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.

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 NameOld Category New Category
HSBC Equity FundHSBC Large Cap Equity FundEquity-Large Cap
Equity-Large Cap
HSBC Flexi Debt FundHSBC Flexi Debt FundDebt-Income
Debt-Corporate Bond
HSBC Income Fund – Investment PlanHSBC Debt FundDebt-Income
Debt-Medium to Long Duration
HSBC Income Fund – Short Term PlanHSBC Short Duration FundDebt-Short Term
Debt-Short Duration
HSBC Infrastructure Equity FundHSBC Infrastructure Equity FundEquity-Sector
Equity-Sectoral/Thematic
HSBC Midcap Equity FundHSBC Small Cap Equity FundEquity-Mid Cap
Equity-Small Cap
HSBC Monthly Income PlanHSBC Regular Savings FundDebt-MIP
Hybrid-Conservative

HSBC Mutual Fund Names and Categories Which Did Not Change

 Old Name  New Name Old Category  New Category
HSBC Cash FundHSBC Cash FundDebt-LiquidDebt-Liquid
HSBC Dynamic FundHSBC Dynamic FundEquity-Large Cap
Equity-Large Cap
HSBC Dividend Yield Equity FundHSBC Dividend Yield Equity FundEquity-Large Cap
Equity-Large Cap
HSBC India Opportunities FundHSBC India Opportunities FundEquity-Multi Cap
Equity-Multi Cap
HSBC Tax Saver Equity FundHSBC Tax Saver Equity FundEquity-Tax – ELSSEquity-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.