HSBC Cash Fund
Why Debt Funds?
The world of investing can be a cold, chaotic, and confusing place. Markets can play havoc with your investments from time to time. It is therefore very critical to be disciplined with your investments so that the downside risk is controlled. This means adopting fundamental financial concepts diligently and consistently while making your investments.
Some of the most important of these are the concepts of Risk/Return Tradeoff, Portfolio Diversification and Asset Allocation, and Tax Planning. These concepts explain the need to diversify investments across various asset classes to minimise risk and improve tax efficiency thereby highlighting the need for investments in Debt Funds.
There are several reasons why one should look at debt as an asset class to invest in. Some of the main reasons are:
- Need to balance risk and return - The Risk/Return Tradeoff
- Need to diversify - Portfolio Diversification and Asset Allocation
- Need for Tax Planning
Why Cash Funds?
Conventional avenues for idle surpluses earn very little. Sometimes nothing at all! In a Cash Fund your money generally earns more while virtually assuring you of instant liquidity.
Presenting the HSBC Cash Fund
HSBC Cash Fund (HCF) will primarily invest in money market instruments and short term debt market instruments. The objective of the fund is to generate income with a minimal exposure to risk and to preserve the capital. As a result it is suited for parking idle funds and ensures high liquidity by way of one business day redemption under normal circumstances. It is suited for individuals and corporates who want to invest for a period of one day to a month. You do not need to specify your time horizon before entering the fund. You can even make investments for just a day! So the next time you have surplus funds, you know what to do.
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Name of the scheme |
HSBC Cash Fund |
|---|---|
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Investment objective |
To provide reasonable returns, commensurate with low risk while providing a high level of liquidity, through a portfolio of money market and debt securities. |
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Plans |
Regular, Institutional (HCF - I), Institutional Plus (HCF - IP) |
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Options |
Regular Option with daily dividend reinvestment, weekly dividend reinvestment and growth sub-options. Institutional and Institutional Plus Options with daily, weekly and monthly dividend and growth sub-options. |
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Date of allotment |
04 December 2002 |
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Minimum application amount |
Regular - Rs 100,000 |
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Minimum additional investment |
Rs 1,000 and multiples of Rs 1 thereafter for Regular Option. |
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Load structure(including SIP/STP where applicable) |
Entry Load |
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Transparency |
NAV will be determined on every business day. NAV of the Scheme/Option(s) shall be made available at all Investor Service Centres of the AMC. The AMC shall have the NAV published in a daily newspaper and updated on AMC's website www.assetmanagement.hsbc.com/in |
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Systematic investment plan |
Minimum Investment Amount |
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Systematic encashment plan |
Monthly/Quarterly. NAV as on first business day of each month. |
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Cut-off time ^ |
^In respect of purchase of units with amount equal to or more than Rs 10 crore, irrespective of the time of receipt of application, the closing NAV of the day on which the funds are available for utilisation shall be applicable. |
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Minimum redemption amount** |
Rs 1000 and multiples of Rs 1 thereafter for Regular Plan. **Minimum transaction amounts in SIP/STP, as may be available in various schemes may differ from the amounts mentioned herein. |
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Mode of holding |
Single, Joint or Anyone or Survivor |
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Nomination facility |
Available to individuals for single/joint holding. |
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Redemption |
Within ten working days of the receipt of the redemption request at the Official Points of Acceptance of Transactions of the Registrar and the AMC. The Fund would endeavour to effect redemption payouts within one business days under normal circumstances. |
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Asset allocation |
Up to 50% in debt instruments with residual maturity/average maturity upto 91 days. Up to 100% in money market instruments (including cash and money at call) with residual maturity/average maturity upto 91 days. |
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Dividend frequency |
Declaration of dividend and its frequency will inter-alia depend upon the distributable surplus. Dividend shall be generally declared daily and weekly in the Regular Option and shall be declared daily, weekly and monthly in the Institutional and Institutional Plus Option. |
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Purchase redemptions |
All business days |
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NAV calculation |
All business days |
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Fund manager |
Ruchir Parekh and Sanjay Shah |
