HSBC Dynamic Fund
Why equity funds?
All of us aspire for enough wealth to be able to finance at least some of our dreams. Giving our family the very best, educating our children, indulging in a hobby - things that can make our lives more rewarding. One of the best chances of doing so is by investing wisely and regularly today. When one is investing for the long-term, one has to look at generating a return that is greater than inflation. For example, if you get a return of 10 per cent from your investment and inflation is 8 per cent then the real return you have made is 2 per cent. Studies show that equity and equity linked instruments tend to outperform all other forms of investments in the long run. Hence you should look at investing some portion of your money in equity markets with an aim to meet future goals comfortably.
Presenting the HSBC Dynamic Fund
HSBC Dynamic Fund (HDF), a fund that seeks to capitalise on the potential upside in equity markets, and yet attempts to limit the downside risk by the active use of money market instruments and derivatives. The fund aims to normally invest in equity but can react quickly to a negative market by moving 100 per cent of its assets into money market instruments, fixed income securities and derivatives with an aim to limit the downside risk, in the event that the fund manager is bearish on the market.
| Name of the scheme | HSBC Dynamic Fund |
|---|---|
| Investment 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 at times when the view on equity markets seems negative. |
| Options | Dividend (payout/reinvestment) and growth |
| Date of allotment | 24 September 2007 |
| Minimum application amount | Rs 10,000 per application |
| Minimum additional investment | Rs 1,000 and multiples of Rs 1 thereafter |
| Load structure (including SIP/STP where applicable) | Entry Load Nil Exit Load 1% - if redeemed/switched out$ within 1 year from date of investment; otherwise Nil. Nil - Effective from March 01, 2013 for prospective investments $ No load in case of switches between equity schemes of HSBC Mutual Fund. |
| Systematic investment plan | Monthly/Quarterly plan Monthly - a minimum of 12 cheques of Rs 1,000 each Quarterly - a minimum of 4 cheques of Rs 3,000 each |
| 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 two daily newspapers and updated on the AMC's website www.assetmanagement.hsbc.com/in |
| Cut-off time Subscription Redemption Switch in Switch out |
3.00 pm 3.00 pm 3.00 pm 3.00 pm |
| Minimum redemption amount | Rs 1,000 and multiples of Rs 1 thereof |
| Mode of holding | Single, Joint or Anyone or Survivor |
| Nomination facility | Available to individuals for single/joint holding |
| Redemption | Within 10 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 (net of applicable taxes) within three business days under normal circumstances |
| Asset allocation | Equity and equity related instruments - 0 to 100 per cent, and debt and money market instruments - 0 to 100 per cent |
| Dividend frequency | Declaration of dividend and its frequency will inter-alia depend upon the distributable surplus. Dividend may be declared from time to time at the discretion of the trustees. |
| Purchase redemptions | All business days |
| NAV calculation | All business days |
| Fund manager | Tushar Pradhan (for Equity portion) and Sanjay Shah (for Fixed Income portion) |
