HSBC Mutual Fund was established on 27th May 2002 has an asset under management of Rs. 10621.84 crore (As of June 2018)
The asset management company believes in providing well-engineered products to its customers and they also target on developing an adequate solution base for their client.
The motto of the company is to connect customers to companies, so that their investor community may prosper. HSBC claims to work in a goal oriented format to bring about the best possible financial services to its investors. In this regard, HSBC offers a wide array of mutual funds across various categories so that may appeal to investors irrespective of their risk appetite, investment duration and even salary.
With a global presence in 26 locations, HSBC aims to bring about the best possible investment service to retail investors.
If we allocate 65 to 80 percent of a fund to equity and assign remaining to debt and similar instruments, then what we get in return is a Hybrid-Equity fund. These funds allow you to enjoy good returns and low-risk rates courtesy their significant allocation in debt funds. Market gurus believe that it is better to invest in these than to go for an equity-debt portfolio as there is no tax imposed on the debt funds in the mix. It has returns that are taxed at 15% if sold before one year, post this period a 10% tax is applicable on the gains.
Purpose: Invest in these funds instead of buying a different kind of equity-debt funds with 60-40 allocations. These funds are best to moderate your risk with a fair return in the high-risk portfolio.
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Fund Performance: This fund has consistently beaten its benchmark in Conservative segment and provided 6.73% annualized returns in the last 3 years. In the last 1 year, it gave 0.55% returns.
Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 0.55% returns in the last 1 year. Groww rated this fund as 2 Star. This is one of the best Hybrid mutual fund in India.
Fund Manager: Sanjay Shah, Aditya Khemani
|Launch Date||10 Jan 2013|
|Min Investment Amt||₹10,000|
— Registered with SEBI, AMFI & BSE
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Suppose a mutual fund invests in ten stocks and total current market value of these stocks is 1.1 Crore. Out of this, the AMC deducts say, 0.1 Crore for operating the fund (this is known as the expense ratio). So the net value is 1 crore. Now the AMC will divide this 1 Crore into say, 10,000 parts. These parts are known as units. The cost of one unit is 1Cr/10,000 = Rs. 1000. This is known as the Net Asset Value (NAV) of the mutual fund. Suppose the AMC has set a minimum investment requirement of Rs. 500. Then if you pay Rs. 500, you will get 0.5 units of the fund. Remember that the cost of one unit is the cost when you made the purchase. Suppose after one year, the NAV has fallen to Rs. 700 per unit and you wish to exit the fund (also known as redemption), then you sell your 0.5 units back to the AMC and get 0.5 x Rs. 700 = Rs. 350 back. Yes, you invested Rs. 500 and got back Rs. 350 – a loss of 150 over a year. The point is, that you buy units at current NAV and sell units (fully or partially) at current NAV. This is what investing in mutual fund actually means.
One of the best ways to hedge against the small-cap volatility is to adopt a phased approach, also known as Systematic Investment Plan (SIP) approach. We are sure that you must be aware of SIP and its benefits. Buying in small quantity but buying regularly provides you with faster growth. On Groww.in, all transactions to and from AMC is done via BSE. When you decide to invest in a large cap mutual fund of your choice, you choose that mutual fund on the website and click ‘invest’. Following that, you are redirected to the BSE page where you make the payment. BSE then directs your money to the AMC managing your mutual fund. To be assured at your end, you can visit the individual AMC website after the payment. You would be able to see all your purchased units against your folio number.
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