SEBI has come up with certain guidelines in order to make the process of investing easier for retail investors.

Mutual fund companies have thus renamed and re-categorized their funds in adherence to this instruction.

SEBI has prescribed that every fund company can have only one fund offering under each category.

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The following are the benefits that led SEBI to restructure the mutual funds

Benefits of HSBC Mutual Fund Renaming and Re-Categorization

1. In the past, it was hard for retail investors to understand the various categories of funds. With changes in SEBI policies, it has become more simple

2. Through renaming and re-categorization, the categories and number of funds have reduced

3. The expense ratio will also decrease, due to an increased AUM rate per scheme

HSBC Mutual Funds Name and Category Change

Old Name  New Name Old Category  New Category
HSBC Equity Fund HSBC Large Cap Equity Fund Equity-Large Cap
Equity-Large Cap
HSBC Flexi Debt Fund HSBC Flexi Debt Fund Debt-Income
Debt-Corporate Bond
HSBC Income Fund – Investment Plan HSBC Debt Fund Debt-Income
Debt-Medium to Long Duration
HSBC Income Fund – Short Term Plan HSBC Short Duration Fund Debt-Short Term
Debt-Short Duration
HSBC Infrastructure Equity Fund HSBC Infrastructure Equity Fund Equity-Sector
HSBC Midcap Equity Fund HSBC Small Cap Equity Fund Equity-Mid Cap
Equity-Small Cap
HSBC Monthly Income Plan HSBC Regular Savings Fund Debt-MIP

HSBC Mutual Fund Names and Categories Which Did Not Change

 Old Name   New Name  Old Category   New Category
HSBC Cash Fund HSBC Cash Fund Debt-Liquid Debt-Liquid
HSBC Dynamic Fund HSBC Dynamic Fund Equity-Large Cap
Equity-Large Cap
HSBC Dividend Yield Equity Fund HSBC Dividend Yield Equity Fund Equity-Large Cap
Equity-Large Cap
HSBC India Opportunities Fund HSBC India Opportunities Fund Equity-Multi Cap
Equity-Multi Cap
HSBC Tax Saver Equity Fund HSBC Tax Saver Equity Fund Equity-Tax – ELSS Equity-ELSS


What Should You do if the Fund Has Been Renamed and Re-Categorized?

1. Renamed

if the fund has only been renamed, then you need not worry. You may keep investing as you were before

2. Renamed and Re-Categorized

Here’s where you need to pay attention.

If the fund category changes, it means the investment strategy might also change. Hence, you need to modify your investment, so that it can sync with the characteristics of the new category.

3. Merged

Again, if the funds are merged, you need not worry, the Asset Management Company will take care of it.

Happy Investing!

DisclaimerThe views expressed here are that of the author and do not reflect those of Groww. 


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