Change in fundamental attributes of HSBC Income Fund- Short Term Plan | Value Research HSBC Mutual Fund changed the asset allocation pattern of HSBC Income Fund- Short Term Plan with effe
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Change in fundamental attributes of HSBC Income Fund- Short Term Plan

HSBC Mutual Fund changed the asset allocation pattern of HSBC Income Fund- Short Term Plan with effect from January 15, 2014.

The proposed change will allocate 80-100 per cent of the scheme's assets in debt and money market instruments with duration up to 3 years, and the remaining in instruments with duration more than 3 years. Presently, the scheme has been investing 40-100 per cent assets in debt instruments with maturity less than 367 days , and the remaining in instruments with more than 1 year maturity.

It is proposed to change the modified duration to 1-3 years, from the existing 3-20 months. Modified duration reflects a scheme's sensitivity to interest rates.

Existing investors who do not wish to continue in the scheme, in view of the proposed changes, can exit between December 16, 2013 to January 14, 2013.




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