HSBC Index Tracking Funds

The term 'tracker fund', also known as an 'index fund', comes from the tracking function of index fund management, which attempts to replicate the performance of a market index. An index fund tracks a broad market index and invests in all, or a representative number, of the securities within the underlying index.

Index funds provide simple and transparent investment vehicles. The Fund aims to match as closely as possible the selected market reference. Its holding as a replication of a diversified index reflect the financial market and broad economy of a given investment region. Moreover, investors are only exposed to market risks, carving away most of the risk of the Fund underperforming the market.

Managing an index fund is 'nothing but passive'. The Fund Manager continuously monitors the portfolio, and adjusts accordingly his positions to reflect index changes, corporate actions and fund flows.

HSBC has a wide range of Index Tracking Funds available. Please contact our Investor Sevices team on 0800 289 505 or e-mail investor.services@hsbc.com