€¦ · index 1 in this issue ... fund manager commentary pg 2 hsbc equity fund pg 6 hsbc india...

August 2013

Index

1

In this Issue ...

Fund Manager Commentary Pg 2

HSBC Equity Fund Pg 6

HSBC India Opportunities Fund Pg 8

HSBC Midcap Equity Fund Pg 10

HSBC Progressive Themes Fund Pg 12

HSBC Tax Saver Equity Fund Pg 14

HSBC Unique Opportunities Fund Pg 16

HSBC Dynamic Fund Pg 18

HSBC Emerging Markets Fund Pg 20

HSBC Small Cap Fund Pg 21

HSBC Brazil Fund Pg 23

Fund Managers - Equity Pg 24

Comparative Performance of Equity Schemes Pg 26

HSBC MIP - Savings Plan Pg 29

HSBC MIP - Regular Plan Pg 31

HSBC Income Fund - Investment Plan Pg 33

HSBC Income Fund - Short Term Plan Pg 35

HSBC Floating Rate Fund - Long Term Plan Pg 37

HSBC Cash Fund Pg 39

HSBC Gilt Fund Pg 41

HSBC Ultra Short Term Bond Fund Pg 42

HSBC Flexi Debt Fund Pg 44

Fund Managers - MIP & Debt Pg 46

Comparative Performance of MIP & Debt Schemes Pg 47

Fund Manager Commentary August 2013

2

Equity & MIP

Market UpdateEquities extended their losses during August 2013, as a weakening currency and faltering growth impacted investors’ confidence in the famed India story. Currency continued to slide through the month and it repeatedly breached historical low levels versus the USD. With the country running a high Current Account Deficit (CAD), the weakness in Indian Rupee (INR) could add to more woes as it could escalate India’s import bill and there may be a real threat of a sovereign downgrade by the international rating agencies. While the Rupee depreciation may have been triggered by the US Federal Reserve’s Quantitative Easing (QE) tapering talks, but the high CAD has worsened the scenario for India. The Reserve Bank of India (RBI) came out with some measures which were aimed at easing the system liquidity after the tightening actions undertaken in July 2013. The monsoon session of the parliament saw two key bills getting passed in the Lok Sabha, viz. the Food security bill & the Land acquisition bill. While the market participants may not question the intention behind the food security provision, the timing may be questionable given the stretched financial situation of the country. Some of the provisions of the land bill also were viewed to increase the cost & time of acquiring land for various industry projects. The April-June quarterGDP figure also came below expectations at 4.4%, showing enough stress in the economy.

Nifty & BSE Sensex indices were down 4.7% & 3.8% respectively for the month, as currency factors and growth concerns took the centre stage. The indices like BSE Midcap & BSE Smallcap shed 4.4% & 2.3% respectively as the equity markets experienced a broad based sell-off. Amongst the BSE sectoral indices, BSE Metals & BSE IT were the notable outperformers gaining 13.1% & 7.6% respectively for August 2013. While metal stocks saw a rally due to improving macro data in the developed markets & China, the Information Technology sector is one of the key beneficiaries of the currency depreciation, given their dollar denominated revenues. The Foreign Institutional Investors (FIIs) kept their feet firmly on the selling pedal as growth concerns & currency depreciation impacted equity market sentiments. FIIs net sold equities worth USD 947 mn (cash segment) and August 2013 was the third consecutive month of net outflows from the segment. The YTD net inflows from FIIs now stand at USD 11.4 bn. On the other hand, the Domestic Institutional Investors (DIIs) turned net buyers in a falling market with around ~USD 1.1 bn net inflows during the month, with a major contribution coming in from the insurance companies. The YTD figure from the DIIs now stands at ~USD 6.8 bn of net outflows. The currency crisis deepened during August 2013 with the INR continuously hitting new historical lows versus the USD. The weakening currency affected investor sentiments adversely and further measures taken by the RBI to contain the volatility in INR had very little impact on stabilising the currency. The domestic growth also faltered as the April-June quarter GDP growth came in at 4.4%, well below expectations. The growth was hit because of a sluggish performance by the industrials sector as the same is reeling under the effects of policy roadblocks.

Currency woes continued to hit equity sentiments adversely

Source: Bloomberg ; Central Statistical Organization (CSO) India

Source: Bombay Stock Exchange (BSE)

Currency crisis deepens …..

…. Domestic growth falters

4.00%5.00%6.00%7.00%8.00%9.00%

10.00%

Mar

/08

Aug

/08

Jan/

09

Jun/

09

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/10

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Jul/1

1

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Repo Rate Movement

Repo Rate

-5.0%

-4.0%

-3.0%

-2.0%

-1.0%

0.0%

Sensex BSE100 BSE200 BSE500 BSEMidCap

BSESmallCap

Indices Performance - August 2013

Inflation & Industrial Growth

WPI inches up

The Wholesale Price Index (WPI) inched up to read at 5.8% for July 2013 Year-on-Year(YoY) (vs. 4.9% in June 2013) and this was the second consecutive month wherein inflation numbers reflected higher. Core inflation also rose marginally to 2.4% (YoY vs. 2.1% in June 2013), though it remained within the RBI’s comfort zone. The Consumer Price Index (CPI) on the other hand showed some signs of easing with a print of 9.6% for July 2013 (YoY vs. 9.9% for June 2013).

Growth remains elusive on the industrial output front

The Industrial output data continued to be subdued with the Index of Industrial Production (IIP) showing a reduction of 2.2% for the month of June 2013 (YoY vs -2.8% in May 2013). The industrial production was dampened by the continued de-growth in consumer durables and capital goods segment.

Global Economic Scenario

Geo-political tensions in Syria – a key event

The geo-political developments in the Middle East and the likelihood of the United States’ military intervention in Syria would be the key event to watch-out for. While the US has indicated that its involvement in Syria would be limited in scope, but any deterioration there may spook global markets. As a direct fall-out of this crisis in Syria, the crude prices may move up and this could hit oil import economies like India adversely. Also, just like India other emerging markets such as Brazil, South Africa, Indonesia, Turkey, etc. also saw their currencies weakening against the USD due to the US Federal Reserve’s Quantitative Easing (QE) tapering talks and the resultant outflows. On the contrary, the recent PMI data (Purchasing Managers’ Index) for China shows a slight positive trend and this along with the US recovery & a normalizing Euro region augur well for a rebound in the global economic environment. This scenario also may lead to shift in investor preference to the developed markets over the emerging ones.

Going ForwardWe are going through some very challenging times for the Indian economy. The weak macro-economic condition has been accentuated by a widening Current Account Deficit (CAD) due to the rising import bills and a deteriorating trade balance. The domestic growth is also challenged due to stalled projects and drying up of the private investment cycle. The external environment has not made matters easy either as the QE tapering talks and an escalating conflict in Syria may impact near term sentiments of the investors. Any correction in the growth trajectory of the economy may require some bold policy decisions from the government and those decisions should be aimed at addressing both the near and medium term concerns haunting the investors. On the contrary, the collapse of INR has made it significantly undervalued at present as the currency is closer to some pessimistic estimates whether valued on the basis of Real Effective Exchange Rate (REER- weighted average of the country’s currency vs. the basket of other currencies adjusted for inflation) or on the basis of the Purchasing Power Parity (PPP). This may mean that the likelihood of the currency falling further may be limited. Moreover, the extreme pessimism in equity markets may well provide investors with exciting investment opportunities at reasonable or even battered down valuations. Big market movements may happen without notice and also in short spurts and the key is not to time the markets but to invest in a disciplined and staggered manner. We at HSBC, follow a bottom-up stock picking strategy aimed at investing in profitable companies at reasonable valuations. We continue to be firm believers in India’s long term growth potential and thus advise investors to stay invested and take the Systematic Investment Plan (SIP) route to tide over the volatile market conditions. The markets are currently appearing cheap versus their historical long term moving average and hence it may be prudent to increase equity allocation especially during times of sharp market corrections.Source: Bloomberg, for all data except where mentioned otherwise


3



3.0%4.0%5.0%6.0%7.0%8.0%9.0%

10.0%

Nov

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12Fe

b/12

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Jun/

12Ju

l/12

Aug

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Nov

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13Fe

b/13

Mar

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Jun/

13Ju

l/13

Wholesale Price Index Inflation (WPI)

WPI YoY growth (New series; base 2004-05)

-5.0%

0.0%

5.0%

10.0%

Nov

/11

Dec

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Jan/

12Fe

b/12

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Jun/

12Ju

l/12

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b/13

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Jun/

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Index of Industrial Production (IIP)

IIP YoY Growth (New Series; base 2004- 05)


4

Review: HSBC Progressive Themes FundCurrently focusing on the following themes; 1.Economic Reforms (37.8%) which includes Financial sector reform- 30.8% and Oil & Gas Sector deregulation sub theme- 7%2.Infrastructure (30.9%) which includes Power- 12.6%, Construction– 11.5% and Logistics- 6.8%. Well diversified exposure across sectors encompassing the above themes.Review: HSBC Dynamic FundThe cash levels and sector allocation in the fund are likely to change depending on the market conditions and technical factors.Review: HSBC MIP Regular and Savings PlansOur current exposure is 13.89% in HMIP Regular and 24.90%, in HMIP Savings. Currently it is more biased towards large caps than mid or small caps.

Review: HSBC Midcap Equity FundBeing overweight information technology, materials and underweight industrials helped performance while being overweight consumer discretionary, consumer staples and underweight energy, healthcare, telecommunication, utilities hurt performance.

Sectors HSBC Equity Fund

HSBC India Opportunities

Fund

HSBCMidcap

Equity FundConsumer Discretionary = Consumer Staples Energy Financials = = Healthcare = = Industrials = Information Technology Materials = Telecommunication = = Utilities

Overweight Underweight = Neutral

Review: HSBC India Opportunities FundBeing overweight information technology & underweight consumer discretionary helped performance while being overweight energy and underweight consumer staples, utilities hurt performance.

Review: HSBC Equity FundBeing overweight information technology & underweight industrials helped performance while being overweight energy and underweight consumer staples, utilities hurt performance.

Debt

Market Assessment

Domestic bond markets witnessed increased volatility due to:a) Further measures announced by the Reserve Bank of India (RBI) impacting bond prices significantly,b) Continuous supply of sovereign bonds leading to a fall in bond pricesc) Turmoil in Middle-East leading to rise in crude prices, inducing fear of a further increase in India’s Current Account Deficit (CAD). The Indian Rupee (INR) witnessed further depreciation as the currency traded at all-time low of 68.80 levels against the US Dollar (USD). Benchmark ten year Government Securities Bonds yield traded at near term high of 9.47% wherein the RBI stepped in by introducing measures to support long term yields. Overnight rates remained fixed at around 10.25% implying further strain on (money market) yields.

Economic Events and Data Impacting Debt Markets

Policy makers continue to induce measures to temper the fall in currency and bond prices

The government announced further measures during the month to reduce the pace of INR depreciation. Unlike in the past, wherein the Government of India and the RBI have preferred to address a depreciating INR by increasing interest rates, the latest measures announced have been in context to the following

• Augmenting inflows of foreign exchange - by issuing quasi (virtual) sovereign bond issuances,

• Lowering imports - through further curbs on oil, gold, silver, other non-essentials

• Increasing exports – fresh impetus to Special Economic Zones • Tightening the INR outflows by resident.

Measures relating to resident outflows, as mentioned below, led to sell-off across asset classes as the same were probably perceived to be a precursor to increased capital controls.Revised norms on Overseas Direct Investments (ODI):

• Limit on foreign investment of companies cut substantially. • Any ODI in excess of 100% of the net worth shall require the RBI

approval • Certain public sector companies were exempted from the above

restrictionsRevised Remittance Scheme for Resident Individuals:

• Limit on outward remittances by residents (including gifts etc.) cut to USD 75,000 per financial year from USD 200,000 earlier

• Individuals can’t buy immovable property outside India • Remittances should not be used for margin trading, lottery or any other

prohibited activities.Following the significant rise in long term yields, the RBI announced some measures to address the market conditions.

• Open market purchase operations (OMOs) of long dated G-Secs in a calibrated manner

• Banks can transfer 24.5% of SLR securities (a statutory reserve requirement of the banks imposed by the RBI) from the Mark to Market (MTM) portfolios to Hold to Maturity (HTM) category as a one-time measure. Banks can value these securities as on 15 July, 2013 when the first set of liquidity tightening measures were announced by the RBI leading to substantial losses for the banks.

• Banks can account for net depreciation on account of MTM valuation over the remainder of FY 2013-14 in equal installments

Going forward, the Reserve Bank will calibrate the issuances of cash management bills (CMBs), including scaling it down as may be necessary, to keep the money market rates around Marginal Standing Facility (MSF) rate (a higher rate at which banks can borrow to meet their short term requirements) until the volatility of rupee eases.

Macro data indicates a bad mix of growth and inflation

Industrial production showed a negative growth of -2.2% Year-on-Year (YoY) in June 2013, below expectations, following negative growth of -2.8% in May 2013, led by declines in consumer non-durables and capital goods output growth. Wholesale Price Index (WPI) inflation rose sharply to 5.8% YoY in July 2013 from 4.9% in June 2013 and market expectations of ~ 5.1%. Consumer Price Index (CPI) inflation moderated to 9.6% YoY in July 2013 from 9.9% in June 2013 predominantly owing to moderation in prices of cereals and pulses.India’s trade deficit (measure of negative balance of trade where imports exceed exports) remained flat at USD 12.3bn in July 2013 from USD 12.2 bn in June 2013 due to better-than-expected export growth. Exports grew by 11.6% YoY in July 2013 after shrinking 4.6% in June 2013 whereas imports shrunk to 6.2% YoY compared to a decline of 0.4% in June 2013. With domestic demand being weak and global demand improving, the trade deficit should improve this fiscal year (April 2013-March 2014).GDP growth registered a below-expectations 4.4% YoY in the April-June quarter of 2013 versus 4.8% in the previous quarter.

Market Activity

Reduced net supply augurs well for sovereign bonds

The G-Secs supply for August 2013 remained higher than previous months and tight liquidity conditions induced by the RBI amidst holiday curtailed weeks have increased the stress on bond yields. Domestic bond markets would witness negative net supply of longer term assets through the month of September 2013 owing to INR 500 bn of redemptions and lower G-Sec supply as compared to the month of August 2013. Moreover, resumption of Open Market Purchase Operations (OMOs) would further reduce the net supply ensuring further support to long term rates.

Corporate bond yield curve continues to remain inverted as overnight anchors at MSF rate (10.25%)

Corporate bond segment also mirrored the volatility witnessed in the sovereign segment. The yield spreads between short and long term papers remained wider on account of uncertainty on external environment. The onset of quarter end demand from banks was evidenced in higher rates offered in Term deposits and Certificate of Deposits resulting in further inversion of the yield curve. Lack of supply in the longer end of the curve has encouraged buying interest at higher yields from insurance and retirement trusts. Bunching of supply in G-Secs and quasi sovereign (State Development Loans) has further pushed the long term yields despite lack of supply in the near term.

Near-term money market rates eases

Money market rates eased post significant rise witnessed in the month of July 2013. Overnight rates remained anchored at 10.25%. The yield curve was inverted in 1 year segment because of high FMP demand.

Global Economic Scenario

Global economy

There was little in the minutes of the Federal Open Market Committee (FOMC) meeting in July, to alter the view that the committee will taper the pace of purchases at its September meeting. The minutes were largely non-committal, offering little to suggest that the committee was ready to raise expectations further about tapering in September 2013, while also suggesting little to indicate that participants did not think a September 2013 tapering would be appropriate.

Going ForwardWe expect markets to stabilise in the near term as further drop in yields would depend on timing and extent of reduction in overnight rates. Recent RBI measures to ‘support’ the long term yields do provide comfort that benchmark ten year G-Sec yields are unlikely to breach recent highs. We expect the RBI to hold onto higher short term rates in the near term resulting in an inverted yield curve as the removal of the same would be determined by INR stability. Whilst the banks have been severely impacted by the tight liquidity conditions and revised Cash Reserve Ratio (CRR) maintenance measure, the replacement demand from banks is expected to remain relatively lower; especially considering that the banks have been maintaining higher SLR than the mandatory threshold of 23%. Although, escalation in Syrian conflict is probably averted till 9 September 2013, positive demand supply scenario in sovereigns (lesser sovereign auctions + higher maturities + OMOs) on the back of further weakening of growth prospects could temporarily moderate upward movement in yields. September is expected to remain an eventful month as decision on Fed tapering, resultant impact on INR and impact on rising crude prices due to the Syrian conflict would test the pace and extent of the RBI measures to re-stimulate slowing growth prospects. We have opportunistically built duration in many of our funds.Source: Bloomberg, for all data except where mentioned otherwise


5

An Open Ended Diversified Equity SchemeInvestment Objective: Aims to generate long term capital growth from an actively managed portfolio of equity and equity related securities.

Issuer Market Value(` in Lacs)

% to NetAssets

Auto Tata Motors 1,047.38 2.34%Maruti Suzuki India 808.31 1.81%Bajaj Auto 514.36 1.15%Banks ICICI Bank 2,612.19 5.83%HDFC Bank 2,197.80 4.91%Axis Bank 1,665.90 3.72%ING Vysya Bank 648.68 1.45%Punjab National Bank 644.78 1.44%Yes Bank 486.70 1.09%CementShree Cement 1,024.80 2.29%Consumer Non DurablesI T C 3,087.00 6.89%Colgate Palmolive (India) 721.98 1.61%Fertilisers Coromandel International 805.29 1.80%Finance HDFC 2,155.95 4.81%Media & EntertainmentSun TV Network 1,052.73 2.35%Minerals/Mining Sesa Goa 1,226.88 2.74%Coal India 754.20 1.68%Oil Oil & Natural Gas Corporation 1,993.20 4.45%Cairn India 1,603.50 3.58%Petroleum Products Reliance Industries 2,348.09 5.24%Bharat Petroleum Corporation 682.50 1.52%Pharmaceuticals Dr Reddy’s Laboratories 1,834.32 4.10%Lupin 796.20 1.78%Sun Pharmaceutical Industries 781.80 1.75%Services Aditya Birla Nuvo 568.03 1.27%Software HCL Technologies 3,121.35 6.97%Infosys 3,105.85 6.94%Tata Consultancy Services 2,033.20 4.54%Tech Mahindra 1,787.79 3.99%Telecom - Services Bharti Airtel 1,226.31 2.74%Total 96.78%

HSBC Equity Fund (HEF) August 2013

6


% to NetAssets

CBLOs 1,763.98 3.94%Other Equity Investments 409.30 0.91%Net Current Assets -731.48 -1.63%Total Net Assets as on 30 August 2013 44,778.84 100.00%

Asset AllocationAuto 5.29%Banks 18.44%Cement 2.29%Consumer Non Durables 8.51%Fertilisers 1.80%Finance 4.81%Media & Entertainment 2.35%Minerals/Mining 4.42%Oil 8.03%Petroleum Products 6.77%Pharmaceuticals 7.62%Services 1.27%Software 22.44%Telecom - Services 2.74%Other Equity Investments 0.91%Reverse Repos/CBLOs 3.94%Net Current Assets -1.63%Total Net Assets 100.00%

Dividend DeclarationRecord Date / period of

dividend declaredDividend (` per unit)

Non-InstitutionalDividend (` per unit)

InstitutionalNAV (`) per unit(cum dividend)

HSBC Equity Fund - Dividend28-May-10 1.50 1.50 26.691119-Nov-10 2.00 2.00 29.324422-Feb-13 2.50 2.50 26.1962HSBC Equity Fund - Dividend Direct Plan22-Feb-13 2.50 2.50 26.2505

Date of Allotment 10-Dec-02Benchmark S&P BSE 200NAV (Growth) per unit(as on 30.08.13)

` 94.4982

Fund Managers Tushar Pradhan & Neelotpal Sahai

SIP AvailableMinimumApplicationAmount

` 10,000` 1,000 p.m.(SIP)

Exit Load@ NilStatistical Ratios

Standard Deviation 0.90%R-Squared 0.9622Beta (Slope) 0.9184Sharpe Ratio** -0.0344Total Expense Ratio as on August 30, 2013

Regular 2.50% Direct Plan 1.78% Excludes service tax on Investment Management fees of 0.18% of Total Net Assets. Annualised Expense Ratio from 1st April 2013 onwards

Regular 2.47% Direct Plan 1.75% Excludes service tax on Investment Management fees of 0.18% of Total Net Assets. Portfolio Turnover 0.77

Statistical ratios disclosed as per daily returns of the last 3 years/since inception, whichever is later. @ Effective from March 1, 2013 for prospective investments. **Risk free rate: 10 yr Gsec: 8.61% as on August 30, 2013.

HSBC Equity Fund (HEF) August 2013

7

Upon payment of dividend, the NAV per unit falls to the extent of payout and statutory levy, if any. Face value: `10 per unit.

This Product is suitable for investors who are seeking* :l To create wealth over long terml Investment in equity and equity related securitiesl 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: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

An Open Ended Flexi-Cap Equity SchemeInvestment Objective: Seeks long term capital growth through investments across all market capitalisations, including small, mid and large cap stocks. It aims to be predominantly invested in equity & equity related securities. However it could move a significant portion of its assets towards fixed income securities if the fund manager becomes negative on equity markets.


% to NetAssets

Auto Eicher Motors 637.96 3.75%Tata Motors 598.50 3.52%Hero MotoCorp 204.65 1.20%Banks ICICI Bank 945.61 5.56%HDFC Bank 772.20 4.54%Axis Bank 416.48 2.45%Punjab National Bank 279.40 1.64%Yes Bank 182.51 1.07%Cement Madras Cements 216.66 1.27%Construction ProjectsLarsen & Toubro 434.73 2.56%Consumer Non Durables I T C 1,111.32 6.54%Britannia Industries 386.32 2.27%Finance HDFC 754.58 4.44%Industrial ProductsSupreme Industries 504.03 2.96%Minerals/MiningSesa Goa 471.88 2.77%Oil Oil & Natural Gas Corporation 747.45 4.40%Petroleum Products Reliance Industries 1,024.62 6.03%Hindustan Petroleum Corporation 419.38 2.47%Pharmaceuticals Divi's Laboratories 497.13 2.92%Dr Reddy’s Laboratories 458.58 2.70%Glenmark Pharmaceuticals 334.72 1.97%Software Infosys 1,242.34 7.31%HCL Technologies 1,040.45 6.12%Tech Mahindra 825.00 4.85%Eclerx Services 682.43 4.01%Hexaware Technologies 256.20 1.51%Telecom - ServicesBharti Airtel 448.65 2.64%Textile ProductArvind 393.25 2.31%Total 95.78%

HSBC India Opportunities Fund (HIOF) August 2013

8


% to NetAssets

CBLOs 948.94 5.58%Other Equity Investments 164.40 0.97%Net Current Assets -395.12 -2.32%Total Net Assets as on 30 August 2013 17,005.24 100.00%

Asset AllocationAuto 8.47%Banks 15.27%Cement 1.27%Construction Project 2.56%Consumer Non Durables 8.81%Finance 4.44%Industrial Products 2.96%Minerals/Mining 2.77%Oil 4.40%Petroleum Products 8.49%Pharmaceuticals 7.59%Software 23.80%Telecom - Services 2.64%Textile Products 2.31%Other Equity Investments 0.97%Reverse Repos/CBLOs 5.58%Net Current Assets -2.32%Total Net Assets 100.00%





HSBC India Opportunities Fund - Dividend11-Dec-09 1.00 1.00 16.901319-Nov-10 1.00 1.00 18.23134-Feb-13 1.50 1.50 17.7319HSBC India Opportunities Fund - Dividend Direct Plan4-Feb-13 1.50 1.50 17.7519

Date of Allotment 24-Feb-04Benchmark S&P BSE 500NAV (Growth) per unit(as on 30.08.13)

` 33.2551

Fund Manager Tushar Pradhan & Neelotpal Sahai

SIP AvailableMinimumApplication Amount

` 10,000` 1,000 p.m.(SIP)





Statistical ratios disclosed as per daily returns of the last 3 years/since inception, whichever is later. @ Effective from March 1, 2013 for prospective investments.**Risk free rate: 10 yr Gsec: 8.61% as on August 30, 2013.

HSBC India Opportunities Fund (HIOF) August 2013

9


This Product is suitable for investors who are seeking* :l To create wealth over long terml Invests in equity and equity related securities across market capitalisationsl 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: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

An Open Ended Diversified Equity SchemeInvestment Objective: Seeks to generate long term capital growth from an actively managed portfolio of equity and equity related securities primarily being midcap stocks. However, it could move a portion of its assets towards fixed income securities if the fund manager becomes negative on the Indian equity markets.


% to NetAssets

Auto Ancillaries Apollo Tyres 294.61 4.72%Balkrishna Industries 109.64 1.76%Banks The Jammu & Kashmir Bank 223.11 3.58%Dena Bank 176.09 2.82%Allahabad Bank 164.38 2.64%Development Credit Bank 141.11 2.26%State Bank of Bikaner and Jaipur 141.08 2.26%State Bank of Travancore 112.10 1.80%CementEverest Industries 181.33 2.91%HIL 133.83 2.15%Consumer Durables Bata (India) 286.53 4.59%Hitachi Home & Life Solutions (India) 179.12 2.87%Consumer Non DurablesGujarat Ambuja Exports 259.21 4.16%Godfrey Phillips (India) 146.16 2.34%Venky’s (India) 141.34 2.27%Zydus Wellness 103.39 1.66%Industrial Capital GoodsBEML 88.47 1.42%Swelect Energy System 87.10 1.40%Industrial Products Diamond Power Infrastructure 128.79 2.06%Minerals/Mining Gujarat Mineral Development Corporation 169.68 2.72%PesticidesUnited Phosphorous 348.17 5.58%PI Industries 339.61 5.44%Bayer Cropscience 122.81 1.97%PharmaceuticalsAlembic Pharmaceuticals 189.50 3.04%Aurobindo Pharma 143.42 2.30%Unichem Laboratories 138.18 2.22%Biocon 107.25 1.72%PowerJSW Energy 113.34 1.82%Software Tech Mahindra 288.75 4.63%Polaris Financial Technology 176.61 2.83%Persistent Systems 129.21 2.07%Nucleus Software Exports 128.09 2.05%Textile - CottonVardhman Textiles 247.32 3.96%Textile ProductsSiyaram Silk Mills 69.86 1.12%Transportation Adani Ports and Special Economic Zone 125.95 2.02%Gateway Distriparks 105.57 1.69%Total 96.84%

HSBC Midcap Equity Fund (HMEF) August 2013

10


% to NetAssets


Asset AllocationAuto Ancillaries 6.48%Banks 15.36%Cement 5.05%Consumer Durables 7.47%Consumer Non Durables 10.42%Industrial Capital Goods 2.81%Industrial Products 2.06%Minerals/Mining 2.72%Pesticides 13.00%Pharmaceuticals 9.27%Power 1.82%Software 11.59%Textile Products 1.12%Textiles - Cotton 3.96%Transportation 3.71%Other Equity Investments 3.10%Reverse Repos/CBLOs 0.65%Net Current Assets -0.59%Total Net Assets 100.00%





HSBC Midcap Equity Fund - Dividend24-Mar-08 0.75 0.75 13.379711-Dec-09 1.00 1.00 13.892719-Nov-10 2.00 2.00 15.4864

Date of Allotment 19-May-05Benchmark S&P BSE MidcapNAV (Growth) per unit(as on 30.08.13)

` 13.8653

Fund Manager Dhiraj SachdevSIP AvailableMinimumApplicationAmount

` 10,000` 1,000 p.m.(SIP)





Statistical ratios disclosed as per daily returns of the last 3 years/since inception, whichever is later. @ Effective from March 1, 2013 for prospective investments.**Risk free rate: 10 yr Gsec: 8.61% as on August 30, 2013.

HSBC Midcap Equity Fund (HMEF) August 2013

11


Our exposure to midcap stocks in HSBC Midcap Equity Fund (HMEF) is 92.4221%

This Product is suitable for investors who are seeking* :l To create wealth over long terml Invests in predominantly mid cap equity and equity related securitiesl 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: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

An Open Ended Flexi-Theme Equity SchemeInvestment Objective: Seeks to generate long term capital growth from an actively managed portfolio of equity and equity related securities by investing primarily in sectors, areas and themes that play an important role in, and/or benefit from India’s progress, reform process and economic development.


% to NetAssets

Auto Tata Motors DVR 235.62 2.74%Auto Ancillaries Apollo Tyres 621.32 7.22%Banks The Jammu & Kashmir Bank 713.75 8.30%ICICI Bank 401.88 4.67%Dena Bank 317.19 3.69%The Karnataka Bank 253.09 2.94%Indian Bank 168.17 1.96%Allahabad Bank 159.94 1.86%Union Bank of India 132.34 1.54%United Bank of India 93.24 1.08%CementEverest Industries 269.30 3.13%HIL 131.45 1.53%JK Cement 108.43 1.26%ConstructionIRB Infrastructure Developers 156.25 1.82%National Buildings Construction Corporation 102.60 1.19%Construction ProjectsGammon Infrastructure Projects 100.97 1.17%Consumer Non DurablesGujarat Ambuja Exports 160.80 1.87%Finance Rural Electrification Corporation 405.24 4.71%GasGujarat State Petronet 99.50 1.16%Industrial Capital GoodsBEML 96.06 1.12%Industrial Products FAG Bearings India 375.31 4.36%Diamond Power Infrastructure 156.78 1.82%Polyplex Corporation 88.82 1.03%Minerals/MiningGujarat Mineral Development Corporation 220.50 2.56%Petroleum Products Hindustan Petroleum Corporation 362.34 4.21%Indian Oil Corporation 140.72 1.64%Power JSW Energy 373.94 4.35%Reliance Infrastructure 299.51 3.48%Power Grid Corporation of India 136.71 1.59%ServicesAditya Birla Nuvo 482.82 5.61%Textile - Cotton Vardhman Textiles 308.40 3.59%Textile - Synthetic Bombay Dyeing & Manufacturing Company 148.14 1.72%TransportationGateway Distriparks 431.47 5.02%Adani Ports And Special Economic Zone 157.44 1.83%Total 97.79%

HSBC Progressive Themes Fund (HPTF) August 2013

12


% to NetAssets


Asset AllocationAuto 2.74%Auto Ancillaries 7.22%Banks 26.04%Cement 5.92%Construction 3.01%Construction Project 1.17%Consumer Non Durables 1.87%Finance 4.71%Gas 1.16%Industrial Capital Goods 1.12%Industrial Products 7.22%Minerals/Mining 2.56%Petroleum Products 5.85%Power 9.42%Services 5.61%Textiles - Cotton 3.59%Textiles - Synthetic 1.72%Transportation 6.85%Other Equity Investments 2.06%Reverse Repos/CBLOs 1.55%Net Current Assets -1.39%Total Net Assets 100.00%





HSBC Progressive Themes Dividend11-May-07 1.00 1.00 12.239026-May-08 1.00 1.00 13.7160

Date of Allotment 23-Feb-06Benchmark S&P BSE 200NAV (Growth) per unit(as on 30.08.13)

` 7.4759


` 10,000` 1,000 p.m.(SIP)






HSBC Progressive Themes Fund (HPTF) August 2013

13


This Product is suitable for investors who are seeking* :l To create wealth over long terml Invests in equity and equity related securities, primarily in themes that play an important role in India’s economic developmentl 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: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

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 & equity related instruments of companies across various sectors and industries, with no capitalisation bias. The Fund may also invest in fixed income securities.


% to NetAssets

Auto Maruti Suzuki India 487.88 3.23%Auto Ancillaries Amara Raja Batteries 554.30 3.67%MRF 425.24 2.82%Motherson Sumi Systems 333.93 2.21%Banks HDFC Bank 672.71 4.46%ICICI Bank 598.79 3.97%Karur Vysya Bank 317.16 2.10%State Bank of India 258.22 1.71%ING Vysya Bank 247.04 1.64%Yes Bank 238.48 1.58%Federal Bank 231.59 1.54%Cement Shree Cements 933.25 6.19%Madras Cements 267.62 1.77%Consumer DurablesHavells India 340.13 2.25%Consumer Non DurablesI T C 1,054.20 6.99%McLeod Russel India 474.03 3.14%Nestle India 284.01 1.88%Jyothy Laboratories 193.01 1.28%Fertilisers Coromandel International 338.53 2.24%Finance HDFC 750.99 4.98%LIC Housing Finance 375.64 2.49%GasPetronet LNG 299.86 1.99%Industrial Capital GoodsCrompton Greaves 330.08 2.19%Industrial ProductsSupreme Industries 535.53 3.55%OilOil & Natural Gas Corporation 336.35 2.23%Pharmaceuticals Ipca Laboratories 408.39 2.71%Divi's Laboratories 376.45 2.50%Lupin 314.50 2.08%Wockhardt 194.82 1.29%Software Tata Consultancy Services 774.65 5.14%Tech Mahindra 566.50 3.76%HCL Technologies 541.03 3.59%Infosys 310.59 2.06%Telecom - Services Bharti Airtel 378.06 2.51%Total 97.73%

HSBC Tax Saver Equity Fund (HTSF) August 2013

14

Date of Allotment 05-Jan-07Benchmark S&P BSE 200NAV (Growth) per unit(as on 30.08.13)

` 14.088

Fund Manager Aditya KhemaniSIP AvailableMinimumApplicationAmount

` 500(Lumpsum & SIP)



Regular 2.63% Direct Plan 1.92% Excludes service tax on Investment Management fees of 0.19% of Total Net Assets.Annualised Expense Ratio from 1st April 2013 onwards




% to NetAssets


Asset AllocationAuto 3.23%Auto Ancillaries 8.71%Banks 17.00%Cement 7.96%Consumer Durables 2.25%Consumer Non Durables 13.29%Fertilisers 2.24%Finance 7.47%Gas 1.99%Industrial Capital Goods 2.19%Industrial Products 3.55%Oil 2.23%Pharmaceuticals 8.58%Software 14.54%Telecom - Services 2.51%Other Equity Investments 1.78%Reverse Repos/CBLOs 0.89%Net Current Assets -0.41%Total Net Assets 100.00%





HSBC Tax Saver Equity Dividend19-Feb-10 1.00 1.00 12.8713

HSBC Tax Saver Equity Fund (HTSF) August 2013

15


This Product is suitable for investors who are seeking* :l To create wealth over long terml Invests in equity and equity related securities with no market capitilastion biasl 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: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

An Open Ended Equity SchemeInvestment Objective: To provide long-term capital growth from a diversified portfolio of equity and equity related instruments. The focus would be to invest in stocks of companies facing “out-of-ordinary” conditions.


% to NetAssets

Auto Bajaj Auto 113.89 2.69%Maruti Suzuki India 80.83 1.91%Auto Ancillaries Amara Raja Batteries 102.82 2.43%Motherson Sumi System 80.23 1.89%Bosch 59.82 1.41%Banks ICICI Bank 213.80 5.05%HDFC Bank 192.46 4.54%Bank of Baroda 124.42 2.94%Karur Vysya Bank 101.98 2.41%The Jammu & Kashmir Bank 63.29 1.49%Federal Bank 56.35 1.33%CementGrasim Industries 103.06 2.43%Shree Cements 89.90 2.12%Madras Cements 45.66 1.08%Construction ProjectsLarsen & Toubro 105.97 2.50%Consumer Non DurablesI T C 317.96 7.50%McLeod Russel India 89.60 2.11%FertilisersCoromandel International 73.32 1.73%FinanceHDFC 160.12 3.78%IDFC 104.65 2.47%LIC Housing Finance 49.77 1.17%Industrial Products Supreme Industries 96.71 2.28%Minerals/MiningNMDC 71.40 1.69%Non - Ferrous Metals Hindustan Zinc 65.71 1.55%Oil Oil & Natural Gas Corporation 155.72 3.68%Petroleum Products Reliance Industries 133.20 3.14%Pharmaceuticals Divi's Laboratories 132.24 3.12%Lupin 117.04 2.76%Torrent Pharmaceuticals 104.35 2.46%Software Infosys 217.41 5.13%Tata Consultancy Services 194.17 4.58%HCL Technologies 193.52 4.57%Mindtree 74.99 1.77%Tech Mahindra 70.81 1.67%Telecom - Services Bharti Airtel 92.72 2.19%Total 95.58%

HSBC Unique Opportunities Fund (HUOF) August 2013

16


% to NetAssets


Asset AllocationAuto 4.60%Auto Ancillaries 5.73%Banks 17.75%Cement 5.63%Construction Projects 2.50%Consumer Non Durables 9.62%Fertilisers 1.73%Finance 7.42%Industrial Products 2.28%Minerals/Mining 1.69%Non - Ferrous Metals 1.55%Oil 3.68%Petroleum Products 3.14%Pharmaceuticals 8.35%Software 17.72%Telecom - Services 2.19%Other Equity Investments 1.43%Reverse Repos/CBLOs 4.25%Net Current Assets -1.27%Total Net Assets 100.00%

Date of Allotment 21-Mar-07Benchmark S&P BSE 200NAV (Growth) per unit(as on 30.08.13)

` 9.6478

Fund Manager Gaurav Mehrotra & Amaresh Mishra


` 10,000` 1,000 p.m.(SIP)


Standard Deviation 0.90%R-Squared,m 0.9352Beta (Slope) 0.9042Sharpe Ratio** -0.0464Total Expense Ratio as on August 30, 2013

Regular 2.70% Direct Plan 2.00% Excludes service tax on Investment Management fees of 0.20% of Total Net Assets.Annualised Expense Ratio from 1st April 2013 onwards

Regular 2.70% Direct Plan 2.00% Excludes service tax on Investment Management fees of 0.21% of Total Net Assets.Portfolio Turnover 0.78


HSBC Unique Opportunities Fund (HUOF) August 2013

17

This Product is suitable for investors who are seeking* :l To create wealth over long terml Invests in equity and equity related securities of companies facing “out-of-ordinary” conditionsl 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: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

An Open Ended SchemeInvestment Objective: To provide long term capital appreciation by allocating funds in equity and equity related instruments. It also has the flexibility to move, entirely if required, into debt instruments in times that the view on equity markets seems negative.


% to NetAssets

AutoTata Motors 239.40 2.35%

Hero Motocorp 204.65 2.01%

Mahindra & Mahindra 156.65 1.53%

Bajaj Auto 110.22 1.08%

Banks ICICI Bank 562.63 5.51%

HDFC Bank 475.20 4.66%

Axis Bank 124.94 1.22%

CementGrasim Industries 203.41 1.99%

Construction ProjectsLarsen & Toubro 253.59 2.48%

Consumer Non DurablesI T C 710.01 6.96%

Hindustan Unilever 290.47 2.85%

Ferrous Metals Tata Steel 109.60 1.07%

Finance HDFC 474.31 4.65%

Minerals/Mining NMDC 178.50 1.75%

Oil Oil & Natural Gas Corporation 199.32 1.95%

Petroleum Products Reliance Industries 640.39 6.27%

Pharmaceuticals Dr Reddy’s Laboratories 321.01 3.15%

Sun Pharmaceutical Industries 182.42 1.79%

PowerPower Grid Corporation of India 219.71 2.15%

Services Aditya Birla Nuvo 170.41 1.67%

Software Infosys 621.17 6.09%

HCL Technologies 520.23 5.10%

Tata Consultancy Services 406.64 3.98%

Telecom - Services Bharti Airtel 149.55 1.47%

Total 73.72%

HSBC Dynamic Fund (HDF) August 2013

18


% to NetAssets

CBLOs 1,873.23 18.35%Other Equity Investments 565.14 5.54%Net Current Assets 243.64 2.39%Total Net Assets as on 30 August 2013 10,206.42 100.00%

Asset AllocationAuto 6.97%Banks 11.39%Cement 1.99%Construction Projects 2.48%Consumer Non Durables 9.80%Ferrous Metals 1.07%Finance 4.65%Minerals/Mining 1.75%Oil 1.95%Petroleum Products 6.27%Pharmaceuticals 4.93%Power 2.15%Services 1.67%Software 15.17%Telecom - Services 1.47%Other Equity Investments 5.54%Reverse Repos/CBLOs 18.35%Net Current Assets 2.39%Total Net Assets 100.00%

Date of Allotment 24-Sep-07Benchmark S&P BSE 200NAV (Growth) per unit(as on 30.08.13)

` 9.4317

Fund Manager Tushar Pradhan & Neelotpal Sahai(for Equity portion)Sanjay Shah (for Fixed Income portion)


` 10,000` 1,000 p.m.(SIP)






HSBC Dynamic Fund (HDF) August 2013

19

This Product is suitable for investors who are seeking* :l To create wealth over long terml Invests in equity and equity related securities and in debt instruments when view on equity markets is negativel 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: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

Date of Allotment 17-Mar-08Benchmark MSCI Emerging

Markets IndexNAV (Growth) per unit(as on 30.08.13)

` 11.4064

Fund Manager Piyush Harlalka (Dedicated fund manager for overseas investments)


` 10,000` 1,000 p.m.(SIP)


Standard Deviation 1.54%R-Squared 0.265Beta (Slope) 1.111Sharpe Ratio** 0.017Total Expense Ratio as on August 30, 2013

Regular 1.86% 2.71% (inclusive of underlying scheme’s expenses) Direct Plan 1.15% Excludes service tax on Investment Management fees of 0.11% of Total Net Assets.Annualised Expense Ratio from 1st April 2013 onwards

Regular 1.86% 2.71% (inclusive of underlying scheme’s expenses) Direct Plan 1.15% Excludes service tax on Investment Management fees of 0.11% of Total Net Assets. Portfolio Turnover 1.12


Asset AllocationOverseas Mutual Fund 96.81%Reverse Repos/CBLOs 4.08%Net Current Assets -0.89%Total Net Assets 100.00%


% to NetAssets

Overseas Mutual FundHSBC GIF Glob Emerg Mkts Eq S1 Dis 1,799.55 96.81%CBLOs 75.79 4.08%Net Current Assets -16.51 -0.89%Total Net Assets as on 30 August 2013 1,858.83 100.00%

An Open Ended SchemeInvestment Objective: To provide long term capital appreciation by investing in India and in the emerging markets, in equity and equity related instruments, share classes and units/securities issued by overseas mutual funds or unit trusts. The fund may also invest a limited proportion in domestic debt and money market instruments.

HSBC Emerging Markets Fund (HEMF) August 2013

20

This Product is suitable for investors who are seeking* :l To create wealth over long terml Investment in equity and equity related securities of Emerging economiesl High risk (Brown)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.


An Open Ended Equity SchemeInvestment Objective: To provide long term capital appreciation primarily from a diversified portfolio of equity and equity related instruments of small cap companies.


% to NetAssets

Auto Ancillaries Pricol 73.43 6.73%Majestic Auto 22.34 2.05%Balkrishna Industries 15.50 1.42%Banks State Bank of Travancore 59.86 5.49%State Bank of Bikaner and Jaipur 51.21 4.69%The Karnataka Bank 32.49 2.98%Dena Bank 16.63 1.52%Cement Orient Cement 70.78 6.49%Orient Paper & Industries 12.85 1.18%Chemicals India Glycols 36.11 3.31%Consumer Durables IFB Industries 40.08 3.67%Hitachi Home & Life Solutions (India) 36.37 3.33%Greenply Industries 18.45 1.69%Consumer Non DurablesGujarat Ambuja Exports 69.82 6.40%KRBL 48.95 4.49%Globus Spirits 45.21 4.14%Lakshmi Energy and Foods 23.50 2.15%FinanceRane Holdings 78.45 7.19%Industrial Capital GoodsSanghvi Movers 22.51 2.06%Indo Tech Transformers 21.04 1.93%TIL 20.29 1.86%Industrial Products Ador Welding 15.28 1.40%PesticidesPI Industries 18.37 1.68%Software Nucleus Software Exports 113.11 10.37%Textile - Products SRF 18.96 1.74%Textile - Cotton RSWM 86.97 7.97%Total 97.96%

HSBC Small Cap Fund (HSCF) August 2013

21


% to NetAssets


Asset AllocationAuto Ancillaries 10.20%Banks 14.68%Cement 7.67%Chemicals 3.31%Consumer Durables 8.70%Consumer Non Durables 17.19%Finance 7.19%Industrial Capital Goods 5.85%Industrial Products 1.40%Pesticides 1.68%Software 10.37%Textile - Products 1.74%Textile - Cotton 7.97%Other Equity Investments 1.45%Reverse Repos/CBLOs 7.07%Net Current Assets -6.48%Total Net Assets 100.00%





HSBC Small Cap Fund - Dividend19-Nov-10 1.00 1.00 14.3053

Date of Allotment 24-Mar-08

Benchmark S&P BSE Small Cap Index

NAV (Growth) per unit(as on 30.08.13)

` 7.4716


` 10,000` 1,000 p.m.(SIP)





Statistical ratios disclosed as per returns of the last 3 years/since inception, whichever is later.@ Effective from March 1, 2013 for prospective investments.**Risk free rate: 10 yr Gsec: 8.61% as on August 30, 2013.

HSBC Small Cap Fund (HSCF) August 2013

22


Our exposure to small cap stocks in HSBC Small Cap Fund (HSCF) is 99.4078%

This Product is suitable for investors who are seeking* :l To create wealth over long terml Invests in predominantly small cap equity and equity related securitiesl High risk (Brown)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.


Date of Allotment 06-May-11Benchmark MSCI Brazil

10/40 IndexNAV (Growth) per unit(as on 30.08.13)

` 9.03

Fund Manager Piyush Harlalka (Dedicated fund manager for overseas investments)


` 10,000` 1,000 p.m.(SIP)



Regular 1.86% 2.71% (inclusive of underlying scheme’s expenses) Direct Plan 1.15% Excludes service tax on Investment Management fees of 0.11% of Total Net Assets.Annualised Expense Ratio from 1st April 2013 onwards

Regular 1.86% 2.71% (inclusive of underlying scheme’s expenses) Direct Plan 1.15% Excludes service tax on Investment Management fees of 0.11% of Total Net Assets. Portfolio Turnover 0.59


Asset AllocationOverseas Mutual Fund 99.64%Reverse Repos/CBLOs 1.70%Net Current Assets -1.34%Total Net Assets 100.00%


% to NetAssets

Overseas Mutual FundHSBC GIF BRAZIL EQUITY S3D 14,208.28 99.64%CBLOs 242.85 1.70%

Net Current Assets -191.05 -1.34%

Total Net Assets as on 30 August 2013 14,260.08 100.00%

An Open-Ended Fund of Funds SchemeInvestment Objective: The primary investment objective of the Scheme is to provide long term capital appreciation by investing predominantly in units/shares of HSBC Global Investment Funds (HGIF) Brazil Equity Fund. The Scheme may, at the discretion of the Investment Manager, also invest in the units of other similar overseas mutual fund schemes, which may constitute a significant part of its corpus. The Scheme may also invest a certain proportion of its corpus in money market instruments and/or units of liquid mutual fund schemes, in order to meet liquidity requirements from time to time.

HSBC Brazil Fund (HBF) August 2013

23

This Product is suitable for investors who are seeking* :l To create wealth over long terml Invests in equity and equity related securities through feeder route in Brazilian marketsl 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: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

Name of Scheme Fund Manager

HSBC Equity Fund Tushar Pradhan (from 29 September 2011) & Neelotpal Sahai (from 27 May 2013)

HSBC India Opportunities Fund Tushar Pradhan (from 29 September 2011) & Neelotpal Sahai (from 27 May 2013)

HSBC Midcap Equity Fund Dhiraj Sachdev (from 01 December 2009)

HSBC Progressive Themes Fund Dhiraj Sachdev (from 01 December 2009)

HSBC Tax Saver Equity Fund Aditya Khemani (from 24 February 2009)

HSBC Unique Opportunities Fund Gaurav Mehrotra and Amaresh Mishra (from 02 July 2012)

HSBC Dynamic Fund For Equity portion: Tushar Pradhan (from 29 September 2011) & Neelotpal Sahai (from 27 May 2013) & For Debt portion: Sanjay Shah (from 14 August 2009)

HSBC Emerging Markets Fund Piyush Harlalka (from 02 July 2012)

HSBC Small Cap Fund Dhiraj Sachdev (from 01 December 2009)

HSBC Brazil Fund Piyush Harlalka (from 02 July 2012)

Fund Manager’s Experience

Tushar Pradhan Chief Investment Officer and Fund ManagerMBA (USA), B. Com.Experience: Over 17 years of experience in Fund Management l HSBC Asset Management (India) Private Ltd Chief Investment Officer since June 2009 onwards l AIG Global Asset Management Company (India) Private Ltd Chief Investment Officer – Equities from December 2006 to June 2009 l HDFC Asset Management Company Private Ltd Senior Fund Manager from July 2000 to Dec. 2006 l HDFC Ltd Manager – Treasury from April 1995 to June 2000

Dhiraj Sachdev Senior Vice President and Fund Manager - EquitiesB.Com., ACA, Grad CWA, Diploma in Foreign Trade Management (DFTM)Experience:Over 17 years experience in Equity Research and Fund Management. l HSBC Asset Management (India) Private Ltd Senior Vice President & Fund Manager, from October 2011 to present, Senior Fund Manager from 1 December 2009 to September 2011, Head of Equity-Portfolio Management Services from October 2005 to November 2009 l ASK Raymond James Securities India Private Ltd Portfolio Manager from October 2003 to September 2005 l HDFC Bank Ltd Senior Manager Equities from November 1999 to September 2003 l DSQ Software Ltd Business Analyst from June 1999 to November 1999 Probity Research & Services Ltd (India Infoline Ltd) Research Analyst from November 1998 to May 1999 Ford Brothers Capital Services (P) Ltd Manager Research from July 1996 to Sept 1998

Fund Managers - Equity August 2013

24

l

l

Neelotpal Sahai Senior Fund Manager - EquitiesB.Tech, PGDM (IIM Kolkata) Experience:Over 18 years of experience in Research and Fund Management. l HSBC Asset Management (India) Private Ltd Senior Fund Manager – Equities from April 2013 onwards. l IDFC Asset Management Company Ltd. Director from February 2006 to April 2013 l Motilal Oswal Securities Ltd Senior Research Analyst from March 2005 to January 2006 l Infosys Ltd Senior Project Manager from June 1999 to March 2005 l Vickers Ballas Securities Ltd Analyst from September 1998 to June 1999 l SBC Warburg Analyst from May 1997 to May 1998 l UTI Securities Ltd Equity Analyst from June 1995 to May 1997 Gaurav MehrotraVice President & Assistant Fund ManagerPost Graduate Diploma in Business Management, Bachelor of EngineeringExperience: Over 8 years experience in research. HSBC Asset Management (India) Private Ltd Vice President & Assistant Fund Manager, from April 2012 to present, Associate Vice President, Investment Management from September 2007 to March 2012 JPMorgan Services India Private Ltd Equity Research from August 2005 to September 2007 Tata Consultancy Services Ltd Business Analyst from June 2004 to July 2005 Aditya KhemaniVice President & Fund Manager - EquitiesB.Com. (Hons.), Post Graduate Diploma in Business ManagementExperience: Over 8 years experience in research. l HSBC Asset Management (India) Private Ltd Vice President & Fund Manager (Equity), from April 2012 to present, Assistant Fund Manager, Equities from February 2009 to March 2012; Associate Vice President - Investment Management from October 2007 to February 2009. l SBI Funds Management India Private Ltd Senior Manager - Equity Research from March 2007 to September 2007 l Prudential ICICI Asset Management Company India Private Ltd Assistant Manager - Equity Research from December 2005 to February 2007 l Morgan Stanley Advantage Services India Private Ltd Research Associate from May 2005 to November 2005Amaresh Mishra Vice President & Assistant Fund ManagerPost Graduate Diploma in Business Manager Management Bachelor of Engineering (Chemical) Experience: Over 8 years of experience in Equities & Sales l HSBC Asset Management (India) Private Ltd Vice President & Assistant Fund Manager, from April 2012 to present, Associate Vice President, Investment Management from April 2008 to March 2012, Associate Vice President, Equities from October 2007 to March 2008; Associate Vice President, Sales and Distribution from March 2005 to September 2007 l Centre for Science and Environment Trainee Researcher from July 2001 to July 2002Piyush Harlalka Vice President - Fixed Income M.B.A, (Finance), C.A., C.S. Experience:Over 7 years of experience in Research l HSBC Asset Management (India) Private Ltd

Vice President - Fixed Income from April 2012 to present; Associate Vice President - Fixed Income, from October 2010 to March 2012; Assistant Vice President, Investment Management, PMS, from December 2008 to October 2010; Research Analyst, from, July 2007 to November 2008. l Batlivala & Karanai Securities Pvt. Ltd., Research Analyst from April 2006 to June 2007

Fund Managers - Equity August 2013

25

l

l

l

Funds Managed by Tushar Pradhan & Neelotpal Sahai.

Comparative Performance of Equity Schemes August 2013

HSBC Equity Fund Date of Inception : 10 Dec 02Scheme Name & Benchmarks July 12 -

June 13July 11 - June 12

July 10 - June 11

Since Inception

HSBC Equity Fund - Growth 6.20% -7.72% 6.74% 24.52%S&P BSE 200 (Scheme Benchmark) 8.52% -7.63% 3.82% 18.57%CNX Nifty (Standard Benchmark) 10.70% -6.19% 7.54% 17.51%`10,000, if invested in HEF, would have become `10,620 `9,228 `10,674 `1,01,436

`10,000, if invested in S&P BSE 200, would have become `10,852 `9,237 `10,382 `60,442

`10,000, if invested in CNX Nifty, would have become `11,070 `9,381 `10,754 `54,993

HSBC India Opportunities Fund Date of Inception : 24 Feb 04Scheme Name & Benchmarks July 12 -


July 10 - June 11

Since Inception

HSBC India Opportunities Fund - Growth 3.10% -2.19% 8.56% 14.55%S&P BSE 500 (Scheme Benchmark) 6.98% -8.08% 3.22% 13.16%CNX Nifty (Standard Benchmark) 10.70% -6.19% 7.54% 13.28%`10,000, if invested in HIOF, would have become `10,310 `9,781 `10,856 `35,650



26

Data for the period July to June has been considered in all cases, except for ‘Since Inception’ returns. ‘Since Inception’ (%) returns are compounded annualised, other % returns are absolute. ‘Since inception’ returns are calculated on `10 invested at inception. Standard benchmark is prescribed by SEBI for long-term equity schemes and is used for comparison purposes. Returns on `10,000 are point-to-point returns for the specific time period, invested at the start of the period. The returns provided above have been rounded off and hence there may be minor differences between point-to-point returns vis-a-vis returns indicated above.

Past performance may or may not be sustained in the future. Refer note below.



HSBC Dynamic Fund Date of Inception : 24 Sep 07Scheme Name & Benchmarks July 12 -


July 10 - June 11

Since Inception

HSBC Dynamic Fund - Growth 2.87% -5.69% 5.98% -0.06%S&P BSE 200 (Scheme Benchmark) 8.52% -7.63% 3.82% 2.02%CNX Nifty (Standard Benchmark) 10.70% -6.19% 7.54% 2.98%`10,000, if invested in HDF, would have become `10,287 `9,431 `10,598 `9,966



Fund Managed by Tushar Pradhan & Neelotpal Sahai (for Equity portion)Sanjay Shah (for Fixed Income portion)


27


HSBC Brazil Fund Date Of Inception : 06 May 11Scheme Name & Benchmarks July 12 -


Since Inception

HSBC Brazil Fund - Growth -6.06% -10.27% -7.23%MSCI Brazil 10/40 Index (Scheme Benchmark) -14.18% -28.11% -18.96%CNX Nifty (Standard Benchmark) 10.70% -6.19% 2.41%`10,000, if invested in HBF, would have become `9,394 `8,973 `8,505

`10,000, if invested in MSCI Brazil 10/40 Index, would have become `8,582 `7,189 `6,355

`10,000, if invested in CNX Nifty, would have become `11,070 `9,381 `10,526


HSBC Emerging Markets Fund Date of Inception : 17 Mar 08Scheme Name & Benchmarks July 12 -


July 10 - June 11

Since Inception

HSBC Emerging Markets Fund - Growth 3.36% -5.63% 20.44% 0.07%MSCI Emerging Market Index (Scheme Benchmark) 3.28% -9.74% 14.89% 0.15%

CNX Nifty (Standard Benchmark) 10.70% -6.19% 7.54% 5.05%`10,000, if invested in HMEF, would have become `10,336 `9,437 `12,044 `10,038

`10,000, if invested in MSCI Emerging Market Index, would have become `10,328 `9,026 `11,489 `10,078



Funds Managed by - Piyush Harlalka.

HSBC Unique Opportunities Fund Date of Inception : 21 Mar 07Scheme Name & Benchmarks July 12 -


July 10 - June 11

Since Inception

HSBC Unique Opportunities Fund - Growth 3.00% -4.03% 3.99% 0.94%S&P BSE 200 (Scheme Benchmark) 8.52% -7.63% 3.82% 6.78%CNX Nifty (Standard Benchmark) 10.70% -6.19% 7.54% 7.25%`10,000, if invested in HUOF, would have become `10,300 `9,597 `10,399 `10,608




Fund Managed by Gaurav Mehrotra and Amaresh Mishra.

HSBC Tax Saver Equity Fund Date of Inception : 05 Jan 07Scheme Name & Benchmarks July 12 -


July 10 - June 11

Since Inception

HSBC Tax Saver Equity Fund - Growth 12.40% -1.04% 2.69% 7.52%S&P BSE 200 (Scheme Benchmark) 8.52% -7.63% 3.82% 5.29%CNX Nifty (Standard Benchmark) 10.70% -6.19% 7.54% 6.09%`10,000, if invested in HTSF, would have become `11,240 `9,896 `10,269 `16,012




Fund Managed by - Aditya Khemani.


28


HSBC Small Cap Fund Date of Inception : 24 Mar 08Scheme Name & Benchmarks July 12 -


July 10 - June 11

Since Inception

HSBC Small Cap Fund - Growth -2.78% -17.58% -11.27% -2.57%S&P BSE Small Cap (Scheme Benchmark) -14.81% -20.44% -10.18% -3.88%CNX Nifty (Standard Benchmark) 10.70% -6.19% 7.54% 4.60%`10,000, if invested in HSCF, would have become `9,722 `8,242 `8,873 `8,719

`10,000, if invested in S&P BSE Smallcap, would have become `8,519 `7,956 `8,982 `8,117



HSBC Progressive Themes Fund Date of Inception : 23 Feb 06Scheme Name & Benchmarks July 12 -


July 10 - June 11

Since Inception

HSBC Progressive Themes Fund - Growth -13.86% -8.34% -14.02% -1.13%S&P BSE 200 (Scheme Benchmark) 8.52% -7.63% 3.82% 8.46%CNX Nifty (Standard Benchmark) 10.70% -6.19% 7.54% 9.19%`10,000, if invested in HPTF, would have become `8,614 `9,166 `8,598 `9,201




Funds Managed by - Dhiraj Sachdev.

HSBC Midcap Equity Fund Date of Inception : 19 May 05Scheme Name & Benchmarks July 12 -


July 10 - June 11

Since Inception

HSBC Midcap Equity Fund - Growth -15.11% -8.10% -13.70% 5.51%S&P BSE Midcap (Scheme Benchmark) -3.97% -10.84% -3.75% 7.78%CNX Nifty (Standard Benchmark) 10.70% -6.19% 7.54% 14.19%`10,000, if invested in HMEF, would have become `8,489 `9,190 `8,630 `15,461

`10,000, if invested in S&P BSE Midcap, would have become `9,603 `8,916 `9,625 `18,380



An Open Ended Fund with Regular & Savings Plans.Monthly income is not assured and is subject to availability of distributable surplus.Investment Objective: Seeks to generate reasonable returns through investments in Debt and Money Market Instruments. The secondary objective of the scheme is to invest in equity and equity related instruments to seek capital appreciation.

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Corporate/PSU DebtCorporate Bonds / DebenturesBajaj Finance 1,468.21 5.55% [ICRA]AA+HDFC 1,146.44 4.33% CRISIL AAARural Electrification Corporation 1,141.13 4.31% CARE AAAPower Finance Corporation 958.55 3.62% CRISIL AAAPower Finance Corporation 813.32 3.08% CRISIL AAANABARD 780.90 2.95% CRISIL AAAHDFC 490.91 1.86% CRISIL AAAPower Finance Corporation 484.73 1.83% CRISIL AAALIC Housing Finance 474.21 1.79% CRISIL AAAPower Finance Corporation 423.58 1.60% CRISIL AAAShriram Transport Finance Company 299.81 1.13% CRISIL AANational Housing Bank 284.29 1.07% CRISIL AAANABARD 194.07 0.73% CRISIL AAARural Electrification Corporation 88.86 0.34% CRISIL AAAEquitiesListed EquityShree Cements 557.28 2.11%ITC 455.33 1.72%Amara Raja Batteries 397.74 1.50%HDFC 344.95 1.30%Tata Consultancy Services 333.95 1.26%HDFC Bank 325.68 1.23%ICICI Bank 323.51 1.22%Maruti Suzuki India 319.59 1.21%MRF 232.09 0.88%IPCA Laboratories 216.98 0.82%Mcleod Russel India 206.56 0.78%Grasim Industries 203.41 0.77%Havells India 198.79 0.75%Tech Mahindra 192.50 0.73%Motherson Sumi Systems 181.33 0.69%Supreme Industries 174.07 0.66% N.AHindustan Zinc 170.78 0.65%NMDC 165.41 0.63%Petronet LNG 163.79 0.62%Divi's Laboratories 159.20 0.60%Nestle India 151.80 0.57%LIC Housing Finance 144.33 0.55%Karur Vysya Bank 143.40 0.54%Oil & Natural Gas Corporation 137.03 0.52%Coromandel International 136.61 0.52%Bharti Airtel 134.00 0.51%Crompton Greaves 129.76 0.49%Orient Cement 94.19 0.36%Punjab National Bank 68.35 0.26%Sanghvi Movers 55.47 0.21%The Federal Bank 31.79 0.12%Hindustan Dorr-Oliver 19.80 0.07%Orient Paper & Industries 17.10 0.06%Government Securities7.16% GOVT OF INDIA RED 20-05-2023 4,251.49 16.07% Sovereign8.07% GOVT OF INDIA RED 03-07-2017 1,304.19 4.93% Sovereign8.12% GOVT OF INDIA RED 10-12-2020 1,154.12 4.36% Sovereign8.30% GOVT OF INDIA RED 31-12-2042 810.68 3.07% Sovereign7.28% GOVT OF INDIA RED 03-06-2019 384.72 1.45% Sovereign9.71% ANDHRA PRADESH SDL RED 14-08-2023 360.51 1.36% Sovereign

9.65% KARNATAKA SDL RED 14-08-2023 355.04 1.34% Sovereign

HSBC MIP - Savings Plan (HMIP-S) August 2013

29

Date of Allotment 24-Feb-04Benchmark CRISIL MIP

Blended IndexNAV (Growth) per unit(as on 30.08.13)

` 21.8563

Average Maturity of Portfolio

82.94 months

Modified Durationof Portfolio

51.52 months

Fund Manager Aditya Khemani(for Equity portion)Sanjay Shah &Ruchir Parekh(for Debt portion)

SIP AvailableMinimum Application AmountGrowth `10,000Quarterly Dividend `10,000Monthly Dividend `25,000SIP `1,000 p.m.Exit Load@ NilTotal Expense Ratio as on August 30, 2013


Regular 2.31% Direct Plan 1.78% Excludes service tax on Investment Management fees of 0.18% of Total Net Assets. @ Effective from March 1, 2013 for prospective investments.

Asset AllocationGovernment Securities 36.01%Corporate/ PSU Debt 35.28%Equity 24.90%Cash Equivalents 1.44%Net Current Assets 2.36%Total Net Assets 100.00%

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

8.20% GOVT OF INDIA RED 24-09-2025 329.28 1.25% Sovereign8.10% TAMILNADU SDL RED 08-05-2023 308.51 1.17% Sovereign7.40% GOVT OF INDIA RED 09-09-2035 265.60 1.00% SovereignZero Coupon BondsHDFC 282.60 1.07% CRISIL AAATotal 96.20%Cash EquivalentsCBLOs 380.83 1.44%Net Current Assets 625.34 2.36%Total Net Assets as on 30 August 2013 26,448.49 100.00%

Rating ProfileAAA 28.60%AA+/ AA-/ AA 6.68%Sovereign 36.01%Equity 24.90%Reverse Repo/CBLOs 1.44%Net Current Assets 2.36%Total Net Assets 100.00%

HSBC MIP - Savings Plan (HMIP-S) August 2013

30





HSBC MIP - Savings Plan - Monthly Dividend28-Jun-13 0.05065 0.04851 12.279726-Jul-13 0.05065 0.04851 11.943030-Aug-13 0.05065 0.04851 11.5601HSBC MIP - Savings Plan - Monthly Dividend - Direct Plan31-May-13 0.05065 0.04851 12.597628-Jun-13 0.05065 0.04851 12.327626-Jul-13 0.05065 0.04851 11.9947HSBC MIP - Savings Plan - Quarterly Dividend14-Dec-12 0.17618 0.15101 12.435515-Mar-13 0.17618 0.15101 12.380314-Jun-13 0.17144 0.16419 12.4732HSBC MIP - Savings Plan - Quarterly Dividend - Direct Plan14-Jun-13 0.17144 0.16419 12.6154


This Product is suitable for investors who are seeking* :l Regular Income over medium terml Investment in fixed income (debt and money market instruments) as well as equity and equity related securitiesl Medium risk (Yellow)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

An Open Ended Fund with Regular & Savings Plans. Monthly income is not assured and is subject to availability of distributable surplus.Investment Objective: Seeks to generate reasonable returns through investments in Debt and Money Market Instruments. The secondary objective of the scheme is to invest in equity and equity related instruments to seek capital appreciation.

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Corporate/PSU DebtCorporate Bonds / DebenturesBajaj Finance 978.81 5.97% [ICRA]AA+NABARD 776.28 4.74% CRISIL AAAHDFC 764.29 4.66% CRISIL AAARural Electrification Corporation 760.75 4.64% CARE AAAPower Finance Corporation 670.98 4.10% CRISIL AAAPower Finance Corporation 484.73 2.96% CRISIL AAALIC Housing Finance 474.21 2.89% CRISIL AAAPower Finance Corporation 382.74 2.34% CRISIL AAAPower Finance Corporation 282.38 1.72% CRISIL AAANABARD 195.22 1.19% CRISIL AAANational Housing Bank 189.53 1.16% CRISIL AAAEquitiesListed EquityITC 171.33 1.05%Maruti Suzuki India 137.62 0.84%Tata Consultancy Services 137.24 0.84%Shree Cements 127.83 0.78%HDFC Bank 126.35 0.77%Amara Raja Batteries 118.54 0.72%ICICI Bank 113.73 0.69%HDFC 107.80 0.66%Supreme Industries 90.62 0.55%Tech Mahindra 78.38 0.48%MRF 76.07 0.46%Bharti Airtel 73.58 0.45%Petronet LNG 72.11 0.44%Mcleod Russel India 69.66 0.43%IPCA Laboratories 68.19 0.42% N.A.Havells India 63.25 0.39%Hindustan Zinc 61.88 0.38%Crompton Greaves 60.83 0.37%Nestle India 60.23 0.37%Motherson Sumi Systems 58.58 0.36%Divi's Laboratories 53.07 0.32%LIC Housing Finance 49.77 0.30%Grasim Industries 47.46 0.29%Karur Vysya Bank 44.51 0.27%NMDC 44.03 0.27%Oil & Natural Gas Corporation 42.36 0.26%Yes Bank 40.15 0.25%Orient Cement 23.82 0.15%The Federal Bank 21.47 0.13%Punjab National Bank 19.34 0.12%Hindustan Dorr-Oliver 5.94 0.04%Sanghvi Movers 5.09 0.03%Orient Paper & Industries 4.32 0.03%Government Securities7.16% GOVT OF INDIA RED 20-05-2023 2,778.42 16.96% Sovereign8.07% GOVT OF INDIA RED 03-07-2017 962.50 5.87% Sovereign8.12% GOVT OF INDIA RED 10-12-2020 685.85 4.19% Sovereign8.30% GOVT OF INDIA RED 31-12-2042 561.59 3.43% Sovereign7.28% GOVT OF INDIA RED 03-06-2019 261.06 1.59% Sovereign9.71% ANDHRA PRADESH SDL RED 14-08-2023 255.36 1.56% Sovereign

9.65% KARNATAKA SDL RED 14-08-2023 255.03 1.56% Sovereign

HSBC MIP - Regular Plan (HMIP-R) August 2013

31

Date of Allotment 24-Feb-04Benchmark CRISIL MIP

Blended IndexNAV (Growth) per unit(as on 30.08.13)

` 19.3162


80.44 months


50.31 months

Fund Manager Aditya Khemani(for Equity portion)Sanjay Shah &Ruchir Parekh(for Debt portion)

SIP AvailableMinimum Application AmountGrowth `10,000Quarterly Dividend `10,000Monthly Dividend `25,000SIP `1,000 p.m.Exit Load@ NilTotal Expense Ratio as on August 30, 2013


Regular 2.38% Direct Plan 1.83% Excludes service tax on Investment Management fees of 0.18% of Total Net Assets.@ Effective from March 1, 2013 for prospective investments.

Asset AllocationCorporate/ PSU Debt 39.83%Government Securities 39.06%Equity 13.89%Cash Equivalents 3.73%Net Current Assets 3.49%Total Net Assets 100.00%

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

8.20% GOVT OF INDIA RED 24-09-2025 239.90 1.46% Sovereign8.10% TAMILNADU SDL RED 08-05-2023 217.77 1.33% Sovereign7.40% GOVT OF INDIA RED 09-09-2035 182.60 1.11% SovereignZero Coupon BondsHDFC 565.21 3.45% CRISIL AAATotal 92.77%Cash EquivalentsCBLOs 611.54 3.73%Net Current Assets 572.32 3.49%Total Net Assets as on 30 August 2013 16,384.25 100.00%

Rating ProfileAAA 33.85%AA+/ AA-/ AA 5.97%Sovereign 39.06%Equity 13.89%Reverse Repo/CBLOs 3.73%Net Current Assets 3.49%Total Net Assets 100.00%

HSBC MIP - Regular Plan (HMIP-R) August 2013

32





HSBC MIP - Regular Plan - Monthly Dividend28-Jun-13 0.05065 0.04851 11.325826-Jul-13 0.05065 0.04851 11.018230-Aug-13 0.05065 0.04851 10.7146HSBC MIP - Regular Plan - Quarterly Dividend14-Dec-12 0.17618 0.15101 11.664815-Mar-13 0.17618 0.15101 11.688314-Jun-13 0.17144 0.16419 11.7848


This Product is suitable for investors who are seeking* :l Regular Income over medium terml Investment in fixed income (debt and money market instruments) as well as equity and equity related securitiesl Medium risk (Yellow)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

An Open Ended Income SchemeInvestment 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 the Short Term and Investment Plans are invested.

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Securitised DebtInvestments - Asset Back Security

India MBS 2002 Series I 24.21 0.22% CRISIL AAA (SO)

Corporate/PSU DebtCorporate Bonds / DebenturesIndian Railway Finance Corporation 1,071.81 9.59% CRISIL AAAState Bank of India 672.54 6.02% CRISIL AAARural Electrification Corporation 618.11 5.53% CARE AAAHDFC 477.68 4.27% CRISIL AAAHDFC 466.23 4.17% CRISIL AAARural Electrification Corporation 435.96 3.90% CRISIL AAAPower Finance Corporation 287.56 2.57% CRISIL AAABajaj Finance 196.20 1.75% [ICRA]AA+Power Finance Corporation 191.37 1.71% CRISIL AAAPower Finance Corporation 188.26 1.68% CRISIL AAARural Electrification Corporation 133.29 1.19% CRISIL AAANABARD 97.61 0.87% CRISIL AAAGovernment Securities7.16% GOVT OF INDIA RED 20-05-2023 1,767.68 15.81% Sovereign8.12% GOVT OF INDIA RED 10-12-2020 1,541.98 13.79% Sovereign8.20% GOVT OF INDIA RED 24-09-2025 1,011.36 9.05% Sovereign8.15% GOVT OF INDIA RED 11-06-2022 473.75 4.24% Sovereign8.30% GOVT OF INDIA RED 31-12-2042 303.44 2.71% Sovereign8.07% GOVT OF INDIA RED 03-07-2017 255.06 2.28% Sovereign9.71% ANDHRA PRADESH SDL RED 14-08-2023 195.28 1.75% Sovereign

8.10% TAMILNADU SDL RED 08-05-2023 154.25 1.38% Sovereign8.25% ANDHRA PRADESH SDL RED 25-04-2023 72.64 0.65% Sovereign

7.28% GOVT OF INDIA RED 03-06-2019 59.54 0.53% Sovereign5.59% GOVT OF INDIA RED 04-06-2016 0.37 0.00% SovereignTotal 95.67%Cash EquivalentsCBLOs 155.97 1.40%Net Current Assets 328.17 2.93%Total Net Assets as on 30 August 2013 11,180.32 100.00%

HSBC Income Fund - Investment Plan (HIF-IP) August 2013

33

Date of Allotment 10-Dec-02Benchmark CRISIL Composite

Bond Fund IndexNAV (Growth) per unit(as on 30.08.13)

` 19.9316


93.76 months


59.37 months

Yield To Maturity* 9.57%Fund Manager Ruchir Parekh &

Sanjay ShahSIP AvailableMinimumApplicationAmount

` 10,000` 1,000 p.m.(SIP)

Exit Load@ NilTotal Expense Ratio as on August 30, 2013 Regular 1.85%Direct Plan 1.10%Excludes service tax on Investment Management fees of 0.12% of Total Net Assets.

Annualised Expense Ratio from 1st April 2013 onwards Regular 1.85%Direct Plan 0.75%Excludes service tax on Investment Management fees of 0.11% of Total Net Assets.

@ Effective from March 1, 2013 for prospective investments.* Based on invested Amount

Asset AllocationGovernment Securities 52.19%Corporate / PSU Debt 43.26%Net Current Assets 2.93%Cash Equivalents 1.40%Securitised Debt 0.22%





HSBC Income Fund - Investment Plan - Regular Option - Quarterly Dividend14-Dec-12 0.22023 0.18876 11.453315-Mar-13 0.22023 0.18876 11.610014-Jun-13 0.19482 0.18658 11.8018HSBC Income Fund - Investment Plan - Institutional Option - Quarterly Dividend12-Jun-09 0.11387 0.10598 11.029411-Sep-09 0.11387 0.10598 10.996011-Dec-09 0.11387 0.10598 11.0973

Rating ProfileAAA 41.72%AA+/ AA-/ AA 1.75%Sovereign 52.19%Reverse Repos/ CBLOs 1.40%Net Current Assets 2.93%

HSBC Income Fund - Investment Plan (HIF-IP) August 2013

34


This Product is suitable for investors who are seeking* :l Regular Income over long terml Investment in diversified portfolio of fixed income securitiesl Low risk (Blue)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

An Open Ended Income SchemeInvestment 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 the Short Term and Investment Plans are invested.

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Money Market InstrumentsCertificate of DepositState Bank of Patiala 2,426.33 2.30% [ICRA]A1+Punjab National Bank 2,416.14 2.29% CARE A1+Corporation Bank 2,415.52 2.29% CRISIL A1+Central Bank of India 2,410.48 2.29% CARE A1+Andhra Bank 2,357.91 2.24% CARE A1+UCO Bank 2,355.77 2.24% CRISIL A1+IDBI Bank 2,347.22 2.23% CRISIL A1+Punjab & Sind Bank 2,309.15 2.19% [ICRA]A1+United Bank of India 2,301.45 2.18% CARE A1+Bank of Maharashtra 1,980.70 1.88% CRISIL A1+Oriental Bank of Commerce 1,932.91 1.83% CRISIL A1+Central Bank of India 1,698.84 1.61% CARE A1+Andhra Bank 1,649.04 1.56% CARE A1+State Bank of Patiala 1,363.97 1.29% [ICRA]A1+Kotak Mahindra Bank 924.53 0.88% CRISIL A1+Oriental Bank of Commerce 426.47 0.40% CRISIL A1+State Bank of Patiala 298.93 0.28% [ICRA]A1+Kotak Mahindra Bank 153.54 0.15% CRISIL A1+Syndicate Bank 99.69 0.09% CARE A1+IndusInd Bank 90.28 0.09% CRISIL A1+ICICI Bank 74.97 0.07% [ICRA]A1+Yes Bank 65.51 0.06% [ICRA]A1+Commercial PaperL&T Finance 2,477.51 2.35% CARE A1+Piramal Enterprises 2,155.40 2.05% [ICRA]A1+HDFC 349.69 0.33% [ICRA]A1+Kotak Mahindra Prime 260.51 0.25% CRISIL A1+Corporate/PSU Debt

Corporate Bonds / DebenturesRural Electrification Corporation 5,376.51 5.10% CRISIL AAARural Electrification Corporation 4,469.43 4.24% CARE AAAPower Finance Corporation 3,877.86 3.68% CRISIL AAALIC Housing Finance 3,793.68 3.60% CRISIL AAAPower Finance Corporation 3,354.91 3.18% CRISIL AAAShriram Transport Finance Company 2,930.78 2.78% CRISIL AAShriram Transport Finance Company 2,919.65 2.77% CRISIL AALIC Housing Finance 2,761.02 2.62% CRISIL AAAHDFC 2,455.55 2.33% CRISIL AAAHDFC 2,454.55 2.33% CRISIL AAABajaj Finance 2,452.54 2.33% [ICRA]AA+Bajaj Finance 2,447.02 2.32% [ICRA]AA+HDFC 2,441.90 2.32% CRISIL AAAHDFC 2,440.13 2.32% CRISIL AAARural Electrification Corporation 2,422.01 2.30% CRISIL AAAExport Import Bank of India 2,388.83 2.27% CRISIL AAANational Housing Bank 2,274.34 2.16% CRISIL AAAPower Finance Corporation 2,254.32 2.14% CRISIL AAAShriram Transport Finance Company 2,198.57 2.09% CRISIL AAExport Import Bank of India 1,451.23 1.38% CRISIL AAAPower Grid Corporation of India 1,424.63 1.35% CRISIL AAAHDFC 955.37 0.91% CRISIL AAAPower Grid Corporation of India 954.46 0.91% CRISIL AAAPower Finance Corporation 948.45 0.90% CRISIL AAA

HSBC Income Fund - Short Term Plan (HIF-STP) August 2013

35

Date of Allotment 10-Dec-02Benchmark CRISIL Short Term


` 19.7284


22.65 months


17.80 months



` 10,000` 1,000 p.m.(SIP)

Exit Load@ NilTotal Expense Ratio as on August 30, 2013 Regular 1.25%Institutional # 0.70%Institutional Plus # 0.60%Direct Plan 0.50%Excludes service tax on Investment Management fees of 0.05% of Total Net Assets.

Annualised Expense Ratio from 1st April 2013 onwards Regular 1.25%Institutional # 0.70%Institutional Plus # 0.60%Direct Plan 0.48%Excludes service tax on Investment Management fees of 0.05% of Total Net Assets.

@ Effective from March 1, 2013 for prospective investments.* Based on invested Amount# Plan(s) discontinued from accepting subscriptions w.e.f. October 01, 2012

Asset AllocationCorporate / PSU Debt 61.55%Money Market Instruments 35.43%Cash Equivalents 0.94%Net Current Assets 2.08%

Rating ProfileAAA 82.88%AA+/ AA-/ AA 14.10%Reverse Repos/ CBLOs 0.94%Net Current Assets 2.08%





HSBC Income Fund - Short Term Plan - Regular Option - Monthly Dividend26-Apr-13 0.06031 0.05138 11.116231-May-13 0.06633 0.06352 11.170828-Jun-13 0.05067 0.04853 11.0969HSBC Income Fund - Short Term Plan - Monthly Dividend - Direct Plan28-Jun-13 0.05566 0.05331 11.1037HSBC Income Fund - Short Term Plan - Institutional Option - Monthly Dividend28-Dec-12 0.06057 0.05192 10.615124-Jan-13 0.06312 0.05410 10.635922-Feb-13 0.06114 0.05240 10.5969HSBC Income Fund - Short Term Plan - Institutional Plus Option - Monthly Dividend30-Dec-11 0.08478 0.07266 10.120027-Jan-12 0.05533 0.04742 10.086624-Feb-12 0.05663 0.04854 10.0881

HSBC Income Fund - Short Term Plan (HIF-STP) August 2013

36

Shriram Transport Finance Company 488.95 0.46% CRISIL AANABARD 352.89 0.33% CRISIL AAAHDFC 333.39 0.32% CRISIL AAATata Capital Financial Services 304.43 0.29% CRISIL AA+LIC Housing Finance 136.82 0.13% CRISIL AAAExport Import Bank of India 117.51 0.11% CRISIL AAAZero Coupon BondsTata Capital Financial Services 1,119.55 1.06% [ICRA]AA+HDFC 565.21 0.54% CRISIL AAATotal 96.99%Cash EquivalentsCBLOs 988.48 0.94%Net Current Assets 2,187.35 2.08%Total Net Assets as on 30 August 2013 1,05,384.79 100.00%


This Product is suitable for investors who are seeking* :l Regular Income over Medium terml Investment in diversified portfolio of fixed income securitiesl Low risk (Blue)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

An Open Ended Income SchemeInvestment Objective: Seeks to generate a reasonable return with commensurate risk through investments in floating rate debt instruments and fixed rate debt instruments swapped for floating rate returns. The Scheme may also invest in fixed rate money market and debt instruments.

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Money Market InstrumentsCertificate of DepositSyndicate Bank 2,392.64 14.70% CARE A1+Bank of Baroda 1,939.09 11.91% [ICRA]A1+Indian Bank 1,878.52 11.54% Fitch A1+Canara Bank 1,510.99 9.28% CRISIL A1+Commercial PaperPiramal Enterprises 2,057.43 12.64% [ICRA]A1+Aditya Birla Finance 1,761.58 10.82% [ICRA]A1+L&T Finance 1,734.26 10.65% CARE A1+Treasury Bill34 DAYS TREASURY BILL RED 17-09-2013 2,288.48 14.06% SovereignTotal 95.60%Cash EquivalentsCBLOs 772.70 4.75%Net Current Assets -56.80 -0.35%Total Net Assets as on 30 August 2013 16,278.91 100.00%

HSBC Floating Rate Fund - Long Term Plan (HFRF-LTP)

August 2013

37

Date of Allotment 16-Nov-04Benchmark CRISIL Liquid Fund

IndexNAV (Growth) per unit(as on 30.08.13)

` 18.951


2.45 months


2.19 months

Yield To Maturity* 11.86%Fund Manager Sanjay Shah &

Ruchir ParekhSIP AvailableMinimumApplicationAmount

` 10,000` 1,000 p.m.(SIP)

Sub OptionsGrowth, Daily Dividend, Reinvestment Weekly Dividend, Reinvestment, Monthly Dividend (Payout & Reinvestment)Exit Load@ Nil

Total Expense Ratio as on August 30, 2013 Regular # 1.30% Institutional 0.75%Direct Plan 0.20% Excludes service tax on Investment Management fees of 0.01% of Total Net Assets. Annualised Expense Ratio from 1st April 2013 onwards Regular # 1.30% Institutional 0.59%Direct Plan 0.19% Excludes service tax on Investment Management fees of 0.01% of Total Net Assets. @ Effective from March 1, 2013 for prospective investments.* Based on invested Amount# Plan(s) discontinued from accepting subscriptions w.e.f. October 01, 2012

Asset AllocationMoney Market Instruments 81.54%Treasury Bill 14.06%Cash Equivalents 4.75%Net Current Assets -0.35%





HSBC Floating Rate Fund - Long Term Plan - Regular Option - Monthly Dividend28-Jun-13 0.04134 0.03959 10.053126-Jul-13 0.02301 0.02203 10.029530-Aug-13 0.06948 0.06654 10.0892HSBC Floating Rate Fund - Long Term Plan - Monthly Dividend - Direct Plan30-Aug-13 0.07883 0.07549 10.2352HSBC Floating Rate Fund - Long Term Plan - Institutional Option - Monthly Dividend24-Jan-13 0.05438 0.04661 10.196122-Feb-13 0.04970 0.04260 10.187630-Aug-13 0.13558 0.12985 10.5613

Rating ProfileSovereign 14.06%AAA 81.54%Reverse Repos/ CBLOs 4.75%Net Current Assets -0.35%

HSBC Floating Rate Fund - Long Term Plan (HFRF-LTP)

August 2013

38


This Product is suitable for investors who are seeking* :l Liquidity over short terml Investment in floating rate and fixed rate Debt and Money Market Instrumentsl Low risk (Blue)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.


An Open Ended Liquid SchemeInvestment Objective: Aims to provide reasonable returns, commensurate with low risk while providing a high level of liquidity, through a portfolio of money market and debt securities.

IssuerMarketValue

(` in Lacs)

% toNet

AssetsRating

Money Market InstrumentsCertificate of DepositHDFC Bank 7,463.08 3.45% CARE A1+The Federal Bank 4,995.41 2.31% CRISIL A1+Yes Bank 4,992.54 2.31% [ICRA]A1+Punjab National Bank 4,985.25 2.30% CARE A1+Allahabad Bank 4,985.04 2.30% [ICRA]A1+State Bank of Patiala 4,984.67 2.30% CARE A1+IndusInd Bank 4,975.22 2.30% CRISIL A1+Bank of India 4,966.14 2.29% CRISIL A1+State Bank of Travancore 4,962.72 2.29% CRISIL A1+Oriental Bank of Commerce 2,498.56 1.15% CRISIL A1+Indian Bank 2,498.52 1.15% Fitch A1+Syndicate Bank 2,497.81 1.15% CARE A1+Dena Bank 2,495.66 1.15% CRISIL A1+United Bank of India 2,493.15 1.15% CARE A1+IDBI Bank 2,491.43 1.15% CRISIL A1+Vijaya Bank 2,490.82 1.15% CARE A1+IndusInd Bank 2,490.70 1.15% CRISIL A1+Indian Bank 2,488.24 1.15% Fitch A1+Union Bank of India 2,487.37 1.15% CARE A1+Central Bank of India 2,483.20 1.15% CARE A1+IndusInd Bank 2,483.19 1.15% CRISIL A1+The Federal Bank 2,481.85 1.15% CRISIL A1+State Bank of Patiala 2,192.14 1.01% [ICRA]A1+Commercial PaperMahindra & Mahindra Financial Serv 7,446.17 3.44% CRISIL A1+HDFC 4,991.23 2.31% CARE A1+L&T Finance 4,985.63 2.30% CARE A1+Aditya Birla Nuvo 4,979.44 2.30% [ICRA]A1+National Housing Bank 4,974.05 2.30% [ICRA]A1+Steel Authority of India 4,970.75 2.30% CARE A1+IL & FS 4,969.26 2.30% [ICRA]A1+Gruh Finance 4,961.05 2.29% CRISIL A1+Godrej Industries 2,974.16 1.37% [ICRA]A1+HDFC 2,647.65 1.22% [ICRA]A1+Aditya Birla Finance 2,498.27 1.15% [ICRA]A1+L&T Finance 2,497.42 1.15% CARE A1+Tata Capital Financial Services 2,483.88 1.15% [ICRA]A1+HDFC 2,481.79 1.15% [ICRA]A1+Mahindra & Mahindra Financial Serv 2,479.71 1.15% CRISIL A1+Steel Authority of India 2,479.60 1.15% Fitch A1+Reliance Capital 2,479.49 1.15% CRISIL A1+Total 67.98%Cash EquivalentsCBLOs 69,368.88 32.04%Net Current Assets -35.02 -0.02%Total Net Assets as on 30 August 2013 2,16,516.14 100.00%

HSBC Cash Fund (HCF) August 2013

39

Date of Allotment 04-Dec-02Benchmark CRISIL Liquid Fund


` 1211.5665


0.39 months


0.36 months



` 10,000` 1,000 p.m.(SIP)

Sub OptionsGrowth, Daily Dividend, Reinvestment Weekly Dividend, Reinvestment, Monthly Dividend (Payout & Reinvestment) Exit Load@ Nil

Total Expense Ratio as on August 30, 2013 Regular # 1.00% Institutional # 0.35%Institutional Plus 0.06%Direct Plan 0.05%Currently there is no Service Tax levied due to nil Investment Management Fees being charged.Annualised Expense Ratio from 1st April 2013 onwards Regular # 1.00% Institutional # 0.35%Institutional Plus 0.04%Direct Plan 0.03%Currently there is no Service Tax levied due to nil Investment Management Fees being charged.@ Effective from March 1, 2013 for prospective investments.* Based on invested Amount# Plan(s) discontinued from accepting subscriptions w.e.f. October 01, 2012





HSBC Cash Fund - Institutional Option - Monthly Dividend28-Jun-13 4.80460 4.60146 1006.222026-Jul-13 3.45009 3.30423 1004.483830-Aug-13 8.33178 7.97952 1010.7483HSBC Cash Fund - Monthly Dividend - Direct Plan28-Jun-13 4.80945 4.60611 1006.1717HSBC Cash Fund - Institutional Plus Option - Monthly Dividend26-Aug-11 0.04886 0.04686 10.138329-Sep-11 0.05876 0.05636 10.150928-Oct-11 0.05244 0.05030 10.1428

Asset AllocationMoney Market Instruments 67.98%Cash Equivalents 32.04%Net Current Assets -0.02%

Rating ProfileAAA 67.98%Reverse Repos/ CBLOs 32.04%Net Current Assets -0.02%

HSBC Cash Fund (HCF) August 2013

40


*** Service tax on AMC fees is charged in addition to the above stated TERs .

HSBC Cash Fund

01 Aug 2013 to 12 Aug 2013***

13 Aug 2013 to 30 Aug 2013***

Average for the Month

Normal (erstwhile insti-plus)

0.03 0.06 0.05

Direct 0.02 0.05 0.04

This Product is suitable for investors who are seeking* :l Overnight Liquidity over short terml Invests in Money Market Instrumentsl Low risk (Blue)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.


Date of Allotment 05-Dec-03Benchmark I-Sec Composite


` 14.9934


94.09 months


61.71 months

Yield To Maturity* 9.14%Fund Manager Sanjay ShahSIP AvailableMinimum ` 10,000Application ` 1,000 p.m.(SIP)AmountExit Load@ Nil

Total Expense Ratio as on August 30, 2013 Regular 1.00% Direct Plan 0.50% Excludes service tax on Investment Management fees of 0.06% of Total Net Assets. Annualised Expense Ratio from 1st April 2013 onwards Regular 1.00% Direct Plan 0.49% Excludes service tax on Investment Management fees of 0.05% of Total Net Assets. @ Effective from March 1, 2013 for prospective investments.* Based on invested Amount

An Open Ended Gilt SchemeInvestment Objective: Aims to generate reasonable returns through investments in Government Securities of various maturities. The AMC’s view of interest rate trends and the nature of the plans will be reflected in the maturities of securities in which the Plans are invested.

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Government Securities7.16% GOVT OF INDIA RED 20-05-2023 99.72 37.12% Sovereign8.12% GOVT OF INDIA RED 10-12-2020 80.41 29.93% Sovereign8.10% TAMILNADU SDL RED 08-05-2023 27.22 10.13% Sovereign8.07% GOVT OF INDIA RED 03-07-2017 9.63 3.58% Sovereign8.25% ANDHRA PRADESH SDL RED 25-04-2023 9.08 3.38% Sovereign

8.30% GOVT OF INDIA RED 31-12-2042 4.53 1.69% SovereignTotal 85.83%Cash EquivalentsCBLOs 32.21 11.99%Net Current Assets 5.84 2.17%Total Net Assets as on 30 August 2013 268.64 100.00%





HSBC Gilt Fund - Monthly Dividend31-Oct-08 0.06136 0.05711 10.807728-Nov-08 0.04193 0.03903 10.785526-Dec-08 0.03400 0.03164 10.7764

Asset AllocationGovernment Securities 85.83%Cash Equivalents 11.99%Net Current Assets 2.17%

Rating ProfileSovereign 85.83%Reverse Repos/ CBLOs 11.99%Net Current Assets 2.17%

HSBC Gilt Fund (HGF) August 2013

41


This Product is suitable for investors who are seeking* :l Regular Income over long terml Investment in Government Securitiesl Low risk (Blue)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.


An Open Ended Debt SchemeInvestment Objective: Seeks to provide liquidity and reasonable returns by investing primarily in a mix of short term debt and money market instruments.

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Money Market InstrumentsCertificate of DepositCanara Bank 849.93 13.61% CRISIL A1+Andhra Bank 706.73 11.32% CARE A1+Central Bank of India 660.66 10.58% CARE A1+Bank of Baroda 484.77 7.77% [ICRA]A1+Oriental Bank of Commerce 483.23 7.74% CRISIL A1+Indian Bank 469.63 7.52% Fitch A1+Bank of Maharashtra 377.28 6.04% CRISIL A1+Commercial PaperL&T Finance 743.25 11.91% CARE A1+Piramal Enterprises 685.81 10.99% [ICRA]A1+Aditya Birla Finance 391.46 6.27% [ICRA]A1+Treasury Bill34 DAYS TREASURY BILL RED 17-09-2013 199.00 3.19% SovereignTotal 96.94%Cash EquivalentsCBLOs 217.36 3.48%Net Current Assets -26.20 -0.42%Total Net Assets as on 30 August 2013 6,242.92 100.00%

HSBC Ultra Short Term Bond Fund (HUSBF) August 2013

42

Date of Allotment 17-Oct-06Benchmark Customised

Benchmark Index**NAV (Growth) per unit(as on 30.08.13)

` 10.6917


4.12 months


3.68 months


Ruchir ParekhSIP AvailableMinimum ` 10,000Application ` 1,000 p.m.(SIP)Amount

Sub OptionsGrowth, Daily Dividend, Reinvestment Weekly Dividend, Reinvestment, Monthly Dividend (Payout & Reinvestment)Exit Load@ NilTotal Expense Ratio as on August 30, 2013 Regular # 1.30% Institutional 0.75%Institutional Plus # 0.25%Direct Plan 0.25%Excludes service tax on Investment Management fees of 0.02% of Total Net Assets.

Annualised Expense Ratio from 1st April 2013 onwards Regular # 1.30% Institutional 0.69%Institutional Plus # 0.25%Direct Plan 0.23%Excludes service tax on Investment Management fees of 0.02% of Total Net Assets.

@ Effective from March 1, 2013 for prospective investments.** Composite index of CRISIL Liquid Fund Index(90%) and CRISIL Short Term Bond Fund Index(10%).* Based on invested Amount# Plan(s) discontinued from accepting subscriptions w.e.f. October 01, 2012

Asset AllocationMoney Market Instruments 93.75%Cash Equivalents 3.48%Treasury Bill 3.19%Net Current Assets -0.42%

Rating ProfileSovereign 3.19%AAA 93.75%Reverse Repos/ CBLOs 3.48%Net Current Assets -0.42%





HSBC Ultra Short Term Bond Fund - Institutional Option - Monthly Dividend31-May-13 0.06005 0.05751 10.215628-Jun-13 0.04732 0.04532 10.199230-Aug-13 0.05565 0.05330 10.1982HSBC Ultra Short Term Bond Fund - Institutional Plus Option - Monthly Dividend28-Jan-11 0.04829 0.04501 10.382125-Feb-11 0.04125 0.03845 10.374125-Mar-11 0.05214 0.04859 10.3865

HSBC Ultra Short Term Bond Fund (HUSBF) August 2013

43


HSBC Ultra Short Term Bond Fund

01 Aug 2013 to 15 Aug 2013***

16 Aug 2013 to 30 Aug 2013***

Average for the Month

Normal (erstwhile institutional plan)

0.75 0.75 0.75

Direct 0.25 0.25 0.25

*** Service tax on AMC fees is charged in addition to the above stated TERs .

This Product is suitable for investors who are seeking* :l Liquidity over short terml Investment in Debt / Money Market Instrumentsl Low risk (Blue)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

An Open Ended Debt SchemeInvestment Objective: Seeks to deliver returns in the form of interest income and capital gains, along with high liquidity, commensurate with the current view on the markets and the interest rate cycle, through active invest-ment in debt and money market instruments.

IssuerMarketValue

(` in Lacs)

% toNet

AssetsRating

Money Market InstrumentsCommercial PaperAditya Birla Finance 293.60 0.25% [ICRA]A1+Corporate/PSU DebtCorporate Bonds / DebenturesIndian Railway Finance Corporation 9,361.72 7.83% CRISIL AAARural Electrification Corporation 5,372.82 4.49% CARE AAAHDFC 4,196.11 3.51% CRISIL AAAState Bank of India 3,650.95 3.05% CRISIL AAARural Electrification Corporation 3,439.25 2.88% CRISIL AAAPower Finance Corporation 2,875.64 2.40% CRISIL AAAShriram Transport Finance Company 2,433.05 2.03% CRISIL AABajaj Finance 2,256.33 1.89% [ICRA]AA+National Housing Bank 1,990.05 1.66% CRISIL AAAPower Finance Corporation 1,961.55 1.64% CRISIL AAAShriram Transport Finance Company 1,955.81 1.64% CRISIL AATata Sons 1,953.34 1.63% CRISIL AAALIC Housing Finance 1,468.63 1.23% CRISIL AAAHDFC 1,433.05 1.20% CRISIL AAARural Electrification Corporation 1,110.76 0.93% CRISIL AAAPower Finance Corporation 988.35 0.83% CRISIL AAAShriram Transport Finance Company 976.93 0.82% CRISIL AANABARD 878.51 0.73% CRISIL AAAGovernment Securities7.16% GOVT OF INDIA RED 20-05-2023 29,628.95 24.77% Sovereign8.12% GOVT OF INDIA RED 10-12-2020 12,619.64 10.55% Sovereign8.20% GOVT OF INDIA RED 24-09-2025 4,534.66 3.79% Sovereign8.30% GOVT OF INDIA RED 31-12-2042 3,301.60 2.76% Sovereign8.07% GOVT OF INDIA RED 03-07-2017 3,243.63 2.71% Sovereign7.40% GOVT OF INDIA RED 09-09-2035 2,456.80 2.05% Sovereign9.71% ANDHRA PRADESH SDL RED 14-08-2023 2,193.10 1.83% Sovereign

8.10% TAMILNADU SDL RED 08-05-2023 1,560.68 1.30% Sovereign8.25% ANDHRA PRADESH SDL RED 25-04-2023 826.23 0.69% Sovereign

7.28% GOVT OF INDIA RED 03-06-2019 668.68 0.56% Sovereign9.65% KARNATAKA SDL RED 14-08-2023 390.05 0.33% SovereignZero Coupon BondsHDFC 282.60 0.24% CRISIL AAATotal 92.22%Cash EquivalentsCBLOs 2,649.51 2.22%Net Current Assets 6,651.20 5.56%Total Net Assets as on 30 August 2013 1,19,603.75 100.00%

HSBC Flexi Debt Fund (HFDF) August 2013

44

Date of Allotment 05-Oct-07Benchmark CRISIL Composite


` 16.1262


89.61 months


55.79 months


Ruchir ParekhSIP AvailableMinimum ` 10,000Application ` 1,000 p.m.(SIP)AmountExit Load@ Nil

Total Expense Ratio as on August 30, 2013 Regular # 1.85%Institutional 1.60% Direct Plan 0.85%Excludes service tax on Investment Management fees of 0.09% of Total Net Assets.Annualised Expense Ratio from 1st April 2013 onwards Regular # 1.85%Institutional 1.60% Direct Plan 0.78%Excludes service tax on Investment Management fees of 0.09% of Total Net Assets.@ Effective from March 1, 2013 for prospective investments.* Based on invested Amount# Plan(s) discontinued from accepting subscriptions w.e.f. October 01, 2012





HSBC Flexi Debt Fund - Regular Option - Monthly Dividend26-Apr-13 0.05836 0.04973 10.494931-May-13 0.11214 0.10740 10.671828-Jun-13 0.03263 0.03125 10.4175HSBC Flexi Debt Fund - Institutional Option - Monthly Dividend26-Apr-13 0.07409 0.06313 10.750531-May-13 0.11686 0.11191 10.917828-Jun-13 0.03489 0.03342 10.6570HSBC Flexi Debt Fund - Monthly Dividend - Direct Plan31-May-13 0.12506 0.11977 10.9844HSBC Flexi Debt Fund - Regular Option - Quarterly Dividend14-Dec-12 0.19821 0.16988 11.885915-Mar-13 0.19821 0.16988 12.068614-Jun-13 0.19482 0.18658 12.2858HSBC Flexi Debt Fund - Institutional Option - Quarterly Dividend14-Dec-12 0.19821 0.16988 11.787015-Mar-13 0.19821 0.16988 11.973714-Jun-13 0.19482 0.18658 12.1950HSBC Flexi Debt Fund - Quarterly Dividend - Direct Plan14-Jun-13 0.19482 0.18658 12.2525HSBC Flexi Debt Fund - Regular Option - Half Yearly Dividend16-Mar-12 0.35236 0.30201 11.267214-Sep-12 0.35236 0.30201 11.431515-Mar-13 0.35236 0.30201 11.6629HSBC Flexi Debt Fund - Institutional Option - Half-yearly Dividend15-Mar-13 0.35236 0.30201 10.9757HSBC Flexi Debt Fund - Half-yearly Dividend - Direct Plan15-Mar-13 0.35236 0.30201 10.9999

Asset AllocationCorporate / PSU Debt 40.62%Money Market Instruments 0.25%Government Securities 51.36%Cash Equivalents 2.22%Net Current Assets 5.56%

Rating ProfileAAA 34.49%AA+/ AA-/ AA 6.37%Sovereign 51.36%Reverse Repos/ CBLOs 2.22%Net Current Assets 5.56%

HSBC Flexi Debt Fund (HFDF) August 2013

45


This Product is suitable for investors who are seeking* :l Regular Income over long terml Investment in Debt / Money Market Instrumentsl Low risk (Blue)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

Name of Scheme Fund Manager

HSBC MIP - Savings & Regular Plan

For Debt portion: Sanjay Shah (from 14 August 2009) & Ruchir Parekh (from 25 January 2011) & For Equity portion: Aditya Khemani (from 24 February 2009)

HSBC Income Fund - Investment Plan

Ruchir Parekh (from 25 January 2011) &Sanjay Shah (from 09 January 2009)

HSBC Income Fund - Short Term Plan

Ruchir Parekh (from 25 January 2011) &Sanjay Shah (from 09 January 2009)

HSBC Floating Rate Fund Long Term Plan

Sanjay Shah (from 09 January 2009) & Ruchir Parekh (from 22 September 2012)

HSBC Cash Fund Ruchir Parekh (from 25 January 2011) &Sanjay Shah (from 22 September 2012)

HSBC Gilt Fund Sanjay Shah (from 09 January 2009)

HSBC Ultra Short Term Bond Fund

Sanjay Shah (from 22 September 2012) & Ruchir Parekh (from 22 September 2012)

HSBC Flexi Debt Fund Sanjay Shah (from 09 January 2009) &Ruchir Parekh (from 25 January 2011)

Fund Managers - MIP & Debt August 2013

46

Fund Manager’s ExperienceSanjay Shah Senior Vice President Head - Fixed IncomeB. Com, A.C.A., Post Graduate Diploma in ManagementExperience:Over 14 years of experience in research and risk l HSBC Asset Management (India) Private Ltd Senior Vice President & Fund Manager, Fixed Income since October 2011 to present, Vice President & Fund Manager, Fixed Income since December 2008 to September 2011. l FIL Fund Management Private Ltd Credit Analyst from September 2008 to December 2008 l Lehman Brothers Structured Financial Services Private Ltd Vice President, Convertible Products from September 2006 to Sep tember 2008 l Rabo India Finance Private Ltd Senior Manager – Credit Risk from July 2004 to September 2006 l ICICI Bank Ltd Manager, Credit Risk from January 2003 to June 2004 l SBI Funds Management Private Ltd Chief Manager, Debt Funds from June 1999 to January 2003

Ruchir ParekhSenior Vice President and Fund Manager - Fixed IncomeMBA, B.ComExperience:Over 16 years of experience in research and fixed income management l HSBC Asset Management (India) Private Ltd Senior Vice President & Fund Manager, Fixed Income since September 2011 to present, Vice President & Fund Manager, Fixed Income since January 2011 to September 2011. l AIG Global Asset Management (India) Private Ltd Fund Manager, Fixed Income from April 2007 - January 2011 l HDFC Asset Management Company Ltd Sr. Manager, Fixed Income Analyst from February 2003 - April 2007 l Bear Stearns & Co., New York, NY Fixed Income Analyst from October 2000 - March 2002 l Moodys Investors Service, New York, NY Senior Associate from June 1997 - October 2000

Comparative Performance of Debt Schemes August 2013

47

Data for the period July to June has been considered in all cases, except for ‘Since Inception’ returns. ‘Since Inception’ (%) returns are compounded annualised, other % returns are simple annualised. ‘Since inception’ returns are calculated on `10 invested at inception. Standard benchmark is prescribed by SEBI and is used for comparison purposes. Returns on ̀ 10,000 are point-to-point returns for the specific time period, invested at the start of the period. The returns provided above have been rounded off and hence there may be minor differences between point-to-point returns vis-a-vis returns indicated above.

HSBC MIP - Regular Plan Date of Inception : 24 Feb 04Scheme Name & Benchmarks July 12 -

June 13July 11 - June

12

July 10 - June 11

Since Inception

HSBC MIP - Regular Plan - Growth 10.18% 6.72% 3.93% 7.80%Crisil MIP Blended Index (Scheme Benchmark) 10.87% 6.58% 5.17% 7.39%Crisil 1 Year T-Bill Index (Standard Benchmark) 8.19% 7.72% 4.32% 5.47%Crisil 10 Year Gilt Index (Standard Benchmark) 12.14% 7.25% 1.54% 5.12%`10,000, if invested in HMIP - R, would have become `11,018 `10,672 `10,393 `20,193

`10,000, if invested in Crisil MIP Blended Index, would have become `11,087 `10,658 `10,517 `19,489

`10,000, if invested in Crisil 1 Year T-Bill Index, would have become `10,819 `10,772 `10,432 `16,465

`10,000, if invested in Crisil 10 Year Gilt Index, would have become `11,214 `10,725 `10,154 `15,950

HSBC MIP - Savings Plan Date of Inception : 24 Feb 04Scheme Name & Benchmarks July 12 -


July 10 - June 11

Since Inception

HSBC MIP - Savings Plan - Growth 11.43% 6.58% 3.87% 9.30%Crisil MIP Blended Index (Scheme Benchmark) 10.87% 6.58% 5.17% 7.39%Crisil 1 Year T-Bill Index (Standard Benchmark) 8.19% 7.72% 4.32% 5.47%Crisil 10 Year Gilt Index (Standard Benchmark) 12.14% 7.25% 1.54% 5.12%`10,000, if invested in HMIP - S, would have become `11,143 `10,658 `10,387 `22,985

`10,000, if invested in Crisil MIP Blended Index, would have become `11,087 `10,658 `10,517 `19,489



Funds Managed by - Sanjay Shah & Ruchir Parekh (for Debt portion) &Aditya Khemani (for Equity portion)



HSBC Gilt Fund Date of Inception : 05 Dec 03Scheme Name & Benchmarks July 12 -


July 10 - June 11

Since Inception

HSBC Gilt Fund - Growth 12.21% 10.69% 7.36% 4.85%I-Sec Composite Index (Scheme Benchmark) 12.02% 9.90% 4.75% 6.99%Crisil 10 Year Gilt Index (Standard Benchmark) 12.14% 7.25% 1.54% 5.09%`10,000, if invested in HGF, would have become `11,221 `11,069 `10,736 `15,742

`10,000, if invested in I-Sec Composite Bond Fund Index, would have become `11,202 `10,990 `10,475 `19,104


Fund Managed by - Sanjay Shah.



48


47

HSBC FRF - LTP - Regular Plan Date of Inception : 16 Nov 04Scheme Name & Benchmarks July 12 -


July 10 - June 11

Since Inception

HSBC FRF - LTP - Growth 8.68% 9.00% 6.78% 7.52%Crisil Liquid Fund Index (Scheme Benchmark) 8.14% 8.67% 7.17% 6.72%Crisil 1 Year T-Bill Index (Standard Benchmark) 8.19% 7.72% 4.32% 5.72%

`10,000, if invested HFRF - LTP, would have become `10,868 `10,900 `10,678 `18,691

`10,000, if invested in Crisil Liquid Fund Index, would have become `10,814 `10,867 `10,717 `17,526


Funds Managed by - Sanjay Shah & Ruchir Parekh.


HSBC Ultra Short Term Bond Fund$ Date of Inception : 17 Oct 06Scheme Name & Benchmarks Since InceptionHSBC Ultra Short Term Bond Fund - Growth 6.34%Customised Benchmark Index (Scheme Benchmark)* 6.10%Crisil 1 Year T-Bill Index (Standard Benchmark) 6.01%`10,000, if invested in HUSTBF, would have become `10,470 `10,000, if invested in Customised Benchmark Index, would have become `10,453

`10,000, if invested in Crisil 1 Year T-Bill Index, would have become `10,446


HSBC Flexi Debt Fund Date of Inception: 05 Oct 07Scheme Name & Benchmarks July 12 -


July 10 - June 11

Since Inception

HSBC Flexi Debt Fund - Growth 11.44% 9.91% 6.07% 9.40%Crisil Composite Bond Fund Index (Scheme Benchmark) 10.73% 8.67% 4.53% 7.29%

Crisil 10 Year Gilt Index (Standard Benchmark) 12.14% 7.25% 1.54% 7.16%`10,000, if invested in HFDF, would have become `11,144 `10,991 `10,607 `16,752

`10,000, if invested in Crisil Composite Bond Fund Index, would have become `11,073 `10,867 `10,453 `14,981



*Composite index of Crisil Liquid Fund Index(90%) and Crisil Short Term Bond Fund Index(10%).

$Pursuant to SEBI circular dated Sept 13, 2012, certain Plans/options within the schemes have been discontinued to comply with a single plan structure. Since there was no continuous NAV history available for the surviving Plan prior to 1 October 2012, returns since the said date have been considered for calculating performance. The inception date of HSBC Ultra Short Term Bond Fund however is 17 October 2006.


49


HSBC Income Fund - Investment Plan Date of Inception : 10 Dec 02Scheme Name & Benchmarks July 12 -


July 10 - June 11

Since Inception

HSBC Income Fund - Investment Plan - Growth 11.56% 9.63% 5.79% 7.26%Crisil Composite Bond Fund Index (Scheme Benchmark) 10.76% 8.67% 4.53% 6.07%

Crisil 10 Year Gilt Index (Standard Benchmark) 12.14% 7.25% 1.54% 5.90%`10,000, if invested in HIF - IP, would have become `11,156 `10,963 `10,579 `20,967

`10,000, if invested in Crisil Composite Bond Fund Index, would have become `11,076 `10,867 `10,453 `18,629


HSBC Income Fund - S T P Date of Inception : 10 Dec 02Scheme Name & Benchmarks July 12 -


July 10 - June 11

Since Inception

HSBC Income Fund - S T P - Growth 9.26% 8.70% 6.85% 6.81%Crisil Short Term Bond Fund Index (Scheme Benchmark) 9.33% 8.77% 5.56% 6.52%

Crisil 1 Year T-Bill Index (Standard Benchmark) 8.19% 7.72% 4.32% 5.46%

`10,000, if invested in HIF -ST, would have become `10,926 `10,870 `10,685 `20,057

`10,000, if invested in Crisil Short Term Bond Fund Index, would have become `10,933 `10,877 `10,556 `19,495


Funds Managed by - Ruchir Parekh & Sanjay Shah.



HSBC Cash Fund$ Date of Inception: 04 Dec 02Scheme Name & Benchmarks

Last 7 Days as on 28

June 2013

Last 15 Days as on 28

June 2013

Last 30 Days as

on 28 June 2013

July 12 - June 13

July 11 - June 12

Since Inception

HSBC Cash Fund - Growth 8.21% 8.09% 8.02% 8.78% 8.80% 8.73%

Crisil Liquid Fund Index (Scheme Benchmark)

9.18% 8.90% 8.18% 8.14% 8.69% 8.08%

Crisil 91 Day T-Bill Index (Standard Benchmark)

8.72% 8.08% 7.36% 8.31% 8.04% 8.40%

`10,000, if invested in HCF, would have become

`10,016 `10,033 `10,066 `10,878 `10,880 `24,252

`10,000, if invested in Crisil Liquid Fund Index, would have become

`10,018 `10,037 `10,067 `10,814 `10,869 `22,749

`10,000, if invested in Crisil 91 Day T-Bill Index, would have become

`10,017 `10,033 `10,060 `10,831 `10,804 `23,482


$ Pursuant to SEBI circular dated Sept 13, 2012, certain Plans/options within the schemes have been discontinued to comply with a single plan structure. Since there was no continuous NAV history available for the surviving Plan prior to 19 May 2011, returns since the said date have been considered for calculating performance. The inception date of HSBC Cash Fund however is 4 December 2002.

Statutory Details & Disclaimers

All returns have been sourced from MutualFundsIndia Explorer software unless otherwise stated. With regard to equity schemes (including the equity component of MIPs), Fund performance is calculated on a total return basis (i.e. it includes dividends re-invested) while the benchmark is calculated on a price return basis (i.e. it does not consider dividends re-invested). This document has been prepared by HSBC Asset Management (India) Private Ltd (HSBC) for information purposes only and should not be construed as an offer or solicitation of an offer for purchase of any of the funds of HSBC Mutual Fund. All information contained in this document (including that sourced from third parties), is obtained from sources HSBC, the third party believes to be reliable but which it has not independently verified and HSBC, the third party makes no guarantee, representation or warranty and accepts no responsibility or liability as to the accuracy or completeness of such information. The information and opinions contained within the document are based upon publicly available information and rates of taxation applicable at the time of publication, which are subject to change from time to time. Expressions of opinion are those of HSBC only and are subject to change without notice. It does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies that may have been discussed or recommended in this report and should understand that the views regarding future prospects may or may not be realized. Neither this document nor the units of HSBC Mutual Fund have been registered in any jurisdiction. The distribution of this document in certain jurisdictions may be restricted or totally prohibited and accordingly, persons who come into possession of this document are required to inform themselves about, and to observe, any such restrictions. Mutual fund investments are subject to market risks. Please read the Scheme Information Document carefully before investing.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted, on any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of HSBC Asset Management (India) Private Ltd.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

HSBC Asset Management (India) Private Limited, 16, V.N. Road, Fort, Mumbai-400001 Email: [email protected] Website: www.assetmanagement.hsbc.com/in

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