HSBC Asset Management Company has launched its first mutual fund schemes on November 14, 2002. With these schemes HSBC has become the 32nd AMC in India. The schemes would be open for initial offer till December 3, 2002. This initial bouquet consists of three schemes - Equity, Income and Cash. These are plain vanilla funds.
The minimum initial investment in HSBC Equity Fund is Rs 5000. The fund would charge initial expenses of 2 per cent. On an ongoing basis too, the fund would charge an entry load of 2 per cent though no exit load.
HSBC Income Fund has two plans - Short Term and Investment Plan. The minimum investment for Investment and Short Term Plan are Rs 5000 and Rs 1 lakh respectively. The fund would not charge any entry or exit load in case of Short Term Plan, but under the Investment Plan it would charge an exit load of 0.25% for redemption within 3 months and investment upto Rs 50 lakhs. The frequency of dividend declaration in the Short Term and Investment Plan will be on a monthly and quarterly basis respectively.
HSBC Cash Fund, a liquid fund, has a minimum investment of Rs 1 lakh. It offers only growth option. The initial issue expense of this fund would be borne by the AMC.
The investors of HSBC Equity Fund and HSBC Income-Investment Plan can avail Systematic Investment Facility, by providing a minimum of 6 post-dated cheques of Rs 1000 each. They also offer a quarterly Systematic Investment Plan by investing a providing 2 post-dated cheques of a minimum of Rs 3000 each. Systematic Withdrawal Plan is available only under the growth options of HSBC Equity Fund and HSBC Income Fund-Investment Plan.