HSBC Small Cap 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 Small Cap Fund (HSCF)
HSBC Small Cap Fund (HSCF) seeks to provide long-term capital appreciation primarily from a diversified portfolio of equity and equity related instruments of small cap companies.
The fund managers will selectively pick stocks focussing on fundamentals of the business, the industry structure, the quality of management, sensitivity to economic factors, the financial strength of the company and the key earning drivers.
|Name of the scheme||HSBC Small Cap Fund (HSCF)|
|Type of scheme||An open-ended Equity Scheme|
|Investment objective||To provide long-term capital appreciation primarily from a diversified portfolio of equity and equity-related instruments of small cap companies.|
|Options||Dividend (payout/reinvestment) and growth|
|Date of allotment||24 March 2008|
|Minimum application amount||INR10,000|
|Minimum additional investment||INR1,000/- and multiples of INR1/- thereafter|
|Load structure (including SIP/STP where applicable)||Entry 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.
|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:
|Systematic investment plan||Monthly/Quarterly Plan
Monthly - a minimum of 12 cheques of INR1,000 each
Quarterly - a minimum of 4 cheques of INR3,000 each
|Systematic encashment plan||Monthly/Quarterly. NAV as on first business day of each month. Fixed amount or Capital Appreciation|
|Cut-off time Subscription Redemption Switch In Switch Out||3.00 pm
|Minimum redemption amount||INR1,000 and multiples of INR1 thereof|
|Mode of holding||Single, Joint or Anyone or Survivor|
|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||Equities and equity-related instruments of Small Cap Companies***: 65-100 per cent
Equity and equity-related instruments of other than Small Cap Companies: 0-35 per cent and Debt plus Money Market Instruments: 0-35 per cent
*** Small Cap Companies are defined as the companies with the market capitalisation which is 1) lower than or equal to the market capitalisation of the stock in the BSE Small Cap Index with the largest market capitalisation and 2) higher than or equal to the market capitalisation of the stock in the BSE Small Cap Index with the smallest market capitalisation.
|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||Dhiraj Sachdev|