HSBC Mutual Fund is all set to launch two new funds – HSBC India Opportunities fund and HSBC Monthly Income Plan (MIP). Both schemes will open for initial subscription from January 22 to February 13, 2004.
HSBC India Opportunities fund will be an open-end equity fund, which will invest in a wide variety of stocks. The allocation will be spread across a range of large-, mid- and small-cap stocks. The main focus will be on the mid-cap companies, which have the potential to become large-caps over time. Though the fund will basically invest in equities, it may move some portion of its assets (up to 50 per cent) into debt and money market instruments, in case equity markets tanks.
HSBC MIP will have two plans – Regular Plan and Savings Plan. Though both plans will largely invest in debt and money market instruments, it's the difference in equity allocation that separates the two plans. Under the Regular plan, the equity exposure is limited to 15 per cent of the total assets. On the other hand, the Savings Plan will be bit aggressive -- its equity exposure can go up to 25 per cent of the total assets.
With both these fund launches, the total number of funds managed by HSBC mutual fund will go up to 13. HSBC mutual fund was incorporated in February 2002 and launched its first product in December 2002. Currently, it manages one equity fund, four debt funds and six short-term funds with total assets under management of Rs 3,877.83 crore, as on December 31, 2003.
In a short span of over a year, the schemes of HSBC mutual funds have shown a strong performance in their respective categories. HSBC Equity's 160.23 per cent return in 2003 was the second best in the category after Franklin India Prima. And, HSBC Income Investment gave a return of 9.42 per cent in 2003 and was ranked third in the category.