€¦ · Our current exposure is 14.09% in HMIP Regular and 24.51%, in HMIP Savings. Currently it is more biased towards large caps than mid/small caps. The equity portfolio of HMIP-S

HSBC Global Asset Management

The AssetFactsheet - October 2011

Index

1

In this Issue ...

Fund Manager’s Comments - Equity & MIP Pg 2

Fund Manager’s Comments - Debt Pg 5

HSBC Equity Fund Pg 6

HSBC India Opportunities Fund Pg 8

HSBC Midcap Equity Fund Pg 10

HSBC Progressive Themes Fund Pg 12

HSBC Tax Saver Equity Fund Pg 14

HSBC Unique Opportunities Fund Pg 16

HSBC Dynamic Fund Pg 18

HSBC Emerging Markets Fund Pg 20

HSBC Small Cap Fund Pg 21

HSBC Brazil Fund Pg 23

Fund Managers - Equity Pg 24

Comparative Performance of Equity Schemes Pg 26

HSBC MIP - Savings Plan Pg 29

HSBC MIP - Regular Plan Pg 31

HSBC Income Fund - Investment Plan Pg 33

HSBC Income Fund - Short Term Plan Pg 35

HSBC Floating Rate Fund - Long Term Plan Pg 37

HSBC Cash Fund Pg 39

HSBC Gilt Fund Pg 41

HSBC Ultra Short Term Bond Fund Pg 42

HSBC Flexi Debt Fund Pg 44

Fund Managers - MIP & Debt Pg 46

Comparative Performance of MIP & Debt Schemes Pg 48

Fund Manager’s Comments - Equity & MIP HSBC Mutual FundOctober 2011

2

Equity markets continue to decline in October 2011

On one hand while the strong advance of large cap stocks in October 2011 saw the Sensex gain 7.6% at the same BSE Mid and Small cap indices grew in the same period by 2.7% and 1.4% respectively.

Large caps rebound strongly in October

Source: BSE (Bombay Stock Exchange)

During October 2011 while Foreign Institutional Investors (FII) were net buyers to the tune of USD 325 million at the same time Mutual Funds were net sellers to the tune USD 75 million.

We seem to be close to the peak of the interest rate cycle

With steep increases across categories of food articles, primary articles and manufactures goods, Wholesale Price Index (WPI) inflation remained high at 9.7% YoY for the month of September 2011 (as against 9.8% in August 2011).

Source: Bloomberg ; CSO (Central Statistical Organization), India

Decreased demand now being more accurately reflected in weaker IIP growth numbers

The Index of Industrial Production (IIP) continued to disappoint, growing by only 4.1% in August 2011 on a YoY basis, implying two consecutive months of tepid growth, after July 2011 YoY growth of 3.3%.

Source: Bloomberg ; CSO (Central Statistical Organization), India

7.6% 6.8% 6.3% 5.9% 2.7% 1.4%

-3.0%

-1.0%

1.0%

3.0%

5.0%

7.0%

9.0%

Sensex BSE100 BSE200 BSE500 MidCap SmallCap

Oct-11

Wholesale Price Index Inflation (WPI)

9.7%

9.2%

9.5%9.8%

10.3%

9.1%

8.7%9.7%

9.5%

9.5%

9.5%

8.2%

9.1%

9.0%

8.9%10.0%

7.0%

8.0%

9.0%

10.0%

11.0%

Jun-10

Jul-10

Aug-10

Sep-10

Oct-10

Nov-10

Dec-10

Jan-11

Feb-11

Mar-11

Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

WPI YoY grow th (New series; base 2004-05)

Index of Industrial Production (IIP)

8.8%

4.1%

6.3%

5.9%

3.3%

6.5%

11.4%10.0%

7.5%

8.5% 8.8%

7.5%

8.1%

6.4%

6.2%

4.5%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

May-10

Jun-10

Jul-10

Aug-10

Sep-10

Oct-10

Nov-10

Dec-10

Jan-11

Feb-11

Mar-11

Apr-11

May-11

Jun-11

Jul-11

Aug-11

IIP YoY Grow th (New Series; base 2004- 05)

Nearing the peak of the interest rate cycle

With the recent 25 bps increase in policy rates by the RBI, we are very close to the peak of the interest rate tightening cycle. RBI in its policy statement mentioned that, “…inflation rate will begin falling in December 2011 (January 2012 release) and then continue down a steady path to 7 per cent by March 2012… if the inflation trajectory conforms to projections, further rate hikes may not be warranted”.

Source: Reserve Bank of India ( RBI)

Global Economic Scenario

Focus on European sovereign debt crisis resolution

Turmoil in the European Union (EU) continues to plague global equity markets. While Germany’s increased contribution to the European Financial Stability Fund (EFSF) and the recent haircut for Greek bondholders has given confidence to investors in the month of October 2011, however the structure of the debt relief deal and the responsiveness of debt-laden countries like Greece will remain key aspects to monitor.

Going Forward

We remain cautious on the events unfolding in Europe which reflects in our portfolio construct. Stress in the Eurozone has not been fully reflected into existing valuations. An easing interest rate scenario should create a good backdrop for a sustained rally in domestic equity markets. In the event of a concrete resolution in the Eurozone, we could see a very sharp rally in world markets, a possibility we cannot ignore.


3

Repo Rate Movement

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

Jul-07

Oct-07

Jan-08

Apr-08

Jul-08

Oct-08

Jan-09

Apr-09

Jul-09

Oct-09

Jan-10

Apr-10

Jul-10

Oct-10

Jan-11

Apr-11

Jul-11

Oct-11

Repo Rate


4

Review: HSBC Progressive Themes FundCurrently focusing on the following themes: a. Economic Reforms (28.3%) which includes Banking - 14.7%, Oil & Gas Sector deregulation - 5%, opening of FDI/Disinvestment sub theme 8.6%. b. Infrastructure (32.2%) which includes Power - 8.6%, Construction - 20.3% and Logistics - 3.3%. Well-diversified exposure across sectors encompassing the above themes.

Review: HSBC Dynamic FundThe cash levels and sector allocation in the fund are likely to change depending on market conditions and technical factors. We are overweight Industrials, Information Technology, Energy, Pharma, Telecommunication and underweight Consumer Discretionary, Financials, Consumer Staples, Materials, Real Estate.

Review: HSBC MIP Regular and Savings PlansOur current exposure is 14.09% in HMIP Regular and 24.51%, in HMIP Savings. Currently it is more biased towards large caps than mid/small caps. The equity portfolio of HMIP-S used to be predominantly mid and small caps a year back. But since this segment of the market tends to be more volatile in uncertain times, we intended to progressively increase the exposure to large caps keeping in view the risk tolerance of investors in this fund.

Review: HSBC Midcap Equity FundBeing overweight Information Technology and underweight Financials helped and underweight Materials and Energy hurt performance.

Sectors HSBC Equity Fund

HSBC India Opportunities

Fund

HSBCMidcap

Equity FundConsumer Discretionary Consumer Staples = Energy Financials Healthcare = Industrials = Information Technology Materials Telecommunication Utilities =

Overweight Underweight = Neutral

Review: HSBC India Opportunities FundBeing overweight Consumer Discretionary, Information Technology, Energy and underweight Financials helped performance and underweight Materials hurt performance.

Review: HSBC Equity FundBeing overweight Energy, Information Technology and underweight Financials helped performance while being underweight Consumer Discretionary hurt performance.

Market Assessment

The quarterly review of the Reserve Bank of India (RBI) credit policy hogged the limelight through the second half of October 2011 wherein the RBI raised benchmark rates by 25 bps. Although, the RBI indicated high probability of a pause in December 2011, yields may continue to remain impacted by the higher borrowing programme.

Economic Data

Quarterly review of RBI Monetary Policy

The RBI announced its Second Quarter Review of Monetary Policy 2011-12 on 25th October, 2011. As widely expected, the RBI increased benchmark repo rate (rate at which RBI lends to banks) by 25 bps making it 8.50%. In addition, the RBI has revised its GDP growth projections for FY12 downward to 7.6% (from 8%) and maintained its Wholesale Price Inflation (of 7% by March 2012), M3 growth (15.5%) and non-food credit growth (18%) projections.

Surprisingly, the RBI has provided guidance of a low probability to the likelihood of a rate action in the December 2011 mid-quarter review. The RBI has provided rate guidance giving due consideration to the significant risks to growth and its expectation of inflation to start tapering in December 2011 (to 7% by March 2012) and moderate further in FY13. We find the timing of such guidance a bit surprising as even though there is some moderation in growth due to previous rate actions and the current global environment. However, many factors negatively influencing inflation expectations persist and the direction of some factors remain uncertain.

Market Activity

G-Sec yields harden on higher borrowing

Sovereign yields have continued to remain under pressure post the announcement of higher borrowing by the government. High expectations of replacement of liquid securities also fueled the rise in yields as the benchmark 10- year G-sec traded as high as 8.95%. The RBI tends to replace the stocks as their total issuance nears Rs.65, 000–70,000 crores.

Long end bonds continued to remain well bid on the back of demand from the end investors leading to further flattening of the yield curve as 10–29 year bonds traded at spreads as low as 7 bps.

Corporate bonds benefit from FII auctions and lack of supply

The recently allocated FII limits brought in renewed demand for short term bonds, suiting issuer appetite for short tenor issuances in the context of peaking of interest rate cycle. Supply at longer end of the curve remained muted leading further flattening of credit spreads.

Money market rates ease…

Money market rates eased toward the end of the month on the expectation of improvement in systemic liquidity post the festive season.

Global Economic Scenario

Global weakness looks here to stay

Global markets continued to remain fragile on the back of ongoing concerns in the Euro region. The new president of the European Central Bank (ECB), Mario Draghi, responded to the recent developments in the region by cutting rates from 1.50% to 1.25%. Amidst the lowering of rates by ECB, the political crisis aggravated in Greece, the sound bites from the G20 meet led to further nervousness in the region as Italian yields traded at Euro-era highs.Comments by German chancellor Angela Merkel, that there was little appetite among G20 nations for them to invest heavily in the European Financial Stability Facility, raised fears that the bail-out fund would not have the firepower necessary to stop sovereign debt contagion spreading to the likes of Italy.

US economic data releases remained balanced. Manufacturing growth for the month of October 2011 remained sluggish as indicated by the Purchase Managers Index dropped to 50.8 from 51.6 during September 2011. Jobs data printed stable numbers as the unemployment rate edged down from 9.1% to 9.0%.

Going Forward

The RBI appears to be softening its anti-inflationary stance and clearly guiding the markets to a pause, given a build-up of significant risks to growth – indicating that we are near to peak in the current interest rate cycle. As global events unfold, further bouts of liquidity easing could entail upside pressure on commodities leading to lesser impact of global slowdown on crude prices. We expect sovereign and credit yields to move lower progressively, albeit capped by increased issuances pressure.

Long-end funds will look to selectively build duration as expectations of open market operations by the RBI build up in the markets and help keep G-sec yields in check. Short-end funds will also look to selectively increase duration as we near the peak in the rate hiking cycle.

Fund Manager’s Comments - Debt HSBC Mutual FundOctober 2011

5

An Open Ended Diversified Equity SchemeInvestment Objective: Aims to generate long term capital growth from an actively managed portfolio of equity and equity related securities.

Issuer Market Value(` in Lacs)

% to NetAssets

Auto Hero Motocorp 1,210.69 1.59%Banks HDFC Bank 6,174.00 8.09%ICICI Bank 3,352.14 4.39%State Bank of India 2,401.94 3.15%Punjab National Bank 1,405.80 1.84%Consumer Non DurablesITC 5,083.63 6.66%GlaxoSmithkline Consumer Healthcare 2,120.94 2.78%Construction ProjectLarsen & Toubro 3,179.59 4.17%Ferrous Metals Tata Steel 1,303.56 1.71%Fertilisers Coromandel International 1,014.18 1.33%Finance HDFC 3,471.80 4.55%Fixed DepositsHSBC Bank** 1,800.00 2.36%HSBC Bank** 1,800.00 2.36%Gas Gail (India) 1,141.83 1.50%Industrial Capital GoodsBharat Heavy Electricals 2,860.20 3.75%Media & Entertainment Zee Entertainment Enterprises 856.94 1.12%Minerals/Mining Coal India 1,643.40 2.15%Non Ferrous Metals Hindustan Zinc 2,712.96 3.55%Oil Oil & Natural Gas Corporation 2,498.85 3.27%Cairn India 1,551.16 2.03%Petroleum Products Reliance Industries 4,896.73 6.42%Bharat Petroleum Corporation 1,117.41 1.46%Pharmaceuticals Dr Reddy’s Laboratories 1,653.99 2.17%Cadila Healthcare 1,033.29 1.35%Software Infosys 5,179.59 6.79%Tata Consultancy Services 3,113.08 4.08%Telecom Services Bharti Airtel 3,173.58 4.16%Textile ProductsGrasim Industries 3,571.85 4.68%

HSBC Equity Fund (HEF) HSBC Mutual FundOctober 2011

6


% to NetAssets

Future and OptionsFut Tata Consultancy Services - Nov 2011 2,115.57 2.77%Fut Power Finance Corporation - Nov 2011 381.15 0.50%Total 96.71%Other Equity Investments 364.38 0.48%CBLOs 2,160.62 2.83%Reverse Repos 1,401.80 1.84%Net Current Assets -1,416.07 -1.86%Total Net Assets as on 31 October 2011 76,330.59 100.00%

** Fixed deposits are placed as margin Deposit for Futures, Options and Equities.

Asset AllocationAuto 1.59%Banks 17.47%Consumer Non Durables 9.44%Construction Project 4.17%Ferrous Metals 1.71%Fertilisers 1.33%Finance 4.55%Fixed Deposits 4.72%Gas 1.50%Industrial Capital Goods 3.75%Media & Entertainment 1.12%Minerals/Mining 2.15%Non - Ferrous Metals 3.55%Oil 5.31%Petroleum Products 7.88%Pharmaceuticals 3.52%Software 10.86%Telecom - Services 4.16%Textile Products 4.68%Other Equity Investments 0.48%Future and Options 3.27%Reverse Repos/CBLOs 4.67%Net Current Assets -1.86%Total Net Assets 100.00%

Dividend DeclarationRecord Date / period of

dividend declaredDividend (` per unit)

Non-InstitutionalDividend (` per unit)

InstitutionalNAV per unit

(cum dividend)HSBC Equity Fund - Dividend11-Dec-09 2.50 2.50 29.407328-May-10 1.50 1.50 26.691119-Nov-10 2.00 2.00 29.3244

Date of Allotment 10-Dec-02Benchmark BSE 200NAV (Growth) per unit(as on 31.10.11)

` 95.9144

Fund Manager Tushar Pradhan & Jitendra Sriram

SIP AvailableMinimumApplicationAmount

` 10,000` 1,000 (SIP)

Exit Load@ 1% - if redeemed/ switched out$ within 1 year from date of investment; otherwise Nil.

Statistical RatiosStandard Deviation 1.04%R-Squared 0.9435Beta (Slope) 0.7831Sharpe Ratio 0.0068Annualised Expense Ratio from 01 April 2011 onwards 2.10%Portfolio Turnover 1.09

Statistical ratios disclosed as per daily returns of the last 3 years/since inception, whichever is later. @ Including SIP/STP where applicable. $ No load in case of switches between equity schemes of HSBC Mutual Fund.

HSBC Equity Fund (HEF) HSBC Mutual FundOctober 2011

7

An Open Ended Flexi-Cap Equity SchemeInvestment Objective: Seeks long term capital growth through investments across all market capitalisations, including small, mid and large cap stocks. It aims to be predominantly invested in equity & 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.


% to NetAssets

Auto Eicher Motors 410.93 2.49%Hero Motocorp 298.82 1.81%Auto Ancillaries Bosch 1,498.68 9.08%Banks HDFC Bank 970.20 5.88%ICICI Bank 670.43 4.06%Bank of Baroda 555.23 3.36%State Bank of India 463.23 2.81%Cement Shree Cement 255.96 1.55%Consumer Non Durables I T C 863.26 5.23%Construction Project Larsen & Toubro 635.92 3.85%Fertilisers Coromandel International 359.53 2.18%Finance HDFC 681.96 4.13%CRISIL 397.31 2.41%Fixed DepositsHSBC Bank** 800.00 4.85%HSBC Bank** 200.00 1.21%Industrial Capital GoodsBharat Heavy Electricals 514.84 3.12%Minerals/Mining Coal India 209.16 1.27%Non - Ferrous Metals Hindustan Zinc 248.69 1.51%Oil Oil & Natural Gas Corporation 449.79 2.72%Cairn India 322.16 1.95%Petroleum Products Reliance Industries 947.75 5.74%Bharat Petroleum Corporation 224.14 1.36%Pharmaceuticals Aventis Pharma 421.67 2.55%Divi's Laboratories 275.43 1.67%Dr Reddy's Laboratories 225.54 1.37%Software Infosys 971.17 5.88%Tata Consultancy Services 602.53 3.65%Info Edge (India) 368.09 2.23%Telecom - ServicesBharti Airtel 528.93 3.20%Textile ProductsLovable Lingerie 176.15 1.07%Future and OptionsFut Tata Consultancy Services - Nov 2011 453.34 2.75%Fut Power Finance Corporation - Nov 2011 272.25 1.65%Total 98.56%

HSBC India Opportunities Fund (HIOF) HSBC Mutual FundOctober 2011

8


% to NetAssets

Other Equity Investments 135.43 0.82%CBLOs 257.11 1.56%Reverse Repos 166.81 1.01%Net Current Assets -321.64 -1.95%Total Net Assets as on 31 October 2011 16,510.79 100.00%

** Fixed deposits are placed as margin Deposit for Futures, Options and Equities.^^ This security is fair valued.

Asset AllocationAuto 4.30%Auto Ancillaries 9.08%Banks 16.11%Cement 1.55%Consumer Non Durables 5.23%Construction Project 3.85%Fertilisers 2.18%Finance 6.54%Fixed Deposits 6.06%Industrial Capital Goods 3.12%Minerals/Mining 1.27%Non - Ferrous Metals 1.51%Oil 4.68%Petroleum Products 7.10%Pharmaceuticals 5.59%Software 11.76%Telecom - Services 3.20%Textile Products 1.07%Other Equity Investments 0.82%Future and Options 4.39%Reverse Repos/CBLOs 2.57%Net Current Assets -1.95%Total Net Assets 100.00%





(cum dividend)HSBC India Opportunities Fund - Dividend24-Mar-08 1.00 1.00 16.406511-Dec-09 1.00 1.00 16.901319-Nov-10 1.00 1.00 18.2313

Date of Allotment 24-Feb-04Benchmark BSE 500NAV (Growth) per unit(as on 31.10.11)

` 33.5537


SIP AvailableMinimumApplication Amount

` 10,000` 1,000 (SIP)




HSBC India Opportunities Fund (HIOF) HSBC Mutual FundOctober 2011

9

An Open Ended Diversified Equity SchemeInvestment Objective: Seeks to generate long term capital growth from an actively managed portfolio of equity and equity related securities primarily being midcap stocks. However, it could move a portion of its assets towards fixed income securities if the fund manager becomes negative on the Indian equity markets.


% to NetAssets

Auto Eicher Motors 236.75 2.03%Auto Ancillaries Autoline Industries 285.93 2.45%Wabco - TVS (India) 257.26 2.20%Federal-Mogul Goetze (India) 186.89 1.60%Banks The Jammu & Kashmir Bank 549.58 4.71%Dena Bank 354.90 3.04%State Bank of Bikaner and Jaipur 193.84 1.66%State Bank of Travancore 163.05 1.40%Union Bank of India 158.13 1.35%Construction Kajaria Ceramics 190.73 1.63%Consumer Durables Tube Investments of India 391.58 3.35%Hitachi Home & Life Solutions (India) 355.01 3.04%Bajaj Electricals 272.79 2.34%Consumer Non DurablesKRBL 549.34 4.70%Venky’s (India) 507.50 4.34%Gujarat Ambuja Exports 330.95 2.83%Godfrey Philips India Ltd 181.13 1.55%Fixed DepositsHSBC Bank** 320.00 2.74%Industrial Capital GoodsNumeric Power Systems 198.38 1.70%Industrial Products Diamond Power Infrastructure 287.54 2.46%Polyplex Corporation 219.23 1.88%Media & EntertainmentPrime Focus 562.25 4.81%Minerals/Mining Gujarat Mineral Development Corporation 427.94 3.66%PesticidesPI Industries 788.46 6.75%Power Power Trading Corporation of India 246.75 2.11%BF Utilities 142.72 1.22%Software Nucleus Software Exports 118.04 1.01%Textile Products Aditya Birla Nuvo 400.61 3.43%Textile CottonVardhman Textiles 236.89 2.03%

HSBC Midcap Equity Fund (HMEF) HSBC Mutual FundOctober 2011

10


% to NetAssets

Textile Synthetic Bombay Dyeing & Manufacturing Company 950.50 8.14%Transportation Jet Airways (India) 319.36 2.73%Future and Options Fut Polaris - Nov 2011 501.84 4.30%Fut Voltas - Nov 2011 225.68 1.93%Fut Apollo Tyres - Nov 2011 225.62 1.93%Fut Power Trade Corporation - Nov 2011 150.63 1.29%Total 98.35%Other Equity Investments ^^ 438.19 3.75%CBLOs 402.68 3.45%Reverse Repos 261.25 2.24%Net Current Assets -909.30 -7.78%Total Net Assets as on 31 October 2011 11,680.64 100.00%

** Fixed deposits are placed as margin Deposit for Futures, Options and Equities.^^ contains thinly traded / non traded and illiquid securities as defined in SEBI Regulations and Guidelines.

Asset AllocationAuto 2.03%Auto Ancillaries 6.25%Banks 12.15%Construction 1.63%Consumer Durables 8.73%Consumer Non Durables 13.43%Fixed Deposits 2.74%Industrial Capital Goods 1.70%Industrial Products 4.34%Media & Entertainment 4.81%Minerals/Mining 3.66%Pesticides 6.75%Power 3.33%Software 1.01%Textile Products 3.43%Textile - Cotton 2.03%Textile - Synthetic 8.14%Transportation 2.73%Other Equity Investments 3.75%Future and Options 9.45%Reverse Repos/CBLOs 5.68%Net Current Assets -7.78%Total Net Assets 100.00%





(cum dividend)HSBC Midcap Equity Fund - Dividend24-Mar-08 0.75 0.75 13.379711-Dec-09 1.00 1.00 13.892719-Nov-10 2.00 2.00 15.4864

Date of Allotment 19-May-05Benchmark BSE MidcapNAV (Growth) per unit(as on 31.10.11)

` 17.7065

Fund Manager Dhiraj SachdevSIP AvailableMinimumApplicationAmount

` 10,000` 1,000 (SIP)




HSBC Midcap Equity Fund (HMEF) HSBC Mutual FundOctober 2011

11

An Open Ended Flexi-Theme Equity SchemeInvestment Objective: Seeks to generate long term capital growth from an actively managed portfolio of equity and equity related securities by investing primarily in sectors, areas and themes that play an important role in, and/or benefit from India’s progress, reform process and economic development.


% to NetAssets

Auto Tata Motors DVR 536.75 3.02%Bajaj Auto 380.58 2.14%Auto Ancillaries Apollo Tyres 236.74 1.33%Banks The Jammu & Kashmir Bank 909.88 5.11%ICICI Bank 791.48 4.45%The Karnataka Bank 453.35 2.55%Union Bank of India 316.26 1.78%IDBI Bank 290.16 1.63%Construction Kajaria Ceramics 1,485.70 8.35%Gammon Infrastructure Projects 237.35 1.33%Consumer Non DurablesGujarat Ambuja Exports 254.65 1.43%Construction ProjectLarsen & Toubro 480.47 2.70%Finance IFCI 448.12 2.52%Rane Holdings 408.00 2.29%Infrastructure Development Finance Company 291.50 1.64%Gas Petronet LNG 277.35 1.56%Industrial Products FAG Bearings India 1,452.42 8.16%Polyplex Corporation 374.33 2.10%Diamond Power Infrastructure 374.18 2.10%Media & EntertainmentPrime Focus 550.33 3.09%Non - Ferrous Metals Hindustan Zinc 263.76 1.48%Petroleum Products Indian Oil Corporation 253.75 1.43%Hindustan Petroleum Corporation 219.88 1.24%Pharmaceuticals Aurobindo Pharma 320.50 1.80%Power Power Trading Corporation of India 528.75 2.97%Reliance Infrastructure 417.87 2.35%Software Tata Consultancy Services 401.69 2.26%Polaris Software Lab 395.55 2.22%Textile Products Aditya Birla Nuvo 283.58 1.59%Textile Cotton Vardhman Textiles 474.29 2.66%Textile Synthetic Bombay Dyeing & Manufacturing Company 1,169.53 6.57%Transportation Balmer Lawrie & Company 324.52 1.82%Jet Airways (India) 205.27 1.15%

HSBC Progressive Themes Fund (HPTF) HSBC Mutual FundOctober 2011

12


% to NetAssets

Future and OptionsFut Polaris - Nov 2011 487.08 2.74%Fut Power Trade Corporation - Nov 2011 215.99 1.21%Fut Apollo Tyres - Nov 2011 186.08 1.05%Fut Petronet LNG - Nov 2011 146.48 0.82%Total 94.62%Other Equity Investments^^ 841.20 4.73%CBLOs 546.66 3.07%Reverse Repos 354.67 1.99%Net Current Assets -784.35 -4.41%Total Net Assets as on 31 October 2011 17,802.32 100.00%

^^ contains thinly traded / non traded and illiquid securities as defined in SEBI Regulations and Guidelines.

Asset AllocationAuto 5.15%Auto Ancillaries 1.33%Banks 15.51%Construction 9.68%Construction Project 2.70%Consumer Non Durables 1.43%Finance 6.45%Gas 1.56%Industrial Products 12.36%Media & Entertainment 3.09%Non - Ferrous Metals 1.48%Petroleum Products 2.66%Pharmaceuticals 1.80%Power 5.32%Software 4.48%Textile Products 1.59%Textile - Cotton 2.66%Textile - Synthetic 6.57%Transportation 2.98%Other Equity Investments 4.73%Future and Options 5.82%Reverse Repos/CBLOs 5.06%Net Current Assets -4.41%Total Net Assets 100.00%





(cum dividend)HSBC Progressive Themes Dividend11-May-07 1.00000 1.00000 12.239026-May-08 1.00000 1.00000 13.7160

Date of Allotment 23-Feb-06Benchmark BSE 200NAV (Growth) per unit(as on 31.10.11)

` 10.502

Fund Manager Dhiraj Sachdev &Jitendra Sriram


` 10,000` 1,000 (SIP)


Statistical RatiosStandard Deviation 1.22%R-Squared 0.8435Beta (Slope) 0.8686Sharpe Ratio -0.0186Annualised Expense Ratio from 01 April 2011 onwards 2.37%Portfolio Turnover 2.64


HSBC Progressive Themes Fund (HPTF) HSBC Mutual FundOctober 2011

13

An Open Ended Equity Linked Savings Scheme (ELSS)Investment Objective: Aims to provide long term capital appreciation by investing in a diversified portfolio of equity & equity related instruments of companies across various sectors and industries, with no capitalisation bias. The Fund may also invest in fixed income securities.


% to NetAssets

Auto Eicher Motors 456.58 2.13%Hero Motocorp 272.67 1.27%Auto Ancillaries Bosch 832.60 3.89%Exide Industries 366.52 1.71%Motherson Sumi Systems 306.12 1.43%Banks HDFC Bank 1,234.80 5.77%ICICI Bank 963.74 4.50%Bank of Baroda 627.33 2.93%State Bank of India 400.32 1.87%Cement Shree Cements 464.43 2.17%Construction Sadbhav Engineering 572.83 2.68%Construction Project Larsen & Toubro 763.10 3.57%Consumer Non DurablesI T C 1,119.04 5.23%GlaxoSmithkline Consumer Healthcare 530.24 2.48%Mcleod Russel India 386.19 1.80%Ferrous Metals Tata Steel 277.76 1.30%Fertilisers Coromandel International 501.10 2.34%Finance HDFC 702.63 3.28%Power Finance Corporation 364.38 1.70%Rural Electrification Corporation 270.83 1.27%Industrial Capital GoodsBharat Heavy Electricals 286.02 1.34%Media & Entertainment Zee Entertainment Enterprises 227.57 1.06%Minerals/Mining Coal India 331.41 1.55%Non - Ferrous Metals Hindustan Zinc 505.95 2.36%Oil Oil & Natural Gas Corporation 599.72 2.80%Petroleum Products Reliance Industries 1,184.69 5.53%Bharat Petroleum Corporation 336.20 1.57%Pharmaceuticals Divi's Laboratories 484.64 2.26%Dr Reddy's Laboratories 451.09 2.11%Lupin 423.18 1.98%Software Tata Consultancy Services 1,338.96 6.26%Infosys 1,323.67 6.18%Telecom - Services Bharti Airtel 753.82 3.52%

HSBC Tax Saver Equity Fund (HTSF) HSBC Mutual FundOctober 2011

14

Date of Allotment 05-Jan-07Benchmark BSE 200NAV (Growth) per unit(as on 31.10.11)

` 13.4384

Fund Manager Jitendra Sriram &Aditya Khemani


` 500(Lumpsum & SIP)

Exit Load@ NilStatistical Ratios

Standard Deviation 1.04%R-Squared 0.9092Beta (Slope) 0.7728Sharpe Ratio 0.0197Annualised Expense Ratio from 01 April 2011 onwards 2.36%Portfolio Turnover 0.69

Statistical ratios disclosed as per daily returns of the last 3 years/since inception, whichever is later. @ Including SIP/STP where applicable.


% to NetAssets

Textile ProductsGrasim Industries 372.07 1.74%Total 93.59%Other Equity Investments^^ 149.73 0.70%CBLOs 722.11 3.37%Reverse Repos 468.50 2.19%Net Current Assets 31.71 0.15%Total Net Assets as on 31 October 2011 21,404.27 100.00%

Asset AllocationAuto 3.41%Auto Ancillaries 7.03%Banks 15.07%Cement 2.17%Construction 2.68%Construction Project 3.57%Consumer Non Durables 9.51%Ferrous Metals 1.30%Fertilisers 2.34%Finance 6.25%Industrial Capital Goods 1.34%Media & Entertainment 1.06%Minerals/Mining 1.55%Non - Ferrous Metals 2.36%Oil 2.80%Petroleum Products 7.11%Pharmaceuticals 6.35%Software 12.44%Telecom - Services 3.52%Textile Products 1.74%Other Equity Investments 0.70%Reverse Repos/CBLOs 5.56%Net Current Assets 0.15%Total Net Assets 100.00%

^^ Contains thinly traded / non traded and illiquid securities as defined in SEBI Regulations and Guidelines.





(cum dividend)HSBC Tax Saver Equity Dividend19-Feb-10 1.00 1.00 12.8713

HSBC Tax Saver Equity Fund (HTSF) HSBC Mutual FundOctober 2011

15

An Open Ended Equity SchemeInvestment Objective: To provide long-term capital growth from a diversified portfolio of equity and equity related instruments. The focus would be to invest in stocks of companies facing “out-of-ordinary” conditions.


% to NetAssets

Auto Hero Motocorp 98.16 1.35%Auto Ancillaries Bosch 187.34 2.58%Steel Strips Wheels 110.18 1.52%Exide Industries 76.36 1.05%Banks ICICI Bank 335.21 4.62%Bank of Baroda 300.75 4.14%The Jammu and Kashmir Bank 231.69 3.19%HDFC Bank 176.40 2.43%State Bank of India 137.25 1.89%Allahabad Bank 107.93 1.49%Consumer Non DurablesI T C 345.30 4.76%Construction Project Larsen & Toubro 228.93 3.15%Finance HDFC 247.99 3.42%Rural Electrification Corporation 146.25 2.01%Power Finance Corporation 134.96 1.86%Fixed DepositsHSBC Bank** 300.00 4.13%Industrial Capital GoodsBharat Heavy Electricals 143.01 1.97%Industrial Products Greaves Cotton 195.91 2.70%Carborundum Universal 113.54 1.56%Media & Entertainment UTV Software Communications 194.40 2.68%Zee Entertainment Enterprises 80.87 1.11%Minerals/Mining Coal India 149.40 2.06%Non - Ferrous Metals Hindustan Zinc 170.31 2.35%Oil Oil & Natural Gas Corporation 199.91 2.75%Petroleum Products Reliance Industries 434.39 5.98%Bharat Petroleum Corporation 130.75 1.80%Pharmaceuticals Divi's Laboratories 267.83 3.69%Lupin 211.59 2.91%Software Infosys 466.16 6.42%Oracle Financial Services Software 105.64 1.46%Tata Consultancy Services 104.33 1.44%Textile ProductsGrasim Industries 198.44 2.73%

HSBC Unique Opportunities Fund (HUOF) HSBC Mutual FundOctober 2011

16


% to NetAssets

Future and OptionsFut Tata Consultancy Services - Nov 11 352.60 4.86%Fut Bharti Televenture - Nov 11 216.65 2.98%Fut HDFC - Nov 11 31.11 0.43%Total 95.47%Other Equity Investments^^ 70.22 0.97%CBLOs 368.69 5.08%Reverse Repos 239.20 3.30%Net Current Assets -350.25 -4.82%Total Net Assets as on 31 October 2011 7,259.36 100.00%

** Fixed deposits are placed as margin Deposit for Futures, Options and Equities. ^^ Contains thinly traded / non traded and illiquid securities as defined in SEBI Regulations and Guidelines.

Asset AllocationAuto 1.35%Auto Ancillaries 5.15%Banks 17.76%Consumer Non Durables 4.76%Construction Project 3.15%Finance 7.29%Fixed Deposits 4.13%Industrial Capital Goods 1.97%Industrial Products 4.26%Media & Entertainment 3.79%Minerals/Mining 2.06%Non - Ferrous Metals 2.35%Oil 2.75%Petroleum Products 7.78%Pharmaceuticals 6.60%Software 9.31%Textile Products 2.73%Other Equity Investments 0.97%Future and Options 8.27%Reverse Repos/CBLOs 8.37%Net Current Assets -4.82%Total Net Assets 100.00%

Date of Allotment 21-Mar-07Benchmark BSE 200NAV (Growth) per unit(as on 31.10.11)

` 9.8691



` 10,000` 1,000 (SIP)


Statistical RatiosStandard Deviation 1.09%R-Squared,m 0.8733Beta (Slope) 0.7879Sharpe Ratio 0.0133Annualised Expense Ratio from 01 April 2011 onwards 2.50%Portfolio Turnover 2.57


HSBC Unique Opportunities Fund (HUOF) HSBC Mutual FundOctober 2011

17

An Open Ended SchemeInvestment Objective: To provide long term capital appreciation by allocating funds in equity and equity related instruments. It also has the flexibility to move, entirely if required, into debt instruments in times that the view on equity markets seems negative.


% to NetAssets

AutoHero Motocorp 106.89 1.19%Banks HDFC Bank 683.55 7.59%ICICI Bank 377.12 4.19%Bank of Baroda 347.02 3.85%State Bank of India 308.82 3.43%Consumer Non DurablesITC 652.24 7.24%Construction Project Larsen & Toubro 381.55 4.24%Ferrous Metals Tata Steel 91.25 1.01%Finance HDFC 247.99 2.75%CRISIL 238.38 2.65%Fixed DepositsHSBC Bank** 600.00 6.66%Industrial Capital GoodsBharat Heavy Electricals 314.62 3.49%Minerals/Mining Coal India 119.52 1.33%Non - Ferrous Metals Hindustan Zinc 197.82 2.20%Oil Oil & Natural Gas Corporation 299.86 3.33%Cairn India 268.47 2.98%Petroleum Products Reliance Industries 544.08 6.04%Pharmaceuticals Dr Reddy’s Laboratories 225.54 2.50%Lupin 211.59 2.35%Divi's Laboratories 137.50 1.53%Software Infosys 569.75 6.32%Tata Consultancy Services 301.27 3.34%Telecom - Services Bharti Airtel 458.41 5.09%Textile ProductsGrasim Industries 446.48 4.96%Transportation Gujarat Pipavav Port 257.58 2.86%Future and OptionsFut Tata Consultancy Services - Nov 2011 302.22 3.35%Fut Power Finance Corp - Nov 2011 136.13 1.51%Total 97.96%

HSBC Dynamic Fund (HDF) HSBC Mutual FundOctober 2011

18


% to NetAssets

CBLOs 208.00 2.31%Reverse Repos 134.95 1.50%Net Current Assets -159.46 -1.77%Total Net Assets as on 31 October 2011 9,009.13 100.00%

** Fixed deposits are placed as margin Deposit for Futures, Options and Equities.

Asset AllocationAuto 1.19%Banks 19.05%Consumer Non Durables 7.24%Construction Project 4.24%Ferrous Metals 1.01%Finance 5.40%Fixed Deposits 6.66%Industrial Capital Goods 3.49%Minerals/Mining 1.33%Non - Ferrous Metals 2.20%Oil 6.31%Petroleum Products 6.04%Pharmaceuticals 6.38%Software 9.67%Telecom - Services 5.09%Textile Products 4.96%Transportation 2.86%Future and Options 4.87%Reverse Repos/CBLOs 3.81%Net Current Assets -1.77%Total Net Assets 100.00%

Date of Allotment 24-Sep-07Benchmark BSE 200NAV (Growth) per unit(as on 31.10.11)

` 9.6752

Fund Manager Tushar Pradhan & Jitendra Sriram(for Equity portion)Sanjay Shah(for Debt portion)


` 10,000` 1,000 (SIP)




HSBC Dynamic Fund (HDF) HSBC Mutual FundOctober 2011

19

Date of Allotment 17-Mar-08Benchmark MSCI Emerging

Markets IndexNAV (Growth) per unit(as on 31.10.11)

` 9.3403

Fund Manager Gaurav Mehrotra(Dedicated fund manager overseas invesments)


` 10,000` 1,000 (SIP)


Statistical RatiosStandard Deviation 1.47%R-Squared 0.663Beta (Slope) 1.061Sharpe Ratio -0.012Annualised Expense Ratio from 01 April 2011 onwards 1.65% (exclusive of underlying scheme’s expenses, total not exceeding 2.50% of average net assets)Portfolio Turnover -



% to NetAssets

Overseas Mutual FundHSBC GIF Global Emerging Markets Equity (Fund domiciled in Luxembourg) 5,389.54 98.28%


Asset AllocationReverse Repos/CBLOs 2.01%Net Current Assets -0.29%Other Equity Investments 98.28%Total Net Assets 100.00%

An Open Ended SchemeInvestment Objective: To provide long term capital appreciation by investing in India and in the emerging markets, in equity and equity related instruments, share classes and units/securities issued by overseas mutual funds or unit trusts. The fund may also invest a limited proportion in domestic debt and money market instruments.

HSBC Emerging Markets Fund (HEMF) HSBC Mutual FundOctober 2011

20

An Open Ended Equity SchemeInvestment Objective: To provide long term capital appreciation primarily from a diversified portfolio of equity and equity related instruments of small cap companies.


% to NetAssets

Auto Majestic Auto 66.84 2.70%Auto Ancillaries Autoline Industries 87.62 3.55%Pricol 73.90 2.99%Banks State Bank of Travancore 87.07 3.52%State Bank of Bikaner and Jaipur 63.30 2.56%The Karnataka Bank 46.77 1.89%Cement Orient Paper & Industries 137.37 5.56%Chemicals India Glycols 70.78 2.86%Construction Sadbhav Engineering 113.06 4.57%Kajaria Ceramics 33.07 1.34%Consumer Durables Hitachi Home & Life Solutions (India) 153.63 6.22%Bajaj Electricals 143.09 5.79%Tube Investments of India 132.86 5.38%IFB Industries 82.95 3.36%Consumer Non DurablesGujarat Ambuja Exports 80.42 3.25%KRBL 65.65 2.66%Godfrey Philips India Ltd 52.15 2.11%Greenply Industries 26.25 1.06%FinanceRane Holdings 161.16 6.52%Industrial Capital GoodsTIL 104.35 4.22%Indo Tech Transformers 76.55 3.10%Sanghvi Movers 67.76 2.74%Industrial Products Ador Welding 71.61 2.90%PesticidesPI Industries 97.69 3.95%Software Nucleus Software Exports 122.40 4.95%Textile Cotton RSWM 61.01 2.47%Textile ProductsSRF 54.86 2.22%Textile Synthetic Bombay Dyeing & Manufacturing Company 83.54 3.38%Total 97.83%

HSBC Small Cap Fund (HSCF) HSBC Mutual FundOctober 2011

21


% to NetAssets

Other Equity Investments 36.97 1.50%CBLOs 48.52 1.96%Reverse Repos 31.48 1.27%Net Current Assets -63.30 -2.56%Total Net Assets as on 31 October 2011 2,471.38 100.00%

Asset AllocationAuto 2.70%Auto Ancillaries 6.54%Banks 7.98%Cement 5.56%Chemicals 2.86%Construction 5.91%Consumer Durables 20.74%Consumer Non Durables 9.08%Finance 6.52%Industrial Capital Goods 10.06%Industrial Products 2.90%Pesticide 3.95%Software 4.95%Textile - Cotton 2.47%Textile Products 2.22%Textile - Synthetic 3.38%Other Equity Investments 1.50%Reverse Repos/CBLOs 3.24%Net Current Assets -2.56%Total Net Assets 100.00%





(cum dividend)HSBC Small Cap Fund - Dividend19-Nov-10 1.00 1.00 14.3053

Date of Allotment 24-Mar-08

Benchmark BSE Small Cap Index

NAV (Growth) per unit(as on 31.10.11)

` 9.5941

Fund Manager Dhiraj SachdevSIP AvailableMinimumApplicationAmount

` 10,000` 1,000 (SIP)


Statistical RatiosStandard Deviation 1.14%R-Squared 0.867Beta (Slope) 0.928Sharpe Ratio -0.033Annualised Expense Ratio from 01 April 2011 onwards 2.50%Portfolio Turnover 0.37

Statistical ratios disclosed as per returns of the last 3 years/since inception, whichever is later.@ Including SIP/STP where applicable. $ No load in case of switches between equity schemes of HSBC Mutual Fund.

HSBC Small Cap Fund (HSCF) HSBC Mutual FundOctober 2011

22

Date of Allotment 06-May-11Benchmark MSCI Brazil

10/40 IndexNAV (Growth) per unit(as on 31.10.11)

` 9.2752

Fund Manager Gaurav Mehrotra (dedicated fund manager for over-seas investments)


` 10,000` 1,000 (SIP)


Statistical RatiosStandard Deviation 1.51%R-Squared 0.387Beta (Slope) 0.545Sharpe Ratio -0.055Annualised Expense Ratio from 01 April 2011 onwards* 1.65% (exclusive of underlying scheme’s expenses, total not exceeding 2.50% of average net assets)Portfolio Turnover -

Statistical ratios disclosed as per daily returns of the last 3 years/since inception, whichever is later. @ Including SIP/STP where applicable. $ No load in case of switches between equity schemes of HSBC Mutual Fund. * Accrual & Average Net Assets are for the period 05 May 11 to 31 October 11.


% to NetAssets

Overseas Mutual FundHSBC GIF Brazil Equity Fund (Fund domiciled in Luxembourg) 28,846.50 98.98%


Asset AllocationReverse Repos/CBLOs 1.83%Net Current Assets -0.81%Other Equity Investments 98.98%Total Net Assets 100.00%

Performance* (%) as on 30 August 2011

HBFMSCI-Brazil

10/40 IndexSince Inception -8.11 -5.56* Past performance may or may not be sustained in the future. Returns less than 1 year are absolute. Returns equal to or greater than 1 year are compounded annualized. ‘Since inception’ returns are calculated on ` 10 invested at inception. Calculations are based on Growth NAVs.

An Open-Ended Fund of Funds SchemeInvestment Objective: The primary investment objective of the Scheme is to provide long term capital appreciation by investing predominantly in units/shares of HSBC Global Investment Funds (HGIF) Brazil Equity Fund. The Scheme may, at the discretion of the Investment Manager, also invest in the units of other similar overseas mutual fund schemes, which may constitute a significant part of its corpus. The Scheme may also invest a certain proportion of its corpus in money market instruments and/or units of liquid mutual fund schemes, in order to meet liquidity requirements from time to time.

HSBC Brazil Fund (HBF) HSBC Mutual FundOctober 2011

23

Name of Scheme Fund Manager

HSBC Equity Fund Tushar Pradhan (from 29 September 2011)& Jitendra Sriram (from 05 July 2006)

HSBC India Opportunities Fund Tushar Pradhan (from 29 September 2011)& Jitendra Sriram (from 05 July 2006)

HSBC Midcap Equity Fund Dhiraj Sachdev (from 01 December 2009)

HSBC Progressive Themes Fund Dhiraj Sachdev (from 01 December 2009) & Jitendra Sriram (from 24 February 2009)

HSBC Tax Saver Equity Fund Jitendra Sriram (from 31 May 2011) & Aditya Khemani (from 24 February 2009)

HSBC Unique Opportunities Fund Tushar Pradhan (from 29 September 2011)& Jitendra Sriram (from 02 February 2007)

HSBC Dynamic Fund For Equity portion: Tushar Pradhan (from 29 September 2011) & Jitendra Sriram (from 03 August 2007) & For Debt portion: Sanjay Shah(from 14 August 2009)

HSBC Emerging Markets Fund Gaurav Mehrotra (from 27 October 2010)

HSBC Small Cap Fund Dhiraj Sachdev (from 01 December 2009)

HSBC Brazil Fund Gaurav Mehrotra (from 06 May 2011)

Fund Manager’s ExperienceTushar Pradhan Chief Investment Officer MBA (USA), B. Com.

Experience: Over 16 years of experience in Fund Management

l HSBC Asset Management (India) Private Ltd Chief Investment Officer since June 2009 onwards l AIG Global Asset Management Company (India) Private Ltd Chief Investment Officer – Equities from December 2006 to June 2009 l HDFC Asset Management Company Private Ltd Senior Fund Manager from July 2000 to Dec. 2006 l HDFC Ltd Manager – Treasury from April 1995 to June 2000

Jitendra SriramVice President & Head of Fund Management - EquitiesB.E. (Elect), Post Graduate Diploma in Business Management

Experience:Over 16 years experience in Equity Research. This involved analysing various sectors and companies and presenting investment ideas to fund managers in India and abroad. l HSBC Asset Management (India) Private Ltd Head of Fund Management - Equities from February 2009 to present l HSBC Asset Management (India) Private Ltd Fund Manager from May 2006 to February 2009 l Deutsche Equities India Private Ltd Vice President from August 2002 to April 2006 l HSBC Securities and Capital Markets (India) Private Ltd Deputy Head of Research from March 1997 to August 2002 l ITC Classic Share & Stock Broking Analyst from June 1995 to March 1997

Fund Managers - Equity HSBC Mutual FundOctober 2011

24

Dhiraj SachdevSenior Fund ManagerB.Com., ACA, Grad CWA, Diploma in Foreign Trade Management (DFTM)

Experience:Over 13 years experience in Equity Research. This involved analysing various sectors and companies and presenting investment ideas to fund managers in India and abroad. l HSBC Asset Management (India) Private Ltd Senior Fund Manager from December 2009 to present l HSBC Asset Management (India) Private Ltd Head of Equity-Portfolio Management Services from October 2005 to November 2009 l ASK Raymond James Securities India Private Ltd Portfolio Manager from October 2003 to September 2005 l HDFC Bank Ltd Senior Manager Equities from November 1999 to September 2003 l DSQ Software Ltd Business Analyst from June 1999 to November 1999 l Probity Research & Services Ltd (India Infoline Ltd) Research Analyst from November 1998 to May 1999 l Ford Brothers Capital Services (P) Ltd Manager Research from July 1996 to Sept 1998

Gaurav MehrotraAssociate Vice President, Investment Management(Co-Fund Manager for overseas investments)Post Graduate Diploma in Business Management, Bachelor of Engineering

Experience:Over 5 years experience in research. l HSBC Asset Management (India) Private Ltd Associate Vice president from September 2007 to present l JPMorgan Services India Private Ltd Equity Research from August 2005 to September 2007 l Tata Consultancy Services Ltd Business Analyst from June 2004 to July 2005

Aditya KhemaniAssociate Vice President and Assistant Fund Manager, EquitiesB.Com. (Hons.), Post Graduate Diploma in Business Management

Experience:Over 6 years experience in research. l HSBC Asset Management (India) Private Ltd Assistant Fund Manager, Equities from February 2009 to present Associate Vice President - Investment Management from October 2007 to February 2009 l SBI Funds Management India Private Ltd Senior Manager - Equity Research from March 2007 to September 2007 l Prudential ICICI Asset Management Company India Private Ltd Assistant Manager - Equity Research from December 2005 to February 2007 l Morgan Stanley Advantage Services India Private Ltd Research Associate from May 2005 to November 2005

Fund Managers - Equity HSBC Mutual FundOctober 2011

25

Fund Managers-Tushar Pradhan, Jitendra Sriram.

Comparative Performance of Equity Schemes HSBC Mutual FundOctober 2011

HSBC Equity Fund Date Of Inception : 10 Dec 02Scheme Name & Benchmarks Oct'10 -

Sep '11Oct'09 - Sep '10

Oct'08 - Sep '09

Since Inception

HSBC Equity Fund - Growth -18.82% 19.96% 22.36% 28.51%BSE200 (Scheme Benchmark) -21.42% 20.75% 33.15% 20.76%S&P Nifty (Standard Benchmark) -19.58% 18.68% 28.77% 19.05%` 10,000, if invested in HEF, would have become

`8,118 `11,996 `12,236 `91,181

` 10,000, if invested in BSE 200, would have become

`7,858 `12,075 `13,315 `52,685

` 10,000, if invested in S&P Nifty, would have become

`8,042 `11,868 `12,877 `46,472

HSBC India Opportunities Fund Date of Inception : 24 Feb 04Scheme Name & Benchmarks Oct'10 -

Sep '11Oct'09 - Sep '10

Oct'08 - Sep '09

Since Inception

HSBC India Opportunities Fund - Growth -14.57% 20.31% 21.85% 16.66%BSE 500 (Scheme Benchmark) -21.56% 21.85% 32.38% 14.68%S&P Nifty (Standard Benchmark) -19.58% 18.68% 28.77% 14.03%` 10,000, if invested in HIOF, would have become

`8,543 `12,031 `12,185 `32,367


`7,844 `12,185 `13,238 `28,323


`8,042 `11,868 `12,877 `27,141

HSBC Unique Opportunities Fund Date of Inception : 21 Mar 07Scheme Name & Benchmarks Oct'10 -

Sep '11Oct'09 - Sep '10

Oct'08 - Sep '09

Since Inception

HSBC Unique Opportunities Fund - Growth

-22.85% 26.51% 18.46% -1.19%

BSE200 (Scheme Benchmark) -21.42% 20.75% 33.15% 6.27%S&P Nifty (Standard Benchmark) -19.58% 18.68% 28.77% 6.20%` 10,000, if invested in HUOF, would have become

`7,715 `12,651 `11,846 `9,322


`7,858 `12,075 `13,315 `13,176


`8,042 `11,868 `12,877 `13,131

26

Past performance may or may not be sustained in the future. Refer note below.


Past performance may or may not be sustained in the future. Refer note below.Data for the period 01 October - 30 September has been considered in all cases, except for Since Inception returns. All percentage returns are compounded annualised. ‘Since Inception’ returns are calculated on `10 invested at inception. Standard benchmark as prescribed by SEBI for long-term equity schemes is used for comparison purposes. Returns on `10,000 are point-to-point returns for the specific time period, invested at the start of the period.




27

Data for the period 01 October - 30 September has been considered in all cases, except for Since Inception returns. All percentage returns are compounded annualised. ‘Since Inception’ returns are calculated on `10 invested at inception. Standard benchmark as prescribed by SEBI for long-term equity schemes is used for comparison purposes. Returns on `10,000 are point-to-point returns for the specific time period, invested at the start of the period.

HSBC Tax Saver Equity Fund Date of Inception : 05 Jan 07Scheme Name & Benchmarks Oct'10 -

Sep '11Oct'09 - Sep '10

Oct'08 - Sep '09

Since Inception

HSBC Tax Saver Equity Fund - Growth -20.07% 26.33% 37.36% 5.47%BSE200 (Scheme Benchmark) -21.42% 20.75% 33.15% 4.27%S&P Nifty (Standard Benchmark) -19.58% 18.68% 28.77% 4.66%` 10,000, if invested in HTSF, would have become

`7,993 `12,633 `13,736 `12,670


`7,858 `12,075 `13,315 `12,193


`8,042 `11,868 `12,877 `12,410

HSBC Midcap Equity Fund Date of Inception : 19 May 05Scheme Name & Benchmarks Oct'10 -

Sep '11Oct'09 - Sep '10

Oct'08 - Sep '09

Since Inception

HSBC Midcap Equity Fund - Growth -37.39% 37.69% 27.72% 8.56%BSE Midcap (Scheme Benchmark) -25.43% 28.37% 31.19% 10.49%S&P Nifty (Standard Benchmark) -19.58% 18.68% 28.77% 15.35%` 10,000, if invested in HMEF, would have become

`6,261 `13,769 `12,772 `16,230

` 10,000, if invested in BSE Midcap, would have become

`7,457 `12,837 `13,119 `18,877


`8,042 `11,868 `12,877 `24,830

HSBC Progressive Themes Fund Date of Inception : 23 Feb 06Scheme Name & Benchmarks Oct'10 -

Sep '11Oct'09 - Sep '10

Oct'08 - Sep '09

Since Inception

HSBC Progressive Themes Fund - Growth -35.13% 16.19% 14.85% -0.15%BSE 200 (Scheme Benchmark) -21.42% 20.75% 33.15% 8.57%S&P Nifty (Standard Benchmark) -19.58% 18.68% 28.77% 8.92%` 10,000, if invested in HPTF, would have become

`6,487 `11,619 `11,485 `9,630


`7,858 `12,075 `13,315 `15,852


`8,042 `11,868 `12,877 `16,143




Fund Managers - Jitendra Sriram, Aditya Khemani.

Fund Manager - Dhiraj Sachdev.

Fund Managers - Dhiraj Sachdev, Jitendra Sriram.


28

Data for the period 01 October - 30 September has been considered in all cases, except for Since Inception returns. All percentage returns are compounded annualised. ‘Since Inception’ returns are calculated on `10 invested at inception. Standard benchmark as prescribed by SEBI for short-term/ long-term debt schemes is used for comparison purposes. Returns on `10,000 are point-to-point returns for the specific time period, invested at the start of the period.

HSBC Emerging Markets Fund Date of Inception : 17 Mar 08Scheme Name & Benchmarks Oct'10 -

Sep '11Oct'09 - Sep '10

Oct'08 - Sep '09

Since Inception

HSBC Emerging Markets Fund - Growth -15.52% 2.03% 17.71% -5.35%MSCI Emerging Market Index (Scheme Benchmark)

-14.52% 13.56% 15.56% -2.84%

S&P Nifty (Standard Benchmark) -19.58% 18.68% 28.77% 2.67%` 10,000, if invested in HEMF, would have become

`8,448 `10,203 `11,771 `8,080

` 10,000, if invested in MSCI Emerging Market Index, would have become

`8,548 `11,356 `11,556 `9,031


`8,042 `11,868 `12,877 `10,977

Fund Manager - Gaurav Mehrotra.


Fund Manager - Dhiraj Sachdev.HSBC Small Cap Fund Date of Inception : 24 Mar 08Scheme Name & Benchmarks Oct'10 -

Sep '11Oct'09 - Sep '10

Oct'08 - Sep '09

Since Inception

HSBC Small Cap Fund - Growth -35.23% 54.48% 21.33% -1.81%BSE Small Cap (Scheme Benchmark) -33.93% 35.15% 35.48% -0.28%S&P Nifty (Standard Benchmark) -19.58% 18.68% 28.77% 2.00%` 10,000, if invested in HSCF, would have become

`6,477 `15,448 `12,133 `9,255

` 10,000, if invested in BSE Smallcap, would have become

`6,607 `13,515 `13,548 `9,901


`8,042 `11,868 `12,877 `10,723


HSBC Dynamic Fund Date of Inception : 24 Sep 07Scheme Name & Benchmarks Oct'10 -

Sep '11Oct'09 - Sep '10

Oct'08 - Sep '09

Since Inception

HSBC Dynamic Fund - Growth -17.66% 19.19% 11.81% -2.08%BSE200 (Scheme Benchmark) -21.42% 20.75% 33.15% -0.52%S&P Nifty (Standard Benchmark) -19.58% 18.68% 28.77% 0.06%` 10,000, if invested in HDF, would have become

`8,234 `11,919 `11,181 `8,829


`7,858 `12,075 `13,315 `9,795


`8,042 `11,868 `12,877 `10,022



An Open Ended Fund with Regular & Savings Plans.Monthly income is not assured and is subject to availability of distributable surplus.Investment Objective: Seeks to generate reasonable returns through investments in Debt and Money Market Instruments. The secondary objective of the scheme is to invest in equity and equity related instruments to seek capital appreciation.

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Money Market InstrumentsCPsKotak Mahindra Prime 1,411.71 3.42% A1+Bajaj Auto Finance 1,393.95 3.38% P1+CDsFixedState Bank of Patiala 3,140.70 7.61% A1+Bank of India 2,411.20 5.85% P1+Indian Overseas Bank 1,740.11 4.22% A1+Oriental Bank of Commerce 1,452.35 3.52% P1+Indian Overseas Bank 968.90 2.35% A1+Vijaya Bank 696.13 1.69% PR1+Allahabad Bank 694.21 1.68% A1+IDBI Bank 658.92 1.60% PR1+State Bank of Hyderabad 470.60 1.14% A1+Fixed DepositsHSBC Bank** 120.00 0.29% UnratedHSBC Bank** 100.00 0.24% UnratedCorporate/PSU DebtFixedShriram Transport Finance Company 1,794.15 4.35% CARE AA+Export Import Bank of India 1,496.36 3.63% AAAPower Grid Corporation of India 1,238.13 3.00% AAAState Bank of India 1,021.37 2.48% AAAHDFC 932.75 2.26% AAAPower Finance Corporation 922.75 2.24% AAARural Electrification Corporation 792.37 1.92% AAALIC Housing Finance 792.07 1.92% AAAPower Finance Corporation 699.20 1.70% AAANABARD 498.68 1.21% AAAHDFC 498.53 1.21% AAAPower Finance Corporation 498.10 1.21% AAAHDFC 299.88 0.73% AAAShriram Transport Finance Company 297.87 0.72% CARE AA+Power Grid Corporation of India 294.24 0.71% AAANABARD 198.98 0.48% AAAGovernment Securities7.80% Government Stock M - 11-Apr-2021 2,861.24 6.94% SovereignEquitiesListed EquityTata Consultancy Services 652.74 1.58%HDFC Bank 611.66 1.48%Infosys 583.85 1.42%ICICI Bank 581.97 1.41%Bank of Baroda 481.08 1.17%Bharti Airtel 469.38 1.14%I T C 399.66 0.97%Grasim Industries 395.63 0.96%Tata Motors Dvr 376.52 0.91%Rural Electrification Corporation 337.63 0.82%Shree Cement 312.93 0.76% N.A.Bajaj Auto 306.19 0.74%GlaxoSmithkline Consumer Healthcare 295.82 0.72%Mahindra and Mahindra 265.66 0.64%Jindal Steel and Power 264.40 0.64%Oil & Natural Gas Corporation 249.89 0.61%Vardhman Textiles 241.94 0.59%Lupin 241.29 0.59%Titan Industries 232.51 0.56%Sterlite Industries (India) 226.68 0.55%Bharat Petroleum Corporation 224.14 0.54%Punjab National Bank 219.66 0.53%Aurobindo Pharma 209.48 0.51%

HSBC MIP - Savings Plan (HMIP-S) HSBC Mutual FundOctober 2011

29

Date of Allotment 24-Feb-04Benchmark Crisil MIP Blended

IndexNAV (Growth) per unit(as on 31.10.11)

` 19.4019

Average Maturity of Portfolio

29.16 months

Modified Durationof Portfolio

21.45 months

Fund Manager Aditya Khemani &Jitendra Sriram(for Equity portion)Sanjay Shah &Ruchir Parekh(for Debt portion)

SIP AvailableMinimumApplicationAmountGrowth `10,000Quarterly Dividend `10,000Monthly Dividend `25,000SIP `1,000Exit Load@ 1% - if redeemed/

switched out within 1 year from date of investment.

Annualised Expense Ratio from 01 April 2011 onwards 1.98%

@ Including SIP/STP where applicable.

** Fixed deposits are placed as Margin Deposit for Futures, Options and Equities. ^^ indicates thinly traded / non traded and illiquid securities as defined in SEBI Regulations and Guidelines. Asset AllocationMoney Market Instruments 36.46%Fixed Deposits 0.53%Corporate/ PSU Debt 29.76%Government Securities 6.94%Cash Equivalents 0.19%Net Current Assets 1.61%Other Equity Investments 24.51%Total Net Assets 100.00%

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Amara Raja Batteries 208.78 0.51%Coal India 203.52 0.49%Exide Industries 200.25 0.49%Sun TV Network 196.99 0.48%Cadila Healthcare 191.07 0.46%Karur Vysya Bank 183.94 0.45% N.A.Power Finance Corporation 176.69 0.43%Orient Paper & Industries 170.85 0.41%Sanghvi Movers 166.97 0.40%Gail (India) 118.41 0.29%Hindustan Door-Oliver 96.69 0.23%Vardhman Special Steels^^ 16.28 0.04%Total 98.21%Cash EquivalentsCBLOs 47.03 0.11%Reverse Repos 30.51 0.07%Net Current Assets 662.02 1.61%Total Net Assets as on 31 October 2011 41,246.20 100.00%

Rating ProfileAAA 61.15%AA+/ AA-/ AA 5.07%Sovereign 6.94%Unrated 0.53%Other Equity Investments 24.51%Reverse Repo/CBLOs 0.19%Net Current Assets 1.61%Total Net Assets 100.00%

HSBC MIP - Savings Plan (HMIP-S) HSBC Mutual FundOctober 2011

30





(cum dividend)HSBC MIP - Savings Plan - Monthly Dividend29-Jul-11 0.03524 0.03020 11.371929-Sep-11 0.03083 0.02643 11.205228-Oct-11 0.03083 0.02643 11.2963HSBC MIP - Savings Plan - Quarterly Dividend18-Mar-11 0.15812 0.14737 11.635217-Jun-11 0.13214 0.11325 11.682416-Sep-11 0.13214 0.11325 11.5975

An Open Ended Fund with Regular & Savings Plans. Monthly income is not assured and is subject to availability of distributable surplus.Investment Objective: Seeks to generate reasonable returns through investments in Debt and Money Market Instruments. The secondary objective of the scheme is to invest in equity and equity related instruments to seek capital appreciation.

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Money Market InstrumentsCPsBajaj Auto Finance 929.30 6.56% P1+Kotak Mahindra Prime 376.46 2.66% A1+CDsFixedAndhra Bank 1,927.56 13.60% PR1+State Bank of Hyderabad 1,411.81 9.96% A1+ICICI Bank 482.08 3.40% A1+Fixed DepositsHSBC Bank** 100.00 0.71% UnratedCorporate/PSU DebtFixedPower Finance Corporation 971.32 6.85% AAAExport Import Bank of India 917.12 6.47% AAAShriram Transport Finance Company 697.73 4.92% CARE AA+HDFC 414.55 2.93% AAAState Bank of India 408.55 2.88% AAANABARD 398.94 2.82% AAAPower Finance Corporation 299.66 2.11% AAAPower Grid Corporation of India 218.49 1.54% AAAHDFC 199.92 1.41% AAAPower Finance Corporation 199.24 1.41% AAAPower Grid Corporation of India 196.16 1.38% AAAHDFC 99.71 0.70% AAAGovernment Securities7.80% Government Stock M - 11-Apr-2021 1,141.70 8.06% SovereignEquitiesListed EquityTata Consultancy Services 139.48 0.98%ICICI Bank 121.05 0.85%Infosys 109.63 0.77%HDFC Bank 104.23 0.74%Bharti Airtel 96.38 0.68%Bank Of Baroda 92.84 0.66%I T C 79.93 0.56%Grasim Industries 76.89 0.54%Tata Motors Dvr 70.35 0.50%Shree Cement 67.40 0.48%Rural Electrification Corporation 65.00 0.46%Bajaj Auto 62.28 0.44%Mahindra and Mahindra 58.84 0.42%Lupin 54.69 0.39% N.AJindal Steel and Power 50.63 0.36%GlaxoSmithkline Consumer Healthcare 50.20 0.35%Bharat Petroleum Corporation 49.81 0.35%Punjab National Bank 48.81 0.34%Oil & Natural Gas Corporation 47.20 0.33%Sterlite Industries (India) 47.12 0.33%Amara Raja Batteries 46.93 0.33%Titan Industries 45.63 0.32%Orient Paper & Industries 43.21 0.30%Coal India 42.50 0.30%Sun TV Network 39.38 0.28%Exide Industries 39.28 0.28%Cadila Healthcare 38.20 0.27%Karur Vysya Bank 37.34 0.26%Aurobindo Pharma 36.50 0.26%

HSBC MIP - Regular Plan (HMIP-R) HSBC Mutual FundOctober 2011

31

Date of Allotment 24-Feb-04Benchmark Crisil MIP Blended


` 17.3176


30.99 months


23.68 months

Fund Manager Aditya Khemani &Jitendra Sriram(for Equity portion)Sanjay Shah &Ruchir Parekh(for Debt portion)

SIP AvailableMinimumApplicationAmountGrowth `10,000Quarterly Dividend `10,000Monthly Dividend `25,000SIP `1,000Exit Load@ 1% - if redeemed/

switched out within 1 year from date of investment.

Annualised Expense Ratio from 01 April 2011 onwards 2.14%@ Including SIP/STP where applicable.

** Fixed deposits are placed as Margin Deposit for Futures, Options and Equities. ^^ Indicates thinly traded / non traded and illiquid securities as defined in SEBI Regulations and Guidelines.. Asset AllocationMoney Market Instruments 36.18%Fixed Deposits 0.71%Corporate/ PSU Debt 35.44%Government Securities 8.06%Cash Equivalents 4.62%Net Current Assets 0.91%Other Equity Investments 14.09%Total Net Assets 100.00%

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Power Finance Corporation 35.56 0.25%Vardhman Textiles 30.24 0.21%Hindustan Door-Oliver 28.09 0.20% N.A.Gail (India) 23.68 0.17%Sanghvi Movers 15.33 0.11%Vardhman Special Steels^^ 2.04 0.01%Total 94.47%Cash EquivalentsCBLOs 397.17 2.80%Reverse Repos 257.68 1.82%Net Current Assets 128.69 0.91%Total Net Assets as on 31 October 2011 14,170.50 100.00%

Rating ProfileAAA 66.69%AA+/ AA-/ AA 4.92%Sovereign 8.06%Unrated 0.71%Other Equity Investments 14.09%Reverse Repo/CBLOs 4.62%Net Current Assets 0.91%Total Net Assets 100.00%

HSBC MIP - Regular Plan (HMIP-R) HSBC Mutual FundOctober 2011

32





(cum dividend)HSBC MIP - Regular Plan - Monthly Dividend26-Aug-11 0.03964 0.03398 10.628029-Sep-11 0.03964 0.03398 10.666928-Oct-11 0.03964 0.03398 10.6975HSBC MIP - Regular Plan - Quarterly Dividend18-Mar-11 0.15812 0.14737 11.240917-Jun-11 0.13214 0.11325 11.254416-Sep-11 0.13214 0.11325 11.2208

An Open Ended Income SchemeInvestment Objective: Aims to provide reasonable income through a diversified portfolio of fixed income securities. The AMC’s view of interest rate trends and the nature of the Plans will be reflected in the type and maturities of securities in which the Short Term and Investment Plans are invested.

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Money Market InstrumentsCPsKotak Mahindra Prime 188.23 8.79% A1+Mahindra & Mahindra Financial Services 99.21 4.63% A1+CDsFixedState Bank of Patiala 193.27 9.02% A1+Securitised DebtFixedIndia MBS 2002 Series I-D (LIC Housing Finance) PTC 46.06 2.15% AAA(SO)

Corporate/PSU DebtFixedSundaram Finance 199.93 9.33% LAA+HDFC 199.41 9.31% AAAShriram Transport Finance Company 199.35 9.31% CAREAA+LIC Housing Finance 198.02 9.25% AAAPower Finance Corporation 99.62 4.65% AAANABARD 99.49 4.65% AAARural Electrification Corporation 99.05 4.62% AAAGovernment Securities7.80% Government Stock M - 11-Apr-2021 200.38 9.36% Sovereign5.59% Government Stock M - 04-Jun-2016 0.35 0.02% SovereignTotal 85.08%Cash EquivalentsCBLOs 126.36 5.90%Reverse Repos 81.98 3.83%Net Current Assets 111.16 5.19%Total Net Assets as on 31 October 2011 2,141.87 100.00%

HSBC Income Fund - Investment Plan (HIF-IP) HSBC Mutual FundOctober 2011

33

Date of Allotment 10-Dec-02Benchmark Crisil Composite

Bond Fund IndexNAV (Growth) per unit(as on 31.10.11)

` 17.5971


26.20 months


20.83 months

Fund Manager Ruchir Parekh &Sanjay Shah

SIP AvailableMinimumApplicationAmountRegular `10,000Institutional `50,00,000SIP `1,000Exit Load@ Regular and Insti-

tutional Options: 0.5% - if redeemed/switched out within 6 months from date of investment

Annualised Expense Ratio from 01 April 2011 onwards Regular 1.85%


Asset AllocationMoney Market Instruments 22.44%Securitised Debt 2.15%Corporate / PSU Debt 51.12%Government Securities 9.37%Cash Equivalents 9.73%Net Current Assets 5.19%





(cum dividend)HSBC Income Fund - Investment Plan - Regular Option - Quarterly Dividend18-Mar-11 0.17568 0.16374 11.066917-Jun-11 0.13214 0.11325 11.094416-Sep-11 0.13214 0.11325 11.2006HSBC Income Fund - Investment Plan - Institutional Option - Quarterly Dividend12-Jun-09 0.11387 0.10598 11.029411-Sep-09 0.11387 0.10598 10.996011-Dec-09 0.11387 0.10598 11.0973

Rating ProfileAAA 57.07%AA 18.64%Sovereign 9.37%Reverse Repos/ CBLOs 9.73%Net Current Assets 5.19%

HSBC Income Fund - Investment Plan (HIF-IP) HSBC Mutual FundOctober 2011

34

An Open Ended Income SchemeInvestment Objective: Aims to provide reasonable income through a diversified portfolio of fixed income securities. The AMC’s view of interest rate trends and the nature of the Plans will be reflected in the type and maturities of securities in which the Short Term and Investment Plans are invested.

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Money Market InstrumentsCPsSREI Equipment Finance Private Limited 5,427.03 9.02% A1+Tata Capital 2,414.32 4.01% A1+Kotak Mahindra Prime 2,412.42 4.01% A1+Kotak Mahindra Prime 2,164.63 3.60% A1+CDsFixedBank of India 4,822.40 8.01% P1+HDFC Bank 2,424.57 4.03% PR1+State Bank of Travancore 2,417.72 4.02% A1+Andhra Bank 2,409.45 4.00% PR1+State Bank of Hyderabad 2,353.01 3.91% A1+ICICI Bank 1,990.39 3.31% A1+Bank of India 1,797.02 2.99% P1+Vijaya Bank 1,491.71 2.48% PR1+Indian Overseas Bank 1,453.35 2.42% A1+IDBI Bank 1,411.98 2.35% PR1+State Bank of Patiala 1,352.92 2.25% A1+Oriental Bank of Commerce 968.24 1.61% P1+Allahabad Bank 595.03 0.99% A1+Axis Bank 495.58 0.82% A1+State Bank of Hyderabad 164.67 0.27% A1+Corporate/PSU DebtFixedPower Finance Corporation 2,996.55 4.98% AAASundaram Finance 2,500.66 4.16% LAA+HDFC 2,488.55 4.14% AAAShriram Transport Finance Company 2,184.41 3.63% CAREAA+Shriram Transport Finance Company 1,993.50 3.31% CAREAA+Sundaram Finance 1,799.33 2.99% LAA+NABARD 1,496.03 2.49% AAAHDFC 1,036.38 1.72% AAANABARD 999.29 1.66% AAANABARD 997.96 1.66% AAARural Electrification Corporation 994.68 1.65% AAARural Electrification Corporation 990.46 1.65% AAAShriram Transport Finance Company 702.77 1.17% AA+Shriram Transport Finance Company 498.40 0.83% CAREAA+Total 100.11%

(Rated mfAAA by ICRA) *

HSBC Income Fund - Short Term Plan (HIF-STP) HSBC Mutual FundOctober 2011

35

* For rating methodology please see Statutory Details & Disclaimers.

Core MTM (% to Net Assets)** 81.21

** Core MTM would mean bonds / instruments which have residual maturity greater than 3 months and are valued as per Crisil Bond Valuer. Core MTM is as on 31 October, 2011.

Date of Allotment 10-Dec-02Benchmark Crisil Short Term


` 17.3423


11.10 months


9.59 months

Fund Manager Ruchir Parekh &Sanjay Shah

SIP AvailableMinimumApplicationAmountRegular `1,00,000Institutional `1,00,00,000Institutional plus `5,00,00,000SIP `1,000Exit Load@ Regular, Institutional

& Institutional Plus Option – 0.50% if redeemed / switched out within 6 months from the date of investment.

Annualised Expense Ratio from 01 April 2011 onwards Regular 1.00%Institutional 0.70%Institutional Plus 0.60%


Asset AllocationMoney Market Instruments 64.09%Corporate / PSU Debt 36.02%Cash Equivalents 1.76%Net Current Assets -1.87%

Rating ProfileAAA 84.03%AA 16.08%Reverse Repos/ CBLOs 1.76%Net Current Assets -1.87%





(cum dividend)HSBC Income Fund - Short Term Plan - Regular Option - Monthly Dividend26-Aug-11 0.06505 0.05576 11.033029-Sep-11 0.07648 0.06555 11.032528-Oct-11 0.06417 0.05500 11.0075HSBC Income Fund - Short Term Plan - Institutional Option - Monthly Dividend26-Aug-11 0.06452 0.05530 10.587229-Sep-11 0.07599 0.06513 10.587328-Oct-11 0.06371 0.05461 10.5628HSBC Income Fund - Short Term Plan - Institutional Plus Option - Monthly Dividend26-Aug-11 0.06229 0.05339 10.106729-Sep-11 0.07325 0.06278 10.106928-Oct-11 0.05266 0.04513 10.0836

HSBC Income Fund - Short Term Plan (HIF-STP) HSBC Mutual FundOctober 2011

36

Cash EquivalentsCBLOs 642.85 1.07%Reverse Repos 417.08 0.69%Net Current Assets -1,126.48 -1.87%Total Net Assets as on 31 October 2011 60,178.89 100.00%

An Open Ended Income SchemeInvestment Objective: Seeks to generate a reasonable return with commensurate risk through investments in floating rate debt instruments and fixed rate debt instruments swapped for floating rate returns. The Scheme may also invest in fixed rate money market and debt instruments.

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Money Market InstrumentsCPsSREI Equipment Finance Private Limited 4,933.66 11.10% A1+Bajaj Finance 4,928.15 11.09% A1+Mahindra & Mahindra Financial Services 4,861.20 10.94% A1+Tata Capital 2,476.49 5.57% A1+Jindal Power 2,472.57 5.56% A1+Jindal Power 2,466.09 5.55% A1+Indian Oil Corporation 494.78 1.11% A1+Hindustan Petroleum Corporation 493.99 1.11% A1+CDsFixedCentral Bank of India 2,566.49 5.78% A1+Bank of Maharashtra 2,470.34 5.56% A1+Allahabad Bank 2,467.52 5.55% A1+Andhra Bank 2,466.12 5.55% A1+Punjab and Sind Bank 2,466.04 5.55% A1+United Bank of India 2,465.95 5.55% A1+Punjab National Bank 1,487.01 3.35% PR1+ING Vysya Bank 495.75 1.12% P1+Andhra Bank 495.36 1.11% PR1+Canara Bank 495.00 1.11% P1+UCO Bank 494.80 1.11% P1+Indian Overseas Bank 395.09 0.89% A1+Total 94.27%Cash EquivalentsCBLOs 1,554.75 3.50%Reverse Repos 1,008.72 2.27%Net Current Assets -19.02 -0.04%Total Net Assets as on 31 October 2011 44,436.86 100.00%

HSBC Floating Rate Fund - Long Term Plan (HFRF-LTP)


HSBC Mutual FundOctober 2011

37


Core MTM (% to Net Assets)** 0.00

** Core MTM would mean bonds / instruments which have residual maturity greater than 3 months and are valued as per Crisil Bond Valuer. Core MTM is as on 31 October, 2011.

Date of Allotment 16-Nov-04Benchmark Crisil Liquid Fund


` 15.7317


1.52 months


1.45 months

Fund Manager Sanjay Shah &Kedar Karnik

SIP AvailableMinimumApplicationAmountRegular `10,000Institutional `50,00,000SIP `1,000Exit Load@ Nil

Annualised Expense Ratio from 01 April 2011 onwards Regular 1.00% Institutional 0.30% @ Including SIP/STP where applicable.

Asset AllocationMoney Market Instruments 94.27%Cash Equivalents 5.77%Net Current Assets -0.04%





(cum dividend)HSBC Floating Rate Fund - Long Term Plan - Regular Option - Monthly Dividend26-Aug-11 0.05465 0.04684 10.062029-Sep-11 0.06630 0.05683 10.075328-Oct-11 0.05882 0.05041 10.0668HSBC Floating Rate Fund - Long Term Plan - Institutional Option - Monthly Dividend29-Apr-11 0.07774 0.07256 10.384727-May-11 0.05664 0.05286 10.364024-Jun-11 0.04125 0.03536 10.3666

Rating ProfileAAA 94.27%Reverse Repos/ CBLOs 5.77%Net Current Assets -0.04%

HSBC Floating Rate Fund - Long Term Plan (HFRF-LTP)

HSBC Mutual FundOctober 2011

38

An Open Ended Liquid SchemeInvestment Objective: Aims to provide reasonable returns, commensurate with low risk while providing a high level of liquidity, through a portfolio of money market and debt securities.

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Money Market InstrumentsCPsIndian Oil Corporation 1,979.11 5.16% A1+Hindustan Petroleum Corporation 1,975.96 5.15% A1+SREI Equipment Finance Private Ltd 1,973.46 5.15% A1+CDsFixedIndian Overseas Bank 2,074.20 5.41% A1+ICICI Bank 1,989.91 5.19% A1+Kotak Mahindra Bank 1,989.49 5.19% A1+ING Vysya Bank 1,983.01 5.17% P1+Axis Bank 1,982.33 5.17% A1+Andhra Bank 1,981.45 5.17% PR1+Canara Bank 1,980.01 5.16% P1+UCO Bank 1,979.21 5.16% P1+Central Bank of India 1,135.18 2.96% A1+Total 60.03%Cash EquivalentsCBLOs 8,623.67 22.49%Reverse Repos 5,595.00 14.59%Net Current Assets 1,110.15 2.89%Total Net Assets as on 31 October 2011 38,352.15 100.00%

(Rated mfA1+ by ICRA) *

HSBC Cash Fund (HCF) HSBC Mutual FundOctober 2011

39


Date of Allotment 04-Dec-02Benchmark Crisil Liquid Fund


` 16.3917


0.82 months


0.95 months

Fund Manager Ruchir Parekh &Kedar Karnik

SIP AvailableMinimumApplicationAmountRegular `1,00,000Institutional `50,00,000Institutional plus `5,00,00,000SIP `1,000Exit Load@ Nil

Annualised Expense Ratio from 01 April 2011 onwardsRegular 0.75% Institutional 0.60%Institutional Plus 0.35% @ Including SIP/STP where applicable.





(cum dividend)HSBC Cash Fund - Institutional Option - Monthly Dividend26-Aug-11 0.04942 0.04740 10.584129-Sep-11 0.05942 0.05700 10.596828-Oct-11 0.05310 0.05093 10.5888HSBC Cash Fund - Institutional Plus Option - Monthly Dividend26-Aug-11 0.04886 0.04686 10.138329-Sep-11 0.05876 0.05636 10.150928-Oct-11 0.05244 0.05030 10.1428

Asset AllocationMoney Market Instruments 60.03%Cash Equivalents 37.07%Net Current Assets 2.89%

Rating ProfileAAA 60.03%Reverse Repos/ CBLOs 37.07%Net Current Assets 2.89%

MTM (% of Net Assets)* 0.00*The MTM % disclosed is the weekly average for the week ended 31 October, 2011.

HSBC Cash Fund (HCF) HSBC Mutual FundOctober 2011

40

Expense Ratios (%)

01 October 2011 to

31 October 2011

Average for

the month

- Regular 0.75 0.75 - Institutional 0.60 0.60 - Institutional Plus 0.35 0.35

Date of Allotment 05-Dec-03Benchmark I-Sec Composite


` 12.9567


36.15 months


41.07 months

Fund Manager Sanjay ShahSIP AvailableMinimum ` 10,000Application ` 1,000 (SIP)AmountExit Load@ 0.5% if redeemed /

switched out within6 months from date of investment.

Annualised Expense Ratio from 01 April 2011 onwards 0.75%@ Including SIP/STP where applicable.

An Open Ended Gilt SchemeInvestment Objective: Aims to generate reasonable returns through investments in Government Securities of various maturities. The AMC’s view of interest rate trends and the nature of the plans will be reflected in the maturities of securities in which the Plans are invested.

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Government Securities7.80% Government Stock M - 11-Apr-2021 27.96 31.42% SovereignTotal 31.42%Cash EquivalentsCBLOs 36.41 40.91%Reverse Repos 23.62 26.54%Net Current Assets 1.01 1.13%Total Net Assets as on 31 October 2011 89.00 100.00%





(cum dividend)HSBC Gilt Fund - Monthly Dividend31-Oct-08 0.06136 0.05711 10.807728-Nov-08 0.04193 0.03903 10.785526-Dec-08 0.03400 0.03164 10.7764

Asset AllocationGovernment Securities 31.42%Cash Equivalents 67.45%Net Current Assets 1.13%

Rating ProfileSovereign 31.42%Reverse Repos/ CBLOs 67.45%Net Current Assets 1.13%

HSBC Gilt Fund (HGF) HSBC Mutual FundOctober 2011

41

An Open Ended Debt SchemeInvestment Objective: Seeks to provide liquidity and reasonable returns by investing primarily in a mix of short term debt and money market instruments.

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Money Market InstrumentsCDsFixedCentral Bank of India 1,233.89 10.24% A1+Allahabad Bank 1,190.07 9.87% A1+Punjab National Bank 991.34 8.22% PR1+ICICI Bank 497.48 4.13% A1+Kotak Mahindra Bank 497.37 4.13% A1+Corporate/PSU DebtINBMK LinkedAxis Bank 4,490.05 37.25% LAAATotal 73.84%Cash EquivalentsCBLOs 1,701.12 14.11%Reverse Repos 1,103.68 9.16%Net Current Assets 348.52 2.89%Total Net Assets as on 31 October 2011 12,053.53 100.00%

(Rated mfA1+ by ICRA) *

HSBC Ultra Short Term Bond Fund (HUSBF) HSBC Mutual FundOctober 2011

42


Core MTM (% to Net Assets)** 0.00** Core MTM would mean bonds instruments which have residual maturity greater than 3 months and are valued as per Crisil Bond Valuer. Core MTM is as on 31 October, 2011.

Date of Allotment 17-Oct-06Benchmark Customised

Benchmark Index**NAV (Growth) per unit(as on 31.10.11)

` 13.803


1.54 months


1.64 months

Fund Manager Sanjay Shah &Kedar Karnik

SIP AvailableMinimumApplicationAmountRegular `10,000Institutional `50,00,000Institutional plus `5,00,00,000SIP `1,000Exit Load@ Regular, Institu-

tional and Institu-tional Plus Options : 0.25% - ifredeemed/switched out within 15 days from date of allotment

Annualised Expense Ratio from 01 April 2011 onwards Regular 1.30% Institutional 1.05%Institutional Plus 0.40%

@ Including SIP/STP where applicable.** Composite index of Crisil Liquid Fund Index(90%) and Crisil Short Term Bond Fund Index(10%).

Asset AllocationMoney Market Instruments 36.59%Corporate/PSU Debt 37.25%Cash Equivalents 23.27%Net Current Assets 2.89%

Rating ProfileAAA 73.84%Reverse Repos/ CBLOs 23.27%Net Current Assets 2.89%

Asset Allocation for Floaters % to Net AssetINBMK Linked 37.25%





(cum dividend)HSBC Ultra Short Term Bond Fund - Institutional Option - Monthly Dividend26-Aug-11 0.05475 0.04693 10.200729-Sep-11 0.05854 0.05018 10.205028-Oct-11 0.06116 0.05242 10.2079HSBC Ultra Short Term Bond Fund - Institutional Plus Option - Monthly Dividend28-Jan-11 0.04829 0.04501 10.382125-Feb-11 0.04125 0.03845 10.374125-Mar-11 0.05214 0.04859 10.3865

HSBC Ultra Short Term Bond Fund (HUSBF) HSBC Mutual FundOctober 2011

43

Expense Ratios (%)

01 October 2011 to

31 October 2011

Average for

the month

- Regular 1.30 1.30 - Institutional 1.05 1.05 - Institutional Plus 0.40 0.40

An Open Ended Debt SchemeInvestment Objective: Seeks to deliver returns in the form of interest income and capital gains, along with high liquidity, commensurate with the current view on the markets and the interest rate cycle, through active invest-ment in debt and money market instruments.

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Money Market InstrumentsCPsKotak Mahindra Prime 564.69 7.44% A1+CDsFixedBank of India 698.84 9.21% P1+Indian Overseas Bank 676.71 8.92% A1+ICICI Bank 497.60 6.56% A1+Andhra Bank 481.89 6.35% PR1+State Bank of Hyderabad 470.60 6.20% A1+Vijaya Bank 298.34 3.93% PR1+IDBI Bank 282.40 3.72% PR1+Corporate/PSU DebtFixedSundaram Finance 499.82 6.59% LAA+LIC Housing Finance 495.04 6.52% AAAShriram Transport Finance Company 301.19 3.97% AA+Shriram Transport Finance Company 299.03 3.94% CAREAA+HDFC 207.28 2.73% AAAHDFC 199.41 2.63% AAAPower Finance Corporation 199.24 2.63% AAANABARD 198.98 2.62% AAAState Bank of India 102.14 1.35% AAANABARD 99.74 1.31% AAARural Electrification Corporation 99.05 1.31% AAAPower Finance Corporation 48.57 0.64% AAAGovernment Securities7.80% Government Stock M - 11-Apr-2021 428.72 5.65% SovereignTotal 94.20%Cash EquivalentsCBLOs 172.50 2.27%Reverse Repos 111.92 1.47%Net Current Assets 155.96 2.05%Total Net Assets as on 31 October 2011 7,589.63 100.00%


HSBC Flexi Debt Fund (HFDF) HSBC Mutual FundOctober 2011

44


Date of Allotment 05-Oct-07Benchmark Crisil Composite


` 13.7995


18.02 months


13.91 months

Fund Manager Sanjay Shah &Ruchir Parekh

SIP AvailableMinimumApplicationAmountRegular `10,000Institutional `50,00,000SIP `1,000Exit Load@ Regular &

Institutional Option – 0.50% - if redeemed/ switched out within 6 months from the date of investment.

Annualised Expense Ratio from 01 April 2011 onwards Regular 1.85%Institutional 1.50% @ Including SIP/STP where applicable.





(cum dividend)HSBC Flexi Debt Fund - Regular Option - Monthly Dividend26-Aug-11 0.08086 0.06930 10.393729-Sep-11 0.04459 0.03822 10.352528-Oct-11 0.04683 0.04014 10.3551HSBC Flexi Debt Fund - Institutional Option - Monthly Dividend26-Aug-11 0.08514 0.07298 10.628729-Sep-11 0.04863 0.04168 10.587328-Oct-11 0.05047 0.04325 10.5893HSBC Flexi Debt Fund - Regular Option - Quarterly Dividend18-Mar-11 0.13176 0.12280 11.233517-Jun-11 0.13214 0.11325 11.323516-Sep-11 0.13214 0.11325 11.4250HSBC Flexi Debt Fund - Institutional Option - Quarterly Dividend18-Mar-11 0.13176 0.12280 11.087317-Jun-11 0.13214 0.11325 11.183916-Sep-11 0.13214 0.11325 11.2921HSBC Flexi Debt Fund - Regular Option - Half Yearly Dividend17-Sep-10 0.10541 0.09824 10.488018-Mar-11 0.10541 0.09824 10.665416-Sep-11 0.22023 0.18876 11.0178

Asset AllocationMoney Market Instruments 52.32%Corporate / PSU Debt 36.23%Government Securities 5.65%Cash Equivalents 3.75%Net Current Assets 2.05%

Rating ProfileAAA 74.06%AA 14.49%Sovereign 5.65%Reverse Repos/ CBLOs 3.75%Net Current Assets 2.05%

HSBC Flexi Debt Fund (HFDF) HSBC Mutual FundOctober 2011

45

Name of Scheme Fund Manager

HSBC MIP - Savings & Regular Plan

For Debt portion: Sanjay Shah(from 14 August 2009) & Ruchir Parekh (from 25 January 2011) &For Equity portion: Aditya Khemani(from 24 February 2009) & Jitendra Sriram (31st May 2011)

HSBC Income Fund - Investment Plan

Ruchir Parekh (from 25 January 2011) &Sanjay Shah (from 09 January 2009)

HSBC Income Fund - Short Term Plan

Ruchir Parekh (from 25 January 2011) &Sanjay Shah (from 09 January 2009)

HSBC Floating Rate Fund Long Term Plan

Sanjay Shah (from 09 January 2009) &Kedar Karnik (from 11 January 2010)

HSBC Cash Fund Ruchir Parekh (from 25 January 2011) &Kedar Karnik (from 11 January 2010)

HSBC Gilt Fund Sanjay Shah (from 09 January 2009)

HSBC Ultra Short Term Bond Fund

Sanjay Shah (from 09 January 2009) &Kedar Karnik (from 18 December 2008)

HSBC Flexi Debt Fund Sanjay Shah (from 09 January 2009) &Ruchir Parekh (from 25 January 2011)

Fund Manager’s Experience

Sanjay ShahVice President & Fund Manager - Fixed Income B. Com, A.C.A., Post Graduate Diploma in Management

Experience:Over 11 years of experience in Risk. l HSBC Asset Management (India) Private Ltd Vice President & Fund Manager, Fixed Income since December 2008 onwards l FIL Fund Management Private Ltd Credit Analyst from September 2008 to December 2008 l Lehman Brothers Structured Financial Services Private Ltd Vice President, Convertible Products from September 2006 to September 2008 l Rabo India Finance Private Ltd Senior Manager – Credit Risk from July 2004 to September 2006 l ICICI Bank Ltd Manager, Credit Risk from January 2003 to June 2004 l SBI Funds Management Private Ltd Chief Manager, Debt Funds from June 1999 to January 2003

Fund Managers - MIP & Debt HSBC Mutual FundOctober 2011

46

Ruchir ParekhVice President & Fund Manager - Fixed IncomeMBA, B.Com

Experience:Over 10 years experience in research and Fund Management. l HSBC Asset Management (India) Private Ltd Fund Manager, Fixed Income from January 2011 onwards l AIG Global Asset Management (India) Priave Ltd Fund Manager, Fixed Income from April 2007 - January 2011 l HDFC Asset Management Company Ltd Sr. Manager, Fixed Income Analyst from February 2003 - April 2007 l Bear Stearns & Co., New York, NY Fixed Income Analyst from October 2000 - March 2002 l Moodys Investors Service, New York, NY Senior Associate from June 1997 - October 2000

Kedar KarnikAssociate Vice President & Assistant Fund Manager - Fixed Income M.M.S. (Finance), B.E.

Experience:Over 6 years experience in research and credit rating. l HSBC Asset Management (India) Private Ltd Associate Vice President & Assistant Fund Manager - Fixed Income from December 2008 to present l HSBC Asset Management (India) Private Ltd Associate Vice President & Credit Analyst from July 2008 to December 2008 l CRISIL Ltd Manager – Financial Sector Ratings from September 2005 to July 2008 l ICICI Bank Ltd Management Trainee from May 2005 to September 2005

Fund Managers - MIP & Debt HSBC Mutual FundOctober 2011

47

Comparative Performance of Debt Schemes HSBC Mutual FundOctober 2011

48

Data for the period 01 October - 30 September has been considered in all cases, except for Since Inception returns. All percentage returns are compounded annualised. ‘Since Inception’ returns are calculated on `10 invested at inception. Standard benchmark prescribed by SEBI for short-term/ long-term debt schemes and is used for comparison purposes. Returns on `10,000 are point-to-point returns for the specific time period, invested at the start of the period.

HSBC MIP - Regular Plan Date of Inception : 24 Feb 04Scheme Name & Benchmarks Oct'10 -

Sep '11Oct'09 - Sep '10

Oct'08 - Sep '09

Since Inception

HSBC MIP - Regular Plan - Growth 1.35% 6.89% 16.76% 7.40%Crisil MIP Blended Index (Scheme Benchmark)

1.84% 7.56% 14.20% 6.78%

1 Year T - Bill (Standard Benchmark) 6.70% 4.10% 9.10% NA10 year dated GoI security (Standard Benchmark)

4.60% 4.00% 15.40% 4.80%

` 10,000, if invested in HMIP - R, would have become

`10,135 `10,689 `11,676 `17,204

` 10,000, if invested in Crisil MIP Blended Index, would have become

`10,184 `10,756 `11,420 `16,464

` 10,000, if invested in 1 Year T - Bill, would have become

`10,670 `10,410 `10,910 NA

` 10,000, if invested in 10 year dated GoI security, would have become

`10,460 `10,400 `11,540 `14,287

HSBC MIP - Savings Plan Date of Inception : 24 Feb 04Scheme Name & Benchmarks Oct'10 -

Sep '11Oct'09 - Sep '10

Oct'08 - Sep '09

Since Inception

HSBC MIP - Savings Plan - Growth -1.00% 9.48% 20.57% 8.96%Crisil MIP Blended Index (Scheme Benchmark)

1.84% 7.56% 14.20% 6.78%

1 Year T - Bill (Standard Benchmark) 6.70% 4.10% 9.10% NA10 year dated GoI security (Standard Benchmark)

4.60% 4.00% 15.40% 4.80%

` 10,000, if invested in HMIP - S, would have become

`9,900 `10,948 `12,057 `19,197

` 10,000, if invested in Crisil MIP Blended Index, would have become

`10,184 `10,756 `11,420 `16,464


`10,670 `10,410 `10,910 NA


`10,460 `10,400 `11,540 `14,287

Fund Managers - Aditya Khemani & Jitendra Sriram (for Equity portion)Sanjay Shah & Ruchir Parekh (for Debt portion)

Fund Managers - Aditya Khemani & Jitendra Sriram (for Equity portion)Sanjay Shah & Ruchir Parekh (for Debt portion)



HSBC Ultra Short Term Bond Fund Date of Inception : 17 Oct 06Scheme Name & Benchmarks Oct'10 -

Sep '11Oct'09 - Sep '10

Oct'08 - Sep '09

Since Inception

HSBC Ultra Short Term Bond Fund - Regular - Growth

6.70% 4.04% 5.50% 6.57%

Customised Benchmark Index Fund (Scheme Benchmark)

7.67% 4.14% 7.19% 6.73%

1 Year T - Bill (Standard Benchmark) 6.70% 4.10% 9.10% NA` 10,000, if invested in HUSTBF, would have become

`10,670 `10,404 `10,550 `13,705

` 10,000, if invested in Customised Benchmark Index, would have become

`10,767 `10,414 `10,719 `13,808


`10,670 `10,410 `10,910 NA

Fund Managers - Sanjay Shah, Kedar Karnik.


Assumptions for 10 year dated GOI Security and 1 year T-Bills:1.The data is based on Bloomberg sources including Last Price (LCPR) and Bloomberg Fair Value (BFV).2.It is assumed that the benchmark 10 Year dated GOI security which was trading closest to the beginning date of calculation, is held throughout the period.3.The selection is based on market information on benchmark considered in the respective periods.4.T-Bills issued closest to the beginning date of calculation for 364 days are considered for calculation. 5. T Bill prices from 2003 till date have been derived from GINTB12M Index from Bloomberg.


HSBC Flexi Debt Fund Date of Inception: 05 Oct 07Scheme Name & Benchmarks Oct'10 -

Sep '11Oct'09 - Sep '10

Oct'08 - Sep '09

Since Inception

HSBC Flexi Debt Fund - Ret - Growth 7.47% 4.84% 14.09% 8.28%Crisil Composite Bond Fund Index (Scheme Benchmark)

5.62% 5.48% 10.06% 6.11%

10 year dated GoI security (Standard Benchmark)

4.60% 4.00% 15.40% 6.72%

` 10,000, if invested in HFDF, would have become

`10,747 `10,484 `11,409 `13,732

` 10,000, if invested in Crisil Composite Bond Fund Index, would have become

`10,562 `10,548 `11,006 `12,667


`10,460 `10,400 `11,540 `12,955

49

Data for the period 01 October - 30 September has been considered in all cases, except for Since Inception returns. All percentage returns are compounded annualised. ‘Since Inception’ returns are calculated on `10 invested at inception. Standard benchmark as prescribed by SEBI for short-term/ long-term debt schemes is used for comparison purposes. Returns on `10,000 are point-to-point returns for the specific time period, invested at the start of the period.

HSBC FRF - LTP - Regular Plan Date of Inception : 16 Nov 04Scheme Name & Benchmarks Oct'10 -

Sep '11Oct'09 - Sep '10

Oct'08 - Sep '09

Since Inception

HSBC FRF - LTP - Regular Plan - Growth 7.72% 4.11% 6.62% 6.68%Crisil Liquid Fund Index (Scheme Benchmark)

7.77% 4.05% 6.83% 6.28%

1 Year T - Bill (Standard Benchmark) 6.70% 4.10% 9.10% NA` 10,000, if invested HFRF - LTP, would have become

`10,772 `10,411 `10,662 `15,594

` 10,000, if invested in Crisil Liquid Fund Index, would have become

`10,777 `10,405 `10,683 `15,197


`10,670 `10,410 `10,910 NA

HSBC Gilt Fund Date of Inception : 05 Dec 03Scheme Name & Benchmarks Oct'10 -

Sep '11Oct'09 - Sep '10

Oct'08 - Sep '09

Since Inception

HSBC Gilt Fund - Growth 7.58% 7.26% -6.67% 3.33%I-Sec Composite Bond Fund Index (Scheme Benchmark)

6.43% 5.69% 15.28% 6.07%


4.60% 4.00% 15.40% 4.77%

` 10,000, if invested in HGF, would have become

`10,758 `10,726 `9,333 `12,920

` 10,000, if invested in I-Sec Composite Bond Fund Index, would have become

`10,643 `10,569 `11,528 `15,856


`10,460 `10,400 `11,540 `14,399

Fund Managers - Sanjay Shah, Ruchir Parekh.

Fund Managers - Sanjay Shah, Kedar Karnik.

Fund Manager - Sanjay Shah.

Assumptions for 10 year dated GOI Security and 1 year T-Bills:1.The data is based on Bloomberg sources including Last Price (LCPR) and Bloomberg Fair Value (BFV).2.It is assumed that the benchmark 10 Year dated GOI security which was trading closest to the beginning date of calculation, is held throughout the period.3.The selection is based on market information on benchmark considered in the respective periods.4.T-Bills issued closest to the beginning date of calculation for 364 days are considered for calculation. 5. T Bill prices from 2003 till date have been derived from GINTB12M Index from Bloomber





50

Data for the period 01 October - 30 September has been considered in all cases, except for Since Inception returns. All percentage returns are compounded annualised. ‘Since Inception’ returns are calculated on `10 invested at inception. Standard benchmark prescribed by SEBI for short-term/ long-term debt schemes and is used for comparison purposes. Returns on `10,000 are point-to-point returns for the specific time period, invested at the start of the period.

HSBC Income Fund - Invtt Plan Date of Inception : 10 Dec 02Scheme Name & Benchmarks Oct'10 -

Sep '11Oct'09 - Sep '10

Oct'08 - Sep '09

Since Inception

HSBC Income Fund - Invtt Plan - Reg - Growth

7.39% 5.17% 12.26% 6.57%

Crisil Composite Bond Fund Index (Scheme Benchmark)

5.62% 5.48% 10.06% 5.29%


4.60% 4.00% 15.40% 5.85%

` 10,000, if invested in HIF - IP, would have become

`10,739 `10,517 `11,226 `17,515

` 10,000, if invested in Crisil Composite Bond Fund Index, would have become

`10,562 `10,548 `11,006 `15,747


`10,460 `10,400 `11,540 `16,505

HSBC Income Fund - S T P Date of Inception : 10 Dec 02Scheme Name & Benchmarks Oct'10 -

Sep '11Oct'09 - Sep '10

Oct'08 - Sep '09

Since Inception

HSBC Income Fund - S T P - Reg - Growth

8.14% 3.70% 8.14% 6.37%

Crisil Short Term Bond Fund Index (Scheme Benchmark)

6.81% 4.91% 10.46% 6.01%

1 Year T - Bill (Standard Benchmark) 6.70% 4.10% 9.10% NA` 10,000, if invested in HIF -ST, would have become

`10,814 `10,370 `10,814 `17,228

` 10,000, if invested in Crisil Short Term Bond Fund Index, would have become

`10,681 `10,491 `11,046 `16,721


`10,670 `10,410 `10,910 NA

HSBC Cash Fund Date of Inception:04Dec 02Scheme Name & Benchmarks

Last 7 Days as on

29 Sep 2011

Last 15 Days as on

29 Sep 2011

Last 30 Days as on

29 Sep 2011

Oct'10 - Sep '11

Oct'09 - Sep '10

Oct'08 - Sep '09

Since Inception

HSBC Cash Fund - Growth

7.56% 7.61% 7.52% 7.08% 3.33% 3.94% 5.68%

Crisil Liquid Fund Index (Scheme Benchmark)

8.40% 8.43% 8.29% 7.77% 4.05% 6.83% 5.83%

1 Year T - Bill (Standard Benchmark)

NA NA NA 6.70% 4.10% 9.10% NA

` 10,000, if invested in HCF, would have become

`10,756 `10,761 `10,752 `10,708 `10,333 `10,394 `16,283

` 10,000, if invested in Crisil Liquid Fund Index, would have become

`10,840 `10,843 `10,829 `10,777 `10,405 `10,683 `16,488


NA NA NA `10,670 `10,410 `10,910 NA

Assumptions for 10 year dated GOI Security and 1 year T-Bills:1.The data is based on Bloomberg sources including Last Price (LCPR) and Bloomberg Fair Value (BFV).2.It is assumed that the benchmark 10 Year dated GOI security which was trading closest to the beginning date of calculation, is held throughout the period.3.The selection is based on market information on benchmark considered in the respective periods.4.T-Bills issued closest to the beginning date of calculation for 364 days are considered for calculation. 5. T Bill prices from 2003 till date have been derived from GINTB12M Index from Bloomberg.

Fund Managers - Ruchir Parekh & Sanjay Shah

Fund Managers - Ruchir Parekh & Sanjay Shah.

Fund Managers - Ruchir Parekh & Kedar Karnik.




Statutory Details & Disclaimers

*ICRA’s mutual fund rating methodology is based on evaluating the inherent credit quality of the funds portfolio. As a measure of the credit quality of a debt fund’s assets, ICRA uses the concept of ”credit scores”. These scores are based on ICRA’s estimates of credit risk associated with each exposure of the portfolio taking into account its maturity. To quantify the credit risk scores, ICRA uses its database of historical default rates for various rating categories for various maturity buckets. The credit risk ratings incorporate ICRA’s assessment of a debt fund’s published investment objectives and policies, its management characteristics, and the creditworthiness of its investment portfolio. ICRA reviews relevant fund information on an ongoing basis to support its published rating opinions. If the portfolio credit score meets the benchmark of the assigned rating during the review, the rating is retained. In an event that the benchmark credit score is breached, ICRA gives a month’s time to the debt fund manager to bring the portfolio credit score within the benchmark credit score. If the debt fund manager is able to reduce the portfolio credit score within the benchmark credit score, the rating is retained. If the portfolio still continues to breach the benchmark credit score, the rating is revised to reflect the change in credit quality.

All returns have been sourced from MutualFundsIndia Explorer software unless otherwise stated. With regard to equity schemes (including the equity component of MIPs), Fund performance is calculated on a total return basis (i.e. it includes dividends re-invested) while the benchmark is calculated on a price return basis (i.e. it does not consider dividends re-invested). This document has been prepared by HSBC Asset Management (India) Private Ltd (HSBC) for information purposes only and should not be construed as an offer or solicitation of an offer for purchase of any of the funds of HSBC Mutual Fund. All information contained in this document (including that sourced from third parties), is obtained from sources HSBC, the third party believes to be reliable but which it has not independently verified and HSBC, the third party makes no guarantee, representation or warranty and accepts no responsibility or liability as to the accuracy or completeness of such information. The information and opinions contained within the document are based upon publicly available information and rates of taxation applicable at the time of publication, which are subject to change from time to time. Expressions of opinion are those of HSBC only and are subject to change without notice. It does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies that may have been discussed or recommended in this report and should understand that the views regarding future prospects may or may not be realized. Neither this document nor the units of HSBC Mutual Fund have been registered in any jurisdiction. The distribution of this document in certain jurisdictions may be restricted or totally prohibited and accordingly, persons who come into possession of this document are required to inform themselves about, and to observe, any such restrictions. Mutual fund investments are subject to market risks. Please read the Scheme Information Document carefully before investing.

© Copyright. HSBC Asset Management (India) Private Ltd 2011, ALL RIGHTS RESERVED.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted, on any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of HSBC Asset Management (India) Private Ltd. Investors may obtain Scheme Information Document / Statement of Additional Information and Key Information Memorandums along with application forms from the office of HSBC Mutual Fund.

Statutory Details: HSBC Mutual Fund has been set up as a trust by HSBC Securities and Capital Markets (India) Private Ltd (liability restricted to the corpus of 1 lakh). The Sponsor/associates of the Sponsor/Asset Management Company (AMC) are not responsible or liable for any loss or shortfall resulting from the operation of the Schemes. The Trustees of HSBC Mutual Fund have appointed HSBC Asset Management (India) Private Ltd as the Investment Manager. Risk Factors: All investments in mutual funds and securities are subject to market risks and the Net Asset Value (NAV) of the Scheme(s) may go up or down depending on the factors and forces affecting the securities markets. There can be no assurance that the objectives of the Scheme(s) will be achieved. Past performance of the Sponsor, AMC, Mutual Fund or any associates of the Sponsor/AMC does not indicate the future performance of the Scheme(s) of the Mutual Fund. The names of the Scheme(s) do not in any manner indicate the quality of the Scheme(s) or their future prospects or returns. Please read the Scheme Information Document and Statement of Additional Information carefully before investing.

HSBC MUTUAL FUND INVESTOR SERVICE CONTACT NUMBERS

City Telephone No.Ahmedabad 098983 77319Andhra Pradesh 098496 77319Bangalore 080 4118 6519Bihar 099313 97319 Chandigarh 0172 500 8119 Chennai 044 4200 8719 Coimbatore 098944 77319Delhi 011 4149 0719 Hyderabad 040 6667 4719 Indore 098934 77319 Jaipur 099280 37319 Karnataka 099809 27319 Kerala 098954 77319 Kochi 098954 77319Kolkata 033 2213 9919 Lucknow 099367 97319 Maharashtra / Goa 099600 77321 MP / Chattisgarh 098934 77319 Mumbai 022 6666 8819 NCR 099107 97319 Pune 020 2600 1119,

020 2600 1121Punjab 098769 37319UP 099350 97321Vadodara 098983 77319

sms INVEST to 56767

HSBC Asset Management (India) Private Ltd16, V. N. Road, Fort, Mumbai 400 001Tel.: 022-6614 5000Fax: 022-4002 9600Email: [email protected] : www.assetmanagement.hsbc.com/in

Documents

€¦ · Our current exposure is 14.09% in HMIP Regular and 24.51%, in HMIP Savings. Currently it is more biased towards large caps than mid/small caps. The equity portfolio of HMIP-S