HSBC Mutual Fund is one of the leading AMCs in India, offering a wide range of wealth and asset management solutions across equity, multi-asset, liquid, and fixed-income categories. In its around 18 years of operation, the company has served more than a million customers, obtaining a total of over Rs. 10000 crores in Assets under Management (AuM).
HSBC Mutual Fund offers more than 30 mutual fund schemes as investment options.
Debt funds comprise the category of mutual funds that invest in fixed income instruments like bonds, government securities, treasury bills, gilt funds, liquid funds, Monthly Income Plans (MIPs), etc. The best HSBC debt mutual funds earn returns via interest from lending money to the institutions that issued the securities. The instruments have pre-decided maturity dates and interest rates that determine the returns and risk factors of the investment.
HSBC mutual fund offers more than 15 debt mutual funds that generate stable returns against very low risks.
These investments provide steady capital appreciation and income that are usually not affected by market fluctuations. Therefore, they serve as low-risk investment options for risk-averse investors. Debt funds with a shorter maturity period work well as emergency funds due to their very high liquidity. Low-cost structures, relatively stable returns, and a reasonable degree of safety are a few additional advantages of investing in debt funds.
Therefore, the best HSBC debt mutual funds work well for risk-averse or new investors aiming to avail higher returns than traditional fixed income products. They also work well for investors to park funds for emergencies.
Depending on the maturity period, there are different categories of debt funds like overnight, liquid, ultra-shorts, low duration, short duration, medium duration, medium-long duration, and long duration funds. Funds with a maturity period ranging from a day to a few months are useful to park money for a short while. Long-term funds bear higher risks but generate higher capital gains in a bear market.
The best HSBC debt mutual funds can also belong to categories like money market funds, corporate bond funds, banking, PSU funds, and Gilt funds. These invest most of their assets in certain types of bonds and securities.
There are certain factors that investors need to carefully consider before investing in debt funds. These are:
Risk factors: Debt funds work best to generate regular income against the least risk among mutual funds. However, like all market-linked products, even the performance of the best HSBC debt mutual fund varies on market interest rates. Unlike traditional fixed income sources, they carry certain credit and interest risks. It's always important to check the track record and performance of a fund before investing in it.
Returns: Debt mutual funds offer lower returns compared to equity and hybrid funds but have lesser volatility. These funds offer better returns compared to fixed deposits, letting investors supplement their income. The Net Asset Value (NAV) of debt funds increases with a decline in interest rates in the economy. It's important to note that even the best HSBC debt mutual funds don't provide guaranteed returns.
Asset allocation: Asset allocation is a major factor that determines the NAV of a debt fund. Corporate bonds with the highest ratings and government securities offer the least credit risks. There's also an equity composition of debt funds that can provide higher returns based on the equity market.
Financial goals: Short-term funds and liquid funds are ideal for retirees as they offer higher returns than FDs but carry little risk. Equity investors can also benefit from the top HSBC debt mutual funds as they can park their investments there. Some savvy investors add stability to their investment portfolios using debt funds.
Investment horizon: Short-term investment instruments like liquid and ultra-short duration funds offer stable returns and high liquidity. Conversely, short-, medium- and long-term funds can have an investment horizon of 2-3, 3-5, and 5-7+ years. With a longer maturity period, the funds may be more volatile but usually offers better returns.
Expense ratio: This is a small percentage of a fund's total asset charged by fund managers to manage an investment. You can compare the expense ratios of the best HSBC debt mutual funds.
Taxability is another major factor to consider when looking to invest in debt funds.
Short-Term Capital Gains Tax (STCG): This tax is applicable if the investor holds the units of a debt fund for up to three years. These are taxed as per an investor's income tax slab.
Long-Term Capital Gains Tax (LTCG): This tax applies for a debt fund redeemed/sold after three years at a rate of 20% after indexation. This involves adjusting the purchase prices based on inflation rates.
TDS: TDS is not applicable for debt mutual funds.
These are a few pointers every investor needs to look into before investing in the best HSBC debt mutual funds 2023.
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| Fund Name | Category | Risk | 1Y Returns | Rating | Fund Size(in Cr) |
|---|---|---|---|---|---|
HSBC Brazil Fund | Other | Very High | 4.8% | -- | ₹37 |
HSBC Liquid Fund | Debt | Low to Moderate | 7.0% | 3 | ₹18,269 |
HSBC Small Cap Equity Fund | Equity | Very High | -8.8% | 2 | ₹300 |
HSBC Infrastructure Equity Fund | Equity | Very High | 9.2% | 1 | ₹121 |
HSBC Global Emerging Markets Fund | Other | Very High | 5.5% | -- | ₹22 |
HSBC Managed Solutions India Growth Fund | Other | Very High | 19.7% | 3 | ₹38 |
HSBC Managed Solutions India Moderate Fund | Other | High | 17.3% | 2 | ₹58 |
HSBC Flexi Cap Fund | Equity | Very High | 25.7% | 3 | ₹3,534 |
HSBC Asia Pacific (Ex Japan) Dividend Yield Fund | Other | Very High | 11.8% | -- | ₹8 |
HSBC Tax Saver Equity Fund | Equity | Very High | 4.2% | 2 | ₹195 |
| View All |
Now let us jump and check about these top 10 mutual fund schemes.
Fund Performance: The HSBC Brazil Fund has given 5.1% annualized returns in the past three years and -0.38% in the last 5 years. The HSBC Brazil Fund belongs to the Other category of HSBC Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in HSBC Brazil Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹37Cr |
| 1Y Returns | 4.8% |
Fund Performance: The HSBC Liquid Fund has given 4.75% annualized returns in the past three years and 5.25% in the last 5 years. The HSBC Liquid Fund belongs to the Debt category of HSBC Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in HSBC Liquid Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹18,269Cr |
| 1Y Returns | 7.0% |
Fund Performance: The HSBC Small Cap Equity Fund has given 25.58% annualized returns in the past three years and 7.62% in the last 5 years. The HSBC Small Cap Equity Fund belongs to the Equity category of HSBC Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in HSBC Small Cap Equity Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹300Cr |
| 1Y Returns | -8.8% |
Fund Performance: The HSBC Infrastructure Equity Fund has given 24.41% annualized returns in the past three years and 3.43% in the last 5 years. The HSBC Infrastructure Equity Fund belongs to the Equity category of HSBC Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in HSBC Infrastructure Equity Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹121Cr |
| 1Y Returns | 9.2% |
Fund Performance: The HSBC Global Emerging Markets Fund has given 0.91% annualized returns in the past three years and 2.73% in the last 5 years. The HSBC Global Emerging Markets Fund belongs to the Other category of HSBC Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in HSBC Global Emerging Markets Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹22Cr |
| 1Y Returns | 5.5% |
Fund Performance: The HSBC Managed Solutions India Growth Fund has given 21.12% annualized returns in the past three years and 13.11% in the last 5 years. The HSBC Managed Solutions India Growth Fund belongs to the Other category of HSBC Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in HSBC Managed Solutions India Growth Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹38Cr |
| 1Y Returns | 19.7% |
Fund Performance: The HSBC Managed Solutions India Moderate Fund has given 17.94% annualized returns in the past three years and 11.97% in the last 5 years. The HSBC Managed Solutions India Moderate Fund belongs to the Other category of HSBC Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in HSBC Managed Solutions India Moderate Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹58Cr |
| 1Y Returns | 17.3% |
Fund Performance: The HSBC Flexi Cap Fund has given 23.7% annualized returns in the past three years and 13.83% in the last 5 years. The HSBC Flexi Cap Fund belongs to the Equity category of HSBC Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in HSBC Flexi Cap Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹3,534Cr |
| 1Y Returns | 25.7% |
Fund Performance: The HSBC Asia Pacific (Ex Japan) Dividend Yield Fund has given 5.34% annualized returns in the past three years and 4.42% in the last 5 years. The HSBC Asia Pacific (Ex Japan) Dividend Yield Fund belongs to the Other category of HSBC Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in HSBC Asia Pacific (Ex Japan) Dividend Yield Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹8Cr |
| 1Y Returns | 11.8% |
Fund Performance: The HSBC Tax Saver Equity Fund has given 16.59% annualized returns in the past three years and 9.8% in the last 5 years. The HSBC Tax Saver Equity Fund belongs to the Equity category of HSBC Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in HSBC Tax Saver Equity Fund via lump sum is ₹500 and via SIP is ₹500.
| Min Investment Amt | ₹500 |
|---|---|
| AUM | ₹195Cr |
| 1Y Returns | 4.2% |
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