january 2013 - hsbc · 2.2% respectively during january 2013. the central government took a bold...

January 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 January 2013

2

Equity & MIP

Market UpdateThe equity market continued on the positive momentum provided by the latter part of 2012. The market indices BSE Sensex & Nifty were up 2.4% & 2.2% respectively during January 2013. The central government took a bold step of partly de-regulating diesel prices and this improved the confidence of investors at large. The decision allows the Oil Marketing Companies (OMCs) to raise diesel prices by a small margin every month, with an aim to bridge the current under recovery in the fuel pricing. This reform is the most significant announcement of the recent past as it will act as a shot in the arm for the government in its battle to contain the fiscal deficit by bringing down the fuel subsidy. In another positive market development, the Reserve Bank of India (RBI) decided to reduce the benchmark repo rate by 25 bps and also further reduced the Cash Reserve Ratio (CRR) by a similar quantum. While the market expectations were in-line with such a move, the commentary which followed the RBI policy meet appeared hawkish and it was gauged that the Central Bank is not in a hurry to embark on the rate easing cycle yet. The corporate earnings season (third quarter) also started in a resilient manner with the larger companies posting good results.

While the market indices gained, the Mid & Small cap segments appeared weak in the trade. BSE Midcap & BSE Smallcap underperformed the market indices and ended lower losing 2% & 4.1% during the month. Amongst the sectors, Information Technology, Oil & Gas, Telecom & Realty were the best performers while Metals, Auto & Cement sectors were the laggards.

The Foreign Institutional Investors (FIIs) appeared to be in top gear during the month having bought Indian equities worth USD 4.1 bn net (cash segment). The Domestic Institutional Investors (DIIs) were however notably weighed down by redemption pressures from their investors and continued with their trend of being on the other side of the trade, selling to the tune of USD 3.2 billion net.

As per the macro data released during the month, India’s trade deficit for Dec 2012 narrowed marginally to USD 17.7 bn (a drop of 8% MoM). The annualized trade deficit as a proportion of the GDP was recorded at -11.6% (versus -12.6% for the previous month). However exports in Dec 2012 fell by 1.9% (YoY) and the import bill rose 6.3% for the month (YoY). While the drop in trade deficit is positive at the margin, the key is to keep up with the declining trend in the coming months to rein in the burgeoning Current Account Deficit (CAD)

Inflation & Industrial Growth

Core inflation eases further

The headline inflation measured by the Wholesale Price Index (WPI) read at 7.2% (YoY), which remained unchanged over the previous month. There was some positive surprise on the core inflation front, which continued to ease further to 4.2% (vs. 4.5% in Nov) and almost close to the RBI comfort level of 4%. The stabilising trends in the headline & core inflation figures may have provided some comfort for the RBI to act on the rate front.

Marginal fall in trade deficit

Positive market momentum continued

Source: Bloomberg ; Central Statistical Organization (CSO) India

Source: Bombay Stock Exchange (BSE)

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

10.00%

Jul-0

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7N

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7Ja

n-08

Mar

-08

May

-08

Jul-0

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n-09

Mar

-09

May

-09

Jul-0

9S

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9N

ov-0

9Ja

n-10

Mar

-10

May

-10

Jul-1

0S

ep-1

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Mar

-11

May

-11

Jul-1

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Mar

-12

May

-12

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Repo Rate Movement

Repo Rate

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

Sensex BSE100 BSE200 BSE500 BSEMidCap

BSESmallCap

2.4% 1.9% 1.5% 1.1%

-2.0%

-4.1%

Indices Performance - January 2013

Industrial output contracts

The Index of Industrial Production (IIP) for Nov 2012 fell back into the contraction path at -0.1% (YoY), after a robust growth recorded in Oct (8.2%). The low growth was due to the higher base effect as there was an expected fall in sales after the busy festive season. The capital goods segment contracted (-7.7%), while consumer goods segment growth remained flat (YoY). Overall, the IIP growth remains sluggish & volatile without any definite positive trends emerging here.

Global Economic Scenario

US debt ceiling extension & 4Q GDP

A key global event during the month was the debt ceiling extension in the United States (US), as the House of Representatives voted effectively to delay the debt limit by another three months. This extension may lessen some near term fears of the investors but the market participants may hope for a long term solution to the issue through a political consensus rather than any further delays. The focus now shifts to the US political discussions over the other key fiscal deadlines due in February/ March and would be keenly watched by the market participants. The US 4QCY12 GDP released during the month negatively surprised with a decline of 0.1% on a sequential basis. The weaker 4QCY12 GDP was attributed to declines in the government defence spending, slower inventory building, and weak net exports. However, these factors are assumed to be temporary and the US economy is expected to grow in the normalized range during 2013.

Going ForwardIt was a strong start to the CY13 with all the positive news flows supporting the momentum sustained from a buoyant equity market performance in 2012. With all of it like the diesel price action, RBI rate cut & decent earnings season discounted for the time being, it may be a testing time for the equity market to sustain the upward trajectory. The Union Budget session shall be the next big event for the domestic markets to take cues from, as it would lay out the fiscal map for an election year. The Current Account Deficit (CAD) continues to hover around the record levels and this will surely worry policy makers & investors alike. As stated in the RBI policy note, it may be difficult to initiate a rate reversal cycle with such high CAD levels. On the other hand, if the government is able to sustain the reforms momentum by extending to growth stimulating measures such as the long pending land acquisition bill, Pension reforms, GST et al, then the equity market may be able to extend the gains. These long pending & significant reform measures may help in resurrecting the growth trajectory for the economy and revive the lost glory of the India growth story. We remain firm believers in the long term potential of the Indian economy and urge investors to remain invested and see sharp market corrections as buying opportunities for long term.

Source: Bloomberg, for all data except where mentioned otherwise


3



10.3%

10.0% 8.9%

9.0%

9.1%

8.2%

9.5%

9.5%

9.5%

9.7%

8.7%

9.1%

9.5%

9.2%

9.8% 9.7% 9.7%

9.1%

7.5% 6.6%

7.0% 6.9%

7.2% 7.60%

7.30%

6.90%

8.00% 8.10%

7.45%

7.24% 7.18% 5.0%6.0%7.0%8.0%9.0%

10.0%11.0%

Jun-

10Ju

l-10

Aug-

10Se

p-10

Oct

-10

Nov

-10

Dec

-10

Jan-

11Fe

b-11

Mar

-11

Apr-1

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ay-1

1Ju

n-11

Jul-1

1Au

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Sep-

11O

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n-12

Feb-

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-12

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Oct

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Nov

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Dec

-12

Wholesale Price Index Inflation (WPI)

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

8.5%

7.5%

10.0%

4.5%

6.2%

11.4%

6.4%

8.1%

7.5%

6.5% 8.8% 6.3%

5.9%

8.8%

3.3% 4.1%

1.9%

-5.1%

5.9%

1.8%

1.1% 4.1%

3.2%

-0.90%

2.40% -1.80%

-0.20%

2.70%

-0.40%

8.20%

-0.10% -10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

May

-10

Jun-

10Ju

l-10

Aug

-10

Sep

-10

Oct

-10

Nov

-10

Dec

-10

Jan-

11Fe

b-11

Mar

-11

Apr

-11

May

-11

Jun-

11Ju

l-11

Aug

-11

Sep

-11

Oct

-11

Nov

-11

Dec

-11

Jan-

12Fe

b-12

Mar

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-12

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-12

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-12

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 (38.4%) which includes Financial sector reforms-(33.2%) and Oil & Gas Sector deregulation sub themes (5.2%)2. Infrastructure (21.6%) which includes Power (7.4%), Construction (8.3%) and Logistics(5.8%). Well diversified exposure across sectors encompassing the above themes.

Review: HSBC Dynamic FundThe cash levels and sector allocations in the fund are likely to change depending on the market conditions and technical factors. We are currently overweight on financials while being underweight on other sectors.

Review: HSBC MIP Regular and Savings PlansOur current equity exposure is 15% in HMIP Regular and 24.6%, in HMIP Savings. Currently it is more biased towards large caps than mid or small caps.

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

Sectors HSBC Equity Fund

HSBC India Opportunities

Fund

HSBCMidcap

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

Overweight Underweight = Neutral

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

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

Debt

Market Assessment

Domestic bond markets rallied across the curve on the back of increased expectation of rate reductions by the RBI on the back of macro prints that have remained bond favorable. Lack of sovereign supply during the past few weeks and Open Market Operations (OMOs) conducted by RBI resulted in a steeper fall in sovereign yields followed by similar softening of other duration assets.

Economic Events and Data Impacting Debt Markets Third Quarter Review of Monetary Policy 2012-13 Key Highlights • Repo rate (rate at which the RBI lends to banks), reduced by 25 bps to 7.75% • Cash Reserve Ratio (CRR) reduced by 25 bps to 4.00% • GDP growth projection revised downwards to 5.5% (5.8% earlier) • Expectation of inflation numbers reduced to 6.8% by Mar 2013 (7.5% earlier) • Money supply growth estimate reduced to 13% (14% earlier), but credit growth estimate maintained at 16% (Source: RBI) The RBI has stated that risk of sovereign debt crisis in the global economy has eased on the back of political consensus on ‘fiscal cliff’ and the liquidity firewall of the ECB. Growth has slowed down on slump in external demand and domestic structural bottlenecks.

Domestically, growth has remained sluggish as industrial activity and consumption demand has weakened and investment outlook is lackluster. A series of government policy measures have boosted the market sentiments. There are some tentative signs of reversal in momentum like higher reading for manufacturing and services purchasing managers index and the industrial outlook survey of RBI.Wholesale Price Index (WPI) has softened through the third quarter.The RBI has also indicated that weaker pricing power of corporates, excess capacity in some sectors,

Third Quarter ReviewJanuary 2013

stabilization in international commodity prices and momentum measures suggest that the inflationary pressure has peaked. Further moderation in inflation going into 2013-14 is likely to be muted as the correction of underpricing of the administered items is still incomplete. Food and wage inflation has been showing contrarian behavior and has remained firm. Liquidity conditions remained tighter since November 2012 owing to increase in currency demand on account of the festive season and structural pressures due to differing deposit and credit growth. The policy stance thus remains one of balancing the growth inflation dynamics through calibrated easing. The moderation in inflation provides further opportunities for monetary policy to act in conjunction with fiscal and other measures to stem growth risks.

IIP indicates early signs of flattening in growth, Services PMI improves

Industrial Output growth in November, once again slipped into the negative territory, with the Index of Industrial Production (IIP) contracting by 0.1%YoYOwing to lesser number of working days in Diwali month, an unfavorable base and reversal of the festive related run-up in October. The data suggests that there has been a spurt in consumer demand, while investment demand remains weak. On the supply side, the fall in growth of electricity output indicate that supply-side bottlenecks persist. For the month of January 2013, manufacturing Purchasing Managers Index (PMI) eased to 53.2 from 54.7 due to deceleration in new orders, whereas services PMI moved up to 57.5 from 55.6 on account of new business flows.Inflation data continued to print lower in line with expectations. Wholesale Price Index (WPI) for the month of December was lower than market expectations at 7.18%. Consumer Price Index inflation rose to 10.6% from 9.9% due to higher food prices. Core inflation moderated to 4.2% YoY in December from 4.5% in November; partly due to base effect.

Inflation prints continue to remain elevated

India’s trade deficit improved to USD 17.7bn in December from USD 19.3bn in November. Export growth continued to contract, although at a slower pace (-1.6% y-o-y in December versus -4.2% in November), while import growth remained unchanged at around 6.3% y-o-y. Oil imports rose to 23.6% y-o-y versus 16.8% in November, while non-oil import growth remained weak at 0.4% y-o-y.

Market ActivityGilts rally towards month end

Sovereign yields softened during the first fortnight of January on account of lesser primary supply and resumption of OMOs followed by benign inflation prints. Yield curve flattened further due to increased demand from long end investors as supply of long end bonds is lower during the remaining part of this fiscal. After a steep rally of over 25 bps since mid-December, bond yields remained volatile as macro data, RBI Governor comments and Government announcements on oil prices caused major swings in bond yields. Lower inflation and increased expectations of bigger (than 25 bps) cut in the upcoming policy meet resulted in benchmark 10 year yields trading at recent lows. The RBI Governor’s remarks spoiled the month long ‘party’ as concerns on fiscal situation and primarily on current account deficit may limit further monetary easing. Gilts gave up some gains as fresh bouts of profit booking led to ten year yields hardening by 10 bps.

Corporate bond yields inched upwards

After mirroring the steep fall in gilt yields over the past one month, credit yields also remained volatile; albeit to a lesser extent as compared to the sovereign bonds. Lack of primary supply at the medium - longer end of the credit curve and narrow credit spreads has led to the corporate bonds yields trading in a range bound zone. Lack of supply in recent weeks and a bullish rate outlook resulted in credit spreads trading at 60 – 65 bps for 10 yr bonds.

System Liquidity deteriorates

System liquidity continued to remain outside of the RBI’s comfort zone owing to higher government’s balances. Expectations of monetary easing resulted in a rally of money market papers as well. However, yields inched higher towards the end of the month on expectation of resumption of supply.

Global Economic Scenario

Global economy

There was no change in the Federal Open Market Committee (FOMC) policy meeting. The open-ended program of USD 85bn in asset purchases per month was reaffirmed. There were no changes to the forward guidance introduced at the December meeting, which established thresholds of 6.5% unemployment and 2.5% inflation for an end to the exceptionally low fed funds rate. Global markets witnessed some jitters amid political concerns in Italy and Spain resulting in a pause in the recent rally in the markets.

Going ForwardThe RBI has clearly joined forces to contain the risks to economic growth. However, the RBI has also emphasized on the limited headroom available for the monetary policy due to higher than “comfort level” of inflation. The policy action is expected to support investment, anchor medium term inflationary expectations and improve liquidity.We re-iterate our view that the RBI’s stance is towards supporting growth, by easing monetary policy during the calendar year 2013. Open Market Operations (OMOs) to support liquidity will keep net market supply of Government Securities limited. Thus, the longer duration segment could continue to outperform other segments. Bond/Flexi Debt Funds are likely to maintain their current duration through G-secs as corporate bond spreads have narrowed and due to the possibility of OMOs in near future.Short-Term Funds are likely to benefit from a steepening of corporate bond yield curve in an improving 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 Bajaj Auto 1,621.72 2.65%Hero Motocorp 1,311.91 2.14%Tata Motors 1,266.50 2.07%Tata Motors DVR 665.80 1.09%Auto AncillariesApollo Tyres 1,031.64 1.69%Banks ICICI Bank 4,478.72 7.32%HDFC Bank 2,829.42 4.62%State Bank of India 1,950.40 3.19%Bank of Baroda 1,518.56 2.48%Federal Bank 1,516.65 2.48%Punjab National Bank 912.10 1.49%CementGrasim Industries 2,404.72 3.93%Construction ProjectsLarsen & Toubro 2,466.96 4.03%Consumer Non DurablesI T C 3,691.80 6.03%GlaxoSmithkline Consumer Healthcare 3,259.20 5.33%Fertilisers Coromandel International 681.81 1.11%Finance HDFC 2,674.27 4.37%LIC Housing Finance 844.50 1.38%Gas GAIL (India) 924.08 1.51%Industrial Capital GoodsBharat Heavy Electricals 683.40 1.12%Minerals/Mining Coal India 1,060.05 1.73%Non Ferrous Metals Hindustan Zinc 2,183.65 3.57%Oil Oil & Natural Gas Corporation 2,717.60 4.44%Cairn India 1,131.55 1.85%Petroleum Products Reliance Industries 3,103.28 5.07%Bharat Petroleum Corporation 1,231.35 2.01%Pharmaceuticals Dr Reddy’s Laboratories 1,896.74 3.10%Cadila Healthcare 865.80 1.41%Power NTPC 997.83 1.63%

HSBC Equity Fund (HEF) January 2013

6


% to NetAssets

Software Infosys 3,207.93 5.24%Tata Consultancy Services 1,881.81 3.08%Tech Mahindra 899.26 1.47%Telecom - Services Bharti Airtel 1,188.60 1.94%Textile Products Arvind 1,334.77 2.18%Total 98.77%CBLOs 717.65 1.17%Other Equity Investments 512.97 0.84%Net Current Assets -477.29 -0.78%Total Net Assets as on 31 January 2013 61,187.72 100.00%

Asset AllocationAuto 7.95%Auto Ancillaries 1.69%Banks 21.58%Cement 3.93%Construction Projects 4.03%Consumer Non Durables 11.36%Fertilisers 1.11%Finance 5.75%Gas 1.51%Industrial Capital Goods 1.12%Minerals/Mining 1.73%Non - Ferrous Metals 3.57%Oil 6.29%Petroleum Products 7.08%Pharmaceuticals 4.51%Power 1.63%Software 9.79%Telecom - Services 1.94%Textile - Products 2.18%Reverse Repos/CBLOs 1.17%Other Equity Investments 0.84%Net Current Assets -0.78%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 31.01.13)

` 108.0197

Fund Manager Tushar PradhanSIP AvailableMinimumApplicationAmount

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

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

Statistical RatiosStandard Deviation 0.86%R-Squared 0.9625Beta (Slope) 0.9067Sharpe Ratio -0.0049Annualised Expense Ratio from 01 April 2012 onwards 2.32%Portfolio Turnover 0.09

Statistical ratios disclosed as per daily returns of the last 3 years/since inception, whichever is later. @ Including SIP/STP where applicable. Risk free rate: 7.91% as on January 31, 2013.$ No load in case of switches between equity schemes of HSBC Mutual Fund.

HSBC Equity Fund (HEF) January 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.

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 Tata Motors 674.23 2.82%Eicher Motors 564.07 2.36%Hero Motocorp 278.78 1.17%Auto Ancillaries Bosch 833.40 3.49%Apollo Tyres 516.00 2.16%Banks ICICI Bank 1,548.50 6.48%HDFC Bank 887.41 3.72%Punjab National Bank 825.45 3.46%Bank of Baroda 785.31 3.29%State Bank of India 646.56 2.71%Cement Shree Cements 603.26 2.53%Construction ProjectsLarsen & Toubro 770.93 3.23%ChemicalsSupreme Industries 478.62 2.00%Consumer Non Durables I T C 835.27 3.50%FertilisersCoromandel International 241.70 1.01%Finance LIC Housing Finance 844.50 3.54%HDFC 704.75 2.95%Power Finance Corporation 669.19 2.80%CRISIL 452.66 1.90%GasPetronet LNG 569.06 2.38%Industrial Capital GoodsCrompton Greaves 588.23 2.46%Industrial ProductsSintex Industries 473.82 1.98%Carborundum Universal 471.04 1.97%Minerals/Mining Gujarat Mineral Development Corporation 304.39 1.27%Non - Ferrous Metals Hindalco Industries 464.80 1.95%Hindustan Zinc 254.33 1.06%Oil Oil & Natural Gas Corporation 614.86 2.57%PesticidesUnited Phosphorus 598.95 2.51%Petroleum Products Reliance Industries 886.65 3.71%Pharmaceuticals Divi's Laboratories 525.10 2.20%Dr Reddy’s Laboratories 383.18 1.60%Software Infosys 1,009.80 4.23%Eclerx Services 512.85 2.15%Polaris Software Lab 458.94 1.92%Tata Consultancy Services 403.25 1.69%Tech Mahindra 399.58 1.67%Info Edge (India) 345.10 1.44%Telecom - ServicesBharti Airtel 373.56 1.56%Total 95.46%

HSBC India Opportunities Fund (HIOF) January 2013

8


% to NetAssets

CBLOs 235.59 0.99%Other Equity Investments 326.15 1.37%Net Current Assets 523.28 2.19%Total Net Assets as on 31 January 2013 23,883.09 100.00%

Asset AllocationAuto 6.35%Auto Ancillaries 5.65%Banks 19.65%Cement 2.53%Construction Projects 3.23%Chemicals 2.00%Consumer Non Durables 3.50%Fertilisers 1.01%Finance 11.18%Gas 2.38%Industrial Capital Goods 2.46%Industrial Products 3.96%Minerals/Mining 1.27%Non - Ferrous Metals 3.01%Oil 2.57%Pesticides 2.51%Petroleum Products 3.71%Pharmaceuticals 3.80%Software 13.10%Telecom - Services 1.56%Reverse Repos/CBLOs 0.99%Other Equity Investments 1.37%Net Current Assets 2.19%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 31.01.13)

` 37.9928

Fund Manager Tushar PradhanSIP AvailableMinimumApplication Amount

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




HSBC India Opportunities Fund (HIOF) January 2013

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 Ancillaries Apollo Tyres 743.04 7.45%Balkrishna Industries 138.53 1.39%Banks Dena Bank 715.72 7.17%The Jammu & Kashmir Bank 674.53 6.76%Allahabad Bank 392.52 3.93%State Bank of Bikaner and Jaipur 231.75 2.32%State Bank of Travancore 160.31 1.61%CementHyderabad Industries 388.22 3.89%Everest Industries 373.45 3.74%Consumer Durables Tube Investments of India 391.22 3.92%Hitachi Home & Life Solutions (India) 267.72 2.68%Bajaj Electricals 177.78 1.78%Consumer Non DurablesKRBL 500.46 5.01%Gujarat Ambuja Exports 407.44 4.08%Venky’s (India) 133.33 1.34%Industrial Capital GoodsCommercial Engineers & Body Builders Co. 398.79 4.00%Industrial Products Diamond Power Infrastructure 222.73 2.23%Polyplex Corporation 154.09 1.54%FAG Bearings India 145.38 1.46%Media & EntertainmentPrime Focus 236.36 2.37%Minerals/Mining Gujarat Mineral Development Corporation 554.45 5.56%PesticidesPI Industries 567.26 5.68%Software Polaris Software Lab 509.30 5.10%Nucleus Software Exports 120.88 1.21%Textile ProductsSiyaram Silk Mills 109.73 1.10%Textile - CottonVardhman Textiles 190.33 1.91%Textile - Synthetic Bombay Dyeing & Manufacturing Company 377.76 3.79%JBF Industries 141.85 1.42%Transportation Gateway Distriparks 194.50 1.95%Total 96.39%

HSBC Midcap Equity Fund (HMEF) January 2013

10


% to NetAssets

CBLOs 59.99 0.60%Other Equity Investments 358.89 3.60%Net Current Assets -58.95 -0.59%Total Net Assets as on 31 January 2013 9,979.35 100.00%

Asset AllocationAuto Ancillaries 8.83%Banks 21.79%Cement 7.63%Consumer Durables 8.38%Consumer Non Durables 10.43%Industrial Capital Goods 4.00%Industrial Products 5.23%Media & Entertainment 2.37%Minerals/Mining 5.56%Pesticides 5.68%Software 6.31%Textile Products 1.10%Textile - Cotton 1.91%Textile - Synthetic 5.21%Transportation 1.95%Reverse Repos/CBLOs 0.60%Other Equity Investments 3.60%Net Current Assets -0.59%Total Net Assets 100.00%





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

Date of Allotment 19-May-05Benchmark BSE MidcapNAV (Growth) per unit(as on 31.01.13)

` 19.8745

Fund Manager Dhiraj SachdevSIP AvailableMinimumApplicationAmount

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



Statistical ratios disclosed as per daily returns of the last 3 years/since inception, whichever is later. @ Including SIP/STP where applicable.Risk free rate: 7.91% as on January 31, 2013. $ No load in case of switches between equity schemes of HSBC Mutual Fund.

HSBC Midcap Equity Fund (HMEF) January 2013

11


Our exposure to midcap stocks in HSBC Midcap Equity Fund (HMEF) is 99.9896%

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 550.95 3.48%Auto Ancillaries Apollo Tyres 900.42 5.68%Banks The Jammu & Kashmir Bank 1,315.30 8.30%ICICI Bank 845.72 5.33%Dena Bank 732.93 4.62%Indian Bank 533.81 3.37%Allahabad Bank 397.84 2.51%The Karnataka Bank 392.11 2.47%Union Bank of India 331.57 2.09%United Bank of India 248.81 1.57%CementEverest Industries 435.07 2.74%Construction ProjectsGammon Infrastructure Projects 239.07 1.51%IRB Infrastructure Developers 157.82 1.00%Consumer Non DurablesGujarat Ambuja Exports 228.00 1.44%Finance Aditya Birla Nuvo 482.67 3.04%Rural Electrification Corporation 458.76 2.89%Rane Holdings 382.30 2.41%Industrial Capital GoodsBharat Heavy Electricals 222.11 1.40%Commercial Engineers & Body Builders Co. 220.81 1.39%Industrial Products FAG Bearings India 572.07 3.61%Diamond Power Infrastructure 271.14 1.71%Polyplex Corporation 194.94 1.23%Media & EntertainmentPrime Focus 418.95 2.64%Minerals/MiningGujarat Mineral Development Corporation 616.76 3.89%Petroleum Products Hindustan Petroleum Corporation 466.68 2.94%Indian Oil Corporation 219.95 1.39%Power Reliance Infrastructure 451.06 2.85%Power Trading Corporation of India 229.11 1.45%Software Polaris Software Lab 741.64 4.68%Textile - Cotton Vardhman Textiles 271.15 1.71%Textile - Synthetic Bombay Dyeing & Manufacturing Company 591.79 3.73%JBF Industries 168.68 1.06%TransportationGateway Distriparks 641.18 4.04%Balmer Lawrie & Company 286.22 1.81%Total 95.99%

HSBC Progressive Themes Fund (HPTF) January 2013

12


% to NetAssets


Asset AllocationAuto 3.48%Auto Ancillaries 5.68%Banks 30.26%Cement 2.74%Construction Projects 2.51%Consumer Non Durables 1.44%Finance 8.35%Industrial Capital Goods 2.79%Industrial Products 6.55%Media & Entertainment 2.64%Minerals/Mining 3.89%Petroleum Products 4.33%Power 4.29%Software 4.68%Textile - Cotton 1.71%Textile - Synthetic 4.80%Transportation 5.85%Reverse Repos/CBLOs 1.36%Other Equity Investments 3.97%Net Current Assets -1.32%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 31.01.13)

` 12.0226


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




HSBC Progressive Themes Fund (HPTF) January 2013

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 Bajaj Auto 307.80 1.51%Mahindra and Mahindra 302.35 1.49%Auto Ancillaries Amara Raja Batteries 814.26 4.01%Motherson Sumi Systems 630.92 3.10%Bosch 431.89 2.12%Exide Industries 258.38 1.27%Banks ICICI Bank 1,161.37 5.71%HDFC Bank 850.43 4.18%Karur Vysya Bank 687.31 3.38%Bank of Baroda 583.15 2.87%Yes Bank 574.37 2.83%ING Vysya Bank 445.28 2.19%Cement Shree Cements 1,231.86 6.06%Grasim Industries 488.46 2.40%Orient Paper & Industries 244.84 1.20%ChemicalsSupreme Industries 557.04 2.74%Construction ProjectsSadbhav Engineering 370.11 1.82%Consumer DurablesPC Jeweller 656.40 3.23%Consumer Non DurablesI T C 1,150.60 5.66%GlaxoSmithkline Consumer Healthcare 760.76 3.74%McLeod Russel India 603.84 2.97%Fertilisers Coromandel International 388.23 1.91%Ferrous Metals Jindal Steel and Power 390.00 1.92%Finance LIC Housing Finance 637.39 3.14%HDFC 487.66 2.40%GasPetronet LNG 493.19 2.43%Industrial Capital GoodsCrompton Greaves 435.29 2.14%Minerals/MiningNMDC 611.62 3.01%Media & EntertainmentSun TV Network 212.89 1.05%Non - Ferrous Metals Hindustan Zinc 414.52 2.04%Petroleum Products Bharat Petroleum Corporation 381.72 1.88%Pharmaceuticals Ipca Laboratories 476.20 2.34%Lupin 432.07 2.13%Divi's Laboratories 397.64 1.96%Software Tata Consultancy Services 682.83 3.36%Telecom - Services Bharti Airtel 344.35 1.69%Total 97.88%

HSBC Tax Saver Equity Fund (HTSF) January 2013

14

Date of Allotment 05-Jan-07Benchmark BSE 200NAV (Growth) per unit(as on 31.01.13)

` 16.8214

Fund Manager Aditya KhemaniSIP AvailableMinimumApplicationAmount

` 500(Lumpsum & SIP)

Exit Load@ NilStatistical Ratios

Standard Deviation 0.82%R-Squared 0.9288Beta (Slope) 0.8496Sharpe Ratio 0.0019Annualised Expense Ratio from 01 April 2012 onwards 2.50%Portfolio Turnover 0.71

Statistical ratios disclosed as per daily returns of the last 3 years/since inception, whichever is later. @ Including SIP/STP where applicable. Risk free rate: 7.91% as on January 31, 2013.


% to NetAssets


Asset AllocationAuto 3.00%Auto Ancillaries 10.50%Banks 21.16%Cement 9.67%Chemicals 2.74%Construction Projects 1.82%Consumer Durables 3.23%Consumer Non Durables 12.37%Fertilisers 1.91%Ferrous Metals 1.92%Finance 5.53%Gas 2.43%Industrial Capital Goods 2.14%Minerals/Mining 3.01%Media & Entertainment 1.05%Non - Ferrous Metals 2.04%Petroleum Products 1.88%Pharmaceuticals 6.42%Software 3.36%Telecom - Services 1.69%Reverse Repos/CBLOs 0.74%Other Equity Investments 1.86%Net Current Assets -0.48%Total Net Assets 100.00%





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

HSBC Tax Saver Equity Fund (HTSF) January 2013

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 121.67 2.02%Bajaj Auto 95.28 1.58%Hero Motocorp 68.33 1.13%Auto Ancillaries Bosch 250.02 4.15%Motherson Sumi System 162.55 2.70%Amara Raja Batteries 123.32 2.05%Banks ICICI Bank 500.28 8.30%HDFC Bank 354.96 5.89%The Jammu & Kashmir Bank 290.09 4.81%Bank of Baroda 234.29 3.89%Karur Vysya Bank 190.89 3.17%Allahabad Bank 117.76 1.95%Indian Bank 101.10 1.68%Union Bank of India 63.76 1.06%CementGrasim Industries 240.47 3.99%Shree Cements 111.72 1.85%Construction ProjectsLarsen & Toubro 150.33 2.49%Consumer Non DurablesI T C 392.25 6.51%McLeod Russel India 133.94 2.22%FertilisersGujrat State Fertiliser 112.88 1.87%Coromandel International 84.08 1.40%Finance Power Finance Corporation 126.66 2.10%Industrial Products Carborundum Universal 107.14 1.78%Minerals/MiningNMDC 92.67 1.54%Gujarat Mineral Development Corporation 87.89 1.46%Non - Ferrous Metals Hindustan Zinc 174.18 2.89%Hindalco Industries 82.15 1.36%Oil Oil & Natural Gas Corporation 212.31 3.52%Cairn India 119.62 1.99%Petroleum Products Reliance Industries 138.32 2.30%Pharmaceuticals Lupin 181.29 3.01%Divi's Laboratories 139.68 2.32%Software Infosys 240.73 4.00%Polaris Software Lab 68.67 1.14%Telecom - Services Bharti Airtel 105.28 1.75%Total 95.87%

HSBC Unique Opportunities Fund (HUOF) January 2013

16


% to NetAssets


Asset AllocationAuto 4.73%Auto Ancillaries 8.89%Banks 30.76%Cement 5.84%Construction Projects 2.49%Consumer Non Durables 8.73%Fertilisers 3.27%Finance 2.10%Industrial Products 1.78%Minerals/Mining 3.00%Non - Ferrous Metals 4.25%Oil 5.51%Petroleum Products 2.30%Pharmaceuticals 5.33%Software 5.13%Telecom - Services 1.75%Reverse Repos/CBLOs 4.01%Other Equity Investments 0.90%Net Current Assets -0.79%Total Net Assets 100.00%

Date of Allotment 21-Mar-07Benchmark BSE 200NAV (Growth) per unit(as on 31.01.13)

` 11.7531

Fund Manager Gaurav Mehrotra & Amaresh Mishra

SIP AvailableMinimumApplicationAmount

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

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

Statistical RatiosStandard Deviation 0.87%R-Squared,m 0.9298Beta (Slope) 0.9063Sharpe Ratio -0.0109Annualised Expense Ratio from 01 April 2012 onwards 2.63%Portfolio Turnover 0.28


HSBC Unique Opportunities Fund (HUOF) January 2013

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

AutoBajaj Auto 608.15 4.03%

Tata Motors 447.00 2.96%

Banks ICICI Bank 1,191.15 7.90%

Bank of Baroda 650.81 4.32%

HDFC Bank 643.05 4.26%

Allahabad Bank 327.10 2.17%

State Bank of India 316.94 2.10%

Indian Bank 303.30 2.01%

Punjab National Bank 273.63 1.81%

CementGrasim Industries 450.89 2.99%

Construction ProjectsLarsen & Toubro 616.74 4.09%

Consumer Non DurablesI T C 615.30 4.08%

Finance HDFC 448.33 2.97%

Rural Electrification Corporation 434.61 2.88%

CRISIL 271.59 1.80%

GasPetronet LNG 379.38 2.52%

Minerals/Mining NMDC 308.90 2.05%

Coal India 222.61 1.48%

Non - Ferrous Metals Hindalco Industries 278.88 1.85%

Hindustan Zinc 253.69 1.68%

Oil Oil & Natural Gas Corporation 339.70 2.25%

Cairn India 323.30 2.14%

Petroleum Products Reliance Industries 398.99 2.65%

Pharmaceuticals Dr Reddy’s Laboratories 383.18 2.54%

Lupin 271.94 1.80%

Divi's Laboratories 187.30 1.24%

PowerNTPC 471.30 3.13%

Software Infosys 557.90 3.70%

Tata Consultancy Services 268.83 1.78%

Total 81.20%

HSBC Dynamic Fund (HDF) January 2013

18


% to NetAssets

CBLOs 2,895.80 19.20%Other Equity Investments 124.28 0.82%Net Current Assets -183.53 -1.22%Total Net Assets as on 31 January 2013 15,081.03 100.00%

Asset AllocationAuto 7.00%Banks 24.57%Cement 2.99%Construction Projects 4.09%Consumer Non Durables 4.08%Finance 7.66%Gas 2.52%Minerals/Mining 3.53%Non - Ferrous Metals 3.53%Oil 4.40%Petroleum Products 2.65%Pharmaceuticals 5.59%Power 3.13%Software 5.48%Reverse Repos/CBLOs 19.20%Other Equity Investments 0.82%Net Current Assets -1.22%Total Net Assets 100.00%

Date of Allotment 24-Sep-07Benchmark BSE 200NAV (Growth) per unit(as on 31.01.13)

` 10.6545

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


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




HSBC Dynamic Fund (HDF) January 2013

19

Date of Allotment 17-Mar-08Benchmark MSCI Emerging

Markets IndexNAV (Growth) per unit(as on 31.01.13)

` 10.9127

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


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


Statistical RatiosStandard Deviation 1.56%R-Squared 0.304Beta (Slope) 1.18Sharpe Ratio 0.012Annualised Expense Ratio from 01 April 2012 onwards 1.74% 2.50% (inclusive of underlying scheme’s expenses)Portfolio Turnover 0.57


Asset AllocationOverseas Mutual Fund 98.17%Reverse Repos/CBLOs 2.97%Net Current Assets -1.13%Total Net Assets 100.00%


% to NetAssets

Overseas Mutual FundHSBC GIF Global Emerging Markets Equity (Fund domiciled in Luxembourg) 2,038.37 98.17%

CBLOs 61.59 2.97%Net Current Assets -23.56 -1.13%Total Net Assets as on 31 January 2013 2,076.40 100.00%

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) January 2013

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 86.81 4.92%Majestic Auto 41.25 2.34%Balkrishna Industries 19.59 1.11%Banks State Bank of Travancore 85.61 4.85%State Bank of Bikaner and Jaipur 75.67 4.29%The Karnataka Bank 48.60 2.75%Cement Orient Paper & Industries 170.32 9.65%Chemicals India Glycols 78.91 4.47%Consumer Durables IFB Industries 82.84 4.69%Hitachi Home & Life Solutions (India) 53.22 3.02%Tube Investments of India 51.37 2.91%Bajaj Electricals 44.25 2.51%Consumer Non DurablesGujarat Ambuja Exports 99.00 5.61%KRBL 69.38 3.93%Globus Spirits 68.10 3.86%Greenply Industries 64.68 3.66%Lakshmi Energy and Foods 22.55 1.28%FinanceRane Holdings 112.97 6.40%Industrial Capital GoodsIndo Tech Transformers 53.18 3.01%Sanghvi Movers 49.92 2.83%TIL 39.56 2.24%Industrial Products Ador Welding 56.17 3.18%PesticidesPI Industries 47.42 2.69%Software Nucleus Software Exports 125.34 7.10%Textile - Cotton RSWM 73.64 4.17%Textile - ProductsSRF 28.94 1.64%Total 99.12%

HSBC Small Cap Fund (HSCF) January 2013

21


% to NetAssets


Asset AllocationAuto Ancillaries 8.37%Banks 11.89%Cement 9.65%Chemicals 4.47%Consumer Durables 13.13%Consumer Non Durables 18.34%Finance 6.40%Industrial Capital Goods 8.08%Industrial Products 3.18%Pesticides 2.69%Software 7.10%Textile - Cotton 4.17%Textile - Products 1.64%Reverse Repos/CBLOs 4.42%Other Equity Investments 0.72%Net Current Assets -4.26%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 31.01.13)

` 10.3184


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



Statistical ratios disclosed as per returns of the last 3 years/since inception, whichever is later.@ Including SIP/STP where applicable.Risk free rate: 7.91% as on January 31, 2013. $ No load in case of switches between equity schemes of HSBC Mutual Fund.

HSBC Small Cap Fund (HSCF) January 2013

22


Our exposure to small cap stocks in HSBC Small Cap Fund (HSCF) is 99.8363%

Date of Allotment 06-May-11Benchmark MSCI Brazil

10/40 IndexNAV (Growth) per unit(as on 31.01.13)

` 9.7968

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


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


Statistical RatiosStandard Deviation 1.22%R-Squared 0.327Beta (Slope) 0.483Sharpe Ratio -0.031Annualised Expense Ratio from 01 April 2012 onwards* 1.75% 2.50% (inclusive of underlying scheme’s expenses)Portfolio Turnover 0.47

Statistical ratios disclosed as per daily returns of the last 3 years/since inception, whichever is later. @ Including SIP/STP where applicable. Risk free rate: 7.91% as on January 31, 2013.$ 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 31-Mar-12.

Asset AllocationOverseas Mutual Fund 100.19%Reverse Repos/CBLOs 3.36%Net Current Assets -3.55%Total Net Assets 100.00%


% to NetAssets

Overseas Mutual FundHSBC GIF Brazil Equity Fund (Fund domiciled in Luxembourg) 20,490.28 100.19%

CBLOs 686.25 3.36%

Net Current Assets -725.80 -3.55%

Total Net Assets as on 31 January 2013 20,450.73 100.00%

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) January 2013

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 Gaurav Mehrotra and Amaresh Mishra (from 02 July 2012)

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 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 l 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 January 2013

24

l

Gaurav MehrotraPost Graduate Diploma in Business Management, Bachelor of Engineering

Experience: 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 Management

Experience: 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 January 2013

25

l

l

l

l

l

l

l

Funds Managed by Tushar Pradhan.

Comparative Performance of Equity Schemes January 2013

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

Dec'12Jan'11 - Dec'11

Jan'10 - Dec'10

Since Inception

HSBC Equity Fund - Growth 23.28% -23.07% 17.29% 26.48%BSE200 (Scheme Benchmark) 30.89% -27.51% 15.39% 20.06%S&P Nifty (Standard Benchmark) 27.35% -24.90% 17.95% 18.56%` 10,000, if invested in HEF, would have become `12,328 `7,693 `11,729 `1,06,500

` 10,000, if invested in BSE 200, would have become `13,089 `7,249 `11,539 `63,006

` 10,000, if invested in S&P Nifty, would have become `12,735 `7,510 `11,795 `55,541

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


Jan'10 - Dec'10

Since Inception

HSBC India Opportunities Fund - Growth 25.07% -19.24% 14.76% 16.25%BSE 500 (Scheme Benchmark) 31.12% -28.01% 15.44% 14.67%S&P Nifty (Standard Benchmark) 27.35% -24.90% 17.95% 14.20%` 10,000, if invested in HIOF, would have become `12,507 `8,076 `11,476 `37,980



26

Data for the period January to December 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 Jan'12 -


Jan'10 - Dec'10

Since Inception

HSBC Dynamic Fund - Growth 22.28% -22.63% 15.39% 1.18%BSE200 (Scheme Benchmark) 30.89% -27.51% 15.39% 3.03%S&P Nifty (Standard Benchmark) 27.35% -24.90% 17.95% 3.47%` 10,000, if invested in HDF, would have become `12,228 `7,737 `11,539 `10,639




27


HSBC Brazil Fund Date Of Inception : 06 May 11Scheme Name & Benchmarks Jan'12 - Dec'12 Since InceptionHSBC Brazil Fund - Growth 5.18% -0.70%MSCI Brazil 10/40 Index (Scheme Benchmark) -2.14% -14.05%

S&P Nifty (Standard Benchmark) 27.35% 3.80%` 10,000, if invested in HBF, would have become `10,518 `9,883

` 10,000, if invested in MSCI Brazil 10/40 Index, would have become `9,786 `7,777

` 10,000, if invested in S&P Nifty, would have become `12,735 `10,638


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


Jan'10 - Dec'10

Since Inception

HSBC Emerging Markets Fund - Growth 19.92% -16.20% 10.59% 2.17%MSCI Emerging Market Index (Scheme Benchmark) 13.86% -15.55% 11.69% 1.53%

S&P Nifty (Standard Benchmark) 27.35% -24.90% 17.95% 5.82%` 10,000, if invested in HEMF, would have become `11,992 `8,380 `11,059 `11,087

` 10,000, if invested in MSCI Emerging Market Index, would have become `11,386 `8,445 `11,169 `10,753



Funds Managed by - Piyush Harlalka.

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


Jan'10 - Dec'10

Since Inception

HSBC Unique Opportunities Fund - Growth 31.77% -28.40% 19.47% 2.73%BSE200 (Scheme Benchmark) 30.89% -27.51% 15.39% 8.17%S&P Nifty (Standard Benchmark) 27.35% -24.90% 17.95% 8.09%` 10,000, if invested in HUOF, would have become `13,177 `7,160 `11,947 `11,689




Fund Managed by Gaurav Mehrotra and Amaresh Mishra.

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


Jan'10 - Dec'10

Since Inception

HSBC Tax Saver Equity Fund - Growth 38.94% -24.92% 16.90% 9.01%BSE 200 (Scheme Benchmark) 30.89% -27.51% 15.39% 6.49%S&P Nifty (Standard Benchmark) 27.35% -24.90% 17.95% 6.79%` 10,000, if invested in HTSF, would have become `13,894 `7,508 `11,690 `16,768




Fund Managed by - Aditya Khemani.


28


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


Jan'10 - Dec'10

Since Inception

HSBC Small Cap Fund - Growth 44.91% -47.99% 26.56% 1.08%BSE Small Cap (Scheme Benchmark) 32.91% -43.99% 13.99% 1.26%S&P Nifty (Standard Benchmark) 27.35% -24.90% 17.95% 5.32%` 10,000, if invested in HSCF, would have become `14,491 `5,201 `12,656 `10,526

` 10,000, if invested in BSE Smallcap, would have become `13,291 `5,601 `11,399 `10,619



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


Jan'10 - Dec'10

Since Inception

HSBC Progressive Themes Fund - Growth 48.48% -41.41% 4.72% 3.03%BSE 200 (Scheme Benchmark) 30.89% -27.51% 15.39% 9.77%S&P Nifty (Standard Benchmark) 27.35% -24.90% 17.95% 10.05%` 10,000, if invested in HPTF, would have become `14,848 `5,859 `10,472 `12,271




Funds Managed by - Dhiraj Sachdev.

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


Jan'10 - Dec'10

Since Inception

HSBC Midcap Equity Fund - Growth 47.65% -45.03% 10.83% 9.83%BSE Midcap (Scheme Benchmark) 38.72% -35.07% 14.57% 10.83%S&P Nifty (Standard Benchmark) 27.35% -24.90% 17.95% 15.33%` 10,000, if invested in HMEF, would have become `14,765 `5,497 `11,083 `20,449

` 10,000, if invested in BSE Midcap, would have become `13,872 `6,493 `11,457 `21,911



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 298.48 1.05% CRISIL A1+CDsFixedCentral Bank of India 1,111.62 3.93% CARE A1+Corporate/PSU DebtFixedShriram Transport Finance Company 1,803.41 6.37% CRISIL AABajaj Finance 1,503.79 5.31% [ICRA] AA+LIC Housing Finance 1,005.42 3.55% CRISIL AAANABARD 709.41 2.51% CRISIL AAAPower Finance Corporation 508.12 1.79% CRISIL AAAHDFC 505.78 1.79% CRISIL AAATata Sons 505.30 1.78% CRISIL AAAHDFC 402.37 1.42% CRISIL AAAHDFC 401.78 1.42% CRISIL AAAShriram Transport Finance Company 300.28 1.06% CRISIL AAHDFC 280.36 0.99% CRISIL AAANABARD 203.91 0.72% CRISIL AAANational Housing Bank 100.43 0.35% Fitch AAA (ind)Government Securities8.20% Government Stock M - 24-Sep-2025 3,318.31 11.72% Sovereign8.33% Government Stock M - 09-Jul-2026 2,789.09 9.85% Sovereign8.15% Government Stock M - 11-Jun-2022 2,091.72 7.39% Sovereign8.12% Government Stock M - 10-Dec-2020 1,074.31 3.79% Sovereign8.30% Government Stock M - 31-Dec-2042 952.45 3.36% Sovereign8.97% Government Stock M - 05-Dec-2030 313.06 1.11% SovereignEquitiesListed EquityShree Cements 692.86 2.45%Amara Raja Batteries 569.53 2.01%ICICI Bank 491.94 1.74%GlaxoSmithkline Consumer Healthcare 416.85 1.47%I T C 315.34 1.11%HDFC Bank 281.84 1.00%Bank of Baroda 272.34 0.96%Karur Vysya Bank 246.11 0.87%Orient Paper & Industries 224.58 0.79%Tata Consultancy Services 220.78 0.78%Motherson Sumi Systems 202.79 0.72%Ipca Laboratories 187.07 0.66%Infosys 174.06 0.61%Crompton Greaves 171.12 0.60%Bajaj Auto 164.20 0.58% N.ACadila Healthcare 163.67 0.58%Vardhman Textiles 161.37 0.57%Divi's Laboratories 157.53 0.56%Coromandel International 156.66 0.55%McLeod Russel India 155.08 0.55%Bharti Airtel 152.14 0.54%Titan Industries 145.26 0.51%Punjab National Bank 145.02 0.51%NMDC 143.64 0.51%PC Jeweller 140.21 0.50%Jindal Steel and Power 139.93 0.49%Petronet LNG 136.45 0.48%LIC Housing Finance 132.31 0.47%Sanghvi Movers 123.02 0.43%

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

29

Date of Allotment 24-Feb-04Benchmark CRISIL MIP

Blended IndexNAV (Growth) per unit(as on 31.01.13)

` 22.7698

Average Maturity of Portfolio

89.59 months

Modified Durationof Portfolio

52.71 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@ 1% - if redeemed/

switched out within 1 year from date of investment.

Annualised Expense Ratio from 01 April 2012 onwards 2.21%

@ Including SIP/STP where applicable.

Asset AllocationMoney Market Instruments 4.98%Corporate/ PSU Debt 29.07%Government Securities 37.22%Cash Equivalents 1.42%Net Current Assets 2.73%Other Equity Investments 24.58%Total Net Assets 100.00%

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Sun TV Network 121.43 0.43%Supreme Industries 107.05 0.38%Hindustan Dorr-Oliver 47.93 0.17%Total 95.84%Cash EquivalentsCBLOs 403.35 1.42%Net Current Assets 774.16 2.73%Total Net Assets as on 31 January 2013 28,317.04 100.00%

Rating ProfileAAA 21.31%AA+/ AA-/ AA 12.74%Sovereign 37.22%Reverse Repo/CBLOs 1.42%Net Current Assets 2.73%Other Equity Investments 24.58%Total Net Assets 100.00%

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

30





HSBC MIP - Savings Plan - Monthly Dividend30-Nov-12 0.05285 0.04530 12.272528-Dec-12 0.05285 0.04530 12.342424-Jan-13 0.05285 0.04530 12.4416HSBC MIP - Savings Plan - Monthly Dividend Direct Plan24-Jan-13 0.05285 0.04530 12.4507HSBC MIP - Savings Plan - Quarterly Dividend15-Jun-12 0.17618 0.15101 11.770614-Sep-12 0.17618 0.15101 12.040614-Dec-12 0.17618 0.15101 12.4355


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 470.81 2.48% CRISIL A1+CDsFixedCentral Bank of India 370.54 1.95% CARE A1+Canara Bank 365.60 1.92% CRISIL A1+Corporate/PSU DebtFixedBajaj Finance 1,002.53 5.28% [ICRA] AA+NABARD 815.66 4.29% CRISIL AAALIC Housing Finance 804.34 4.23% CRISIL AAAShriram Transport Finance Company 701.33 3.69% CRISIL AAHDFC 560.72 2.95% CRISIL AAAPower Finance Corporation 508.12 2.67% CRISIL AAATata Sons 505.30 2.66% CRISIL AAAExport Import Bank of India 505.07 2.66% CRISIL AAANABARD 304.03 1.60% CRISIL AAAHDFC 200.89 1.06% CRISIL AAANational Housing Bank 200.86 1.06% Fitch AAA (ind)HDFC 100.59 0.53% CRISIL AAAGovernment Securities8.33% Government Stock M - 09-Jul-2026 2,214.86 11.66% Sovereign8.15% Government Stock M - 11-Jun-2022 1,969.88 10.37% Sovereign8.20% Government Stock M - 24-Sep-2025 1,902.70 10.01% Sovereign8.12% Government Stock M - 10-Dec-2020 846.27 4.45% Sovereign8.30% Government Stock M - 31-Dec-2042 491.59 2.59% Sovereign8.97% Government Stock M - 05-Dec-2030 237.49 1.25% SovereignEquitiesListed EquityICICI Bank 202.50 1.07%I T C 170.74 0.90%Shree Cements 158.86 0.84%Amara Raja Batteries 142.18 0.75%HDFC Bank 136.78 0.72%Bank of Baroda 118.35 0.62%HDFC 117.98 0.62%Motherson Sumi Systems 99.06 0.52% N.A.Tata Consultancy Services 90.73 0.48%Petronet LNG 90.13 0.47%Yes Bank 86.15 0.45%Supreme Industries 86.05 0.45%Bharti Airtel 83.54 0.44%GlaxoSmithkline Consumer Healthcare 80.33 0.42%Crompton Greaves 80.21 0.42%Karur Vysya Bank 76.40 0.40%Jindal Steel and Power 75.64 0.40%Bajaj Auto 72.98 0.38%Ipca Laboratories 68.92 0.36%McLeod Russel India 67.33 0.35%Infosys 67.23 0.35%Bharat Petroleum Corporation 65.67 0.35%Grasim Industries 63.12 0.33%Titan Industries 58.66 0.31%Oil & Natural Gas Corporation 57.75 0.30%NMDC 57.15 0.30%

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

31

Date of Allotment 24-Feb-04Benchmark CRISIL MIP

Blended IndexNAV (Growth) per unit(as on 31.01.13)

` 19.7931


85.62 months


52.33 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@ 1% - if redeemed/

switched out within 1 year from date of investment.

Annualised Expense Ratio from 01 April 2012 onwards 2.27%@ Including SIP/STP where applicable.

Asset AllocationMoney Market Instruments 6.35%Corporate/ PSU Debt 32.68%Government Securities 40.33%Cash Equivalents 2.00%Net Current Assets 3.64%Other Equity Investments 15.00%Total Net Assets 100.00%

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Orient Paper & Industries 56.80 0.30%Divi's Laboratories 52.51 0.28%Sun TV Network 45.49 0.24%Cadila Healthcare 43.21 0.23%LIC Housing Finance 42.23 0.22%Punjab National Bank 41.04 0.22% N.A.Vardhman Textiles 39.88 0.21%PC Jeweller 29.84 0.16%Hindustan Dorr-Oliver 14.38 0.08%Sanghvi Movers 11.29 0.06%Total 94.36%Cash EquivalentsCBLOs 380.70 2.00%Net Current Assets 691.49 3.64%Total Net Assets as on 31 January 2013 19,002.46 100.00%

Rating ProfileAAA 30.06%AA+/ AA-/ AA 8.97%Sovereign 40.33%Reverse Repo/CBLOs 2.00%Net Current Assets 3.64%Other Equity Investments 15.00%Total Net Assets 100.00%

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

32





HSBC MIP - Regular Plan - Monthly Dividend30-Nov-12 0.05285 0.04530 11.264028-Dec-12 0.05285 0.04530 11.299124-Jan-13 0.05285 0.04530 11.3990HSBC MIP - Regular Plan - Quarterly Dividend15-Jun-12 0.17618 0.15101 11.334214-Sep-12 0.17618 0.15101 11.472214-Dec-12 0.17618 0.15101 11.6648


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

T - Bills91 Days Tbill M- 28-Mar-2013 988.28 17.72% SovereignSecuritised DebtFixedIndia MBS 2002 Series I-D (LIC Housing Finance) PTC 30.16 0.54% CRISIL

AAA(SO)Corporate/PSU DebtFixedLIC Housing Finance 201.08 3.61% CRISIL AAABajaj Finance 200.84 3.60% [ICRA] AA+Shriram Transport Finance Company 200.38 3.59% CRISIL AAHDFC 111.93 2.01% CRISIL AAAHDFC 100.44 1.80% CRISIL AAAGovernment Securities8.33% Government Stock M - 09-Jul-2026 1,302.26 23.36% Sovereign8.20% Government Stock M - 24-Sep-2025 1,050.29 18.84% Sovereign8.30% Government Stock M - 31-Dec-2042 430.14 7.71% Sovereign8.12% Government Stock M - 10-Dec-2020 354.73 6.36% Sovereign8.97% Government Stock M - 05-Dec-2030 118.75 2.13% Sovereign5.59% Government Stock M - 04-Jun-2016 0.37 0.01% SovereignTotal 91.28%Cash EquivalentsCBLOs 474.52 8.51%Reverse Repos 420.38 7.54%Net Current Assets -408.69 -7.33%Total Net Assets as on 31 January 2013 5,575.86 100.00%

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

33

Date of Allotment 10-Dec-02Benchmark CRISIL Composite

Bond Fund IndexNAV (Growth) per unit(as on 31.01.13)

` 20.0823


109.34 months


59.57 months

Yield To Maturity* 8.21%Fund Manager Ruchir Parekh &

Sanjay ShahSIP AvailableMinimumApplicationAmount

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

Exit Load@ 0.75% if redeemed/switched out within 6 months from the date of investment

Annualised Expense Ratio from 01 April 2012 onwards Regular 1.91%Direct Plan 0.67%

@ Including SIP/STP where applicable.* Based on invested Amount

Asset AllocationT-Bills 17.72%Securitised Debt 0.54%Corporate / PSU Debt 14.61%Government Securities 58.40%Cash Equivalents 16.05%Net Current Assets -7.33%





HSBC Income Fund - Investment Plan - Regular Option - Quarterly Dividend15-Jun-12 0.22023 0.18876 11.451614-Sep-12 0.22023 0.18876 11.452314-Dec-12 0.22023 0.18876 11.4533HSBC 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 ProfileT-Bills 17.72%AAA 7.96%AA 7.20%Sovereign 58.40%Reverse Repos/ CBLOs 16.05%Net Current Assets -7.33%

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

34


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 4,967.20 4.90% CRISIL A1+Tata Capital Financial Services 2,480.94 2.45% [ICRA] A1+Sundaram Finance 1,924.96 1.90% [ICRA] A1+CDsFixedOriental Bank of Commerce 4,173.48 4.12% CRISIL A1+Corporation Bank 3,988.57 3.94% CRISIL A1+State Bank of Hyderabad 2,464.66 2.43% [ICRA] A1+Punjab National Bank 2,318.98 2.29% CARE A1+Central Bank of India 2,314.90 2.29% CARE A1+State Bank of Patiala 1,860.83 1.84% [ICRA] A1+Syndicate Bank 1,850.24 1.83% CARE A1+Oriental Bank of Commerce 1,670.92 1.65% CRISIL A1+Central Bank of India 1,389.53 1.37% CARE A1+Andhra Bank 1,194.41 1.18% CARE A1+Canara Bank 546.58 0.54% CRISIL A1+Andhra Bank 495.52 0.49% CARE A1+Punjab National Bank 494.35 0.49% CARE A1+Vijaya Bank 492.92 0.49% CARE A1+Oriental Bank of Commerce 398.70 0.39% CRISIL A1+Vijaya Bank 296.50 0.29% CARE A1+Corporate/PSU DebtFixedRural Electrification Corporation 5,384.72 5.32% CRISIL AAABajaj Finance 5,012.63 4.95% [ICRA] AA+Power Finance Corporation 4,064.97 4.01% CRISIL AAAShriram Transport Finance Company 3,002.20 2.96% CRISIL AAPower Finance Corporation 2,529.01 2.50% CRISIL AAAHDFC 2,528.89 2.50% CRISIL AAATata Sons 2,526.51 2.49% CRISIL AAALIC Housing Finance 2,521.74 2.49% CRISIL AAAHDFC 2,519.46 2.49% CRISIL AAAHDFC 2,517.29 2.49% CRISIL AAALIC Housing Finance 2,517.24 2.49% CRISIL AAAHDFC 2,516.68 2.48% CRISIL AAABajaj Finance 2,510.48 2.48% [ICRA] AA+Export Import Bank of India 2,502.88 2.47% CRISIL AAAShriram Transport Finance Company 2,202.08 2.17% CRISIL AANational Housing Bank 2,021.52 2.00% Fitch AAA (ind)Shriram Transport Finance Company 2,003.79 1.98% CRISIL AARural Electrification Corporation 2,000.00 1.97% CARE AAARural Electrification Corporation 1,523.64 1.50% CRISIL AAAHDFC 1,305.77 1.29% CRISIL AAASundaram Finance 1,132.21 1.12% [ICRA] AA+Tata Capital Financial Services 1,080.23 1.07% [ICRA] AA+Rural Electrification Corporation 1,017.69 1.00% CRISIL AAATata Sons 1,013.59 1.00% CRISIL AAANABARD 1,010.21 1.00% CRISIL AAAPower Grid Corporation of India 1,002.98 0.99% CRISIL AAANational Housing Bank 702.99 0.69% Fitch AAA (ind)HDFC 560.72 0.55% CRISIL AAA

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

35

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


` 19.3613


20.97 months


17.10 months



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

Exit Load@ 0.50% if redeemed / switched out within 6 months from the date of investment. NIL for switch-out into HMIP, HDF, HEMF, HFDF, HIF – IP and all Equity and Fund of Fund schemes of the Fund

Annualised Expense Ratio from 01 April 2012 onwards Regular 1.25%Institutional 0.71%Institutional Plus 0.64%Direct Plan 0.44%

@ Including SIP/STP where applicable.* Based on invested Amount

Asset AllocationMoney Market Instruments 34.88%Corporate / PSU Debt 62.39%Cash Equivalents 0.45%Net Current Assets 2.29%

Rating ProfileAAA 80.05%AA 17.22%Reverse Repos/ CBLOs 0.45%Net Current Assets 2.29%





HSBC Income Fund - Short Term Plan - Regular Option - Monthly Dividend30-Nov-12 0.07753 0.06645 11.086128-Dec-12 0.05902 0.05059 11.060024-Jan-13 0.06183 0.05300 11.0819HSBC Income Fund - Short Term Plan - Institutional Option - Monthly Dividend30-Nov-12 0.07946 0.06810 10.641428-Dec-12 0.06057 0.05192 10.615124-Jan-13 0.06312 0.05410 10.6359HSBC 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) January 2013

36

Power Finance Corporation 506.39 0.50% CRISIL AAAPower Finance Corporation 504.55 0.50% CRISIL AAAShriram Transport Finance Company 500.09 0.49% CRISIL AAHDFC 447.73 0.44% CRISIL AAATotal 97.27%Cash EquivalentsCBLOs 239.36 0.24%Reverse Repos 212.05 0.21%Net Current Assets 2,314.41 2.29%Total Net Assets as on 31 January 2013 1,01,280.88 100.00%


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 InstrumentsCPsICICI Securities Primary Dealership 2,472.92 8.22% CRISIL A1+Berger Paints India 2,186.98 7.27% CRISIL A1+Mahindra & Mahindra Financial Services 2,125.18 7.06% CRISIL A1+Shriram Equipment Finance 1,482.24 4.93% CRISIL A1+Kotak Mahindra Prime 1,412.42 4.70% CRISIL A1+Hindustan Petroleum Corporation 750.00 2.49% CRISIL A1+Bajaj Finance 510.00 1.70% CRISIL A1+Tata Capital 198.76 0.66% [ICRA] A1+CDsFixedFederal Bank 4,100.00 13.63% CRISIL A1+State Bank of Bikaner and Jaipur 2,143.38 7.13% CARE A1+Punjab National Bank 1,977.39 6.57% CARE A1+Vijaya Bank 1,971.66 6.55% CARE A1+Punjab National Bank 1,783.78 5.93% CARE A1+Canara Bank 1,532.08 5.09% CRISIL A1+Central Bank of India 1,296.90 4.31% CARE A1+Oriental Bank of Commerce 649.80 2.16% CRISIL A1+Corporation Bank 649.30 2.16% CRISIL A1+Syndicate Bank 462.56 1.54% CARE A1+Corporate/PSU DebtFixedHDFC 2,008.88 6.68% CRISIL AAANABARD 202.04 0.67% CRISIL AAATotal 99.45%Cash EquivalentsCBLOs 855.52 2.84%Reverse Repos 757.91 2.52%Net Current Assets -1,448.19 -4.81%Total Net Assets as on 31 January 2013 30,081.51 100.00%

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

January 2013

37

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

IndexNAV (Growth) per unit(as on 31.01.13)

` 18.1041


4.45 months


4.01 months

Yield To Maturity* 8.44%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

Annualised Expense Ratio from 01 April 2012 onwards Regular 1.27% Institutional 0.31%Direct Plan 0.16% @ Including SIP/STP where applicable.* Based on invested Amount

Asset AllocationMoney Market Instruments 92.10%Corporate/PSU Debt 7.35%Cash Equivalents 5.36%Net Current Assets -4.81%





HSBC Floating Rate Fund - Long Term Plan - Regular Option - Monthly Dividend30-Nov-12 0.06046 0.05182 10.068628-Dec-12 0.04817 0.04128 10.054724-Jan-13 0.04757 0.04077 10.0540HSBC Floating Rate Fund - Long Term Plan - Institutional Option - Monthly Dividend30-Nov-12 0.07233 0.06200 10.217028-Dec-12 0.05668 0.04858 10.198224-Jan-13 0.05438 0.04661 10.1961

Rating ProfileAAA 99.45%Reverse Repos/ CBLOs 5.36%Net Current Assets -4.81%

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

January 2013

38


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 InstrumentsCPsShriram Equipment Finance 3,458.57 5.36% CRISIL A1+Berger Paints India 2,783.43 4.32% CRISIL A1+IL & FS 2,492.73 3.87% CARE A1+Jindal Power 2,489.61 3.86% CARE A1+Tata Motor Finance 2,485.02 3.85% [ICRA] A1+HDFC 2,480.73 3.85% [ICRA] A1+Sundaram Finance 2,473.74 3.84% [ICRA] A1+ICICI Securities Primary Dealership 2,472.92 3.83% CRISIL A1+Indian Oil Corporation 2,470.22 3.83% [ICRA] A1+Kotak Mahindra Prime 2,288.33 3.55% CRISIL A1+Tata Capital 2,285.71 3.54% [ICRA] A1+Bajaj Finance 1,990.00 3.09% CRISIL A1+Hindustan Petroleum Corporation 1,750.00 2.71% CRISIL A1+L&T Finance 1,500.00 2.33% CARE A1+CDsFixedFederal Bank 2,500.00 3.88% CRISIL A1+Bank of Maharashtra 2,496.15 3.87% CRISIL A1+State Bank of Patiala 2,493.69 3.87% [ICRA] A1+ICICI Bank 2,493.69 3.87% [ICRA] A1+Punjab National Bank 2,493.12 3.87% CARE A1+Dena Bank 2,479.38 3.84% CRISIL A1+Central Bank of India 2,475.36 3.84% CARE A1+Bank of India 2,470.52 3.83% CRISIL A1+Oriental Bank of Commerce 2,093.20 3.25% CRISIL A1+Andhra Bank 1,982.09 3.07% CARE A1+Canara Bank 1,937.89 3.00% CRISIL A1+Canara Bank 1,334.39 2.07% CRISIL A1+Andhra Bank 1,293.94 2.01% CARE A1+Total 96.08%Cash EquivalentsCBLOs 4,569.95 7.09%Reverse Repos 4,048.57 6.28%Net Current Assets -6,090.33 -9.44%Total Net Assets as on 31 January 2013 64,492.63 100.00%

HSBC Cash Fund (HCF) January 2013

39

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


` 1153.7027


0.90 months


0.84 months



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

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

Annualised Expense Ratio from 01 April 2012 onwardsRegular 0.97% Institutional 0.53%Institutional Plus 0.15%Direct Plan 0.01%@ Including SIP/STP where applicable.

* Based on invested Amount





HSBC Cash Fund - Institutional Option - Monthly Dividend30-Nov-12 0.06394 0.06133 10.081228-Dec-12 0.05120 0.04911 10.065124-Jan-13 4.94183 4.74007 1006.2823HSBC 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

01 January 2013 to

31 January 2013***

Average for the Month

Normal (erst-while insti-plus) 0.01 0.01

Direct 0.01 0.01

Asset AllocationMoney Market Instruments 96.08%Cash Equivalents 13.36%Net Current Assets -9.44%

Rating ProfileAAA 96.08%Reverse Repos/ CBLOs 13.36%Net Current Assets -9.44%

HSBC Cash Fund (HCF) January 2013

40


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

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


` 14.9864


133.03 months


70.72 months

Yield To Maturity* 7.95%Fund Manager Sanjay ShahSIP AvailableMinimum ` 10,000Application ` 1,000 p.m.(SIP)AmountExit Load@ 0.5% if redeemed /

switched out within6 months from date of investment.

Annualised Expense Ratio from 01 April 2012 onwards 0.88%@ Including SIP/STP where applicable.* 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 Securities8.20% Government Stock M - 24-Sep-2025 45.66 22.45% Sovereign8.33% Government Stock M - 09-Jul-2026 35.89 17.64% Sovereign8.30% Government Stock M - 31-Dec-2042 25.60 12.59% Sovereign8.15% Government Stock M - 11-Jun-2022 25.39 12.48% Sovereign8.12% Government Stock M - 10-Dec-2020 20.27 9.96% SovereignTotal 75.12%Cash EquivalentsCBLOs 20.44 10.05%Reverse Repos 18.11 8.90%Net Current Assets 12.05 5.92%Total Net Assets as on 31 January 2013 203.42 100.00%





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 75.12%Cash Equivalents 18.95%Net Current Assets 5.92%

Rating ProfileSovereign 75.12%Reverse Repos/ CBLOs 18.95%Net Current Assets 5.92%

HSBC Gilt Fund (HGF) January 2013

41


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 InstrumentsCPsKotak Mahindra Prime 470.81 7.71% CRISIL A1+Kotak Mahindra Prime 397.97 6.52% CRISIL A1+Mahindra & Mahindra Financial Services 345.96 5.67% CRISIL A1+CDsFixedFederal Bank 900.00 14.75% CRISIL A1+Canara Bank 494.22 8.10% CRISIL A1+State Bank of Patiala 465.21 7.62% [ICRA] A1+Oriental Bank of Commerce 463.72 7.60% CRISIL A1+Central Bank of India 463.18 7.59% CARE A1+State Bank of Bikaner and Jaipur 186.38 3.05% CARE A1+Corporate/PSU DebtFixedNABARD 808.17 13.24% CRISIL AAAHDFC 502.22 8.23% CRISIL AAAPower Finance Corporation 499.76 8.19% CRISIL AAATotal 98.26%Cash EquivalentsCBLOs 47.68 0.78%Reverse Repos 42.24 0.69%Net Current Assets 16.05 0.26%Total Net Assets as on 31 January 2013 6,103.56 100.00%

HSBC Ultra Short Term Bond Fund (HUSBF) January 2013

42

Date of Allotment 17-Oct-06Benchmark Customised

Benchmark Index**NAV (Growth) per unit(as on 31.01.13)

` 10.2676


10.03 months


8.85 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@ 0.25% - if

redeemed switched out within 15 days from date of allotment

Annualised Expense Ratio from 01 April 2012 onwards Regular 1.31% Institutional 0.59%Institutional Plus 0.31%Direct Plan 0.16%

@ 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 68.61%Corporate / PSU Debt 29.66%Cash Equivalents 1.47%Net Current Assets 0.26%

Rating ProfileAAA 98.26%Reverse Repos/ CBLOs 1.47%Net Current Assets 0.26%





HSBC Ultra Short Term Bond Fund - Institutional Option - Monthly Dividend30-Nov-12 0.06740 0.05777 10.215028-Dec-12 0.05292 0.04536 10.198624-Jan-13 0.05807 0.04977 10.2044HSBC 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) January 2013

43


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

HSBC Ultra Short Term Bond Fund

01 January 2013 to

31 January 2013***

Average for the Month

Normal (erstwhile institutional plan) 0.50 0.50

Direct 0.15 0.15

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 InstrumentsCPsIndian Oil Corporation 2,498.36 4.00% [ICRA] A1+

Sundaram Finance 481.24 0.77% [ICRA] A1+

CDsFixedPunjab National Bank 3,171.17 5.07% CARE A1+

Corporate/PSU DebtFixedBajaj Finance 2,309.64 3.70% [ICRA] AA+

Shriram Transport Finance Company 2,000.38 3.20% CRISIL AA

LIC Housing Finance 1,510.34 2.42% CRISIL AAA

LIC Housing Finance 1,508.13 2.41% CRISIL AAA

HDFC 1,011.56 1.62% CRISIL AAA

Tata Sons 1,010.60 1.62% CRISIL AAA

Shriram Transport Finance Company 1,000.73 1.60% CRISIL AA

HDFC 559.66 0.90% CRISIL AAA

Export Import Bank of India 505.07 0.81% CRISIL AAA


Shriram Transport Finance Company 300.57 0.48% CRISIL AA


Rural Electrification Corporation 203.20 0.33% CRISIL AAA

Government Securities8.20% Government Stock M - 24-Sep-2025 13,978.53 22.37% Sovereign

8.33% Government Stock M - 09-Jul-2026 9,551.60 15.28% Sovereign

8.15% Government Stock M - 11-Jun-2022 6,067.02 9.71% Sovereign

8.30% Government Stock M - 31-Dec-2042 5,781.28 9.25% Sovereign

8.12% Government Stock M - 10-Dec-2020 3,278.67 5.25% Sovereign

8.97% Government Stock M - 05-Dec-2030 949.96 1.52% Sovereign

Total 93.54%Cash EquivalentsCBLOs 940.28 1.50%Reverse Repos 833.00 1.33%Net Current Assets 2,262.65 3.62%Total Net Assets as on 31 January 2013 62,496.21 100.00%

HSBC Flexi Debt Fund (HFDF) January 2013

44

Date of Allotment 05-Oct-07Benchmark CRISIL Composite


` 16.0181


117.48 months


64.38 months


Ruchir ParekhSIP AvailableMinimum ` 10,000Application ` 1,000 p.m.(SIP)AmountExit Load@ 0.75% if redeemed/

switched out within 6 months from the date of investment

Annualised Expense Ratio from 01 April 2012 onwards Regular 1.90%Institutional 1.61% Direct Plan 0.55%@ Including SIP/STP where applicable.






HSBC Flexi Debt Fund - Regular Option - Monthly Dividend30-Nov-12 0.05990 0.05134 10.399628-Dec-12 0.05839 0.05004 10.423024-Jan-13 0.14464 0.12397 10.5455HSBC Flexi Debt Fund - Institutional Option - Monthly Dividend30-Nov-12 0.06339 0.05433 10.638128-Dec-12 0.06151 0.05272 10.661724-Jan-13 0.14972 0.12832 10.7869HSBC Flexi Debt Fund - Regular Option - Quarterly Dividend15-Jun-12 0.17618 0.15101 11.787714-Sep-12 0.17618 0.15101 11.835514-Dec-12 0.19821 0.16988 11.8859HSBC Flexi Debt Fund - Institutional Option - Quarterly Dividend15-Jun-12 0.17618 0.15101 11.675414-Sep-12 0.17618 0.15101 11.730914-Dec-12 0.19821 0.16988 11.7870HSBC Flexi Debt Fund - Regular Option - Half Yearly Dividend16-Sep-11 0.22023 0.18876 11.017816-Mar-12 0.35236 0.30201 11.267214-Sep-12 0.35236 0.30201 11.4315

Asset AllocationMoney Market Instruments 9.84%Corporate / PSU Debt 20.33%Government Securities 63.38%Cash Equivalents 2.84%Net Current Assets 3.62%

Rating ProfileAAA 21.19%AA 8.98%Sovereign 63.38%Reverse Repos/ CBLOs 2.84%Net Current Assets 3.62%

HSBC Flexi Debt Fund (HFDF) January 2013

45


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 January 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 January 2013

47

Data for the period January to December 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 Jan'12 -


Jan'10 - Dec'10

Since Inception

HSBC MIP - Regular Plan - Growth 13.16% 1.19% 5.02% 7.85%CRISIL MIP Blended Index (Scheme Benchmark) 11.84% 1.66% 6.95% 7.26%

CRISIL 1 Year T - Bill Index (Standard Benchmark) 8.03% 6.47% 2.81% 5.31%

CRISIL 10 year Gilt Index (Standard Benchmark) 9.41% 2.14% 3.00% 4.63%

` 10,000, if invested in HMIP - R, would have become `11,316 `10,119 `10,502 `19,541

` 10,000, if invested in CRISIL MIP Blended Index, would have become `11,181 `10,164 `10,695 `18,611

` 10,000, if invested in CRISIL 1 Year T - Bill Index, would have become `10,801 `10,640 `10,281 `15,818

` 10,000, if invested in CRISIL 10 year Gilt Index, would have become `10,938 `10,211 `10,300 `14,931

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


Jan'10 - Dec'10

Since Inception

HSBC MIP - Savings Plan - Growth 17.70% -2.07% 6.83% 9.57%CRISIL MIP Blended Index (Scheme Benchmark) 11.84% 1.66% 6.95% 7.26%

CRISIL 1 Year T-Bill Index (Standard Benchmark) 8.03% 6.47% 2.81% 5.31%

CRISIL 10 Year Gilt Index (Standard Benchmark) 9.41% 2.14% 3.00% 4.63%

`10,000, if invested in HMIP - S, would have become `11,770 `9,793 `10,683 `22,470

`10,000, if invested in CRISIL MIP Blended Index, would have become `11,181 `10,164 `10,695 `18,611

`10,000, if invested in CRISIL 1 Year T-Bill Index, would have become `10,801 `10,640 `10,281 `15,818

`10,000, if invested in CRISIL 10 Year Gilt Index, would have become `10,938 `10,211 `10,300 `14,931

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 Jan'12 -


Jan'10 - Dec'10

Since Inception

HSBC Gilt Fund - Growth 10.06% 9.02% 6.88% 4.35%I-Sec Composite Bond Fund Index (Scheme Benchmark) 11.06% 6.52% 5.90% 6.65%


`10,000, if invested in HGF, would have become `11,006 `10,902 `10,688 `14,725

`10,000, if invested in I-Sec Composite Bond Fund Index, would have become `11,106 `10,652 `10,590 `17,942


Fund Managed by - Sanjay Shah.



48


47

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


Jan'10 - Dec'10

Since Inception

HSBC FRF - LTP - Regular Plan - Growth 8.66% 8.31% 4.76% 6.98%CRISIL Liquid Fund Index (Scheme Benchmark) 8.50% 8.17% 5.13% 6.62%


`10,000, if invested HFRF - LTP, would have become `10,866 `10,831 `10,476 `17,314

`10,000, if invested in CRISIL Liquid Fund Index, would have become `10,847 `10,809 `10,513 `16,841


Funds Managed by - Sanjay Shah & Ruchir Parekh.


HSBC Ultra Short Term Bond Fund Date of Inception : 17 Oct 06Scheme Name & Benchmarks Jan'12 -


Jan'10 - Dec'10

Since Inception

HSBC Ultra Short Term Bond Fund - Regular - Growth 7.91% 7.29% 4.38% 6.81%

Customised Benchmark Index Fund (Scheme Benchmark)* 8.56% 8.14% 5.08% 7.10%

CRISIL 1 Year T - Bill Index (Standard Benchmark) 8.03% 6.47% 2.81% 5.67%

` 10,000, if invested in HUSTBF, would have become `10,791 `10,729 `10,438 `15,061

` 10,000, if invested in Customised Benchmark Index, would have become `10,856 `10,814 `10,508 `15,315

` 10,000, if invested in CRISIL 1 Year T - Bill, Index would have become `10,801 `10,640 `10,281 `14,084


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


Jan'10 - Dec'10

Since Inception

HSBC Flexi Debt Fund - Ret - Growth 9.71% 9.30% 4.50% 8.74%CRISIL Composite Bond Fund Index (SchemeBenchmark) 9.11% 6.94% 4.90% 6.88%

CRISIL 10 Year Gilt Index (StandardBenchmark) 9.41% 2.14% 3.00% 6.49%

`10,000, if invested in HFDF, would havebecome `10,971 `10,930 `10,450 `15,518

`10,000, if invested in CRISIL Composite Bond Fund Index, would have become `10,908 `10,687 `10,490 `14,175

`10,000, if invested in CRISIL 10 Year GiltIndex, would have become `10,938 `10,211 `10,300 `13,908


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


49


HSBC Income Fund - Invtt Plan Date of Inception : 10 Dec 02Scheme Name & Benchmarks Jan'12 -


Jan'10 - Dec'10

Since Inception

HSBC Income Fund - Invtt Plan - Reg - Growth 9.73% 8.96% 4.70% 7.01%

CRISIL Composite Bond Fund Index (Scheme Benchmark) 9.11% 6.94% 4.90% 5.79%


`10,000, if invested in HIF - IP, would have become `10,973 `10,896 `10,470 `19,777

`10,000, if invested in CRISIL Composite Bond Fund Index, would have become `10,908 `10,687 `10,490 `17,626


HSBC Income Fund - S T P Date of Inception : 10 Dec 02Scheme Name & Benchmarks Jan'12 -


Jan'10 - Dec'10

Since Inception

HSBC Income Fund - S T P - Reg - Growth 9.13% 8.88% 4.28% 6.70%CRISIL Short Term Bond Fund Index (Scheme Benchmark) 9.10% 7.87% 4.63% 6.38%


`10,000, if invested in HIF -ST, would have become `10,913 `10,888 `10,428 `19,221

`10,000, if invested in CRISIL Short Term Bond Fund Index, would have become `10,907 `10,779 `10,463 `18,641


Funds Managed by - Ruchir Parekh & Sanjay Shah.



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

Last 7 Days as on 31

December 2012


December 2012


December 2012

Jan'12 - Dec'12

Jan'11 - Dec'11

Jan'10 - Dec'10

Since Inception

HSBC Cash Fund - Growth

8.55% 8.56% 8.51% 8.26% 7.68% 4.30% 6.00%

CRISIL Liquid Fund Index (Scheme Benchmark)

7.68% 7.67% 7.65% 8.50% 8.17% 5.13% 6.16%

CRISIL 91 Day T-Bill Index (Standard Benchmark)

8.23% 9.15% 8.33% 8.59% 6.19% 3.38% 5.31%

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

`10,016 `10,035 `10,070 `10,826 `10,768 `10,430 `17,991

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

`10,015 `10,032 `10,063 `10,847 `10,809 `10,513 `18,269

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

`10,016 `10,038 `10,068 `10,859 `10,619 `10,338 `16,853


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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