HSBC Income 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 income fund?
Most people have regular expenses and chances are, you do too. It could be as simple as paying your phone bill every month or a payment installment on a household item. Alternatively one may be looking to save money and grow it steadily. Wouldn't it be great if you could make an investment that gives you a regular income, to help you meet those expenses.
Presenting the HSBC Income Fund
HSBC Income Fund (HIF) seeks to generate regular returns by investing in bonds, debentures, government securities and short-term instruments like commercial papers, reports etc. If you have a time horizon greater than a year and seek regular returns, you can invest in the Investment Plan of HSBC Income Fund. Alternatively if your time horizon is one to six months, we have a Short Term Plan which you can invest in.
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Name of the scheme |
HSBC Income Fund |
|---|---|
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Investment objective |
Aims to provide reasonable income through a diversified portfolio of fixed income securities. The AMC's view of interest rate trends and the nature of the plans will be reflected in the type and maturities of securities in which Short Term and Investment Plans are invested. |
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Plans |
Short Term Plan - Regular, Institutional and Institutional Plus |
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Options |
Regular, Institutional and Institutional Plus Options with Dividend (Payout/Reinvestment) and Growth for Short Term Plan and Investment Plan |
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Date of allotment |
10 December 2002 |
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Minimum application amount |
Short Term Plan - Regular - Rs 100,000 |
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Minimum additional investment |
Rs 1,000 and in multiples of Rs 1.00 thereafter for Short Term Plan Regular and Investment Plan Regular |
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Load structure (including SIP/STP where applicable) |
Short Term Plan Exit Load Investment Plan Exit 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 Centers 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 |
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Systematic investment plan |
Monthly/Quarterly plan |
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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 10m, 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 1,000 and multiples of Rs1.00 thereof |
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Mode of holding |
Single, Joint, Anyone or Survivor |
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Nomination facility |
Available to individuals for single/joint holding |
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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 3 business days under normal circumstances |
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Asset allocation |
Short Term Plan 40-100 per cent in debt and money market instruments residual maturity/average maturity less than 367 days and floating rate instruments where the rest tenor is one year or less and 0-60 per cent in debt instruments with residual maturity/average maturity greater than 182 days. Investment Plan 40-100 per cent in debt instruments with residual maturity/average maturity greater than 182 days and 0-60 per cent in money market and debt instruments (including cash, money at call) with residual maturity/average maturity less than 183 days and floating rate instruments where the reset tenor is one year or less. |
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Dividend frequency |
Declaration of dividend and its frequency will inter-alia depend upon the distributable surplus. |
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Purchase redemptions |
All business days |
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NAV calculation |
All business days |
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Fund manager |
For Investment Plan and Short Term Plan - Ruchir Parekh and Sanjay Shah |
