HSBC Investments launches HSBC Emerging Markets Fund
HSBC Investments today launched the HSBC Emerging Markets Fund (HEMF), an open-ended scheme that seeks to provide long-term capital growth by investing in emerging economies the world over. The fund would invest both within and outside India. Examples of some countries that the fund may seek to invest in are China, Russia, Indonesia, South Korea, Brazil, Mexico and many more. Indian investors can not only seek to capture growth opportunities outside the country but may also seek to spread risk by diversifying their investments across geographical markets instead of staying invested in one particular country.
HSBC Investments has a longstanding track record globally with USD364bn (as on 30 September 2007) assets under management (AUM) worldwide and a presence in emerging markets with approximately USD85bn (as on 30 September 2007) AUM. (Source: HSBC Investments, 30 September 2007).
HEMF can invest up to 100 per cent of its assets in overseas markets. The fund may also invest a limited proportion in domestic debt and money market instruments in case equity markets are considered unfavourable.
Emerging markets are expected to be drivers of the world economy in the years to come. Emerging markets are backed by continuing improvement in economic fundamentals and abundant human and natural resources and also display a great degree of diversity. Key strengths of emerging economies are:
- High growth rates
- Increasing company profitability
- Reducing risks
- Attractive valuations
Sanjay Prakash, CEO of HSBC Investments (India), said "With the HSBC Emerging Markets Fund, an investor has the opportunity to invest through other emerging markets in industries relatively under-developed in India. His risk can also be diversified through investments across geographies"
The offer period of the HSBC Emerging Markets Fund runs from 28 January 2008 until 25 February 2008. The minimum investment amount is Rs 10,000.