hsbc global asset management the asset...foreign institutional investors (fiis) continued to pump in...

Factsheet - February 2012

The Asset

HSBC Global Asset Management

Index

1

In this Issue ...

Fund Manager’s Comments - Equity & MIP Pg 2

Fund Manager’s Comments - Debt Pg 5

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 28

HSBC MIP - Regular Plan Pg 30

HSBC Income Fund - Investment Plan Pg 32

HSBC Income Fund - Short Term Plan Pg 34

HSBC Floating Rate Fund - Long Term Plan Pg 36

HSBC Cash Fund Pg 38

HSBC Gilt Fund Pg 40

HSBC Ultra Short Term Bond Fund Pg 41

HSBC Flexi Debt Fund Pg 43

Fund Managers - MIP & Debt Pg 45

Comparative Performance of MIP & Debt Schemes Pg 47

Fund Manager’s Comments - Equity & MIP HSBC Mutual FundFebruary 2012

2

Markets Consolidate in February 2012

Equity Market Consolidates in February

FII inflows into Indian Equities remains strong

Crude Prices move northward

February 2012 witnessed the equity market taking a breather and entering a consolidation mode, after the sharp rally of January 2012. There was some positive news in the Euro zone with the Greek parliament passing the resolution for the debt deal.

Sensex and Nifty gained 3.25% and 3.58% respectively during the month. Meanwhile, the BSE Mid Cap and BSE Small Cap Indices outperformed the large cap indices, delivering a return of 8.77% and 6.14%, respectively. Indices for the interest sensitive sectors such as Financials, Realty, Consumer Durables and Auto were ahead of the pack, while Pharma and Consumer Staples sectoral indices continued to be laggards.

Source: Bombay Stock Exchange (BSE)

Foreign Institutional Investors (FIIs) continued to pump in funds into Indian equities, with a net inflow of USD 5.1 bn during February 2012. This was substantially higher than the inflows experienced in the previous month. The Domestic Institutional Investors (DIIs) segment on the other hand ended up as net sellers in the market to the tune of USD 2.4 bn. The YTD net inflow from the FII segment now stands at an impressive USD 6.9 bn (compared to total net outflow of USD 512 mn during 2011). (Source: BSE, NSE)

The escalating tension in the Middle East has had a negative impact on the crude oil prices, which went up by 10% in February 2012. This meant that despite the healthy FII flows the INR remained flat, moderated by the rising crude oil prices.

GDP growth slows down but Inflation under control

GDP growth slows down

The 3QFY12 GDP growth slowed to 6.1% YoY (as against 6.9% YoY for the previous quarter) given the overhang of high interest rates and policy paralysis. On the supply side, Agricultural growth eased slightly to 2.7% YoY (as against 3.2% during the previous quarter), while Industrial growth suffered heavily, falling to 0.8% YoY as against 2.8% in the previous quarter. This can be contributed to the contraction in the Manufacturing sector and further de-growth in the Mining sector.

Inflation tapers off

Services also decelerated (8.9% YoY as against 9.3% YoY during the previous quarter) with financial services being the major drag there. On the demand side, net exports pulled growth down substantially. While the Government-led consumption also showed signs of slowing down, private consumption picked up pace. (Source: Central Statistical Organization, India)

IIP growth disappoints

Source: Bloomberg; Central Statistical Organization (CSO) India

3.3%3.9%

4.4% 4.7%

8.8%

6.1%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

Sensex BSE 100 BSE 200 BSE 500 BSE MidCap BSE SmallCap

Indices Performance - February 2012

Wholesale Price Index Inflation (WPI)

9.1%

7.5%6.6%

9.7%9.7%

9.2%

9.5%9.8%

10.3%

9.1%

8.7%

9.7%

9.5%

9.5%

9.5%

8.2%

9.1%

9.0%

8.9%10.0%

5.0%

6.0%

7.0%

8.0%9.0%

10.0%

11.0%

Jun-

10

Jul-1

0

Aug-

10

Sep-

10

Oct

-10

Nov

-10

Dec

-10

Jan-

11

Feb-

11

Mar

-11

Apr-

11

May

-11

Jun-

11

Jul-1

1

Aug-

11

Sep-

11

Oct

-11

Nov

-11

Dec

-11

Jan-

12

WPI YoY grow th (New series; base 2004-05)

The headline WPI inflation for January 2012 moderated to a 2 year low of 6.55% YoY (as against 7.5% in December 2011), dipping below the 7% mark for the first time since December 2009. Fuelled by a broad based slowdown across components particularly Textiles, Transport Equipment and Basic Metals, the core inflation eased notably to 6.7% YoY (as against 7.7% YoY in December 2011). Inflation in primary food items was meanwhile negative in January 2012, coming in at -0.5% (as against 0.7% in December 2011)

Source: Bloomberg ; Central Statistical Organization (CSO) India

The Index of Industrial Production (IIP) growth disappointed during December 2011, after a promising November 2011, down to 1.8% YoY from 5.9% YoY. The Mining segment of the IIP continued to lurch in the negative zone, while the Manufacturing segment slowed down considerably for December 2011. The slow down in IIP growth indicates that the effects of monetary tightening are continuing to extend pressure on industrial output at large.

Source: Bloomberg ; Central Statistical Organization, (CSO) India

Global Economic Scenario

Impact of LTRO round two and Middle east tension would be the keenly watched events

The European Central Bank’s (ECB) Long Term Re-financing Operation (LTRO) round 2, estimated at EUR 530 bn, will infuse more liquidity, for Euro area banks. While the sole objective of the LTRO is to provide the European banks with access to low cost funding to resurrect their balance sheets and help address systemic risks in the Euro zone, some of it may find its way in to Emerging market equity assets, including Indian markets. While this may drive the markets up in the near term, but will result in volatility due to the nature of these flows.While the Greek debt deal resolution has put the Euro zone sovereign crisis on the back burner, but further developments, in other affected countries in the zone, will be closely tracked. Crude oil prices are pivotal to India’s financial strength and the Iran – Israel conflict will be closely watched in that context. An oil shock at this juncture can have very adverse impact on the INR as well as the Balance of Payment (BoP) position for India.

Going ForwardMarch 2012 will be an important month for the Indian equity markets due to some key events expected to unfold on the political, fiscal and monetary fronts. Repercussions of these events will set the direction and tone for FY 2013. The impact of the results of the Assembly elections in the 5 states will be analysed for its influence on the future policy reforms of the UPA government at the centre. At the same time, the Union Budget scheduled for March 16, 2012 will indicate the direction, i.e. populist or reformist, the Central Government intends to pursue for the remainder of its current term in office. The Reserve Bank of India (RBI) will also convene in mid-March 2012, for the first time since it initiated a Cash Reserve Ratio (CRR) cut in January 2012, to take a call on the course of monetary loosening, it has indicated. These events along with any major news flow from the global corners would define the mood of the Indian equity markets in the near term.


3

Index of Industrial Production (IIP)

8.8%

4.1%

1.9%

5.9%

1.80%

-5.1%

6.3%

5.9%

3.3%

6.5%

11.4%10.0%

7.5%

8.5% 8.8%

7.5%

8.1%

6.4%

6.2%

4.5%

-6.0%

-4.0%

-2.0%0.0%

2.0%

4.0%

6.0%

8.0%10.0%

12.0%

14.0%

May

-10

Jun-

10

Jul-1

0

Aug-

10

Sep-

10

Oct

-10

Nov-

10

Dec-

10

Jan-

11

Feb-

11

Mar

-11

Apr-1

1

May

-11

Jun-

11

Jul-1

1

Aug-

11

Sep-

11

Oct

-11

Nov-

11

Dec-

11

IIP YoY Grow th (New Series; base 2004- 05)

Repo Rate Movement

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

Jul-0

7Se

p-07

Nov-

07Ja

n-08

Mar

-08

May

-08

Jul-0

8Se

p-08

Nov-

08Ja

n-09

Mar

-09

May

-09

Jul-0

9Se

p-09

Nov-

09Ja

n-10

Mar

-10

May

-10

Jul-1

0Se

p-10

Nov-

10Ja

n-11

Mar

-11

May

-11

Jul-1

1Se

p-11

Nov-

11Ja

n-12

Repo Rate


4

Review: HSBC Progressive Themes FundCurrently focusing on the following themes1. Economic Reforms (32.7%) - which includes Banking - 21.6%, Oil and Gas Sector deregulation - 2.2% and opening of FDI/Disinvestment sub theme 8.9% 2. Infrastructure (26.4%) which includes Power - 9.5%, Construction-12% and Logistics- 4.9%. 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 market conditions and technical factors. We are overweight Industrials, Energy, Pharma, Telecommunication and underweight Consumer Discretionary, Consumer Staples, Materials, Real Estate and Information Technology.

Review: HSBC MIP Regular and Savings PlansOur current equity exposure is 13.37% in HMIP Regular and 24.56% in HMIP Savings. Currently it is more biased towards large caps than mid or small caps. While a year back the equity portfolio of MIP-S used to be predominantly mid and small caps, but since this segment of the market tends to be more volatile in uncertain times, we intended to progressively increase the exposure to large caps keeping in view the risk tolerance of investors in this fund.

Review: HSBC Midcap Equity FundBeing overweight Consumer Discretionary, Industrials, Utilities and underweight Healthcare, Materials, Telecommunication helped performance while being overweight Consumer Staples, Information Technology and underweight Energy, Financials, Real Estate 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 Energy and underweight Materials, Consumer Staples and Industrials helped performance, while being underweight Utilities, Real Estate and overweight Financials, Healthcare, Information Technology, Telecommunication hurt performance.

Review: HSBC Equity FundBeing overweight Energy, Consumer Discretionary and underweight Industrials, Healthcare helped performance while being underweight Financials and overweight Telecommunication and Utilities hurt performance.

Market Assessment

Domestic bond markets witnessed pressure during the fortnight largely due to negative system liquidity. However, significant downward movement was prevented by continued Open Market Operations (OMO) by RBI. As the governments’ borrowing calendar is nearing its fag-end, there would be limited supply going forward. This has also capped yields from rising.

Economic Data

Quarterly GDP growth rate fell to three years low

Q3FY12 GDP growth declined to 6.1%, the lowest quarterly growth in the last three years. Agricultural output grew by 2.7%, while the Industry’s output fell sharply to 0.8% from 2.8% in previous quarter. Services sector, forming bulk of the GDP also reported moderate growth of 8.9% YoY against 9.3% growth reported in the previous quarter primarily due to moderation in ‘financing, insurance, real estate & business services’ to 9.0% from 10.5% in the last quarter. Growth in ‘Trade, transport & communication services’ also reduced to 9.2% from 9.8% over the same period. Moderation in Industry’s output was mainly due to the manufacturing sector, while mining continued to de-grow. (Source: RBI)

The expenditure side of the GDP continued reflecting poor investment activity, with gross domestic capital formation contracting by 1.2%. Net exports also contributed significantly to lower GDP numbers as it contracted by 2.2% for the quarter.

India’s Manufacturing PMI for the month of February 2012 also declined to 56.6 from 57.5 in January 2012 due to lower output and employment. Though output growth eased in February, it remained above the recent trend. (Source: RBI)

Market Activity

Gilts remained range bound

Sovereign yields remained range bound during the fortnight. Pessimism due to negative system liquidity and higher oil prices were countered by continued buy backs by the RBI through OMOs and macro data prints which are positive for the bond segment. Expectations of a higher borrowing announcement in the upcoming budget for FY 2012-13 also weighed adversely on the market.

Parallel shift in corporate bond curve

Corporate bond markets witnessed pressure across the tenor. Short term corporate bond yields moved upward on the back of negative system liquidity and continued supply by regular issuers. Yields over the long term hardened as some new issuers added to the regular supply whilst demand from long term investors remained limited.

Money market rates climbed further

Money market rates climbed up significantly with an draw down from RBI through LAF window touching INR 1.90 trillion. The 50 bps CRR cut in the January 2012 RBI policy failed to provide any meaningful relief to the system. Liquidity is expected to become further negative due to advance tax payments.

Global Economic Scenario

Announcement of second tranche of LTRO

Outlook of Global markets, particularly the European Union improved with an announcement of LTRO – 2 (Long term refinancing operations) to the tune of Euro 529 bn by the European Central Bank. However, these LTRO’s are happening against a backdrop of severe austerity measures across Europe which may restrict improvement in the economic situation. Crude oil prices continued their northward journey, namely due to tension with Iran, and may be a cause of worry for Indian policy makers.

Going Forward

Going ahead, we expect yields to remain range bound with a positive bias. Lower than expected GDP growth complemented soft macro-economic data resulting in an increase in rate cut expectations at the March 2012 RBI meeting. However, non-resilience in manufacturing inflation and increasing fiscal concerns may prompt the RBI to postpone the rate cut until next meeting. Continued hardening of crude prices may be another cause of worry for monetary and fiscal policy makers. System liquidity is likely to remain out of RBI’s comfort zone with further pressure expected around advance tax payment. As a result, it is quite possible that the RBI may cut CRR more aggressively than anticipated.

Overall, we expect duration assets to remain in flavor as the interest rate cycle is expected to reverse. Money market segment could continue to see some stress in the near term.

We continue to remain positive on bond funds as the benefits of downward interest rate movement will accrue to longer duration funds in a larger magnitude. The short end funds should benefit due to the steepening of the yield curve on easing of liquidity scenario. The focus on selective duration building continues as the market remains volatile.

Fund Manager’s Comments - Debt HSBC Mutual FundFebruary 2012

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 Hero Motocorp 1,401.19 1.96%Bajaj Auto 1,171.04 1.64%Tata Motors 1,151.54 1.61%Banks HDFC Bank 5,067.58 7.10%ICICI Bank 3,625.20 5.08%State Bank of India 2,831.91 3.97%Federal Bank Limited 811.10 1.14%CementGrasim Industries 3,880.17 5.43%Consumer Non DurablesI T C 3,737.70 5.23%GlaxoSmithkline Consumer Healthcare 2,331.95 3.27%Construction ProjectLarsen & Toubro 2,943.11 4.12%Ferrous Metals Tata Steel 1,275.89 1.79%Fertilisers Coromandel International 844.34 1.18%Finance HDFC 3,342.28 4.68%Fixed DepositsHSBC Bank** 900.00 1.26%Gas GAIL (India) 1,012.23 1.42%Industrial Capital GoodsBharat Heavy Electricals 1,844.10 2.58%Media & Entertainment Zee Entertainment Enterprises 743.83 1.04%Minerals/Mining Coal India 1,655.78 2.32%Non Ferrous Metals Hindustan Zinc 3,050.25 4.27%Oil Oil & Natural Gas Corporation 2,638.80 3.70%Cairn India 1,918.80 2.69%Petroleum Products Reliance Industries 4,432.05 6.21%Bharat Petroleum Corporation 1,188.57 1.66%Pharmaceuticals Dr Reddy’s Laboratories 1,626.27 2.28%Cadila Healthcare 980.24 1.37%Power NTPC 1,149.96 1.61%

HSBC Equity Fund (HEF) HSBC Mutual FundFebruary 2012

6


% to NetAssets

Software Infosys 4,411.68 6.18%Tata Consultancy Services 4,032.44 5.65%Telecom - Services Bharti Airtel 2,836.62 3.97%Total 96.39%Other Equity Investments 2,055.18 2.88%CBLOs 97.59 0.14%Net Current Assets 425.62 0.60%Total Net Assets as on 29 February 2012 71,414.98 100.00%

** Fixed deposits are placed as margin Deposit for Futures, Options and Equities.

Asset AllocationAuto 5.21%Banks 17.27%Cement 5.43%Consumer Non Durables 8.50%Construction Project 4.12%Ferrous Metals 1.79%Fertilisers 1.18%Finance 4.68%Fixed Deposits 1.26%Gas 1.42%Industrial Capital Goods 2.58%Media & Entertainment 1.04%Minerals/Mining 2.32%Non - Ferrous Metals 4.27%Oil 6.38%Petroleum Products 7.87%Pharmaceuticals 3.65%Power 1.61%Software 11.82%Telecom - Services 3.97%Other Equity Investments 2.88%Reverse Repos/CBLOs 0.14%Net Current Assets 0.60%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 - Dividend11-Dec-09 2.50 2.50 29.407328-May-10 1.50 1.50 26.691119-Nov-10 2.00 2.00 29.3244

Date of Allotment 10-Dec-02Benchmark BSE 200NAV (Growth) per unit(as on 29.02.12)

` 97.7461

Fund Manager Tushar PradhanSIP AvailableMinimumApplicationAmount

` 10,000` 1,000 (SIP)

Exit Load@ 1% - if redeemed/ switched out$ within 1 year from date of investment; otherwise Nil.

Statistical RatiosStandard Deviation 0.97%R-Squared 0.9474Beta (Slope) 0.8313Sharpe Ratio 0.0265Annualised Expense Ratio from 01 April 2011 onwards 2.13%Portfolio Turnover 0.82

Statistical ratios disclosed as per daily returns of the last 3 years/since inception, whichever is later. @ Including SIP/STP where applicable. $ No load in case of switches between equity schemes of HSBC Mutual Fund.

HSBC Equity Fund (HEF) HSBC Mutual FundFebruary 2012

7

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 422.16 2.60%Tata Motors 338.69 2.08%Hero Motocorp 297.75 1.83%Auto Ancillaries Bosch 1,391.69 8.56%Banks HDFC Bank 879.07 5.40%ICICI Bank 725.04 4.46%Bank of Baroda 579.17 3.56%State Bank of India 546.15 3.36%Cement Shree Cement 378.09 2.32%Construction ProjectLarsen & Toubro 588.62 3.62%Consumer Non Durables I T C 747.54 4.60%Fertilisers Coromandel International 299.32 1.84%Finance HDFC 656.52 4.04%CRISIL 419.04 2.58%Power Finance Corporation 358.29 2.20%LIC Housing Finance 260.40 1.60%Fixed DepositsHSBC Bank** 200.00 1.23%Industrial Capital GoodsBharat Heavy Electricals 321.18 1.97%Industrial ProductsCarborundum Universal 163.35 1.00%Minerals/Mining Coal India 180.63 1.11%Non - Ferrous Metals Hindalco Industries 297.80 1.83%Hindustan Zinc 287.60 1.77%Oil Oil & Natural Gas Corporation 474.98 2.92%Cairn India 369.00 2.27%PesticidesUnited Phosphorus 311.70 1.92%Petroleum Products Reliance Industries 820.75 5.05%Bharat Petroleum Corporation 238.41 1.47%Pharmaceuticals Aventis Pharma 411.46 2.53%Divi's Laboratories 363.90 2.24%Dr Reddy's Laboratories 221.76 1.36%Software Infosys 922.70 5.67%Tata Consultancy Services 647.63 3.98%Info Edge (India) 351.05 2.16%Telecom - ServicesBharti Airtel 472.77 2.91%Total 98.02%

HSBC India Opportunities Fund (HIOF) HSBC Mutual FundFebruary 2012

8


% to NetAssets

Other Equity Investments 141.86 0.87%CBLOs 414.36 2.55%Net Current Assets -233.53 -1.44%Total Net Assets as on 29 February 2012 16,266.92 100.00%

** Fixed deposits are placed as margin Deposit for Futures, Options and Equities.

Asset AllocationAuto 6.51%Auto Ancillaries 8.56%Banks 16.78%Cement 2.32%Construction Project 3.62%Consumer Non Durables 4.60%Fertilisers 1.84%Finance 10.42%Fixed Deposits 1.23%Industrial Capital Goods 1.97%Industrial Products 1.00%Minerals/Mining 1.11%Non - Ferrous Metals 3.60%Oil 5.19%Pesticides 1.92%Petroleum Products 6.51%Pharmaceuticals 6.13%Software 11.81%Telecom - Services 2.91%Other Equity Investments 0.87%Reverse Repos/CBLOs 2.55%Net Current Assets -1.44%Total Net Assets 100.00%





HSBC India Opportunities Fund - Dividend24-Mar-08 1.00 1.00 16.406511-Dec-09 1.00 1.00 16.901319-Nov-10 1.00 1.00 18.2313

Date of Allotment 24-Feb-04Benchmark BSE 500NAV (Growth) per unit(as on 29.02.12)

` 34.5234

Fund Manager Tushar PradhanSIP AvailableMinimumApplication Amount

` 10,000` 1,000 (SIP)




HSBC India Opportunities Fund (HIOF) HSBC Mutual FundFebruary 2012

9

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 Eicher Motors 243.22 2.20%Auto Ancillaries Apollo Tyres 545.71 4.95%Wabco - TVS (India) 280.00 2.54%Autoline Industries 110.20 1.00%Banks Dena Bank 664.43 6.02%The Jammu & Kashmir Bank 564.16 5.11%State Bank of Bikaner and Jaipur 201.41 1.83%Union Bank of India 163.21 1.48%State Bank of Travancore 160.54 1.46%Construction Kajaria Ceramics 241.69 2.19%BF Utilities 114.00 1.03%Consumer Durables Tube Investments of India 391.58 3.55%Bajaj Electricals 287.60 2.61%Hitachi Home & Life Solutions (India) 285.04 2.58%Construction ProjectVoltas 318.57 2.89%Consumer Non DurablesVenky’s (India) 450.22 4.08%KRBL 378.83 3.43%Gujarat Ambuja Exports 303.79 2.75%Godfrey Philips India 167.20 1.52%FinanceAditya Birla Nuvo 391.58 3.55%Industrial Capital GoodsNumeric Power Systems 146.32 1.33%Industrial Products Diamond Power Infrastructure 270.56 2.45%FAG Bearings India 172.73 1.57%Polyplex Corporation 136.93 1.24%Media & EntertainmentPrime Focus 359.30 3.26%Minerals/Mining Gujarat Mineral Development Corporation 535.16 4.85%PesticidesPI Industries 695.16 6.30%Power Power Trading Corporation of India 334.32 3.03%Software Polaris Software Lab 544.69 4.94%Nucleus Software Exports 114.87 1.04%

HSBC Midcap Equity Fund (HMEF) HSBC Mutual FundFebruary 2012

10


% to NetAssets

Textile - CottonVardhman Textiles 139.19 1.26%Textile - Synthetic Bombay Dyeing & Manufacturing Company 758.57 6.88%Transportation Gateway Distriparks 150.63 1.37%Total 96.28%Other Equity Investments^^ 383.45 3.48%CBLOs 18.61 0.17%Net Current Assets 8.79 0.08%Total Net Assets as on 29 February 2012 11,032.24 100.00%

^^Contains thinly traded / non traded and illiquid securities as defined in SEBI Regulations and Guidelines. Asset AllocationAuto 2.20%Auto Ancillaries 8.48%Banks 15.90%Construction 3.22%Consumer Durables 8.74%Construction Project 2.89%Consumer Non Durables 11.78%Finance 3.55%Industrial Capital Goods 1.33%Industrial Products 5.26%Media & Entertainment 3.26%Minerals/Mining 4.85%Pesticides 6.30%Power 3.03%Software 5.98%Textile - Cotton 1.26%Textile - Synthetic 6.88%Transportation 1.37%Other Equity Investments 3.48%Reverse Repos/CBLOs 0.17%Net Current Assets 0.08%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 BSE MidcapNAV (Growth) per unit(as on 29.02.12)

` 18.0352

Fund Manager Dhiraj SachdevSIP AvailableMinimumApplicationAmount

` 10,000` 1,000 (SIP)




HSBC Midcap Equity Fund (HMEF) HSBC Mutual FundFebruary 2012

11

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 765.25 4.24%Bajaj Auto 360.32 2.00%Auto Ancillaries Apollo Tyres 595.24 3.30%Banks The Jammu & Kashmir Bank 1,197.86 6.63%ICICI Bank 697.85 3.86%Dena Bank 620.55 3.44%The Karnataka Bank 510.55 2.83%Union Bank of India 459.31 2.54%Indian Bank 444.18 2.46%Allahabad Bank 210.44 1.17%Construction Kajaria Ceramics 263.96 1.46%Construction ProjectLarsen & Toubro 327.01 1.81%Gammon Infrastructure Projects 262.87 1.46%Fertilisers Coromandel International 181.18 1.00%Finance IFCI 595.68 3.30%Rane Holdings 402.00 2.23%Rural Electrification Corporation 323.55 1.79%Aditya Birla Nuvo 310.72 1.72%Industrial Capital GoodsBharat Heavy Electricals 299.67 1.66%Industrial Products FAG Bearings India 1,656.48 9.17%Diamond Power Infrastructure 329.36 1.82%Media & EntertainmentPrime Focus 492.11 2.73%PesticidesUnited Phosphorus 202.61 1.12%Petroleum Products Hindustan Petroleum Corporation 206.98 1.15%Indian Oil Corporation 190.71 1.06%Pharmaceuticals Aurobindo Pharma 381.14 2.11%Power Power Trading Corporation of India 561.41 3.11%Reliance Infrastructure 519.66 2.88%Software Polaris Software Lab 1,015.25 5.62%Tata Consultancy Services 439.90 2.44%Textile - Cotton Vardhman Textiles 198.30 1.10%Textile - Synthetic Bombay Dyeing & Manufacturing Company 905.89 5.02%TransportationGateway Distriparks 584.55 3.24%Balmer Lawrie & Company 304.49 1.69%Total 93.13%

HSBC Progressive Themes Fund (HPTF) HSBC Mutual FundFebruary 2012

12


% to NetAssets

Other Equity Investments^^ 1,033.86 5.73%CBLOs 303.48 1.68%Net Current Assets -96.25 -0.53%Total Net Assets as on 29 February 2012 18,058.12 100.00%

^^Contains thinly traded / non traded and illiquid securities as defined in SEBI Regulations and Guidelines.

Asset AllocationAuto 6.23%Auto Ancillaries 3.30%Banks 22.93%Construction 1.46%Construction Project 3.27%Fertilisers 1.00%Finance 9.04%Industrial Capital Goods 1.66%Industrial Products 11.00%Media & Entertainment 2.73%Pesticides 1.12%Petroleum Products 2.20%Pharmaceuticals 2.11%Power 5.99%Software 8.06%Textile - Cotton 1.10%Textile - Synthetic 5.02%Transportation 4.92%Other Equity Investments 5.73%Reverse Repos/CBLOs 1.68%Net Current Assets -0.53%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 BSE 200NAV (Growth) per unit(as on 29.02.12)

` 11.1778


` 10,000` 1,000 (SIP)




HSBC Progressive Themes Fund (HPTF) HSBC Mutual FundFebruary 2012

13

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 Eicher Motors 469.07 2.23%Bajaj Auto 440.20 2.09%Mahindra and Mahindra 425.91 2.02%Auto Ancillaries Bosch 927.79 4.40%Exide Industries 341.13 1.62%Motherson Sumi Systems 325.31 1.54%Banks HDFC Bank 1,303.09 6.19%ICICI Bank 1,055.84 5.01%Bank of Baroda 862.34 4.09%State Bank of India 314.66 1.49%Punjab National Bank 314.59 1.49%Cement Shree Cements 686.02 3.26%Grasim Industries 415.73 1.97%Construction ProjectLarsen & Toubro 706.35 3.35%Sadbhav Engineering 578.20 2.75%Voltas 334.33 1.59%Consumer Non DurablesI T C 857.59 4.07%GlaxoSmithkline Consumer Healthcare 524.69 2.49%McLeod Russel India 438.08 2.08%Fertilisers Coromandel International 417.19 1.98%Finance HDFC 603.47 2.87%Power Finance Corporation 312.51 1.48%Media & EntertainmentZee Entertainment Enterprises 322.96 1.53%Non - Ferrous Metals Hindustan Zinc 428.24 2.03%Hindalco Industries 422.88 2.01%Oil Oil & Natural Gas Corporation 633.31 3.01%PesticidesUnited Phosphorus 314.58 1.49%Petroleum Products Reliance Industries 619.67 2.94%Bharat Petroleum Corporation 357.62 1.70%Pharmaceuticals Dr Reddy's Laboratories 443.53 2.11%Lupin 411.13 1.95%Divi's Laboratories 410.21 1.95%Software Tata Consultancy Services 1,136.41 5.40%Infosys 1,055.34 5.01%Telecom - Services Bharti Airtel 673.78 3.20%Total 94.40%

HSBC Tax Saver Equity Fund (HTSF) HSBC Mutual FundFebruary 2012

14

Date of Allotment 05-Jan-07Benchmark BSE 200NAV (Growth) per unit(as on 29.02.12)

` 13.8319

Fund Manager Aditya KhemaniSIP AvailableMinimumApplicationAmount

` 500(Lumpsum & SIP)

Exit Load@ NilStatistical Ratios

Standard Deviation 1.00%R-Squared 0.9251Beta (Slope) 0.8432Sharpe Ratio 0.042Annualised Expense Ratio from 01 April 2011 onwards 2.36%Portfolio Turnover 0.44

Statistical ratios disclosed as per daily returns of the last 3 years/since inception, whichever is later. @ Including SIP/STP where applicable.


% to NetAssets

Other Equity Investments^^ 189.38 0.90%CBLOs 1,062.67 5.05%Net Current Assets -72.51 -0.34%Total Net Assets as on 29 February 2012 21,063.28 100.00%

Asset AllocationAuto 6.34%Auto Ancillaries 7.57%Banks 18.28%Cement 5.23%Construction Project 7.69%Consumer Non Durables 8.64%Fertilisers 1.98%Finance 4.35%Media & Entertainment 1.53%Non - Ferrous Metals 4.04%Oil 3.01%Pesticides 1.49%Petroleum Products 4.64%Pharmaceuticals 6.01%Software 10.41%Telecom - Services 3.20%Other Equity Investments 0.90%Reverse Repos/CBLOs 5.05%Net Current Assets -0.34%Total Net Assets 100.00%






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

HSBC Tax Saver Equity Fund (HTSF) HSBC Mutual FundFebruary 2012

15

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 Tata Motors DVR 144.78 2.07%Hero Motocorp 131.36 1.88%Bajaj Auto 120.71 1.73%Auto Ancillaries Bosch 208.75 2.99%Banks ICICI Bank 380.65 5.45%Bank of Baroda 241.32 3.46%The Jammu & Kashmir Bank 237.83 3.41%HDFC Bank 223.39 3.20%State Bank of India 161.82 2.32%Allahabad Bank 140.62 2.01%CementGrasim Industries 221.72 3.18%Construction Project Larsen & Toubro 260.30 3.73%Consumer Non DurablesI T C 264.75 3.79%McLeod Russel India 116.18 1.66%Finance HDFC 268.58 3.85%Power Finance Corporation 179.15 2.57%Industrial Capital GoodsBharay Heavy Electricals 79.91 1.14%Industrial Products Carborundum Universal 117.61 1.68%Greaves Cotton 94.24 1.35%Minerals/Mining Coal India 118.75 1.70%Non - Ferrous Metals Hindustan Zinc 196.96 2.82%Hindalco Industries 105.27 1.51%Oil Oil & Natural Gas Corporation 211.10 3.02%PesticidesUnited Phosphorus 80.79 1.16%Petroleum Products Reliance Industries 406.27 5.82%Bharat Petroleum Corporation 139.07 1.99%Pharmaceuticals Divi's Laboratories 252.84 3.62%Lupin 144.26 2.07%Ipca Laboratories 79.13 1.13%Software Infosys 420.41 6.02%Tata Consultancy Services 320.46 4.59%Oracle Financial Services Software 132.23 1.89%Telecom - Services Bharti Airtel 192.61 2.76%Total 91.59%

HSBC Unique Opportunities Fund (HUOF) HSBC Mutual FundFebruary 2012

16


% to NetAssets

Other Equity Investments^^ 319.31 4.57%CBLOs 260.44 3.73%Net Current Assets 7.57 0.11%Total Net Assets as on 29 February 2012 6,981.14 100.00%


Asset AllocationAuto 5.68%Auto Ancillaries 2.99%Banks 19.85%Cement 3.18%Construction Project 3.73%Consumer Non Durables 5.46%Finance 6.41%Industrial Capital Goods 1.14%Industrial Products 3.03%Minerals/Mining 1.70%Non - Ferrous Metals 4.33%Oil 3.02%Pesticides 1.16%Petroleum Products 7.81%Pharmaceuticals 6.82%Software 12.51%Telecom - Services 2.76%Other Equity Investments 4.57%Reverse Repos/CBLOs 3.73%Net Current Assets 0.11%Total Net Assets 100.00%

Date of Allotment 21-Mar-07Benchmark BSE 200NAV (Growth) per unit(as on 29.02.12)

` 10.2617

Fund Manager Tushar PradhanSIP AvailableMinimumApplicationAmount

` 10,000` 1,000 (SIP)


Statistical RatiosStandard Deviation 1.05%R-Squared,m 0.9124Beta (Slope) 0.8848Sharpe Ratio 0.0335Annualised Expense Ratio from 01 April 2011 onwards 2.50%Portfolio Turnover 2.00


HSBC Unique Opportunities Fund (HUOF) HSBC Mutual FundFebruary 2012

17

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


% to NetAssets

AutoTata Motors 270.95 3.30%

Bajaj Auto 180.16 2.19%

Hero Motocorp 157.63 1.92%

Banks HDFC Bank 542.96 6.61%

ICICI Bank 367.05 4.47%

State Bank of India 364.10 4.43%

Bank of Baroda 361.98 4.40%

CementGrasim Industries 498.88 6.07%

Construction ProjectLarsen & Toubro 353.17 4.30%

Consumer Non DurablesI T C 473.03 5.76%

Ferrous Metals Tata Steel 89.31 1.09%

Finance CRISIL 251.42 3.06%

HDFC 238.73 2.90%

Industrial Capital GoodsBharat Heavy Electricals 304.28 3.70%

Minerals/Mining Coal India 120.42 1.47%

Non - Ferrous Metals Hindustan Zinc 228.77 2.78%

Hindalco Industries 148.90 1.81%

Oil Cairn India 332.10 4.04%

Oil & Natural Gas Corporation 316.66 3.85%

Petroleum Products Reliance Industries 426.79 5.19%

Pharmaceuticals Dr Reddy’s Laboratories 221.76 2.70%

Lupin 216.38 2.63%

Divi's Laboratories 129.80 1.58%

PowerNTPC 90.53 1.10%

Software Infosys 490.19 5.96%

Tata Consultancy Services 244.39 2.97%

Telecom - Services Bharti Airtel 409.73 4.99%

Transportation Gujarat Pipavav Port 197.10 2.40%

Total 97.67%

HSBC Dynamic Fund (HDF) HSBC Mutual FundFebruary 2012

18


% to NetAssets

CBLOs 403.98 4.92%Net Current Assets -212.77 -2.59%Total Net Assets as on 29 February 2012 8,218.40 100.00%

Asset AllocationAuto 7.41%Banks 19.91%Cement 6.07%Construction Project 4.30%Consumer Non Durables 5.76%Ferrous Metals 1.09%Finance 5.96%Industrial Capital Goods 3.70%Minerals/Mining 1.47%Non - Ferrous Metals 4.60%Oil 7.89%Petroleum Products 5.19%Pharmaceuticals 6.91%Power 1.10%Software 8.94%Telecom - Services 4.99%Transportation 2.40%Reverse Repos/CBLOs 4.92%Net Current Assets -2.59%Total Net Assets 100.00%

Date of Allotment 24-Sep-07Benchmark BSE 200NAV (Growth) per unit(as on 29.02.12)

` 9.8119

Fund Manager Tushar Pradhan(for Equity portion)Sanjay Shah(for Debt portion)

SIP AvailableMinimumApplicationAmount

` 10,000` 1,000 (SIP)




HSBC Dynamic Fund (HDF) HSBC Mutual FundFebruary 2012

19

Date of Allotment 17-Mar-08Benchmark MSCI Emerging

Markets IndexNAV (Growth) per unit(as on 29.02.12)

` 10.3218

Fund Manager Gaurav Mehrotra (Dedicated fund manager for overseas investments)


` 10,000` 1,000 (SIP)


Statistical RatiosStandard Deviation 1.77%R-Squared 0.402Beta (Slope) 1.003Sharpe Ratio -0.007Annualised Expense Ratio from 01 April 2011 onwards 1.65% (exclusive of underlying scheme’s expenses, total not exceeding 2.50% of average net assets)Portfolio Turnover 0.14



% to NetAssets

Overseas Mutual FundHSBC GIF Global Emerging Markets Equity (Fund domiciled in Luxembourg) 5,455.91 96.71%

CBLOs 74.74 1.32%Net Current Assets 110.81 1.96%Total Net Assets as on 29 February 2012 5,641.45 100.00%

Asset AllocationOverseas Mutual Fund 96.71%Reverse Repos/CBLOs 1.32%Net Current Assets 1.96%Total Net Assets 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) HSBC Mutual FundFebruary 2012

20

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 90.33 4.20%Majestic Auto 50.55 2.35%Autoline Industries 40.96 1.91%Banks State Bank of Travancore 85.73 3.99%State Bank of Bikaner and Jaipur 65.77 3.06%The Karnataka Bank 52.68 2.45%Cement Orient Paper & Industries 127.52 5.93%Chemicals India Glycols 69.77 3.25%Construction Kajaria Ceramics 42.10 1.96%Construction ProjectSadbhav Engineering 117.87 5.48%Consumer Durables Bajaj Electricals 151.11 7.03%Hitachi Home & Life Solutions (India) 116.81 5.44%Tube Investments of India 88.99 4.14%IFB Industries 62.99 2.93%Consumer Non DurablesGujarat Ambuja Exports 73.82 3.43%KRBL 52.52 2.44%Godfrey Philips India 41.73 1.94%Greenply Industries 27.02 1.26%FinanceRane Holdings 158.79 7.39%Industrial Capital GoodsSanghvi Movers 59.75 2.78%TIL 53.99 2.51%Indo Tech Transformers 40.76 1.90%Industrial Products Ador Welding 71.76 3.34%PesticidesPI Industries 86.13 4.01%Software Nucleus Software Exports 119.11 5.54%Textile - Cotton RSWM 53.24 2.48%Textile - ProductsSRF 48.18 2.24%Textile - Synthetic Bombay Dyeing & Manufacturing Company 55.13 2.57%Total 97.95%

HSBC Small Cap Fund (HSCF) HSBC Mutual FundFebruary 2012

21


% to NetAssets

Other Equity Investments 37.17 1.73%CBLOs 64.33 2.99%Net Current Assets -57.47 -2.67%Total Net Assets as on 29 February 2012 2,149.14 100.00%

Asset AllocationAuto Ancillaries 8.46%Banks 9.50%Cement 5.93%Chemicals 3.25%Construction 1.96%Construction Project 5.48%Consumer Durables 19.54%Consumer Non Durables 9.08%Finance 7.39%Industrial Capital Goods 7.19%Industrial Products 3.34%Pesticides 4.01%Software 5.54%Textile - Cotton 2.48%Textile - Products 2.24%Textile - Synthetic 2.57%Other Equity Investments 1.73%Reverse Repos/CBLOs 2.99%Net Current Assets -2.67%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 BSE Small Cap Index

NAV (Growth) per unit(as on 29.02.12)

` 9.0848


` 10,000` 1,000 (SIP)


Statistical RatiosStandard Deviation 1.16%R-Squared 0.871Beta (Slope) 0.962Sharpe Ratio -0.037Annualised Expense Ratio from 01 April 2011 onwards 2.50%Portfolio Turnover 0.25

Statistical ratios disclosed as per returns of the last 3 years/since inception, whichever is later.@ Including SIP/STP where applicable. $ No load in case of switches between equity schemes of HSBC Mutual Fund.

HSBC Small Cap Fund (HSCF) HSBC Mutual FundFebruary 2012

22

Date of Allotment 06-May-11Benchmark MSCI Brazil

10/40 IndexNAV (Growth) per unit(as on 29.02.12)

` 10.1031

Fund Manager Gaurav Mehrotra (dedicated fund manager for overseas investments)


` 10,000` 1,000 (SIP)


Statistical RatiosStandard Deviation 1.38%R-Squared 0.38Beta (Slope) 0.53Sharpe Ratio -0.03Annualised Expense Ratio from 01 April 2011 onwards* 1.64% (exclusive of underlying scheme’s expenses, total not exceeding 2.50% of average net assets)Portfolio Turnover 0.13

Statistical ratios disclosed as per daily returns of the last 3 years/since inception, whichever is later. @ Including SIP/STP where applicable. $ No load in case of switches between equity schemes of HSBC Mutual Fund. * Accrual & Average Net Assets are for the period 05-May-11 to 29-Feb-12.


% to NetAssets

Overseas Mutual FundHSBC GIF Brazil Equity Fund (Fund domiciled in Luxembourg) 27,824.92 97.58%

CBLOs 955.77 3.35%Net Current Assets -264.60 -0.93%Total Net Assets as on 29 February 2012 28,516.09 100.00%

Asset AllocationOverseas Mutual Fund 97.58%Reverse Repos/CBLOs 3.35%Net Current Assets -0.93%Total Net Assets 100.00%

Performance* (%) as on 30 August 2011

HBFMSCI-Brazil

10/40 IndexSince Inception -8.11 -5.56* Past performance may or may not be sustained in the future. Returns less than 1 year are absolute. Returns equal to or greater than 1 year are compounded annualized. ‘Since inception’ returns are calculated on ` 10 invested at inception. Calculations are based on Growth NAVs.

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) HSBC Mutual FundFebruary 2012

23

Name of Scheme Fund Manager

HSBC Equity Fund Tushar Pradhan (from 29 September 2011)

HSBC India Opportunities Fund Tushar Pradhan (from 29 September 2011)

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 Tushar Pradhan (from 29 September 2011)

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

HSBC Emerging Markets Fund Gaurav Mehrotra (from 27 October 2010)

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

HSBC Brazil Fund Gaurav Mehrotra (from 06 May 2011)

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 SachdevSenior Vice President & Fund Manager EquitiesB.Com., ACA, Grad CWA, Diploma in Foreign Trade Management (DFTM)

Experience:Over 13 years experience in Equity Research. This involved analysing various sectors and companies and presenting investment ideas to fund managers 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 l Probity Research & Services Ltd (India Infoline Ltd) Research Analyst from November 1998 to May 1999 l Ford Brothers Capital Services (P) Ltd Manager Research from July 1996 to Sept 1998

Fund Managers - Equity HSBC Mutual FundFebruary 2012

24

Gaurav MehrotraAssociate Vice President & Co-Fund Manager for overseas investmentsPost Graduate Diploma in Business Management, Bachelor of Engineering

Experience:Over 5 years experience in research. l HSBC Asset Management (India) Private Ltd Associate Vice president from September 2007 to present l JPMorgan Services India Private Ltd Equity Research from August 2005 to September 2007 l Tata Consultancy Services Ltd Business Analyst from June 2004 to July 2005

Aditya KhemaniAssociate Vice President and Assistant Fund Manager, EquitiesB.Com. (Hons.), Post Graduate Diploma in Business Management

Experience:Over 6 years experience in research. l 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 l SBI Funds Management India Private Ltd Senior Manager - Equity Research from March 2007 to September 2007 l Prudential ICICI Asset Management Company India Private Ltd Assistant Manager - Equity Research from December 2005 to February 2007 l Morgan Stanley Advantage Services India Private Ltd Research Associate from May 2005 to November 2005

Fund Managers - Equity HSBC Mutual FundFebruary 2012

25

Funds Managed by Tushar Pradhan.

Comparative Performance of Equity Schemes HSBC Mutual FundFebruary 2012

HSBC Equity Fund Date of Inception : 10 Dec 02Scheme Name & Benchmarks Jan'11 -

Dec'11Jan'10 - Dec'10

Jan'09 - Dec'09

Since Inception

HSBC Equity Fund - Growth -22.33% 18.00% 58.55% 26.86%BSE200 (Scheme Benchmark) -26.40% 16.22% 88.51% 42.03%S&P Nifty (Standard Benchmark) -24.21% 17.95% 75.76% 36.95%` 10,000, if invested in HEF, would have become `7,767 `11,800 `15,855 `109,628

` 10,000, if invested in BSE 200, would have become `7,360 `11,622 `18,851 `341,510

` 10,000, if invested in S&P Nifty, would have become `7,579 `11,795 `17,576 `236,715

HSBC India Opportunities Fund Date of Inception : 24 Feb 04Scheme Name & Benchmarks Jan'11 -


Jan'09 - Dec'09

Since Inception

HSBC India Opportunities Fund - Growth -18.37% 15.74% 60.06% 15.19%BSE 500 (Scheme Benchmark) -26.84% 16.35% 90.23% 19.91%S&P Nifty (Standard Benchmark) -24.21% 17.95% 75.76% 19.60%` 10,000, if invested in HIOF, would have become

`8,163 `11,574 `16,006 `34,990

` 10,000, if invested in BSE 500, would have become

`7,316 `11,635 `19,023 `49,917

` 10,000, if invested in S&P Nifty, would have become

`7,579 `11,795 `17,576 `48,786

26

Data for the period 01 January - 31 December has been considered in all cases, except for ‘Since Inception’ returns. ‘Since Inception’ returns are compounded annualised, rest 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 comparision purposes. Returns on `10,000 are point-to-point returns for the specific time period, invested at the start of the period.

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

HSBC Unique Opportunities Fund Date of Inception : 21 Mar 07Scheme Name & Benchmarks Jan'11 -


Jan'09 - Dec'09

Since Inception

HSBC Unique Opportunities Fund - Growth -27.19% 21.22% 72.67% -2.46%BSE200 (Scheme Benchmark) -26.40% 16.22% 88.51% 4.23%S&P Nifty (Standard Benchmark) -24.21% 17.95% 75.76% 4.78%` 10,000, if invested in HUOF, would have become

`7,281 `12,122 `17,267 `8,659


`7,360 `11,622 `18,851 `12,708


`7,579 `11,795 `17,576 `13,100


HSBC Dynamic Fund Date of Inception : 24 Sep 07Scheme Name & Benchmarks Jan'11 -


Jan'09 - Dec'09

Since Inception

HSBC Dynamic Fund - Growth -21.62% 16.13% 46.11% -3.19%BSE200 (Scheme Benchmark) -26.40% 16.22% 88.51% -2.49%S&P Nifty (Standard Benchmark) -24.21% 17.95% 75.76% -1.46%` 10,000, if invested in HDF, would have become

`7,838 `11,613 `14,611 `8,429


`7,360 `11,622 `18,851 `8,755


`7,579 `11,795 `17,576 `9,254



Comparative Performance of Equity Schemes HSBC Mutual FundFebruary 2012

27

Data for the period 01 January - 31 December has been considered in all cases, except for Since Inception returns. Since Inception returns are compounded annualised, rest 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 comparision purposes. Returns on `10,000 are point-to-point returns for the specific time period, invested at the start of the period.

HSBC Tax Saver Equity Fund Date of Inception : 05 Jan 07Scheme Name & Benchmarks Jan'11 -


Jan'09 - Dec'09

Since Inception

HSBC Tax Saver Equity Fund - Growth -23.75% 17.90% 80.08% 3.84%BSE 200 (Scheme Benchmark) -26.40% 16.22% 88.51% 2.26%S&P Nifty (Standard Benchmark) -24.21% 17.95% 75.76% 3.23%` 10,000, if invested in HTSF, would have become

`7,625 `11,790 `18,008 `12,531


`7,360 `11,622 `18,851 `11,432


`7,579 `11,795 `17,576 `12,097

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

Fund Managed by - Aditya Khemani.

HSBC Emerging Markets Fund Date of Inception : 17 Mar 08Scheme Name & Benchmarks Jan'11 -


Jan'09 - Dec'09

Since Inception

HSBC Emerging Markets Fund - Growth -14.14% 9.44% 55.44% -2.82%MSCI Emerging Market Index (Scheme Benchmark)

-15.60% 11.69% 58.32% -1.53%

S&P Nifty (Standard Benchmark) -24.21% 17.95% 75.76% 0.71%` 10,000, if invested in HEMF, would have become

`8,586 `10,944 `15,544 `8,721

` 10,000, if invested in MSCI Emerging Market Index, would have become

`8,440 `11,169 `15,832 `9,847


`7,579 `11,795 `17,576 `10,345


Fund Managed by - Gaurav Mehrotra.

HSBC Small Cap Fund Date of Inception : 24 Mar 08Scheme Name & Benchmarks Jan'11 -


Jan'09 - Dec'09

Since Inception

HSBC Small Cap Fund - Growth -46.12% 29.20% 99.47% -8.09%BSE Small Cap (Scheme Benchmark) -41.90% 15.71% 126.92% -5.34%S&P Nifty (Standard Benchmark) -24.21% 17.95% 75.76% 0.08%` 10,000, if invested in HSCF, would have become

`5,388 `12,920 `19,947 `6,687

` 10,000, if invested in BSE Smallcap, would have become

`5,810 `11,571 `22,692 `7,696


`7,579 `11,795 `17,576 `10,038


HSBC Progressive Themes Fund Date of Inception : 23 Feb 06Scheme Name & Benchmarks Jan'11 -


Jan'09 - Dec'09

Since Inception

HSBC Progressive Themes Fund - Growth -39.60% 5.88% 53.86% -3.17%BSE 200 (Scheme Benchmark) -26.40% 16.22% 88.51% 7.63%S&P Nifty (Standard Benchmark) -24.21% 17.95% 75.76% 8.72%` 10,000, if invested in HPTF, would have become

`6,040 `10,588 `15,386 `8,016


`7,360 `11,622 `18,851 `16,554


`7,579 `11,795 `17,576 `17,738


Funds Managed by - Dhiraj Sachdev.

HSBC Midcap Equity Fund Date of Inception : 19 May 05Scheme Name & Benchmarks Jan'11 -


Jan'09 - Dec'09

Since Inception

HSBC Midcap Equity Fund - Growth -42.80% 12.43% 99.15% 5.00%BSE Midcap (Scheme Benchmark) -33.44% 16.15% 107.66% 8.78%S&P Nifty (Standard Benchmark) -24.21% 17.95% 75.76% 19.98%` 10,000, if invested in HMEF, would have become

`5,720 `11,243 `19,915 `14,508

` 10,000, if invested in BSE Midcap, would have become

`6,656 `11,615 `20,766 `18,992


`7,579 `11,795 `17,576 `40,083


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 InstrumentsCPsKotak Mahindra Prime 1,454.60 5.75% [ICRA] A1+Bajaj Auto Finance 1,432.45 5.66% CRISIL A1+SREI Equipment Finance Private Limited 99.42 0.39% [ICRA] A1+CDsFixedIDBI Bank 461.25 1.82% CRISIL A1+State Bank of Patiala 348.68 1.38% [ICRA] A1+Canara Bank 276.54 1.09% CRISIL A1+Fixed DepositsHSBC Bank** 120.00 0.47% UnratedHSBC Bank** 100.00 0.40% UnratedCorporate/PSU DebtFixedShriram Transport Finance Company 1,803.01 7.13% CRISIL AAExport Import Bank of India 1,512.03 5.98% CRISIL AAAState Bank of India 951.02 3.76% CRISIL AAARural Electrification Corporation 661.96 2.62% CRISIL AAA

National Housing Bank 599.90 2.37% Fitch AAA (ind)

Power Finance Corporation 504.89 2.00% CRISIL AAAHDFC 499.56 1.98% CRISIL AAAHDFC 427.91 1.69% CRISIL AAAPower Finance Corporation 404.11 1.60% CRISIL AAANABARD 299.59 1.18% CRISIL AAAShriram Transport Finance Company 299.58 1.18% CRISIL AAPower Grid Corporation of India 296.46 1.17% CRISIL AAAPower Finance Corporation 293.56 1.16% CRISIL AAAHDFC 253.15 1.00% CRISIL AAA


NABARD 200.00 0.79% CRISIL AAARural Electrification Corporation 100.24 0.40% CRISIL AAAGovernment Securities8.79% Government Stock M - 08-Nov-2021 1,859.45 7.35% Sovereign8.19% Government Stock M - 16-Jan-2020 1,139.28 4.51% Sovereign9.15% Government Stock M - 14-Nov-2024 1,114.81 4.41% Sovereign8.97% Government Stock M - 05-Dec-2030 352.24 1.39% SovereignEquitiesListed EquityShree Cement 462.25 1.83%Infosys 423.58 1.67%HDFC Bank 423.14 1.67%ICICI Bank 374.30 1.48%Tata Consultancy Services 328.70 1.30%Bharti Airtel 317.98 1.26%GlaxoSmithkline Consumer Healthcare 286.39 1.13%Amara Raja Batteries 282.43 1.12%Oil & Natural Gas Corporation 263.88 1.04% N.A.Bank of Baroda 252.46 1.00%Vardhman Textiles 233.03 0.92%Bajaj Auto 217.99 0.86%I T C 212.84 0.84%Jindal Steel and Power 194.06 0.77%Sun TV Network 188.81 0.75%Aurobindo Pharma 183.17 0.72%Cadila Healthcare 181.26 0.72%Bharat Petroleum Corporation 178.81 0.71%Karur Vysya Bank 175.89 0.70%Titan Industries 175.87 0.70%

HSBC MIP - Savings Plan (HMIP-S) HSBC Mutual FundFebruary 2012

28

Date of Allotment 24-Feb-04Benchmark CRISIL MIP

Blended IndexNAV (Growth) per unit(as on 29.02.12)

` 20.1845

Average Maturity of Portfolio

54.16 months

Modified Durationof Portfolio

35.85 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 `1,000Exit Load@ 1% - if redeemed/

switched out within 1 year from date of investment.

Annualised Expense Ratio from 01 April 2011 onwards 2.00%

@ Including SIP/STP where applicable.

** Fixed deposits are placed as Margin Deposit for Futures, Options and Equities. ^^ Indicates thinly traded / non traded and illiquid securities as defined in SEBI Regulations and Guidelines. Asset AllocationMoney Market Instruments 16.11%Fixed Deposits 0.87%Corporate/ PSU Debt 36.80%Government Securities 17.66%Cash Equivalents 1.37%Net Current Assets 2.64%Other Equity Investments 24.56%Total Net Assets 100.00%

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

McLeod Russel India 169.24 0.67%Orient Paper & Industries 158.60 0.63%Punjab National Bank 151.57 0.60%Sanghvi Movers 147.24 0.58% N.A.Mahindra and Mahindra 139.84 0.55%Hindustan Door-Oliver 76.16 0.30%Vardhman Special Steels^^ 10.37 0.04%Total 95.99%Cash EquivalentsCBLOs 346.40 1.37%Net Current Assets 667.01 2.64%Total Net Assets as on 29 February 2012 25,288.96 100.00%

Rating ProfileAAA 44.59%AA+/ AA-/ AA 8.31%Sovereign 17.66%Unrated 0.87%Other Equity Investments 24.56%Reverse Repo/CBLOs 1.37%Net Current Assets 2.64%Total Net Assets 100.00%

HSBC MIP - Savings Plan (HMIP-S) HSBC Mutual FundFebruary 2012

29





HSBC MIP - Savings Plan - Monthly Dividend28-Oct-11 0.03083 0.02643 11.296327-Jan-12 0.03524 0.03020 11.401124-Feb-12 0.03964 0.03398 11.6650HSBC MIP - Savings Plan - Quarterly Dividend17-Jun-11 0.13214 0.11325 11.682416-Sep-11 0.13214 0.11325 11.597516-Dec-11 0.13214 0.11325 11.3370

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 InstrumentsCPsBajaj Auto Finance 954.97 7.93% CRISIL A1+Kotak Mahindra Prime 387.89 3.22% [ICRA] A1+CDsFixedICICI Bank 497.09 4.13% [ICRA] A1+State Bank of Patiala 277.40 2.30% [ICRA] A1+Fixed DepositsHSBC Bank** 100.00 0.83% UnratedCorporate/PSU DebtFixed

National Housing Bank 1,000.04 8.30% Fitch AAA (ind)

Export Import Bank of India 926.73 7.69% CRISIL AAAShriram Transport Finance Company 701.17 5.82% CRISIL AAPower Finance Corporation 684.96 5.69% CRISIL AAAHDFC 506.31 4.20% CRISIL AAAState Bank of India 317.01 2.63% CRISIL AAARural Electrification Corporation 299.95 2.49% CRISIL AAAPower Finance Corporation 201.96 1.68% CRISIL AAA


Power Grid Corporation of India 197.64 1.64% CRISIL AAARural Electrification Corporation 100.24 0.83% CRISIL AAAHDFC 99.91 0.83% CRISIL AAAGovernment Securities8.79% Government Stock M - 08-Nov-2021 1,002.44 8.32% Sovereign9.15% Government Stock M - 14-Nov-2024 810.77 6.73% Sovereign8.19% Government Stock M - 16-Jan-2020 462.68 3.84% Sovereign8.97% Government Stock M - 05-Dec-2030 165.76 1.38% SovereignEquitiesListed EquityICICI Bank 117.82 0.98%HDFC Bank 109.99 0.91%Tata Consultancy Services 109.98 0.91%Shree Cement 99.56 0.83%Infosys 98.33 0.82%Bharti Airtel 86.15 0.72%I T C 77.87 0.65%Bank of Baroda 77.54 0.64% N.A.Bajaj Auto 64.86 0.54%Amara Raja Batteries 63.49 0.53%Grasim Industries 58.20 0.48%GlaxoSmithkline Consumer Healthcare 55.19 0.46%Bharat Petroleum Corporation 52.98 0.44%Jindal Steel and Power 52.45 0.44%Oil & Natural Gas Corporation 49.84 0.41%Mahindra and Mahindra 48.27 0.40%Titan Industries 47.96 0.40%McLeod Russel India 43.21 0.36%

HSBC MIP - Regular Plan (HMIP-R) HSBC Mutual FundFebruary 2012

30

Date of Allotment 24-Feb-04Benchmark CRISIL MIP

Blended IndexNAV (Growth) per unit(as on 29.02.12)

` 17.9013


55.52 months


37.40 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 `1,000Exit Load@ 1% - if redeemed/

switched out within 1 year from date of investment.

Annualised Expense Ratio from 01 April 2011 onwards 2.16%@ Including SIP/STP where applicable.

** Fixed deposits are placed as Margin Deposit for Futures, Options and Equities. ^^Indicates thinly traded / non traded and illiquid securities as defined in SEBI Regulations and Guidelines.. Asset AllocationMoney Market Instruments 17.58%Fixed Deposits 0.83%Corporate/ PSU Debt 43.47%Government Securities 20.27%Cash Equivalents 0.63%Net Current Assets 3.85%Other Equity Investments 13.37%Total Net Assets 100.00%

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Punjab National Bank 42.90 0.36%Sun TV Network 42.40 0.35%Orient Paper & Industries 40.11 0.33%Cadila Healthcare 36.24 0.30%Karur Vysya Bank 35.71 0.30% N.A.Aurobindo Pharma 31.91 0.26%Vardhman Textiles 29.16 0.24%Hindustan Door-Oliver 22.85 0.19%Sanghvi Movers 13.51 0.11%Vardhman Special Steels^^ 1.30 0.01%Total 95.52%Cash EquivalentsCBLOs 76.25 0.63%Net Current Assets 463.44 3.85%Total Net Assets as on 29 February 2012 12,044.36 100.00%

Rating ProfileAAA 55.23%AA+/ AA-/ AA 5.82%Sovereign 20.27%Unrated 0.83%Other Equity Investments 13.37%Reverse Repo/CBLOs 0.63%Net Current Assets 3.85%Total Net Assets 100.00%

HSBC MIP - Regular Plan (HMIP-R) HSBC Mutual FundFebruary 2012

31





HSBC MIP - Regular Plan - Monthly Dividend30-Dec-11 0.03083 0.02643 10.613827-Jan-12 0.03964 0.03398 10.773824-Feb-12 0.03964 0.03398 10.9252HSBC MIP - Regular Plan - Quarterly Dividend17-Jun-11 0.13214 0.11325 11.254416-Sep-11 0.13214 0.11325 11.220816-Dec-11 0.13214 0.11325 11.0940

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 InstrumentsCPsKotak Mahindra Prime 193.95 5.95% [ICRA] A1+CDsFixedCentral Bank of India 199.95 6.14% [ICRA] A1+Securitised DebtFixedIndia MBS 2002 Series I-D (LIC Housing Finance) PTC 41.07 1.26% CRISIL

AAA(SO)Corporate/PSU DebtFixedState Bank of India 211.34 6.49% CRISIL AAARural Electrification Corporation 206.86 6.35% CRISIL AAASundaram Finance 200.82 6.16% [ICRA] AA+Shriram Transport Finance Company 200.33 6.15% CRISIL AAHDFC 199.82 6.13% CRISIL AAANABARD 199.73 6.13% CRISIL AAAPower Finance Corporation 101.03 3.10% CRISIL AAAHDFC 101.00 3.10% CRISIL AAAPower Finance Corporation 100.98 3.10% CRISIL AAARural Electrification Corporation 100.24 3.08% CRISIL AAANABARD 100.00 3.07% CRISIL AAA


Government Securities8.79% Government Stock M - 08-Nov-2021 457.07 14.03% Sovereign8.19% Government Stock M - 16-Jan-2020 208.95 6.41% Sovereign9.15% Government Stock M - 14-Nov-2024 165.35 5.08% Sovereign5.59% Government Stock M - 04-Jun-2016 0.36 0.01% SovereignTotal 94.81%Cash EquivalentsCBLOs 70.13 2.15%Reverse Repos 41.34 1.27%Net Current Assets 57.69 1.77%Total Net Assets as on 29 February 2012 3,258.00 100.00%

HSBC Income Fund - Investment Plan (HIF-IP) HSBC Mutual FundFebruary 2012

32

Date of Allotment 10-Dec-02Benchmark CRISIL Composite

Bond Fund IndexNAV (Growth) per unit(as on 29.02.12)

` 18.3174


59.81 months


40.15 months

Fund Manager Ruchir Parekh &Sanjay Shah

SIP AvailableMinimum Application AmountRegular `10,000Institutional `50,00,000SIP `1,000Exit Load@ Regular and Insti-

tutional Options: 0.5% - if redeemed/switched out within 6 months from date of investment

Annualised Expense Ratio from 01 April 2011 onwards Regular 1.85%


Asset AllocationMoney Market Instruments 12.09%Securitised Debt 1.26%Corporate / PSU Debt 55.93%Government Securities 25.53%Cash Equivalents 3.42%Net Current Assets 1.77%





HSBC Income Fund - Investment Plan - Regular Option - Quarterly Dividend17-Jun-11 0.13214 0.11325 11.094416-Sep-11 0.13214 0.11325 11.200616-Dec-11 0.13214 0.11325 11.3608HSBC 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 56.97%AA 12.31%Sovereign 25.53%Reverse Repos/ CBLOs 3.42%Net Current Assets 1.77%

HSBC Income Fund - Investment Plan (HIF-IP) HSBC Mutual FundFebruary 2012

33

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 InstrumentsCPsKotak Mahindra Prime 2,230.38 4.02% [ICRA] A1+

CDsFixedIndian Overseas Bank 2,314.96 4.17% [ICRA] A1+

Oriental Bank of Commerce 2,310.41 4.17% CRISIL A1+

Indian Overseas Bank 2,307.64 4.16% [ICRA] A1+

Axis Bank 2,287.47 4.13% CRISIL A1+

Canara Bank 2,275.46 4.10% CRISIL A1+

State Bank of Patiala 2,034.29 3.67% [ICRA] A1+

Central Bank of India 1,827.29 3.30% CARE A1+

Corporation Bank 1,814.28 3.27% CRISIL A1+

Canara Bank 1,751.43 3.16% CRISIL A1+

Punjab National Bank 1,641.37 2.96% [ICRA] A1+

IDBI Bank 1,383.75 2.50% CRISIL A1+

Central Bank of India 1,299.67 2.34% [ICRA] A1+

Corporation Bank 797.38 1.44% CRISIL A1+

United Bank of India 502.63 0.91% CARE A1+

Indian Overseas Bank 320.33 0.58% [ICRA] A1+

State Bank of Hyderabad 169.18 0.31% [ICRA] A1+

Corporate/PSU DebtFixedExport Import Bank of India 2,502.25 4.51% CRISIL AAA


HDFC 2,499.45 4.51% CRISIL AAA

Shriram Transport Finance Company 2,196.92 3.96% CRISIL AA

Shriram Transport Finance Company 2,003.35 3.61% CRISIL AA

Sundaram Finance 1,807.35 3.26% [ICRA] AA+


NABARD 1,497.94 2.70% CRISIL AAA

Sundaram Finance 1,037.23 1.87% [ICRA] AA+

Rural Electrification Corporation 1,002.44 1.81% CRISIL AAA

NABARD 999.70 1.80% CRISIL AAA


Rural Electrification Corporation 996.22 1.80% CRISIL AAA

NABARD 995.67 1.80% CRISIL AAA

HDFC 994.08 1.79% CRISIL AAA

Shriram Transport Finance Company 700.33 1.26% CRISIL AA




Total 95.48%

HSBC Income Fund - Short Term Plan (HIF-STP) HSBC Mutual FundFebruary 2012

34

Core MTM (% to Net Assets)** 91.71

** Core MTM would mean bonds / instruments which have residual maturity greater than 3 months and are valued as per CRISIL Bond Valuer. Core MTM is as on 29 February, 2012.

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


` 17.8153


16.09 months


13.74 months

Fund Manager Ruchir Parekh &Sanjay Shah

SIP AvailableMinimum Application AmountRegular `1,00,000Institutional `1,00,00,000Institutional plus `5,00,00,000SIP `1,000Exit Load@ Regular, Institutional

& Institutional Plus Option – 0.50% if redeemed / switched out within 6 months from the date of investment.

Annualised Expense Ratio from 01 April 2011 onwards Regular 1.00%Institutional 0.70%Institutional Plus 0.60%


Asset AllocationMoney Market Instruments 49.18%Corporate / PSU Debt 46.30%Cash Equivalents 1.91%Net Current Assets 2.61%

Rating ProfileAAA 81.51%AA 13.97%Reverse Repos/ CBLOs 1.91%Net Current Assets 2.61%





HSBC Income Fund - Short Term Plan - Regular Option - Monthly Dividend30-Dec-11 0.07882 0.06756 11.033827-Jan-12 0.06296 0.05396 11.009624-Feb-12 0.06110 0.05237 11.0049HSBC Income Fund - Short Term Plan - Institutional Option - Monthly Dividend30-Dec-11 0.07837 0.06717 10.588727-Jan-12 0.06253 0.05360 10.564724-Feb-12 0.06073 0.05205 10.5603HSBC 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) HSBC Mutual FundFebruary 2012

35

Cash EquivalentsCBLOs 665.76 1.20%Reverse Repos 392.45 0.71%Net Current Assets 1,449.84 2.61%Total Net Assets as on 29 February 2012 55,450.16 100.00%

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 InstrumentsCPsSREI Equipment Finance Private Limited 5,965.16 14.80% [ICRA] A1+Sundaram Finance 4,994.76 12.39% [ICRA] A1+Indian Oil Corporation 3,282.94 8.14% CRISIL A1+Tata Capital 2,995.28 7.43% [ICRA] A1+Tata Capital 2,487.55 6.17% [ICRA] A1+ICICI Securities Primary Dealership 2,435.46 6.04% CRISIL A1+HDFC 2,300.00 5.70% [ICRA] A1+CDsFixedAllahabad Bank 4,271.75 10.60% CRISIL A1+Canara Bank 2,487.97 6.17% CRISIL A1+Andhra Bank 2,487.69 6.17% [ICRA] A1+UCO Bank 2,483.24 6.16% CRISIL A1+UCO Bank 1,794.76 4.45% CRISIL A1+Vijaya Bank 996.02 2.47% [ICRA] A1+Bank of India 797.17 1.98% CRISIL A1+Kotak Mahindra Bank 598.16 1.48% CRISIL A1+ING Vysya Bank 585.22 1.45% CRISIL A1+Punjab National Bank 498.99 1.24% CARE A1+Indian Bank 244.65 0.61% Fitch A1+Total 103.45%Cash EquivalentsCBLOs 718.45 1.78%Reverse Repos 423.51 1.05%Net Current Assets -2,532.70 -6.28%Total Net Assets as on 29 February 2012 40,316.03 100.00%

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

HSBC Mutual FundFebruary 2012

36

Core MTM (% to Net Assets)** 0.00

** Core MTM would mean bonds / instruments which have residual maturity greater than 3 months and are valued as per CRISIL Bond Valuer. Core MTM is as on 29 February, 2012.

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

IndexNAV (Growth) per unit(as on 29.02.12)

` 16.1798


0.77 months


0.70 months

Fund Manager Sanjay Shah &Kedar Karnik

SIP AvailableMinimum Application AmountRegular `10,000Institutional `50,00,000SIP `1,000Exit Load@ Nil

Annualised Expense Ratio from 01 April 2011 onwards Regular 1.00% Institutional 0.30% @ Including SIP/STP where applicable.

Asset AllocationMoney Market Instruments 103.45%Cash Equivalents 2.83%Net Current Assets -6.28%





HSBC Floating Rate Fund - Long Term Plan - Regular Option - Monthly Dividend30-Dec-11 0.07093 0.06079 10.080527-Jan-12 0.05810 0.04980 10.066024-Feb-12 0.05830 0.04997 10.0662HSBC Floating Rate Fund - Long Term Plan - Institutional Option - Monthly Dividend30-Dec-11 0.59140 0.50689 10.806327-Jan-12 0.06369 0.05459 10.207324-Feb-12 0.06389 0.05476 10.2075

Rating ProfileAAA 103.45%Reverse Repos/ CBLOs 2.83%Net Current Assets -6.28%

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

HSBC Mutual FundFebruary 2012

37

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.

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Money Market InstrumentsCPsTata Capital 1,996.85 6.79% [ICRA] A1+Indian Oil Corporation 1,691.21 5.75% CRISIL A1+SREI Equipment Finance Private Limited 1,391.87 4.73% [ICRA] A1+HDFC 200.00 0.68% [ICRA] A1+CDsFixedPunjab National Bank 1,995.96 6.79% CARE A1+Kotak Mahindra Bank 1,894.17 6.44% CRISIL A1+Corporation Bank 1,694.43 5.76% CRISIL A1+Bank of India 1,693.99 5.76% CRISIL A1+Indian Bank 1,614.69 5.49% Fitch A1+Vijaya Bank 1,494.04 5.08% [ICRA] A1+ING Vysya Bank 1,267.97 4.31% CRISIL A1+Allahabad Bank 695.49 2.37% CRISIL A1+Total 59.96%Cash EquivalentsCBLOs 6,918.02 23.53%Reverse Repos 4,078.01 13.87%Net Current Assets 776.09 2.64%Total Net Assets as on 29 February 2012 29,402.79 100.00%

HSBC Cash Fund (HCF) HSBC Mutual FundFebruary 2012

38

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


` 16.8368


0.54 months


0.48 months

Fund Manager Ruchir Parekh &Kedar Karnik

SIP AvailableMinimum Application AmountRegular `1,00,000Institutional `50,00,000Institutional plus `5,00,00,000SIP `1,000Exit Load@ Nil

Annualised Expense Ratio from 01 April 2011 onwardsRegular 0.75% Institutional 0.60%Institutional Plus 0.35% @ Including SIP/STP where applicable.





HSBC Cash Fund - Institutional Option - Monthly Dividend30-Dec-11 0.06535 0.06268 10.604327-Jan-12 0.05304 0.05087 10.588724-Feb-12 0.05271 0.05056 10.5883HSBC Cash Fund - Institutional Plus Option - Monthly Dividend26-Aug-11 0.04886 0.04686 10.138329-Sep-11 0.05876 0.05636 10.150928-Oct-11 0.05244 0.05030 10.1428

Asset AllocationMoney Market Instruments 59.96%Cash Equivalents 37.40%Net Current Assets 2.64%

Rating ProfileAAA 59.96%Reverse Repos/ CBLOs 37.40%Net Current Assets 2.64%

Core MTM (% of Net Assets)* 0.00*The MTM % disclosed is the weekly average for the week ended 29 February, 2012.

HSBC Cash Fund (HCF) HSBC Mutual FundFebruary 2012

39

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


` 13.6255


86.69 months


56.27 months

Fund Manager Sanjay ShahSIP AvailableMinimum ` 10,000Application ` 1,000 (SIP)AmountExit Load@ 0.5% if redeemed /

switched out within6 months from date of investment.

Annualised Expense Ratio from 01 April 2011 onwards 0.75%@ Including SIP/STP where applicable.

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 Securities8.79% Government Stock M - 08-Nov-2021 57.13 45.95% Sovereign8.19% Government Stock M - 16-Jan-2020 24.88 20.01% Sovereign9.15% Government Stock M - 14-Nov-2024 10.67 8.58% SovereignTotal 74.54%Cash EquivalentsCBLOs 7.90 6.35%Reverse Repos 4.66 3.74%Net Current Assets 19.11 15.37%Total Net Assets as on 29 February 2012 124.34 100.00%





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 74.54%Cash Equivalents 10.10%Net Current Assets 15.37%

Rating ProfileSovereign 74.54%Reverse Repos/ CBLOs 10.10%Net Current Assets 15.37%

HSBC Gilt Fund (HGF) HSBC Mutual FundFebruary 2012

40

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 InstrumentsCDsFixedUCO Bank 697.96 11.51% CRISIL A1+Indian Bank 587.16 9.68% Fitch A1+ING Vysya Bank 585.22 9.65% CRISIL A1+Total 30.83%Cash EquivalentsCBLOs 2,426.90 40.01%Reverse Repos 1,430.60 23.58%Net Current Assets 338.36 5.58%Total Net Assets as on 29 February 2012 6,066.20 100.00%

HSBC Ultra Short Term Bond Fund (HUSBF) HSBC Mutual FundFebruary 2012

41

Core MTM (% to Net Assets)** 0.00** Core MTM would mean bonds instruments which have residual maturity greater than 3 months and are valued as per CRISIL Bond Valuer. Core MTM is as on 29 February, 2012.Date of Allotment 17-Oct-06Benchmark Customised

Benchmark Index**NAV (Growth) per unit(as on 29.02.12)

` 14.0844


0.62 months


0.55 months

Fund Manager Sanjay Shah &Kedar Karnik

SIP AvailableMinimum Application AmountRegular `10,000Institutional `50,00,000Institutional plus `5,00,00,000SIP `1,000Exit Load@ Regular, Institu-

tional and Institu-tional Plus Options : 0.25% - ifredeemed/switched out within 15 days from date of allotment

Annualised Expense Ratio from 01 April 2011 onwards Regular 1.30% Institutional 1.05%Institutional Plus 0.40%

@ Including SIP/STP where applicable.** Composite index of CRISIL Liquid Fund Index(90%) and CRISIL Short Term Bond Fund Index(10%).

Asset AllocationMoney Market Instruments 30.83%Cash Equivalents 63.59%Net Current Assets 5.58%

Rating ProfileAAA 30.83%Reverse Repos/ CBLOs 63.59%Net Current Assets 5.58%





HSBC Ultra Short Term Bond Fund - Institutional Option - Monthly Dividend30-Dec-11 0.05507 0.04720 10.201027-Jan-12 0.05209 0.04464 10.197624-Feb-12 0.02637 0.02260 10.1684HSBC 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) HSBC Mutual FundFebruary 2012

42

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.

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Money Market InstrumentsCPsKotak Mahindra Prime 581.84 3.78% [ICRA] A1+CDsFixedCentral Bank of India 999.75 6.50% [ICRA] A1+Punjab National Bank 638.31 4.15% [ICRA] A1+IDBI Bank 461.25 3.00% CRISIL A1+Central Bank of India 456.82 2.97% CARE A1+Corporation Bank 453.57 2.95% CRISIL A1+Canara Bank 276.54 1.80% CRISIL A1+Corporate/PSU DebtFixedRural Electrification Corporation 899.85 5.85% CRISIL AAA


Power Finance Corporation 505.13 3.28% CRISIL AAAHDFC 505.00 3.28% CRISIL AAASundaram Finance 502.04 3.26% [ICRA] AA+NABARD 499.31 3.25% CRISIL AAAShriram Transport Finance Company 300.50 1.95% CRISIL AAShriram Transport Finance Company 300.14 1.95% CRISIL AA


HDFC 253.15 1.65% CRISIL AAAPower Finance Corporation 201.96 1.31% CRISIL AAARural Electrification Corporation 200.49 1.30% CRISIL AAANABARD 200.00 1.30% CRISIL AAAHDFC 199.82 1.30% CRISIL AAAHDFC 106.98 0.70% CRISIL AAAState Bank of India 105.67 0.69% CRISIL AAAGovernment Securities8.79% Government Stock M - 08-Nov-2021 1,817.90 11.82% Sovereign8.19% Government Stock M - 16-Jan-2020 1,149.23 7.47% Sovereign9.15% Government Stock M - 14-Nov-2024 1,098.80 7.14% SovereignTotal 88.49%Cash EquivalentsCBLOs 632.25 4.11%Reverse Repos 372.70 2.42%Net Current Assets 765.25 4.97%Total Net Assets as on 29 February 2012 15,384.18 100.00%

HSBC Flexi Debt Fund (HFDF) HSBC Mutual FundFebruary 2012

43

Date of Allotment 05-Oct-07Benchmark CRISIL Composite


` 14.3398


52.22 months


35.50 months

Fund Manager Sanjay Shah &Ruchir Parekh

SIP AvailableMinimum Application AmountRegular `10,000Institutional `50,00,000SIP `1,000Exit Load@ Regular &

Institutional Option – 0.50% - if redeemed/ switched out within 6 months from the date of investment.

Annualised Expense Ratio from 01 April 2011 onwards Regular 1.85%Institutional 1.51% @ Including SIP/STP where applicable.





HSBC Flexi Debt Fund - Regular Option - Monthly Dividend30-Dec-11 0.15538 0.13318 10.478327-Jan-12 0.06409 0.05493 10.374724-Feb-12 0.06710 0.05751 10.3781HSBC Flexi Debt Fund - Institutional Option - Monthly Dividend30-Dec-11 0.16203 0.13887 10.716027-Jan-12 0.06803 0.05830 10.609324-Feb-12 0.07111 0.06095 10.6128HSBC Flexi Debt Fund - Regular Option - Quarterly Dividend17-Jun-11 0.13214 0.11325 11.323516-Sep-11 0.13214 0.11325 11.425016-Dec-11 0.13214 0.11325 11.5995HSBC Flexi Debt Fund - Institutional Option - Quarterly Dividend17-Jun-11 0.13214 0.11325 11.183916-Sep-11 0.13214 0.11325 11.292116-Dec-11 0.13214 0.11325 11.4727HSBC Flexi Debt Fund - Regular Option - Half Yearly Dividend17-Sep-10 0.10541 0.09824 10.488018-Mar-11 0.10541 0.09824 10.665416-Sep-11 0.22023 0.18876 11.0178

Asset AllocationMoney Market Instruments 25.14%Corporate / PSU Debt 36.92%Government Securities 26.43%Cash Equivalents 6.53%Net Current Assets 4.97%

Rating ProfileAAA 54.90%AA 7.17%Sovereign 26.43%Reverse Repos/ CBLOs 6.53%Net Current Assets 4.97%

HSBC Flexi Debt Fund (HFDF) HSBC Mutual FundFebruary 2012

44

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) &Kedar Karnik (from 11 January 2010)

HSBC Cash Fund Ruchir Parekh (from 25 January 2011) &Kedar Karnik (from 11 January 2010)

HSBC Gilt Fund Sanjay Shah (from 09 January 2009)

HSBC Ultra Short Term Bond Fund

Sanjay Shah (from 09 January 2009) &Kedar Karnik (from 18 December 2008)

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

Fund Manager’s Experience

Sanjay ShahSenior Vice President & Fund Manager - Fixed Income B. Com, A.C.A., Post Graduate Diploma in Management

Experience:Over 12 years of experience in Risk. 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 September 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

Fund Managers - MIP & Debt HSBC Mutual FundFebruary 2012

45

Ruchir ParekhSenior Vice President & Fund Manager - Fixed IncomeMBA, B.Com

Experience:Over 13 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

Kedar KarnikAssociate Vice President & Assistant Fund Manager - Fixed Income M.M.S. (Finance), B.E.

Experience:Over 6 years experience in research and credit rating. l HSBC Asset Management (India) Private Ltd Associate Vice President & Assistant Fund Manager - Fixed Income from December 2008 to present l HSBC Asset Management (India) Private Ltd Associate Vice President & Credit Analyst from July 2008 to December 2008 l CRISIL Ltd Manager – Financial Sector Ratings from September 2005 to July 2008 l ICICI Bank Ltd Management Trainee from May 2005 to September 2005

Fund Managers - MIP & Debt HSBC Mutual FundFebruary 2012

46

Comparative Performance of Debt Schemes HSBC Mutual FundFebruary 2012

47

Data for the period 01 January - 31 December has been considered in all cases, except for ‘Since Inception’ returns. ‘Since Inception’ returns are compounded annualised, rest are simple annualised. ‘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 comparision purposes. Returns on `10,000 are point-to-point returns for the specific time period, invested at the start of the period.

HSBC MIP - Regular Plan Date of Inception : 24 Feb 04Scheme Name & Benchmarks Jan'11 -


Jan'09 - Dec'09

Since Inception

HSBC MIP - Regular Plan - Growth 1.44% 5.03% 14.04% 7.20%CRISIL MIP Blended Index (Scheme Benchmark)

1.82% 7.00% 12.99% 6.66%

CRISIL 1 Year T - Bill (Standard Benchmark) 6.40% 2.80% 2.63% 4.97%CRISIL 10 year Gilt Index (Standard Benchmark)

1.89% 2.99% -8.40% 3.89%

` 10,000, if invested in HMIP - R, would have become

`10,144 `10,503 `11,404 `17,262

` 10,000, if invested in CRISIL MIP Blended Index, would have become

`10,182 `10,700 `11,299 `16,591

` 10,000, if invested in CRISIL 1 Year T - Bill, would have become

`10,640 `10,280 `10,263 `14,632

` 10,000, if invested in CRISIL 10 year Gilt Index, would have become

`10,189 `10,299 `9,160 `13,491

HSBC MIP - Savings Plan Date of Inception : 24 Feb 04Scheme Name & Benchmarks Jan'11 -


Jan'09 - Dec'09

Since Inception

HSBC MIP - Savings Plan - Growth -1.71% 6.83% 18.44% 8.58%CRISIL MIP Blended Index (Scheme Benchmark)

1.82% 7.00% 12.99% 6.66%

CRISIL 1 Year T-Bill Index (Standard Benchmark)

6.40% 2.80% 2.63% 4.97%

CRISIL 10 Year Gilt Index (Standard Benchmark)

1.89% 2.99% -8.40% 3.89%

`10,000, if invested in HMIP - S, would have become

`9,829 `10,683 `11,844 `19,086

`10,000, if invested in CRISIL MIP Blended Index, would have become

`10,182 `10,700 `11,299 `16,591

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

`10,640 `10,280 `10,263 `14,632

`10,000, if invested in CRISIL 10 Year Gilt Index, would have become

`10,189 `10,299 `9,160 `13,491

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



HSBC Flexi Debt Fund Date of Inception: 05 Oct 07Scheme Name & Benchmarks Jan'11 -


Jan'09 - Dec'09

Since Inception

HSBC Flexi Debt Fund - Ret - Growth 9.25% 4.51% -0.38% 8.50%CRISIL Composite Bond Fund Index (SchemeBenchmark)

6.92% 4.96% 3.50% 6.30%

CRISIL 10 Year Gilt Index (StandardBenchmark)

1.89% 2.99% -8.40% 5.54%

`10,000, if invested in HFDF, would havebecome

`10,925 `10,451 `9,962 `14,131

`10,000, if invested in CRISIL Composite Bond Fund Index, would have become

`10,692 `10,496 `10,350 `12,956

`10,000, if invested in CRISIL 10 Year GiltIndex, would have become

`10,189 `10,299 `9,160 `12,567


Fund Managed by - Sanjay Shah & Ruchir Parekh.


48


HSBC Gilt Fund Date of Inception : 05 Dec 03Scheme Name & Benchmarks Jan'11 -


Jan'09 - Dec'09

Since Inception

HSBC Gilt Fund - Growth 8.94% 6.92% -5.76% 3.66%I-Sec Composite Bond Fund Index (Scheme Benchmark)

6.62% 5.90% -2.92% 6.12%


1.89% 2.99% -8.40% 3.88%

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

`10,894 `10,692 `9,424 `13,367

`10,000, if invested in I-Sec Composite Bond Fund Index, would have become

`10,662 `10,590 `9,708 `16,169


`10,189 `10,299 `9,160 `13,603

Fund Managed by - Sanjay Shah.


47

HSBC FRF - LTP - Regular Plan Date of Inception : 16 Nov 04Scheme Name & Benchmarks Jan'11 -


Jan'09 - Dec'09

Since Inception

HSBC FRF - LTP - Regular Plan - Growth 8.30% 4.75% 5.40% 6.75%CRISIL Liquid Fund Index (Scheme Benchmark)

8.17% 5.12% 4.86% 6.36%


6.40% 2.80% 2.63% 5.21%

`10,000, if invested HFRF - LTP, would have become

`10,830 `10,475 `10,540 `16,701

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

`10,817 `10,512 `10,486 `16,228


`10,640 `10,280 `10,263 `14,362

Funds Managed by - Sanjay Shah & Kedar Karnik.


HSBC Ultra Short Term Bond Fund Date of Inception : 17 Oct 06Scheme Name & Benchmarks Jan'11 -


Jan'09 - Dec'09

Since Inception

HSBC Ultra Short Term Bond Fund - Regular - Growth

7.28% 4.38% 4.49% 6.61%

Customised Benchmark Index Fund (Scheme Benchmark)

8.14% 5.08% 5.04% 6.82%

CRISIL 1 Year T - Bill Index (Standard Benchmark)

6.40% 2.80% 2.63% 5.21%

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

`10,728 `10,438 `10,449 `13,954

` 10,000, if invested in Customised Benchmark Index, would have become

`10,814 `10,508 `10,504 `14,098

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

`10,640 `10,280 `10,263 `13,028



49


HSBC Income Fund - Invtt Plan Date of Inception : 10 Dec 02Scheme Name & Benchmarks Jan'11 -


Jan'09 - Dec'09

Since Inception

HSBC Income Fund - Invtt Plan - Reg - Growth

8.90% 4.74% -0.08% 6.70%

CRISIL Composite Bond Fund Index (Scheme Benchmark)

6.92% 4.96% 3.50% 5.41%


1.89% 2.99% -8.40% 4.96%

`10,000, if invested in HIF - IP, would have become

`10,890 `10,474 `9,992 `17,996

`10,000, if invested in CRISIL Composite Bond Fund Index, would have become

`10,692 `10,496 `10,350 `16,118


`10,189 `10,299 `9,160 `15,502

HSBC Income Fund - S T P Date of Inception : 10 Dec 02Scheme Name & Benchmarks Jan'11 -


Jan'09 - Dec'09

Since Inception

HSBC Income Fund - S T P - Reg - Growth 8.88% 4.28% 6.74% 6.44%CRISIL Short Term Bond Fund Index (Scheme Benchmark)

7.87% 4.70% 6.58% 6.08%


6.40% 2.80% 2.63% 5.02%

`10,000, if invested in HIF -ST, would have become

`10,888 `10,428 `10,674 `17,603

`10,000, if invested in CRISIL Short Term Bond Fund Index, would have become

`10,787 `10,470 `10,658 `17,071


`10,640 `10,280 `10,263 `15,586

Funds Managed by - Ruchir Parekh & Sanjay Shah



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

Last 7 Days as on

30 Dec 2011

Last 15 Days as on

30 Dec 2011

Last 30 Days as on

30 Dec 2011

Jan'11 - Dec'11

Jan'10 - Dec'10

Jan'09 - Dec'09

Since Inception

HSBC Cash Fund - Growth

8.02% 8.14% 8.08% 7.68% 4.30% 2.63% 5.75%

CRISIL Liquid Fund Index (Scheme Benchmark)

8.90% 8.49% 8.42% 8.17% 5.12% 4.86% 5.90%

CRISIL 91 Day T-Bill Index (Standard Benchmark)

9.90% 9.57% 8.70% 6.17% 3.38% 3.07% 4.95%

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

`10,802 `10,814 `10,808 `10,768 `10,430 `10,263 `16,611

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

`10,890 `10,849 `10,842 `10,817 `10,512 `10,486 `16,826

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

`10,990 `10,957 `10,870 `10,617 `10,338 `10,307 `15,508

Fund Managed by - Ruchir Parekh & Kedar Karnik.


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.

© Copyright. HSBC Asset Management (India) Private Ltd 2012, ALL RIGHTS RESERVED.

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.

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