HSBC Flexi Debt 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
Presenting the HSBC Flexi Debt Fund (HFDF)
HSBC Flexi Debt Fund (An open-ended debt scheme), which endeavours to trade duration and credit to generate alpha for you. The fund uses a proactive strategy of attempting to encash on interest rate fluctuations and generate alpha under any market condition.
HSBC Flexi Debt Fund endeavours to deliver returns through active investments in debt and money market instruments under all market conditions. It aims to actively trade duration and credit to generate alpha. The fund also has aggressive limits as compared to traditional bond funds.
|Name of the scheme||HSBC Flexi Debt Fund|
|Investment objective||To deliver returns in the form of interest income and capital gains, along with high liquidity, commensurate with the current view on the markets and the interest rate cycle, through active investment in debt and money market instruments.|
|Plans||Regular and Institutional|
|Options||Dividend (payout/reinvestment) and growth|
|Date of allotment||5 October 2007|
|Minimum application amount||Rs 10,000 per application for Regular Option(s)and Rs 50,00,000 per application in Institutional Option(s)|
|Minimum additional investments||Rs 1,000 and multiples of Rs 1 thereafter.|
|Load structure (including SIP/STP where applicable)||Entry Load
0.75% in Regular & Institutional Option, if redeemed/switched out within 6 months from the date of investment.
Nil - Effective from March 01, 2013 for prospective investments.
|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 the AMC's website www.assetmanagement.hsbc.com/in|
|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
|Systematic encashment plan||Monthly/Quarterly. NAV as on first business day of each month.|
^ 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.
|Minimum redemption amount||Rs 1,000 and multiples of Rs 1 thereof
**Minimum transaction amounts in SIP/STP, as may be available in various schemes may differ from the amounts mentioned herein.
|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 one business day under normal circumstances|
|Asset allocation||Debt and money market instruments : 0 to 100 per cent (Risk - low to medium)|
|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||Sanjay Shah and Ruchir Parekh|