HSBC Fixed Term Series
HSBC Fixed Term Series
HSBC Fixed Term Series (HSBC FTS) is a close-ended scheme offering various plans with fixed maturity tenors that range generally from three months to 36 months. The investment objective of the scheme is to seek generation of reasonable returns by investing in a portfolio of fixed income instruments normally maturing in line with the time profile of the respective plan(s).
HSBC FTS will primarily invest in debt instruments (like bonds issued by, both, the government and corporates) and money market instruments (like treasury bills, certificates of deposit and commercial papers).
An investor can subscribe to units of the scheme only during the NFO after which the scheme will not be available for fresh subscriptions or switches. Options of various tenors are offered under the scheme from time to time. Investors are requested to get in touch with our sales or customer service representatives for further details.
Key benefits of investing in HSBC FTS
- Low interest rate risk: Since the scheme will invest in securities that normally mature in line with the maturity period of the respective plan(s), the interest rate risk and liquidity risk is minimal. As securities are generally held till maturity, interest rate volatility is significantly reduced
- Reasonable return: HSBC FTS offers returns in line with market expectations. Further, once the fund managers deploy the funds, returns are generally predictable since the instruments are normally held till maturity
- Lower expenses as compared to income schemes: Since instruments constituting the fund are normally held till maturity, the number of transactions in this fund is generally lower compared to income schemes. This generally reduces costs
- Indexation benefit: Depending on the tenor of the plan investors can take advantage of indexation benefits on returns generated by the scheme. If the tenor of the scheme is spread over two financial year endings, the investor may gain from 'Double Indexation' thereby reducing his tax liability
