june 2013 - hsbc bank india · fund manager commentary june 2013 4 review: hsbc progressive themes...

June 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 June 2013

2

Equity & MIP

Market UpdateEquities saw another month of high volatility and had a poor run due to adverse global news flow and resultant capital outflows from the system. India saw a combined capital outflow of approx. USD 7.1 bn (~USD 5.37 bn & 1.76 bn of Debt & Equities respectively) and this was one of the highest monthly fund exoduses in the recent history. The currency plummeted as an after effect of these outflows and marked historical low levels for the Rupee versus the USD. The global investors appeared jittery as with a tapering off in the Quantitative Easing (QE) by the US Federal Reserve, the global liquidity was perceived to be under threat and that resulted in foreign investor withdrawals across the emerging markets including India. The currency depreciation may have weighed heavily on the RBI’s scheme of measures when they decided against a repo rate cut during the June policy meet. Under a precarious Current Account Deficit (CAD) scenario, a depreciating currency may add to the economy’s woes and may impact the portfolio flows into India. However, sensing a difficult environment the central government went ahead and announced a key policy decision to raise the domestic gas prices and proposed to double it as per the recommendation of the Rangarajan committee from April 2014. This action boosted the overall investor confidence and the equity market ended the month on a high on the last trading day of the month. The monsoon also was normal to above-normal in most parts of the country bringing some relief on that front as the agricultural growth and rural demand aspects are closely linked to it.

June 2013 saw the market indices BSE Sensex & Nifty ending in red, losing 1.84% & 2.4% respectively. The impact on the broader market was even more severe with the BSE Midcap & BSE Smallcap indices shedding 6.65% & 5.05% respectively. Amongst the BSE sectoral indices, only IT and Oil & Gas ended in the positive zone gaining 3.13% & 2.84% respectively while all other sectoral indices ended in the negative territory.

The institutional flows saw a reversal of trend as the Foreign Institutional Investors (FIIs) turned net sellers and the Domestic segment (DIIs) became net buyers in the equities cash segment. FIIs net sold equities worth USD ~1.8 bn in June, a reversal in their net buying pattern seen for almost 12 months. The YTD net inflow tally from the segment still stands at a healthy ~USD 13.3 bn despite this outflow experienced in June. The DIIs on the other hand moved into a positive zone first time in many months accumulating equities worth USD 1.5 bn, contracting their net YTD outflows to USD 7.6 bn.Rupee experienced a turbulent time hitting a historical low after breaching the INR 60/USD mark during June. The QE tapering plans by the US Federal Reserve spooked global investors and India saw significant portfolio outflows especially from the debt segment hitting the currency adversely. With the country running a high Current Account Deficit (CAD), the currency shock may act as a double whammy for the economy and also dilute the benefit of the lower global commodity prices.

Equity market hit by fund exodus

Source: Bloomberg ; Central Statistical Organization (CSO) India

Source: Bombay Stock Exchange (BSE)

Rupee touches historical lows

-7.0%-6.0%-5.0%-4.0%-3.0%-2.0%-1.0%0.0%

Sensex BSE100 BSE200 BSE500 BSEMidCap

BSESmallCap

-1.8%

-3.2% -3.5% -3.7%

-6.7% -5.1%

Indices Performance - June 2013

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

10.00%

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3

Repo Rate Movement

Repo Rate

Inflation & Industrial Growth

WPI at a 43 month low

Lower commodity prices and softer domestic demand continued to have a positive effect on the headline inflation number. The Wholesale Price Index (WPI) inflation print for May 2013 came in at a 43 month low of 4.7% (YoY vs. 4.9% in April 2013), showing signs of sustained abatement. The core inflation fell further to 2.4% (YoY vs. 2.7% in April 2013). Only notable deviation from the above trends was on the food inflation front which rose by 8.2% (YoY vs. 6.1% in April 2013) assumed to be due to temporary weather related factors. Despite the positive trends seen on inflation, the expectations of any immediate monetary easing were dampened by a weakening Rupee.

IIP growth fails to sustain on its upward trajectory

Country’s industrial production growth measured by the Index of Industrial Production or IIP came in at 2.3% for April 2013 (YoY vs.3.4% for March 2013), a tad below street expectations. Amongst the sectors, mining continued to see de-growth due to policy impasse while the electricity output moved up with 4.2% YoY growth. The manufacturing segment grew at 2.8% YoY while the consumer durables segment continued on a contraction path de-growing by 8.3% YoY for the month.

Global Economic Scenario

QE tapering plans continue to grab headlines

The Federal Open Market Committee (FOMC) of the US came out with a more hawkish – than – expected view stating that the downside risks to the economic growth in the country has diminished and the labour market is picking up in a satisfactory manner. Following on this view, the Fed Reserve Chairman Mr. Ben Bernanke stated that the central bank may scale back its monthly asset purchases later this year and continue to reduce the pace in measured steps to end purchases around mid- 2014, if its economic assessments prove right. Although the actual implementation of the policy may be sometime away, the asset markets across the globe may experience volatility in the short term, given the overhang that the liquidity impact is likely to create. On the other hand the QE tapering will depend on the US economic outlook and in the event of any deterioration, the QE measures could be resumed.

Going ForwardEquities have experienced a lot of volatility recently and it’s been the adverse news flows on the global front that have taken centre stage ahead of domestic factors. The global news flows are expected to govern the market direction in the near term too, as the focus now may shift to the Eurozone as bail-out timelines and resultant discussions on certain economies may attain a high pitch during July. Domestically, we have been experiencing a good monsoon so far and that may help to support the rural consumption demand. Things are looking brighter on the inflation front with sustained improvement in the readings over the past few months; however a depreciating Rupee may hinder the probability on any immediate monetary easing plans by the central bank. The government also took a bold move of announcing the domestic gas price hike and hinted that more reforms like enhancing Foreign Direct Investment (FDI) limits in select sectors are on the anvil. These measures may help in improving on the twin deficit scenario (Current Account & Fiscal), however for the CAD to improve a stable currency may be an essential prerequisite. So effectively a saner global environment may act as a key to stable equity markets in the near term and till that time domestic equities are expected to trade in a range bound fashion. As a fund house we employ a bottom up stock selection strategy focusing on profitable firms available at attractive valuations and any stock market volatility may leave us with some good companies to buy into at the right valuations. We thus advise investors to remain invested in equities and use the systematic investment route to enter equities at such times of high volatility.Source: Bloomberg, for all data except where mentioned otherwise


3



9.5%

9.5%

9.7%

9.7%

9.6%

9.5%

9.4%

9.8%

10.0%

9.9%

9.5% 7.7%

7.2% 7.6%

7.7%

7.5%

7.6%

7.6% 7.5%

8.0% 8.1%

7.3% 7.2%

7.3% 7.3% 7.3%

5.7% 5.0%6.0%7.0%8.0%9.0%

10.0%11.0%

Jan/

11Fe

b/11

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/11

Apr

/11

May

/11

Jun/

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Wholesale Price Index Inflation (WPI)

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

6.7%

9.4%

5.3%

6.2%

9.5% 3.7%

3.4% 2.5%

-5.0%

6.0% 2.7%

1.0%

4.3%

-2.8% -1.3%

2.5%

-2.0% -0.1%

2.0%

-0.7%

8.4%

-1.0% -0.6%

2.5% 0.5%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

Apr

/11

May

/11

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11Ju

l/11

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/11

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/11

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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 (41.9%) which includes Financial sector reform- 34.4% and Oil & Gas Sector deregulation sub theme- 7.5%2.Infrastructure (25.3%) which includes Power- 10.4%, Construction– 10.9% and Logistics - 4.1%. 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. We are currently overweight on energy, financials, healthcare, information technology and neutral on consumer discretionary while being underweight other sectors.Review: HSBC MIP Regular and Savings PlansOur current exposure is 15.12% in HSBC MIP Regular Plan and 25.01% in HSBC MIP Savings Plan. Currently it is more biased towards large caps than mid or small caps.

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

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

Debt

Market Assessment

Domestic bond markets witnessed sell off across the curve on the back of Federal Reserve chairman Ben Bernanke indicating that the central bank’s $85bn-a-month asset purchases could slow down if economic data improved. Tapering of QE had a widespread impact across the global bond markets as US treasuries (10 year) hardened by over 50 bps since beginning of May 2013. Similar sell off was also witnessed on the INR which came off to historic lows of 60 against the USD. Global developments clouded the domestic macro outlook leading the RBI staying pat on the rates at the mid quarter review of monetary policy held on 17th June.

Economic Events and Data Impacting Debt Markets Key Highlights• Repo rate (rate at which RBI lends to banks), kept unchanged at 7.25%• Cash reserve ratio left unchanged (at 4.00%).Overall Assessment and OutlookGlobal economic activity continues to present a mixed picture. While the IMF has warned of non-trivial risks of global economy encountering a soft patch in the coming months, growth in the US and Japan is showing improvement. Growth in some emerging economies has been impacted by sluggish external demand and stalled domestic investment. Commodity prices have remained soft.Domestic GDP in Q4FY 2012-13 (of 4.8%) showed a marginal improvement over the previous quarter. Industrial production decelerated to 2.3% in April 2013. All constituents of industry have slowed, with a persistent contraction in mining activity. The onset of the monsoon has been strong and on time, which bodes well for the agri economy and food inflation going forward, should the pattern hold. Key to reviving growth is througha conducive environment for private investment. Headline inflation has eased for three months in a row, with all constituents, barring food prices, showing moderation. Elevated food inflation is keeping consumer price inflation at higher levels. Inflation outlook going forward will be determined by suppressed inflation being released through revisions in administered prices, including minimum support prices as well as recent depreciation of the rupee.

The RBI also noted the widening of the current account deficit due to surge in gold imports. Recent measures to curb gold imports could have led to a moderation in June 2013. While the current account deficit has widened, the INR has been negatively impacted by reversal of capital flows (which met the external financing) from a broad swath of emerging economies, swiftly amplifying risks to the outlook.Overall, the policy stance will be determined by how the growth and inflation trajectories and the balance of payments situation evolve in the months ahead. A “durable receding of inflation” could open up space for further easing.As widely expected, the RBI resisted from cutting policy rates given the increasing risks on the external sector and uncertainties around a pullback in the quantitative easing programs of other central banks. Improved confidence in the Government’s commitment to contain fiscal deficit is a positive; and as the external sector risks abate, we are likely to see the RBI ease monetary policy further.

IIP prints continue to remain range bound at lower levels

Index of Industrial production (IIP) growth eased to 2.0% (YoY in April 2013 from 3.4% in March 2013), below expectations. The negative surprise was largely due to the sharp fall of growth in capital and basic goods and smaller-than-expected growth in electricity output. IIP growth for March 2013 was revised upwards to 3.4% from 2.5% mainly on account of upward revision inthe manufacturing sector growth at 4.2% from 3.2% previously reported. It must be noted that the recent data such as the manufacturing Purchasing Managers Index (PMI) and auto production also suggest that domestic demand remains weak.

Core and WPI inflation print moderates further

WPI inflation eased to 4.70% (YoYin May 2013 from 4.89% in April 2013). A sharp fall in core inflation may considerably offset higher food inflation which rose to 7.6% (YoY in May 2013 from 6.3% in April 2013) led by an increase in meat, vegetable and manufactured food prices Core WPI inflation moderated to 2.4% (YoY from 2.8%), led by fall in the prices of basic metal products and non-metallic products. March 2013 WPI inflation was revised down to 5.65% from 5.96%.

Improvement in CAD

India’s first quarter2013 current account deficit(CAD) figures improved to a better-than-expected (USD18.1 bn) 3.6% of GDP, from (USD31.9 billion) 6.5% of GDP in the previous quarter. This was driven by a lower trade deficit, as exports increased and imports declined mainly led by lower non-oil and non-gold imports. Capital account data was mixed, as portfolio and FDI flows improved but the overall capital account balance reduced. While the quarter showed some improvement, the overall level of the current account deficit remains very high, at 4.8% of GDP in FY 2013. This is leading to a rise in external debt and a weak overall Balance of Payments (BoP) position. FY2013 CAD, however, worsened to a historic high of 4.8% of GDP, from 4.2% of GDP in FY2012.

Market Activity

Yields witnessed hardening

Sovereign yields maintained hardening bias through the month of June 2013 on the back of global developments leading to a pause in the rate cut by the RBI. Benchmark ten year yield issued at 7.16% in end May 2013 traded as high as 7.55% during the month of June 2013. One of the key drivers of the rally during the early part of this fiscal was the FII outflows. Federal Open Market Committee (FOMC) meet had a negative impact on emerging market flows as considerable outflows from the debt segment lead to sell off in gilts and corporate bond rates as well in forex markets.

Corporate curve remains inverted

Credit yields also mirrored the similar hardening in lines with the sovereign gilts. The impact on the duration curve was higher leading to widening of credit spreads at the medium – longer end of the curve. Shorter end of the curve witnessed selling pressure from foreign investors resulting in continuation of inverted curve.

No impact of advance tax outflows

Liquidity eased further during the month in spite of advance tax outflows. This was largely on back of continued government spending. Advance tax outflows failed to result in seasonal hardening of money market yields as investor demand were higher than supply.

Global Economic Scenario

Global economy

As on 20 June 2013 FOMC meet, while there was no change in monetary policy, the interpretation of the statement has triggered a global selloff in rates and most asset classes. In particular, whilst there was no alteration in the pace of asset purchases, markets interpreted the language to be more hawkish comparative to the previous statement. Whilst no mention of timing on alteration in asset purchases, the hawkish note was the highlight that downside risks to the outlook have diminished. Further to that, at his press conference, the Federal Reserve Chairman Bernanke indicated that the FOMC wishes to conclude the asset purchase program when the unemployment rate reaches 7.0% and to start tapering later this year if the unemployment rate remains on a downward trend.

Going ForwardAfter a steep rally in bonds since the onset of this fiscal, bond markets witnessed a major sell off over the last one month. We expect the rate markets to remain range bound in the near term on back of volatility in currency and supply pressure. Extent of easing in system liquidity might provide positive surprise on yields. As the RBI has bought more time to reduce rates further; low industrial growth, high lending rates, lower inflation, favorable monsoon, stable - lower oil prices and lower gold prices augur for further reduction in rates. We continue to favor maintaining duration in Bond / Flexi Debt Funds, albeit through corporate bonds as their spreads have recently widened and are relatively attractive. G-sec yields are likely to be under pressure as supply remains, while improved liquidity conditions might reduce expectations of Open Market Operations (OMO) in the near term. Short-Term Funds are likely to benefit from a steepening in the corporate bond yield curve in an improved liquidity scenario.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 Maruti Suzuki India 1,537.75 3.02%Tata Motors 1,195.53 2.35%Bajaj Auto 769.58 1.51%Banks ICICI Bank 3,747.63 7.36%HDFC Bank 2,477.15 4.87%Axis Bank 1,656.50 3.26%State Bank of India 1,563.04 3.07%Punjab National Bank 976.28 1.92%ING Vysya Bank 909.23 1.79%CementGrasim Industries 1,103.96 2.17%Shree Cement 700.08 1.38%Construction ProjectsLarsen & Toubro 1,548.69 3.04%Consumer Non DurablesI T C 3,567.85 7.01%Fertilisers Coromandel International 557.81 1.10%Finance HDFC 2,637.15 5.18%Power Finance Corporation 1,080.75 2.12%LIC Housing Finance 764.25 1.50%Media & EntertainmentSun TV Network 512.46 1.01%Minerals/Mining Coal India 907.65 1.78%Non Ferrous Metals Hindustan Zinc 1,458.85 2.87%Oil Oil & Natural Gas Corporation 2,648.80 5.21%Cairn India 1,450.00 2.85%Petroleum Products Reliance Industries 2,372.15 4.66%Pharmaceuticals Dr Reddy’s Laboratories 2,196.66 4.32%Power NTPC 1,006.25 1.98%Power Grid Corporation of India 556.50 1.09%Software Infosys 2,873.68 5.65%HCL Technologies 2,328.00 4.57%Tech Mahindra 1,377.96 2.71%Tata Consultancy Services 607.26 1.19%Telecom - Services Bharti Airtel 1,021.13 2.01%Total 94.54%

HSBC Equity Fund (HEF) June 2013

6


% to NetAssets

CBLOs 5,969.97 11.73%Other Equity Investments 463.42 0.91%Net Current Assets -3,656.79 -7.19%Total Net Assets as on 28 June 2013 50,887.16 100.00%

Asset AllocationAuto 6.88%Banks 22.26%Cement 3.55%Construction Projects 3.04%Consumer Non Durables 7.01%Fertilisers 1.10%Finance 8.81%Media & Entertainment 1.01%Minerals/Mining 1.78%Non - Ferrous Metals 2.87%Oil 8.05%Petroleum Products 4.66%Pharmaceuticals 4.32%Power 3.07%Software 14.12%Telecom - Services 2.01%Reverse Repos/CBLOs 11.73%Other Equity Investments 0.91%Net Current Assets -7.19%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 28.06.13)

` 100.5879

Fund Managers Tushar Pradhan & Neelotpal Sahai

SIP AvailableMinimumApplicationAmount

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

Exit Load@ NilStatistical Ratios

Standard Deviation 0.86%R-Squared 0.9622Beta (Slope) 0.9151Sharpe Ratio -0.0237Total Expense Ratio as on June 28, 2013

Regular 2.47%$ Direct Plan 1.75%$ Portfolio Turnover 0.60

$ Excludes service tax on Investment Management fees of 0.17% of Total Net Assets.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: 7.44% as on June 28, 2013.

HSBC Equity Fund (HEF) June 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 655.38 3.29%Tata Motors 562.60 2.83%Auto Ancillaries Bosch 633.35 3.18%Banks ICICI Bank 1,259.74 6.33%HDFC Bank 836.88 4.21%State Bank of India 518.15 2.60%Punjab National Bank 423.05 2.13%Bank of Baroda 401.91 2.02%Cement Shree Cements 630.07 3.17%Madras Cements 324.49 1.63%Construction ProjectsLarsen & Toubro 637.07 3.20%Consumer Non Durables I T C 1,297.40 6.52%McLeod Russel India 202.16 1.02%Finance HDFC 879.05 4.42%LIC Housing Finance 691.65 3.48%CRISIL 499.46 2.51%Power Finance Corporation 456.80 2.30%GasPetronet LNG 468.00 2.35%Industrial Capital GoodsCrompton Greaves 568.10 2.85%Industrial ProductsSupreme Industries 527.01 2.65%Minerals/Mining Gujarat Mineral Development Corporation 200.11 1.01%Non - Ferrous Metals Hindustan Zinc 202.46 1.02%Oil Oil & Natural Gas Corporation 599.29 3.01%PesticidesUnited Phosphorus 339.38 1.71%Petroleum Products Reliance Industries 780.65 3.92%Pharmaceuticals Divi's Laboratories 495.55 2.49%Dr Reddy’s Laboratories 443.77 2.23%Software Infosys 904.58 4.55%HCL Technologies 776.00 3.90%Tech Mahindra 635.88 3.20%Eclerx Services 586.33 2.95%Telecom - ServicesBharti Airtel 320.93 1.61%Textile ProductArvind 390.75 1.96%Total 96.22%

HSBC India Opportunities Fund (HIOF) June 2013

8


% to NetAssets

CBLOs 1,031.14 5.18%Other Equity Investments 437.57 2.20%Net Current Assets -715.78 -3.60%Total Net Assets as on 28 June 2013 19,900.91 100.00%

Asset AllocationAuto 6.12%Auto Ancillaries 3.18%Banks 17.28%Cement 4.80%Construction Projects 3.20%Consumer Non Durables 7.54%Finance 12.70%Gas 2.35%Industrial Capital Goods 2.85%Industrial Products 2.65%Minerals/Mining 1.01%Non - Ferrous Metals 1.02%Oil 3.01%Pesticides 1.71%Petroleum Products 3.92%Pharmaceuticals 4.72%Software 14.59%Telecom - Services 1.61%Textile Product 1.96%Reverse Repos/CBLOs 5.18%Other Equity Investments 2.20%Net Current Assets -3.60%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 28.06.13)

` 35.3069

Fund Manager Tushar Pradhan & Neelotpal Sahai

SIP AvailableMinimumApplication Amount

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




$ Excludes service tax on Investment Management fees of 0.19% of Total Net Assets.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: 7.44% as on June 28, 2013.

HSBC India Opportunities Fund (HIOF) June 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 312.45 4.46%Balkrishna Industries 101.47 1.45%Banks Dena Bank 341.67 4.87%The Jammu & Kashmir Bank 291.01 4.15%Allahabad Bank 225.25 3.21%State Bank of Bikaner and Jaipur 199.68 2.85%State Bank of Travancore 137.34 1.96%CementHil 304.00 4.34%Everest Industries 286.66 4.09%Consumer Durables Bata (India) 292.30 4.17%Hitachi Home & Life Solutions (India) 237.20 3.38%Piramal Glass 94.03 1.34%Consumer Non DurablesGujarat Ambuja Exports 309.51 4.41%Zydus Wellness 249.29 3.56%KRBL 191.32 2.73%Venky’s (India) 154.96 2.21%Godfrey Phillips (India) 149.03 2.13%McLeod Russel India 95.30 1.36%Lakshmi Energy & Foods 76.33 1.09%Industrial Capital GoodsBEML 98.37 1.40%Commercial Engineers & Body Builders Co. 91.37 1.30%Swelect Energy System 82.20 1.17%Industrial Products Diamond Power Infrastructure 149.47 2.13%FAG Bearings India 112.18 1.60%Polyplex Corporation 103.81 1.48%Minerals/Mining Gujarat Mineral Development Corporation 230.25 3.28%PesticidesUnited Phosphorous 354.31 5.05%PI Industries 340.93 4.86%Bayer Cropscience 111.45 1.59%PharmaceuticalsAlembic Pharmaceuticals 173.77 2.48%Software Polaris Software Lab 296.08 4.22%Nucleus Software Exports 113.87 1.62%Persistent Systems 110.40 1.57%Textile - CottonVardhman Textiles 189.49 2.70%Textile ProductsSiyaram Silk Mills 86.13 1.23%Textile - Synthetic Bombay Dyeing & Manufacturing Company 102.05 1.46%Transportation Gateway Distriparks 108.39 1.55%Total 98.45%

HSBC Midcap Equity Fund (HMEF) June 2013

10


% to NetAssets

CBLOs 7.98 0.11%Other Equity Investments 55.90 0.80%Net Current Assets 45.15 0.64%Total Net Assets as on 28 June 2013 7,012.33 100.00%

Asset AllocationAuto Ancillaries 5.90%Banks 17.04%Cement 8.42%Consumer Durables 8.89%Consumer Non Durables 17.48%Industrial Capital Goods 3.88%Industrial Products 5.21%Minerals/Mining 3.28%Pesticides 11.50%Pharmaceuticals 2.48%Software 7.42%Textile - Cotton 2.70%Textile Products 1.23%Textile - Synthetic 1.46%Transportation 1.55%Reverse Repos/CBLOs 0.11%Other Equity Investments 0.80%Net Current Assets 0.64%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 28.06.13)

` 15.18

Fund Manager Dhiraj SachdevSIP AvailableMinimumApplicationAmount

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




$ Excludes service tax on Investment Management fees of 0.20% of Total Net Assets.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: 7.44% as on June 28, 2013.

HSBC Midcap Equity Fund (HMEF) June 2013

11


Our exposure to midcap stocks in HSBC Midcap Equity Fund (HMEF) is 99.2425%

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 226.85 2.08%Auto Ancillaries Apollo Tyres 568.96 5.22%Banks The Jammu & Kashmir Bank 919.47 8.44%ICICI Bank 535.38 4.91%Dena Bank 506.05 4.64%The Karnataka Bank 375.37 3.44%Indian Bank 303.47 2.78%Union Bank of India 242.26 2.22%Allahabad Bank 219.17 2.01%United Bank of India 164.30 1.51%CementEverest Industries 328.45 3.01%JK Cement 139.32 1.28%ConstructionIRB Infrastructure Developers 163.37 1.50%National Buildings Construction Corporation 122.18 1.12%Construction ProjectsGammon Infrastructure Projects 137.62 1.26%Consumer Non DurablesGujarat Ambuja Exports 173.20 1.59%Finance Rural Electrification Corporation 481.80 4.42%Rane Holdings 218.75 2.01%GasGujarat State Petronet 115.20 1.06%Industrial Capital GoodsBharat Heavy Electricals 169.89 1.56%Industrial Products FAG Bearings India 445.70 4.09%Diamond Power Infrastructure 181.95 1.67%Polyplex Corporation 131.32 1.21%Minerals/MiningGujarat Mineral Development Corporation 299.08 2.74%Petroleum Products Hindustan Petroleum Corporation 546.70 5.02%Indian Oil Corporation 157.75 1.45%Power Reliance Infrastructure 305.55 2.80%JSW Energy 234.90 2.16%ServicesAditya Birla Nuvo 452.94 4.16%Software Polaris Financial Technology 301.58 2.77%Textile - Cotton Vardhman Textiles 269.95 2.48%Textile - Synthetic Bombay Dyeing & Manufacturing Company 283.13 2.60%TransportationGateway Distriparks 443.01 4.07%Total 93.28%

HSBC Progressive Themes Fund (HPTF) June 2013

12


% to NetAssets


Asset AllocationAuto 2.08%Auto Ancillaries 5.22%Banks 29.97%Cement 4.29%Construction 2.62%Construction Projects 1.26%Consumer Non Durables 1.59%Finance 6.43%Gas 1.06%Industrial Capital Goods 1.56%Industrial Products 6.97%Minerals/Mining 2.74%Petroleum Products 6.46%Power 4.96%Services 4.16%Software 2.77%Textile - Cotton 2.48%Textile - Synthetic 2.60%Transportation 4.07%Reverse Repos/CBLOs 0.37%Other Equity Investments 6.00%Net Current Assets 0.35%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 28.06.13)

` 8.9959


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





HSBC Progressive Themes Fund (HPTF) June 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 1,003.12 5.73%Auto Ancillaries Amara Raja Batteries 553.76 3.17%MRF 426.30 2.44%Motherson Sumi Systems 340.81 1.95%Banks ICICI Bank 872.66 4.99%HDFC Bank 758.21 4.33%Karur Vysya Bank 565.70 3.23%ING Vysya Bank 547.50 3.13%Federal Bank 415.03 2.37%State Bank of India 390.76 2.23%Yes Bank 359.66 2.06%Cement Shree Cements 1,211.75 6.93%Madras Cements 298.23 1.70%Consumer DurablesPC Jeweller 303.92 1.74%Havells India 231.33 1.32%Consumer Non DurablesI T C 702.21 4.01%McLeod Russel India 542.39 3.10%Hindustan Unilever 427.16 2.44%Jyothi Laboratories 224.27 1.28%Ferrous Metals Jindal Steel and Power 201.82 1.15%Fertilisers Coromandel International 317.62 1.82%Finance HDFC 918.61 5.25%LIC Housing Finance 576.83 3.30%GasPetronet LNG 324.48 1.85%Industrial Capital GoodsCrompton Greaves 355.72 2.03%Industrial ProductsSupreme Industries 630.22 3.60%OilOil & Natural Gas Corporation 496.65 2.84%Pharmaceuticals Ipca Laboratories 431.61 2.47%Lupin 386.82 2.21%Divi's Laboratories 375.26 2.14%Software Tata Consultancy Services 771.22 4.41%Tech Mahindra 436.64 2.50%Telecom - Services Bharti Airtel 295.83 1.69%Total 95.42%

HSBC Tax Saver Equity Fund (HTSF) June 2013

14

Date of Allotment 05-Jan-07Benchmark S&P BSE 200NAV (Growth) per unit(as on 28.06.13)

` 15.8759

Fund Manager Aditya KhemaniSIP AvailableMinimumApplicationAmount

` 500(Lumpsum & SIP)






% to NetAssets


Asset AllocationAuto 5.73%Auto Ancillaries 7.55%Banks 22.35%Cement 8.63%Consumer Durables 3.06%Consumer Non Durables 10.84%Ferrous Metals 1.15%Fertilisers 1.82%Finance 8.55%Gas 1.85%Industrial Capital Goods 2.03%Industrial Products 3.60%Oil 2.84%Pharmaceuticals 6.82%Software 6.90%Telecom - Services 1.69%Reverse Repos/CBLOs 0.88%Other Equity Investments 2.59%Net Current Assets 1.11%Total Net Assets 100.00%





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

HSBC Tax Saver Equity Fund (HTSF) June 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 119.28 2.50%Maruti Suzuki India 99.95 2.09%Auto Ancillaries Amara Raja Batteries 102.72 2.15%MRF 96.95 2.03%Bosch 90.48 1.89%Motherson Sumi System 81.89 1.71%Banks ICICI Bank 394.04 8.25%HDFC Bank 289.22 6.06%Karur Vysya Bank 157.12 3.29%Bank of Baroda 155.02 3.25%The Jammu & Kashmir Bank 127.20 2.66%Federal Bank 90.04 1.89%Allahabad Bank 64.87 1.36%Indian Bank 57.48 1.20%CementGrasim Industries 220.79 4.62%Shree Cements 116.68 2.44%Madras Cements 68.39 1.43%Construction ProjectsLarsen & Toubro 137.27 2.87%Consumer Non DurablesI T C 334.08 7.00%McLeod Russel India 102.52 2.15%FertilisersCoromandel International 68.79 1.44%Industrial Products Supreme Industries 101.12 2.12%Minerals/MiningNMDC 63.27 1.33%Gujarat Mineral Development Corporation 57.78 1.21%Non - Ferrous Metals Hindustan Zinc 138.65 2.90%Oil Oil & Natural Gas Corporation 206.94 4.33%Petroleum Products Reliance Industries 134.57 2.82%Pharmaceuticals Lupin 156.29 3.27%Divi's Laboratories 131.82 2.76%Torrent Pharmaceuticals 105.25 2.20%Software Infosys 215.65 4.52%Telecom - Services Bharti Airtel 90.44 1.89%Total 91.65%

HSBC Unique Opportunities Fund (HUOF) June 2013

16


% to NetAssets


Asset AllocationAuto 4.59%Auto Ancillaries 7.79%Banks 27.96%Cement 8.50%Construction Projects 2.87%Consumer Non Durables 9.14%Fertilisers 1.44%Industrial Products 2.12%Minerals/Mining 2.54%Non - Ferrous Metals 2.90%Oil 4.33%Petroleum Products 2.82%Pharmaceuticals 8.24%Software 4.52%Telecom - Services 1.89%Reverse Repos/CBLOs 3.46%Other Equity Investments 1.43%Net Current Assets 3.46%Total Net Assets 100.00%

Date of Allotment 21-Mar-07Benchmark S&P BSE 200NAV (Growth) per unit(as on 28.06.13)

` 10.5454

Fund Manager Gaurav Mehrotra & Amaresh Mishra


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


Standard Deviation 0.87%R-Squared,m 0.932Beta (Slope) 0.9053Sharpe Ratio -0.0278Total Expense Ratio as on June 28, 2013



HSBC Unique Opportunities Fund (HUOF) June 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

AutoMaruti Suzuki India 461.33 3.75%

Tata Motors 253.17 2.06%

Mahindra & Mahindra 194.12 1.58%

Bajaj Auto 134.68 1.09%

Banks ICICI Bank 963.68 7.83%

HDFC Bank 602.55 4.90%

Axis Bank 331.30 2.69%

Punjab National Bank 325.43 2.65%

State Bank of India 253.99 2.07%

CementGrasim Industries 275.99 2.24%

Construction ProjectsLarsen & Toubro 563.16 4.58%

Consumer Non DurablesI T C 843.31 6.86%

Hindustan Unilever 292.58 2.38%

United Spirits 130.07 1.06%

Finance HDFC 641.71 5.22%

IDFC 192.23 1.56%

Minerals/Mining NMDC 369.08 3.00%

Coal India 302.55 2.46%

Non - Ferrous Metals Hindustan Zinc 230.06 1.87%

Oil Oil & Natural Gas Corporation 331.10 2.69%

Cairn India 290.00 2.36%

Petroleum Products Reliance Industries 560.69 4.56%

Pharmaceuticals Dr Reddy’s Laboratories 332.83 2.71%

Ipca Laboratories 229.32 1.86%

Sun Pharmaceutical Industries 202.31 1.64%

PowerPower Grid Corporation of India 333.90 2.71%

NTPC 143.75 1.17%

Services Aditya Birla Nuvo 170.52 1.39%

Software HCL Technologies 698.40 5.68%

Infosys 674.69 5.49%

Telecom - Services Bharti Airtel 189.64 1.54%

Total 93.64%

HSBC Dynamic Fund (HDF) June 2013

18


% to NetAssets

CBLOs 549.01 4.46%Other Equity Investments 319.04 2.59%Net Current Assets -86.18 -0.70%Total Net Assets as on 28 June 2013 12,299.96 100.00%

Asset AllocationAuto 8.48%Banks 20.14%Cement 2.24%Construction Projects 4.58%Consumer Non Durables 10.29%Finance 6.78%Minerals/Mining 5.46%Non - Ferrous Metals 1.87%Oil 5.05%Petroleum Products 4.56%Pharmaceuticals 6.22%Power 3.88%Services 1.39%Software 11.16%Telecom - Services 1.54%Reverse Repos/CBLOs 4.46%Other Equity Investments 2.59%Net Current Assets -0.70%Total Net Assets 100.00%

Date of Allotment 24-Sep-07Benchmark S&P BSE 200NAV (Growth) per unit(as on 28.06.13)

` 9.8625

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) June 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 28.06.13)

` 10.0383

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


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



Regular 1.86%$ 2.50% (inclusive of underlying scheme’s expenses) Direct Plan 1.15%$ Portfolio Turnover 0.40


Asset AllocationOverseas Mutual Fund 94.25%Reverse Repos/CBLOs 6.24%Net Current Assets -0.50%Total Net Assets 100.00%


% to NetAssets

Overseas Mutual FundHSBC GIF Glob Emerg Mkts Eq S1 Dis 1,591.05 94.25%CBLOs 105.41 6.24%Net Current Assets -8.36 -0.50%Total Net Assets as on 28 June 2013 1,688.09 100.00%

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) June 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 80.24 6.26%Majestic Auto 22.84 1.78%Balkrishna Industries 14.35 1.12%Banks State Bank of Travancore 73.34 5.72%State Bank of Bikaner and Jaipur 65.20 5.09%The Karnataka Bank 34.74 2.71%Cement Orient Cement 112.47 8.77%Orient Paper & Industries 15.63 1.22%Chemicals India Glycols 43.53 3.40%Consumer Durables IFB Industries 45.05 3.51%Hitachi Home & Life Solutions (India) 42.76 3.34%Greenply Industries 19.72 1.54%Consumer Non DurablesGujarat Ambuja Exports 75.21 5.87%KRBL 53.05 4.14%Globus Spirits 51.69 4.03%Lakshmi Energy and Foods 38.55 3.01%FinanceRane Holdings 103.43 8.07%Industrial Capital GoodsIndo Tech Transformers 30.57 2.38%Sanghvi Movers 30.35 2.37%TIL 25.02 1.95%Industrial Products Ador Welding 51.03 3.98%PesticidesPI Industries 18.44 1.44%Software Nucleus Software Exports 118.07 9.21%Textile - Products SRF 20.24 1.58%Textile - Cotton RSWM 82.79 6.46%Total 98.93%

HSBC Small Cap Fund (HSCF) June 2013

21


% to NetAssets

CBLOs 69.87 5.45%Other Equity Investments 9.76 0.76%Net Current Assets -65.97 -5.15%Total Net Assets as on 28 June 2013 1,281.97 100.00%

Asset AllocationAuto Ancillaries 9.16%Banks 13.52%Cement 9.99%Chemicals 3.40%Consumer Durables 8.39%Consumer Non Durables 17.04%Finance 8.07%Industrial Capital Goods 6.70%Industrial Products 3.98%Pesticides 1.44%Software 9.21%Textile - Products 1.58%Textile - Cotton 6.46%Reverse Repos/CBLOs 5.45%Other Equity Investments 0.76%Net Current Assets -5.15%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 28.06.13)

` 8.4879


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




$ Excludes service tax on Investment Management fees of 0.20% of Total Net Assets.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: 7.44% as on June 28, 2013.

HSBC Small Cap Fund (HSCF) June 2013

22


Our exposure to small cap stocks in HSBC Small Cap Fund (HSCF) is 90.9218%

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 28.06.13)

` 8.5992

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


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



Regular 1.86%$ 2.50% (inclusive of underlying scheme’s expenses) Direct Plan 1.15%$ Portfolio Turnover 0.34


Asset AllocationOverseas Mutual Fund 98.89%Reverse Repos/CBLOs 2.31%Net Current Assets -1.19%Total Net Assets 100.00%


% to NetAssets

Overseas Mutual FundHSBC GIF BRAZIL EQUITY S3D 14,188.26 98.89%CBLOs 330.86 2.31%

Net Current Assets -171.03 -1.19%

Total Net Assets as on 28 June 2013 14,348.09 100.00%

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) June 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 ExperienceTushar Pradhan Chief Investment Officer MBA (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 B.Com., ACA, Grad CWA, Diploma in Foreign Trade Management (DFTM)

Experience:Over 16 years experience in Equity Research and Fund Management. This involved analysing various sectors and companies and presenting investment ideas to fund man-agers in India and abroad.

l HSBC Asset Management (India) Private Ltd Senior Fund Manager from December 2009 to present l HSBC Asset Management (India) Private Ltd 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 June 2013

24

l

Neelotpal Sahai B.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 MehrotraPost Graduate Diploma in Business Management, Bachelor of EngineeringExperience: Over 6 years experience in research. HSBC Asset Management (India) Private Ltd Associate Vice president from September 2007 to present 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 KhemaniB.Com. (Hons.), Post Graduate Diploma in Business ManagementExperience: Over 7 years experience in research. HSBC Asset Management (India) Private Ltd Assistant Fund Manager, Equities from February 2009 to present Associate Vice President - Investment Management from October 2007 to February 2009 SBI Funds Management India Private Ltd Senior Manager - Equity Research from March 2007 to September 2007 Prudential ICICI Asset Management Company India Private Ltd Assistant Manager - Equity Research from December 2005 to February 2007 Morgan Stanley Advantage Services India Private Ltd Research Associate from May 2005 to November 2005

Amaresh Mishra Post Graduate Diploma in Business Manager Management Bachelor of Engineering (Chemical) Experience: Over 7 years of experience in Equities & Sales l HSBC Asset Management (India) Private Ltd Assistant Fund Manager, from April 2012 till date l HSBC Asset Management (India) Private Ltd Associate Vice President - Investment Management from April 2008 to March 2012 l HSBC Asset Management (India) Private Ltd Associate Vice President - Equities from October 2007 to March 2008 l HSBC Asset Management (India) Private Ltd 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 2002

Piyush Harlalka M.B.A, (Finance), C.A., C.S. Experience:Over 6 years of experience in Fund Management & Research l HSBC Asset Management (India) Private Ltd Vice President – Fixed Income from April 2012 till date l HSBC Asset Management (India) Private Ltd Associate Vice President-Fixed Income from October 2010 till March 2012 l HSBC Asset Management (India) Private Ltd Associate Vice President - Investment Management, PMS, from April 2008 to October 2010 l HSBC Asset Management (India) Private Ltd Research Analyst from July 2007 to March 2008 l Batlivala & Karanai Securities Pvt. Ltd., Research Analyst from April 2006 to June 2007

Fund Managers - Equity June 2013

25

l

l

l

l

l

l

l

Funds Managed by Tushar Pradhan & Neelotpal Sahai.

Comparative Performance of Equity Schemes June 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

Money Market InstrumentsCertificate of DepositKotak Mahindra Bank 1,498.65 4.87% CRISIL A1+Corporate/PSU DebtCorporate Bonds / DebenturesShriram Transport Finance Company 1,801.61 5.85% CRISIL AAHDFC 1,515.58 4.92% CRISIL AAABajaj Finance 1,512.13 4.91% [ICRA]AA+Rural Electrification Corporation 1,206.91 3.92% CARE AAAPower Finance Corporation 1,013.44 3.29% CRISIL AAALIC Housing Finance 1,007.07 3.27% CRISIL AAAPower Grid Corporation of India 966.67 3.14% CRISIL AAAPower Finance Corporation 859.90 2.79% CRISIL AAANABARD 818.55 2.66% CRISIL AAANABARD 712.08 2.31% CRISIL AAAUnion Bank of India 512.88 1.67% CRISIL AAAPower Finance Corporation 509.85 1.66% CRISIL AAAHDFC 508.33 1.65% CRISIL AAATata Sons 507.49 1.65% CRISIL AAALIC Housing Finance 503.62 1.64% CRISIL AAAPower Finance Corporation 459.79 1.49% CRISIL AAAShriram Transport Finance Company 300.68 0.98% CRISIL AANABARD 205.02 0.67% CRISIL AAABank of Baroda 202.17 0.66% CRISIL AAANational Housing Bank 100.16 0.33% Fitch AAA (ind)Rural Electrification Corporation 96.72 0.31% CRISIL AAAGovernment Securities8.12% GOI RED 10-Dec-2020 1,934.76 6.28% Sovereign8.20% GOI RED 24-Sep-2025 860.64 2.80% Sovereign7.16% GOI RED 20-May-2023 686.42 2.23% Sovereign8.10% Tamil Nadu SDL RED 08-May-2023 342.03 1.11% Sovereign8.07% GOI RED 03-Jul-2017 81.21 0.26% Sovereign7.28% GOI RED 03-Jun-2019 54.23 0.18% SovereignEquitiesListed EquityShree Cements 723.32 2.35%ICICI Bank 517.17 1.68%Maruti Suzuki India 473.63 1.54%HDFC 421.94 1.37%Amara Raja Batteries 397.35 1.29%ITC 332.46 1.08%HDFC Bank 293.44 0.95%Tata Consultancy Services 249.36 0.81%IPCA Laboratories 248.98 0.81%Grasim Industries 248.39 0.81%McLeod Russel India 236.35 0.77%MRF 232.67 0.76% N.ALIC Housing Finance 221.63 0.72%Karur Vysya Bank 202.56 0.66%Motherson Sumi Systems 185.06 0.60%Oil & Natural Gas Corporation 182.11 0.59%Supreme Industries 182.01 0.59%Petronet LNG 168.37 0.55%Havells India 161.76 0.53%Divi's Laboratories 158.69 0.52%Orient Cement 149.68 0.49%Tech Mahindra 148.37 0.48%NMDC 146.58 0.48%Cadila Healthcare 146.47 0.48%Hindustan Unilever 146.29 0.48%Hindustan Zinc 141.11 0.46%Crompton Greaves 139.84 0.45%Bharti Airtel 130.70 0.42%

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

29

Date of Allotment 24-Feb-04Benchmark CRISIL MIP

Blended IndexNAV (Growth) per unit(as on 28.06.13)

` 22.9683

Average Maturity of Portfolio

49.18 months

Modified Durationof Portfolio

35.03 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 June 28, 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 AllocationCorporate/ PSU Debt 50.71%Equity 25.01%Government Securities 12.86%Money Market Instruments 4.87%Cash Equivalents 3.77%Net Current Assets 2.78%Total Net Assets 100.00%

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Coromandel International 128.17 0.42%Punjab National Bank 103.49 0.34%Asian Paints 81.14 0.26%PC Jeweller 80.70 0.26%Nestle India 75.24 0.24% N.ASanghvi Movers 74.79 0.24%Jindal Steel & Power 72.41 0.24%The Federal Bank 50.80 0.17%Hindustan Dorr-Oliver 26.78 0.09%Orient Paper & Industries 20.80 0.07%Zero Coupon BondsHDFC 291.70 0.95% CRISIL AAATotal 93.45%Cash EquivalentsCBLOs 1,159.35 3.77%Net Current Assets 855.67 2.78%Total Net Assets as on 28 June 2013 30,785.90 100.00%

Rating ProfileAAA 43.84%AA+/ AA-/ AA 11.74%Sovereign 12.86%Equity 25.01%Reverse Repo/CBLOs 3.77%Net Current Assets 2.78%Total Net Assets 100.00%

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

30





HSBC MIP - Savings Plan - Monthly Dividend26-Apr-13 0.05256 0.04478 12.349231-May-13 0.05065 0.04851 12.554028-Jun-13 0.05065 0.04851 12.2797HSBC MIP - Savings Plan - Monthly Dividend - Direct Plan26-Apr-13 0.05256 0.04478 12.385631-May-13 0.05065 0.04851 12.597628-Jun-13 0.05065 0.04851 12.3276HSBC 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

Money Market InstrumentsCertificate of DepositKotak Mahindra Bank 999.10 5.48% CRISIL A1+Corporate/PSU DebtCorporate Bonds / DebenturesHDFC 1,010.38 5.54% CRISIL AAABajaj Finance 1,008.09 5.53% [ICRA]AA+Power Grid Corporation of India 966.67 5.30% CRISIL AAANABARD 820.08 4.50% CRISIL AAALIC Housing Finance 805.65 4.42% CRISIL AAARural Electrification Corporation 804.61 4.41% CARE AAAPower Finance Corporation 709.41 3.89% CRISIL AAAShriram Transport Finance Company 700.63 3.84% CRISIL AAUnion Bank of India 512.88 2.81% CRISIL AAAPower Finance Corporation 509.85 2.80% CRISIL AAATata Sons 507.49 2.78% CRISIL AAALIC Housing Finance 503.62 2.76% CRISIL AAAPower Finance Corporation 404.66 2.22% CRISIL AAAPower Finance Corporation 306.53 1.68% CRISIL AAANABARD 305.18 1.67% CRISIL AAANABARD 204.64 1.12% CRISIL AAANational Housing Bank 200.31 1.10% Fitch AAA (ind)Bank of Baroda 151.63 0.83% CRISIL AAAGovernment Securities8.12% GOI RED 10-Dec-2020 964.82 5.29% Sovereign8.20% GOI RED 24-Sep-2025 636.35 3.49% Sovereign7.16% GOI RED 20-May-2023 294.18 1.61% Sovereign8.10% Tamil Nadu SDL RED 08-May-2023 241.43 1.32% Sovereign8.07% GOI RED 03-Jul-2017 182.73 1.00% Sovereign7.28% GOI RED 03-Jun-2019 29.58 0.16% SovereignEquitiesListed EquityICICI Bank 182.03 1.00%ITC 180.01 0.99%Maruti Suzuki India 170.18 0.93%Shree Cements 165.92 0.91%HDFC 131.86 0.72%Amara Raja Batteries 118.43 0.65%HDFC Bank 115.63 0.63%Tata Consultancy Services 102.48 0.56%Supreme Industries 94.75 0.52%IPCA Laboratories 91.73 0.50%McLeod Russel India 79.71 0.44% N.A.LIC Housing Finance 76.43 0.42%MRF 76.26 0.42%Yes Bank 76.08 0.42%Petronet LNG 74.13 0.41%Bharti Airtel 71.77 0.39%Crompton Greaves 65.55 0.36%Karur Vysya Bank 62.88 0.34%Tech Mahindra 60.41 0.33%Infosys 60.22 0.33%Motherson Sumi Systems 59.79 0.33%Grasim Industries 57.96 0.32%Oil & Natural Gas Corporation 56.29 0.31%Divi's Laboratories 52.90 0.29%Havells India 51.47 0.28%Hindustan Zinc 51.13 0.28%

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

31

Date of Allotment 24-Feb-04Benchmark CRISIL MIP

Blended IndexNAV (Growth) per unit(as on 28.06.13)

` 20.1813


52.69 months


37.51 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 June 28, 2013

Regular 2.38%$ Direct Plan 1.83%$ $ Excludes service tax on Investment Management fees of 0.19% of Total Net Assets.@ Effective from March 1, 2013 for prospective investments.

Asset AllocationCorporate/ PSU Debt 60.42%Equity 15.12%Government Securities 12.88%Money Market Instruments 5.48%Cash Equivalents 3.28%Net Current Assets 2.82%Total Net Assets 100.00%

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Hindustan Unilever 50.91 0.28%Jindal Steel & Power 39.14 0.21%NMDC 39.02 0.21%Cadila Healthcare 38.67 0.21%Orient Cement 37.86 0.21%The Federal Bank 34.30 0.19% N.A.Asian Paints 33.38 0.18%Nestle India 30.58 0.17%Punjab National Bank 29.29 0.16%PC Jeweller 17.18 0.09%Hindustan Dorr-Oliver 8.03 0.04%Sanghvi Movers 6.86 0.04%Orient Paper & Industries 5.26 0.03%Zero Coupon BondsHDFC 583.40 3.20% CRISIL AAATotal 93.90%Cash EquivalentsCBLOs 597.95 3.28%Net Current Assets 513.85 2.82%Total Net Assets as on 28 June 2013 18,232.12 100.00%

Rating ProfileAAA 56.53%AA+/ AA-/ AA 9.37%Sovereign 12.88%Equity 15.12%Reverse Repo/CBLOs 3.28%Net Current Assets 2.82%Total Net Assets 100.00%

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

32





HSBC MIP - Regular Plan - Monthly Dividend26-Apr-13 0.05256 0.04478 11.386731-May-13 0.05065 0.04851 11.560528-Jun-13 0.05065 0.04851 11.3258HSBC 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 26.05 0.21% CRISIL AAA (SO)

Money Market InstrumentsCertificate of DepositCorporation Bank 493.12 3.88% CRISIL A1+Corporate/PSU DebtCorporate Bonds / DebenturesIndian Railway Finance Corporation 1,158.33 9.12% CRISIL AAAState Bank of India 706.18 5.56% CRISIL AAARural Electrification Corporation 653.74 5.14% CARE AAAPower Grid Corporation of India 559.65 4.40% CRISIL AAAExport Import Bank of India 510.23 4.02% CRISIL AAAHDFC 505.19 3.98% CRISIL AAAHDFC 493.68 3.89% CRISIL AAAPower Finance Corporation 304.03 2.39% CRISIL AAARural Electrification Corporation 241.80 1.90% CRISIL AAAPower Finance Corporation 204.35 1.61% CRISIL AAAPower Finance Corporation 202.33 1.59% CRISIL AAABajaj Finance 201.82 1.59% [ICRA]AA+LIC Housing Finance 201.41 1.59% CRISIL AAAShriram Transport Finance Company 200.18 1.58% CRISIL AAUnion Bank of India 102.58 0.81% CRISIL AAANABARD 102.32 0.81% CRISIL AAANABARD 101.73 0.80% CRISIL AAABank of Baroda 50.54 0.40% CRISIL AAAGovernment Securities8.12% GOI RED 10-Dec-2020 2,247.82 17.69% Sovereign8.20% GOI RED 24-Sep-2025 1,137.09 8.95% Sovereign7.16% GOI RED 20-May-2023 490.30 3.86% Sovereign8.07% GOI RED 03-Jul-2017 314.70 2.48% Sovereign8.25% Andhra Pradesh SDL RED 25-Apr-2023 218.36 1.72% Sovereign8.10% Tamil Nadu SDL RED 08-May-2023 171.01 1.35% Sovereign8.30% GOI RED 31-Dec-2042 52.71 0.41% Sovereign7.63% West Bengal SDL RED 22-May-2023 38.84 0.31% Sovereign7.28% GOI RED 03-Jun-2019 29.58 0.23% Sovereign5.59% GOI RED 04-Jun-2016 0.38 0.00% SovereignTotal 92.23%Cash EquivalentsCBLOs 4.73 0.04%Reverse Repos 707.63 5.57%Net Current Assets 274.87 2.16%Total Net Assets as on 28 June 2013 12,707.30 100.00%

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

33

Date of Allotment 10-Dec-02Benchmark CRISIL Composite

Bond Fund IndexNAV (Growth) per unit(as on 28.06.13)

` 20.9553


79.82 months


53.95 months

Yield To Maturity* 8.16%Fund Manager Ruchir Parekh &

Sanjay ShahSIP AvailableMinimumApplicationAmount

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

Exit Load@ NilTotal Expense Ratio as on June 28, 2013 Regular 1.85%$

Direct Plan 1.10%$

$ Excludes service tax on Investment Management fees of 0.12% of Total Net Assets.@ Effective from March 1, 2013 for prospective investments.* Based on invested Amount

Asset AllocationCorporate / PSU Debt 51.15%Government Securities 36.99%Cash Equivalents 5.61%Money Market Instruments 3.88%Net Current Assets 2.16%Securitised Debt 0.21%





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 52.07%AA+/ AA-/ AA 3.16%Sovereign 36.99%Reverse Repos/ CBLOs 5.61%Net Current Assets 2.16%

HSBC Income Fund - Investment Plan (HIF-IP) June 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 Mysore 4,751.06 3.94% [ICRA]A1+Vijaya Bank 2,479.67 2.06% CARE A1+State Bank of Patiala 2,470.20 2.05% [ICRA]A1+Punjab National Bank 2,409.22 2.00% CARE A1+Corporation Bank 2,408.82 2.00% CRISIL A1+Central Bank of India 2,405.74 2.00% CARE A1+Andhra Bank 2,368.56 1.97% CARE A1+UCO Bank 2,366.45 1.96% CRISIL A1+IDBI Bank 2,361.16 1.96% CRISIL A1+Punjab & Sind Bank 2,323.76 1.93% [ICRA]A1+United Bank of India 2,318.85 1.92% CARE A1+Bank of Maharashtra 1,990.20 1.65% CRISIL A1+State Bank of Patiala 1,932.83 1.60% [ICRA]A1+Oriental Bank of Commerce 1,927.12 1.60% CRISIL A1+Central Bank of India 1,705.69 1.42% CARE A1+Andhra Bank 1,656.95 1.37% CARE A1+IndusInd Bank 989.14 0.82% CRISIL A1+Kotak Mahindra Bank 930.29 0.77% CRISIL A1+Oriental Bank of Commerce 428.59 0.36% CRISIL A1+ICICI Bank 75.44 0.06% [ICRA]A1+Yes Bank 65.95 0.05% [ICRA]A1+Commercial PaperSundaram Finance Ltd 1,997.69 1.66% [ICRA]A1+JM Financial Products Ltd 784.86 0.65% CRISIL A1+Kotak Mahindra Prime Ltd 262.34 0.22% CRISIL A1+Corporate/PSU Debt

Corporate Bonds / DebenturesRural Electrification Corporation 5,930.94 4.92% CRISIL AAARural Electrification Corporation 4,727.08 3.92% CARE AAAPower Finance Corporation 4,078.77 3.38% CRISIL AAALIC Housing Finance 4,028.92 3.34% CRISIL AAAPower Finance Corporation 3,547.04 2.94% CRISIL AAAShriram Transport Finance Company 3,026.47 2.51% CRISIL AAShriram Transport Finance Company 3,022.47 2.51% CRISIL AALIC Housing Finance 2,853.05 2.37% CRISIL AAARural Electrification Corporation 2,553.61 2.12% CRISIL AAAHDFC 2,541.67 2.11% CRISIL AAATata Sons 2,537.43 2.11% CRISIL AAAPower Finance Corporation 2,535.60 2.10% CRISIL AAAHDFC 2,533.21 2.10% CRISIL AAAHDFC 2,532.71 2.10% CRISIL AAAHDFC 2,527.25 2.10% CRISIL AAAExport Import Bank of India 2,523.26 2.09% CRISIL AAABajaj Finance 2,522.80 2.09% [ICRA]AA+Bajaj Finance 2,520.21 2.09% [ICRA]AA+National Housing Bank 2,478.24 2.06% CRISIL AAAShriram Transport Finance Company 2,204.97 1.83% CRISIL AAShriram Transport Finance Company 2,001.79 1.66% CRISIL AAExport Import Bank of India 1,543.45 1.28% CRISIL AAAPower Grid Corporation of India 1,011.43 0.84% CRISIL AAAHDFC 1,010.38 0.84% CRISIL AAARural Electrification Corporation 1,002.54 0.83% CARE AAAPower Finance Corporation 992.34 0.82% CRISIL AAA

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

35

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


` 20.0468


22.43 months


17.90 months



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

Exit Load@ Nil

Total Expense Ratio as on June 28, 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.

@ 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 60.32%Money Market Instruments 36.01%Cash Equivalents 1.16%Net Current Assets 2.51%

Rating ProfileAAA 82.03%AA+/ AA-/ AA 14.30%Reverse Repos/ CBLOs 1.16%Net Current Assets 2.51%





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) June 2013

36

National Housing Bank 701.10 0.58% Fitch AAA (ind)NABARD 569.66 0.47% CRISIL AAAShriram Transport Finance Company 503.28 0.42% CRISIL AATata Capital Financial Services 310.01 0.26% CRISIL AA+Export Import Bank of India 121.99 0.10% CRISIL AAAZero Coupon BondsTata Capital Financial Services 1,126.87 0.93% [ICRA]AA+HDFC 583.40 0.48% CRISIL AAATotal 96.33%Cash EquivalentsCBLOs 83.77 0.07%Reverse Repos 1,317.55 1.09%Net Current Assets 3,022.48 2.51%Total Net Assets as on 28 June 2013 1,20,538.28 100.00%


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 DepositAndhra Bank 2,483.58 14.71% CARE A1+Indian Bank 2,086.25 12.36% Fitch A1+State Bank of Hyderabad 2,076.20 12.30% [ICRA]A1+IndusInd Bank 1,483.70 8.79% CRISIL A1+Commercial PaperJindal Power 1,987.93 11.78% CARE A1+Gruh Finance 1,982.73 11.74% CRISIL A1+Tata Motors Finance 1,979.57 11.73% [ICRA]A1+JM Financial Products 1,177.30 6.97% CRISIL A1+Kotak Mahindra Prime 594.96 3.52% CRISIL A1+Aditya Birla Finance 499.54 2.96% [ICRA]A1+Total 96.86%Cash EquivalentsCBLOs 4.05 0.02%Reverse Repos 606.01 3.59%Net Current Assets -79.30 -0.47%Total Net Assets as on 28 June 2013 16,882.53 100.00%

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

June 2013

37

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

IndexNAV (Growth) per unit(as on 28.06.13)

` 18.7105


1.32 months


1.22 months

Yield To Maturity* 8.20%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 June 28, 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.@ 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 96.86%Cash Equivalents 3.61%Net Current Assets -0.47%





HSBC Floating Rate Fund - Long Term Plan - Regular Option - Monthly Dividend26-Apr-13 0.06026 0.05134 10.068831-May-13 0.05262 0.05040 10.067528-Jun-13 0.04134 0.03959 10.0531HSBC Floating Rate Fund - Long Term Plan - Monthly Dividend - Direct Plan28-Jun-13 0.05242 0.05021 10.2014HSBC Floating Rate Fund - Long Term Plan - Institutional Option - Monthly Dividend28-Dec-12 0.05668 0.04858 10.198224-Jan-13 0.05438 0.04661 10.196122-Feb-13 0.04970 0.04260 10.1876

Rating ProfileAAA 96.86%Reverse Repos/ CBLOs 3.61%Net Current Assets -0.47%

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

June 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 DepositCanara Bank 4,962.82 4.43% CRISIL A1+IndusInd Bank 4,962.15 4.43% CRISIL A1+Axis Bank 4,959.14 4.43% CRISIL A1+Oriental Bank of Commerce 4,950.14 4.42% CRISIL A1+Allahabad Bank 4,946.70 4.42% [ICRA]A1+Kotak Mahindra Bank 4,946.42 4.42% CRISIL A1+United Bank of India 4,944.29 4.42% CRISIL A1+IDBI Bank 4,941.00 4.41% CRISIL A1+Bank of Baroda 4,935.77 4.41% [ICRA]A1+ICICI Bank 2,970.49 2.65% [ICRA]A1+State Bank of Hyderabad 2,867.14 2.56% [ICRA]A1+Bank of India 2,489.28 2.22% CARE A1+Central Bank of India 2,483.16 2.22% CARE A1+Indian Bank 2,481.49 2.22% Fitch A1+Commercial PaperTata Motors Finance 4,945.39 4.42% [ICRA]A1+SREI Equipment Finance Private 4,940.09 4.41% [ICRA]A1+Reliance Capital 4,939.18 4.41% CRISIL A1+HDFC 4,938.29 4.41% [ICRA]A1+Aditya Birla Finance 4,495.86 4.02% [ICRA]A1+Kotak Mahindra Prime 4,363.04 3.90% CRISIL A1+Jindal Power 2,981.89 2.66% CARE A1+Sundaram Finance 2,483.01 2.22% [ICRA]A1+L&T Finance 2,480.70 2.22% CARE A1+JM Financial Products 2,479.80 2.22% CRISIL A1+Piramal Enterprises 2,477.36 2.21% [ICRA]A1+Mahindra & Mahindra Financial Serv 2,468.84 2.21% CRISIL A1+JM Financial Products 2,467.13 2.20% CRISIL A1+Total 93.16%Cash EquivalentsCBLOs 474.27 0.42%Reverse Repos 8,150.08 7.28%Net Current Assets -970.56 -0.87%Total Net Assets as on 28 June 2013 1,11,954.35 100.00%

HSBC Cash Fund (HCF) June 2013

39

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


` 1193.4696


1.35 months


1.24 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 June 28, 2013 Regular # 1.00%$ Institutional # 0.35%$

Institutional Plus 0.03%$

Direct Plan 0.02%$

@ Effective from March 1, 2013 for prospective investments.* Based on invested Amount# Plan(s) discontinued from accepting subscriptions w.e.f. October 01, 2012 $ Currently there is no Service Tax levied due to nil Investment Management Fees being charged.





HSBC Cash Fund - Institutional Option - Monthly Dividend26-Apr-13 5.40947 5.18076 1006.998231-May-13 6.07392 5.81712 1007.850928-Jun-13 4.80460 4.60146 1006.2220HSBC 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



HSBC Cash Fund (HCF) June 2013

40


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

HSBC Cash Fund

01 June 2013 to 15 June 2013***

16 June 2013 to 30 June 2013***

Average for the Month

Normal (erstwhile insti-plus)

0.03 0.03 0.03

Direct 0.02 0.02 0.02

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


` 15.7358


74.28 months


51.02 months

Yield To Maturity* 7.55%Fund Manager Sanjay ShahSIP AvailableMinimum ` 10,000Application ` 1,000 p.m.(SIP)AmountExit Load@ Nil

Total Expense Ratio as on June 28, 2013 Regular 1.00%$ Direct Plan 0.50%$ $ Excludes service tax on Investment Management fees of 0.06% 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 Securities8.12% GOI RED 10-Dec-2020 123.17 40.53% Sovereign8.20% GOI RED 24-Sep-2025 36.51 12.02% Sovereign8.10% Tamil Nadu SDL RED 08-May-2023 30.18 9.93% Sovereign8.25% Andhra Pradesh SDL RED 25-Apr-2023 15.23 5.01% Sovereign8.07% GOI RED 03-Jul-2017 10.15 3.34% SovereignTotal 70.83%Cash EquivalentsCBLOs 0.57 0.19%Reverse Repos 85.48 28.13%Net Current Assets 2.57 0.85%Total Net Assets as on 28 June 2013 303.87 100.00%





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 70.83%Cash Equivalents 28.32%Net Current Assets 0.85%

Rating ProfileSovereign 70.83%Reverse Repos/ CBLOs 28.32%Net Current Assets 0.85%

HSBC Gilt Fund (HGF) June 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 DepositAndhra Bank 710.12 12.65% CARE A1+Central Bank of India 663.32 11.81% CARE A1+State Bank of Patiala 483.21 8.61% [ICRA]A1+Oriental Bank of Commerce 481.78 8.58% CRISIL A1+Indian Bank 397.38 7.08% Fitch A1+Bank of Maharashtra 379.09 6.75% CRISIL A1+State Bank of Mysore 197.96 3.53% [ICRA]A1+Commercial PaperReliance Capital 592.70 10.56% CRISIL A1+Gruh Finance 495.68 8.83% CRISIL A1+Tata Motors Finance 494.89 8.81% [ICRA]A1+JM Financial Products 490.54 8.74% CRISIL A1+Total 95.93%Cash EquivalentsCBLOs 2.00 0.04%Reverse Repos 299.45 5.33%Net Current Assets -72.95 -1.30%Total Net Assets as on 28 June 2013 5,615.17 100.00%

HSBC Ultra Short Term Bond Fund (HUSBF) June 2013

42

Date of Allotment 17-Oct-06Benchmark Customised

Benchmark Index**NAV (Growth) per unit(as on 28.06.13)

` 10.6293


4.37 months


4.04 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 June 28, 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.@ 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







HSBC Ultra Short Term Bond Fund - Institutional Option - Monthly Dividend26-Apr-13 0.07954 0.06777 10.229331-May-13 0.06005 0.05751 10.215628-Jun-13 0.04732 0.04532 10.1992HSBC 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) June 2013

43


HSBC Ultra Short Term Bond Fund

01 June 2013 to 15 June 2013***

16 June 2013 to 30 June 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 InstrumentsCertificate of DepositPunjab National Bank 4,733.20 3.15% CARE A1+Corporation Bank 4,438.12 2.95% CRISIL A1+Vijaya Bank 2,479.67 1.65% CARE A1+State Bank of Patiala 2,470.20 1.64% [ICRA]A1+Commercial PaperSundaram Finance 499.42 0.33% [ICRA]A1+Corporate/PSU DebtCorporate Bonds / DebenturesIndian Railway Finance Corporation 10,117.41 6.73% CRISIL AAANational Housing Bank 7,434.71 4.95% CRISIL AAARural Electrification Corporation 5,682.55 3.78% CARE AAAHDFC 4,443.14 2.96% CRISIL AAAState Bank of India 3,833.55 2.55% CRISIL AAAHDFC 3,536.34 2.35% CRISIL AAAPower Grid Corporation of India 3,103.51 2.07% CRISIL AAAPower Finance Corporation 3,040.32 2.02% CRISIL AAAShriram Transport Finance Company 2,522.06 1.68% CRISIL AARural Electrification Corporation 2,506.36 1.67% CARE AAAPower Finance Corporation 2,485.56 1.65% CRISIL AAABajaj Finance 2,320.97 1.55% [ICRA]AA+Rural Electrification Corporation 2,079.50 1.38% CRISIL AAAPower Finance Corporation 2,073.87 1.38% CRISIL AAATata Sons 2,022.39 1.35% CRISIL AAAShriram Transport Finance Company 2,013.12 1.34% CRISIL AAExport Import Bank of India 1,535.68 1.02% CRISIL AAALIC Housing Finance 1,517.58 1.01% CRISIL AAALIC Housing Finance 1,510.60 1.01% CRISIL AAAPower Finance Corporation 1,488.50 0.99% CRISIL AAAPower Finance Corporation 1,072.84 0.71% CRISIL AAAHDFC 1,016.67 0.68% CRISIL AAAShriram Transport Finance Company 1,007.49 0.67% CRISIL AAUnion Bank of India 923.19 0.61% CRISIL AAANABARD 920.87 0.61% CRISIL AAANABARD 854.49 0.57% CRISIL AAABank of Baroda 606.51 0.40% CRISIL AAAExport Import Bank of India 510.23 0.34% CRISIL AAAPower Finance Corporation 304.27 0.20% CRISIL AAAShriram Transport Finance Company 300.27 0.20% CRISIL AARural Electrification Corporation 204.52 0.14% CRISIL AAAGovernment Securities8.12% GOI RED 10-Dec-2020 25,008.24 16.65% Sovereign8.20% GOI RED 24-Sep-2025 11,412.61 7.60% Sovereign8.07% GOI RED 03-Jul-2017 7,532.43 5.01% Sovereign8.25% Andhra Pradesh SDL RED 25-Apr-2023 2,305.47 1.53% Sovereign8.15% GOI RED 11-Jun-2022 2,069.00 1.38% Sovereign8.10% Tamil Nadu SDL RED 08-May-2023 1,730.26 1.15% Sovereign8.30% GOI RED 31-Dec-2042 1,001.55 0.67% Sovereign8.33% GOI RED 09-July-2026 527.90 0.35% Sovereign7.63% West Bengal SDL RED 22-May-2023 446.68 0.30% Sovereign7.28% GOI RED 03-Jun-2019 379.61 0.25% SovereignZero Coupon BondsHDFC 291.70 0.19% CRISIL AAATotal 93.40%

HSBC Flexi Debt Fund (HFDF) June 2013

44

Date of Allotment 05-Oct-07Benchmark CRISIL Composite


` 16.7278


66.20 months


45.46 months


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

Total Expense Ratio as on June 28, 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.@ 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 48.78%Government Securities 34.89%Money Market Instruments 9.73%Cash Equivalents 5.67%Net Current Assets 0.92%

Rating ProfileAAA 53.08%AA+/ AA-/ AA 5.43%Sovereign 34.89%Reverse Repos/ CBLOs 5.67%Net Current Assets 0.92%

HSBC Flexi Debt Fund (HFDF) June 2013

45


Cash EquivalentsCBLOs 66.55 0.04%Reverse Repos 8,455.01 5.63%Net Current Assets 1,387.92 0.92%Total Net Assets as on 28 June 2013 1,50,224.64 100.00%

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 June 2013

46

Fund Manager’s ExperienceSanjay Shah B. Com, A.C.A., Post Graduate Diploma in Management

Experience:Over 12 years of experience in research and Fund Management l HSBC Asset Management (India) Private Ltd Vice President & Fund Manager, Fixed Income since December 2008 onwards 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 ParekhMBA, B.Com

Experience:Over 14 years experience in research and Fund Management. l HSBC Asset Management (India) Private Ltd Fund Manager, Fixed Income from January 2011 onwards 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 June 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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