan


HSBC Mutual Fund                                                                                                                 17
 HUSBF                             HSBC Ultra Short Term Bond Fund
 HGF                               HSBC Gilt Fund
 HCF                               HSBC Cash Fund
 HUOF                              HSBC Unique Opportunities Fund
 HDF                               HSBC Dynamic Fund
 HFDF                              HSBC Flexi Debt Fund
 HEMF                              HSBC Emerging Markets Fund
 HSCF                              HSBC Small Cap Fund
 HTSF                              HSBC Tax Saver Equity Fund including the Options contained herein, the Scheme launched
                                   as an Equity Linked Savings Scheme under Section 80C of the Income Tax Act, 1961 and as
                                   per Notifications dated 3 November, 2005 and 13 December, 2005 issued by the Department
                                   of Economic Affairs, Ministry of Finance, Government of India or such other scheme as the
                                   Central Government may, by notification in the Official Gazette, specify under Section 80C
                                   of the Income Tax Act, 1961. Investors in the Scheme are entitled to deductions of the amount
                                   invested in Units of the Scheme, subject to a maximum of Rs. 1,00,000, under and in terms
                                   of Section 80C (2) (xiii) of the Income Tax Act, 1961.
 HSCI or Sponsor or Settlor        HSBC Securities and Capital Markets (India) Private Limited, a company incorporated under
                                   the provisions of the Companies Act, 1956.
 Investment Management Agreement   The Agreement dated February 7, 2002 entered into between the Trustees of HSBC Mutual
                                   Fund and HSBC Asset Management (India) Private Limited as amended from time to time.
 Investor Service Centres or ISC   Such offices as are designated as Investor Service Centres by the AMC from time to time.
 Load                              In case of repurchase / switch out of a Unit, the sum of money deducted from the applicable
                                   NAV on the repurchase / switch out (Exit Load) and in the case of sale / switch in of a Unit,
                                   a sum of money to be paid by the prospective investor on the sale / switch in of a Unit in addition
                                   to the applicable NAV (Entry Load).
 Midcap Companies                  Midcap companies are generally those companies whose market capitalization is Rs. 75 crores
                                   or more but does not exceed the market capitalization of the largest constituent of the BSE
                                   Midcap Index at the point of investment on a full market capitalisation basis.
 NAV                               Net Asset Value of the Units of the Scheme(s), Plan(s) (including Option(s) if any, therein)
                                   calculated in the manner provided in this Combined Scheme Information Document or as may
                                   be prescribed by the Regulations from time to time.
 Out of Ordinary Conditions        These conditions may include from time to time, but would not be limited to turnaround,
                                   recovery situations, financial restructurings, distressed debt, Mergers & Acquisitions,
                                   Divestments, Spin-Offs, Demergers, employee/management buyouts etc.
 RBI                               Reserve Bank of India, established under the Reserve Bank of India Act, 1934, as amended
                                   from time to time.
 Registrar                         Computer Age Management Services (P) Ltd. (CAMS), registered under the SEBI (Registrars
                                   to an Issue and Share Transfer Agents) Regulations, 1993, currently acting as Registrar to the
                                   Scheme(s) or any other registrar appointed by the AMC from time to time.
 Repo / Reverse repo               Sale / purchase of Government Securities as may be allowed by RBI from time to time with
                                   simultaneous agreement to repurchase / resell them at a later date.
 Repurchase / Redemption           Repurchase / redemption of Units of the Scheme(s).
 Sale / Subscription               Sale / subscription of Units of the Scheme(s).
 Scheme(s)                         HSBC Equity Fund, HSBC India Opportunities Fund, HSBC Midcap Equity Fund, HSBC
                                   Advantage India Fund, HSBC MIP, HSBC Income Fund, HSBC Floating Rate Fund, HSBC
                                   Ultra Short Term Bond Fund, HSBC Gilt Fund, HSBC Cash Fund, HSBC Tax Saver Equity
                                   Fund, HSBC Unique Opportunities Fund, HSBC Dynamic Fund, HSBC Flexi Debt Fund,
                                   HSBC Emerging Markets Fund and HSBC Small Cap Fund (including, as the context permits,
                                   the Plans / Options / Sub-options).
 SEBI                              Securities and Exchange Board of India established under Securities and Exchange Board of
                                   India Act, 1992, as amended from time to time.
 SEBI Regulations or Regulations   Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 as amended from
                                   time to time, including by way of circulars or notifications issued by SEBI, the Government
                                   of India or RBI.




18                                                                           Combined Scheme Information Document (SID)
 Small Cap Companies                          Companies with the market capitalization which is 1) lower than or equal to the market
                                              capitalization of the stock in the BSE Small Cap Index with the largest market capitalization
                                              and 2) higher than or equal to the market capitalization of the stock in the BSE Small Cap
                                              Index with the smallest market capitalization.
 SIP                                          Systematic Investment Plan
 SEP                                          Systematic Encashment Plan
 STP                                          Systematic Transfer Plan
 Switch                                       Sale of a Unit(s) in one Scheme(s) / Plan(s) / Option(s) against purchase of a Unit(s) in
                                              another Scheme(s) / Plan(s) / Option(s).
 Trustees                                     The Board of Trustees of HSBC Mutual Fund and approved by SEBI to act as the Trustees
                                              of the Schemes of the Fund or any other Trustee as may be appointed from time to time by
                                              the Sponsor and as approved by SEBI.
 Trust Deed                                   The Trust Deed dated 7 February, 2002 made by and between the Sponsor and the Trustees
                                              establishing HSBC Mutual Fund, as amended from time to time.
 Trust Fund                                   Amounts settled / contributed by the Sponsor towards the corpus of the HSBC Mutual Fund
                                              and additions / accretions thereto.
 Unit                                         The interest of an investor which consists of one undivided share in the net assets of the
                                              Scheme(s).
 Unitholder or Investor                       A holder of Units in the Scheme(s) of HSBC Mutual Fund offered under this Combined
                                              Scheme Information Document.




E. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY
   DUE DILIGENCE CERTIFICATE
   It is confirmed that:
   i)     The Combined Scheme Information Document forwarded to SEBI is in accordance with the
          SEBI (Mutual Funds) Regulations, 1996 and the guidelines and directives issued by SEBI from
          time to time.
   ii)    All legal requirements connected with the launching of the Scheme(s) as also the guidelines,
          instructions, etc., issued by the Government and any other competent authority in this behalf,
          have been duly complied with.
   iii) The disclosures made in the Combined Scheme Information Document are true, fair and
        adequate to enable the investors to make a well informed decision regarding investment in the
        proposed Scheme(s).
   iv) The intermediaries named in the Combined Scheme Information Document and Statement of
       Additional Information are registered with SEBI and their registration is valid.
                                              For HSBC Asset Management (India) Private Limited
                                                       (Investment Manager to HSBC Mutual Fund)
                                                                                                     Sd/-
                                                                                          O. V. Ravi
                                                                 Vice President & Head of Compliance
   Place : Mumbai
   Date : 20 May, 2009




HSBC Mutual Fund                                                                                                                              19
SECTION II - INFORMATION ABOUT THE SCHEMES
HSBC EQUITY FUND                                                            l    Certificate of Deposits (CDs)

A. TYPE OF THE SCHEME                                                       l    Commercial Paper (CPs)
An open-ended diversified Equity Scheme                                     l    Bills of Exchange / Promissory Notes
                                                                            l    Securitised Debt
B. INVESTMENT OBJECTIVE                                                     l    CBLO & reverse repos
To generate long-term capital growth from an actively managed
portfolio of equity and equity related securities.                          l    Floating rate debt instruments
                                                                            l    Repurchase and reverse repurchase obligations in securities
C. ASSET ALLOCATION OF THE SCHEME                                           l    The non-convertible part of convertible securities
Under normal circumstances, it is anticipated that the asset allocation
of the Scheme will be as follows:                                           l    Any other domestic fixed income securities
                                                                            l    Pass through, Pay through or other Participation Certificates
Instruments                          Indicative Allocation   Risk Profile        representing interest in a pool of assets including receivables
                                       (% of net assets)
                                                                            l    Any other instruments as may be permitted by RBI / SEBI / such
                                    Minimum Maximum                              other Regulatory Authorities from time to time.
Equities & Equity                      65%        100%          High        The securities mentioned above could be listed, unlisted, privately
related securities                                                          placed, secured, unsecured, rated or unrated and of any maturity. The
Debt securities & Money                0%         35%         Low to        securities may be acquired through New Fund Offer. New Fund
Market instruments (including                                 Medium        Offers (NFOs), secondary market operations and private placement,
cash & cash equivalents)                                                    rights offers or negotiated deals.
If the Scheme decides to invest in securitised debt, it is the intention    The Scheme may participate in securities lending as permitted under
of the Investment Manager that such investments will not normally           the Regulations.
exceed 30% of the corpus of the Scheme and if the Scheme decides
to invest in ADRs/GDRs issued by Indian Companies and foreign               HSBC INDIA OPPORTUNITIES FUND
securities in line with SEBI stipulation, it is the intention of the
Investment Manager that such investments will not, normally exceed
                                                                            A. TYPE OF THE SCHEME
30% of the assets of the Scheme.                                            An open-ended flexi-cap Equity Scheme
The scheme shall have derivative exposure as per the SEBI Guidelines        B. INVESTMENT OBJECTIVE
issued from time to time.
                                                                            To seek long term capital growth through investments across all
The Scheme may review the above pattern of investments based on             market capitalisations, including small, mid and large cap stocks.
views on the equity markets and asset liability management needs.           The fund aims to be predominantly invested in equity and equity
However, at all times the portfolio will adhere to the overall investment   related securities. However, it could move a significant portion of its
objective of the Scheme.                                                    assets towards fixed income securities if the fund manager becomes
Investors may note that securities which provide higher returns,            negative on equity markets.
typically display higher volatility. Accordingly, the investment
portfolio of the Scheme would reflect moderate to high volatility in        C. ASSET ALLOCATION OF THE SCHEME
its equity and equity related investments and low to moderate volatility    Under normal circumstances, it is anticipated that the asset allocation
in its debt and money market investments.                                   of the Scheme will be as follows:
D. WHERE WILL THE SCHEME INVEST?                                            Instruments                      Indicative Allocation     Risk Profile
The corpus of the Scheme will be invested primarily in equity and                                              (% of net assets)
equity related securities. The Scheme may invest its corpus in debt                                       Minimum        Maximum
and money market instruments, to manage its liquidity requirements.
                                                                            Equities & Equity               65%            100%           High
Subject to the Regulations and other prevailing laws as applicable,
                                                                            related securities
the corpus of the Scheme can be invested in any (but not exclusively)
of the following securities:                                                Debt instruments &               0%             35%         Low to
l    Equity and equity related securities including convertible bonds       Money Market                                                Medium
     and debentures and warrants carrying the right to obtain equity        instruments (including
     shares.                                                                cash & cash equivalents)
l    ADRs / GDRs issued by the Indian companies, subject to the             If the Scheme decides to invest in securitised debt, it is the intention
     guidelines issued by the Reserve Bank of India and Securities          of the Investment Manager that such investments will not normally
     and Exchange Board of India.                                           exceed 30% of the corpus of the Scheme and if the Scheme decides
l    Derivatives Instruments as may be permitted by SEBI / RBI.             to invest in ADRs/GDRs issued by Indian Companies and foreign
                                                                            securities in line with SEBI stipulation, it is the intention of the
l    Foreign Securities as may be permitted by SEBI / RBI.                  Investment Manager that such investments will not, normally exceed
l    Securities issued / guaranteed by the Central, State and local         30% of the assets of the Scheme.
     governments (including but not limited to coupon bearing bonds,
                                                                            The scheme shall have derivative exposure as per the SEBI Guidelines
     zero coupon bonds and treasury bills).
                                                                            issued from time to time.
l    Debt obligations of domestic government agencies and statutory
     bodies, which may or may not carry a Central / State Government        The Scheme may review the above pattern of investments based on
     guarantee.                                                             views on the equity and debt markets and asset liability management
                                                                            needs and the portfolio shall be reviewed and rebalanced on a regular
l    Corporate debt (of both public and private sector undertakings).       basis. However, at all times the portfolio will adhere to the overall
l    Debt obligations of banks (both public and private sector) and         investment objective of the Scheme.
     financial institutions.
                                                                            Investors may note that securities which provide higher returns,
l    Money market instruments permitted by SEBI and / or RBI,               typically display higher volatility. Accordingly, the investment
     having residual maturities of up to 1 year                             portfolio of the Scheme would reflect moderate to high volatility in

20                                                                                        Combined Scheme Information Document (SID)
its equity and equity related investments and low to moderate volatility   midcap stocks. However, it could move a portion of its assets towards
in its debt and money market investments.                                  fixed income securities if the fund manager becomes negative on the
                                                                           Indian equity markets.
D. WHERE WILL THE SCHEME INVEST?
The corpus of the Scheme will be invested in equity, equity related        C. ASSET ALLOCATION OF THE SCHEME
and various fixed income securities. The Scheme will actively move         Under normal circumstances, it is anticipated that the asset allocation
its assets between equity and fixed income securities depending on         of the Scheme will be as follows:
its view on these markets. The fund will endeavour to invest in large
cap companies as well as identify mid cap stocks, which have the           Instruments                            Indicative Allocation     Risk
potential to become blue chip large cap stocks over time. The                                                       (% of net assets)      Profile
investment style is to seek aggressive growth by focusing on mid cap                                            Minimum Maximum
companies in addition to investments in large cap stocks.
                                                                           Equities & equity related               65%        100%         High
Subject to the Regulations and other prevailing laws as applicable,        securities of companies whose
the corpus of the Scheme can be invested in any (but not exclusively)      market capitalization is Rs. 75
of the following securities:                                               crores or more but does not
                                                                           exceed the market capitalization
l    Equity and equity related securities including convertible bonds      of the largest constituent of the
     and debentures and warrants carrying the right to obtain equity       BSE Midcap Index at the point
     shares.                                                               of investment on a full market
l    ADRs / GDRs issued by the Indian companies, subject to the            capitalisation basis
     guidelines issued by the Reserve Bank of India and Securities         Other equities & equity related         0%          35%         High
     and Exchange Board of India.                                          securities
l    Foreign Securities as may be permitted by SEBI / RBI.                 Debt and money market                   0%          35%        Low to
l    Derivatives Instruments as may be permitted by SEBI / RBI.            instruments (including cash                                    Medium
l    Securities issued / guaranteed by the Central, State and local        and money at call)
     governments (including but not limited to coupon bearing bonds,       Under normal circumstances, the Scheme shall invest at least 65%
     zero coupon bonds and treasury bills)                                 of the net assets under the Scheme in Equity and Equity related
l    Debt obligations of domestic government agencies and statutory        Securities which fall within the definition of midcap companies.
     bodies, which may or may not carry a Central / State Government       The Scheme may review the above pattern of investments based on
     guarantee                                                             views on the equity and debt markets and asset liability management
l    Corporate debt (of both public and private sector undertakings)       needs and the portfolio shall be reviewed and rebalanced on a regular
l    Debt obligations of banks (both public and private sector) and        basis. However, at all times the portfolio will adhere to the overall
     financial institutions                                                investment objective of the Scheme.
l    Money market instruments permitted by SEBI and / or RBI,              Midcap stocks will comprise equity stocks of companies which are
     having residual maturities of up to 1 year                            generally those whose market capitalization is Rs. 75 crores or more
                                                                           but does not exceed the market capitalization of the largest constituent
l    Certificate of Deposits (CDs)
                                                                           of the BSE Midcap Index at the point of investment on a full market
l    Commercial Paper (CPs)                                                capitalisation basis.
l    Bills of Exchange / Promissory Notes                                  Investors may note that securities which provide higher returns,
l    Securitised Debt                                                      typically display higher volatility. Accordingly, the investment
                                                                           portfolio of the Scheme would reflect moderate to high volatility in
l    CBLO & reverse repos
                                                                           its equity and equity related investments and low to moderate volatility
l    Floating rate debt instruments                                        in its debt and money market investments.
l    Repurchase and reverse repurchase obligations in securities           If the Scheme decides to invest in securitised debt, it is the intention
l    The non-convertible part of convertible securities                    of the Investment Manager that such investments will not normally
                                                                           exceed 30% of the corpus of the Scheme and if the Scheme decides
l    Any other domestic fixed income securities
                                                                           to invest in ADRs/GDRs issued by Indian Companies and foreign
l    Pass through, Pay through or other Participation Certificates         securities in line with SEBI stipulation, it is the intention of the
     representing interest in a pool of assets including receivables       Investment Manager that such investments will not, normally exceed
l    Any other instruments as may be permitted by RBI / SEBI / such        30% of the assets of the Scheme.
     other Regulatory Authorities from time to time.                       For investments in ADRs / GDRs, the Fund Manager would consider
The securities mentioned above could be listed, unlisted, privately        the premium / discount to the underlying stock and the possibility
placed, secured, unsecured, rated or unrated and of any maturity. The      of the discount narrowing or the premium expanding, liquidity
securities may be acquired through New Fund Offers (NFOs),                 management of the portfolio, secondary and primary offerings of
secondary market operations and private placement, rights offers or        ADRs / GDRs.
negotiated deals.
                                                                           Securitized debt, while relatively illiquid compared to other debt
The scheme may participate in securities lending as permitted under        investments provides a higher yield pickup. Hence only if the Fund
the Regulations.                                                           Manager becomes cautious or negative on the Indian equity markets
                                                                           for a reasonably long period of time would he consider investing in
HSBC MIDCAP EQUITY FUND (HMEF)                                             such instruments to improve the yield to the fund and investors as
                                                                           opposed to putting the monies in reverse repo and short term money
A. TYPE OF THE SCHEME                                                      market instruments. No investments shall be made in foreign
An open-ended diversified equity Scheme                                    securitized debt.
                                                                           The Scheme shall have derivative exposure as per the SEBI Guidelines
B. INVESTMENT OBJECTIVE                                                    issued from time to time.
To generate long term capital growth from an actively managed
portfolio of equity and equity related securities primarily being



HSBC Mutual Fund                                                                                                                                  21
D. WHERE WILL THE SCHEME INVEST?                                           in sectors, areas and themes that play an important role in, and / or
The corpus of the Scheme will be primarily invested in midcap              benefit from, India's progress, reform process and economic
equity and equity related securities. The Scheme can also invest in        development.
small cap equity and equity related securities and various fixed
income securities. The Scheme can actively move its assets between         C. ASSET ALLOCATION OF THE SCHEME
equity and fixed income securities depending on its view on these          Under normal circumstances, it is anticipated that the asset allocation
markets.                                                                   of the Scheme will be as follows:
Subject to the Regulations and other prevailing laws as applicable,        Instruments                      Indicative Allocation     Risk Profile
the corpus of the Scheme can be invested in any (but not exclusively)                                         (% of net assets)
of the following securities:
                                                                                                         Minimum        Maximum
l    Equity and equity related securities including convertible bonds
                                                                           Equities & Equity               65%            100%           High
     and debentures and warrants carrying the right to obtain equity       related securities
     shares.
                                                                           Debt instruments &               0%             35%         Low to
l    ADRs / GDRs issued by the Indian companies, subject to the            Money Market                                                Medium
     guidelines issued by the Reserve Bank of India and Securities         instruments (including
     and Exchange Board of India.                                          cash & money at call)
l    Stock index futures and such other derivative instruments
                                                                           The Scheme may review the above pattern of investments based on
     permitted by SEBI / RBI.
                                                                           views on the equity and debt markets and asset liability management
l    Securities issued / guaranteed by the Central, State and local        needs and the portfolio shall be reviewed and rebalanced on a regular
     governments (including but not limited to coupon bearing bonds,       basis. However, at all times the portfolio will adhere to the overall
     zero coupon bonds and treasury bills)                                 investment objective of the Scheme.
l    Debt obligations of domestic government agencies and statutory        Investors may note that securities which provide higher returns,
     bodies, which may or may not carry a Central / State Government       typically display higher volatility. Accordingly, the investment
     guarantee                                                             portfolio of the Scheme would reflect moderate to high volatility in
                                                                           its equity and equity related investments and low to moderate volatility
l    Corporate debt (of both public and private sector undertakings)
                                                                           in its debt and money market investments.
l    Debt obligations of banks (both public and private sector) and
                                                                           If the Scheme decides to invest in securitised debt, it is the intention
     financial institutions
                                                                           of the Investment Manager that such investments will not normally
l    Money market instruments permitted by SEBI and / or RBI,              exceed 30% of the corpus of the Scheme and if the Scheme decides
     having residual maturities of up to 1 year                            to invest in ADRs/GDRs issued by Indian Companies and foreign
                                                                           securities in line with SEBI stipulation, it is the intention of the
l    Certificate of Deposits (CDs)                                         Investment Manager that such investments will not, normally exceed
l    Commercial Paper (CPs)                                                30% of the assets of the Scheme.
l    Bills of Exchange / Promissory Notes                                  For investments in ADRs / GDRs, the Fund Manager would consider
                                                                           the premium / discount to the underlying stock and the possibility
l    Securitised Debt                                                      of the discount narrowing or the premium expanding, liquidity
l    CBLO & reverse repos                                                  management of the portfolio, secondary and primary offerings of
                                                                           ADRs / GDRs.
l    Floating rate debt instruments
                                                                           Securitized debt, while relatively illiquid compared to other debt
l    Repurchase and reverse repurchase obligations in securities           investments provides a higher yield pickup. Hence only if the Fund
l    The non-convertible part of convertible securities                    Manager becomes cautious or negative on the Indian equity markets
                                                                           for a reasonably long period of time would he consider investing in
l    Any other domestic fixed income securities                            such instruments to improve the yield to the fund and investors as
l    Pass through, Pay through or other Participation Certificates         opposed to putting the monies in reverse repo and short term money
     representing interest in a pool of assets including receivables       market instruments. No investments shall be made in foreign
                                                                           securitized debt.
l    Any other instruments as may be permitted by SEBI from time
     to time.                                                              The scheme shall have derivative exposure as per the SEBI Guidelines
                                                                           issued from time to time.
The securities mentioned above could be listed, unlisted, privately
placed, secured, unsecured, rated or unrated and of any maturity. The      D. WHERE WILL THE SCHEME INVEST?
securities may be acquired through Initial Public Offerings (IPOs),        The corpus of the Scheme will be primarily invested in stocks of
secondary market operations and private placement, rights offers or        those sectors identified by the Fund Manager as playing a pivotal role
negotiated deals.                                                          in India's economic development. These could include consumption,
The Scheme may participate in securities lending as permitted under        infrastructure, outsourcing and global competitiveness. The fund
the Regulations.                                                           will attempt to take a medium term view when investing in such
                                                                           opportunities and will endeavour to run a more concentrated portfolio
                                                                           on a limited number of such opportunities. The Scheme can actively
HSBC ADVANTAGE INDIA FUND (HAIF)                                           move its assets between equity and fixed income securities depending
A. TYPE OF THE SCHEME                                                      on its view on these markets.
                                                                           Subject to the Regulations and other prevailing laws as applicable,
An open-ended flexi-theme equity Scheme.                                   the corpus of the Scheme can be invested in any (but not exclusively)
                                                                           of the following securities:
B. INVESTMENT OBJECTIVE
                                                                           l    Equity and equity related securities including convertible bonds
To generate long term capital growth from an actively managed                   and debentures and warrants carrying the right to obtain equity
portfolio of equity and equity related securities by investing primarily        shares.


22                                                                                       Combined Scheme Information Document (SID)
l    ADRs / GDRs issued by the Indian companies, subject to the           C. ASSET ALLOCATION OF THE SCHEME
     guidelines issued by the Reserve Bank of India and Securities        Under normal circumstances, it is anticipated that the asset allocation
     and Exchange Board of India.                                         of the Scheme will be as follows:
l    Foreign securities as may be permitted by SEBI / RBI.                 Instruments                      Indicative Allocation     Risk Profile
l    Stock index futures and such other derivative instruments                                                (% of net assets)
     permitted by SEBI / RBI.                                                                            Minimum         Maximum
l    Securities issued / guaranteed by the Central, State and local        Equities & Equity               80%             100%           High
     governments (including but not limited to coupon bearing bonds,       related securities
     zero coupon bonds and treasury bills)                                 Debt, Money Market               0%             20%          Low to
l    Debt obligations of domestic government agencies and statutory        instruments and Cash                                         Medium
     bodies, which may or may not carry a Central / State Government      The Scheme may review the above pattern of investments based on
     guarantee                                                            views on the equity and debt markets and asset liability management
l    Corporate debt (of both public and private sector undertakings)      needs and the portfolio shall be reviewed and rebalanced on a regular
                                                                          basis. However, at all times the portfolio will adhere to the overall
l    Debt obligations of banks (both public and private sector) and       investment objective of the Scheme.
     financial institutions                                               Investors may note that securities which provide higher returns,
l    Money market instruments permitted by SEBI and / or RBI,             typically display higher volatility. Accordingly, the investment
     having residual maturities of up to 1 year                           portfolio of the Scheme would reflect moderate to high volatility in
                                                                          its equity and equity related investments and low to moderate volatility
l    Certificate of Deposits (CDs)                                        in its debt and money market investments.
l    Commercial Paper (CPs)                                               If the Scheme decides to invest in securitised debt, it is the intention
                                                                          of the Investment Manager that such investments will not normally
l    Bills of Exchange / Promissory Notes                                 exceed 20% of the corpus of the Scheme and if the Scheme decides
l    Securitised Debt                                                     to invest in ADRs/GDRs issued by Indian Companies, it is the
                                                                          intention of the Investment Manager that such investments will not,
l    CBLO & reverse repos                                                 normally exceed 20% of the assets of the Scheme.
l    Floating Rate Instruments                                            For investments in ADRs / GDRs, the Fund Manager would consider
                                                                          the premium / discount to the underlying stock and the possibility
l    Repurchase and reverse repurchase obligations in securities
                                                                          of the discount narrowing or the premium expanding, liquidity
l    The non-convertible part of convertible securities                   management of the portfolio, secondary and primary offerings of
                                                                          ADRs / GDRs.
l    Any other domestic fixed income securities
                                                                          If the Scheme decides to invest in foreign securities, it is the intention
l    Pass through, Pay through or other Participation Certificates        of the Investment Manager that such investments will not normally
     representing interest in a pool of assets including receivables      exceed 20% of the corpus of the Scheme.
l    Any other instruments as may be permitted by RBI / SEBI / such       The exposure to derivative instruments shall be as per the SEBI and
     other Regulatory Authorities from time to time.                      applicable Guidelines issued from time to time.
The securities mentioned above could be listed, unlisted, privately       D. WHERE WILL THE SCHEME INVEST?
placed, secured, unsecured, rated or unrated and of any maturity. The
                                                                          i)    The corpus of the Scheme will be invested primarily in equity
securities may be acquired through Initial Public Offerings (IPOs),
                                                                                shares and in equity related securities including, but not limited
secondary market operations and private placement, rights offers or
                                                                                to, Cumulative Convertible Preference Shares, Fully Convertible
negotiated deals.                                                               Debentures and Bonds of corporates etc. Investments may also
The Scheme may participate in securities lending as permitted under             be made in partly convertible issue of Debentures and Bonds
the Regulations.                                                                including those issued on rights basis subject to the condition
                                                                                that, as far as possible, the non-convertible portion of debentures
                                                                                so acquired or subscribed will be disinvested within 12 months.
HSBC TAX SAVER EQUITY FUND                                                ii)   The Scheme shall invest at least 80% of the net assets under the
                                                                                Scheme in Equity and Equity related Securities. The Scheme
A. TYPE OF THE SCHEME                                                           shall strive to invest their funds in the manner stated above
An open-ended Equity Linked Savings Scheme                                      within a period of six months from the date of closure of the
                                                                                plan in every year. In exceptional circumstances, this requirement
The Scheme was launched as an Equity Linked Savings Scheme as                   may be dispensed with by the Scheme, in order to protect the
per the Notifications dated 3 November, 2005 and 13 December,                   interests of the unitholders.
2005 issued by the Department of Economic Affairs, Ministry of
Finance Government of India or such other scheme as the Central           iii) Pending investment of the funds in the above manner, the funds
Government may, by notification in the Official Gazette, specify               may be invested in short-term money market instruments and
under Section 80C of the Income Tax Act, 1961. Investors in the                other liquid instruments or both. The Scheme after 3 years from
Scheme are entitled to deductions of the amount invested in Units              the date of allotment of Units could hold investments in short
of the Scheme, subject to a maximum of Rs. 1,00,000, under and in              term money market instruments or other liquid instruments or
terms of Section 80C (2) (xiii) of the Income Tax Act, 1961.                   both only up to 20% of its net assets.
                                                                          iv) The Scheme may invest in any other instruments as may be
B. INVESTMENT OBJECTIVE                                                       permitted by RBI / SEBI / such other regulatory authorities
To provide long term capital appreciation by investing in a diversified       from time to time.
portfolio of equity & equity related instruments of companies across      The AMC may, from time to time, at its absolute discretion, alter,
various sectors and industries, with no capitalization bias. The Fund     modify or delete any of the above restrictions on investments subject
may also invest in fixed income securities.                               to, however, such modifications, changes, alterations, deletions being



HSBC Mutual Fund                                                                                                                                 23
in conformity with the Regulations and the guidelines governing the        l    Units issued by Mutual Funds/Exchange Traded Funds (both
Equity Linked Savings Scheme, from time to time.                                domestic and foreign)
The Scheme will actively move its assets between equity and debt           l    Derivative instruments permitted by SEBI / RBI.
securities depending on its view on these markets.
                                                                           l    Securities issued / guaranteed by the Central, State and local
The Scheme may participate in securities lending as permitted under             governments (including but not limited to coupon bearing bonds,
the Regulations.                                                                zero coupon bonds and treasury bills).
                                                                           l    Debt obligations of domestic government agencies and statutory
HSBC UNIQUE OPPORTUNITIES FUND                                                  bodies, which may or may not carry a Central / State Government
                                                                                guarantee.
A. TYPE OF THE SCHEME
A close-ended equity Scheme with automatic conversion into an              l    Corporate debt (of both public and private sector undertakings).
open-ended equity scheme at the end of three years from the date of        l    Debt obligations of banks (both public and private sector) and
allotment of Units.                                                             financial institutions.
B. INVESTMENT OBJECTIVE                                                    l    Money market instruments
To provide long-term capital growth from a diversified portfolio of        l    Certificate of Deposits (CDs).
equity and equity related instruments. The focus would be to invest
in stocks of companies facing "out-of-ordinary" conditions.                l    Commercial Papers (CPs).
                                                                           l    Bills of Exchange / Promissory Notes.
C. ASSET ALLOCATION OF THE SCHEME
Under normal circumstances, it is anticipated that the asset allocation    l    Securitised Debt.
of the Scheme will be as follows:                                          l    CBLO & reverse repos
Instruments                      Indicative Allocation     Risk Profile    l    Floating rate debt instruments.
                                   (% of net assets)
                                                                           l    Repurchase and reverse repurchase obligations in securities.
                              Minimum        Maximum
                                                                           l    The non-convertible part of convertible securities.
Equities & Equity               65%            100%           High
related instruments                                                        l    Any other domestic fixed income securities.
Debt, Money Market               0%             35%         Low to         l    Pass through, Pay through or other Participation Certificates
instruments (including                                      Medium              representing interest in a pool of assets including receivables.
cash & cash equivalents)
                                                                           l    Any other instruments as may be permitted by SEBI from time
If the Scheme decides to invest in securitised debt, it is the intention        to time.
of the Investment Manager that such investments will not normally
exceed 35% of the corpus of the Scheme and if the Scheme decides           The securities mentioned above could be listed, unlisted, privately
to invest in ADRs/GDRs issued by Indian Companies, it is the               placed, secured, unsecured, rated or unrated and of any maturity.
intention of the Investment Manager that such investments will not,
                                                                           The securities may be acquired through Initial Public Offerings
normally exceed 50% of the assets of the Scheme.
                                                                           (IPOs), secondary market operations and private placement, rights
Investors may note that securities which provide higher returns,           offers or negotiated deals.
typically display higher volatility. Accordingly, the investment
                                                                           The Scheme may participate in securities lending as permitted under
portfolio of the Scheme would reflect moderate to high volatility in
                                                                           the Regulations.
its equity and equity related investments and low to moderate volatility
in its debt and money market investments.
                                                                           HSBC DYNAMIC FUND
For investments in ADRs / GDRs, the Fund Manager would consider
the premium / discount to the underlying stock and the possibility         A. TYPE OF THE SCHEME
of the discount narrowing or the premium expanding, liquidity
management of the portfolio, secondary and primary offerings of            An open-ended Scheme.
ADRs / GDRs.
                                                                           B. INVESTMENT OBJECTIVE
The exposure to derivative instruments shall be as per the SEBI            To provide long term capital appreciation by allocating funds in
Guidelines issued from time to time.                                       equity and equity related instruments. It also has the flexibility to
The Scheme may review the above pattern of investments based on            move, entirely if required, into debt instruments in times that the
views on the equity and debt markets and asset liability management        view on equity markets seems negative.
needs and the portfolio shall be reviewed and rebalanced on a regular
basis. However, at all times the portfolio will adhere to the overall      C. ASSET ALLOCATION OF THE SCHEME
investment objective of the Scheme.                                        Under normal circumstances, it is anticipated that the asset allocation
                                                                           of the Scheme will be as follows:
D. WHERE WILL THE SCHEME INVEST?                                           Instruments                      Indicative Allocation     Risk Profile
The corpus of the Scheme will be primarily invested in equity and                                             (% of net assets)
equity related instruments. The Scheme can also invest in various
fixed income securities. The Scheme can actively move its assets                                         Minimum        Maximum
between equity and fixed income securities depending on its view           Equities & Equity                0%            100%           High
on these markets. The assets that fund can invest in :                     related instruments
l    Equity and equity related instruments (both domestic and foreign)     Debt and Money                   0%            100%         Low to
     including convertible bonds and debentures and warrants               Market instruments                                          Medium
     carrying the right to obtain equity shares.
                                                                           If the Scheme decides to invest in securitised debt, it is the intention
l    ADRs / GDRs issued by the Indian companies, subject to the            of the Investment Manager that such investments will not normally
     guidelines issued by the Reserve Bank of India and Securities         exceed 30% of the corpus of the Scheme and if the Scheme decides
     and Exchange Board of India.


24                                                                                       Combined Scheme Information Document (SID)
to invest in ADRs/GDRs and foreign securities in line with SEBI             HSBC SMALL CAP FUND
stipulation, it is the intention of the Investment Manager that such
investments will not, normally exceed 50% of the assets of the              A. TYPE OF THE SCHEME
Scheme. No investments shall be made in foreign securitised debt.           A close-ended equity scheme with automatic conversion into open-
                                                                            ended equity scheme at the end of three years from the date of
Investors may note that securities that provide higher returns, typically
                                                                            allotment of Units.
display higher volatility. Accordingly, the investment portfolio of the
Scheme would reflect moderate to high volatility in its equity and
                                                                            B. INVESTMENT OBJECTIVE
equity related investments and low to moderate volatility in its debt
and money market investments.                                               To provide long-term capital appreciation primarily from a diversified
                                                                            portfolio of equity and equity related instruments of small cap
The Scheme may review the above pattern of investments based on             companies.
views on the equity and debt markets and asset liability management
needs and the portfolio shall be reviewed and rebalanced on a regular       C. ASSET ALLOCATION OF THE SCHEME
basis. However, at all times the portfolio will adhere to the overall       Under normal circumstances, it is anticipated that the asset allocation
investment objective of the Scheme.                                         of the Scheme will be as follows:
The net notional exposure to derivative in HDF shall not be more            Instruments                       Indicative Allocation     Risk Profile
than 75% of the net assets. Investments in derivatives would be in                                              (% of net assets)
accordance with the SEBI Regulations.
                                                                                                          Minimum         Maximum
D. WHERE WILL THE SCHEME INVEST?                                            Equity and equity                65%            100%           High
The corpus of the Scheme will be invested in equity and equity              related instruments
related securities and debt securities including money market               of Small Cap
instruments. The Scheme can actively move its assets between equity         Companies*
and fixed income securities depending on its view on these markets.
                                                                            Equity and equity                0%              35%           High
The assets that fund can invest in :
                                                                            related instruments
l    Equity and equity related securities (both domestic and foreign)       of other than Small
     including convertible bonds and debentures and warrants                Cap Companies*
     carrying the right to obtain equity shares.
                                                                            Debt and money                   0%              35%         Low to
l    ADRs / GDRs, subject to the guidelines issued by the SEBI/             market instruments                                           Medium
     RBI.
                                                                            * Small Cap Companies are defined as the companies with the
l    Units issued by Mutual Funds/Exchange Traded Funds (both               market capitalization which is 1) lower than or equal to the market
     domestic and foreign)                                                  capitalization of the stock in the BSE Small Cap Index with the
l    Derivative instruments permitted by SEBI / RBI.                        largest market capitalization and 2) higher than or equal to the market
                                                                            capitalization of the stock in the BSE Small Cap Index with the
l    Securities issued / guaranteed by the Central, State and local
                                                                            smallest market capitalization.
     governments (including but not limited to coupon bearing bonds,
     zero coupon bonds and treasury bills).                                 If the Scheme decides to invest in securitised debt, it is the intention
l    Debt obligations of domestic government agencies and statutory         of the Investment Manager that such investments will not normally
     bodies, which may or may not carry a Central / State Government        exceed 35% of the corpus of the Scheme and if the Scheme decides
     guarantee.                                                             to invest in ADRs/GDRs and foreign securities in line with SEBI
                                                                            stipulation, it is the intention of the Investment Manager that such
l    Corporate debt (of both public and private sector undertakings).       investments will not, normally exceed 35% of the assets of the
l    Debt obligations of banks (both public and private sector) and         Scheme., however, such investments will be made provided they
     financial institutions.                                                meet the Investment Objective of the Scheme. No investments shall
l    Money market instruments                                               be made in foreign securitised debt. The net notional exposure to
                                                                            derivative in HSCF shall not be more than 75% of the net assets.
l    Certificate of Deposits (CDs).                                         Investments in derivatives would be in accordance with the SEBI
l    Commercial Papers (CPs).                                               Regulations.
l    Bills of Exchange / Promissory Notes.                                  Investors may note that securities that provide higher returns, typically
l    Securitised Debt.                                                      display higher volatility. Accordingly, the investment portfolio of the
                                                                            Scheme would reflect moderate to high volatility in its equity and
l    Floating rate debt instruments.                                        equity related investments and low to moderate volatility in its debt
l    Repurchase and reverse repurchase obligations in securities.           and money market investments.
l    The non-convertible part of convertible securities.                    The Scheme may review the above pattern of investments based on
l    Any other domestic fixed income instrument.                            views on the equity and debt markets and asset liability management
                                                                            needs and the portfolio shall be reviewed and rebalanced on a regular
l    Pass through, Pay through or other Participation Certificates          basis. However, at all times the portfolio will adhere to the overall
     representing interest in a pool of assets including receivables.       investment objective of the Scheme.
l    Any other instruments as may be permitted by RBI / SEBI / such
     other Regulatory Authorities from time to time.                        D. WHERE WILL THE SCHEME INVEST?
                                                                            The corpus of the Scheme will be primarily invested in equity and
The securities mentioned above could be listed, unlisted, privately
                                                                            equity related instuments. The Scheme can also invest in various
placed, secured, unsecured, rated or unrated and of any maturity.
                                                                            fixed income securities. The assets that fund can invest in:
The securities may be acquired through Initial Public Offerings
                                                                            l    Equity and equity related instuments (both domestic and foreign)
(IPOs), secondary market operations and private placement, rights
                                                                                 including convertible bonds and debentures and warrants
offers or negotiated deals.
                                                                                 carrying the right to obtain equity shares.
The Scheme may participate in stock lending as permitted under the          l    ADRs / GDRs issued by the Indian companies, subject to the
Regulations.                                                                     guidelines issued by the Reserve Bank of India and Securities
                                                                                 and Exchange Board of India.



HSBC Mutual Fund                                                                                                                                  25
l    Units issued by Mutual Funds/Exchange Traded Funds (both                 If the Scheme decides to invest in securitised debt, it is the intention
     domestic and foreign)                                                    of the Investment Manager that such investments will not normally
                                                                              exceed 50% of the corpus of the Plan and if the Scheme decides to
l    Derivative instruments permitted by SEBI / RBI.
                                                                              invest in ADRs/GDRs issued by Indian Companies and foreign
l    Securities issued / guaranteed by the Central, State and local           securities in line with SEBI stipulation, it is the intention of the
     governments (including but not limited to coupon bearing bonds,          Investment Manager that such investments will not, normally exceed
     zero coupon bonds and treasury bills).                                   15% of the assets of the Plan. .
l    Debt obligations of domestic government agencies and statutory           The scheme/plan shall have derivative exposure as per the SEBI
     bodies, which may or may not carry a Central / State Government          Guidelines issued from time to time.
     guarantee.
                                                                              It is expected that the modified duration of the portion of the portfolio
l    Corporate debt (of both public and private sector undertakings).         invested in debt and money market instrument will be in the range
l    Debt obligations of banks (both public and private sector) and           of 6 months - 8 years. However, this can undergo a change in case
     financial institutions.                                                  the market conditions warrant and according to the fund manager's
                                                                              view. The Scheme may review the above pattern of investments
l    Money market instruments                                                 based on views on the debt and equity markets and asset liability
l    Certificate of Deposits (CDs).                                           management needs and the portfolio shall be reviewed and rebalanced
                                                                              on a regular basis. However, at all times the portfolio will adhere to
l    Commercial Papers (CPs).                                                 the overall investment objective of the Scheme.
l    Bills of Exchange / Promissory Notes.                                    Savings Plan (SP)
l    Securitised Debt.                                                        Under normal circumstances, it is anticipated that the asset allocation
l    CBLO and reverse repos                                                   of the Plan will be as follows:

l    Floating rate debt instruments.                                          Instruments                       Indicative Allocation     Risk Profile
                                                                                                                  (% of net assets)
l    Repurchase and reverse repurchase obligations in securities.
                                                                                                            Minimum         Maximum
l    The non-convertible part of convertible securities.
                                                                              Debt Instruments and             0%             100%         Low to
l    Any other domestic fixed income securities.                              Money Market                                                 Medium
l    Pass through, Pay through or other Participation Certificates            Instruments (including
     representing interest in a pool of assets including receivables.         cash, money at call and
                                                                              reverse repos)
l    Any other instruments as may be permitted by SEBI from time
     to time.                                                                 Equities and Equity              0%              25%         Medium
                                                                              related instruments                                          to High
The securities mentioned above could be listed, unlisted, privately
placed, secured, unsecured, rated or unrated and of any maturity.             If the Scheme decides to invest in securitised debt, it is the intention
The securities may be acquired through Initial Public Offerings               of the Investment Manager that such investments will not normally
(IPOs), secondary market operations and private placement, rights             exceed 50% of the corpus of the Plan and if the Scheme decides to
offers or negotiated deals.                                                   invest in ADRs/GDRs issued by Indian Companies and foreign
                                                                              securities in line with SEBI stipulation, it is the intention of the
The Scheme may participate in stock lending as permitted under the            Investment Manager that such investments will not, normally exceed
Regulations.                                                                  25% of the assets of the Plan.
                                                                              The scheme/plan shall have derivative exposure as per the SEBI
HSBC MIP (HMIP)                                                               Guidelines issued from time to time.
A. TYPE OF THE SCHEME                                                         It is expected that the modified duration of the portion of the portfolio
An open ended Fund with Regular and Savings Plan. Monthly income              invested in debt and money market instrument will be in the range
is not assured and is subject to the availability of distributable surplus.   of 6 months - 8 years. However, this can undergo a change in case
                                                                              the market conditions warrant and according to the fund manager's
B. INVESTMENT OBJECTIVE                                                       view. The Scheme may review the above pattern of investments
To seek generation of reasonable returns through investments in               based on views on the debt and equity markets and asset liability
Debt and Money Market Instruments. The secondary objective of the             management needs and the portfolio shall be reviewed and rebalanced
scheme is to invest in equity and equity related instruments to seek          on a regular basis. However, at all times the portfolio will adhere to
capital appreciation.                                                         the overall investment objective of the Scheme.

C. ASSET ALLOCATION OF THE SCHEME                                             D. WHERE WILL THE SCHEME INVEST?
Regular Plan (RP)                                                             The corpus of the Scheme will be invested in various debt and money
Under normal circumstances, it is anticipated that the asset allocation       market instruments. The Scheme may also invest in equity and equity
of the Plan will be as follows:                                               related instruments. The Scheme will actively move its assets between
                                                                              equity and fixed income securities depending on its view on these
Instruments                        Indicative Allocation     Risk Profile     markets.
                                     (% of net assets)
                                                                              Subject to the Regulations and other prevailing laws as applicable,
                               Minimum         Maximum                        the corpus of the Scheme can be invested in any (but not exclusively)
Debt Instruments and              0%             100%          Low to         of the following securities:
Money Market                                                   Medium         l    Securities issued / guaranteed by the Central, State and local
Instruments (including                                                             governments (including but not limited to coupon bearing bonds,
cash, money at call                                                                zero coupon bonds and treasury bills)
and reverse repos)
                                                                              l    Debt obligations of domestic government agencies and statutory
Equities and Equity               0%              15%          Medium
                                                                                   bodies, which may or may not carry a Central / State Government
related instruments                                            to High
                                                                                   guarantee


26                                                                                          Combined Scheme Information Document (SID)
l    Corporate debt (of both public and private sector undertakings)      If the Plan decides to invest in securitised debt, it is the intention of
                                                                          the Investment Manager that such investments will not normally
l    Debt obligations of banks (both public and private sector) and
     financial institutions                                               exceed 50% of the corpus of the Plan and if the Plan decides to invest
                                                                          in foreign securities, it is the intention of the Investment Manager
l    Money market instruments permitted by SEBI and / or RBI,             that such investments will not, normally exceed 25% of the assets
     having residual maturities of up to 1 year                           of the Plan.
l    ADRs / GDRs issued by Indian Companies                               The Plan shall under normal circumstances not have exposure of
l    Foreign Securities as may be permitted by SEBI / RBI                 more than 50% of its net assets in derivative instruments. Investments
                                                                          in derivatives would be in accordance with the SEBI Regulations.
l    Certificate of Deposits (CDs)
                                                                          The Plan will endeavour to invest in shorter duration instruments in
l    Commercial Paper (CPs)                                               line with the investment objective. Investments will be in money
l    Bills of Exchange / Promissory Notes                                 market instruments and debt instruments depending on prevailing
                                                                          interest rates and a view of the market.
l    Securitised Debt
                                                                          The portfolio duration will undergo a change according to the expected
l    CBLO & reverse repos
                                                                          movement in interest rates. Liquidity conditions and other macro-
l    Floating rate debt instruments                                       economic factors affecting interest rates shall be taken into account
l    Repurchase and reverse repurchase obligations in securities          for varying the portfolio duration. Under normal circumstances, if
                                                                          the interest rates move down, the duration of the portfolio shall be
l    The non-convertible part of convertible securities                   increased and vice versa.
l    Any other domestic fixed income securities                           It is expected that the modified duration for the Short Term Plan
     Equity and equity related securities including convertible bonds     could range between 3-20 months depending on interest rate views.
     and debentures and warrants carrying the right to obtain equity      However, this can undergo a change in case the market conditions
     shares.                                                              warrant and according to the fund manager's view.
l    Derivatives Instruments as may be permitted by SEBI / RBI.           The Plan may review the above pattern of investments based on
                                                                          views on interest rates and asset liability management needs. However,
l    Pass through, Pay through or other Participation Certificates        at all times the portfolio will adhere to the overall investment objectives
     representing interest in a pool of assets including receivables      of the Scheme.
l    Any other instruments as may be permitted by RBI / SEBI / such       The Plan may participate in securities lending as permitted under the
     other Regulatory Authorities from time to time.
                                                                          Regulations.
The securities mentioned above could be listed, unlisted, privately
placed, secured, unsecured, rated or unrated and of any maturity. The
                                                                          Investment Plan (IP)
securities may be acquired through New Fund Offers (NFOs),                Under normal circumstances, it is anticipated that the asset allocation
secondary market operations and private placement, rights offers or       of the Plan will be as follows:
negotiated deals.                                                         Instruments                             Indicative Allocation      Risk
The Scheme may participate in securities lending as permitted under                                                 (% of net assets)       Profile
the Regulations.                                                                                                 Minimum Maximum
                                                                          Debt Instruments with residual           40%         100%       Low to
HSBC INCOME FUND (HIF)                                                    maturity / average maturity                                     Medium
                                                                          greater than 182 days
A. TYPE OF THE SCHEME
                                                                          Money Market and debt                     0%          60%       Low to
An open-ended income Scheme
                                                                          instruments (including cash,                                    Medium
                                                                          money at call) with residual
B. INVESTMENT OBJECTIVE                                                   maturity / average maturity less
To provide a reasonable income through a diversified portfolio of         than 183 days and floating rate
fixed income securities. The AMC's view of interest rate trends and       instruments where the reset
the nature of the Plans will be reflected in the type and maturities      tenor is one year or less
of securities in which the Short Term and Investment Plans are
invested.                                                                 If the Plan decides to invest in securitised debt, it is the intention of
                                                                          the Investment Manager that such investments will not normally
C. ASSET ALLOCATION OF THE SCHEME                                         exceed 50% of the corpus of the Plan and if the Plan decides to invest
Short Term Plan (ST)                                                      in foreign securities, it is the intention of the Investment Manager
                                                                          that such investments will not, normally exceed 25% of the assets
Under normal circumstances, it is anticipated that the asset allocation
                                                                          of the Plan.
of the Plan will be as follows:
                                                                          The Plan shall under normal circumstances not have exposure of
Instruments                           Indicative Allocation    Risk
                                                                          more than 50% of its net assets in derivative instruments. Investments
                                        (% of net assets)     Profile
                                                                          in derivatives would be in accordance with the SEBI Regulations.
                                     Minimum Maximum
                                                                          The portfolio duration will undergo a change according to the expected
Debt Instruments and Money             40%         100%       Low to      movement in interest rates. Liquidity conditions and other macro-
Market Instruments with residual                              Medium      economic factors affecting interest rates shall be taken into account
maturity / average maturity less                                          for varying the portfolio duration. Under normal circumstances, if
than 367 days and floating rate                                           the interest rates move down, the duration of the portfolio shall be
instruments where the reset                                               increased and vice versa.
tenor is one year or less
                                                                          It is expected that the modified duration for the Investment Plan will
Debt Instruments with residual          0%         60%        Low to      be in a range of 6 months - 8 years depending on the interest rate
maturity / average maturity                                   Medium      view. However, this can undergo a change in case the market conditions
greater than 1 year                                                       warrant and according to the fund manager's view.



HSBC Mutual Fund                                                                                                                                  27
The Plan may review the above pattern of investments based on                 HSBC FLOATING RATE FUND (HFRF)
views on interest rates and asset liability management needs. However,
at all times the portfolio will adhere to the overall investment objectives   A. TYPE OF THE SCHEME
of the Scheme.                                                                An open ended income scheme

The Plan may participate in securities lending as permitted under the         B. INVESTMENT OBJECTIVE
Regulations.
                                                                              HSBC Floating Rate Fund is an open ended income scheme aiming
                                                                              to seek to generate reasonable return with commensurate risk from
D. WHERE WILL THE SCHEME INVEST?                                              a portfolio comprised of floating rate debt instruments and fixed rate
The corpus of the Scheme will be invested primarily in a range of             debt instruments swapped for floating rate returns. The scheme may
debt and money market instruments.                                            also invest in fixed rate money market and debt instruments.
The Short Term Plan will invest predominantly in debt and money               There can be no assurance that the Scheme objective can be realised.
market instruments where interest rate risk is low. The Investment
Plan aims to provide investors with income, with appropriate liquidity,       C. ASSET ALLOCATION OF THE SCHEME
and therefore will invest in a mix of debt and money market                   Short Term Plan (ST)
instruments, over varying maturities.                                         Under normal circumstances, it is anticipated that the asset allocation
Subject to the Regulations and other prevailing laws as applicable,           of the Plan will be as follows:
the corpus of the Scheme can be invested in any (but not exclusively)         Instruments                            Indicative Allocation    Risk
of the following securities:                                                                                           (% of net assets)     Profile
l    Securities issued / guaranteed by the Central, State and local                                                Minimum Maximum
     governments (including but not limited to coupon bearing bonds,          Floating rate instruments and           65%        100%        Low to
     zero coupon bonds and treasury bills)                                    Money Market Instruments                                       Medium
                                                                              (including fixed rate
l    Debt obligations of domestic government agencies and statutory
                                                                              instruments swapped for
     bodies, which may or may not carry a Central / State Government
                                                                              floating rate returns)
     guarantee
                                                                              Fixed rate debt Instruments             0%          35%        Low to
l    Corporate debt (of both public and private sector undertakings)          (including floating rate                                       Medium
                                                                              instruments swapped for
l    Debt obligations of banks (both public and private sector) and
                                                                              fixed rate returns)
     financial institutions
l    Money market instruments permitted by SEBI and / or RBI,                 If the Plan decides to invest in foreign securities, it is the intention
     having residual maturities of up to 1 year                               of the Investment Manager that such investments will not, normally
                                                                              exceed 25% of the assets of the Plan. If the Plan decides to invest
l    Certificate of Deposits (CDs)                                            in securitised debt, it is the intention of the Investment Manager that
                                                                              such investments will not normally exceed 50% of the corpus of the
l    Commercial Paper (CPs)                                                   Plan.
l    Bills of Exchange / Promissory Notes                                     The Plan shall under normal circumstances not have exposure of
                                                                              more than 50% of its net assets in derivative instruments. Investments
l    Securitised Debt                                                         in derivatives would be in accordance with the SEBI Regulations.
l    CBLO & reverse repos                                                     Short Term Plan would generally be invested in instruments with
                                                                              shorter residual maturities and is suitable for investors with short
l    Repurchase and reverse repurchase obligations in securities
                                                                              term investment horizon. It is expected that the average maturity of
l    Derivatives                                                              the portfolio shall normally be upto 91 days in case of the Short Term
                                                                              Plan. The maximum maturity of instruments in this Plan will be in
l    The non-convertible part of convertible securities                       line with requirements specified for a 'liquid' scheme / plan by SEBI.
                                                                              For the computation of maturity of an instrument, in case of floating
l    Any other domestic fixed income securities                               rate instruments, the interest reset frequency will be considered
l    Foreign Securities as may be permitted by SEBI / RBI                     instead of the tenor of the instrument. In case the Scheme converts
                                                                              a fixed rate instrument into floating by paying fixed rate, then the
l    Investments in overseas mutual funds or unit trusts which invest         duration of portfolio would stand reduced to that extent. The Plan
     in the permitted foreign debt securities or the permitted foreign        may review the above pattern of investments based on views on the
     government securities or which are rated and registered with             debt markets and asset liability management needs and the portfolio
     overseas regulators                                                      shall be reviewed and rebalanced on a regular basis. Under normal
                                                                              circumstances, the Plan shall invest 65% or more of the net assets
l    Any international fixed income securities, as may be permitted           under the Plan in floating rate instruments and money market
     from time to time                                                        instrument. However, at all times the portfolio will adhere to the
                                                                              overall investment objective of the Scheme.
l    Pass through, Pay through or other Participation Certificates
     representing interest in a pool of assets including receivables          Pursuant to SEBI Circular no. SEBI/IMD/CIR No. 13/ 150975/ 09
                                                                              dated January 19, 2009, the characteristics of portfolio of HFRF-ST
l    Any other instruments as may be permitted by RBI / SEBI / such           (liquid scheme/ plan) has been revised as follows:
     other Regulatory Authorities from time to time.
                                                                              (A) Effective February 1, 2009 till April 30, 2009:
The securities mentioned above could be listed, unlisted, privately               (i) The Liquid Schemes / Plans shall make investment in/
placed, secured, unsecured, rated or unrated and of any maturity. The                  purchase debt and money market securities with maturity
securities may be acquired through New Fund Offers (NFOs),                             of upto 182 days only.
secondary market operations and private placement, rights offers or               (ii) In case of securities with put and call options (daily or
negotiated deals.                                                                      otherwise) the residual maturity shall not be greater than
                                                                                       182 days.



28                                                                                          Combined Scheme Information Document (SID)
(B) Effective May 1, 2009:                                                 Average Maturity of the Plans
     (i) The Liquid Schemes /Plans shall make investment in/               The average maturity of the portfolio of HFRF - ST shall normally
          purchase debt and money market securities with maturity          be upto 91 days, while the average maturity of the portfolio of HFRF-
          of upto 91 days only.                                            LT shall normally be between 1 month and 12 months and shall not
                                                                           exceed 1 year. In a scenario where the fund manager has a bearish
     (ii) In case of securities with put and call options (daily or        view on interest rates there could be an overlap between the maturity
          otherwise) the residual maturity shall not be greater than 91    profiles of the two plans as the average maturity of the Long Term
          days.                                                            Plan could be reduced to reflect the interest rate view of the fund
The explanatory notes relating to the provisions laid under (A) and        manager. Thus the range of maturity mentioned for the Long Term
(B) above are as follows:                                                  Plan would provide the fund manager with a much wider flexibility
                                                                           to reduce or increase the maturity profile of the portfolio in accordance
     a) In case of securities where the principal is to be repaid in       with the investment objective of the Long Term Plan. In case of the
        a single payout, the maturity of the securities shall mean         Short Term Plan the range available to increase the average maturity
        residual maturity. In case the principal is to be repaid in        of the Portfolio would be restricted to 91 days.
        more than one payout then the maturity of the securities
        shall be calculated on the basis of weighted average maturity      D. WHERE WILL THE SCHEME INVEST?
        of security.
                                                                           The Scheme will invest in floating rate debt instruments and fixed
     b) In case the maturity of the security falls on a non-business       rate debt instruments which shall be swapped for floating rate returns.
        day then settlement of securities will take place on the next      The scheme may also invest in fixed rate money market and debt
        business day.                                                      instruments.
     c) Further, inter-scheme transfers of securities having maturity
        of upto 365 days and held in other schemes as on February          Subject to the Regulations and other prevailing laws as applicable,
        01, 2009 shall be permitted in the Liquid Schemes / Plans          the corpus of the Scheme can be invested in any (but not exclusively)
        till October 31, 2009. With effect from November 1, 2009           of the following securities (with floating / fixed interest rates):
        such inter-scheme transfers of securities held in other            l    Securities issued / guaranteed by the Central, State and local
        schemes having maturity of upto 91 days only shall be                   governments (including but not limited to coupon bearing bonds,
        permitted in the Liquid Schemes / Plans.                                zero coupon bonds and treasury bills)
Long Term Plan (LT)                                                        l    Debt obligations of domestic government agencies and statutory
Under normal circumstances, it is anticipated that the asset allocation         bodies, which may or may not carry a Central / State Government
of the Plan will be as follows:                                                 guarantee
Instruments                            Indicative Allocation    Risk       l    Corporate debt (of both public and private sector undertakings)
                                         (% of net assets)     Profile     l    Debt obligations of banks (both public and private sector) and
                                     Minimum Maximum                            financial institutions
Floating rate instruments and           65%        100%        Low to      l    Money market instruments permitted by SEBI and / or RBI,
Money Market Instruments                                       Medium           having residual maturities of up to 1 year
(including fixed rate                                                      l    Certificate of Deposits (CDs)
instruments swapped for
                                                                           l    Commercial Paper (CPs)
floating rate returns)
                                                                           l    Bills of Exchange / Promissory Notes
Fixed rate debt Instruments             0%          35%        Low to
(including floating rate                                       Medium      l    Securitised Debt
instruments swapped for                                                    l    CBLO & reverse repos
fixed rate returns)
                                                                           l    Repurchase and reverse repurchase obligations in securities
If the Plan decides to invest in foreign securities, it is the intention   l    The non-convertible part of convertible securities
of the Investment Manager that such investments will not, normally
exceed 25% of the assets of the Plan. If the Plan decides to invest        l    Any other domestic floating / fixed income instrument
in securitised debt, it is the intention of the Investment Manager that         Pass through, Pay through or other Participation Certificates
such investments will not normally exceed 50% of the corpus of the              representing interest in a pool of assets including receivables
Plan.
                                                                           l    Any other instruments as may be permitted by RBI / SEBI / such
The Plan shall under normal circumstances not have exposure of                  other Regulatory Authorities from time to time.
more than 50% of its net assets in derivative instruments. Investments     The securities mentioned above could be listed, unlisted, privately
in derivatives would be in accordance with the SEBI Regulations.           placed, secured, unsecured, rated or unrated and of any maturity. The
Long Term Plan would normally invest in instruments with longer            securities may be acquired through New Fund Offers (NFOs),
residual maturity and is suitable for investors with long term             secondary market operations and private placement, rights offers or
investment horizon. It is expected that the average maturity of the        negotiated deals.
portfolio shall normally be between 1 month and 12 months and shall
                                                                           The Scheme may participate in securities lending as permitted under
not exceed 1 year in case of Long Term Plan. The Plan would look
                                                                           the Regulations.
to invest in fixed rate instruments of up to 5 years depending on the
interest rate cycle and market conditions. For the computation of
maturity of an instrument, in case of floating rate instruments, the       HSBC ULTRA SHORT TERM BOND FUND
interest reset frequency will be considered instead of the tenor of the    (HUSBF)
instrument. In case the scheme converts a fixed rate instrument into
floating by paying fixed rate, then the duration of portfolio would        A. TYPE OF THE SCHEME
stand reduced to that extent. The Scheme may review the above
                                                                           An open ended Debt Scheme
pattern of investments based on views on the debt markets and asset
liability management needs and the portfolio shall be reviewed and
rebalanced on a regular basis. Under normal circumstances, the Plan
                                                                           B. INVESTMENT OBJECTIVE
shall invest 65% or more of the net assets under the Plan in floating      The investment objective is to provide liquidity and reasonable
rate instruments However, at all times the portfolio will adhere to the    returns by investing primarily in a mix of short term debt and money
overall investment objective of the Scheme.                                market instruments.


HSBC Mutual Fund                                                                                                                                29
C. ASSET ALLOCATION OF THE SCHEME                                            l    Derivatives
Under normal circumstances, it is anticipated that the asset allocation      l    The non-convertible part of convertible securities
of the Scheme will be as follows:
                                                                             l    Any other domestic fixed income securities
Instruments                             Indicative Allocation     Risk
                                          (% of net assets)      Profile     l    Any foreign debt security with highest rating in countries with
                                                                                  fully convertible currencies
                                      Minimum Maximum
                                                                             l    Investments in overseas mutual funds or unit trusts which invest
Money Market & Debt                      70%         100%         Low
                                                                                  in the permitted foreign debt securities or the permitted foreign
instruments with maturity /
                                                                                  government securities or which are rated and registered with
average maturity / interest rate
                                                                                  overseas regulators
reset not greater that 1 year
                                                                             l    Any international fixed income securities, as may be permitted
Debt instruments with maturity            0%         30%        Low to
                                                                                  from time to time
greater than 1 year                                             Medium
                                                                             l    Pass through, Pay through or other Participation Certificates
If the Scheme decides to invest in foreign securities, it is the intention
                                                                                  representing interest in a pool of assets including receivables
of the Investment Manager that such investments will not, normally
exceed 30% of the assets of the Scheme. However, the AMC with                l    Any other instruments as may be permitted by RBI / SEBI / such
a view to protecting the interests of the investors, may increase                 other Regulatory Authorities from time to time.
exposure in foreign securities as deemed fit from time to time.
                                                                             The securities mentioned above could be listed, unlisted, privately
The scheme shall have derivative exposure as per the SEBI Guidelines         placed, secured, unsecured, rated or unrated and of any maturity. The
issued from time to time.                                                    securities may be acquired through Initial Public Offerings (IPOs),
                                                                             secondary market operations, and private placement, rights offers or
The portfolio duration will undergo a change according to the expected
                                                                             negotiated deals.
movement in interest rates. Liquidity conditions and other macro-
economic factors affecting interest rates shall be taken into account
for varying the portfolio duration. Under normal circumstances, if           HSBC GILT FUND (HGF)
the interest rates move down, the duration of the portfolio shall be
increased and vice versa.                                                    A. TYPE OF THE SCHEME
                                                                             An open-ended Gilt Scheme
The Scheme may review the above pattern of investments based on
views on the debt markets and asset liability management needs and           The AMC and the Trustees reserve the right to introduce such other
the portfolio shall be reviewed and rebalanced on a regular basis.           Plans / Options as they deem necessary from time to time, in
However, at all times the portfolio will adhere to the overall investment    accordance with the SEBI (Regulations).
objective of the Scheme.
                                                                             B. INVESTMENT OBJECTIVE
Securitised debt, while relatively illiquid compared to other debt
investments provides a higher yield pickup. Hence only if the Fund           The Scheme seeks to generate reasonable returns through investments
Manager becomes cautious or negative on the Indian markets for a             in Government Securities of various maturities. The AMC's view of
reasonably long period of time would he consider investing in such           interest rate trends and the nature of the plans will be reflected in the
instruments to improve the yield to the fund and investors as opposed        maturities of securities in which the Plans are invested.
to putting the monies in reverse repo and short term money market            There can be no assurance that the investment objectives of the
instruments upto 50% of net assets of the Scheme. No investments             Scheme / Plan(s) will be achieved. The Scheme / Plan(s) do not
shall be made in foreign securitised debt.                                   guarantee / indicate any returns.
D. WHERE WILL THE SCHEME INVEST?                                             C. ASSET ALLOCATION OF THE SCHEME
The corpus of the Scheme will be invested primarily in a range of            Under normal circumstances, it is anticipated that the asset allocation
highly liquid short-term debt and money market instruments.                  of the Scheme will be as follows:
Subject to the Regulations and other prevailing laws as applicable,          Instruments                  Indicative Allocation      Risk Profile
the corpus of the Scheme can be invested in any (but not exclusively)                                       (% of net assets)
of the following securities:
                                                                                                         Minimum Maximum
l    Securities issued / guaranteed by the Central, State and local
     governments (including but not limited to coupon bearing bonds,         Government securities          0%         100%       Sovereign risk in
     zero coupon bonds and treasury bills)                                   created and issued by                                case of securities
                                                                             the Central Government                               of Central
l    Debt obligations of domestic government agencies and statutory          and / or State                                       Government / low
     bodies, which may or may not carry a Central / State Government         Government(s), repos /                               risk in case of
     guarantee                                                               reverse repos in                                     securities of
                                                                             government securities                                State Government
l    Corporate debt (of both public and private sector undertakings)         and /or other similar
l    Debt obligations of banks (both public and private sector) and          instruments, as may be
     development financial institutions                                      permitted from
                                                                             time to time
l    Money market instruments permitted by SEBI and / or RBI,
     having residual maturities of up to 1 year                              The scheme is suitable for investors seeking to obtain returns from
                                                                             investing in Gilts (including Treasury Bills) across the yield curve
l    Certificate of Deposits (CDs)                                           with Modified Duration of the portfolio normally not exceeding 15
l    Commercial Papers (CPs)                                                 years. Liquidity conditions and other macro economic factors affecting
                                                                             interest rates shall be taken into account for varying the portfolio
l    Bills of Exchange / Promissory Notes                                    duration. However, this can undergo a change in case the market
                                                                             conditions warrant and according to the fund manager's view.
l    Securitised Debt
                                                                             The scheme shall under normal circumstances not have exposure of
l    CBLO & reverse repos
                                                                             more than 50% of its net assets in derivative instruments. Investments
l    Repurchase and reverse repurchase obligations in securities             in derivatives would be in accordance with the SEBI Regulations.

30                                                                                         Combined Scheme Information Document (SID)
D. WHERE WILL THE SCHEME INVEST?                                                   (ii) In case of securities with put and call options (daily or
The corpus of the Scheme will be invested primarily in a range of                       otherwise) the residual maturity shall not be greater than
government securities conceived and issued by the Central                               182 days.
Government and / or State Government(s), repos / reverse repos in             (B) Effective May 1, 2009:
government securities and /or other instruments, as may be permitted
from time to time and may also participate in the auction of                       (i)   The Liquid Schemes / Plans shall make investment in /
Government Securities and may underwrite issuance of Government                          purchase debt and money market securities with maturity
Securities subject to it being so permitted. From time to time, the                      of upto 91 days only.
Scheme may hold cash. A part of the net assets may be invested in                  (ii) In case of securities with put and call options (daily or
CBLO & reverse repos or in an alternative investment for these                          otherwise) the residual maturity shall not be greater than
instruments as may be provided by RBI for meeting liquidity                             91 days.
requirements. The Scheme / Plan(s) will not invest in any other
securities such as shares and / or debentures or in bonds issued by           The explanatory notes relating to the provisions laid under (A) and
any other entity other than Central or a State Government. However,           (B) above are as follows:
as permitted by the SEBI Regulations, the Scheme retains the right
to invest the funds of the Scheme in short term deposits of scheduled         a)   In case of securities where the principal is to be repaid in a
commercial banks, pending deployment of funds of the Scheme in                     single payout, the maturity of the securities shall mean residual
terms of the investment objectives. Under normal circumstances, at                 maturity. In case the principal is to be repaid in more than one
least 65 per cent of the value of its total assets shall be invested in            payout then the maturity of the securities shall be calculated on
Government Securities.                                                             the basis of weighted average maturity of security.

The scheme may review the above pattern of investments based on               b)   In case the maturity of the security falls on a non-Business Day
views on interest rates and asset liability management needs. However,             then settlement of securities will take place on the next Business
at all times the portfolios will adhere to the overall investment                  Day.
objectives of the Scheme.                                                     c)   Further, inter-scheme transfers of securities having maturity of
The Scheme may participate in securities lending as permitted under                upto 365 days and held in other schemes as on February 01,
the Regulations.                                                                   2009 shall be permitted in the Scheme till October 31, 2009.
                                                                                   With effect from November 1, 2009 such inter-scheme transfers
                                                                                   of securities held in other schemes having maturity of upto 91
HSBC CASH FUND (HCF)                                                               days only shall be permitted in the Scheme.
A. TYPE OF THE SCHEME                                                         It is expected that the modified duration of instruments for HCF will
An open-ended liquid Scheme                                                   be upto 91 days.
                                                                              The Scheme may review the above pattern of investments based on
B. INVESTMENT OBJECTIVE                                                       views on interest rates and asset liability management needs. However,
The investment objective is to provide reasonable returns,                    at all times the portfolio will adhere to the overall investment objectives
commensurate with low risk while providing a high level of liquidity,         of the Scheme.
through a portfolio of money market and debt securities. However
there can be no assurance that the scheme objective can be realised.          The Scheme may participate in securities lending as permitted under
                                                                              the Regulations.
C. ASSET ALLOCATION OF THE SCHEME
                                                                              D. WHERE WILL THE SCHEME INVEST?
Under normal circumstances, it is anticipated that the asset allocation
of the Scheme will be as follows:                                             The corpus of the Scheme will be invested primarily in a range of
                                                                              highly liquid short-term debt and money market instruments.
Instruments                             Indicative Allocation      Risk
                                          (% of net assets)       Profile     Subject to the Regulations and other prevailing laws as applicable,
                                                                              the corpus of the Scheme can be invested in any (but not exclusively)
                                       Minimum Maximum                        of the following securities:
Debt Instruments with residual            0%          50%       Low to        l    Securities issued / guaranteed by the Central, State and local
maturity / average maturity                                     Medium             governments (including but not limited to coupon bearing bonds,
upto 91days                                                                        zero coupon bonds and treasury bills)
Money Market instruments                  0%         100%       Low to        l    Debt obligations of domestic government agencies and statutory
(including cash and money at                                    Medium             bodies, which may or may not carry a Central / State Government
call) with residual maturity /                                                     guarantee
average maturity upto 91days
                                                                              l    Corporate debt (of both public and private sector undertakings)
If the Scheme decides to invest in securitised debt, it is the intention
of the Investment Manager that such investments will not normally             l    Debt obligations of banks (both public and private sector) and
exceed 30% of the corpus of the Scheme and if the Scheme decides                   development financial institutions
to invest in foreign debt securities, it is the intention of the Investment   l    Money market instruments permitted by SEBI and / or RBI,
Manager that such investments will not, normally exceed 25% of the                 having residual maturities of up to 1 year
assets of the Scheme.
                                                                              l    Certificate of Deposits (CDs)
The scheme shall under normal circumstances not have exposure of
                                                                              l    Commercial Paper (CPs)
more than 50% of its net assets in derivative instruments. Investments
in derivatives would be in accordance with the SEBI Regulations.              l    Bank Fixed Deposits as permitted by SEBI
Pursuant to SEBI Circular no. SEBI/IMD/CIR No. 13/ 150975/ 09                 l    Bills of Exchange / Promissory Notes
dated January 19, 2009, the characteristics of portfolio of HCF has           l    Securitised Debt
been revised as follows:
                                                                              l    CBLO & reverse repos
(A) Effective February 1, 2009 till April 30, 2009:
                                                                              l    Repurchase and reverse repurchase obligations in securities
     (i)   The Liquid Schemes / Plans shall make investment in /
           purchase debt and money market securities with maturity            l    Derivatives
           of upto 182 days only.                                             l    The non-convertible part of convertible securities

HSBC Mutual Fund                                                                                                                                     31
l    Any other domestic fixed income securities                            l    Money market instruments permitted by SEBI and / or RBI,
                                                                                having residual maturities of up to 1 year
l    Any foreign debt security with highest rating in countries with
     fully convertible currencies                                          l    Certificate of Deposits (CDs)
l    Investments in overseas mutual funds or unit trusts which invest      l    Commercial Paper (CPs)
     in the permitted foreign debt securities or the permitted foreign
     government securities or which are rated and registered with          l    Bank Fixed Deposits as permitted by SEBI
     overseas regulators                                                   l    Bills of Exchange / Promissory Notes
l    Any international fixed income securities, as may be permitted
                                                                           l    Securitised Debt
     from time to time
l    Pass through, Pay through or other Participation Certificates         l    Floating rate instruments
     representing interest in a pool of assets including receivables       l    Repurchase and reverse repurchase obligations in securities
l    Any other instruments as may be permitted by RBI / SEBI / such        l    Derivative instruments permitted by SEBI / RBI.
     other Regulatory Authorities from time to time.
                                                                           l    The non-convertible part of convertible securities
The securities mentioned above could be listed, unlisted, privately
placed, secured, unsecured, rated or unrated and of any maturity. The      l    Any other domestic fixed income securities
securities may be acquired through New Fund Offers (NFOs),                 l    Any foreign debt security with highest rating in countries with
secondary market operations, and private placement, rights offers or            fully convertible currencies
negotiated deals.
                                                                           l    Investments in overseas mutual funds or unit trusts which invest
                                                                                in the permitted foreign debt securities or the permitted foreign
HSBC FLEXI DEBT FUND                                                            government securities or which are rated and registered with
A. TYPE OF THE SCHEME                                                           overseas regulators
An open-ended Debt Scheme                                                  l    Any international fixed income securities, as may be permitted
                                                                                from time to time
B. INVESTMENT OBJECTIVE
                                                                           l    Pass through, Pay through or other Participation Certificates
To deliver returns in the form of interest income and capital gains,            representing interest in a pool of assets including receivables.
along with high liquidity, commensurate with the current view on the
markets and the interest rate cycle, through active investment in debt     Any other instruments as may be permitted by RBI / SEBI / such
and money market instruments.                                              other Regulatory Authorities from time to time. The securities
                                                                           mentioned above could be listed, unlisted, privately placed, secured,
C. ASSET ALLOCATION OF THE SCHEME                                          unsecured, rated or unrated and of any maturity. The securities may
Under normal circumstances, it is anticipated that the asset allocation    be acquired through Initial Public Offerings (IPOs), secondary market
of the Scheme will be as follows:                                          operations, and private placement, rights offers or negotiated deals.
                                                                           The Scheme may participate in securities lending as permitted under
Instruments                      Indicative Allocation     Risk Profile    the Regulations.
                                   (% of net assets)
                              Minimum        Maximum                       HSBC EMERGING MARKETS FUND (HEMF)
Debt and money market            0%            100%         Low to
instruments                                                 Medium
                                                                           A. TYPE OF THE SCHEME
                                                                           An open-ended Scheme
If the Scheme decides to invest in securitised debt, it is the intention
of the Investment Manager that such investments will not normally          B. INVESTMENT OBJECTIVE
exceed 50% of the corpus of the Scheme and if the Scheme decides
                                                                           To provide long term capital appreciation by investing in India and
to invest in foreign securities in line with SEBI stipulation, it is the
                                                                           in the emerging markets, in equity and equity related instruments,
intention of the Investment Manager that such investments will not,
                                                                           share classes and units/securities issued by overseas mutual funds or
normally exceed 30% of the assets of the Scheme. No investments
                                                                           unit trusts. The fund may also invest a limited proportion in debt and
shall be made in foreign securitised debt.
                                                                           money market instruments.
The net notional exposure to derivative shall not be more than 75%
of the net assets. Investments in derivatives would be in accordance       C. ASSET ALLOCATION OF THE SCHEME
with the SEBI Regulations.                                                 Under normal circumstances, it is anticipated that the asset allocation
                                                                           of the Scheme will be as follows:
D. WHERE WILL THE SCHEME INVEST?
                                                                           Instruments                            Indicative Allocation    Risk
The corpus of the Scheme will be invested in debt and money market
                                                                                                                    (% of net assets)     Profile
instruments where interest rate risk is low to medium. Subject to the
Regulations and other prevailing laws as applicable, the corpus of                                              Minimum Maximum
the Scheme can be invested in any (but not exclusively) of the             Units/securities issued by              80%        100%        Medium
following instruments:                                                     overseas mutual funds or unit                                  to High
l    Securities issued / guaranteed by the Central, State and local        trusts of emerging markets*
     governments (including but not limited to coupon bearing bonds,       Domestic Debt, Money Market             0%          20%        Low to
     zero coupon bonds and treasury bills)                                 instruments (including CBLO &                                  Medium
l    Debt obligations of domestic government agencies and statutory        reverse repo) and units of
     bodies, which may or may not carry a Central / State Government       domestic mutual funds
     guarantee                                                             * Currently HSBC GEM Equity Fund is envisaged to be used for
l    Corporate debt (of both public and private sector undertakings)       investing in the emerging markets however, HEMF could use any
                                                                           other global fund of HSBC Group to invest in emerging markets.
l    Debt obligations of banks (both public and private sector) and
     development financial institutions                                    If the Scheme decides to invest in securitised debt, it is the intention
                                                                           of the Investment Manager that such investments will not normally


32                                                                                       Combined Scheme Information Document (SID)
exceed 10% of the corpus of the Scheme HEMF will not invest in             The Scheme may participate in stock lending as permitted under the
underlying global scheme which invests more than 10% of their net          Regulations.
assets in unlisted equity shares or equity related instruments.
                                                                           Change in Investment Pattern
The Scheme may review the above pattern of investments based on            Subject to the Regulations, the asset allocation pattern indicated
views on the equity and debt markets and asset liability management        above for the Scheme(s) may change from time to time, keeping in
needs and the portfolio shall be reviewed and rebalanced on a regular      view market conditions, market opportunities, applicable regulations
basis. However, at all times the portfolio will adhere to the overall      and political and economic factors. It must be clearly understood that
investment objective of the Scheme.                                        the percentages stated above are only indicative and not absolute and
                                                                           that they can vary substantially depending upon the perception of the
D. WHERE WILL THE SCHEME INVEST?                                           Investment Manager, the intention being at all times to seek to
The corpus of the Scheme will be primarily invested in equity and          protect the interests of the Unitholders, and meet the objective of the
equity related securities. The Scheme can also invest in various fixed     Scheme(s). Such changes in the investment pattern will be for short
income securities. The Scheme can actively move its assets between         term and defensive considerations.
equity and fixed income securities depending on its view on these          Provided further and subject to the above, any change in the asset
markets. The fund may invest upto 100% of its corpus in overseas           allocation affecting the investment profile of the Scheme(s) shall be
securities including in units/securities issued by overseas mutual         effected in accordance with the provisions of sub regulation (15A)
funds or unit trusts.                                                      of Regulation 18 of the Regulations, as detailed in this Combined
The assets that fund can invest in :                                       Scheme Information Document.
l    Equity and equity related securities including convertible bonds      Securities / Stock Lending by the Mutual Fund
     and debentures and warrants carrying the right to obtain equity       (Applicable to all schemes)
     shares.                                                               Subject to the Regulations and the applicable guidelines, the Scheme(s)
l    Equity of overseas companies listed on recognized stock               and the Plan(s) there under may, if the Trustees permit, engage in
     exchanges overseas                                                    securities / stock lending. Securities / stock lending means the lending
                                                                           of securities / stocks to another person or entity for a fixed period
l    Foreign Debt Securities in the countries with fully convertible       of time, at a negotiated compensation. The borrower will return the
     currencies, short term as well as long term debt instruments          securities / stock lent on expiry of the stipulated period. Please refer
     with highest rating (foreign currency credit rating) by accredited/   to risks attached with securities lending. Each Scheme, under normal
     registered credit rating agencies, say A-1/AAA by Standard &          circumstances, shall not have exposure of more than 50% of its net
     Poor, P-1/AAA by Moody's, F1/AAA by Fitch IBCA, etc.                  assets in securities / stock lending. The Scheme(s) may also not lend
l    Government Securities where the countries are AAA rated.              more than 50% of its net assets to any one intermediary to whom
                                                                           securities / stocks will be lent. Securities / Stock Lending could be
l    Units / Securities issued by overseas mutual funds or unit trusts,
                                                                           considered for the purpose of generating additional income to unit
     which invest in the aforesaid securities or are rated as mentioned
                                                                           holders on the longer term holdings of the Scheme. The AMC shall
     above and are registered with overseas regulators.
                                                                           report to the Trustees on a quarterly basis as to the level of lending
l    Overseas Exchange Traded Funds                                        in terms of value, volume and the names of the intermediaries and
l    Foreign Securities as may be permitted by SEBI / RBI                  the earnings / losses arising out of the transactions, the value of
                                                                           collateral security offered etc.
l    Securities issued / guaranteed by the Central, State and local
     governments (including but not limited to coupon bearing bonds,       Special Considerations
     zero coupon bonds and treasury bills).                                The Scheme(s) may also use various derivative products from time
                                                                           to time, as would be available and permitted by SEBI, in an attempt
l    Debt obligations of domestic government agencies and statutory
                                                                           to protect the value of the portfolio and enhance Unitholders' interest.
     bodies, which may or may not carry a Central / State Government
     guarantee.                                                            Trading in Derivatives
l    Corporate debt (of both public and private sector undertakings).      SEBI has permitted all mutual funds to participate in derivatives
                                                                           trading subject to observance of guidelines issued by it in this behalf.
l    Debt obligations of banks (both public and private sector) and
                                                                           Pursuant to this, mutual funds may use various derivative products
     financial institutions.
                                                                           from time to time, as would be available and permitted by SEBI, in
l    Money market instruments                                              an attempt to protect the value of the portfolio and enhance Unitholders'
l    Certificate of Deposits (CDs).                                        interest.

l    Commercial Papers (CPs).                                              Accordingly, the Fund may use derivative instruments like stock
                                                                           index futures, option on stocks, stock indices, interest rate swaps,
l    Bills of Exchange / Promissory Notes.                                 forward rate agreements or such other derivative instruments as may
l    Securitised Debt.                                                     be introduced from time to time as permitted under the Regulations
                                                                           and guidelines.
l    Floating rate debt instruments.
                                                                           Risks:
l    Collateralised Lending and Borrowing Obligations (CBLO)
                                                                           Risk associated with Interest Rate Swaps and Forward Rate
l    Repurchase and reverse repurchase obligations in securities.          Agreements is the movement in interest rates inverse to the position
l    The non-convertible part of convertible securities.                   taken. Whereas, risk associated with Index Futures, Stock Futures,
                                                                           Index Options and Stock Options is the movement in market prices
l    Any other domestic fixed income securities.                           inverse to the position taken (along with the time decay in the prices
l    Pass through, Pay through or other Participation Certificates         of the Options in case of Index Options and Stock Options).
     representing interest in a pool of assets including receivables.
                                                                           Exposure to Derivatives
l    Any other instruments as may be permitted by SEBI / RBI/              HEF, HIOF, HMEF, HAIF, HMIP, HUSBF, HTSF & HUOF shall
     other Regulatory Authority from time to time.                         have derivative exposure as per the SEBI Guidelines issued from
The securities mentioned above could be listed, unlisted, privately        time to time. In case of HIF, HFRF, HGF and HCF, the Scheme(s)
placed, secured, unsecured, rated or unrated and of any maturity.          shall under normal circumstances not have exposure of more than
                                                                           50% of its net assets in derivative instruments. The net notional
The securities may be acquired through Initial Public Offerings            exposure to derivative in HSCF, HDF and HFDF shall not be more
(IPOs), secondary market operations and private placement, rights          than 75% of the net assets. These limits will be reviewed by the
offers or negotiated deals.                                                AMC, from time to time.

HSBC Mutual Fund                                                                                                                                33
The position limits are as under:                                           Interest Rate Swaps (IRS) and Forward Rate Agreements (FRA)
Position limit for Mutual Fund in index options contracts                   Benefits
l    The Mutual Fund position limit in all index options contracts          Certain segments of the Bond markets in India are not very liquid.
     on a particular underlying index shall be Rs. 500 crore or 15%         Investors run the risk of illiquidity in such markets. Investing for
     of the total open interest of the market in index options, whichever   short-term periods for liquidity purposes has its own risks. Investors
     is higher, per Stock Exchange.                                         can benefit if the Fund remains in call market for the liquidity and
                                                                            at the same time take advantage of fixed rate by entering into a swap.
l    This limit would be applicable on open positions in all options        It adds certainty to the returns without sacrificing liquidity.
     contracts on a particular underlying index.
                                                                            IRS
Position limit for Mutual Fund in index futures contracts:                  An IRS is an agreement between two parties (counter parties) to
l    The Mutual Fund position limit in all index futures contracts on       exchange, on particular dates in the future, one series of cash flows
     a particular underlying index shall be Rs. 500 crore or 15% of         (fixed interest) for another series of cash flows (variable or floating
     the total open interest of the market in index futures, whichever      interest) in the same currency and on the same principal for an agreed
     is higher, per Stock Exchange.                                         period of time. The exchange of cash flows need not occur on the
                                                                            same date. As floating rate instruments tend to be relatively less
l    This limit would be applicable on open positions in all futures        liquid, swapping a fixed rate instrument into floating returns can help
     contracts on a particular underlying index.                            in improving the liquidity of the fund.
Additional position limit for hedging:                                      FRA
In addition to the position limits in index options and index futures       A FRA is an agreement between two counter parties to pay or to
contracts above, the Mutual Fund may take exposure in equity index          receive the difference between an agreed fixed rate (the FRA rate)
derivatives subject to the following limits:                                and the interest rate prevailing on a stipulated future date, based on
l    Short positions in index derivatives (short futures, short calls       a notional amount, for an agreed period. In short, in a FRA, interest
     and long puts) shall not exceed (in notional value) the Mutual         rate is fixed now for a future period. The special feature of FRAs is
     Fund's holding of stocks.                                              that the only payment is the difference between the FRA rate and the
                                                                            reference rate and hence are single settlement contracts. As in the
l    Long positions in index derivatives (long futures, long calls and      case of IRS, notional amounts are not exchanged.
     short puts) shall not exceed (in notional value) the Mutual
     Fund's holding of cash, government securities, T-Bills and similar     Basic Structure of a Swap
     instruments.                                                           Assume that the Scheme has a Rs. 20 crores floating rate investment
                                                                            linked to MIBOR (Mumbai Inter Bank Offered Rate). Hence, the
Position limit for Mutual Fund for stock based derivative contracts
                                                                            Scheme is currently running an interest rate risk and stands to lose
The Mutual Fund position limit in a derivative contract on a particular     if the interest rate moves down. To hedge this interest rate risk, the
underlying stock, i.e. stock option contracts and stock futures contracts   Scheme can enter into a 6 month MIBOR swap. Through this swap,
is defined in the following manner:                                         the Scheme will receive a fixed predetermined rate (assume 12%)
l    For stocks having applicable market-wise position limit (MWPL)         and pays the "benchmark rate" (MIBOR), which is fixed by the
     of Rs. 500 crores or more, the combined futures and options            National Stock Exchange (NSE) or any other agency such as Reuters.
     position limit shall be 20% of applicable MWPL or Rs. 300              This swap would effectively lock-in the rate of 12% for the next 6
     crores, whichever is lower and within which stock futures              months, eliminating the daily interest rate risk. This is usually routed
     position cannot exceed 10% of applicable MWPL or Rs. 150               through an intermediary who runs a book and matches deals between
     crores, whichever is lower.                                            various counterparties.

l    For stocks having applicable market-wise position limit (MWPL)         The steps will be as follows :
     less than Rs. 500 crores, the combined futures and options             l   Assuming the swap is for Rs. 20 crores June 1, 2001 to December
     position limit would be 20% of applicable MWPL and futures                 1, 2001. The Scheme is a fixed rate receiver at 12% and the
     position cannot exceed 20% of applicable MWPL or Rs. 50                    counterparty is a floating rate receiver at the overnight rate on
     crore whichever is lower.                                                  a compounded basis (say NSE MIBOR).
Position limit for each scheme of a Mutual Fund                             l    On 1 June, 2001 the Scheme and the counterparty will exchange
The scheme-wise position limit / disclosure requirements shall be:               only a contract of having entered this swap. This documentation
                                                                                 would be as per International Securities Dealers Association
l    For stock option and stock futures contracts, the gross open                (ISDA).
     position across all derivative contracts on a particular underlying
                                                                            l    On a daily basis, the benchmark rate fixed by NSE will be
     stock of a scheme of a mutual fund shall not exceed the higher
                                                                                 tracked.
     of:
                                                                            l    On December 1, 2001 the following will be calculated :
     1% of the free float market capitalisation (in terms of number
     of shares) or 5% of the open interest in the derivative contracts      l    The Scheme is entitled to receive interest on Rs. 20 crores at
     on a particular underlying stock (in terms of number of contracts).         12% for 184 days i.e. Rs. 1.21 crores, (this amount is known
                                                                                 at the time the swap was concluded) and will pay the compounded
l    This position limits shall be applicable on the combined position           benchmark rate.
     in all derivative contracts on an underlying stock at a Stock
     Exchange.                                                              l    The counterparty is entitled to receive daily compounded call
                                                                                 rate for 184 days & pay 12% fixed.
For index based contracts, the Mutual Fund shall disclose the total
open interest held by its scheme or all schemes put together in a           l    On December 1, 2001, if the total interest on the daily overnight
particular underlying index, if such open interest equals to or exceeds          compounded benchmark rate is higher than Rs. 1.21 crores, the
15% of the open interest of all derivative contracts on that underlying          Scheme will pay the difference to the counter party. If the daily
index.                                                                           compounded benchmark rate is lower, then the counterparty
                                                                                 will pay the Scheme the difference.
The following information provides a basic idea as to the nature of
the derivative instruments proposed to be used by the Fund and the          l    Effectively the Scheme earns interest at the rate of 12% p.a. for
benefits and risks attached therewith. Please note that the examples             6 months without lending money for 6 months fixed, while the
have been given for illustration purposes only.                                  counterparty pays interest @ 12% p.a. for 6 months on Rs. 20
                                                                                 crores, without borrowing for 6 months fixed.



34                                                                                       Combined Scheme Information Document (SID)
Risks                                                                        Illustration
Interest Rate Swaps and Forward Rate Agreements have its own                 If the Fund owns Hindustan Lever and also buys a three-month put
drawbacks like credit risk, settlement risk and interest rate risks.         option on Hindustan Lever at a strike of Rs. 190, the current market
However, these risks are substantially reduced as the amount involved        price being say Rs.191. The Fund will have to pay a premium of say
is interest streams and not principal.                                       Rs. 12 to buy this put.
Index Futures                                                                If the stock price goes below Rs. 190 during the tenure of the put,
Benefits                                                                     the Fund can still exercise the put and sell the stock at Rs. 190,
l    Investment in stock index futures can give exposure to the index        avoiding therefore any downside on the stock below Rs. 190. The
     without directly buying the individual stocks. Appreciation in          Fund gives up the fixed premium of Rs. 12 that has to be paid in order
     index stocks can be effectively captured through investment in          to protect the Fund from this probable downside. If the stock goes
     Stock Index Futures.                                                    above Rs. 190, say to Rs. 220, it will not exercise its option. The Fund
                                                                             will participate in the upside of the stock, since it can now sell the
l    The Fund can sell futures to hedge against market movements             stock at the prevailing market price of Rs. 220.
     effectively without actually selling the stocks it holds.
                                                                             Writing Options
The stock index futures are instruments designed to give exposure            Benefits of writing an option with underlying stock holding (Covered
to the equity market indices. The Bombay Stock Exchange and the              call writing)
National Stock Exchange have started trading in index futures of 1,
                                                                             Covered call writing is a strategy where a writer (say the Fund) will
2 and 3 month maturities. The pricing of an index future is the
                                                                             hold a particular stock, and sell in the market a call option on the
function of the underlying index and interest rates.
                                                                             stock. Here the buyer of the call option now has the right to buy this
Illustration                                                                 stock from the writer (the Fund) at a particular price which is fixed
Spot Index: 1070                                                             by the contract (the strike price). The writer receives a premium for
1 month Nifty Future Price on day 1: 1075                                    selling a call, but if the call option is exercised, he has to sell the
Fund buys 100 lots                                                           underlying stock at the strike price. This is advantageous if the strike
Each lot has a nominal value equivalent to 200 Units of the underlying       price is the level at which the writer wants to exit his holding / book
index                                                                        profits. The writer effectively gains a fixed premium in exchange for
                                                                             the probable opportunity loss that comes from giving up any upside
Situation 1                                                                  if the stock goes up beyond the strike price.
Let us say that on the date of settlement, the future price = closing
                                                                             Illustration
spot price = 1085
                                                                             Let us take for example Infosys Technologies, where the Fund holds
Profits for the Fund = (1085-1075) x 100 lots x 200 = Rs. 200,000            stock, the current market price being Rs. 3600. The Fund Manager
Situation 2                                                                  holds the view that the stock should be sold when it reaches Rs. 3700.
Let us say that on the date of settlement, the future price = Closing        Currently the 1 month 3700 calls can be sold at say Rs.150. Selling
spot price = 1070                                                            this call gives the call owner the right to buy from the Fund, Infosys
                                                                             at Rs. 3700.
Loss for the Fund = (1070-1075) x 100 lots x 200 = (Rs. 100,000)
                                                                             Now the Fund by buying / holding the stock and selling the call is
The net impact for the Fund will be in terms of the difference               effectively agreeing to sell Infosys at Rs. 3700 when it crosses this
between the closing price of the index and cost price (ignoring              price. So the Fund is giving up any possible upside beyond Rs. 3700.
margins for the sake of simplicity). Thus, it is clear from the example      However, the returns for the Fund are higher than what it would have
that the profit or loss for the Fund will be the difference of the closing   got if it just held the stock and decided to sell it at Rs. 3700. This
price (which can be higher or lower than the purchase price) and the         is because the Fund by writing the covered call gets an additional
purchase price. The risks associated with index futures (based on            Rs. 150 per share of Infosys. In case the price is below Rs. 3700
notional value) are similar to the one with equity investments.              during the tenure of the call, then it will not be exercised and the Fund
Additional risks could be on account of illiquidity and hence                will continue to hold the shares. Even in this case the returns are
mispricing of the future at the time of purchase.                            higher than if the Fund had just held the stock waiting to sell it at
Buying Options                                                               Rs. 3700.
Benefits of buying a call option                                             Benefits of writing put options with adequate cash holding
Buying a call option on a stock or index gives the owner the right,          Writing put options with adequate cash holdings is a strategy where
but not the obligation, to buy the underlying stock / index at the           the writer (say, the Fund) will have an amount of cash and will sell
designated strike price. Here the downside risks are limited to the          put options on a stock. This will give the buyer of this put option the
premium paid to purchase the option.                                         right to sell stock to the writer (the Fund) at a pre-designated price
                                                                             (the strike price). This strategy gives the put writer a premium, but
Illustration
                                                                             if the put is exercised, he has to buy the underlying stock at the
If the Fund buys a 1 month call option on Hindustan Lever at a strike        designated strike price. In this case the writer will have to accept any
of Rs. 190, the current market price being say Rs.191. The Fund will         downside if the stock goes below the exercise price. The writer
have to pay a premium of say Rs. 15 to buy this call. If the stock price     effectively gains a fixed premium in exchange for giving up the
goes below Rs. 190 during the tenure of the call, the Fund avoids the        opportunity to buy the stock at levels below the strike price. This is
loss it would have incurred had it straightaway bought the stock             advantageous if the strike price is the level at which the writer wants
instead of the call option. The Fund gives up the premium of Rs. 15          to buy the stock.
that has to be paid in order to protect the Fund from this probable
downside. If the stock goes above Rs. 190, it can exercise its right         Illustration
and own Hindustan Lever at a cost price of Rs. 190, thereby                  Let us take for example, that the Fund wants to buy Infosys
participating in the upside of the stock.                                    Technologies at Rs. 3500, the current price being Rs. 3600. Currently
                                                                             the three-month puts can be sold at say Rs. 100. Writing this put gives
Benefits of buying a put option
                                                                             the put owner the right to sell to the Fund, Infosys at Rs. 3500.
Buying a put option on a stock originally held by the buyer gives
him / her the right, but not the obligation, to sell the underlying stock    Now the Fund by holding cash and selling the put is agreeing to buy
at the designated strike price. Here the downside risks are limited to       Infosys at Rs. 3500 when it goes below this price. The Fund will take
the premium paid to purchase the option.                                     on itself any downside if the price goes below Rs. 3500. But the




HSBC Mutual Fund                                                                                                                                  35
returns for the Fund are higher than what it would have got if it just    The Scheme may invest in other Scheme(s) managed by the AMC
waited till the price reached this level and bought the stock at          or in the schemes of any other mutual fund, provided it is in conformity
Rs. 3500, as per its original view. This is because the Fund by writing   with the investment objectives of the Scheme and in terms of the
the put gets an additional Rs. 100 per share of Infosys. In case the      prevailing Regulations. As per the Regulations, no investment
price stays above Rs. 3500 during the tenure of the put, then it will     management fees will be charged for such investments.
not be exercised and the Fund will continue to hold cash. Even in
this case the returns are higher than if the Fund had just held cash      HSBC India Opportunities Fund (HIOF)
waiting to buy Infosys at Rs. 3500.                                       The aim of the HSBC India Opportunities Fund is to seek aggressive
                                                                          growth and deliver above-benchmark returns by providing long-term
The derivative strategy used could be directional views or arbitrage      capital growth from an actively managed portfolio, mainly comprising
opportunities available. Identification and execution of the strategies   a judicious mix of small, mid and large cap stocks. Income is not a
to be pursued by the Fund Manager(s) involve uncertainty and              primary consideration in the investment policies of the HSBC India
decision of Fund Manager(s) may not always be profitable.                 Opportunities Fund. The Scheme aims to be predominantly invested
                                                                          in equity and equity related securities. However, it could move a
Valuation of Derivative Products
                                                                          significant portion of its assets towards fixed income securities if the
l    The traded derivatives shall be valued at market price in            fund becomes negative on equity markets.
     conformity with the stipulations of sub-clauses (i) to (v) of
     clause 1 of the Eighth Schedule to the Securities and Exchange       A top down and bottom up approach will be used to invest in equity
     Board of India (Mutual Funds) Regulations, 1996, as amended          and equity related instruments. Investments will be pursued in select
     from time to time.                                                   sectors based on the Investment Team's analysis of business cycles,
                                                                          regulatory reforms, competitive advantage etc. Selective stock picking
l    The valuation of untraded derivatives shall be done in accordance    will be done from these sectors. The fund manager in selecting scrips
     with the valuation method for untraded investments prescribed        will focus on the fundamentals of the business, the industry structure,
     in sub-clauses (i) and (ii) of clause 2 of the Eighth Schedule to    the quality of management, sensitivity to economic factors, the
     the Securities and Exchange Board of India (Mutual Funds)            financial strength of the company and the key earnings drivers.
     Regulations, 1996 as amended from time to time.
                                                                          Since investing requires disciplined risk management, the AMC
E. INVESTMENT STRATEGIES                                                  would incorporate adequate safeguards for controlling risks in the
                                                                          portfolio construction process. Risk will also be reduced through
Investment Approach and Risk Control
                                                                          adequate diversification of the portfolio. Diversification will be
HSBC Equity Fund (HEF)                                                    achieved by spreading the investments over a range of industries /
The aim of the HSBC Equity Fund is to deliver above-benchmark             sectors.
returns by providing long-term capital growth from an actively
managed portfolio, mainly comprising companies registered in and /        The Scheme may however, invest in unlisted and / or privately placed
or listed on a regulated market of India. Income is not a primary         and / or unrated debt securities subject to the limits indicated under
consideration in the investment policies of the HSBC Equity Fund.         "Investment Restrictions for the Scheme prescribed in this Combined
The Scheme will invest across a range of market capitalisations with      Scheme Information Document, from issuers of repute and sound
a preference for medium and large companies.                              financial standing. If investment is made in unrated debt securities,
                                                                          the approval of the Board of the AMC and the Trustees or the
A top down and bottom up approach will be used to invest in equity        Investment Management Committee (within the broad parameters
and equity related instruments. Investments will be pursued in select     approved by the Board of the AMC and the Trustees) shall be
sectors based on the Investment Team's analysis of business cycles,       obtained, as per the Regulations.
regulatory reforms, competitive advantage etc. Selective stock picking
                                                                          As per the asset allocation pattern indicated above, for investment
will be done from these sectors. The fund manager in selecting scrips
                                                                          in debt securities and money market instruments, the Fund may
will focus on the fundamentals of the business, the industry structure,
                                                                          invest a part of the portfolio in various debt securities issued by
the quality of management, sensitivity to economic factors, the
                                                                          corporates and / or State and Central Government. Such government
financial strength of the company and the key earnings drivers.
                                                                          securities may include securities which are supported by the ability
Since investing requires disciplined risk management, the AMC             to borrow from the treasury or supported only by the sovereign
would incorporate adequate safeguards for controlling risks in the        guarantee or of the state government or supported by GOI / state
portfolio construction process. Stock specific risk will be minimised     government in some other way.
by investing only in those companies that have been analysed by the       With the aim of controlling risks, rigorous in depth credit evaluation
Investment Team at the AMC.                                               of the instruments proposed to be invested in will be carried out by
Risk will also be reduced through adequate diversification of the         the Investment Team of the AMC. The credit evaluation includes a
portfolio. Diversification will be achieved by spreading the              study of the operating environment of the company, the past track
investments over a range of industries / sectors.                         record as well as the future prospects of the issuer, the short as well
                                                                          as long-term financial health of the issuer. The AMC will also be
The Scheme may however, invest in unlisted and / or privately placed      guided by the ratings of rating agencies such as CRISIL, CARE and
and / or unrated debt securities, subject to the limits indicated under   ICRA or any other rating agency as approved by the regulators.
"Investment Restrictions for the Scheme(s)" as per this Combined
Scheme Information Document, from issuers of repute and sound             In addition, the Investment Team of the AMC will study the macro
financial standing. If investment is made in unrated debt securities,     economic conditions, including the political, economic environment
the approval of the Board of the AMC and the Trustees or the              and factors affecting liquidity and interest rates. The AMC would use
Investment Management Committee (within the broad parameters              this analysis to attempt to predict the likely direction of interest rates
approved by the Board of the AMC and the Trustees) shall be               and position the portfolio appropriately to take advantage of the
obtained, as per the Regulations.                                         same.

As per the asset allocation pattern indicated above, for investment       The Scheme may invest in other Scheme(s) managed by the AMC
in debt securities and money market instruments, the Fund may             or in the schemes of any other mutual fund, provided it is in conformity
invest a part of the portfolio in various debt securities issued by       with the investment objectives of the Scheme and in terms of the
corporates and / or State and Central Government. Such government         prevailing Regulations. As per the Regulations, no investment
securities may include securities which are supported by the ability      management fees will be charged for such investments.
to borrow from the treasury or supported only by the sovereign            HSBC Midcap Equity Fund (HMEF)
guarantee or of the state government or supported by GOI / state          The aim of the HSBC Midcap Fund is to deliver above-benchmark
government in some other way.                                             returns by providing long-term capital growth from an actively



36                                                                                     Combined Scheme Information Document (SID)
managed portfolio, primarily comprising of midcap stocks. Income             The fund managers will attempt to identify those sectors that will
is not a primary consideration in the investment policies of the HSBC        play an important role in, and / or benefit from, India's progress,
Midcap Equity Fund. The Scheme aims to be predominantly invested             reform process and economic development. For this, the Fund
in midcap equity and equity related securities and also invest in small      Managers will do an analysis of business cycles, regulatory reforms,
cap equity and equity related securities. However, it could move a           demographics, investment / infrastructure requirements, competitive
portion of its assets towards fixed income securities if the fund            advantage etc. Selective stock picking will be done from these select
becomes cautious or negative on equity markets.                              sectors, areas and themes. It is pertinent to note that some theme
                                                                             plays could cut across multiple sectors. The fund managers in selecting
A top down and bottom up approach will be used to invest in equity
                                                                             scrips will focus on the fundamentals of the business, the industry
and equity related instruments. Investments will be pursued in select
                                                                             structure, the quality of management and its strategy, corporate
sectors based on the Investment Team's analysis of business cycles,
                                                                             governance trends, sensitivity to economic factors, operating
regulatory reforms, competitive advantage etc. Selective stock picking
                                                                             efficiency, the financial strength of the company, key earnings and
will be done from these sectors. The fund manager in selecting scrips
                                                                             cash flow drivers.
will focus on the fundamentals of the business, the industry structure,
the quality of management, corporate governance trends, sensitivity          Since disciplined investing requires risk management, the AMC
to economic factors, the financial strength of the company and the           would incorporate adequate safeguards for controlling risks in the
key earnings drivers.                                                        portfolio construction process.
Since investing requires disciplined risk management, the AMC                The Scheme may invest in unlisted and / or privately placed and /
would incorporate adequate safeguards for controlling risks in the           or unrated debt securities subject to the limits indicated under
portfolio construction process. Risk will also be reduced through            "Investment Restrictions for the Scheme prescribed in this Combined
adequate diversification of the portfolio. Diversification will be           Scheme Information Document, from issuers of repute and sound
achieved by spreading the investments over a range of industries /           financial standing. If investment is made in unrated debt securities,
sectors.                                                                     the approval of the Board of the AMC and the Trustees or the
The Scheme may however, invest in unlisted and / or privately placed         Investment Management Committee (within the broad parameters
and / or unrated debt securities subject to the limits indicated under       approved by the Board of the AMC and the Trustees) shall be
"Investment Restrictions for the Scheme prescribed in this Combined          obtained, as per the Regulations.
Scheme Information Document, from issuers of repute and sound                As per the asset allocation pattern indicated above, for investment
financial standing. If investment is made in unrated debt securities,        in debt securities and money market instruments, the Fund may
the approval of the Board of the AMC and the Trustees or the                 invest a part of the portfolio in various debt securities issued by
Investment Management Committee (within the broad parameters                 corporates and / or State and Central Government. Such government
approved by the Board of the AMC and the Trustees) shall be                  securities may include securities which are supported by the ability
obtained, as per the Regulations.                                            to borrow from the treasury or supported only by the sovereign
As per the asset allocation pattern indicated above, for investment          guarantee or of the state government or supported by GOI / state
in debt securities and money market instruments, the Fund may                government in some other way.
invest a part of the portfolio in various debt securities issued by          With the aim of controlling risks, rigorous in depth credit evaluation
corporates and / or State and Central Government. Such government            of the instruments proposed to be invested in will be carried out by
securities may include securities which are supported by the ability         the Investment Team of the AMC. The credit evaluation includes a
to borrow from the treasury or supported only by the sovereign               study of the operating environment of the company, the past track
guarantee or of the state government or supported by GOI / state             record as well as the future prospects of the issuer, the short as well
government in some other way.                                                as long-term financial health of the issuer. The AMC will also be
With the aim of controlling risks, rigorous in depth credit evaluation       guided by the ratings of rating agencies such as CRISIL, CARE and
of the instruments proposed to be invested in will be carried out by         ICRA or any other rating agency as approved by the regulators.
the Investment Team of the AMC. The credit evaluation includes a             In addition, the Investment Team of the AMC will study the macro
study of the operating environment of the company, the past track            economic conditions, including the political, economic environment
record as well as the future prospects of the issuer, the short as well      and factors affecting liquidity and interest rates. The AMC would use
as long-term financial health of the issuer. The AMC will also be            this analysis to attempt to predict the likely direction of interest rates
guided by the ratings of rating agencies such as CRISIL, CARE and            and position the portfolio appropriately to take advantage of the
ICRA or any other rating agency as approved by the regulators.               same.
In addition, the Investment Team of the AMC will study the macro             The Scheme may invest in other Scheme managed by the AMC or
economic conditions, including the political, economic environment           in the schemes of any other mutual fund, provided it is in conformity
and factors affecting liquidity and interest rates. The AMC would use        with the investment objectives of the Scheme and in terms of the
this analysis to attempt to predict the likely direction of interest rates   prevailing Regulations. As per the Regulations, no investment
and position the portfolio appropriately to take advantage of the            management fees will be charged for such investments.
same.
                                                                             HSBC Tax Saver Equity Fund (HTSF)
The Scheme may invest in other Scheme managed by the AMC or                  The aim of the HSBC Tax Saver Equity Fund is to provide long-term
in the schemes of any other mutual fund, provided it is in conformity        capital appreciation from an actively managed portfolio, primarily
with the investment objectives of the Scheme and in terms of the             comprising of a mix of small, mid and large cap stocks. Income is
prevailing Regulations. As per the Regulations, no investment                not a primary consideration in the investment policies of the HSBC
management fees will be charged for such investments.                        Tax Saver Equity Fund. The Scheme aims to be predominantly
HSBC Advantage India Fund (HAIF)                                             invested in equity and equity related securities. The Fund may also
The aim of the HSBC Advantage India Fund is to deliver above-                invest in fixed income securities.
benchmark returns by providing long-term capital growth from an              A top down and bottom up approach will be used to invest in equity
actively managed portfolio, primarily comprising of stocks of                and equity related instruments. Investments will be pursued in select
companies in areas/sectors that play an important role in India's            sectors based on the Investment Team's analysis of business cycles,
economic development. The sectors and areas will change with                 regulatory reforms, competitive advantage etc. Selective stock picking
changes in the economy.                                                      will be done from these sectors. The fund manager in selecting scrips
A top down and bottom up approach will be used to invest in equity           will focus on the fundamentals of the business, the industry structure,
and equity related instruments. Investments will be pursued in select        the quality of management, corporate governance trends, sensitivity
few sectors, areas and themes based on the Investment Team's                 to economic factors, the financial strength of the company and the
identification of areas that are drivers of growth of the Indian economy.    key earnings drivers.


HSBC Mutual Fund                                                                                                                                   37
Since investing requires disciplined risk management, the AMC                     three years. This was because of increasing commodity prices
would incorporate adequate safeguards for controlling risks in the                and internal restructuring.
portfolio construction process. Risk will also be reduced through
adequate diversification of the portfolio. Diversification will be           Financial restructurings, distressed debt etc.
achieved by spreading the investments over a range of industries /           Eg. Turnaround of textile companies - e.g. Arvind Mills turned from
sectors.                                                                         a reported net loss to a profit in the financial year 2003 because
                                                                                 of a significant financial restructuring (conversion of debt to
The Scheme may however, invest in unlisted and / or privately placed             equity etc.). Similarly India Cements turned from a net loss to
and / or unrated debt securities subject to the limits indicated under           profits in 2006 on account of a comprehensive debt restructuring
"Investment Restrictions for the Scheme prescribed in this Combined              and infusion of fresh equity.
Scheme Information Document, from issuers of repute and sound
financial standing. If investment is made in unrated debt securities,        Mergers & Acquisitions, Divestments, Spin-Offs, Demergers
the approval of the Board of the AMC and the Trustees or the                 Eg. The demerger of Larsen & Toubro's cement business (Ultratech
Investment Management Committee (within the broad parameters                     Cement) and subsequent purchase of Ultratech by Grasim let to
approved by the Board of the AMC and the Trustees) shall be                      value unlocking in all the three companies i.e. Larsen & Toubro,
obtained, as per the Regulations.                                                Ultratech Cement and Grasim.
As per the asset allocation pattern indicated above, for investment          Out-of-favour industries/sectors
in debt securities and money market instruments, the Fund may                Eg. Public Sector Banks was a sector which was 'undiscovered' and
invest a part of the portfolio in various debt securities issued by              out-of-favour till 2002. The sector was subsequently amongst
corporates and / or State and Central Government. Such government                the best performing sector in 2003.
securities may include securities which are supported by the ability
to borrow from the treasury or supported only by the sovereign               New product/business launches
guarantee or of the state government or supported by GOI / state             Eg. Reliance Industries' launch of the Telecom business in 2002-03.
government in some other way.
                                                                             Asset plays (companies selling at significant discount to intrinsic
With the aim of controlling risks, rigorous in depth credit evaluation       value)
of the instruments proposed to be invested in will be carried out by         Eg. Bombay Dyeing's real estate value getting unlocked as the
the Investment Team of the AMC. The credit evaluation includes a                  company announced plans to convert its textile mill land in
study of the operating environment of the company, the past track                 Mumbai into commercial / residential real estate.
record as well as the future prospects of the issuer, the short as well
as long-term financial health of the issuer. The AMC will also be            Unrecognised growth potential
guided by the ratings of rating agencies such as CRISIL, CARE and            Eg. Pantaloon, Bharti Televentures were two companies where the
ICRA or any other rating agency as approved by the regulators.                   market underestimated the growth opportunities in the Indian
                                                                                 markets for organised retailing and mobile telephony
In addition, the Investment Team of the AMC will study the macro                 respectively. These two stocks are amongst the best performing
economic conditions, including the political, economic environment               stocks over the last 4 years.
and factors affecting liquidity and interest rates. The AMC would use
this analysis to attempt to predict the likely direction of interest rates   Companies likely to benefit from some change in the economy,
and position the portfolio appropriately to take advantage of the            industry transformation, new laws / regulations / technology
same.                                                                        Eg. The introduction of the Electricity Act, 2003 led to a re-rating
                                                                                  of power equipment manufacturers like BHEL, ABB India,
The Scheme may invest in other Scheme(s) managed by the AMC
                                                                                  Siemens India etc. Similarly the introduction of the SARFESI
or in the schemes of any other mutual fund, provided it is in conformity
                                                                                  Act in 2002 led to a re-rating of the banking sector stocks like
with the investment objectives of the Scheme and in terms of the
                                                                                  State Bank of India, ICICI Bank etc.
prevailing Regulations. As per the Regulations, no investment
management fees will be charged for such investments.                        Note: Please note that the examples have been given for illustrative
                                                                             purposes to explain a particular situation and are not stock
HSBC Unique Opportunities Fund (HUOF)
                                                                             recommendations from HSBC Mutual Fund. The Fund may or may
The Fund Manager will seek to invest in companies that currently             not have any past or present position in these stocks. Past performance
operate in "out of ordinary" situations. Out of ordinary situations are      is not indicative of future return.
event-driven conditions that render the company undervalued relative
to its long term potential and may, amongst others, include (but not         The fund will invest predominantly in equity and equity related
be limited to) the following:                                                instruments but may also invest a limited portion in debt and money
                                                                             market instruments.
l    Turnaround/Recovery situations
                                                                             A top down and bottom up approach will be used to invest in equity
l    Financial restructurings, distressed debt etc.
                                                                             and equity related instruments. Investments will be pursued in select
l    Mergers & Acquisitions, Divestments, Spin-Offs, Demergers,              sectors based on the Investment Team's analysis of business cycles,
l    Out-of-favour industries/sectors                                        regulatory reforms, competitive advantage etc. Selective stock picking
                                                                             will be done from these sectors. The fund manager(s) in selecting
l    Employee/Management buyouts                                             scrips will focus on the fundamentals of the business, the industry
l    New product/business launches                                           structure, the quality of management, corporate governance trends,
l    Asset plays (companies selling at significant discount to intrinsic     sensitivity to economic factors, the financial strength of the company
     value)                                                                  and the key earnings drivers etc., with an aim to identify companies
                                                                             that are currently undervalued but possess long term growth potential
l    Unrecognised growth potential                                           once they tide over the "out of ordinary" situations.
l    Companies likely to benefit from some change in the economy,            Since investing requires disciplined risk management, the AMC
     industry transformation, new laws / regulations / technology.           would incorporate adequate safeguards for controlling risks in the
The investment strategies may include from time to time, but                 portfolio construction process. Risk will also be reduced through
would not be limited to the following:                                       adequate diversification of the portfolio. Diversification will be
Turnaround/Recovery situations:                                              achieved by spreading the investments over a range of industries /
                                                                             sectors.
Eg. Turnaround of the steel companies like Tata Steel, Essar Steel,
    Steel Authority of India, Jindal South West etc. in the financial        The Scheme may however, invest in unlisted and / or privately placed
    years 2003 and 2004. These companies turned from a reported              and / or unrated debt securities subject to the limits indicated under
    net loss or minimal profits to excellent profitability in the next       "Investment Restrictions for the Scheme" prescribed in this Combined


38                                                                                       Combined Scheme Information Document (SID)
Scheme Information Document, from issuers of repute and sound                As per the asset allocation pattern indicated above, for investment
financial standing. If investment is made in unrated debt securities,        in debt securities and money market instruments, the Fund may
the approval of the Board of the AMC and the Trustees or the                 invest a part of the portfolio in various debt securities issued by
Investment Management Committee (within the broad parameters                 corporates and / or State and Central Government. Such government
approved by the Board of the AMC and the Trustees) shall be                  securities may include securities which are supported by the ability
obtained, as per the Regulations.                                            to borrow from the treasury or supported only by the sovereign
                                                                             guarantee or of the state government or supported by GOI / state
As per the asset allocation pattern indicated above, for investment          government in some other way.
in debt securities and money market instruments, the Fund may
invest a part of the portfolio in various debt securities issued by          With the aim of controlling risks, rigorous in depth credit evaluation
corporates and / or State and Central Government. Such government            of the instruments proposed to be invested in will be carried out by
securities may include securities which are supported by the ability         the Investment Team of the AMC. The credit evaluation includes a
to borrow from the treasury or supported only by the sovereign               study of the operating environment of the company, the past track
guarantee or of the state government or supported by GOI / state             record as well as the future prospects of the issuer, the short as well
government in some other way.                                                as long-term financial health of the issuer. The AMC will also be
                                                                             guided by the ratings of rating agencies such as CRISIL, CARE and
With the aim of controlling risks, rigorous in depth credit evaluation       ICRA or any other rating agency as approved by the regulators.
of the instruments proposed to be invested in will be carried out by
the Investment Team of the AMC. The credit evaluation includes a             In addition, the Investment Team of the AMC will study the macro
study of the operating environment of the company, the past track            economic conditions, including the political, economic environment
record as well as the future prospects of the issuer, the short as well      and factors affecting liquidity and interest rates. The AMC would use
as long-term financial health of the issuer. The AMC will also be            this analysis to attempt to predict the likely direction of interest rates
guided by the ratings of rating agencies such as CRISIL, CARE and            and position the portfolio appropriately to take advantage of the
ICRA or any other rating agency as approved by the regulators.               same.
In addition, the Investment Team of the AMC will study the macro             The Scheme may invest in other Scheme managed by the AMC or
economic conditions, including the political, economic environment           in the schemes of any other mutual fund, provided it is in conformity
and factors affecting liquidity and interest rates. The AMC would use        with the investment objectives of the Scheme and in terms of the
this analysis to attempt to predict the likely direction of interest rates   prevailing Regulations. As per the Regulations, no investment
and position the portfolio appropriately to take advantage of the            management fees will be charged for such investments.
same.
                                                                             HSBC Small Cap Fund (HSCF)
The Scheme may invest in other Scheme(s) managed by the AMC                  The Fund Manager will endeavour to invest in small cap companies
or in the schemes of any other mutual fund, provided it is in conformity     that are typically characterized by strong fundamentals, high growth
with the investment objectives of the Scheme and in terms of the             potential and under-pricing relative to intrinsic value. Small Cap
prevailing Regulations. As per the Regulations, no investment                Companies are defined as the companies with the market capitalization
management fees will be charged for such investments.                        which is 1) lower than or equal to the market capitalization of the
HSBC Dynamic Fund (HDF)                                                      stock in the BSE Small Cap Index with the largest market capitalization
                                                                             and 2) higher than or equal to the market capitalization of the stock
The Scheme has the flexibility to allocate assets to both equity and         in the BSE Small Cap Index with the smallest market capitalization.
debt instruments. It will hold a mix of securities - primarily equity
and equity related instruments. This allocation will be steadily             The fund will invest predominantly in equity and equity related
monitored and updated as and when the market movements demand                instuments but may also invest a limited portion in debt and money
it, a switch would be made. This product offers a lower risk alternative     market instruments if the fund manager has a negative view of the
to pure equity offerings as it has the flexibility to move, entirely if      equity market or to maintain liquidity.
required, into debt instruments in times that the view on equity
markets seems negative. The relative balance of these securities can         A top down and bottom up approach will be used to invest in equity
be periodically changed to take advantage of phases in the economic          and equity related instruments. Investments will be pursued in select
cycle. The fund would switch over from one asset-class combination           sectors based on the Investment Team's analysis of business cycles,
to another, looking towards more aggressive growth oriented stocks           regulatory reforms, competitive advantage etc. Selective stock picking
when the market is bullish and vice versa. Thus, the scheme endeavours       will be done from these sectors. The fund manager(s) in selecting
to achieve the ideal asset allocation to make the most of the markets        scrips will focus on the fundamentals of the business, the industry
and save opportunity costs for the investor. The fund will endeavour         structure, the quality of management, sensitivity to economic factors,
to provide long-term growth of principal and income. Thus, it aims           the financial strength of the company and the key earnings drivers.
to perform even in a distressed market scenario.                             Since disciplined investing requires risk management, the AMC
A top down and bottom up approach will be used to invest in equity           would incorporate adequate safeguards for controlling risks in the
and equity related instruments. Investments will be pursued in select        portfolio construction process.
sectors based on the Investment Team's analysis of business cycles,
regulatory reforms, competitive advantage etc. Selective stock picking       The Scheme may invest in unlisted and / or privately placed and /
will be done from these sectors. The fund manager(s) in selecting            or unrated debt securities subject to the limits indicated under
scrips will focus on the fundamentals of the business, the industry          "Investment Restrictions for the Scheme prescribed in this Combined
structure, the quality of management, sensitivity to economic factors,       Scheme Information Document, from issuers of repute and sound
the financial strength of the company and the key earnings drivers.          financial standing. If investment is made in unrated debt securities,
                                                                             the approval of the Board of the AMC and the Trustees or the
Since disciplined investing requires risk management, the AMC                Investment Management Committee (within the broad parameters
would incorporate adequate safeguards for controlling risks in the           approved by the Board of the AMC and the Trustees) shall be
portfolio construction process.                                              obtained, as per the Regulations.
The Scheme may invest in unlisted and / or privately placed and /            As per the asset allocation pattern indicated above, for investment
or unrated debt securities subject to the limits indicated under             in debt securities and money market instruments, the Fund may
"Investment Restrictions for the Scheme prescribed in this Combined          invest a part of the portfolio in various debt securities issued by
Scheme Information Document, from issuers of repute and sound                corporates and / or State and Central Government. Such government
financial standing. If investment is made in unrated debt securities,        securities may include securities which are supported by the ability
the approval of the Board of the AMC and the Trustees or the                 to borrow from the treasury or supported only by the sovereign
Investment Management Committee (within the broad parameters                 guarantee or of the state government or supported by GOI / state
approved by the Board of the AMC and the Trustees) shall be                  government in some other way.
obtained, as per the Regulations.


HSBC Mutual Fund                                                                                                                                   39
With the aim of controlling risks, rigorous in depth credit evaluation       The Scheme may invest in other Scheme(s) managed by the AMC
of the instruments proposed to be invested in will be carried out by         or in the schemes of any other mutual fund, provided it is in conformity
the Investment Team of the AMC. The credit evaluation includes a             with the investment objectives of the Scheme and in terms of the
study of the operating environment of the company, the past track            prevailing Regulations. As per the Regulations, no investment
record as well as the future prospects of the issuer, the short as well      management fees will be charged for such investments.
as long-term financial health of the issuer. The AMC will also be
guided by the ratings of rating agencies such as CRISIL, CARE and            HSBC Income Fund (HIF)
ICRA or any other rating agency as approved by the regulators.               The Short Term Plan will invest predominantly in debt and money
                                                                             market instruments where interest rate risk is low. The Investment
In addition, the Investment Team of the AMC will study the macro             Plan aims to provide investors with income, with appropriate liquidity,
economic conditions, including the political, economic environment           and therefore will invest in a mix of debt and money market
and factors affecting liquidity and interest rates. The AMC would use        instruments, over varying maturities.
this analysis to attempt to predict the likely direction of interest rates
and position the portfolio appropriately to take advantage of the same.      The AMC's view of interest rate trends will be reflected in the type
                                                                             and the maturity dates of instruments in which funds are invested.
The Scheme may invest in other Scheme managed by the AMC or                  In pursuing such a policy it should be recognised that the best overall
in the schemes of any other mutual fund, provided it is in conformity        returns are achieved by anticipating or reacting to interest rate changes
with the investment objectives of the Scheme and in terms of the             rather than aiming for the highest possible interest rates at all times.
prevailing Regulations. As per the Regulations, no investment                The best resultant overall return is therefore achieved through both
management fees will be charged for such investments.                        capital appreciation and income, which may result in somewhat
HSBC MIP (HMIP)                                                              lower yields than might otherwise normally appear obtainable from
                                                                             the relevant securities. The Fund aims to provide investors with
The Scheme shall invest in Debt and Money Market Instruments and             actively managed portfolios of interest bearing transferable debt and
would seek to generate regular returns. The scheme may also invest           money market instruments. The portfolios may also include liquid
in equity and equity related instruments to seek capital appreciation.       assets and other assets permitted from time to time, with a short
The Scheme does not assure any returns.                                      remaining maturity, especially in times of rising interest rates.
Since investing requires disciplined risk management, the AMC                In the Short Term Plan, exposure to instruments bearing price risk
would incorporate adequate safeguards for controlling risks in the           will be controlled, such that the Plan offers an appropriate mix of
portfolio construction process. Risk will also be reduced through            liquidity and returns. In the Investment Plan, investments will be
adequate diversification of the portfolio. Diversification will be           made mainly into debt instruments, with an appropriate allocation to
achieved by spreading the investments over a range of industries /           money market instruments to maintain the overall liquidity of the
sectors.                                                                     portfolio.
The Scheme may invest in unlisted and / or privately placed and /            The Scheme may invest in unlisted and / or privately placed and /
or unrated debt securities subject to the limits indicated under             or unrated debt securities subject to the limits indicated under
Investment Restrictions for the Scheme prescribed in this Combined           "Investment Restrictions for the Scheme(s)" in this Combined Scheme
Scheme Information Document, from issuers of repute and sound                Information Document, from issuers of repute and sound financial
financial standing. If investment is made in unrated debt securities,        standing. If investment is made in unrated debt securities, the approval
the approval of the Board of the AMC and the Trustees or the                 of the Board of the AMC and the Trustees or the Investment
Investment Management Committee (within the broad parameters                 Management Committee (within the broad parameters approved by
approved by the Board of the AMC and the Trustees) shall be                  the Board of the AMC and the Trustees) shall be obtained, as per the
obtained, as per the Regulations. The AMC shall follow such policies         Regulations.
as may be prescribed under the SEBI regulations from time to time.
                                                                             With the aim of controlling risks, rigorous in depth credit evaluation
As per the asset allocation pattern indicated above, the Fund may            of the instruments proposed to be invested in will be carried out by
invest in various debt securities and money market instruments               the Investment Team of the AMC. The credit evaluation includes a
issued by corporates and / or State and Central Government. Such             study of the operating environment of the company, the past track
government securities may include securities which are supported by          record as well as the future prospects of the issuer, the short as well
the ability to borrow from the treasury or supported only by the             as long-term financial health of the issuer. The AMC will also be
sovereign guarantee or of the state government or supported by               guided by the ratings of rating agencies such as CRISIL, CARE and
GOI / state government in some other way.                                    ICRA or any other rating agency as approved by the regulators.
With the aim of controlling risks, rigorous in depth credit evaluation       In addition, the Investment Team of the AMC will study the macro
of the instruments proposed to be invested in will be carried out by         economic conditions, including the political, economic environment
the Investment Team of the AMC. The credit evaluation includes a             and factors affecting liquidity and interest rates. The AMC would use
study of the operating environment of the company, the past track            this analysis to attempt to predict the likely direction of interest rates
record as well as the future prospects of the issuer, the short as well      and position the portfolio appropriately to take advantage of the
as long-term financial health of the issuer. The AMC will also be            same.
guided by the ratings of rating agencies such as CRISIL, CARE and            The Fund may invest a part of the portfolio in various debt securities
ICRA or any other rating agency as approved by the regulators.               issued by corporates and / or State and Central Government. Such
In addition, the Investment Team of the AMC will study the macro             government securities may include securities which are supported by
economic conditions, including the political, economic environment           the ability to borrow from the treasury or supported only by the
and factors affecting liquidity and interest rates. The AMC would use        sovereign guarantee or of the state government or supported by
this analysis to attempt to predict the likely direction of interest rates   GOI / state government in some other way.
and position the portfolio appropriately to take advantage of the            Given that the liquidity of fixed income instruments is currently
same.                                                                        limited, the AMC will try to provide liquidity by staggering maturities
A top down and bottom up approach will be used to invest in equity           for various instruments, as well as holding a sufficient portion of the
and equity related instruments. Investments will be pursued in select        portfolio in more liquid government and corporate paper as well as
                                                                             money market securities.
sectors based on the Investment Team's analysis of business cycles,
regulatory reforms, competitive advantage etc. Selective stock picking       The Scheme may invest in other Scheme(s) managed by the AMC
will be done from these sectors. The fund manager in selecting scrips        or in the schemes of any other mutual fund, provided it is in conformity
will focus on the fundamentals of the business, the industry structure,      with the investment objectives of the Scheme and in terms of the
the quality of management, sensitivity to economic factors, the              prevailing Regulations. As per the Regulations, no investment
financial strength of the company and the key earnings drivers.              management fees will be charged for such investments.


40                                                                                        Combined Scheme Information Document (SID)
HSBC Floating Rate Fund (HFRF)                                              would mean higher allocation to 6-12months instruments and a mix
The Scheme shall invest in floating rate debt and Money Market              of structured credits in the 1 year segment as well as moving down
Instruments, other debt and money market instruments and cash and           the credit curve to improve yield. The fund could run a mark to
cash equivalents such as reverse repos. The scheme would seek to            market component slightly higher than a liquid fund (whose regulatory
generate reasonable returns. Floating rate instruments are instruments      maximum is 10%) but sharply lower than an STP (in the region of
where interest rate is linked to a benchmark (such as MIBOR, 1 year,        40-60%).
G-sec etc.). In general, floating rate instruments provide higher           With the aim of controlling risks, a credit evaluation of the instruments
returns in the event the benchmark interest rate moves up as re-            proposed to be invested in will be carried out by the Investment Team
pricing of instrument happens at higher rate. However if the benchmark      of the AMC. The credit evaluation includes a study of the operating
interest rate moves down then returns on the floating rate instrument       environment of the company, the past track record as well as the
will be lower.                                                              future prospects of the issuer, the short as well as long-term financial
Since investing requires disciplined risk management, the AMC               health of the issuer. The AMC will also be guided by the ratings of
would incorporate adequate safeguards for controlling risks in the          rating agencies such as CRISIL, CARE and ICRA or any other rating
portfolio construction process. Risk will also be reduced through           agency as approved by the regulators.
adequate diversification of the portfolio. Diversification will be          In addition, the Investment Team of the AMC will study the macro
achieved by spreading the investments over a range of industries /          economic conditions, including the political, economic environment
sectors.                                                                    and factors affecting liquidity and interest rates. The AMC would use
The Scheme may invest in unlisted and / or privately placed and /           this analysis to attempt to predict the likely direction of interest rates
or unrated debt securities subject to the limits indicated under            and position the portfolio appropriately to take advantage of the
Investment Restrictions for the Scheme prescribed in this Combined          same.
Scheme Information Document, from issuers of repute and sound               The Fund may invest a part of the portfolio in various debt securities
financial standing. If investment is made in unrated debt securities,       issued by corporates and / or State and Central Government. Such
the approval of the Board of the AMC and the Trustees or the                government securities may include securities which are supported by
Investment Management Committee (within the broad parameters                the ability to borrow from the Treasury or supported only by India's
approved by the Board of the AMC and the Trustees) shall be                 sovereign guarantee or of the state government or supported by
obtained, as per the Regulations. The AMC shall follow such policies        GOI / state government in some other way.
as may be prescribed under the SEBI regulations from time to time.
                                                                            The Scheme may invest in other Schemes managed by the AMC or
As per the asset allocation pattern indicated above, the Fund may           in the schemes of any other mutual fund, provided it is in conformity
invest in various debt securities and money market instruments              with the investment objectives of the respective schemes and in
issued by corporates and / or State and Central Government. Such            terms of the prevailing Regulations. As per the Regulations, no
government securities may include securities which are supported by         investment management fees will be charged for such investments.
the ability to borrow from the treasury or supported only by the
sovereign guarantee or of the state government or supported by              HSBC Gilt Fund (HGF)
GOI / state government in some other way.                                   HGF shall invest in Government Securities which shall provide
With the aim of controlling risks, in depth credit evaluation of the        reasonable returns generally construed to be without any Credit Risk.
instruments proposed to be invested in will be carried out by the           It may also invest in repos / reverse repos in such securities, as and
Investment Team of the AMC. The credit evaluation includes a study          when permitted by RBI. The Scheme will endeavour to invest mainly
of the operating environment of the company, the past track record          in securities issued by Government of India and the State Governments
as well as the future prospects of the issuer, the short as well as long-   which issue these securities to raise finance to meet their Revenue
term financial health of the issuer. The AMC will also be guided by         and Capital expenditure. The Government Securities market is a
the ratings of rating agencies such as CRISIL, CARE and ICRA or             liquid market in India and provides an avenue for investment where
any other rating agency as approved by the regulators.                      risk is generally lower than that in corporate bonds. The Scheme will
                                                                            provide an opportunity to retail investors to invest in Government
The Scheme may invest in other Scheme(s) managed by the AMC                 Securities.
or in the schemes of any other mutual fund, provided it is in conformity
with the investment objectives of the Scheme and in terms of the            The AMC's view of interest rate trends will be reflected in the type
prevailing Regulations. As per the Regulations, no investment               and the maturity dates of instruments in which funds are invested.
management fees will be charged for such investments.                       In pursuing such a policy it should be recognised that the best overall
                                                                            returns are achieved by anticipating or reacting to interest rate changes
HSBC Ultra Short Term Bond Fund (HUSBF)                                     rather than aiming for the highest possible interest rates at all times.
The aim of the Investment Manager will be to allocate the assets of         The best resultant overall return is therefore achieved through both
the Scheme between various money market and fixed income                    capital appreciation and income. The Fund aims to provide investors
securities (predominantly short duration instruments) with the              with actively managed portfolios of gilts.
objective of providing liquidity and achieving optimal returns with         The Scheme shall invest in various State and Central Government
the surplus funds.                                                          securities including securities which are supported by the ability to
Since providing liquidity is of paramount importance, the focus will        borrow from the treasury or supported only by the sovereign guarantee
be to ensure liquidity while seeking to maximise the yield. An              or of the state government or supported by GOI / state government
appropriate mix of money market and debt instruments will be used           in some other way.
to achieve this. The Investment Team of the AMC will carry out              The Portfolio(s) of the Plan(s) / Option(s) of the Scheme shall be
rigorous in depth credit evaluation of the money market and debt            rebalanced on a regular basis.
instruments proposed to be invested in. The credit evaluation includes
a study of the operating environment of the issuer, the past track          HSBC Cash Fund (HCF)
record as well as the future prospects of the issuer and the short term /   Since providing liquidity is of paramount importance, the focus will
long term financial health of the issuer. The AMC will study the            be to ensure liquidity while seeking to maximise the yield. An
macro economic conditions, including the political and economic             appropriate mix of money market and debt instruments will be used
environment and factors affecting liquidity and yields in an attempt        to achieve this. The Investment Team of the AMC will carry out
to predict the direction of interest rates.                                 rigorous in depth credit evaluation of the money market and debt
Liquidity will be maintained through a combination of cash, reverse         instruments proposed to be invested in. The credit evaluation includes
repo, daily put/call MIBOR papers and liquid CPs/CDs of strong              a study of the operating environment of the issuer, the past track
credits. As compared to a liquid fund, the higher portfolio maturity        record as well as the future prospects of the issuer and the short term /
                                                                            long term financial health of the issuer.


HSBC Mutual Fund                                                                                                                                  41
The AMC will study the macro economic conditions, including the            the Investment Team of the AMC. The credit evaluation includes a
political and economic environment and factors affecting liquidity         study of the operating environment of the company, the past track
in an attempt to predict the direction of interest rates.                  record as well as the future prospects of the issuer, the short as well
                                                                           as long-term financial health of the issuer. The AMC will also be
The Scheme may invest in unlisted and / or privately placed and /
                                                                           guided by the ratings of rating agencies such as CRISIL, CARE and
or unrated debt securities subject to the limits indicated under
                                                                           ICRA or any other rating agency as approved by the regulators.
"Investment Restrictions for the Scheme(s)" in this Combined Scheme
Information Document, from issuers of repute and sound financial           In addition, the Investment Team of the AMC will study the macro
standing. If investment is made in unrated debt securities, the approval   economic conditions, including the political, economic environment
of the Board of the AMC and the Trustees or the Investment                 and factors affecting liquidity and interest rates. The AMC would use
Management Committee (within the broad parameters approved by              this analysis to attempt to predict the likely direction of interest rates
the Board of the AMC and the Trustees) shall be obtained, as per the       and position the portfolio appropriately to take advantage of the
Regulations.                                                               same.
The Fund may invest a part of the portfolio in various debt securities     The Scheme may invest in other Scheme managed by the AMC or
issued by corporates and / or State and Central Government. Such           in the schemes of any other mutual fund, provided it is in conformity
government securities may include securities which are supported by        with the investment objectives of the Scheme and in terms of the
the ability to borrow from the treasury or supported only by the           prevailing Regulations. As per the Regulations, no investment
sovereign guarantee or of the state government or supported by             management fees will be charged for such investments.
GOI / state government in some other way.
                                                                           HSBC Emerging Markets Fund (HEMF)
The Scheme may invest in other Scheme(s) managed by the AMC                The aim of the HSBC Emerging Markets Fund is to provide long-
or in the schemes of any other mutual fund, provided such investment       term capital appreciation from an actively managed portfolio,
is in conformity with the investment objectives of the Scheme and          primarily comprising of a mix of small, mid and large cap stocks.
in terms of the prevailing Regulations. As per the Regulations, no         Income is not a primary consideration in the investment policies of
investment management fees will be charged for such investments.           the HSBC Emerging Markets Fund. The Scheme aims to be
HSBC Flexi Debt Fund (HFDF)                                                predominantly invested in equity and equity related securities. The
                                                                           Fund may also invest in fixed income securities.
The Scheme can invest across all classes of fixed income instruments.
There will be no cap or floor on maturity, duration or instrument type     HEMF may invest in the Emerging Markets through overseas funds
concentrations. The Fund Manager, depending on the interest rates          or overseas equity and equity related securities share classes / Units
view has the flexibility to allocate the funds in any fixed income         of equity Fund as permitted by SEBI. HEMF proposes to invest in
instrument and endeavour to provide yields in line with the current        the overseas market by investing in units / securities issued by
market scenario. The Fund aims to optimise returns for the investors       overseas mutual funds managed by HSBC globally, for example
by designing a portfolio, which will dynamically track interest rate       HSBC GEM Equity Fund (GEM) etc. The Fund may undertake
movements in the short term by reducing duration in a rising rate          currency hedge to protect the investors from the risk associated with
environment while increasing duration in a falling interest rate           movement in currency markets as mentioned in the risk factors
environment. The investment strategy would revolve around                  earlier.
structuring the portfolio with an aim to capture positive price            A top down and bottom up approach will be used to invest in equity
movements and minimise the impact of adverse price movements.              and equity related instruments. Investments will be pursued in select
A top down and bottom up approach will be used to invest in equity         sectors based on the Investment Team's analysis of business cycles,
and equity related instruments. Investments will be pursued in select      regulatory reforms, competitive advantage etc. Selective stock picking
sectors based on the Investment Team's analysis of business cycles,        will be done from these sectors. The fund manager in selecting scrips
regulatory reforms, competitive advantage etc. Selective stock picking     will focus on the fundamentals of the business, the industry structure,
will be done from these sectors. The fund manager(s) in selecting          the quality of management, corporate governance trends, sensitivity
scrips will focus on the fundamentals of the business, the industry        to economic factors, the financial strength of the company and the
structure, the quality of management, sensitivity to economic factors,     key earnings drivers.
the financial strength of the company and the key earnings drivers.        Since investing requires disciplined risk management, the AMC
Since disciplined investing requires risk management, the AMC              would incorporate adequate safeguards for controlling risks in the
would incorporate adequate safeguards for controlling risks in the         portfolio construction process. Risk will also be reduced through
portfolio construction process.                                            adequate diversification of the portfolio. Diversification will be
                                                                           achieved by spreading the investments over a range of industries /
The Scheme may invest in unlisted and / or privately placed and /          sectors.
or unrated debt securities subject to the limits indicated under
"Investment Restrictions for the Scheme prescribed in this Combined        The Scheme may however, invest in unlisted and / or privately placed
Scheme Information Document, from issuers of repute and sound              and / or unrated debt securities subject to the limits indicated under
financial standing. If investment is made in unrated debt securities,      "Investment Restrictions for the Scheme prescribed in this Combined
the approval of the Board of the AMC and the Trustees or the               Scheme Information Document, from issuers of repute and sound
Investment Management Committee (within the broad parameters               financial standing. If investment is made in unrated debt securities,
approved by the Board of the AMC and the Trustees) shall be                the approval of the Board of the AMC and the Trustees or the
obtained, as per the Regulations.                                          Investment Management Committee (within the broad parameters
                                                                           approved by the Board of the AMC and the Trustees) shall be
As per the asset allocation pattern indicated above, for investment        obtained, as per the Regulations.
in debt securities and money market instruments, the Fund may
invest a part of the portfolio in various debt securities issued by        As per the asset allocation pattern indicated above, for investment
corporates and / or State and Central Government. Such government          in debt securities and money market instruments, the Fund may
securities may include securities which are supported by the ability       invest a part of the portfolio in various debt securities issued by
to borrow from the treasury or supported only by the sovereign             corporates and / or State and Central Government. Such government
guarantee or of the state government or supported by GOI / state           securities may include securities which are supported by the ability
government in some other way.                                              to borrow from the treasury or supported only by the sovereign
                                                                           guarantee or of the state government or supported by GOI / state
With the aim of controlling risks, rigorous in depth credit evaluation     government in some other way.
of the instruments proposed to be invested in will be carried out by


42                                                                                      Combined Scheme Information Document (SID)
With the aim of controlling risks, rigorous in depth credit evaluation       Broader opportunity set
of the instruments proposed to be invested in will be carried out by         In emerging markets, there are asset plays, growth stories and
the Investment Team of the AMC. The credit evaluation includes a             restructuring plays, among others. Many companies in emerging
study of the operating environment of the company, the past track            markets have absolute advantages, either in terms of labour costs or
record as well as the future prospects of the issuer, the short as well      raw materials. By including emerging markets in the opportunity set,
as long-term financial health of the issuer. The AMC will also be            investors can access some world class companies, such as Samsung
guided by the ratings of rating agencies such as CRISIL, CARE and            and Infosys.
ICRA or any other rating agency as approved by the regulators.
                                                                             Rapid economic growth
In addition, the Investment Team of the AMC will study the macro             Many emerging markets are gradually profiting from economic
economic conditions, including the political, economic environment           reforms and technological advances, ensuring faster growth.
and factors affecting liquidity and interest rates. The AMC would use
this analysis to attempt to predict the likely direction of interest rates   Positive economic trends
and position the portfolio appropriately to take advantage of the            Driven by a demographic profile that is expected to have increased
same.                                                                        earning ability and spending power, Emerging Markets are poised to
                                                                             benefit from growth in consumption. Also, most Emerging Markets
The Scheme may invest in other Scheme(s) managed by the AMC                  are witnessing a sharp growth in exports in key areas like technology,
or in the schemes of any other mutual fund, provided it is in conformity     automobiles, precious metals, agricultural products etc. Moreover,
with the investment objectives of the Scheme and in terms of the             many Asian countries are cashing in on the outsourcing wave
prevailing Regulations. As per the Regulations, no investment                especially in the service sector. In the future, several themes may
management fees will be charged for such investments.                        characterize the growth emerging markets. These include the rise of
Emerging Markets Outlook and Strategy                                        China as a global manufacturing center, the growth of inter Asian
                                                                             trade, the emergence of Russia as major energy supplier, the
Emerging Market countries are characterized by an underdeveloped
                                                                             enlargement of the EU, outsourcing, and the wiring of the emerging
or developing commercial and financial infrastructure, with significant
                                                                             world, to name a few.
potential for economic growth and eased capital market participation
by foreign investors. Countries generally considered to be Emerging          Reduced risks
Markets possess some, but not necessarily all, of the following              As a result of widespread reforms many companies domiciled in
characteristics:                                                             Emerging Markets benefit from better corporate governance,
l    Per capita GNP of less than U.S. $ 9,656 (the current World             disclosure norms and risk management policies. At the country level,
     Bank definition of low - and middle - income economies);                many Emerging Markets now have well controlled budget deficits
                                                                             and inflation, improved solvency and current account surplus. Their
l    Recent or relatively recent economic liberalization (including,         currencies are increasingly becoming more stable and foreign reserves
     but not limited to, a reduction in the state's role in the economy,     stand at healthy figures.
     privatization of previously state-owned companies, and / or
     removal of foreign exchange controls and obstacles to foreign           Most Indian investors continue to be underweight in non-domestic
     investment);                                                            equities and, in particular, emerging markets. Although political and
                                                                             other risks are to be considered carefully, adding emerging markets
l    Debt ratings below investment grade by major international              to a portfolio can both increase return and diversify risk. Worldwide,
     ratings agencies and a recent history of defaulting on, or              the performance of Emerging Market Funds has also been looking
     rescheduling of, sovereign debt;                                        positive.
l    Recent liberalization of the political system and a move towards        Overview of the Overseas Fund
     greater public participation in the political process; and              HSBC Global Investment Funds (HGIF)
l    Non-membership in the Organization of Economic Co-operation             HSBC Global Investment Funds is an investment company (Société
     and Development (OECD).                                                 d'Investissement à Capital Variable) incorporated in the Grand Duchy
                                                                             of Luxembourg and qualifies as an Undertaking for Collective
Countries that are usually considered classic examples of Emerging           Investment in Transferable Securities (UCITS) complying with the
Markets include Argentina, Brazil, India, Mexico, China, Central             provisions of Part I of the law of 20 December, 2002 on undertakings
and Eastern European nations and Russia. Others that may be                  for collective investment (as amended) (the "2002 Law").
considered borderline cases, possessing fewer of the above
characteristics, include Greece, Portugal, and Turkey.                       HSBC GIF Global Emerging Markets Equity (GEM Fund) is the
                                                                             sub-fund of HGIF and has been currently identified by the HSBC
However, the list of countries could change depending on various             Emerging Markets Fund (HEMF) for overseas investment of funds
other factors.                                                               collected by HEMF. Further, HEMF may in future identify such
Opportunities in Emerging Markets                                            additional funds as may be required from time to time.
Emerging Markets are playing an increasingly important role in the           The Investment Objective and asset allocation pattern of GEM
world economy. Although, they may often be characterized by                  Fund is as under:
volatility, they also display a great degree of diversity, rapid economic    As per the prospectus the sub-fund seeks long-term capital growth
growth and the potential to unlock greater value over the long term.
                                                                             by investing at least two thirds of its non-cash assets in a well-
Such avenues enable the fund manager to take advantage of
                                                                             diversified portfolio of investments in equity and equity equivalent
inefficiencies and assume higher positions at attractive valuation
                                                                             securities issued by companies which have their registered office in,
levels.
                                                                             and with an official listing in, an Emerging Market, as well as
Backed by continuing improvements in economic fundamentals and               companies which carry out a preponderant part of their economic
abundant human and natural resources, emerging markets are set to            activities in Emerging Markets. The sub-fund will seek to invest
outpace developed economies.                                                 primarily in securities listed on a regulated market, but may also
                                                                             invest up to 10% of the sub-fund's net assets in securities listed on
Some of the key benefits of investing in emerging markets are:
                                                                             markets that are not Regulated Markets. Investment in interest bearing
Diversification                                                              securities is also permitted either for short-term cash surpluses or in
By adding emerging markets to their portfolio, investors have the            response to unfavourable equity market conditions and this is limited
opportunity to diversify across several currencies and economies             to one third of the total assets of the sub-fund. Whilst there are no
having competitive advantage and participate in their growth. This           capitalisation restrictions, it is anticipated that the sub-fund will
can lead to the construction of more efficient portfolios.                   invest primarily in larger, established companies.


HSBC Mutual Fund                                                                                                                                 43
The GEM Fund had exposure to the following 17 countries as of              The indicative yields and liquidity on various securities, currently
31 March, 2009:                                                            as on 28 April, 2009, are as under:

South Korea         Brazil             Egypt             Thailand          Issuer              Instrument         Maturity       Yields    Liquidity

Philippines         Czech Republic     Mexico            Turkey            GOI                 Treasury Bill      91 days     3.15-3.50% Medium
Taiwan              South Africa       Malaysia                            GOI                 Treasury Bill      364 days    3.60-4.50% Medium
Russia              India              Hungary                             GOI                 Short Dated         1-3 Yrs    3.10-5.00% Medium
                                                                                                                                         to High
China               Indonesia          Israel
                                                                           GOI                 Medium Dated        3-5 Yrs    5.70-6.10% Medium
As of 31 March, 2009, the asset allocation of the GEM Fund was                                                                           to High
as follows:                                                                GOI                 Medium Dated       5-10 Yrs    6.30-7.10% High
Sr. No.     Type of securities                     % of Fund               GOI                 Long Dated         10-15Yrs    6.60-7.45% High
     1      Equity                                     96.33               GOI                 Long Dated          >15Yrs     6.90-7.60% High
     2      Bonds                                        -                 GOI                 Reverse Repo       1-14 days   1.00-2.50% High
                                                                                               / CBLO
     3      Money Market                                 -
                                                                           Corporate Debt      Taxable Bonds      364 days    5.00-7.50% Low to
     4      Cash                                       3.67                                     (AAA)                                    Medium
            Total                                       100                Corporate Debt      Taxable Bonds       1-3 Yrs          6-8% Low to
                                                                                               (AAA)                                     Medium
Dollar conversion process:                                                 Corporate Debt      Taxable Bonds       3-5 Yrs    7.20-8.50% Medium
For the purpose of US dollar conversion, HEMF intends to use the                               (AAA)
prices available through Reuter as per the closing time of the Indian
Markets or any other currency rate widely representative of the            Corporate Debt      Taxable Bonds      5-10 Yrs     7.50-9.0%   Medium
market. Eg. Mean of inter-bank bid ask rate.                                                   (AAA)
                                                                           Corporate Debt      CPs (P1+)          3 months    6.00-7.25% Medium
Expenses:
                                                                           Corporate Debt      CPs (P1+)           1 Year     7.00-8.20% Medium
HSBC GIF Global Emerging Markets Equity (GEM Fund) has various
share classes and has different expenses for each such share class.        Strategies for fixed income derivatives:
The expenses are classified into Management & Distribution expenses        1. Bond - Swap: Under this strategy, the fund manager pays fixed
and Operating expenses. The management & distribution expense                   rate on Overnight Indexed Swap (OIS) against an underlying
for a retail share class like Share Class A is 1.50% whereas share              bond of a similar or greater tenor and receives Mumbai Inter-
class I, which is the institutional share class, has management &               Bank Offer Rate (MIBOR). This is essentially done for hedging
distribution fees of around 0.75% of the net assets. Further, the               interest rate risk or for rebalancing portfolio allocation to fixed
administrative, operating and servicing expenses for all classes are            and floating rate bonds. Effectively, through this trade the fund
capped at 1% which is over and above the management and distribution            manager is able to convert a fixed rate bond into a floating rate
expenses. HGIF could change the expenses for the various share                  MIBOR linked instrument. The trade has exposure to 'basis
classes from time to time.                                                      movement' - the relative movement of bond versus OIS.
                                                                           2.    Receive OIS: Here the fund manager receives fixed rate on OIS
Position of Debt Markets in India:                                               against either cash or a floating rate bond of a similar or greater
The major players in the Indian debt markets today are banks,                    tenor, and pays MIBOR. The objective is to rebalance portfolio
financial institutions, insurance companies and mutual funds. The                in favour of fixed rate exposure.
instruments in the market can be broadly categorised as those issued
                                                                           3.    Curve Steepener: This strategy aims to capture a potential
by corporates, banks, financial institutions and those issued by State /
                                                                                 steepening of the curve between any 2 tenors: say, 1 and 5 years.
Central Governments. The risks associated with any investment are
                                                                                 For example, the fund manager can receive fixed rate on 1 year
- credit risk, interest rate risk and liquidity risk. While corporate            OIS (against cash or floating rate bond) and pay fixed rate on
papers carry credit risk due to changing business conditions,                    5 year OIS (against fixed rate bond). However, apart from the
government securities are perceived to have zero credit risk. Interest           relative spread between the 5 year and 1 year OIS, the trade is
rate risk is present in all debt securities and depends on a variety of          also exposed to relative duration for the 2 tenors as well as basis
macroeconomic factors. The liquidity risk in the corporate securities            risk on the bond-swap (in this example, the 5 year bond-swap).
market is higher as compared to that in case of government securities.
Liquidity in the corporate debt market has been improving due to the       4.    Curve Flattener: This strategy aims to capture a potential
entry of more players and due to various measures taken by the                   flattening of the curve between any 2 tenors: say 1 and 5 years.
regulators in this direction over a period of time. SEBI's directive of          For example, the fund manager can pay fixed rate on 1 year OIS
                                                                                 (against fixed rate bond) and receive fixed rate 5 year OIS
a compulsory rating by a rating agency for any public issuance over
                                                                                 (against cash or floating rate bond). Like mentioned above, the
18 months, dematerialisation, entry of private insurance companies,
                                                                                 trade is also exposed to duration as well as basis risk.
listing of debt securities and growth of fixed income mutual funds
have enhanced liquidity in the corporate debt market. The setting up       Portfolio Turnover
of clearing corporations, real time gross settlement and electronic        Portfolio turnover is defined as lesser of purchases and sales as a
clearing system for government securities have considerably enhanced       percentage of the average corpus of the Scheme(s) during a specified
the depth and width of the Indian debt markets and bringing it at par      period of time. The Scheme(s) being an open-ended scheme(s), it is
with developed markets.                                                    expected that there would be a number of subscriptions and
The following table attempts to give a broad overview of the available     redemptions on a daily basis. Consequently, it is difficult to estimate
                                                                           with any reasonable measure of accuracy, the likely turnover in the
instruments in the financial markets and their risk - return profile.
                                                                           portfolio(s). Active asset allocation would impact portfolio turnover.
The data is based on the market conditions as on the date of the Offer
Document and may vary substantially depending upon the factors             Procedure followed for Investment Decisions
and forces affecting the securities market including the fluctuations      The Fund Manager(s) of the Scheme(s) is/are responsible for making
in the interest rates.                                                     buy / sell decisions in respect of the securities in the Scheme's portfolio


44                                                                                      Combined Scheme Information Document (SID)
and to develop a well diversified portfolio that minimizes liquidity        income earned out of such investments would be merged with the
and credit risk. The investment decisions are made on a daily basis         corpus of the Scheme on completion of the allotment of the Units.
keeping in view the market conditions and all relevant aspects.
                                                                            Investments by the AMC in the Scheme
The Board of the AMC has constituted an Investment Management               The AMC may invest in the Scheme(s) at any time during the
Committee that meets at periodic intervals. The Investment                  continuous offer period subject to the SEBI Regulations & circulars
Management Committee, at its meetings, reviews investments,                 issued by SEBI and to the extent permitted by its Board of Directors
including investments in unrated debt instruments. The approval of          from time to time. As per the existing SEBI Regulations, the AMC
unrated debt instruments is based on parameters laid down by the            will not charge investment management and advisory fee on the
Board of the AMC and the Trustees. The details of such investments          investment made by it in the Scheme.
are communicated by the AMC to the Trustees in their periodical
reports along with a disclosure regarding how the parameters have           F. FUNDAMENTAL ATTRIBUTES
been complied with. Such reportings shall be in the manner prescribed
by SEBI from time to time. The Committee also reviews the                   The following are the fundamental attributes of the Scheme(s), in
performance of the Scheme and general market outlook and formulates         terms of Regulation 18 (15A) of the Regulations:
the broad investment strategy at their meetings.                            (i)   Type of a scheme
It is the responsibility of the AMC to ensure that the investments are            l   Open ended/Close ended/Interval scheme
made as per the internal / Regulatory guidelines, Scheme investment               l   Sectoral Fund/Equity Fund/Balance Fund/Income Fund/
objectives and in the best interest of the Unitholders of the respective              Index Fund/Any other type of Fund
Scheme. The Fund may follow internal guidelines as approved by
the Board of the AMC and the Trustees from time to time.                    (ii) Investment Objective
                                                                                 l    Main Objective - Growth/Income/Both.
HEF: All individual holdings in securities above 5% of the NAV will
                                                                                 l    Investment pattern - The tentative Equity/Debt/Money
not exceed 50% of the NAV and no individual holding will exceed
                                                                                      Market portfolio break-up with minimum and maximum
10% of NAV. If however, the above limits are exceeded due to
                                                                                      asset allocation, while retaining the option to alter the asset
redemptions or the relative movements in prices of the holdings in
                                                                                      allocation for a short term period on defensive
the portfolio, the position would be rectified as soon as practicable.
                                                                                      considerations.
HIOF : All individual equity holdings in securities above 6% of the
                                                                            (iii) Terms of Issue
NAV will not exceed 60% of the Net Assets of the Scheme.
                                                                                  l   Liquidity provisions such as listing, repurchase, redemption.
HMEF : All individual equity holdings in securities above 5% of the               l   Aggregate fees and expenses charged to the scheme.
portfolio will not exceed 40% of the portfolio.
                                                                                  l   Any safety net or guarantee provided.
HIF & HCF: No more than 12.50% of the NAV of the Scheme(s) will
be invested in securities of any one issuer rated AAA. This limit will      In accordance with Regulation 18(15A) of the SEBI Regulations, the
however, not apply to Central Government securities.                        Trustees shall ensure that no change in the fundamental attributes of
                                                                            the Scheme(s) and the Plan(s) / Option(s) thereunder or the trust or
HTSF & HUOF : Investments in each stock may be allowed to reach             fee and expenses payable or any other change which would modify
a level of upto 15% of the Net Assets of the Scheme (at the time of         the Scheme(s) and the Plan(s) / Option(s) thereunder and affect the
investment, it shall not be allowed to exceed the limit of 10%, as          interests of Unitholders is carried out unless:
required under the SEBI Regulations but may be allowed to reach
a level of 15% of the Net Assets of the Scheme, due to market               l     A written communication about the proposed change is sent to
appreciation, redemptions, dividend payments etc. but not from fresh              each Unitholder and an advertisement is given in one English
investments).                                                                     daily newspaper having nationwide circulation as well as in a
                                                                                  newspaper published in the language of the region where the
The AMC reserves the right to modify, alter, add, delete any internal             Head Office of the Mutual Fund is situated; and
limits from time to time, in accordance with Group policies.
                                                                            l     The Unitholders are given an option for a period of 30 days to
The Heads of Fund Management - Equities & Fixed Income present                    exit at the prevailing Net Asset Value without any exit load.
to the Board of the AMC and the Trustees periodically, the performance
of the Schemes. The performance of the Scheme(s) will be reviewed           G. HOW WILL THE SCHEME(S) BENCHMARK
by the Boards with reference to their appropriate benchmark(s).                ITS PERFORMANCE(S)?
However, the Schemes' performance may not be strictly comparable            BENCHMARK INDEX: The Scheme(s) / Plan(s) performance will
with the performance of their respective Indices due to the inherent        be compared with their respective benchmark(s) as per the table
differences in the construction of the portfolios. The Boards may           below:
review the benchmark selection process from time to time, and make
suitable changes as to use of the benchmark, or related to composition       Scheme / Plan       Benchmark
of the benchmark, whenever it deems necessary.                               HEF                 BSE 200
The Heads of Fund Management - Equities & Fixed Income will                  HIOF                BSE 500
bring to the notice of the AMC Board, specific factors if any, which
                                                                             HMEF                BSE Midcap
are impacting the performance of the Scheme(s). The Board on
consideration of all relevant factors may, if necessary, give appropriate    HAIF                BSE 200
directions to the AMC. Similarly, the performance of the Scheme(s)
                                                                             HMIP                CRISIL MIP Blended Index
will be submitted to the Trustees. The Heads of Fund Management
- Equities & Fixed Income will explain to the Trustees, the details          HIF-ST              CRISIL Short Term Bond Fund Index
on the Schemes' performance vis-à-vis the benchmark returns.                 HIF-IP              CRISIL Composite Bond Fund Index
The AMC will keep a record of all investment decisions.                      HFRF                CRISIL Liquid Fund Index
Investment of Subscription Money                                             HGF                 I Sec Composite Index
The Fund may invest subscription money received from the investing           HUSTF               CRISIL Liquid Fund Index - 90%
public in bank deposits, or money market instruments before                                      CRISIL Short Term Bond Fund Index - 10%
finalisation of the allotment of Units. The AMC, on being satisfied
of the receipt of the minimum subscription amount, can commence              HCF                 CRISIL Liquid Fund Index
investment out of the funds received in accordance with the investment       HTSF                BSE 200
objectives of the Scheme and as per the existing Regulations. The


HSBC Mutual Fund                                                                                                                                 45
Scheme / Plan        Benchmark                                            l    HSBC Securities and Capital Markets (India) Private
                                                                               Limited
HUOF                BSE 200                                                    Deputy Head of Research from March 1997 to August 2002
HDF                  BSE 200                                              l    ITC Classic Share & Stock Broking
                                                                               Analyst from June 1995 to March 1997
HFDF                 CRISIL Composite Bond Fund Index
                                                                          Dhimant Shah, Vice President & Fund Manager
HEMF                MSCI Emerging Market Index
                                                                          41 years
HSCF                BSE Small Cap Index                                   B.Com., CA
However, the Schemes' performance may not be strictly comparable          Experience:
with the performance of the Indices due to the inherent differences       Over 16 years experience in Equity Research. This involved analyzing
in the construction of the portfolios. The Boards may review the          various sectors and companies and presenting investment ideas to
benchmark selection process from time to time, and make suitable          fund managers in India and abroad.
changes as to use of the benchmark, or related to composition of the      l    HSBC Asset Management (India) Private Limited
benchmark, whenever it deems necessary.                                        Fund Manager from March 2007 to present
Justification                                                             l    Reliance Asset Management Co. Limited
The Scheme(s)/Plan(s) are being benchmarked against the respective             Vice President / Portfolio Manager from October 2005 to
Indices mentioned above, since the composition of the Indices is in            February 2007
line with the investment objective of the respective Scheme(s)/Plan(s)    l    ASK Raymond James Securities Pvt. Limited
and is most suited for comparing performance of the Scheme(s)/                 Portfolio Manager from September 2003 to September 2005
Plan(s). It will also enable the investors to arrive at a more informed   l    IL&FS Asset Management Co. Limited
judgement on scheme(s) performances.                                           Senior Analyst from April 1997 to August 2003
                                                                          Nilang Mehta, CFA
H. WHO MANAGES THE SCHEME(S)?
                                                                          Vice President & Fund Manager
FUND MANAGER(S)
                                                                          32 years
Scheme                               Fund Managers                        M.Com., Chartered Accountant
HSBC Equity Fund                     Jitendra Sriram & Nilang Mehta
                                                                          Experience:
HSBC India Opportunities Fund        Jitendra Sriram & Dhimant Shah       Over 9 years experience in credit research and fund management.
HSBC Advantage India Fund            Jitendra Sriram & Nilang Mehta       l   HSBC Asset Management (India) Pvt. Ltd.
HSBC Mid Cap Equity Fund             Dhimant Shah & Jitendra Sriram           Fund Manager from October 2007 to present
                                                                              Assistant Fund Manager from July 2004 to October 2007
HSBC MIP - Savings & Regular Plan    For Fixed Income portion:
                                     Suyash Choudhary                     l   Alliance Capital Asset Management (India) Pvt. Ltd.
                                     For Equity portion: Nilang Mehta         Senior Manager - Fixed Income from April 2003 to July
                                     & Aditya Khemani                         2004
HSBC Income Fund - Investment Plan   Suyash Choudhary & Sanjay Shah       l   IDBI Principal Asset Management (India) Pvt. Ltd.
                                                                              Investment Analyst from April 2001 to April 2003
HSBC Income Fund - Short Term Plan   Suyash Choudhary & Sanjay Shah
                                                                          l   Bank of America - Global Capital Markets
HSBC Floating Rate Fund -            Suyash Choudhary & Sanjay Shah           Industrial Trainee from August 1998 to August 1999
Long Term Plan & Short Term Plan
HSBC Ultra Short Term Bond Fund      Sanjay Shah & Kedar Karnik           Aditya Khemani,
HSBC Gilt Fund                       Suyash Choudhary & Sanjay Shah       Associate Vice President & Assistant Fund Manager, Equities
                                                                          28 years
HSBC Cash Fund                       Sanjay Shah & Suyash Choudhary
                                                                          PGDBM, B.Com. (Hons.)
HSBC Dynamic Fund                    Jitendra Sriram For Equity portion
                                     and Suyash Choudhary                 Experience:
                                     For Debt portion                     Over 4 years experience in research.
HSBC Flexi Debt Fund                 Suyash Choudhary & Sanjay Shah       l   HSBC Asset Management (India) Private Limited
                                                                              Associate Vice President & Assistant Fund Manager,
HSBC Emerging Markets Fund           Niren Parekh
                                                                              Equities from February 2009 onwards
HSBC Tax Saver Equity Fund           Nilang Mehta & Aditya Khemani            Associate Vice President - Investment Management from
HSBC Unique Opportunities Fund       Dhimant Shah & Jitendra Sriram           October 2007 to February 2009
HSBC Small Cap Fund                  Dhimant Shah                         l   SBI Funds Management India Private Limited
                                                                              Senior Manager - Equity Research from March 07 - Sep. 07
Niren Parekh will be the dedicated Fund Manager for making overseas
                                                                          l   Prudential ICICI Asset Management Company India Private
investments as permitted under the Regulations, guidelines and
                                                                              Limited
circulars issued from time to time.
                                                                              Assistant Manager - Equity Research from Dec. 05 - Feb. 07
Jitendra Sriram, Vice President & Head of Fund Management -               l   Morgan Stanley Advantage Services Private Limited
Equities                                                                      Research Associate from May 05 - Nov. 05
37 years
B.E. (Elect.), Post Graduate Diploma in Business Management               Niren Parekh,
Experience:                                                               Associate Vice President, Investment Management
Over 14 years experience in Equity Research. This involved analyzing      28 years
various sectors and companies and presenting investment ideas to          Post Graduate Diploma in Business Management
fund managers in India and abroad.
                                                                          Chartered Accountant
l    HSBC Asset Management (India) Private Limited
     Vice President & Head of Fund Management - Equities                  Experience:
     from February 2009 onwards                                           Over 4 years experience in research.
     Fund Manager from May 2006 to February 2009                          l   HSBC Asset Management (India) Private Limited
l    Deutsche Equities India Private Limited                                  Assistant Fund Manager from September 2007 to present
     Vice President from August 2002 to April 2006

46                                                                                    Combined Scheme Information Document (SID)
l    Motilal Oswal Securities Limited                                    l   The Scheme shall not invest more than 15% of its NAV in debt
     Analyst from October 2005 to September 2007                             instruments issued by a single issuer, which are rated not below
l    SBI Capital Markets                                                     investment grade by a credit rating agency authorised to carry
     Management Trainee from May 2005 to September 2005                      out such activity under the SEBI Act, 1992. Such investment
                                                                             limit may be extended to 20% of the NAV of the Scheme with
                                                                             the prior approval of the Board of Trustees and the Board of the
Suyash Choudhary,
                                                                             AMC. Provided that, such limit shall not be applicable for
Vice President & Head of Fund Management - Fixed Income                      investments in government securities and money market
30 years                                                                     instruments. Provided further that investment within such limit
PGDM, BA (Hons.) Economics                                                   can be made in mortgage backed securitised debt which are
                                                                             rated not below investment grade by a credit rating agency
Experience:                                                                  registered with SEBI.
Over 8 years experience in research and fund management.
                                                                         l   The Scheme shall not invest more than 10% of its NAV in
l   HSBC Asset Management (India) Private Limited                            unrated debt instruments issued by a single issuer and the total
    Vice President & Head of Fund Management - Fixed                         investment in such instruments shall not exceed 25% of the
    Income from December 2008 onwards                                        NAV of the Scheme. All such investments shall be made with
    Fund Manager from February 2008 to December 2008                         the prior approval of the Board of Trustees and the Board of the
l   Standard Chartered AMC                                                   AMC or a Committee constituted in this behalf.
    Fund Manager from November 2002 to January 2008
                                                                         l   The Fund under all its Schemes shall not own more than 10%
    Manager - Pension Funds from November 2001 to October
                                                                             of any company's paid up capital carrying voting rights.
    2002
l   DB Consulting Group Asia Pacific                                     l   Transfer of investments from one Scheme to another Scheme
    Research Associate from May 2000 to October 2001                         in the Mutual Fund is permitted provided:

Sanjay Shah,                                                                 -    Such transfers are done at the prevailing market price for
                                                                                  quoted instruments on spot basis (spot basis shall have the
Vice President & Fund Manager, Fixed Income                                       same meaning as specified by a Stock Exchange for spot
34 years                                                                          transactions); and
B. Com., A. C. A., PGDM.
                                                                             -    The securities so transferred shall be in conformity with
Experience:                                                                       the investment objective of the Scheme to which such
Over 9 years of experience in research and risk.                                  transfer has been made.
l   HSBC Asset Management (India) Private Limited                        l   The aggregate inter-scheme investment in line with the
    Vice President & Fund Manager, Fixed Income since                        investment objectives, made by all the Schemes under the same
    December 2008 onwards                                                    management or in schemes under management of any other
l   FIL Fund Management Private Limited                                      asset management company shall not exceed 5% of the Net
    Credit Analyst from September 2008 to December 2008                      Asset Value of the Fund. No investment management fees shall
l   Lehman Brothers Structured Financial Services Private                    be charged for investing in other Schemes of the Fund or in the
    Limited                                                                  Schemes of any other Mutual Fund.
    Vice President, Convertible Products from September 2006             l   The Scheme(s) can not charge initial issue expenses and cannot
    to September 2008                                                        amortise the same.
l   Rabo India Finance Private Limited
    Senior Manager - Credit Risk from July 2004 to September             l   The Fund shall get the securities purchased or transferred in the
    2006                                                                     name of the Fund on account of the concerned Scheme, wherever
                                                                             investments are intended to be of a long-term nature.
l   ICICI Bank Limited
    Manager, Credit Risk from January 2003 to June 2004                  l   Every Mutual Fund shall buy and sell securities on the basis of
l   SBI Funds Management Private Limited                                     deliveries and shall in all cases of purchases, take delivery of
    Chief Manager, Debt Funds from June 1999 to January 2003                 relevant securities and in all cases of sale, deliver the securities:

Kedar Karnik,                                                                –    Provided that a mutual fund may engage in short selling
Associate Vice President & Assistant Fund Manager, Fixed Income                   of securities in accordance with the framework relating to
                                                                                  short selling and securities lending and borrowing specified
28 years                                                                          by the Board:
M.M.S. (Finance), B.E.
                                                                             –    Provided further that a mutual fund may enter into
Experience:                                                                       derivatives transactions in a recognized stock exchange,
Over 4 years experience in research and credit rating.                            subject to the framework specified by the Board.
l   HSBC Asset Management (India) Private Limited
    Associate Vice President & Assistant Fund Manager, Fixed             l   Pending deployment of funds of a scheme in terms of investment
    Income from December 2008 onwards                                        objectives of the scheme, a mutual fund may invest them in
    Associate Vice President & Credit Analyst from July 2008                 short-term deposits of scheduled commercial banks, subject to
    to December 2008                                                         such Guidelines as may be specified by the Board. The
                                                                             requirements of SEBI Circulars, SEBI/IMD/CIR No. 1/91171/
l   CRISIL Ltd.                                                              07 dated 16 April, 2007 and SEBI/IMD/CIR No.7/129592/08
    Manager - Financial Sector Ratings from September 2005 to                dated 23 June, 2008 will be adhered to.
    July 2008
l   ICICI Bank Ltd.                                                      l   The Scheme shall not make any investment in:
    Management Trainee from May 2005 to September 2005                       -    Any unlisted security of an associate or group company of
                                                                                  the Sponsor; or
I.   WHAT ARE THE INVESTMENT                                                 -    Any security issued by way of private placement by an
     RESTRICTIONS?                                                                associate or group company of the Sponsor; or the listed
Investment Restrictions for the Scheme(s)                                         securities of group companies of the Sponsor which is in
                                                                                  excess of 25% of the net assets of the Scheme of the
All investments by the Scheme(s) and the Mutual Fund, will always
                                                                                  Mutual Fund.
be within the investment restrictions as specified in the SEBI (Mutual
Funds) Regulations, 1996, as amended from time to time. Pursuant         l   The Scheme shall not invest more than 10% of its NAV in the
to the Regulations, the following investment and other restrictions          equity shares or equity related instruments of any company.
are presently applicable to the Scheme(s):                                   Provided that, the limit of 10 per cent shall not be applicable

HSBC Mutual Fund                                                                                                                              47
     for investments in case of index fund or sector or industry           investing in approved securities or Real Estate Investment Units/
     specific scheme.                                                      securities issued by overseas mutual funds registered with overseas
l    The scheme shall not invest more than 5% of its NAV in the            regulators and investing in approved securities or Real Estate
     unlisted equity shares or equity related instruments in case of       Investment Trusts (REITs) listed in recognized stock exchanges
     open ended scheme and 10% of its NAV in case of close ended           overseas or unlisted overseas securities (not exceeding 10% of their
     scheme.                                                               net assets) subject to the terms and conditions prescribed, subject to
                                                                           maximum of US$ 300 million. This would be revised in terms of
l    The Fund shall not borrow except to meet temporary liquidity          SEBI approvals / guidelines from time to time. All the provisions of
     needs of the Fund for the purpose of repurchase / redemption          SEBI/IMD/CIR No.7/104753/07 dated 26 September, 2007 will be
     of Units or payment of interest and dividend to the Unitholders.      adhered to including appointment of dedicated fund manager for
     Provided that the Fund shall not borrow more than 20% of the          investment in foreign securities.
     net assets of any individual Scheme and the duration of the
     borrowing shall not exceed a period of 6 months.                      It is the Investment Manager's belief that foreign securities offer new
l    The entire Scheme's investments will be in securities, money          investment and portfolio diversification opportunities into multi-market
     markets instruments, privately placed debentures, securitised         and multi-currency products. The Fund would look to invest in foreign
     debt instruments which are either asset backed or mortgage            securities in order to diversify the portfolio in terms of variety of
     backed securities.                                                    instruments held and enhance returns by taking advantage of market
                                                                           movements in global markets, which may or may not be in sync with
l    Debentures, irrespective of any residual maturity period (above       the Indian markets. Investment in foreign securities would only be
     or below 1 year), shall attract the investment restrictions as        looked at if they provide a return, liquidity, ease of settlement and
     applicable for debt instruments as specified under Clause 1 and       valuation, transaction costs better than equivalent local investments.
     1A of the Seventh Schedule to the Regulations or as may be            Hence only if the Fund Manager becomes cautious or negative on the
     specified by SEBI from time to time.                                  Indian markets for a reasonably long period of time, would he consider
l    No loans for any purpose shall be advanced by the Scheme.             investing in such securities. The Fund will look to identify and capture
l    The Fund may lend securities in accordance with the securities        profitable opportunities as and when they arise. However, such
     lending scheme of SEBI.                                               investments also entail additional risks. Such investment opportunities
                                                                           may be pursued by the Investment Manager provided they are considered
l    The Scheme shall not invest in a fund of funds scheme.
                                                                           appropriate in terms of the overall investment objectives of the Scheme.
l    A fund of funds scheme shall be subject to the following              The Scheme may then, if necessary, seek permission from SEBI and
     investment restrictions:                                              RBI to invest abroad in accordance with the investment objectives of
     (a) A fund of funds scheme shall not invest in any other fund         the Scheme and in accordance with any guidelines issued by SEBI /
          of funds scheme;                                                 RBI from time to time.
     (b) A fund of funds scheme shall not invest its assets other than     Since the Scheme would invest only partially in foreign securities,
          in schemes of mutual funds, except to the extent of funds        there may not be readily available and widely accepted benchmarks
          required for meeting the liquidity requirements for the          to measure performance of the Scheme. To manage risks associated
          purpose of repurchases or redemptions, as disclosed.             with foreign currency, the Fund may use derivatives for efficient
l    The Scheme will comply with any other regulations applicable          portfolio management including hedging and in accordance with
     to the investments of mutual funds from time to time.                 conditions as may be stipulated by SEBI / RBI from time to time.
l    Aggregate value of 'illiquid securities' of Scheme, which are         Offshore investments will be made subject to any / all approvals and
     defined as non-traded, thinly traded and unlisted equity shares,      conditions thereof as may be stipulated by SEBI / RBI being fulfilled
     shall not exceed 15% of the total assets of the Scheme. As this       and provided such investments do not result in expenses to the Fund
     percentage is not significant, in the AMC's view, it will have no     in excess of the ceiling, if any, on expenses prescribed by SEBI for
     material impact on the ability to meet redemptions within 10          offshore investment, and if no such ceiling is prescribed by SEBI,
     days of the date the Scheme's units are tendered.                     the expenses to the Scheme(s) shall be limited to the level which, in
The Trustees may alter the above restrictions from time to time to         the opinion of the Trustees, is reasonable and consistent with costs
the extent that changes in the Regulations may allow and as deemed         and expenses attendant to international investing. The Fund may,
fit in the general interest of the Unitholders.                            where necessary, appoint other intermediaries of repute as advisors,
                                                                           sub-custodians, etc. for managing and administering such investments.
It is the responsibility of the AMC to ensure that the investments are     The appointment of such intermediaries shall be in accordance with
made as per the internal / Regulatory guidelines, Scheme investment        the applicable requirements of SEBI and within the permissible
objectives and in the best interest of the Unitholders of the Scheme.      ceilings of expenses. The fees and expenses would illustratively
The Fund may follow internal guidelines as approved by the Board of        include, besides the investment management fees, custody fees and
the AMC and the Trustees from time to time. Internal guidelines shall      costs, fees of appointed advisors and sub-managers, transaction costs
be subject to change and may be amended from time to time in the           and overseas regulatory costs.
best interest of the Unitholders. The amendments will be approved by
the Board of the AMC and the Trustees of the Mutual Fund.                  J. HOW HAS THE SCHEME(S) PERFORMED?:
Policy on Offshore Investments by the Scheme and                                Scheme performance as on 29 April, 2009
the Plans thereunder                                                        HSBC Equity Fund
SEBI Regulations permit mutual funds to invest in certain securities /
                                                                                                             Scheme Returns                             Benchmark Returns
instruments viz. ADRs / GDRs issued by Indian or Foreign companies,
Equity of overseas companies listed on recognized stock exchanges           Last 1 year                          -29.96%                                     -38.18%
overseas, Initial Public Offer (IPO) and Follow on public offerings         Last 3 years                           2.02                                       -3.14%
(FPO) for listing at recognized stock exchanges overseas, Foreign           Last 5 years                          18.12%                                     12.01%
debt securities in the countries with fully convertible currencies, with    Since Inception                      34.82%                                      21.55%
rating not below investment grade by accredited/registered credit
rating agencies, Money market instruments rated not below investment                                       HEF – Growth               BSE 200
grade, Repos - only as pure investment avenues, where the
counterparty is rated not below investment grade; also repos should                     80 –                                               68.34
                                                                                                                                                   62.82
not however, involve any borrowing of funds by mutual funds,                            60 –
Government securities where the countries are rated not below                           40 –                 30.24                                         32.01
                                                                                                                     24.13   11.40 10.20
                                                                                        20 – 0.79                                                                  18.27
investment grade, Derivatives traded on recognized stock exchanges
                                                                                         0–
overseas only for hedging and portfolio balancing with underlying                                 -1.40
                                                                                       -10 –
as securities, Short term deposits with banks overseas where the                       -20 –
issuer is rated not below investment grade, Units/securities issued by                         Apr. 08 -       Apr. 07 -      Apr. 06 -     Apr. 05 -        Apr. 04 -
overseas mutual funds registered with overseas regulators and                                  Mar. 09         Mar. 08        Mar. 07       Mar. 06          Mar. 05




48                                                                                      Combined Scheme Information Document (SID)
 HSBC India Opportunities Fund                                                                               HSBC Emerging Markets Fund
                                           Scheme Returns                                Benchmark Returns                                        Scheme Returns                        Benchmark Returns
 Last 1 year                                   -35.30%                                        -40.07%                                                                                MSCI Emerging Market Index
 Last 3 years                                   -4.78%                                         -4.38%        Last 1 year                              -36.90%                                -37.64%
 Last 5 years                                   16.08%                                         12.11%        Since Inception                          -28.68%                                -27.80%
 Since Inception                               16.43%                                         12.45%
                                                                                                                                                    HEMF - Growth                    MSCI Emerging
                                                                                                                                                    BSE 200                          Market Index
                                 HIOF – Growth                        BSE 500                                                         30 –
           120 –                                                                                                                      20 –
           100 –                                                                                                                      10 –
            80 –                                                         77.24 65.17                                                               1.73 3.69                    0.30
                                                                                                                                                                                         5.15 5.12
            60 –                                                                                                                       0–
                                                                                                                                                      Apr. 08 -                  Since Inception to
            40 –                                                                            35.20                                                     Mar. 09                         Mar. 08
                                            24.25                                                   21.89
            20 –                   16.18               16.00 9.71
                 -2.23 -2.04
             0–
           -10 –                                                                                             HSBC Tax Saver Equity Fund
                  Apr. 08 -         Apr. 07 -           Apr. 06 -          Apr. 05 -           Apr. 04 -
                   Mar. 09          Mar. 08             Mar. 07            Mar. 06             Mar. 05
                                                                                                                                                     Scheme Returns                              Benchmark Returns
                                                                                                             Last 1 year                                 -44.71%                                      -38.18%
                                                                                                             Since Inception                             -18.47%                                       -6.39%
 HSBC Advantage India Fund
                                                                                                                                                                HTSF - Growth                     BSE 200
                                           Scheme Returns                                Benchmark Returns                               30 –
                                                                                                                                                                             24.13
 Last 1 year                                   -40.19%                                        -38.18%
                                                                                                                                         20 –
 Last 3 years                                   -7.44%                                         -3.14%                                                                12.04
 Since Inception                                -2.06%                                          1.45%                                    10 –
                                                                                                                                                                                         -5.90 -6.42
                                                                                                                                             0–
                                     HAIF - Growth                       BSE 200                                                                  -1.77 -1.40
                                                                                                                                        -10 –       Apr. 08 -           Apr. 07 -            Since Inception to
            30 –                                                                                                                                    Mar. 09             Mar. 08                   Mar. 07
                                                    24.13
                                      23.92
            20 –                                                                         12.93 10.41
                                                                         10.20
            10 –                                               3.94
                                                                                                             HSBC Small Cap Fund
                    -2.57 -1.40
             0–                                                                                                                                             Scheme Returns                             Benchmark Returns
           -10 –
                                                                                                             Last 1 year                                        -46.83%                                     -55.14%
                     Apr. 08 -             Apr. 07 -            Apr. 06 -              Since Inception
                     Mar. 09               Mar. 08              Mar. 07                  to Mar. 06          Since Inception                                    -40.38%                                     -40.33%

                                                                                                                                                   HSCF - Growth              BSE Small Cap Index
                                                                                                                                      30 –
                                                                                                                                      20 –                                                     12.83
 HSBC Midcap Equity Fund                                                                                                              10 –
                                                                                                                                                            -11.85                    1.33
                                                                                                                                       0–
                                           Scheme Returns                                Benchmark Returns                           -10 –          -3.40
                                                                                                                                     -20 –
 Last 1 year                                   -47.21%                                        -50.83%                                                 Apr. 08 -                     Since Inception
 Last 3 years                                  -15.37%                                        -14.86%                                                 Mar. 09                         to Mar. 08
 Since Inception                                4.14%                                          2.02%

                                  HMEF - Growth                        BSE Midcap Index

          100 –                                                                        86.38                 HSBC MIP – Regular Plan (RP) and
                                                                                                  64.72
           75 –
                                                                                                             HSBC MIP – Savings Plan (SP)
           50 –
           25 –                      13.51          19.38                                                                                                                     Regular Plan                        Savings Plan
                                                                        0.66
            0–                                                                                               Return for last 1 year                                              4.31%                               1.39%
                                                              -2.47                                          Benchmark returns for last 1 year                                   3.15%                               3.16%
          -10 – -7.39
                        -8.62                                                                                Return for last 3 years                                             7.65%                               7.74%
          -20 –
                  Apr. 08 -                Apr. 07 -                Apr. 06 -          Since Inception       Benchmark returns for last 3 years                                  6.71%                               6.71%
                   Mar. 09                 Mar. 08                  Mar. 07              to Mar. 06          Returns since Inception                                             7.56%                               8.91%
                                                                                                             Benchmark returns since Inception                                   6.86%                               6.86%

                                                                                                                        HMIP – RP               CRISIL MIP                HMIP – SP - Growth            CRISIL MIP
                                                                                                             16 –       - Growth
 HSBC Dynamic Fund
                                                                                                                                                Blended Index                  14.92              14.38 Blended Index
                                                                                                             14 –            12.40 11.88
                                                                                                             12 –                                   11.02                           11.88               11.02
                                           Scheme Returns                                Benchmark Returns   10 –                               9.20
                                                                                                              8–                       6.82                                              7.49
 Last 1 year                                   -34.80%                                        -38.18%         6–                            5.49                                              5.49           5.65
 Since Inception                               -21.27%                                        -23.88%                                                      4.26
                                                                                                              4–                                               2.37                                               2.37
                                                                                                              2–         0.16                                             0.16
                                                                                                                                                                    -2.26
                                                                                                              0 – -0.32
                                      HDF - Growth                          BSE 200                          -2 –
                     10 –                                                                                          Apr. 08 - Apr. 07 - Apr. 06 - Apr. 05 - Apr. 04 - Apr. 08 - Apr. 07 - Apr. 06 - Apr. 05 - Apr. 04 -
                                                                                                                   Mar. 09 Mar. 08 Mar. 07 Mar. 06 Mar. 05 Mar. 09 Mar. 08 Mar. 07 Mar. 06 Mar. 05
                      5–
                      0–
                                            -1.40
                     -5 –          -4.12                                 -3.34
                                                                               -6.68
                    -10 –
                                    Apr. 08 -                         Since Inception to
                                    Mar. 09                                Mar. 08




HSBC Mutual Fund                                                                                                                                                                                                            49
 HSBC Income Fund – Short Term Plan (ST)                                                                        HSBC Floating Rate Fund –
 Return for last 1 year                                                                           10.58%        Short Term Plan (ST) and Long Term Plan (LT)
 Benchmark returns for last 1 year                                                                11.02%                                                                    Long Term Plan                      Short Term Plan
 Return for last 3 years                                                                           8.47%        Return for last 1 year                                                        8.69%                                 7.02%
 Benchmark returns for last 3 years                                                                8.40%        Benchmark returns for last 1 year                                             8.91%                                 8.93%
 Return for last 5 years                                                                           6.92%        Return for last 3 years                                                       8.18%                                 7.41%
 Benchmark returns for last 5 years                                                                6.51%        Benchmark returns for last 3 years                                            7.59%                                 7.59%
 Returns since inception                                                                           6.72%        Returns since Inception                                                       7.24%                                 6.77%
 Benchmark returns since inception                                                                 6.25%        Benchmark returns since Inception                                             6.77%                                 6.77%
                                 HIF – ST                             CRISIL Short Term
                                 (Regular Growth)                     Bond Fund Index                                              HFRF - LT                     HFRF - ST                        CRISIL Liquid Fund Index
                 10 –                  9.65                                                                          10 –
                                             8.84                                                                                              9.04           8.21
                  8–                                                                                                                                  7.50
                                                                                                                      8–                                                    6.79
                                                               5.68                                                                                                  6.58          6.38
                  6–                                    5.02                                                          6–                                                                    5.36                           5.56
                                                                         5.02                                                                                                          5.28      4.82                             4.80
                  4–                                                            3.81 4.10
                        2.37 1.90                                                              3.03                   4–
                                                                                                                                       2.06                                                                    2.11 1.76
                  2–                                                                                                  2 – 1.78 1.09
                  0–                                                                                                  0–
                         Apr. 07 -        Apr. 07 -      Apr. 06 -       Apr. 05 -      Apr. 04 -                            Apr. 08 -            Apr. 07 -              Apr. 06 -           Apr. 05 -          Since Inception
                         Mar. 08          Mar. 08        Mar. 07         Mar. 06        Mar. 05                              Mar. 09              Mar. 08                Mar. 07             Mar. 06               to Mar. 05

 HSBC Income Fund – Investment Plan (IP)                                                                        HSBC Cash Fund
 Return for last 1 year                                                                           13.51%       Return for last 1 year                                                                                        6.73%
 Benchmark returns for last 1 year                                                                10.39%       Benchmark returns for last 1 year                                                                             8.93%
 Return for last 3 years                                                                           9.40%       Return for last 3 years                                                                                       7.18%
 Benchmark returns for last 3 years                                                                7.21%       Benchmark returns for last 3 years                                                                            7.59%
 Return for last 5 years                                                                           6.53%       Return for last 5 years                                                                                       6.33%
 Benchmark returns for last 5 years                                                                5.07%       Benchmark returns for last 5 years                                                                            6.43%
                                                                                                               Returns since Inception                                                                                       6.08%
 Returns since inception                                                                           7.13%       Benchmark returns since Inception                                                                             6.00%
 Benchmark returns since inception                                                                 5.67%
                                                                                                                                                         HCF – Growth                 CRISIL Liquid Fund Index
                               HIF–IP (Regular Growth)      CRISIL Composite                                                     8–                    7.74 7.47
                   12 –              10.34                  Bond Fund Index                                                                                       6.91
                                                                                                                                 7–                                                6.39
                     9–                   8.25
                                                                                                                                 6–                                                        5.35
                     6–                          4.51                                                                                                                                             4.84 4.67
                                                      3.72 3.91 3.33                                                             5–                                                                         4.17
                     3–                                                0.80
                                                                            0.18                                                 4–
                     0–                                                                                                          3–
                               --0.54                                                                                                      2.06
                    -3 –                                                                                                         2 – 1.12
                    -6 –                                                                                                         1–
                         -6.04
                    -9 –                                                                                                         0–
                            Apr. 08 -       Apr. 07 -        Apr. 06 -      Apr. 05 -         Apr. 04 -                                Apr. 08 -         Apr. 07 - Apr. 06 -              Apr. 05 -      Apr. 04 -
                            Mar. 09         Mar. 08          Mar. 07        Mar. 06           Mar. 05                                   Mar. 09          Mar. 08 Mar. 07                  Mar. 06        Mar. 05

 HSBC Ultra Short Term Bond Fund                                                                                HSBC Flexi Debt Fund
 Return for last 1 year                                                                               7.63%    Return for last 1 year                                                                                      16.55%
 Benchmark returns for last 1 year                                                                    8.91%    Benchmark returns for last 1 year                                                                           10.39%
 Returns since inception                                                                              8.03%    Returns Since Inception                                                                                     13.55%
 Benchmark returns since inception                                                                    7.96%    Benchmark returns Since Inception                                                                            8.98%

                                      HUSBF                           CRISIL Liquid                                                                     HFDF                              CRISIL Composite
                                      (Regular Growth)                Fund Index                                                                        (Regular Growth)                  Bond Fund Index
                         10 –                                                                                                                 15 –
                                                   8.38                         8.03
                            8–                                 7.45                    7.96                                                   12 –                                          13.55
                                                                                                                                                8–                                               8.98
                            6–
                                                                                                                                                4–
                            4–                                                                                                                           -6.20
                                          2.06                                                                                                  0–
                            2 – 1.62                                                                                                           -4 –              -0.54
                            0–                                                                                                                 -8 –
                                     Apr. 08 -           Apr. 07 -         Since Inception                                                                   Apr. 08 -                    Since Inception
                                     Mar. 09             Mar. 08              to Mar. 07                                                                     Mar. 09                         to Mar. 08

                                                                                                                HSBC Unique Opportunities Fund
 HSBC Gilt Fund
                                                                                                               Return for last 1 year                                                                                      -44.71%
 Return for last 1 year                                                                           -4.49%       Benchmark returns for last 1 year                                                                           -38.18%
 Benchmark returns for last 1 year                                                                18.49%       Returns Since Inception                                                                                     -18.47%
 Return for last 3 years                                                                           1.48%       Benchmark returns Since Inception                                                                            -6.39%
 Benchmark returns for last 3 years                                                               10.36%
 Return for last 5 years                                                                           2.01%                                              HUOF - Growth                        BSE 200
 Benchmark returns for last 5 years                                                                7.06%                              30 –                         24.13                         24.70
 Returns since inception                                                                           2.09%                              20 –
 Benchmark returns since inception                                                                 7.13%
                                                                                                                                      10 –                       5.55                      7.48
                               HGF - Growth                              I Sec Composit Index                                          0–
                                                                                                                                                    -1.40
       10 –                               9.00                                                                                        -10 – -3.40
                                                             5.95                5.01                                                          Apr. 08 -              Apr. 07 -           Since Inception to
        5–                         4.23               4.86               3.76                        3.38                                      Mar. 09                Mar. 08                  Mar. 07
                                                                                              1.84
        0–                                                                                                    Past performance may or may not be sustained in the future. Returns less than 1 year
       -5 –                                                                                                   are simple annualized. Returns equal to or greater than 1 year are compounded
                       -5.67                                                                                  annualized. 'Since inception' returns are calculated on Rs 10 invested at inception.
      -10 –
                                                                                                              Calculations are based on Growth NAVs.
              -11.58
      -15 –                                                                                                   Note: The Benchmark for HUSBF has been revised from CRISIL Liquid Fund Index
                Apr. 08 -            Apr. 07 -           Apr. 06 -         Apr. 05 -            Apr. 04 -
                Mar. 09              Mar. 08             Mar. 07           Mar. 06              Mar. 05       to a Composite of CRISIL Liquid Fund Index and CRISIL Short Term Bond Fund
                                                                                                              Index with weightage of 90% and 10% respectively w.e.f. May 8, 2009.

50                                                                                                                            Combined Scheme Information Document (SID)
SECTION III - UNITS AND OFFER
This section provides the details you need to know for investing in the Scheme(s).
New Fund Offer, New Fund Offer Period, New Fund Offer Price, Extension / Preponing of the New Fund Offer Period, Minimum
Amount for Application in the NFO, Minimum Target Amount, Maximum Amount to be raised, Allotment & Refund and Special
Products / facilities available during the NFO
These sections are not applicable as there is Continuous Offer of Units of the Scheme(s) at NAV based prices subject to applicable load.

ONGOING OFFER DETAILS
1. Plans / Options / Sub-options offered under the Scheme(s)
The following table details the Plans / Options available in the respective Scheme(s) and their respective dividend frequencies:
Name of Scheme                                                          Frequency of dividend declaration                   Record Date
HSBC Equity Fund                                                        From time to time                                   As may be decided by the Dividend Committee.
HSBC India Opportunities Fund                                           From time to time                                   As may be decided by the Dividend Committee.
HSBC Midcap Equity Fund                                                 From time to time                                   As may be decided by the Dividend Committee.
HSBC Advantage India Fund                                               From time to time                                   As may be decided by the Dividend Committee.
HSBC Tax Saver Equity Fund                                              From time to time                                   As may be decided by the Dividend Committee.
HSBC Unique Opportunities Fund                                          From time to time                                   As may be decided by the Dividend Committee.
HSBC Cash Fund - Regular Option                                         Daily (only reinvestment)                           Daily
HSBC Cash Fund - Regular Option                                         Weekly (only reinvestment)                          Every Friday1
HSBC Cash Fund - Institutional Option                                   Daily (only reinvestment)                           Daily
HSBC Cash Fund - Institutional Option                                   Weekly (only reinvestment)                          Every Friday1
HSBC Cash Fund - Institutional Option                                   Monthly (payout & reinvestment)                     Last working Friday1 of the month
HSBC Cash Fund - Institutional Plus Option                              Daily (only reinvestment)                           Daily
HSBC Cash Fund - Institutional Plus Option                              Weekly (only reinvestment)                          Every Friday1
HSBC Cash Fund - Institutional Plus Option                              Monthly (payout & reinvestment)                     Last working Friday1 of the month
HSBC Income Fund - Short Term Plan - Regular Option                     Weekly (only reinvestment)                          Every Friday1
HSBC Income Fund - Short Term Plan - Regular Option                     Monthly (payout & reinvestment)                     Last working Friday1 of the month
HSBC Income Fund - Short Term Plan - Institutional Option               Weekly (only reinvestment)                          Every Friday1
HSBC Income Fund - Short Term Plan - Institutional Option               Monthly (payout & reinvestment)                     Last working Friday1 of the month
HSBC Income Fund - Short Term Plan - Institutional Plus Option          Weekly (only reinvestment)                          Every Friday1
HSBC Income Fund - Short Term Plan - Institutional Plus Option          Monthly (payout & reinvestment)                     Last working Friday1 of the month
HSBC Income Fund - Investment Plan - Regular Option                     Quarterly (payout & reinvestment)                   The working Friday1 closest to the 15th of the
                                                                                                                            last month of the quarter
HSBC Income Fund - Investment Plan - Institutional Option               Quarterly (payout & reinvestment)                   The working Friday1 closest to the 15th of the
                                                                                                                            last month of the quarter
HSBC MIP - Regular & Savings Plan                                       Monthly (payout & reinvestment)                     Last working Friday1 of the month
HSBC MIP - Regular & Savings Plan                                       Quarterly (payout & reinvestment)                   The working Friday1 closest to the 15th of the
                                                                                                                            last month of the quarter
HSBC Floating Rate Fund - Long Term Plan - Institutional Option         Daily (only reinvestment)                           Daily
HSBC Floating Rate Fund - Long Term Plan - Institutional Option         Weekly                                              Every Friday1
                                                                        Weekly dividend will have dividend payout and
                                                                        re-investment facility. Provided, the unitholders
                                                                        are requested to note that payout of weekly
                                                                        dividend in the said Option is applicable only
                                                                        when the dividend amount is equal to or more
                                                                        than Rs. 1 lakh, otherwise the dividend amount
                                                                        will be re-invested.
HSBC Floating Rate Fund - Long Term Plan - Institutional Option         Fortnightly (only reinvestment)                     Every alternate Friday1
HSBC Floating Rate Long Term Plan - Institutional Option                Monthly (payout / reinvestment)                     Last working Friday1 of the month
HSBC Floating Rate Long Term Plan - Regular Option                      Weekly (only reinvestment)                          Every Friday1
HSBC Floating Rate Long Term Plan - Regular Option                      Monthly (payout / reinvestment)                     Last working Friday1 of the month
HSBC Floating Rate Fund - Short Term Plan - Institutional Plus Option   Daily (only reinvestment)                           Daily
HSBC Floating Rate Fund - Short Term Plan - Institutional Plus Option   Weekly (only reinvestment)                          Every Friday1
HSBC Floating Rate Fund - Short Term Plan - Institutional Plus Option   Monthly (payout & reinvestment)                     Last working Friday1 of the month
HSBC Floating Rate Fund - Short Term Plan - Institutional Option        Daily (only reinvestment)                           Daily
HSBC Floating Rate Fund - Short Term Plan - Institutional Option        Weekly (only reinvestment)                          Every Friday1


HSBC Mutual Fund                                                                                                                                                             51
Name of Scheme                                                     Frequency of dividend declaration                Record Date
HSBC Floating Rate Fund - Short Term Plan - Institutional Option   Monthly (payout / reinvestment)                  Last working Friday1 of the month
HSBC Floating Rate Fund - Short Term Plan - Regular Option         Daily (only reinvestment)                        Daily
HSBC Floating Rate Fund - Short Term Plan - Regular Option         Weekly (only reinvestment)                       Every Friday1
HSBC Gilt Fund                                                     Weekly (only reinvestment)                       Every Friday1
HSBC Gilt Fund                                                     Monthly (payout & reinvestment)                  Last working Friday1 of the month
HSBC Ultra Short Term Bond Fund - Regular Option                   Daily (only reinvestment)                        Daily
HSBC Ultra Short Term Bond Fund - Regular Option                   Weekly (only reinvestment)                       Every Friday1
HSBC Ultra Short Term Bond Fund - Institutional Option             Daily (only reinvestment)                        Daily
HSBC Ultra Short Term Bond Fund - Institutional Option             Weekly (only reinvestment)                       Every Friday1
HSBC Ultra Short Term Bond Fund - Institutional Option             Monthly (payout & reinvestment)                  Last working Friday1 of the month
HSBC Ultra Short Term Bond Fund - Institutional Plus Option        Daily (only reinvestment)                        Daily
HSBC Ultra Short Term Bond Fund - Institutional Plus Option        Weekly (only reinvestment)                       Every Friday1
HSBC Ultra Short Term Bond Fund - Institutional Plus Option        Monthly (payout & reinvestment)                  Last working Friday1 of the month
HSBC Flexi Debt Fund - Regular                                     Fortnightly (only reinvestment)                  Every alternate Friday1
HSBC Flexi Debt Fund - Regular                                     Monthly (payout & reinvestment)                  Last working Friday1 of the month
HSBC Flexi Debt Fund - Institutional                               Fortnightly (only reinvestment)                  Every alternate Friday1
HSBC Flexi Debt Fund - Institutional                               Monthly (payout & reinvestment)                  Last working Friday1of the month
HSBC Flexi Debt Fund - Regular                                     Quarterly (payout & reinvestment)                The working Friday1 closest to the 15th of the last
                                                                                                                    month of the quarter
HSBC Flexi Debt Fund - Regular                                     Half Yearly (payout & reinvestment)              The working Friday1 closest to the 15th of the last
                                                                                                                    month of the half year
HSBC Flexi Debt Fund - Institutional                               Quarterly (payout & reinvestment)                The working Friday1 closest to the 15th of the last
                                                                                                                    month of the quarter (Starting quarter March 2008)
HSBC Flexi Debt Fund - Institutional                               Half Yearly (payout & reinvestment)              The working Friday1 closest to the 15th of the last
                                                                                                                    month of the half year (Starting quarter March 2008)
HSBC Dynamic Fund                                                  From time to time                                As may be decided by the Dividend Committee
HSBC Emerging Markets Fund                                         From time to time                                As may be decided by the Dividend Committee
HSBC Small Cap Fund                                                From time to time                                As may be decided by the Dividend Committee
           1
Notes:         If Friday is a holiday, then the record date shall be the previous Business Day.
           3
               Subject to availability of Distributable Surplus.
In case of Liquid / Debt Scheme(s), the requirement of giving notice                   Indication not made                              Default
regarding the quantum and record date of the dividend in two
newspapers shall not be compulsory for Scheme(s)/ Plan(s)/ Option(s)                   Common to all Schemes
having frequency of dividend distribution from daily up to monthly                     Scheme Name                                      As indicated on the Cheque
dividend.                                                                              Dividend / Growth Option / Sub-options           Growth Option / Sub-option
Under the Growth Option, income earned on the Scheme's corpus                          Dividend Payout / Reinvestment                   Dividend Reinvestment*
will remain invested in the Scheme and will be reflected in the Net
                                                                                       Mode of holding (in cases where there            Joint
Asset Value (NAV). Unit holders who opt for this Option will not
                                                                                       are more than one applicants)
receive any dividend in normal circumstances.
                                                                                       Status of First Applicant (Individual,           Others #
Under the Dividend Option, it is proposed to distribute dividends at                   HUF, Company etc.)
regular intervals, subject to availability of distributable profits, as
computed in accordance with SEBI Regulations. Investors in the                         Scheme Specific
Scheme(s) have the choice of opting for either payout or reinvestment                  HMIP
of dividend, as stated above.                                                          Regular / Savings Plan                           Regular Plan
The Trustees reserve the right of dividend declaration and to change                   Monthly / Quarterly sub-option                   Quarterly sub-option
the frequency, date of declaration and decision of the Trustees in this
                                                                                       HIF
regard shall be final. Dividend shall be distributed subject to
availability of distributable surplus, as computed in accordance with                  Long Term Plan / Short Term Plan                 Short Term Plan
SEBI Regulations. Subsequent to the declaration of dividend, NAV                       Regular / Institutional / Institutional Plus     Based on amount threshold ##
of the Dividend Option and Growth Option will be different.                            Weekly and Monthly dividend sub-                 Weekly Sub-Option
                                                                                       options in Short Term Plan
Investors should indicate the Scheme / Plan and / or Option etc.,
wherever applicable, for which the subscription is made by indicating                  HFRF
the choice in the appropriate box provided for this purpose in the                     Short Term Plan / Long Term Plan                 Short Term Plan
Application Form. In case of valid applications received, without
indicating the Scheme / Plan and / or Option etc. the following                        Regular / Institutional /                        Based on amount
defaults will be flagged off                                                           Institutional Plus Option                        threshold ##
                                                                                       Daily, Weekly and Monthly dividend               Daily Sub-Option
                                                                                       sub-options in Short Term Plan


52                                                                                                     Combined Scheme Information Document (SID)
Indication not made                          Default                               newspaper published in the language of the region where the
                                                                                   Head Office of the Mutual Fund is situated.
Daily,Weekly, Fortnightly and Monthly        Daily Sub-Option
                                                                              3.   Record date shall be the date which will be considered for the
dividend sub-options in Long Term Plan
                                                                                   purpose of determining the eligibility of investors whose names
HCF                                                                                appear on the register of Unit holders for receiving dividends.
HCF- Regular / Institutional /               Based on amount                       (Please refer 'Dividend Option(s)' on page 22-23 for details).
Institutional Plus Option                    threshold ##                          The Record Date will be 5 calendar days from the issue of
                                                                                   notice.
Daily, Weekly and Monthly dividend           Daily sub-option
sub-options                                                                   4.   The notice will, in font size 10, bold, categorically state that
                                                                                   pursuant to payment of dividend, the NAV of the Scheme would
HUSBF
                                                                                   fall to the extent of payout and statutory levy (if applicable).
Regular / Institutional /                    Based on amount
                                                                              5.   The NAV will be adjusted to the extent of dividend distribution
Institutional Plus Option                    threshold ##
                                                                                   and statutory levy, if any, at the close of business hours on
Daily, Weekly and Monthly                    Daily sub-option                      record date.
dividend sub-options
                                                                              6.   Before the issue of such notice, no communication indicating
HGF                                                                                the probable date of dividend declaration in any manner
Weekly and Monthly dividend                  Monthly sub-option                    whatsoever, will be issued by Mutual Fund.
sub-options
                                                                              In case of Liquid / Debt Scheme(s), the requirement of giving notice
HFDF                                                                          regarding the quantum and record date of the dividend in two
Fortnightly, Monthly, Quarterly              Monthly sub-option               newspapers shall not be compulsory for Scheme(s)/ Plan(s)/ Option(s)
and Half Yearly dividend sub-options                                          having frequency of dividend distribution from daily up to monthly
                                                                              dividend.
* In case of HTSF, only dividend payout option is available.
                                                                              The dividend proceeds may be paid by way of dividend warrants /
# Tax rates (including the tax on dividend distribution) wherever             direct credit / EFT / ECS Credit / SEFT / RTGS / Wired Transfer /
applied on 'others' by HSBC Mutual Fund shall be the same as                  any other manner through the investor's bank account specified in
applicable to a Resident Indian Company.                                      the Registrar's records. The AMC, at its discretion at a later date, may
## The minimum amount of subscription as specified for the respective         choose to alter or add other modes of payment. The AMC shall also
Schemes / Plans / Options                                                     appropriately intimate the Unitholders about the dividend
                                                                              announcements / payout / reinvestment within 30 days of the date
For e.g. in case of HSBC Cash Fund:                                           of declaration of dividend.
l    if the amount of subscription is Rs. 5 crores or above - Institutional   3. Who can invest?
     Plus Option
                                                                              This is an indicative list and you are requested to consult your
l    if the amount of subscription is equal to or more than Rs. 50            financial advisor to ascertain whether the scheme(s) are suitable to
     lacs but less than Rs. 5 crores - Institutional Option                   your risk profile.
l    if the amount of subscription is equal to or more than Rs. 1 lac
     but less than Rs. 50 lacs - Regular Option                               The following persons are eligible and may apply for subscription
                                                                              to the Units of the Scheme(s) (subject, wherever relevant, to purchase
2. Dividend Distribution Policy                                               of units of mutual funds being permitted and duly authorised under
The Trustees propose to follow the following dividend distribution            their respective constitutions, charter documents, corporate / other
policy:                                                                       authorisations and relevant statutory provisions etc.):
Declaration of dividend is subject to the availability of distributable       l     Indian resident adult individuals either singly or jointly
surplus. Such dividends if declared, will be paid under normal                l     Karta of Hindu Undivided Family (HUF)
circumstances, only to those Unitholders who have opted for Dividend          l     Minor through parent / lawful guardian
sub-options with specified sub-options. Further, no entry/exit load
shall be charged for units allotted under dividend reinvestment option.       Since the Scheme is a growth oriented investment avenue primarily
                                                                              in equity shares with the objective of long term capital appreciation,
However, it must be distinctly understood that the actual declaration         the following entities may also apply for subscription to the Units
of dividends under the Scheme and the frequency thereof will,                 of HSBC Tax Saver Equity Fund, subject to where relevant, purchase
inter alia, depend upon the distributable surplus of the Scheme. The          of Units being permitted by the respective constitutions, relevant
Trustees reserve the right of dividend declaration and to change the          laws and regulations. These entities, will not, however, qualify for
frequency, date of declaration and the decision of the Trustees in this       tax benefits under Section 80C of Income Tax Act, 1961.
regard shall be final. There is no assurance or guarantee to unit
holders as to the rate of dividend distribution nor that dividend will        l    Companies, bodies corporate, public sector undertakings,
be regularly paid.                                                                 association of persons*, bodies of individuals*, societies
                                                                                   registered under the Societies Registration Act, 1860, mutual
The dividend that may be paid out of the net surplus of the Scheme                 fund schemes (so long as the purchase of units is permitted
will be paid only to those Unitholders whose names appear in the                   under the respective constitutions)
register of Unitholders on the notified record date. The dividend will        l    Religious and Charitable Trusts, Wakfs or endowments of private
be at such rate as may be decided by the AMC in consultation with                  trusts (subject to receipt of necessary approvals as required) and
the Trustees.                                                                      Private Trusts authorised to invest in mutual fund schemes
Dividend Distribution Procedure                                                    under their trust deeds
In accordance with SEBI Circular no. SEBI/ IMD/ Cir. No. 1/ 64057/            l    Partnership Firms
06 dated April 4, 2006, the procedure for Dividend Distribution               l    Banks (including Co-operative Banks and Regional Rural Banks)
would be as under:                                                                 & Financial Institutions
1. Quantum of dividend and the record date will be fixed by the               l    Non-resident Indians (NRIs) / Persons of Indian Origin on full
     Trustee in their meeting. Dividend so decided shall be paid,                  repatriation basis (subject to RBI approval, if required) or on
     subject to availability of distributable surplus.                             non-repatriation basis
2. Within one calendar day of decision by the Trustee, the AMC                l    Foreign Institutional Investors (FIIs) registered with SEBI on
     shall issue notice to the public communicating the decision                   full repatriation basis (subject to RBI approval, if required)
     about the dividend including the record date, in one English
                                                                              l    Army, Air Force, Navy and other para-military funds and eligible
     daily newspaper having nationwide circulation as well as in a

HSBC Mutual Fund                                                                                                                                   53
     institutions                                                          the directive issued by SEBI vide its letters IIMARP/MF/CIR/07/
l     Scientific and Industrial Research Organisations                     826/98 dated April 15, 1998, and IMD/CIR/No. 6/4213/04 dated
                                                                           March 1, 2004, it is mandatory for applicants to mention their bank
l     Provident / Pension / Gratuity and such other Funds as and when      details in their applications for purchase or redemption of units.
      permitted to invest
l     International Multilateral Agencies approved by the Government       It is important for applicants to mention their bank name, bank
      of India / RBI                                                       account number, branch address, account type in their applications
                                                                           for subscription or repurchase of Units. Applications without this
l     Other Schemes of HSBC Mutual Fund subject to the conditions          information shall be rejected.
      and limits prescribed in SEBI Regulations
l     Trustees, AMC or Sponsor or their associates (if eligible and        5. How to apply?
      permitted under prevailing laws), may subscribe to the Units         Please refer to the Statement of Additional Information (SAI) and
      under the Scheme.                                                    Application form for the instructions.
l     There is no restriction on a foreign national from acquiring         6. Listing
      Indian securities provided such Foreign National meets tests         For open-ended schemes
      laid down by the Foreign Exchange Management Act, 1999.
                                                                           Being open ended Scheme(s) under which sale and repurchase of
l     Sale proceeds of securities acquired by a foreign national may       Units will be made on continuous basis by the Mutual Fund, the
      be remitted by him outside India without approval of RBI if: (a)     Units of the Scheme are generally not proposed to be listed on any
      such proceeds are remitted by a foreign national on his retirement   stock exchange. However, the AMC may at its sole discretion, list
      from an employment in India and (b) such proceeds are not in         the Units under the Scheme on one or more stock exchanges at a later
      excess of US $ 1 million in any calendar year. If either (a) and     date, if deemed necessary.
      (b) above is not met, approval of RBI will be necessary for the
      remittance. These requirements originate from the FEMA               For close-ended schemes (HUOF & HSCF)
      Remittance of Assets Regulations, 2000 which restrict a person,      The Regulations require that every close-ended Scheme be listed in
      whether resident in India or not, from making a remittance of        a recognised stock exchange within six months of the closure of the
      any asset ("remittance of asset" includes remittance outside         subscription period unless the Scheme provides for periodic repurchase
      India of funds representing, amongst others, sale proceeds of        facility to all the Unitholders with restriction, if any, on the extent
      shares/securities) held by him or by any other person except         of repurchase; or if the details of such repurchase facility are clearly
      with the approval of RBI or in certain specific cases listed in      disclosed in this Combined Scheme Information Document; or if the
      Regulation 4. One such case is the remittance of upto US $ 1         Scheme opens for repurchase within a period of six months from the
      million by a foreign national on his retiring from employment        closure of the subscription period. Listing of HUOF & HSCF is not
      in India.                                                            currently envisaged. The AMC reserves the right to list the units of
* Please note that AOPs / BOIs who are eligible in terms of the CBDT       the Scheme in future, if deemed necessary.
notification are entitled to tax deduction. Please refer to CBDT           7. The policy regarding reissue of repurchased units, including
notification no. 226/2005 dated 3 November, 2005 for further details.      the maximum extent, the manner of reissue, the entity (the scheme
Note :                                                                     or the AMC) involved in the same:
Subscriptions from residents in the United States of America and           Presently the AMC does not intend to reissue the repurchased units.
Canada shall not be accepted by the Schemes of HSBC Mutual Fund.           The trustee reserves the right to reissue the repurchased units at a
                                                                           later date after issuing adequate public notices and taking approvals,
Investors are requested to note that information will be obtained from     if any, from SEBI.
CVL database and information in the AMC records will be overwritten.
Any discrepancy in the application on account of address or residence      8. Restrictions, if any, on the right to freely retain or dispose
status the application will be rejected and the money will be refunded     of units being offered:
upon confirmation from CVL.                                                Transfer & Transmission of Units
                                                                           As the Scheme stands ready to redeem Units on a continuous basis
The Fund reserves the right to include / exclude new / existing
                                                                           as laid down herein, the transfer facility is found redundant. Units
categories of investors to invest in the Scheme from time to time,
                                                                           of the Scheme shall therefore be non transferable. However, if a
subject to SEBI Regulations and other prevailing statutory regulations,
                                                                           transferee becomes a holder of Units by operation of law including
if any.
                                                                           upon enforcement of a pledge, then the Trustees shall, subject to
Subject to the SEBI (MF) Regulations, any application for Units may        production of such evidence, which in their opinion is sufficient,
be accepted or rejected in the sole and absolute discretion of the         proceed to effect the transfer within 30 days from the date of lodgement
Trustee. The Trustee may inter alia reject any application for the         if the intended transferee is otherwise eligible to hold the Units. A
purchase of Units if the application is invalid or incomplete or if the    person becoming entitled to hold the Units in consequence of the
Trustee for any other reason does not believe that it would be in the      death, insolvency, or winding up of the sole holder or the survivors
best interest of the Scheme or its Unit holders to accept such an          of joint holders, upon producing evidence and documentation to the
application.                                                               satisfaction of the Fund and upon executing suitable indemnities in
                                                                           favour of the Fund and the AMC, shall be registered as a Unitholder.
4. Where can you submit the filled up applications                         It may be noted that the nominee / legal heir is required to provide
Computer Age Management Services Private Limited (CAMS),                   a copy of his / her PAN card as well as fulfil the Know Your Customer
Spencer Plaza, Phase II, S49A, 172, Anna Salai, Chennai 600 002            (KYC) requirements which is a pre-requisite for the transmission
have been appointed as Registrar for the Scheme. The Registrar is          process.
registered with SEBI under registration no. INR000002813. Investors
can also subscribe and redeem units from the official website of           In case of HTSF, unitholders should, however, note that in the event
AMC i.e. www.assetmanagement.hsbc.com/in as and when the AMC               of death of the Unitholder, the legal heir, subject to production of
decides to offer this facility. The applications filled up and duly        requisite documentary evidence, will be able to redeem the investment
signed by the applicants should be submitted at the office of the          only after the completion of one year or anytime thereafter, from the
Collection Centres / ISCs / Official Points of Acceptance, Details of      date of allotment of Units to the deceased Unitholder. Units issued
official points of acceptance of CAMS and Branches of AMC are              under HTSF can be transferred, assigned or pledged after a period
provided on back cover page.                                               of 3 years from the date of allotment.

Bank Account Numbers                                                       Pledge
In order to protect the interest of investors from fraudulent encashment   If in conformity with the guidelines and notifications issued by
of cheques, cheques specify the name of the Unitholder and the bank        SEBI / Government of India / any other regulatory body from time
name and account number where payments are to be credited. As per          to time, Units under the Scheme may be offered as security by way


54                                                                                      Combined Scheme Information Document (SID)
of a pledge / charge in favour of scheduled banks, financial institutions,   In the above eventualities, the time limits indicated above, for
non-banking finance companies (NBFCs), or any other body. In case            processing of requests for purchase, switch and redemption of Units
of HTSF, unitholders should, however, note that the Units issued             will not be applicable. Further, an order to purchase Units is not
under the Scheme can be transferred, assigned or pledged after a             binding on and may be rejected by the Trustees, the AMC or their
period of 3 years from the date of allotment.                                respective agents, until it has been confirmed in writing by the AMC
                                                                             or its agents and payment has been received.
The AMC and / or the ISC will note and record such pledged Units.
A standard form for this purpose is available on request from any            Suspension or restriction of repurchase / redemption facility under
ISC. Disbursement of such loans will be at the entire discretion of          any Scheme(s) / Plan of the Mutual Fund shall be made applicable
the bank / financial institution / NBFC or any other body concerned          only after the approval from the Board of Directors of the AMC and
and the Mutual Fund assumes no responsibility thereof. The Pledgor           the Trustees. The approval from the AMC Board and the Trustees
will not be able to redeem / switch Units that are pledged until the         giving details of circumstances and justification for the proposed
entity to which the Units are pledged provides written authorisation         action shall also be informed to SEBI in advance.
to the Mutual Fund that the pledge / lien charge may be removed.
As long as Units are pledged, the pledgee will have complete authority       HMEF: The Trustees/ AMC reserve the right to temporarily suspend
to redeem such Units.                                                        subscriptions, switches into the Scheme, if the asset under management
                                                                             of the Scheme exceeds Rs. 700 crores. However, as it may not be
The distributions in the nature of dividends which are paid out on           possible to ensure that the assets under management does not exceed
pledged units shall be made in favour of the investor.                       Rs. 700 crores at the point of time of subscription, any excess
                                                                             amounts collected in the Scheme would be retained until the
Right to Limit Redemptions                                                   suspension of subscriptions, switches into the Scheme takes effect.
The Trustees may, in the general interest of the Unitholders of the          The suspension will be for a minimum period of 1 month or until the
Scheme(s) offered under this Combined Scheme Information                     assets under management fall below Rs. 700 crores, due to
Document, and keeping in view the unforeseen circumstances /                 redemptions, market forces or for any other reason, whichever is
unusual market conditions, limit the total number of Units which             later. The suspension will not however affect Dividend reinvestment
may be redeemed on any Business Day to 5% of the total number                options, Systematic Investment Plans, SIP Plus, Systematic Transfer
of Units then in issue, under the Scheme(s) and Plan(s) thereof, or          Plans or other standing instructions which have been entered into by
such other percentage as the Trustees may determine. Any Units,              the investors at any time prior to the date from which the suspension
which by virtue of these limitations are not redeemed on a particular        takes effect. The Trustees/ AMC also reserve the right to review the
Business Day, will be carried forward for redemption to the next             amount, frequency and methodology by which the suspension of
Business Day, in order of receipt. Redemptions so carried forward            further sale of units will be enforced. All decisions of the Trustees/
will be priced on the basis of the Applicable NAV (subject to the            AMC will take effect prospectively and be communicated to the
prevailing load) of the Business Day on which redemption is made.            investors from time to time by arranging to display a notice in the
Under such circumstances, to the extent multiple redemption requests         Investor Service Centres and issuing advertisements in 2 newspapers,
are received at the same time on a single Business Day, redemptions          at least 1 day prior to the decision taking effect. All decisions of the
will be made on pro-rata basis, based on the size of each redemption         Trustees/ AMC will be made in the interest of the investors and will
request, the balance amount being carried forward for redemption to          be subject to the SEBI Regulations.
the next Business Day. In addition, the Trustees reserve the right in
their sole discretion, to limit redemptions with respect to any single       HEMF: The Trustees/ AMC reserve the right to temporarily suspend
account to an amount of Rs. 1 crore (Rupees One Crore Only) in a             subscriptions, switches into the Scheme, if the asset under management
single day.                                                                  of the Scheme exceed the maximum permissible limit as mentioned
                                                                             under the heading on "Policy on Offshore Investments by the
Suspension of Sale / Repurchase / Switch of Units                            Scheme(s) and the Plan(s) thereunder" of this Combined Scheme
The Mutual Fund at its sole discretion reserves the right to withdraw        Information Document.
sale and / or repurchase and / or switch of the Units in the Scheme(s)
(including any one of the Plan of any of the Scheme(s)) temporarily          Freezing / Seizure of Accounts
or indefinitely, if in the opinion of the AMC, the general market            Investors may note that under the following circumstances the Trustee /
conditions are not favourable and / or suitable investment opportunities     AMC may at its sole discretion (and without being responsible and /
are not available for deployment of funds. However, the suspension           or liable in any manner whatsoever) freeze/seize a Unit holder's
of sale / repurchase / switch either temporarily or indefinitely will        account (or deal with the same in the manner the Trustee / AMC is
be with the approval of the Trustees.                                        directed and/or ordered) under the Scheme(s):

The sale / repurchase / switch of the Units may be suspended under           l    Under any requirement of any law or regulations for the time
the following conditions:                                                         being in force.

l    When one or more stock exchanges or markets, which provide              l    Under the direction and/or order (including interim orders) of
     basis for valuation for a substantial portion of the assets of the           any regulatory/statutory authority or any judicial authority or
     Scheme(s) is closed otherwise than for ordinary holidays.                    any quasi-judicial authority or such other competent authority
                                                                                  having the powers to give direction and/or order.
l    When, as a result of political, economic or monetary events or
     any circumstances outside the control of the Trustees and the           9. Sales, Repurchase and Switches of Units on On-going Basis
     AMC, the disposal of the assets of the Scheme(s) is not                 The Units of the Scheme(s) are available for sale, repurchase and
     reasonable, or would not reasonably be practicable without              switch at applicable NAV based prices, subject to prevalent load
     being detrimental to the interests of the Unitholders.                  provisions, if any, on every Business Day.
l    In the event of breakdown in the means of communication used            Sale of Units
     for the valuation of investments of the Scheme(s), without              The Units of the Scheme(s) will be available at the sale price, which
     which the value of the securities of the Scheme(s) cannot be            is based on the Applicable NAV, subject to sales load and subject to
     accurately calculated.                                                  the minimum application amount specifications. Subscriptions on an
l    During periods of extreme volatility of markets, which in the           ongoing basis will be made only by specifying the amount to be
     opinion of the AMC are prejudicial to the interests of the              invested and not the number of Units to be subscribed. The total
     Unitholders of the Scheme(s).                                           number of Units allotted will be determined with reference to the
l    In case of natural calamities, strikes, riots and bandhs.               applicable sale price and fractional Units may be created. Fractional
                                                                             Units will be computed and accounted for up to three decimal places
l    In the event of any force majeure or disaster that affects the          for all Scheme(s). Fractional Units will in no way affect the investor's
     normal functioning of the AMC, ISC or the Registrar.                    ability to redeem Units. The AMC reserves the right to review the
l    If so directed by SEBI.                                                 terms of acceptance of subscription requests and reserves the right


HSBC Mutual Fund                                                                                                                                  55
to change the basis for subscription from amount basis to any other        Stipulated Date(s) for Redemption: Last 3 Business Days of every
basis, subject to the SEBI Regulations.                                    month.
HUOF is a three year close-ended equity scheme with automatic              The repurchase would be permitted to the extent of credit balance
conversion into open ended equity scheme at the end of three years         in the Unitholder's account. The repurchase request can be made by
from the date of allotment of Units. The Scheme will offer Units for       specifying the rupee amount or the number of Units to be repurchased.
sale on every Business Day based on the applicable NAV upon                Repurchase requests can be made for a minimum amount of Rs.1000/-
conversion into open ended scheme at the end of three years from           (Rupees One Thousand Only) and multiples of Re. 1/- (Rupee One
the date of allotment of units.                                            Only) thereafter in case of all the Schemes of HSBC Mutual Fund.
                                                                           However, in case of HFRF-ST & HCF this shall be applicable for
HSCF being a close ended scheme will not be open for ongoing               Regular Options only. In case of Institutional & Institutional Plus
subscriptions / switch ins. The Scheme will offer for sale and             Options, repurchase requests can be made for a minimum amount of
repurchase of units on every Business Day after conversion into open       Rs. 10,000 (Rs. Ten Thousand only) and in multiples of Re. 1/-
ended equity scheme at the end of three years from the date allotment.     (Rupee One Only) thereafter. Where a request for a repurchase is for
The Units of the Scheme shall be available for subscription at             both amount and number of Units, the amount requested for repurchase
applicable NAV based prices thereafter, subject to prevalent load          will be considered as the definitive request.
provisions, if any, on every Business Day.
                                                                           If the balance in the Unitholder's account does not cover the amount
HMEF: The Trustees/ AMC reserve the right to temporarily suspend           of repurchase request, then the Mutual Fund is authorised to close
subscriptions, switches into the Scheme, if the asset under management     the account of the Unitholder and send the entire such (lesser)
of the Scheme exceeds Rs. 700 crores. However, as it may not be            balance to the Unitholder.
possible to ensure that the assets under management does not exceed
Rs. 700 crores at the point of time of subscription, any excess            In case an investor has purchased Units on more than 1 Business Day
amounts collected in the Scheme would be retained until the                (either under the Initial Offer Period or through subsequent purchases),
suspension of subscriptions, switches into the Scheme takes effect.        the Units purchased prior in time (i.e. those Units which have been
The suspension will be for a minimum period of 1 month or until the        held for the longest period of time), will be deemed to have been
assets under management fall below Rs. 700 crores, due to                  redeemed first i.e. on a First-in-First-Out basis.
redemptions, market forces or for any other reason, whichever is
later. The suspension will not however affect Dividend reinvestment        Unitholders may also request for redemption of their entire holding
options, Systematic Investment Plans, SIP Plus, Systematic Transfer        and close the account by indicating the same to the Fund / AMC.
Plans or other standing instructions which have been entered into by       Where however, the Unitholder wishes to redeem Units for a specified
the investors at any time prior to the date from which the suspension      amount, then the amount to be paid on redemption will be divided
takes effect. The Trustees/ AMC also reserve the right to review the       by the redemption price, and the resultant number of Units will be
amount, frequency and methodology by which the suspension of               redeemed.
further sale of units will be enforced. All decisions of the Trustees/
AMC will take effect prospectively and be communicated to the              In case the Units are standing in the names of more than one Unitholder,
investors from time to time by arranging to display a notice in the        where mode of holding is specified as 'Jointly', redemption requests
Investor Service Centres and issuing advertisements in 2 newspapers,       will have to be signed by ALL joint holders. However, in cases of
at least 1 day prior to the decision taking effect. All decisions of the   holding specified as 'Anyone or Survivor', any one of the Unitholders
Trustees/ AMC will be made in the interest of the investors and will       will have the power to make redemption requests, without it being
be subject to the SEBI Regulations.                                        necessary for all the Unitholders to sign. However, in all cases, the
                                                                           proceeds of the redemption will be paid to the first-named holder
HEMF: The Trustees/ AMC reserve the right to temporarily suspend           only.
subscriptions, switches into the Scheme, if the asset under management
of the Scheme exceed the maximum permissible limit as mentioned            The redemption cheque will be issued in favour of the Sole / First
under the heading on "Policy on Offshore Investments by the                Unitholder's registered name and bank account number, and will be
Scheme(s) and the Plan(s) thereunder" of this Combined Scheme              mailed to the registered address of the Sole / First holder as indicated
Information Document.                                                      in the original Application Form. Alternatively, in case of HSBC
                                                                           Floating Rate Fund - Short Term Plan, the Unitholder may arrange
Repurchase of Units                                                        collection of the redemption cheque from the Investor Service Centres.
The repurchase request can be made on a pre-printed form or by such        The Fund may also directly credit the investor's bank account with
other method(s) as may be acceptable to the Fund / AMC from time           the redemption proceeds, in lieu of issue of redemption cheque. The
to time. Such request should be submitted at any of the Investor           redemption cheque will be payable at par at all the places where the
Service Centres / Designated Collection Centres.                           Investor Service Centres are located. The bank charges for collection
                                                                           of cheques at all other places will be borne by the AMC.
HTSF: The Units can be redeemed at the applicable NAV after a
lock-in period of three years from the date of allotment. The Unit         A fresh Account Statement / Transaction Confirmation will be sent
holders shall have the option to switch all or part of their investment    to the redeeming investors, indicating the new balance to the credit
from the Scheme on the expiry of the period of three years from the        in the Account.
date of allotment to any of the other scheme(s) offered by the Fund        The Fund may close a Unitholder's account if as a consequence of
which is/are available for investment at that time.                        a redemption, the balance falls below Rs.1000/-. In case of HTSF,
                                                                           the Fund may close a Unitholder's account if as a consequence of a
HUOF is a three year close-ended equity scheme with automatic              redemption, the balance falls below Rs. 500/-.
conversion into open ended equity scheme at the end of three years
from the date of allotment of Units. The Units can be redeemed/            Further, as Units may not be held by any person in breach of the
switched out at the applicable NAV on every Business Day.                  Regulations, law or requirements of any governmental, statutory
                                                                           authority including, without limitation, Exchange Control Regulations,
HSCF provides repurchase facility on a monthly basis, subject to           the Mutual Fund may mandatorily redeem all the Units of any
provisions of exit load, if any and recovery of balance proportionate      Unitholder where the Units are held by a Unitholder in breach of the
unamortized NFO expenses. The Scheme will offer for sale and               same.
repurchase of units on every Business Day after conversion into open
ended equity scheme at the end of three years from the date allotment.     The Trustees may mandatorily redeem Units of any Unitholder in the
Before maturity, the investors may redeem the units on the Stipulated      event it is found that the Unitholder has submitted information either
Date(s) for Redemption as mentioned below:                                 in the application or otherwise that is false, misleading or incomplete.
                                                                           If a Unitholder makes a redemption request immediately after purchase
Stipulated Date(s) for Redemption:                                         of Units, the Fund shall have a right to withhold the redemption
Maturity Date : 3 Years from the date of allotment                         request till sufficient time has elapsed to ensure that the amount


56                                                                                      Combined Scheme Information Document (SID)
remitted by him (for purchase of Units) is realised and the proceeds         to the capital gains/loss and specific tax implications arising out of
have been credited to the concerned Scheme's Account. However,               switches and redemptions.
this is only applicable if the value of redemption is such that some
or all of the freshly purchased Units may have to be redeemed to             10. Sale Price
effect the full redemption.                                                  This is the price an investor needs to pay for purchase/switch-in.
Switching Options                                                            The sale price of the Units, on an ongoing basis, is based on the
On an on-going basis, the Unitholders have the option to switch all          Applicable NAV. As per SEBI Regulations, an entry load upto a
or part of their investment from one scheme to any of the other              maximum of 7% (for open ended schemes) & 5% (for close-ended
scheme(s) offered by the Fund, which is available for investment at          schemes) may be charged for all subscriptions made under the Plans
that time, subject to prevailing load structure. The Unit holders shall      / Options available under the Scheme(s), provided that the difference
have the option to switch all or part of their investment from HTSF          between the repurchase price and the sale price of the Units shall not
on the expiry of the period of three years from the date of allotment        exceed the permissible limit of 7% (for open ended schemes) & 5%
to any of the other scheme(s) offered by the Fund which is / are             (for close-ended schemes) calculated on the sale price.
available for investment at that time. HUOF & HSCF will be open              The AMC reserves the right to impose different entry loads under the
for on-going switch-ins (applicable upon conversion into open ended          various Plans / Options available under the Scheme(s).
scheme).
                                                                             Sale Price = Applicable NAV * (1 + Entry Load, if any)
Where an investor seeks to move between the dividend and growth
alternatives within an option of the Scheme / Plan, this will not be         Example
construed as a switch. Consequently, no load will apply to such              If the Applicable NAV is Rs.15 and the sales load applicable is 2%,
movements.                                                                   the sales price is calculated as follows:
Investors also have the option of switching between various Plans /          Sales Price = 15 * (1+ 0.02)
Options of the same Scheme. To effect a switch, a Unitholder must                         = 15 * 1.02
provide clear instructions. A request for a switch may be specified
                                                                                          = 15.30
either in terms of amount or in terms of the number of Units of the
Scheme from which the switch is sought. Where a request for switch           11. Repurchase Price
is for both amount and number of Units, the amount requested will            This is the price an investor will receive for redemptions/switch outs.
be considered as the definitive request. Such instructions may be
provided in writing and lodged on any Business Day at any of the             Investors may submit their redemption / switch out request on any
Investor Service Centres / Designated Collection Centres. An Account         Business Day. The redemption will be processed as per the cut off
Statement / Transaction Confirmation reflecting the new holding will         timing and desired amount / units will be redeemed at the Applicable
be despatched to the Unitholders normally within 3 Business Days             NAV on such date after charging applicable Exit Load, if any.
of completion of the switch transaction.                                     While calculating the repurchase price, the Fund shall be at liberty
The switch will be effected by redeeming units from the scheme in            to charge a load as permitted under SEBI Regulations. The Repurchase
which the units are held and investing the net proceeds in the other         Price of the Units as per current SEBI Regulations shall not be lower
Scheme(s) / Plans / Options, subject to the minimum balance,                 than 93% (for open-ended schemes) & 95% (for close-ended schemes)
minimum application amount and subscription / redemption criteria            of the Applicable NAV. The Fund also has the right to charge a
applicable for the respective Scheme(s).                                     different load and therefore a different repurchase price for investors
                                                                             who want to switch over to other eligible Schemes of the Fund.
Valid requests for 'switch out' shall be treated as redemptions and for      The repurchase price of the Units, on an ongoing basis, is based on
'switch in' shall be treated as purchases, after considering any prevalent   the Applicable NAV. As per SEBI Regulations, an exit load upto a
exit and entry loads or a combination thereof for switches.                  maximum of 7% (for open-ended schemes) & 5% (for close-ended
A switch by NRI / FII Unitholders will be subject to the compliance          schemes) may be charged for all redemptions under the Plans /
of procedures and / or final approval of the Reserve Bank of India           Options available under the Scheme(s), provided that the difference
or and any other agency, as may be required.                                 between the repurchase price and the sale price of the Units shall not
                                                                             exceed the permissible limit of 7% (for open-ended Scheme) & 5%
Investors can subscribe to units of HCF/HFRF-ST and give standing            (for close-ended Scheme) calculated on the sale price.
instructions in the same form to switch the funds on a specified future
date to other eligible Scheme(s). The switch-in and switch-out               HUOF being a close-ended scheme, if an investor exits the scheme
Scheme(s) may be enabled by HSBC Mutual Fund / AMC from time                 before amortisation is completed, the AMC shall redeem units only
to time.                                                                     after recovering the balance proportionate unamortised initial issue
                                                                             expenses.
Unitholders can switch funds from HCF/HFRF-ST to any eligible
                                                                             The AMC reserves the right to impose different exit loads under the
NFOs of Scheme(s) of HSBC Mutual Fund, as enabled by the HSBC
                                                                             various Plans / Options available under the Scheme(s).
Mutual Fund / AMC from time to time, by giving auto-switch
instruction from HCF/HFRF-ST to such Scheme(s). For details of               Repurchase Price = Applicable NAV * (1 - Exit Load, if any)
the above facility including switch-in / switch-out Scheme(s) enabled,       Example
please contact the nearest Investor Service Centre.
                                                                             If the Applicable NAV is Rs.15 and the exit load applicable is 0.5%,
In case of switch into Regular Option under HCF by an existing               the repurchase price is calculated as follows:
investor of any Scheme of HSBC Mutual Fund, the minimum
application amount shall be Rs. 25,000/- and the additional investments      Repurchase Price = 15 * (1 - 0.005)
shall be in multiples of Re. 1/-.                                                             = 15 * 0.995
                                                                                              = 14.925
The AMC reserves the right to charge different (including zero) loads
on Applicable NAV on switchover as compared to the sale/repurchase           12. Cut-off timings for subscriptions / redemptions / switch-
as the case may be.                                                               ins / switch-outs
In view of the individual nature of tax impact, each investor is             This is the time before which investors application (complete in all
advised to consult with his or her own tax consultant with respect           respects) should reach the official points of acceptance.




HSBC Mutual Fund                                                                                                                                 57
The cut-off timings for determining applicable NAVs for subscriptions / redemptions / switch-ins / switch-outs to be made at the Investor Service
Centres / Designated Collection Centres (designated as 'Official Points of Acceptance' from time to time) are as per the following table:

Scheme / Plan                                                                 Subscription      Redemption          Switch In      Switch Out
HCF & HFRF-ST                                                                   12.00 noon         3.00 p.m.       12.00 noon         3.00 p.m.
HEF, HIOF, HMEF, HAIF, HMIP, HTSF, HUOF*, HDF, HEMF,                              3.00 p.m.        3.00 p.m.         3.00 p.m.        3.00 p.m.
HSCF**, HIF, HFRF-LT, HUSBF, HGF & HFDF

* HUOF is a three year close-ended equity scheme with automatic conversion into open ended equity scheme at the end of three years from
  the date of allotment of Units. The Scheme will offer Units for sale on every Business Day based on the applicable NAV upon conversion
  into open ended scheme at the end of three years from the date of allotment of units. The Units can be redeemed/ switched out at the applicable
  NAV on every Business Day.
** HSCF is a three year close-ended equity scheme with automatic conversion into open ended equity scheme at the end of three years from
   the date of allotment of Units. The Scheme will offer Units for sale on every Business Day based on the applicable NAV upon conversion
   into open ended scheme at the end of three years from the date of allotment of units. The Units can be redeemed/ switched out at the applicable
   NAV on a monthly basis, subject to provisions of exit load, if any and recovery of balance proportionate unamortized NFO expenses.
In respect of purchase of units in Income / Debt oriented schemes (other than liquid fund schemes and plans) with amount equal to or more
than Rs. 1 crore, irrespective of the time of receipt of application, the closing NAV of the day on which the funds are available for utilisation
shall be applicable.
Where a request for redemption / switch is received after the cut-off time as mentioned above, the request will be deemed to have been received
on the next Business Day.
Applicable NAV for sale of Units
Applicable NAV for HEF, HIOF, HMEF, HAIF, HMIP, HIF, HGF, HFRF-LT, HUSBF, HTSF, HUOF*, HFDF, HEMF & HSCF** :

Particulars                                                                   Applicable NAV
where the application is received upto 3.00 p.m. with a local cheque          the closing NAV of the day of receipt of application
or demand draft payable at par at the place where it is received
where the application is received after 3.00 p.m. with a local cheque         the closing NAV of the next Business Day
or demand draft payable at par at the place where it is received
where the application is received with an outstation cheque or demand         the closing NAV of day on which the cheque or demand draft
draft which is not payable on par at the place where it is received           is credited.
* HUOF is a three year close-ended equity scheme with automatic conversion into open ended equity scheme at the end of three years from
  the date of allotment of Units. The Scheme will offer Units for sale on every Business Day based on the applicable NAV upon conversion
  into open ended scheme at the end of three years from the date of allotment of units. The Units can be redeemed/ switched out at the applicable
  NAV on every Business Day.
** HSCF is a three year close-ended equity scheme with automatic conversion into open ended equity scheme at the end of three years from
   the date of allotment of Units. The Scheme will offer Units for sale on every Business Day based on the applicable NAV upon conversion
   into open ended scheme at the end of three years from the date of allotment of units. The Units can be redeemed/ switched out at the applicable
   NAV on a monthly basis, subject to provisions of exit load, if any and recovery of balance proportionate unamortized NFO expenses.
In respect of purchase of units in Income / Debt oriented schemes (other than liquid fund schemes and plans) with amount equal to or more
than Rs. 1 crore, irrespective of the time of receipt of application, the closing NAV of the day on which the funds are available for utilisation
shall be applicable.
Applicable NAV for HCF and HFRF- ST

Particulars                                                                   Applicable NAV
where the application is received upto 12.00 noon on a day                    the closing NAV of the day immediately preceding the day of
and funds are available for utilization on the same day                       receipt of application
where the application is received after 12.00 noon on a day                   the closing NAV of the day immediately preceding the next
and funds are available for utilization on the same day                       Business Day
irrespective of the time of receipt of application, where the funds           the closing NAV of the day immediately preceding the day on
are not available for utilization on the day of the application               which the funds are available for utilization

The Mutual Fund shall calculate NAV for each calendar day in respect of the above scheme(s) / plan(s).
Explanation: 'Business Day' does not include a day on which the money markets are closed or otherwise not accessible.
Applicable NAV for Repurchase of Units
Applicable NAV for HEF, HIOF, HMEF, HAIF, HMIP, HIF, HGF HFRF-LT, HUSBF, HTSF, HUOF, HFDF, HEMF & HSCF:

Particulars                                                         Applicable NAV
where the application is received upto 3.00 p.m.                    the closing NAV of the day of receipt of application
where the application is received after 3.00 p.m.                   the closing NAV of the next Business Day.



58                                                                                       Combined Scheme Information Document (SID)
Applicable NAV for HCF & HFRF-ST

Particulars                                                          Applicable NAV
where the application is received upto 3.00 p.m.                     the closing NAV of the day immediately preceding the next Business Day
where the application is received after 3.00 p.m.                    The closing NAV of the next Business Day

The Mutual Fund shall calculate NAV for each calendar day in respect of the above scheme(s) / plan(s) and their plans.
Explanation: 'Business Day' does not include a day on which the money markets are closed or otherwise not accessible.
Valid applications for 'switch-out' shall be treated as applications for Redemption and valid applications for 'switch-in' shall be treated as
applications for Purchase, and the provisions of the Cut-off time, purchase/redemption price, minimum amounts for Purchase/Redemption and
the Applicable NAV as applicable to Purchase and Redemption, as mentioned in above paragraph, shall be applied respectively to the 'switch-
in' and 'switch-out' applications.
13. Where can the applications for purchase / redemption / switches be submitted?
The applications filled up and duly signed by the applicants should be submitted at the office of the Collection Centres / ISCs / Official Points
of Acceptance, Details of official points of acceptance of CAMS and Branches of AMC are provided on back cover page. The details of official
points of acceptance, collecting banker etc. are provided on back cover page.
14. Minimum Application / Purchase Amount / Minimum Additional Investment Amount / Minimum Amount for Redemption /
    Switches
The minimum application/purchase amount, the minimum additional investment amount and the minimum amount for Redemption / Switches
under the Scheme(s) / Plan(s) / Option(s) shall be as under:

Scheme                          Minimum                                    Additional                             Minimum Redemption /
                                Application Amount                         investment                             Switch Amount
HSBC Equity Fund                Rs. 10,000/- per application and           Rs. 1,000/- per application and in     Rs. 1,000/- and in multiples
                                in multiples of Re. 1/- thereafter         multiples of Re. 1/- thereafter        of Re. 1/- thereafter
HSBC India                      Rs.10,000/- per application and            Rs. 1,000/- per application and in     Rs. 1,000/- and in multiples
Opportunities Fund              in multiples of Re. 1/- thereafter         multiples of Re. 1/- thereafter        of Re. 1/- thereafter
HSBC Midcap                     Rs.10,000/- per application and            Rs. 1,000/- per application and in     Rs. 1,000/- and in multiples
Equity Fund                     in multiples of Re. 1/- thereafter         multiples of Re. 1/- thereafter        of Re. 1/- thereafter
HSBC Advantage                  Rs.10,000/- per application and            Rs. 1,000/- per application and in     Rs. 1,000/- and in multiples
India Fund                      in multiples of Re. 1/- thereafter         multiples of Re. 1/- thereafter        of Re. 1/- thereafter
HSBC Dynamic                    Rs.10,000/- per application and            Rs. 1,000/- per application and in     Rs. 1,000/- and in multiples
Fund                            in multiples of Re. 1/- thereafter         multiples of Re. 1/- thereafter        of Re. 1/- thereafter
HSBC Emerging                   Rs.10,000/- per application and            Rs. 1,000/- per application and in     Rs. 1,000/- and in multiples
Markets Fund                    in multiples of Re. 1/- thereafter         multiples of Re. 1/- thereafter        of Re. 1/- thereafter
HSBC Tax Saver                  Rs. 500/- per application and in           Rs. 500/- per application and in       Rs. 500/- per application
Equity Fund                     multiples of Rs. 500/- thereafter          multiples of Rs. 500/- thereafter      and in multiples of
                                                                                                                  Rs. 500/- thereafter
HSBC Unique                     Rs.10,000/- per application and in         Rs. 1,000/- per application and in     Rs. 1,000/- and in multiples
Opportunities Fund              multiples of Re. 1/- thereafter            multiples of Re. 1/- thereafter        of Re. 1/- thereafter
HSBC MIP                        Rs. 10,000/- per application and           Rs. 1,000/- per application &          Rs. 1,000/- & in multiples
(Growth Option)                 in multiples of Re. 1/- thereafter         in multiples of Re. 1/- thereafter     of Re. 1/- thereafter
HSBC MIP (Monthly               Rs. 25,000/- per application and           Rs. 1,000/- per application &          Rs. 1,000/- & in multiples
Dividend Option)                in multiples of Re. 1/- thereafter         in multiples of Re. 1/- thereafter     of Re. 1/- thereafter
HSBC MIP (Quarterly             Rs. 10,000/- per application and           Rs. 1,000/- per application &          Rs. 1,000/- & in multiples
Dividend Option)                in multiples of Re. 1/- thereafter         in multiples of Re. 1/- thereafter     of Re. 1/- thereafter
HSBC Income Fund                Rs. 10,000/- per application and           Rs. 1,000/- per application &          Rs. 1,000/- & in multiples
- Investment Plan               in multiples of Re. 1/- thereafter         multiples of Re. 1/- thereafter        of Re. 1/- thereafter
- Regular Option
HSBC Income Fund                Rs. 50,00,000/- per application and        Rs. 10,000/- per application &         Rs. 1,000/- & in multiples
- Investment Plan               in multiples of Re. 1/- thereafter         in multiples of Re. 1/- thereafter     of Re. 1/- thereafter
- Institutional Option
HSBC Income Fund                Rs. 1,00,000/- per application and         Rs. 1,000/- per application &          Rs. 1,000/- & in multiples
- Short Term Plan               in multiples of Re. 1/- thereafter         in multiples of Re. 1/- thereafter     of Re. 1/- thereafter
- Regular Option
HSBC Income Fund                Rs. 1,00,00,000/- per application and      Rs. 10,000/- per application &         Rs. 1,000/- & in multiples
- Short Term Plan               in multiples of Re. 1/- thereafter         in multiples of Re. 1/- thereafter     of Re. 1/- thereafter
- Institutional Option
HSBC Income Fund                Rs. 5,00,00,000/- per application and      Rs. 10,000/- per application &         Rs. 1,000/- & in multiples
- Short Term Plan               in multiples of Re. 1/- thereafter         in multiples of Re. 1/- thereafter     of Re. 1/- thereafter
- Institutional Plus Option



HSBC Mutual Fund                                                                                                                               59
Scheme                           Minimum                                  Additional                             Minimum Redemption /
                                 Application Amount                       investment                             Switch Amount
HSBC Floating Rate               Rs. 10,000/- per application &           Rs. 1,000/- per application &          Rs. 1,000/- & in multiples
Fund - Long Term                 in multiples of Re. 1/- thereafter       in multiples of Re. 1/- thereafter     of Re. 1/- thereafter
Plan - Regular Option
HSBC Floating Rate               Rs. 50,00,000/- per application &        Rs. 10,000/- per application &         Rs. 1,000/- & in multiples
Fund - Long Term Plan            in multiples of Re. 1/- thereafter       in multiples of Re. 1/- thereafter     of Re. 1/- thereafter
- Institutional Option
HSBC Floating Rate               Rs. 1,00,000/- per application &         Rs. 1,000/- per application &          Rs. 1,000/- & in multiples
Fund - Short Term                in multiples of Re. 1/- thereafter       in multiples of Re. 1/- thereafter     of Re. 1/- thereafter
Plan - Regular Option
HSBC Floating Rate               Rs. 50,00,000/- per application &        Rs. 10,000/- per application &         Rs. 10,000/- & in multiples
Fund - Short Term Plan           in multiples of Re. 1/- thereafter       in multiples of Re. 1/- thereafter     of Re. 1/-thereafter
- Institutional Option
HSBC Floating Rate               Rs. 5,00,00,000/- per application &      Rs. 10,000/- per application &         Rs. 10,000/- & in multiples
Fund - Short Term Plan           in multiples of Re. 1/- thereafter       in multiples of Re. 1/- thereafter     of Re. 1/- thereafter
- Institutional Plus Option
HSBC Ultra Short Term     Rs. 10,000/- per application &                  Rs. 1,000/- per application &          Rs. 1,000 & in multiples
Bond Fund -Regular Option in multiples of Re. 1/- thereafter              in multiples of Re. 1/- thereafter     of Re. 1/- thereafter
HSBC Ultra Short                 Rs. 50,00,000/- per application &        Rs. 10,000/- per application &         Rs. 1,000 & in multiples
Term Bond Fund                   in multiples of Re. 1/- thereafter       in multiples of Re. 1/- thereafter     of Re. 1/- thereafter
- Institutional Option
HSBC Ultra Short                 Rs. 5,00,00,000/- per application &      Rs. 10,000/- per application &         Rs. 1,000 & in multiples
Term Bond Fund                   in multiples of Re. 1/- thereafter       in multiples of Re. 1/- thereafter     of Re. 1/- thereafter
- Institutional Plus Option
HSBC Cash Fund                   Rs. 1,00,000/- per application &         Rs. 1,000/- per application &          Rs. 1,000/- & in multiples
- Regular Option*                in multiples of Re. 1/- thereafter       in multiples of Re. 1/- thereafter     of Re. 1/- thereafter
HSBC Cash Fund                   Rs. 50,00,000/- per application &        Rs. 10,000/- per application &         Rs. 10,000/- & in multiples
- Institutional Option           in multiples of Re. 1/- thereafter       in multiples of Re. 1/- thereafter     of Re. 1/- thereafter
HSBC Cash Fund                   Rs. 5,00,00,000/- per application &      Rs. 10,000/- per application &         Rs. 10,000/- & in multiples
- Institutional Plus Option      in multiples of Re. 1/- thereafter       in multiples of Re. 1/- thereafter     of Re. 1/- thereafter
HSBC Gilt Fund                   Rs. 10,000 per application &             Rs. 1,000 & in multiples of            Rs. 1,000 & multiples
                                 in multiples of Re. 1/- thereafter       Re. 1/- thereafter                     of Re. 1 thereafter
HSBC Flexi Debt                  Rs. 10,000/- per application &           Rs. 1,000/- per application &          Rs. 1,000 & in multiples
Fund - Regular Option            multiples of Re. 1 thereafter            multiples of Re. 1 thereafter          of Re. 1/- thereafter
HSBC Flexi Debt Fund             Rs. 50,00,000/- per application &        Rs. 10,000/- per application &         Rs. 1,000 & in multiples
- Institutional Option           in multiples of Re. 1/- thereafter       in multiples of Re. 1/- thereafter     of Re. 1/- thereafter
HSBC Small                       Rs. 10,000/- per application &           Rs. 1,000 per application &            Rs. 1,000 & in multiples
Cap Fund                         in multiples of Re. 1/- thereafter       in multiples of Re. 1/- thereafter     of Re. 1/- thereafter
* In case of switch into Regular Option under HCF by an existing investor of any Scheme of HSBC Mutual Fund, the minimum application
amount shall be Rs. 25,000 and the additional investments shall be in multiples of Re. 1/-.
The AMC reserves the right to change the minimum application/             to invest a fixed amount every month or quarter for purchasing
purchase amount, the minimum additional investment amount and             additional Units of the Scheme(s) at NAV based prices. The
the minimum amount for Redemption / Switches under the Scheme(s)          requirement of 'Minimum Amount for Application' will not be
/ Plan(s) / Option(s) from time to time.                                  applicable in case of SIPs.
15. Minimum balance to be maintained and consequences of                  In case an investor wishes to invest on a monthly basis, the investor
     non maintenance                                                      is required to provide:
The Fund may close the Unitholder's account if as a consequence of        l     at least 12 (6 in case application is processed through non ECS
a redemption/repurchase, the balance falls below the minimum                    locations) post-dated cheques of at least Rs. 1,000 (Rs. One
redemption amount as mentioned above for the respective scheme.                 Thousand) or
In such a case, entire Units to the Unitholder's account will be
redeemed at the Applicable NAV with the applicable Load, if any,          l     one cheque for the first instalment in addition to a mandate form
and the account will be closed. In case of HTSF, the Fund may close             to enable subsequent debits either through Electronic Clearing
a Unitholder's account if as a consequence of a redemption, the                 System (ECS) debit or such other facilities as may be provided
balance falls below Rs. 500/-.                                                  by the AMC for a block of at least 11.

16. Special Products / Facilities available / offered to the investors    In case an investor wishes to invest on a quarterly basis, the investor
    under the scheme(s)                                                   is required to provide:
(1) HSBC Systematic Investment Plan (HSBC SIP) (Applicable                l     at least 4 post-dated cheques of at least Rs. 3,000 (Rs. Three
    to all Schemes and in case of HSCF & HUOF - SIP will be                     Thousand) each, or
    available to the investors only upon conversion into open             l     one cheque for the first instalment in addition to a mandate form
    ended)                                                                      to enable subsequent debits either through Electronic Clearing
Unitholders of the Scheme(s) can benefit by investing specific rupee            System (ECS) debit or such other facilities as may be provided
amounts periodically, for a continuous period. SIP allows the investors         by the AMC for a block of at least 3 balance instalment.

60                                                                                     Combined Scheme Information Document (SID)
Alternatively, the Auto Debit Facility can be used. The Auto Debit           Insurance cover
Facility enable direct debits from the account prescribed by the             The amount of insurance cover will be computed as follows: -
investor in select cities where the facility is available. The cities in
the list may be modified / updated / changed / removed at any time           l    For each eligible SIP transaction, cover is equal to tenure
entirely at the discretion of the AMC without assigning any reason                multiplied by instalment
or prior notice. The AMC reserves the right to withdraw the Auto             l    For each eligible STP transaction, cover is equal to tenure
Debit Facility at any time.                                                       multiplied by instalment
The cheque for the first SIP instalment can carry any date. The first        l    For each eligible lump sum investment in HTSF, cover is equal
instalment of the SIP will be processed subject to applicable NAV                 to amount invested
& load, if any, on the date of receipt of the application form (post-dated   Details of insurance cover
cheque will not be accepted). The second instalment in case of
monthly SIP will be processed on the available SIP date (currently           Under HSBC SIP Plus, the eligible investors will be entitled to
3rd, 10th, 17th or 26th of every month) indicated by the investor, but       Critical Illness Cover provided by ICICI Lombard General Insurance
immediately following the expiry of 25 Business Days from the date           Company Limited ('IL') subject to the terms & conditions detailed
of processing the first SIP. If the choice of date for the second            below. The Critical Illness Cover provided by IL will be under the
instalment is not indicated by the investor, the second instalment of        Master Policy for the Group Term Insurance to be entered into
SIP will be processed on the earliest SIP date (3rd, 10th, 17th or 26th)     between IL and the AMC. A copy of the Master Policy would be
immediately following the expiry of 25 Business Days from the date           available for inspection at the registered office of the AMC. The
of processing the first SIP instalment. In case of quarterly SIP, the        AMC reserves the right to withdraw / modify HSBC SIP Plus
date for next instalment will be 10th of the relevant month. If any          proposition at its discretion.
of above dates fall on a holiday, the transaction will be taken as of        Any change in HSBC SIP Plus Instalment and HSBC SIP Plus
the next Business Day.                                                       Tenure at a later date after enrollment will not be permitted.
The cheques should be drawn in the name of the Scheme or its                 The Critical Illness Cover will cover the following illness:
abbreviation e.g. "HSBC Advantage India Fund" or "HAIF" and
                                                                             Major Organ Transplant                       Cancer
crossed "Account Payee only" and must be payable at the locations
where the applications are submitted at the Investor Service Centres.        End Stage Renal Failure                      Stroke
Outstation cheques will not be accepted and applications accompanied
by such cheques are liable to be rejected. The Mutual Fund may have          Heart Valve Replacement                      Bypass surgery
arrangements with organisations to accept group SIPs whereby the             The Insurance Cover will also cover accidental permanent total
employees of such organisations can opt for a direct deduction from          disability and / or personal accidental death. The maximum sum
their salary and invest in the Scheme of the Mutual Fund in which            insured will being Rs. 10 lakhs per investor, across all his / her
the SIP facility is available. The Mutual Fund will decide the terms         eligible transactions.
and conditions on which such group SIPs would be made available.
                                                                             The investor will be entitled to Critical Illness Cover as under subject
The SIP may be discontinued on a written notice to the Registrar of          to the other terms and conditions. This Critical Illness Cover exclusive
at least 25 Business Days by a unit holder of the Scheme. The AMC            of the market value of the units subscribed to under this HSBC SIP
reserves the right to introduce / discontinue SIP / variants of SIP from     Plus facility by the investor. Please see below illustrations for more
time to time. The AMC reserves the right to have differential load           clarity regarding the amount of insurance cover provided under
structures for investors who opt for the SIP.                                HSBC SIP Plus.
In case of investments under the SIP, if 2 or more consecutive post-         Eg. If an investor has subscribed to a monthly SIP of Rs. 15,000 for
dated cheques / payment instructions provided by the investor are                a period of 5 years i.e. 60 months, the sum insured = 15,000 x
dishonored for either insufficiency of funds or as a result of a stop            60 = Rs. 9,00,000.
payment instruction issued by the investor, the AMC reserves the
right to discontinue the SIP.                                                Eg. If an investor has subscribed to a monthly SIP of Rs. 20,000 for
                                                                                 a period of 5 years i.e. 60 months, the sum insured will be
The AMC reserves the right to introduce / discontinue SIP / variants             Rs. 10,00,000 (Though as per the above formula the insurance
of SIP from time to time. In case of HEMF, the subsequent instalments            cover should be 20,000 x 60 = Rs.12,00,000). This is due to the
of SIP will be stopped from the month in which the subscriptions                 fact that the maximum insurance cover is Rs. 10 Lakhs.
exceed the maximum permissible limit as mentioned under the heading          Eg. In case of lump sum investment of Rs. 50,000/- in HSBC Tax
on "Policy on Offshore Investments by the Scheme(s) and the Plan(s)              Saver Equity Fund, the investor would be provided an insurance
thereunder" of this Combined Scheme Information Document.                        cover of Rs. 50,000 only.
(2) HSBC Systematic Investment Plan Plus (HSBC SIP Plus)                     Eg. In case an investor has the following eligible transactions,
    (applicable to HEF, HIOF, HAIF, HMEF, HTSF, HDF and                          namely
    HEMF)
                                                                                  a)    an SIP of Rs. 10,000 per month for 36 months
HSBC SIP Plus is a product add-on that is available with the main                 b)    an STP of Rs. 15,000 per month for 48 months and
feature to provide insurance cover at no additional cost to the first
holder.                                                                           c)    a lump sum investment of Rs. 50,000 in HTSF

Eligible transactions                                                             then, the insurance cover is computed as follows: -
The following transactions during the specified period are eligible               (i)   10000 * 36 = 3,60,00
for the insurance cover under HSBC SIP Plus. Specified period                     (ii) 15000 * 48 = 7,20,000
means the period during which HSBC SIP Plus is open to investors.
                                                                                  (iii) 50,000
l    Any SIP transaction for a minimum of Rs. 2,000 per month in
     eligible schemes and a minimum tenure of 36 months. Other                    Amount of insurance cover is the total of (i), (ii) and (iii) above
     options on tenure are 48 months and 60 months.                               ie Rs. 11,30,000 but this is restricted to Rs. 10,00,000.

l    Any STP transaction for a minimum of Rs. 2,000 per month in             Who are eligible?
     to eligible schemes and a minimum tenure of 36 months. Other            l  Only individual investors (excluding Non Resident Indian)
     options on tenure are 48 months and 60 months.                             applying singly (first applicant in case of joint applications,
l    Lump sum investment in HSBC Tax Saver Equity Fund provided                 guardian in case of applications from minor and Karta in case
     the amount invested is Rs. 10,000 and above for a period of 36             of applications from HUF) who subscribe to Units of the Eligible
     months.                                                                    Schemes through SIP Plus.


HSBC Mutual Fund                                                                                                                                  61
l    Such investors, at the time of enrolling for SIP Plus, should be     l    In case, the documents are not received from the customer
     (i) at least 20 years of completed age and (ii) less than 50 years        within 3 months of intimation the claim would be closed.
     of age (50 years and 10 months is taken as 50 years completed).           However before closing the claim IL would send a letter to
                                                                               claimant that the claim is closed because of non-receipt of
Product Exclusions:                                                            documents.
Critical Illness
l    Any of the critical illnesses diagnosed within the first three       Load/Expense structure applicable for subscription through
     months of the inception of the cover                                 HSBC SIP Plus
l    Requirement of one month of survival period after initial            Entry Load As per the Scheme Load
     diagnosis.                                                           Exit Load      1% for investments below Rs. 5 crores, if redeemed/
l    Pre-existing diseases are not covered                                               switched out within 2 year from date of investment,
Accidental Death                                                                         otherwise Nil.
l   Due to mental disorder or psychosomatic dysfunction, Suicide          No Exit Load will be charged on the redemption of Units acquired
    and drinking and driving                                              by way of transmission.
Accidental Permanent Total Disability                                     The investor will be charged the applicable Entry/Exit Load and the
l   Any injury, sickness or disease for which medical care, treatment,    annual recurring expenses. Insurance premium for the insurance
    or advice was recommended by or received from a Doctor or             cover provided under the SIP Plus facility would be borne out of
    from which the Insured Person suffered or which was present           recurring expenses, which would be charged to the Scheme within
    before the commencement of the Period of Insurance.                   the overall limit of recurring expenses permitted under SEBI
                                                                          Regulations. No additional charge will be levied on investor on
Effective Date of Commencement of Cover                                   account of the insurance cover.
The effective date of commencement of the insurance cover for an
investor shall be a day after the date on which the first SIP Plus        Change in terms and conditions of SIP Plus
Instalment / Lump sum is accepted for subscription to the Units of        The terms and conditions including but not limited to Entry Load,
the Eligible Scheme(s). In case of non receipt of 'good health'           HSBC SIP Plus Date, HSBC SIP Plus Tenure, Eligible Scheme, etc.,
declaration, the AMC will endeavour to obtain such 'good health'          are subject to change in future. Any such change will not be applicable
declaration from investors and the insurance cover will commence          to Unit Holders whose first HSBC SIP Plus instalment has started,
only a day after receipt of the same. Such insurance cover would          and will be applicable on a prospective basis.
expire on the expiry of the SIP tenure.                                   Consequent to any regulatory change / direction in future, if IL is
Eg. For an investor who enrolls under SIP Plus on 5th October, 2007       unable to provide the Critical Illness Cover, the investors who
    with Rs. 2,000 as the SIP Plus Instalment and the SIP Plus date       subscribe to the Eligible Schemes through SIP Plus subsequent to
    is the 17th of every month, the effective date of commencement        such regulatory change / direction will not be offered Critical Illness
    of the cover shall be 6th October, 2007.                              Cover. In the event of such occurrence, such investors will be intimated
                                                                          of the same.
Termination of Cover
The Critical Illness Cover provided under SIP Plus shall cease on the     Glossary / Definitions:
expiry of the HSBC SIP Plus Tenure. However, the cover shall cease        a. Eligible Scheme
before the expiry of the HSBC SIP Plus Tenure if one of the following     l    HSBC Equity Fund
events occurs:
                                                                          l    HSBC India Opportunities Fund
l    If the investor discontinues the HSBC SIP Plus instalments mid       l    HSBC Midcap Equity Fund
     way
                                                                          l    HSBC Advantage India Fund
l    If the investor defaults on any two consecutive SIP instalments
     or defaults on a total of 4 instalments during the entire tenure     l    HSBC Tax Saver Equity Fund
     of HSBC SIP Plus                                                     l    HSBC Dynamic Fund
l    Payment of personal accident or Disability or critical illness       l    HSBC Emerging Markets Fund
     claims.
                                                                          b. Cancer
l    In case of fraud, misrepresentation etc.
                                                                          A disease manifested by the presence of a malignant tumour
l    Any claim due to violation of law                                    characterized by the uncontrolled growth and spread of malignant
l    With respect to Lump sum Investment in HTSF, upon the expiry         cells, and the invasion of tissue. The term cancer also includes
     of 3 years from the date of investment.                              leukemia and malignant disease of the lymphatic system such as
                                                                          Hodgkin's but excludes:
Once the insurance cover ceases, no subsequent reinstatement of the
cover shall be allowed.                                                   l    All tumour which are histologically described as pre-malignant,
                                                                               non-invasive or carcinoma in situ.
Disbursement of Insurance Claim
                                                                          l    Any malignant tumour in the presence of any Human Immuno-
l   The claim should be made within 90 days of the event happening.            deficiency virus.
l    Investor / investor's nominee (legal heir in absence of nominee)     l    Any skin cancer other than invasive malignant melanoma
     to intimate IL in case of any claim. For policy details or for            (starting with Clark Level III)
     lodging a claim, you may call at (+91 22) 2830 7711 in Mumbai
     or at (+91) 9890017877 in rest of Maharashtra. For numbers in        l    Prostate cancer stage
     other states, please visit the website www.icicilombard.com          l    Hodgkin's Disease stage I
l    IL will intimate the claimant about the documents requirement        c. Coronary Artery By Pass Graft Surgery
     and will collect the same.
                                                                          The undergoing of open heart surgery to correct the narrowing or
l    In case of incomplete documents, IL will writes back to the          blockage of one of more coronary arteries with by-pass grafts
     claimant regarding the pending documents.                            (excluding balloon angioplasty, or any other intra-arterial procedures),
l    IL to decide the admissibility of any claim after receiving the      provided that:
     documents and investigation report, if applicable.                   l    This is done on the advice of a Doctor, and
l    On admissibility, the payment will be made. The payment will         l    Coronary angiographic evidence supporting the necessity of the
     be made within 7 days of receipt of all complete documents.               surgery is provided to the Company.


62                                                                                     Combined Scheme Information Document (SID)
d. Major Organ Transplant                                                  respective Options/sub-options within 30 days from the date on
Receipt by way of transplant of a heart, liver, lung, pancreas, kidney     which a written intimation in this regard is sent to the Unitholder.
or bone marrow as a result of chronic irreversible failure of the          The SEP may be terminated or modified on a written notice to the
Insured's own, provided that                                               Registrar of at least 14 days by a Unitholder of the Scheme and it
l    Evidence of end stage kidney disease is provided to the Company,      will terminate automatically if all Units are liquidated or withdrawn
     and                                                                   from the account by the Unitholder.
l    A Doctor confirms the requirement for transplantation                 Under SEP investors can opt for withdrawal of a Fixed Amount or
e. Stroke                                                                  the Capital Appreciation on their investment.
Any cerebrovascular incident producing neurological sequeale lasting       Under the Fixed Amount Option, the investor specifies the fixed
more than 24 hours and including infarction of brain tissue,               amount that he would like to receive on a regular basis irrespective
hemorrhage and embolisation from an extracranial source. Evidence          of the gain / loss on the Fund in the specified period. The minimum
of neurological deficit for at least 3 months has to be produced.          amount which the Unitholder can withdraw is Rs. 1,000/- (Rupees
f. Heart Valve Replacement Surgery                                         One Thousand Only) and in multiples of Re.1 (Rupee One Only)
Surgical replacement of one or more heart valves with prosthetic           thereafter.
valves. This includes the replacement of aortic, mitral, pulmonary or      The Capital Appreciation Option allows the automatic redemption
tricuspid valves with prosthetic valves due to stenosis or incompetence    of the incremental amount i.e. appreciation on the original investment.
or a combination of these factors. Heart valve repair, valvulotomy         For example, if the appreciation on the initial investment in a period
and valvuloplasty are excluded.                                            is Rs. 5,000/- and Rs. 4,500/- in the next period, then the investor
g. End Stage Renal Failure                                                 would receive only the appreciation i.e. Rs. 5,000/- and Rs. 4,500/-
End stage renal failure presenting as chronic irreversible failure of      in the respective periods. Unitholders should note that in the event
both the kidneys to function, as a result of which either regular renal    of there being no capital appreciation, no withdrawal / payment
dialysis (hemodialysis or peritoneal dialysis) or renal transplant is      would be effected.
required to be taken, provided that:                                       The AMC reserves the right to introduce / discontinue SEP from time
l    Evidence of end stage kidney disease is provided to the Company,      to time. The AMC reserves the right to have differential load structures
     and                                                                   for investors who opt for the SEP.
l    A Doctor confirms the requirement for dialysis or transplantation.    (4) Systematic Transfer Plan (STP) - (Applicable to all Schemes
h.   Accidental Permanent Total Disablement is defined as any                    and in case of HSCF & HUOF - STP will be available to the
     one of the following happening to the insured                               investors only upon conversion into open ended scheme)
l    Sight of both eyes, / the actual loss by physical separation of       Unitholders of the Scheme can benefit by transferring specific rupee
     two entire hands - two entire feet,/ one entire hand & one entire     amounts periodically, for a continuous period. STP allows the investors
     foot/ of such loss of sight of one eye and such loss of one entire    to transfer a fixed amount every month to a particular Scheme at
     hand or one entire foot or                                            NAV based prices. Investors can opt for the Systematic Transfer Plan
                                                                           by investing a lump sum amount in the HSBC Income Fund, HSBC
l    Use of two hands or two feet, or of one hand and one foot, or
                                                                           Cash Fund, HSBC MIP, HSBC Floating Rate Fund, HSBC Ultra
     of loss of sight of one eye and loss of use of one hand or one
                                                                           Short Term Bond Fund, HSBC Gilt Fund & HSBC Flexi Debt Fund
     foot, or
                                                                           and providing a standing instruction to transfer sums at monthly
l    The sight of one eye, or of the actual loss by physicalseparation     intervals (for a minimum period of 3 months) into Equity Schemes
     of one entire hand or one entire foot, then fifty per cent (50%)      of HSBC Mutual Fund. Investors could also opt for STP from an
     or                                                                    existing account by quoting their account / folio number. Investors
l    Total and irrecoverable loss of use of a hand or a foot without       could choose to specify the fixed sum to be transferred every month.
     physical separation then fifty per cent (50%)                         Alternatively, in the Growth Sub-Options under the Regular,
                                                                           Institutional and Institutional Plus Options of HSBC Cash Fund and
i.   Event: Death in case of accident or diagnosis of disease or total
                                                                           HSBC Floating Rate Fund Short Term Plan, investors could opt to
     disability due to accident.
                                                                           automatically transfer the capital appreciation (between the
In case of HEMF, the subsequent instalments of HSBC SIP Plus will          immediately preceding STP date and the present STP date) in the
be stopped from the month in which the subscriptions exceed the            value of their investments to Equity Schemes of HSBC Mutual Fund.
maximum permissible limit as mentioned under the heading on
"Policy on Offshore Investments by the Scheme(s) and the Plan(s)           Transfers would be effected on the available STP date (currently 3rd,
thereunder" of this Combined Scheme Information Document.                  10th, 17th or 26th of every month) indicated by the investor. If these
                                                                           dates fall on a holiday, the transaction will be effected as of the next
(3) Systematic Encashment Plan (SEP) (Applicable to all                    Business Day. Transfers must be for a minimum amount of Rs.1,000/-
      Schemes and in case of HSCF & HUOF - SEP will be available           per month. In case of STP if the choice of date for the installment
      to the investors only upon conversion into open ended)               is not indicated by the investor, the installment of STP will be
Unitholders have the benefit of enrolling themselves under the             processed on the next earliest STP date (3rd, 10th, 17th or 26th).
Systematic Encashment Plan. The SEP allows the Unitholder to               Transfers must be for a minimum amount of Rs.1,000/- in case of
withdraw sums of money each month / quarter from his investments           STPs where a fixed sum is specified to be transferred every month.
in the Scheme. SEP is ideal for Unitholders seeking a regular inflow       Kindly note that STP will come into effect within 10 days from the
of funds for their needs in a tax efficient manner. It is also suited to   date of receipt of application.
retired persons or individuals who wish to invest a lump sum and
withdraw from the investment over a period of time. Investors can          The STP may be discontinued on a written notice to the Registrar of
opt for either monthly or quarterly withdrawals. The Unitholder may        at least 14 days by a unit holder of the Scheme. The AMC reserves
avail of this Plan by sending a written request to the Registrar.          the right to introduce / discontinue STP / variants of STP from time
                                                                           to time. The AMC reserves the right to have differential load structures
The amount thus withdrawn by redemption will be converted into             for investors who opt for the STP.
Units at the Applicable NAV based prices and the number of Units
so arrived at will be subtracted from the Units balance to the credit      In case of HEMF, the subsequent instalments of STPs will be stopped
of that Unitholder. The SEP transaction will be on the first Business      from the month in which the subscriptions exceed the maximum
Day of every month, quarter and the payout will be as per the payout       permissible limit as mentioned under the heading on "Policy on
schedule of the respective Scheme(s). The Fund may close a                 Offshore Investments by the Scheme(s) and the Plan(s) thereunder"
Unitholder's account if the balance falls below Rs. 1,000/- in the         of this Combined Scheme Information Document.


HSBC Mutual Fund                                                                                                                                63
17. Account Statements                                                    The Account Statement shall not be construed as a proof of title and
For normal transactions (other than SIP/STP/SEP) during ongoing           is only a computer-printed statement indicating the details of
sales and repurchase:                                                     transactions under the Scheme.

l    The AMC shall issue to the investor whose application (other         For Dividends paid out, investors will receive a transaction advice
     than SIP/STP/SEP) has been accepted, an account statement            in case of dividends paid along with instrument, where applicable.
     specifying the number of units allotted.                             The Unitholders can also obtain an Account Statement on request
                                                                          from any of the ISCs.
     An account statement will be sent by ordinary post / courier /       The Account Statement is a record of the transaction in the scheme
     e-mail to each Unitholder, stating the number of units allotted,     of HSBC Mutual Fund. Investors are requested to review the account
     as soon as possible, but not later than 30 days from date of         statement carefully and contact their nearest Investor Service Centre
     receipt of request from the unitholder. Under normal                 in case of any discrepancy.
     circumstances, the AMC shall endeavour to despatch the account
     statement within 3 business days from the date of receipt of         All Units will rank pari passu among Units within the same Option /
     request from the unitholder. An Account Statement reflecting         Sub-Option, i.e. either the Dividend Sub-Option or the Growth Sub-
     the net balance of the Unitholder will under normal circumstances    Option, as to assets, earnings and the receipt of dividend distributions,
     be mailed to the Unitholder by ordinary post / courier after         if any, as may be declared by the Trustees. Allotment of Units and
     every purchase, redemption and switch transaction is effected,       despatch of Account Statements to NRIs / FIIs will be subject to
     except in exceptional circumstances The Fund reserves the right      RBI's general permission dated 30 March, 1999 to mutual funds, in
     to reverse the transaction of crediting units in the Unitholder's    terms of Notification no. FERA.195/99-RB or such other notifications,
     account, in the event of non-realisation of any cheque or other      guidelines issued by RBI from time to time.
     instrument remitted by the investor. The Unit balance shown on       In the event an account has more than one registered owner, the first-
     the account statement is subject to realisation of cheque,           named holder (as determined by reference to the original Application
     fulfilment of regulatory requirements, fulfilment of requirements    Form) shall receive all Account Statements, notices and
     of the Combined Scheme Information Document(s) /                     correspondence with respect to the account, as well as the proceeds
     Addendum(s) and furnishing necessary information to the              of any redemption requests or dividends or other distributions.
     satisfaction of the Mutual Fund.
                                                                          Receiving Account Statement / Correspondence by e-mail
l    For those unitholders who have provided an e-mail address, the       The Mutual Fund will encourage the investors to provide their e-mail
     AMC will send the account statement by e-mail at the e-mail          addresses for all correspondence. The Mutual Fund's website may
     address provided by the Unit Holder. Further please refer            facilitate request for Account Statement by Unitholders. The Mutual
     "Receiving Account Statement / Correspondence by e-mail"             Fund will endeavour to send Account Statements and any other
     mentioned below.                                                     correspondence including Annual Reports using e-mail as the mode
l    The unitholder may request for a physical account statement by       for communication as may be decided from time to time.
     writing/calling the AMC/ISC/R&T. Further please refer                The Unitholder will be required to download and print the Account
     "Receiving Account Statement / Correspondence by e-mail"             Statement after receiving the e-mail from the Mutual Fund. Should
     mentioned below.                                                     the Unitholder experience any difficulty in accessing the electronically
For SIP / STP / SEP transactions;                                         delivered Account Statement, the Unitholder shall promptly advise
                                                                          the Mutual Fund to enable the Mutual Fund to make the delivery
l   Account Statement for SIP / STP / SEP transactions will be            through alternate means. Failure to advise the Mutual Fund of such
    despatched once every quarter ending March, June, September           difficulty within 24 hours after receiving the e-mail will serve as an
    and December within 10 working days of the end of the respective      affirmation regarding the acceptance by the Unitholder of the Account
    quarter.                                                              Statement.
l    A soft copy of the Account Statement shall be mailed to the          In case an investor who has provided an e-mail address and opted
     investors under SIP/STP/SEP to the e-mail address provided by        for electronic mode of receipt of account statements and other updates
     the Unit Holder on a monthly basis, if so mandated.                  wishes to change over to the physical mode, he would need to
l    However, the first Account Statement under SIP/STP/SEP shall         provide a written request to any of our official points of acceptance.
     be issued within 10 working days of the initial investment/          Please note that such a request will be treated as a non financial
     transfer / withdrawal.                                               transaction and processed within 3 - 5 Business Days from the date
                                                                          of submission.
l    In case of specific request received from investors, Mutual
     Funds shall provide the account statement (SIP/STP/SEP) to the       It is deemed that the Unitholder is aware of all security risks including
     investors within 5 working days from the receipt of such request     possible third party interception of the Account Statements and
     without any charges.                                                 content of the Account Statements becoming known to third parties.
                                                                          Under no circumstances, including negligence, shall the Mutual
Annual Account Statement:                                                 Fund or anyone involved in creating, producing, delivering or
l  The Mutual Funds shall provide the Account Statement to the            managing the Account Statements of the Unitholders, be liable for
   Unitholders who have not transacted during the last six months         any direct, indirect, incidental, special or consequential damages that
   prior to the date of generation of account statements. The Account     may result from the use of or inability to use the service or out of
   Statement shall reflect the latest closing balance and value of        the breach of any warranty. The use and storage of any information
   the Units prior to the date of generation of the account statement.    including, without limitation, the password, account information,
l    The account statements in such cases may be generated and            transaction activity, account balances and any other information
     issued along with the Portfolio Statement or Annual Report of        available on the Unitholder's personal computer is at the risk and sole
     the Scheme(s).                                                       responsibility of the Unitholder.
l    Alternately, soft copy of the account statements shall be mailed     18. Dividends and Distributions
     to the investors' e-mail address, instead of physical statement,     The dividend warrants shall be dispatched to the unitholders within
     if so mandated.                                                      30 days of the date of declaration of the dividend. The dividend
                                                                          proceeds may be paid by way of dividend warrants / direct credit /
As units of the Scheme will be non-transferable, the Account
                                                                          EFT / ECS Credit / SEFT / RTGS / Wired Transfer / any other manner
Statements shall be non-transferable. If the Unitholder so desires,
                                                                          through the investor's bank account specified in the Registrar's records.
non-transferable unit certificates will be issued within 30 days of the
                                                                          The AMC, at its discretion at a later date, may choose to alter or add
receipt of request for the certificate.
                                                                          other modes of payment. The AMC shall also appropriately intimate




64                                                                                     Combined Scheme Information Document (SID)
the Unitholders about the dividend announcements / payout /              of Association of Mutual Funds in India - AMFI (www.amfiindia.com)
reinvestment within 30 days of the date of declaration of dividend.      and the Fund website (www.assetmanagement.hsbc.com/in) latest
19. Redemption / Repurchase proceeds                                     by 10.00 a.m. on the next Business Day, due to differences in the time
                                                                         zones. However, the AMC will endeavour to update the NAVs on the
As per the Regulations, the Fund shall despatch the redemption /         above websites daily by 9.00 p.m. on every Business Day. In case
repurchase proceeds within 10 Business Days from the date of             of any delay, the reasons for such delay would be explained to AMFI
acceptance of redemption request at any of the Investor Service          by the next day. If the NAVs are not available before commencement
Centres. Under normal circumstances, the Fund will endeavour to          of business hours on the following day due to any reason, the Fund
despatch the redemption proceeds within 3 Business Days (in case         shall issue a press release providing reasons and explaining when the
of equity schemes except HEMF), 7 Business Days (in case of              Fund would be able to publish the NAVs. The NAVs will be determined
HEMF) & 1 Business Day (in case of debt schemes) from the date           on every Business Day (on weekly basis in case of HSCF), except
of receiving a valid redemption request.                                 under special circumstances specified in this Combined Scheme
NRIs / FIIs                                                              Information Document.
The Foreign Exchange Management (Transfer or Issue of Security           Impact of overseas investment in the fund for NAV Calculations
by a Person Resident Outside India) Regulations, 2000 (the "FEMA         (Applicable for HEMF)
Regulations") permit a NRI to purchase on repatriation or non-           HEMF intends to invest its assets in to overseas securities / units of
repatriation basis, without limit, units of domestic mutual funds.       issued by overseas mutual funds or unit trusts. For instance, if HEMF
Payment for such units must be made either by: (i) inward remittance     invests in HSBC GEM Equity Fund (GEM Fund) the impact of the
through normal banking channels; or (ii) out of funds held in the        NAV of HEMF is illustrated below. It also demonstrates the inclusion
NRE / FCNR account, in the case of purchases on a repatriation basis     of the NAV of the GEM fund into HEMF.
or out of funds held in the NRE / FCNR / NRO account, in the case
of purchases on a non-repatriation basis.                                Example
The FEMA Regulations also permit a registered FII to purchase, on        Collections at NFO                               A    100,000,000.00
repatriation basis, units of domestic mutual funds provided the FII      Purchase Price                                   B            10.225
restricts allocation of its total investment between equity and debt
                                                                         Units allotted to domestic
instruments in the ratio as applicable at the time of invetsments.
                                                                         investors                         A/B            C      9,779,951.10
Payment by the FII must be made either by inward remittance
through normal banking channels or out of funds held in foreign          Collection Invested overseas                     D     90,000,000.00
currency account or non resident rupee account maintained by the         Exchange Rate (Rs/USD)                           E             41.25
FII with a designated branch of an authorised dealer with the approval   Amount in USD                     D/E            F      2,181,818.18
of the RBI in terms of paragraph 2 of Schedule 2 to the FEMA
                                                                         NAV of Overseas Fund (USD)                       G             11.75
Regulations.
                                                                         Units allotted in the
Redemption by NRIs / FIIs                                                overseas fund                     F/G            H       185,686.654
Units held by an NRI investor and FIIs may be redeemed by such           Amount invested locally in
investor by tendering Units to the Mutual Fund or for payment of         Money market fund                 A-D             I    10,000,000.00
maturity proceeds, subject to any procedures laid down by RBI from
                                                                         Yield on domestic investment                     J               6%
time to time. The Fund will not be liable for any delays or for any
loss on account of any exchange fluctuations, while converting the       Expense ratio                                    K            1.25%
rupee amount in foreign exchange in the case of transactions with        AUM after one month
NRIs / FIIs. Provisions with respect to NRIs / FIIs stated above, is     Domestic Component                I + Interest
as per the AMC's understanding of the laws currently prevalent in                                          in I  L              10,049,315.07
India.
                                                                         NAV of the Overseas Fund                M                 USD 12.13
20. Delay in payment of redemption / repurchase proceeds                 Exchange Rate (Rs/USD)                  N                      42.10
In the event of failure to despatch the redemption proceeds within       Overseas Component                HxMxN O              94,825,160.66
the above time, the Asset Management Company shall be liable to
                                                                         Expenses (for one month)                P                 107,747.75
pay interest to the unitholders at such rate as may be specified by
SEBI for the period of such delay (presently @ 15% per annum).           AUM after one month               L+O-P Q             104,766,727.98
                                                                         NAV                               Q/C   R                    10.7124
B. PERIODIC DISCLOSURES
1. Net Asset Value                                                       2. Half yearly Disclosures: Portfolio / Financial Results
This is the value per unit of the scheme(s) on a particular day. You     This is a list of securities where the corpus of the scheme is currently
can ascertain the value of your investments by multiplying the NAV       invested. The market value of these investments is also stated in
with your unit balance.                                                  portfolio disclosures.
The NAVs of the respective Scheme(s) / Plan(s) / Option(s) will be       As presently required by the SEBI Regulations, the Fund shall before
calculated and published by the Fund for every Business Day. The         the expiry of 1 month from the close of each half year, that is as on
Unitholders may obtain the information on NAVs of any day by             31 March and 30 September, publish its unaudited financial results
calling the office of the AMC or any of the Investor Service Centres     in one English daily newspaper circulating in the whole of India and
or on the website of the AMC at www.assetmanagement.hsbc.com/in.         in a newspaper published in the language of the region where the
The Fund will publish the NAVs, Purchase Price and Redemption            Head Office of the Fund is situated and update the same on the Fund's
Price of the Scheme in at least two daily newspapers on all Business     website at www.assetmanagement.hsbc.com/in and on AMFI's website
Days.                                                                    at www.amfiindia.com, within 1 month from the close of each half
                                                                         year, in the formats as prescribed by SEBI.
The AMC shall update the NAVs on the website of Association of           The Fund shall before the expiry of 1 month from the close of each
Mutual Funds in India - AMFI (www.amfiindia.com) and the Fund            half year (31 March and 30 September) send to the Unitholders a
website (www.assetmanagement.hsbc.com/in) by 9.00 p.m. on every          complete statement of the Scheme's portfolios or if such statement
Business Day. In case of HSCF, the AMC shall update the                  is not sent to the Unitholders, it will be published by way of an
NAVs on the website of Association of Mutual Funds in                    advertisement in one English daily newspaper circulating in the
India - AMFI (www.amfiindia.com) and the Fund website                    whole of India and in a newspaper published in the language of the
(www.assetmanagement.hsbc.com/in) by 9.00 p.m. at least once a           region where the Head Office of the Mutual Fund is situated. The
week ie on every Wednesday and during the period of redemption.          Scheme's portfolios shall also be displayed on the Fund's website at
In case of HEMF, the AMC shall update the NAVs on the websites           www.assetmanagement.hsbc.com/in, within 1 month from the close


HSBC Mutual Fund                                                                                                                              65
of each half year. The statement shall be in the format as prescribed     dividends distributed by mutual funds are tax free in the hands of the
by SEBI.                                                                  investor. Any additional tax liability due to demand raised on the
3. Half yearly Results                                                    fund by the IT authorities and deemed payable would be borne by
                                                                          the scheme. Any additional tax liability due to demand raised on the
The Mutual Fund and Asset Management Company shall before the
                                                                          Investor by the IT authorities and deemed payable would be borne
expiry of one month from the close of each half year that is on 31st
                                                                          by the respective investor.
March and on 30th September, publish its unaudited financial results
in one national English daily newspaper and in a regional newspaper       For further details on taxation, Investors are requested to refer to the
published in the language of the region where the Head Office of the      section on Taxation in the Statement of Additional Information (SAI).
mutual fund is situated.
                                                                          7. Investor Services
4. Annual Report
                                                                          The Fund will follow-up with the Investor Service Centres and the
A schemewise Annual Report of the Fund or an abridged summary             Registrar on complaints and enquiries received from investors with
thereof shall be mailed to all Unitholders as soon as may be but not      an endeavour to resolve them promptly.
later than 4 months from the date of closure of the relevant accounting
year (i.e. 31st March of each year). The abridged annual report shall     For this purpose, Ms. Lata Krishnamohan/Mr. Vivek Kamat are
contain such details as are required under the Regulations. A full        currently designated as the Investor Relations Officer. They can be
copy of the annual report shall be made available for inspection at       contacted at the Corporate Office of the AMC. The address and
the Head Office of the Fund and a copy shall be made available to         phone numbers are:
the Unitholders on request, on payment of nominal fees if any. These
results shall also be displayed on the website of the Mutual Fund and     314, D.N. Road, Fort, Mumbai 400 001.
Association of Mutual Funds in India (AMFI).                              Tel.: (91) (22) 66668819. Fax : (91) (22) 40029600
                                                                          E-mail: hsbcmf@hsbc.co.in
5. Associate Transactions
For details of Associate transactions including dealing with associate    C. COMPUTATION OF NAV
companies, Investors are advised to please refer Statement of             The NAV of Units under the Scheme(s)/Plan(s)/Option(s) shall be
Additional Information (SAI).                                             calculated as shown below:
6. Taxation
The information is provided for general information only. However,                        Market or Fair Value of Scheme's investments (+)
in view of the individual nature of the implications, each investor is                  Current Assets (-) Current Liabilities and Provisions
                                                                                        ___________________________________________
advised to consult his or her own tax advisors/authorised dealers with    NAV (Rs.) =
respect to the specific amount of tax and other implications arising                            No. of Units outstanding under Scheme
out of his or her participation in the schemes.                           The NAVs of the Scheme(s)/Plan(s)/Option(s) will be calculated and
                      Resident Investors                Mutual Fund       disclosed as of the close of every Business Day. In case of HSCF,
                                                                          the NAVs will be calculated and disclosed at least once a week, i.e.,
Debt/Equity Fund Nil                                   @12.50% plus
                                                                          every Wednesday and daily during the period of redemption. The
Tax on Dividend                                        surcharge and
                                                                          NAVs of the Scheme shall be disclosed up to 4 decimal places. The
                                                       Education Cess
                                                                          valuation of the Scheme' assets and calculation of the Scheme' NAV
Capital Gains:                                                            shall be subject to audit on an annual basis and such regulations as
Debt Fund                                                                 may be prescribed by SEBI from time to time.
Long Term            10%** without Cost Inflation      Nil
                                                                          Fractional Units
                     Index benefit or 20%** with
                     Cost Inflation Index benefit                         Since a request for redemption or purchase is generally made in
Short Term           Income tax rate Applicable        Nil                rupee amounts and not in terms of number of Units of the Scheme,
                     to the Unit holders as per                           an investor may be left with fractional Units. Fractional Units will
                     their income slabs**                                 be computed and accounted for up to three decimal places for the
                                                                          Scheme. However, fractional Units will in no way affect the investor's
Equity Fund                                                               ability to redeem the Units, either in part or in full, standing to the
Long Term            Nil                              Nil                 Unitholder's credit.
Short Term           15% plus surcharge as applicable Nil
                                                                          Policy on computation of NAV in case of investment in foreign
**Plus surcharge @ 10% (where total income exceeds Rs. 10 lacs)           securities
and education cess of 3% in all cases.
                                                                          In case of investment in foreign securities the last available traded
Investors in HTSF are entitled to deductions of the amount invested       price at 6 p.m. IST and forex conversion rate at close of Indian forex
in Units of the Scheme, subject to a maximum of Rs. 1,00,000, under       market shall be taken from a reliable source for NAV computation
and in terms of Section 80C (2) (xiii) of the Income Tax Act, 1961.       purposes. In case of non availability of price for a period upto or less
The scheme shall bear the dividend distribution tax as per section        than 30 days the AMC shall fair value such securities supported by
115R of Income Tax Act, 1961. As per extant Income Tax regulations,       quotes from brokers/market makers.




66                                                                                     Combined Scheme Information Document (SID)
SECTION IV – FEES AND EXPENSES
This section outlines the expenses that will be charged to the             which are specifically prohibited.
Scheme(s)/Plan(s)/Option(s). The information provided under this
Section seeks to assist the investor in understanding the expense          The purpose of the above table is to assist the Investor in understanding
structure of the Scheme(s)/Plan(s)/Option(s) and types of different        the various costs and expenses that an investor in the respective
fees / expenses and their percentage the investor is likely to incur on    Scheme(s)/Plan(s)/Option(s) will bear directly or indirectly. These
purchasing and selling the Units of the respective Plan(s) under the       estimates have been made in good faith as per the information
Scheme(s)/Plan(s)/Option(s).                                               available to the Investment Manager based on past experience and
                                                                           are subject to change inter-se. The above expenses are subject to
A. NEW FUND OFFER (NFO) EXPENSES                                           change and may increase / decrease as per actual and / or any change
                                                                           in the Regulations but the total recurring expenses that can be charged
These expenses are incurred for the purpose of various activities          to the Scheme(s) will be subject to limits prescribed from time to
related to the NFO like sales and distribution fees paid marketing and     time under the SEBI (MF) Regulations. Expenses over and above the
advertising, registrar expenses, printing and stationery, bank charges     permitted limits will be borne by the AMC.
etc.
                                                                           Currently, as per the Regulations, the maximum recurring expenses
This section is not applicable as there is Continuous Offer of Units       that can be charged to Scheme(s) shall be subject to a percentage
of the Scheme(s) at NAV based prices.                                      limit of daily average net assets in the table below:
B. ANNUAL SCHEME RECURRING EXPENSES                                        Equity Schemes (HEF, HIOP, HMEF, HAIF, HUOF, HTSF, HDF
These are the fees and expenses for operating the scheme. These            & HSCF)
expenses include Investment Management and Advisory Fee charged                 First         Next          Next      Balance
by the AMC, Registrar and Transfer Agents' fee, marketing and               Rs. 100 crore Rs. 300 crore Rs. 300 crore
selling costs etc. as is given in the table below:                              2.50%             2.25%            2.00%             1.75%
The AMC has estimated that upto 2.25% of the daily average net             Non Equity Schemes (HMIP, HFRF, HUSBF, HGF, HIF, HCF &
assets of the non equity schemes and upto 2.50% of the daily average       HFDF)
net assets of the equity schemes and upto 0.75% of the daily or
                                                                                First         Next          Next      Balance
weekly average net assets of the fund of funds scheme will be
                                                                            Rs. 100 crore Rs. 300 crore Rs. 300 crore
charged to the respective Scheme(s)/Plan(s)/Option(s) as expenses.
Please refer to the table below for details. For the actual current             2.25%             2.00%            1.75%             1.50%
expenses being charged, the investor should refer to the Fact Sheet
                                                                           HEMF:
on website of the Fund.
                                                                           HSBC GIF Global Emerging Markets Equity (GEM Fund) has various
Particulars                            % of Net Assets                     share classes and has different expenses for each such share class.
                                                                           The expenses are classified into Management & Distribution expenses
                                Equity HEMF Other              HFDF        and Operating expenses. The management & distribution expense
                              schemes          than                        for a retail share class like Share Class A is 1.50% whereas share
                                except      Equity                         class I, which is the institutional share class, has management &
                               HEMF        schemes                         distribution fees of around 0.75% of the net assets. Further, the
                                             except                        administrative, operating and servicing expenses for all classes are
                                             HFDF                          capped at 1% which is over and above the management and distribution
Investment Management           1.25%     0.10%      1.25%      1.25%      expenses. HGIF could change the expenses for the various share
& Advisory Fee                                                             classes from time to time.
Custodial Fees                  0.15%     0.03%      0.20%      0.12%      HEMF will charge expenses as per SEBI Guideline MFD/CIR.No.
                                                                           04/11488 /2003 dated 12 June, 2003 and SEBI/IMD/CIR No.
Registrar & Transfer Agent      0.12%     0.15%      0.15%      0.17%      7/73202/06 dated 2 August, 2006. HEMF expenses in India, borne
Fees including cost related                                                by the investors, will not exceed 0.75% of weekly average net assets
to providing accounts                                                      in HEMF and expenses of the underlying fund (HSBC GEM Equity
statement, dividend /                                                      or equivalent), borne by the investors, will not exceed 2.50% of
redemption cheques /                                                       weekly average net assets in HEMF. The investors will have to bear
warrants etc.                                                              the expenses as mentioned above. The AMC may enter into a revenue
Marketing & Selling             0.70%     0.36%      0.40%      0.55%      sharing arrangement with HSBC GEM Equity or equivalent
Expenses including Agents                                                  underlying fund/ Management Company for sharing of the investment
Commission and                                                             management fee out of the fee charged by the underlying Funds'
statutory advertisement                                                    Management Company. The recurring expenses of the HSBC GEM
                                                                           Fund or equivalent shall be as per the limits prescribed under sub-
Brokerage & Transaction              _          _    0.05%      0.02%      regulation 6 of Regulation 52 of the SEBI Regulations and shall not
Cost pertaining to the                                                     exceed the limits prescribed thereunder.
distribution of units
                                                                           The recurring expenses of the HSBC GEM Fund or equivqlent and
Audit Fees / Fees and           0.06%     0.03%      0.06%      0.05%      other scheme(s) shall be as per the limits prescribed under sub-
expenses of trustees                                                       regulation 6 of Regulation 52 of the SEBI Regulations and shall not
Costs related to                0.17%     0.03%      0.04%      0.01%      exceed the limits prescribed thereunder. Subject to Regulations and
investor communications                                                    this Combined Scheme Information Document, expenses over and
                                                                           above the prescribed ceiling will be borne by the AMC.
Costs of fund transfer               _          _    0.05%      0.02%
from location to location                                                  As per SEBI regulations, the AMC is entitled to an investment
                                                                           management and advisory fee at the rate of 1.25% per annum of the
Other Expenses*                 0.05%     0.05%      0.05%      0.06%      daily average net assets outstanding in each accounting year for the
Total Recurring Expenses       2.50%      0.75%      2.25%     2.25%       scheme concerned, as long as the net assets do not exceed Rs. 100
                                                                           crores (rupees one hundred crores only) and 1.00% of the excess
* Other expenses: Any other expenses which are directly attributable       amount over Rs. 100 crores (rupees one hundred crores only), where
to the Scheme(s), may be charged with approval of the Trustee within       net assets so calculated exceed Rs. 100 crore (rupees one hundred
the overall limits as specified in the Regulations except those expenses   crores only). For schemes launched on a no load basis, the AMC is

HSBC Mutual Fund                                                                                                                                67
entitled to collect an additional management fee not exceeding 1%               Particulars              Open-ended Schemes Close-ended Schemes
of the weekly average net assets outstanding in each financial year.                                     (as % of NAV)      (as % of NAV)
Further, AMC reserves the right to vary the expense ratios charged
to HSBC Cash Fund, HSBC Floating Rate Fund - Short Term Plan,                   Maximum load on          Nil                     Nil
HSBC Ultra Short Term Bond Fund and HSBC Flexi Debt Fund of                     issue of units in lieu
HSBC Mutual Fund, at such frequencies as the AMC may decide,                    of dividends/bonus
subject to the maximum SEBI permissible limits i.e., currently 2.25%.
The AMC would make adequate disclosures to keep investors                       Maximum                  7%                      5%
informed of the changes from time to time by various channels of                Repurchase load
communication viz. web site disclosures, email communications,
factsheet etc.                                                                  Maximum                  As per the prevailing   As per the prevailing
                                                                                Switchover Fee           load structure of the   load structure of the
C. LOAD STRUCTURE                                                                                        Scheme(s) / Plan(s) /   Scheme(s) / Plan(s) /
                                                                                                         Option(s)               Option(s)
Load is an amount which is paid by the investor to subscribe to the
units or to redeem the units from the scheme. This amount is used               The repurchase price however, will not be lower than 93% of the
by the AMC to pay commissions to the distributor and to take care               NAV and the sales price will not be higher than 107% of the NAV,
of other marketing and selling expenses. Load amounts are variable              provided that the difference between the repurchase price and the
and are subject to change from time to time. For the current applicable         sales price at any point in time shall not exceed the permitted limit
structure, please refer to the website of the AMC at                            as prescribed by SEBI from time to time, which is presently 7%
www.assetmanagement.hsbc.com/in or may call at ISC or your                      calculated on the sales price.
distributor.
                                                                                In case of HSCF & HEMF, during the close ended period of the
Sales of Units under any Scheme(s)/Plan(s)/Option(s) could attract              schemes, the repurchase price will not be lower than 95% of the NAV
an entry load (as a % of the invested amount). Repurchases could                and the difference between sale price and repurchase price shall not
attract an exit load (as a % of the Applicable NAV for redemptions).            exceed 5% of the sale price. After the schemes becomes open ended,
Unitholders should note that the AMC retains the right to change /              the repurchase price will not be lower than 93% of the NAV and the
impose an entry / exit load as per the provisions below:                        sale price will not be higher than 107% of the NAV, and the difference
                                                                                between sale price and repurchase price shall not exceed 7% of the
Particulars               Open-ended Schemes Close-ended Schemes
                                                                                sale price.
                          (as % of NAV)      (as % of NAV)
Maximum Sales load 7%                           5%
imposed on purchases


Load Structure (Including SIP/STP where applicable)
Name of the                                                 Load chargeable (as %age of NAV)
Scheme / Plan /
Option          Entry Load                                                Exit Load

HEF                 For investment / switch in* < Rs. 5 crores            1.25% for < Rs. 5 crores, if redeemed / switched out* within 1 year
                    - 2.25%, otherwise Nil.                               from date of investment, otherwise Nil.
                    For switch transactions from HCF to HEF               For switch transactions from HCF to HEF and subsequent switch
                    (excludes existing & prospective STP                  transactions from HEF to any other debt or equity scheme (excludes
                    transactions) - Nil                                   existing & prospective STP transactions) - 2.25% for < Rs. 5 crores,
                                                                          if above switch investments are redeemed / switched out within 1
                                                                          year from the date of switch, otherwise Nil.
HIOF, HMEF          For investment / switch in < Rs. 5 crores             1% for < Rs. 5 crores, if redeemed / switched out within 1 year from
& HAIF              - 2.25%, otherwise Nil.                               date of investment, otherwise Nil.
HMIP
– Regular Plan      Nil                                                   1% if redeemed / switched out within 1 year from the date of
                                                                          investment. For SEP - Nil.
– Savings Plan      Nil                                                   1.50% if redeemed / switched out within 1 year from the date of
                                                                          investment. For SEP - Nil.
HIF-IP              Nil                                                   Regular & Institutional Option - 1% for investments / switch-ins in, if
                                                                          redeemed / switched out within 1 year from date of investment.
HIF-ST              Nil                                                   Regular Option : 0.5% if redeemed / switched out within 6 months
                                                                          from the date of investment.
                                                                          Institutional & Institutional Plus Option : Nil
HFRF-LT             Nil                                                   Regular Option : 0.25% if redeemed / switched out within 3 months
                                                                          from date of investment.
                                                                          Institutional Option : Nil
HCF, HFRF-ST Nil                                                          Nil
& HUSBF
HGF                 Nil                                                   0.5% if redeemed/switched out within 6 months from the date of
                                                                          investment
HUOF                During the time period, fund is closed : Nil          During the time period, fund is closed : Nil^
                    Upon Conversion into open-ended scheme*:              ^The investor will have to bear the proportionate unamortized initial
                    For investments / switch in below Rs. 5 crores        issue expenses for exiting during the close ended period.
                    (including SIP/STP) - 2.25%, otherwise Nil.


68                                                                                            Combined Scheme Information Document (SID)
 Name of the                                                Load chargeable (as %age of NAV)
 Scheme / Plan /
 Option          Entry Load                                               Exit Load

                    * The Scheme shall levy the Load structure            Upon Conversion into open-ended scheme* : Nil
                    immediately on conversion from close ended            * The Scheme shall levy the Load structure immediately on conversion
                    to open ended.                                        from close ended to open ended.
 HTSF               For investments / switch-ins below Rs. 1              Nil
                    crore - 2.25%, otherwise Nil
 HDF                2.50% for investments / Switch in below               1% for investments below Rs. 5 crores, if redeemed / switched out
                    Rs. 5 crores, otherwise Nil.                          within 1 year from date of investment, otherwise Nil.
 HFDF               Regular Option & Institutional Option: Nil            Regular Option :
                                                                          - 0.75%, if redeemed / switched out within 6 months from date of
                                                                          investment.
                                                                          - 0.25% if redeemed / switched out from greater than 6 months to 1 year
                                                                          from the date of investment
                                                                          Institutional Option: Nil
 HEMF               2.50% for investments / Switch in below               1% for investments below Rs. 5 crores, if redeemed / switched out
                    Rs. 5 crores, otherwise Nil.                          within 1 year from date of investment, otherwise Nil
 HSCF               During close ended period: Nil                        During close ended period^:
                                                                          If the investments are redeemed / switched out within: 1 year : 2%,
                    Upon conversion into an open ended scheme*:           2 Year : 1.5% & 3 Year : 1%
                    For investments / switch-ins in below                 ^Balance proportionate unamortized NFO expenses to be recovered in
                    Rs. 5 crores - 2.25%, otherwise Nil                   case of exit within close-ended period
                    * The Scheme shall levy the Load structure            Upon conversion into an open ended scheme:
                    immediately on conversion from close ended            Nil
                    to open ended.


No load in case of switches between equity Schemes of HSBC                           brokers' office.
Mutual Fund.                                                                    (iii) The introduction of the Exit Load along with the details will be
No load in case of investments by Fund-of-Funds Scheme(s) except                      stamped in the acknowledgement slip issued to the investors on
HDF, HFDF & HSCF. There are no loads other than those mentioned                       submission of the application form and will also be disclosed
above. The entry / exit loads set forth above are subject to change                   in the Account Statement or in the covering letter issued to the
at the discretion of the AMC and such changes shall be implemented                    Unit holders after the introduction of such Load.
prospectively.                                                                  (iv) A public notice shall be given in respect of such changes in one
Bonus units and units issued on reinvestment of dividends shall not                  English daily newspaper having nationwide circulation as well
be subject to entry and exit load.                                                   as in a newspaper published in the language of region where the
All loads including Contingent Deferred Sales Charge (CDSC) for                      Head Office of the Mutual Fund is situated.
the Scheme shall be maintained in a separate account and may be                 (v) Any other measures which the mutual funds may feel necessary.
utilised towards meeting the selling and distribution expenses. Any
surplus in this account may be credited to the respective Scheme(s)/            D. WAIVER OF LOAD FOR DIRECT
Plan(s)/Option(s), whenever felt appropriate by the AMC.                           APPLICATIONS
The investor is requested to check the prevailing load structure of the         Pursuant to SEBI Circular number SEBI/IMD/ CIR. No.10/ 112153/
scheme before investing. For any change in load structure AMC will              07 dated December 31, 2007, no entry load shall be charged in case
issue an addendum and display it on the website/Investor Service                of direct applications received by the AMC i.e. application received
Centres.                                                                        through internet, submitted to AMC or Collection Centre / Investor
Subject to the Regulations, the Trustees reserve the right to modify            Service Centre and are not routed through any distributor / agent /
/ alter the load structure and may decide to introduce a differential           broker. It shall also be applicable in case of switch-in to the Scheme
load structure on the Units redeemed on any Business Day. Such                  from other Schemes if such a transaction is done directly by the
changes will be applicable prospectively. The changes may also be               investor. Investors are required to note that where the application is
disclosed in the Statements of Account issued after the introduction            routed through a distributor / agent / broker, they shall mention the
of such load.                                                                   broker code on the application form or transaction slip, as the case
                                                                                may be, and where the application is not so routed, they shall mark
Any imposition or enhancement of Load in future shall be applicable             the field for distributor / agent / broker code as 'Direct'. In other
on prospective investments only. At the time of changing the Load               words, investors shall ensure that the field for broker code is not left
Structure:                                                                      blank; if the field is left blank, the application will be treated as
(i)   The addendum detailing the changes will be attached to the                'Direct'. Investors, who intend to invest directly by using an application
      Combined Scheme Information Document and Key Information                  form / transaction slip with a pre-printed distributor / agent / broker
      Memorandum. The addendum will be circulated to all the                    code, should ensure to strike out the distributor / agent / broker code
      distributors / brokers so that the same can be attached to all            and / or replace the existing distributor / agent / broker code with the
      Combined Scheme Information Documents and Key Information                 term "DIRECT" and countersign these alterations / changes so that
      Memorandum already in stock.                                              the application is treated as a direct application. If the alterations /
(ii) Arrangements will be made to display the changes / modifications           changes on the pre-printed transaction slip /application form are not
     in the Combined Scheme Information Document in the form of                 countersigned by the unit holder(s), the application will be processed
     a notice in all the Investor Service Centres and distributors /            as if no alterations were made.




HSBC Mutual Fund                                                                                                                                      69
SECTION V – RIGHTS OF UNITHOLDERS
For details of Rights of Unitholders, please refer Statement of Additional Information (SAI).




SECTION VI
PENALTIES, PENDING LITIGATION OR PROCEEDINGS,                                            its obligations as a merchant banker. The Sponsor had
FINDINGS OF INSPECTIONS OR INVESTIGATIONS FOR                                            sought a personal hearing before the Whole-Time Member,
WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN THE                                            SEBI; submissions were made by Sponsor's counsel at the
PROCESS OF BEING TAKEN BY ANY REGULATORY                                                 hearing held on 5 September, 2006. Subsequent to the
AUTHORITY                                                                                hearing, an order dated 7 March, 2007 was passed by SEBI
                                                                                         imposing a minor penalty of censure on the Sponsor.
1.   All disclosures regarding penalties and action(s) taken against                     Thereafter, Sponsor appealed against the said order before
     foreign Sponsor(s) may be limited to the jurisdiction of the                        the Securities Appellate Tribunal, Mumbai on 23rd April,
     country where the principal activities (in terms of income /                        2007 which was admitted by the Securities Appellate
     revenue) of the Sponsor(s) are carried out or where the                             Tribunal and the next date of hearing was scheduled for 11
     headquarters of the Sponsor(s) is situated. Further, only top 10                    December, 2007. The Securities Appellate Tribunal heard
     monetary penalties during the last three years shall be disclosed.                  the arguments of both Parties on the 11 and 12th of
                                                                                         December, 2007 respectively and has further sought written
     The Sponsor of HSBC Mutual Fund is HSBC Securities and
                                                                                         arguments from both parties, which have been submitted
     Capital Markets (India) Private Limited, a company incorporated
                                                                                         to the Securities Appellate Tribunal on 14 December, 2007.
     under the provisions of the Companies Act, 1956. Hence, this
                                                                                         Subsequent to the hearing held before SAT and submission
     section is not applicable to an Indian Sponsor.
                                                                                         of written arguments, an order dated 20 February 2008 was
2.   In case of Indian Sponsor(s), details of all monetary penalties                     passed by SAT upholding SEBI's minor penalty of censure
     imposed and / or action taken during the last three years or                        on Sponsor.
     pending with any financial regulatory body or governmental
                                                                                    -    On the Sponsor: Fines of Rs. 5,000 each for 4 quarters
     authority, against Sponsor(s) and / or the AMC and / or the
                                                                                         during 2002 to 2003, for 3 quarters in 2004 and for 2
     Board of Trustees / Trustee Company; for irregularities or for
                                                                                         quarters in 2005 by the Bombay Stock Exchange Limited,
     violations in the financial services sector, or for defaults with
                                                                                         Rs. 10,000 each for 5 quarters during 2001 to 2002 and
     respect to share holders or debenture holders and depositors,
                                                                                         Rs. 5,000 for 4 quarters during 2003 and 2004 and for 2
     or for economic offences, or for violation of securities law.
                                                                                         quarters in 2005 by National Stock Exchange for not fully
     Details of settlement, if any, arrived at with the aforesaid
                                                                                         complying with the requirements of collecting margins
     authorities during the last three years shall also be disclosed.
                                                                                         from all non-institutional clients. Exchanges / depository
     Penalties imposed by a financial regulatory body or government                      levy fines from time to time on matters inherent to the
     authority against the Sponsor and / or the AMC and / or the                         stock broking business. Fines levied by National Stock
     Board of the Trustees, for irregularities / violations in the financial             Exchange in August, 2006: Rs. 5,000/- notice board required
     services sector, or for defaults with respect to share holders or                   to be displayed by NSE trading members, was not
     debenture holders and depositors, or for economic offences, or                      permanent in nature and Rs. 5,000/- for issuing Contract
     for violation of securities law, during the last three years:                       notes with trade data on a weighted average traded price
                                                                                         basis.
     -    The Sponsor was acting as a merchant banker under the
          SEBI (Substantial Acquisitions of Shares and Takeovers)                   -    Sponsor, as a SEBI registered Stock Broker, has been
          Regulations, 1997 for an open offer made by Global Green                       mentioned as a party defendant in some litigations
          Company Limited for the shares of Saptarishi Agro                              connected with the securities market. Sponsor has initiated
          Industries Limited in the year 2000. Some of the shares of                     action against RIL and the registered shareholders of 1587
          the target company were not listed at the time of the open                     shares restraining RIL from transferring the shares to the
          offer but were stated as listed in the letter of offer. An                     registered holders and directing the registered holders to
          enquiry is in progress under SEBI (Procedure for Holding                       transfer the shares in favour of Sponsor. Vide an order
          Enquiry by Enquiry Officer and Imposing Penalty)                               dated 24th August, 2007 the Hon'ble High Court passed an
          Regulations, 2002 for alleged contravention of SEBI                            oder in favour of Sponsor declaring Sponsor as the beneficial
          (Substantial Acquisitions of Shares and Takeovers)                             owner of the shares as well as any benefits including
          Regulations, 1997 and SEBI (Merchant Bankers)                                  dividends for the years 1995-96 and 1996-97 and bonus
          Regulations, 1992. The Sponsor has submitted that there                        shares and right shares that may have accrued thereon.
          has been no failure on the part of the Sponsor to comply
                                                                               3.   Details of all enforcement actions taken by SEBI in the last three
          with its obligations as a merchant banker. Subsequent to
                                                                                    years and / or pending with SEBI for the violation of SEBI Act,
          the enquiry officer's recommendation of a minor penalty
                                                                                    1992 and Rules and Regulations framed thereunder including
          i.e. the Sponsor be censured, a show cause notice has been
                                                                                    debarment and / or suspension and / or cancellation and / or
          issued by SEBI requiring the Sponsor to show cause as to
                                                                                    imposition of monetary penalty / adjudication / enquiry
          why the said penalty should not be imposed. The Sponsor
                                                                                    proceedings, if any, to which the Sponsor(s) and / or the AMC
          has reiterated its earlier stand and submitted that there has
                                                                                    and/ or the Board of Trustees / Trustee Company and / or any
          been no failure on the part of the Sponsor to comply with
                                                                                    of the directors and / or key personnel (especially the fund


70                                                                                         Combined Scheme Information Document (SID)
     managers) of the AMC and Trustee Company were / are a party.           The above information has been disclosed in good faith as per the
     The details of the violation shall also be disclosed.                  information available to the AMC.

     -    On the Sponsor: Fines levied by National Stock Exchange           Notwithstanding anything contained in this Combined Scheme
          in August 2006: Rs. 5,000/- NCFM certification for persons        Information Document, the provisions of the SEBI (Mutual
          operating the dealing system of the exchange had expired          Funds) Regulations, 1996 and the guidelines thereunder shall be
          in two cases.                                                     applicable.

4.   Any pending material civil or criminal litigation incidental to        Notes:
     the business of the Mutual Fund to which the Sponsor(s) and/
     or the AMC and / or the Board of Trustees / Trustee Company            1.   Any amendments / replacement / re-enactment of SEBI (MF)
     and/ or any of the directors and / or key personnel are a party             Regulations subsequent to the date of this Combined Scheme
     should also be disclosed separately.                                        Information Document shall prevail over those specified in this
                                                                                 Combined Scheme Information Document.
     There is no pending material civil or criminal litigation incidental
     to the business of the Mutual Fund to which the Sponsor of the         2.   The Board of Trustees of HSBC Mutual Fund and Board of
                                                                                 Directors of HSBC Asset Management (India) Private Limited
     Mutual Fund and / or the AMC and / or the Board of Trustees
                                                                                 approved, the Combined Scheme Information Document on
     and / or any of the directors and / or key personnel is a party.            18 May, 2009.
5.   Any deficiency in the systems and operations of the Sponsor(s)                          For and on behalf of the Board of Directors of
     and / or the AMC and / or the Board of Trustees / Trustee                           HSBC Asset Management (India) Private Limited
     Company which SEBI has specifically advised to be disclosed
                                                                                                                                         Sd/-
     in the SID, or which has been notified by any other regulatory
                                                                                                                              Vikramaaditya
     agency, shall be disclosed.
                                                                                                                      Chief Executive Officer
There are no deficiencies in the systems and operations of the Sponsor      Place: Mumbai
of the Mutual Fund and / or the AMC and / or the Board of Trustees
which SEBI has specifically advised to be disclosed in the SID, or          Date: 20 May, 2009
which has been notified by any other regulatory agency to be disclosed
in SID.




HSBC Mutual Fund                                                                                                                             71
INVESTOR SERVICE CENTRES AND OFFICIAL POINTS OF ACCEPTANCE FOR TRANSACTIONS

                                                          HSBC MUTUAL FUND CENTRES
Ahmedabad : Mardia Plaza, C.G. Road, Ahmedabad 380 006. Tel : 98983 77319. Bengaluru : No. 7, HSBC Centre, M. G. Road, Bengaluru 560 001.
Tel : 080 - 4118 6519. Chandigarh : SCO - 1, Sector-9D, Madhya Marg, Chandigarh 160 017. Tel : 0172 - 500 8119. Chennai : 96, Radhakrishnan
Salai, 2nd Floor, Mylapore, Chennai 600 004. Tel : 044 - 4200 8719. Coimbatore : 108, "Srivari Gokul Towers", Race Course Road,
Coimbatore 641 018. Tel : 98944 77319. Hyderabad : 6-3-1107 & 1108, Raj Bhavan Road, Somajiguda, Hyderabad 500 082. Tel : 040 - 6667 4719.
Indore : Darshan Mall, 15 / 2, Race Course Road, Indore 452 001. Tel : 98934 77319. Kochi : II Floor, Pulikkal Estate, Pallimukku, M. G. Road,
Kochi 682 016. Tel : 98954 77319. Kolkata : Jasmine Tower, 1st Floor, 31, Shakespeare Sarani, Kolkata 700 017.
Tel : 033 - 2213 9919. Lucknow : C/o. Business Bridge, 2nd Floor, Saran Chambers - 2, 5, Park Road, Lucknow 226 001. Tel : 99367 97319.
Mumbai : 314 D. N. Road, Fort, Mumbai 400 001. Tel : 022 - 6666 8819. New Delhi : 3rd Floor, East Tower, Birla Tower, 25, Barakhamba Road,
New Delhi 110 001. Tel : 011 - 4149 0719. Pune : Amar Avinash Corporate City, Bund Garden Road, Pune 411 001. Tel : 020 - 26001119.
Vadodara : Sheel Building, 1/2 Kalpana Society, Inox Multiplex Road, Race Course Circle, Vadodara 390 007. Tel : 98983 77319.

                         CAMS INVESTOR SERVICE CENTRES, CAMS TRANSACTION POINTS
                            AND CAMS COLLECTION CENTRES TEL.: 1800-200-2267
CAMS (Investor Service Centres) :
l   Ahmedabad l Bangalore l Bhubaneswar l Coimbatore l Cochin l Chandigarh l Chennai l New Delhi l Durgapur l Goa
l   Hyderabad l Indore l Jaipur l Kanpur l Kolkata l Lucknow l Ludhiana l Mangalore l Mumbai l Madurai l Nagpur l Pune
l   Patna l Surat l Vadodara l Visakhapatnam l Vijayawada
CAMS (Transaction Points) :
l Ajmer l Akola l Aligarh l Allahabad l Alwar l Amaravati l Ambala l Amritsar l Anand l Ananthpur l Avngul l Ankleshwar
l Asansol l Aurangabad l Bagalkot l Balasore l Bareilly l Belgaum l Berhampur l Bhagalpur l Bhatinda l Bhavnagar l Bhilai
l Bhilwara l Bhopal l Bhuj l Bikaner l Bilaspur l Bokaro l Burdwan l Calicut l Chandrapur l Cuttack l Darbhanga l Davenegere

l Dehradun l Deoghar l Dhanbad l Dhule l Erode l Faizabad l Faridhabad l Ghaziabad l Gorakhpur l Gulbarga l Guntur l Gurgoan

l Guwahati l Gwalior l Haldwani l Hazaribagh l Himatnagar l Hissar l Hosur l Hubli l Itarsi l Jabalpur l Jalandhar l Jalgaon

l Jammu l Jamnagar l Jamshedpur l Jhansi l Jodhpur l Junagadh l Kadapa l Kakinada l Kalyani l Kannur l Karimnagar l

Karur l Kestopur l Kharagpur l Kolhapur l Kollam l Kota l Kottayam l Kurnool l Latur l Malda l Manipal l Margao l Mathura
l Meerut l Mehsana l Moga l Moradabad l Morbi l Muzzafarpur l Mysore l Namakkal l Nanded l Nasik l Navsari l Nellore

l Nizamabad l Palakkad l Palanpur l Panipat l Patiala l Pondicherry l Porbander l Rae Bareily l Raichur l Raipur l Rajahmundry

l Rajapalayam l Rajkot l Ranchi l Ratlam l Ratnagiri l Rohtak l Roorkee l Ropar l Rourkela l Sagar l Saharanpur l Salem              l

Sambalpur l Satara l Satna l Shimla l Shimoga l Siliguri l Solapur l Sri Ganganagar l Srikakulam l Surendranagar l Thiruppur
l Tirunelveli l Tirupathi l Trichur l Trichy l Trivandrum l Tuticorin l Udaipur l Valsad l Vapi l Varanasi l Vashi l Vellore l Veraval

l Warangal l Wardha l Yamuna Nagar


CAMS (Collection Centres) :
l   Bharuch   l   Bhusawal   l   Howrah   l   Jalna   l   Karnal   l   Kolkata   l   Mapusa   l   Mumbai   l   Nandiad   l   Sangli   l   Unjha
HSBC Asset Management (India) Private Limited
Registered Office
314, D. N. Road, Fort, Mumbai 400 001.
Tel.: (91) (22) 66668819. Fax : (91) (22) 40029600
E-mail : hsbcmf@hsbc.co.in Website : (www.assetmanagement.hsbc.com/in)
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