HSBC Tax Saver Equity 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 Tax Saver Equity Fund
HSBC Tax Saver Equity Fund (HTSF) is an Equity Linked Savings Scheme (ELSS) that offers an opportunity for tax saving by providing Sec 80C benefits as per the Income Tax Act 1961. Moreover, it seeks to provide capital appreciation by investing in a diversified portfolio of equity and equity-related instruments of companies across various sectors and industries with no capitalization bias. With the Indian economy possessing strong fundamentals and corporate earnings showing great growth potential, equity as an asset class looks set to provide remarkable returns.
This product is suitable for investors who are seeking*:
- To create wealth over long term
- Investment in equity and equity related securities with no market capitalisation bias
- High risk (BROWN)
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Note: Risk may be represented as:
|Name of the scheme||HSBC Tax Saver Equity Fund|
|Type of scheme||An open-ended Equity Linked Savings Scheme (ELSS)|
|Investment objective||Aims to provide long term capital appreciation by investing in a diversified portfolio of equity and equity related instruments of companies across various sectors and industries, with no capitalisation bias. The Fund may also invest in fixed income securities.|
|Options||Growth and dividend (payout)
The investment shall be locked in for a period of three years from the date of allotment.
|Date of allotment||05 January 2007|
|Minimum application amount||Rs 500|
|Minimum additional investment||Additional investment in multiples of Rs 500|
|Load structure (including SIP/STP where applicable)||Entry Load
* No Load in case of switches between equity Schemes of HSBC Mutual Fund. The applicable exit loads (if any) at the time of allotment of the Schemes of HSBC Mutual Fund shall also be charged on investments made by all investors including Fund-of-Funds Scheme(s). Bonus units and units issued on reinvestment of dividends shall not be subject to exit load. The exit load set forth is subject to change at the discretion of the AMC and such changes shall be implemented prospectively.
|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 and AMFI Website www.amfiindia.com|
|Systematic investment plan||Monthly/Quarterly plan.
Monthly - a minimum of 6 post-dated cheques of Rs 500 each each (6 in case application is through non-ECS locations)
Quarterly - a minimum of 4 post-dated cheques of Rs 500 each
|SIP Date||3rd, 10th, 17th or 26th of every month in case of Monthly SIPs and 10th of the relevant month in case of quarterly SIPs. (If these dates fall on a holiday, the transaction will be taken as of the next business day)|
|Minimum redemption amount||Rs 500|
|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||80-100 per cent in equities and equity-related securities 0-20 per cent in debt, money market instruments and cash.|
|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||Aditya Khemani|