March 2013 - HSBCFund Manager Commentary March 2013 4 Review: HSBC Progressive Themes Fund Currently...

March 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 March 2013

2

Equity & MIP

Market UpdateTraditionally during the month of March, the equity market has invariably traded weak being the final month of the Indian financial year. This time around too, it was no exception with the market indices trading in red, while the broader indices were impacted more severely. Domestically the political turbulence owing to the withdrawal of support by a key UPA ally, the DMK kept the market participants on tenterhooks. While there was no imminent threat to the stability of the government at the Centre, a weakened ruling coalition was perceived to have adverse ramifications on sustaining the reform roadmap. The Reserve Bank of India (RBI) in its mid-quarter policy meeting decided to reduce the repo rate by 25 bps. But the RBI commentary that followed, hinted at limited room for further monetary easing and this watered down market expectations of an aggressive monetary easing by the Central Bank. Adverse news flows from the eurozone also returned to haunt the markets and this time around it was the Cyprus bail-out deal that hit the headlines. The proposal to impose significant levy on Cypriot depositors as part of the bail-out deal made global markets nervous as it would have set a bad precedent to future bail-out proposals and may undermine the stability of the banking system in stressed countries. However, the Cypriot parliament rejected the initial proposal to penalize small depositors while the final proposal may carry higher burden on large value deposits.

The broader market indices underperformed large cap market indices during the month. BSE Small cap index lost 6.47%, while BSE Midcap index shed 2.56% during March. The market indices BSE Sensex & Nifty were relatively lesser impacted with them closing the month down 0.14% & 0.18% respectively. Amongst the BSE sectoral indices, Healthcare, FMCG & IT outperformed while Realty, Auto, Oil & Gas and Metal segments were the worst hit.

The Foreign Institutional Investor (FII) flows slowed down a bit in Mar 2013 to register USD 2 bn of net inflows (cash equities segment). The total net inflows from the segment during the first quarter of CY13 stood at USD 10.3 bn. On the other hand, the Domestic Institutional Investors (DIIs) continued to be firmly on the other side of the trade net selling equities worth USD 1.5 bn during the month. The YTD outflows from DIIs totaled USD 6.3 bn as the segment was bogged down by severe redemption pressures from retail investors.

The Current Account Deficit (CAD) for 3QFY13 rose to an all-time high of USD 32.5 bn or 6.7% of the GDP. The deficit was driven by a widening trade deficit at USD 59.6 bn accentuated by higher gold & oil imports. The remittances & service exports also weakened during the quarter and adversely impacted the deficit margin. On the other end, buoyant capital flows especially from portfolio FII flows (both equity & debt) helped to minimize the impact of higher CAD on the forex reserves.

CAD at a historical high

Weak sentiments mar Equity performance

Source: Bloomberg ; Central Statistical Organization (CSO) India

Source: Bombay Stock Exchange (BSE)

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

Sensex BSE100 BSE200 BSE500 BSEMidCap

BSESmallCap

-0.1% -0.7% -0.9% -1.1%

-2.5%

-6.5%

Indices Performance - March 2013

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

10.00%

Jul-0

7S

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7N

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7Ja

n-08

Mar

-08

May

-08

Jul-0

8S

ep-0

8N

ov-0

8Ja

n-09

Mar

-09

May

-09

Jul-0

9S

ep-0

9N

ov-0

9Ja

n-10

Mar

-10

May

-10

Jul-1

0S

ep-1

0N

ov-1

0Ja

n-11

Mar

-11

May

-11

Jul-1

1S

ep-1

1N

ov-1

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n-12

Mar

-12

May

-12

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-13

Repo Rate Movement

Repo Rate

Inflation & Industrial Growth

Core inflation within the RBI comfort zone

The Wholesale Price Index (WPI) for Feb 2013 saw a marginal increase to 6.8% (YoY vs 6.6% in Jan 2013). The diesel price hikes of the recent past may have adversely impacted the headline inflation. On the positive side, the core inflation (manufacturing non-food inflation) fell to 3.8%, which was below the prescribed RBI comfort zone of 4%. The Consumer Price Index continued to trend higher at 10.9% for Feb 2013 (vs 10.8% in Jan) and the rise was observed across all components of the CPI.

IIP growth snaps the 2 month contraction pattern

India’s industrial output, measured by the Index of Industrial Production (IIP) reversed its contraction pattern to register a growth of 2.4% for Jan 2013 (YoY vs. -0.6% in Dec 2012). Although this figure was above market expectations, a sustained recovery path may be necessary to exude confidence in market participants.

Global Economic Scenario

Cypriot crisis remained the focal point of attention

Eurozone concerns resurfaced through the Cyprus bail-out crisis and reminded the global investors that the region’s woes are far from over. The month of March saw some frantic attempts to iron out a bail-out deal for Cyprus and some of the measures meant that the depositors could bear the brunt on account of proposed levies aimed at part funding the EUR 10 bn bail-out. This led to political deliberations in the Cypriot parliament, which finally rejected the proposal to impose levy on small value deposits while large value depositors & creditors may be subjected to a hefty levy/hair-cut. While the objective of such a deal is to avoid any imminent credit crisis, but on the flip side it may adversely impact investor sentiments and such levy based resolution may set a bad precedent. Not far away, in Italy the political stalemate continued after the inconclusive election in February and calls for a new election may add to the uncertainty there.

Going ForwardDue to lack of positive triggers, the equity market may remain range bound in the near term. However, we may be entering a phase where investor sentiments are arguably at a low point given the domestic political scenario, macro headwinds and growth concerns. So in such a phase, sentiments can improve with even with a slight improvement in the status-quo as the market participants may be devoid of any such expectations. Initiatives such as the continued roll-out of reform measures by the central government despite being in a difficult political situation may change the mood of pessimism for better. Having said that, the political compulsions may reign over tough reform measures in an election bound year. Another aspect which can bring about optimism among market participants, is a faster than expected monetary easing cycle by the RBI. As this action may have a direct impact on enabling a swifter economic recovery, the investor confidence may improve manifold as a result of this. Although there are enough challenges ahead for the Indian economy, the country has still all the structural growth levers in place. As a fund house, we employ a selective bottom up stock picking strategy focusing on companies that are at the same time cheap and profitable. Challenging times such as these may provide us with some really profitable companies to invest in, at attractive valuations. We thus advise investors to stay invested in equities and increase their allocation to equities during the times of sharp market correction.

Source: Bloomberg, for all data except where mentioned otherwise


3



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%

7.31%

6.62% 6.84% 5.0%6.0%7.0%8.0%9.0%

10.0%11.0%

Jan-

11Fe

b-11

Mar

-11

Apr

-11

May

-11

Jun-

11Ju

l-11

Aug

-11

Sep

-11

Oct

-11

Nov

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Dec

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Jan-

12Fe

b-12

Mar

-12

Apr

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Aug

-12

Sep

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Oct

-12

Nov

-12

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Jan-

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b-13

Wholesale Price Index Inflation (WPI)

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

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%

-0.60%

2.40%

-10.0%

-5.0%

0.0%

5.0%

10.0%

Jan-

11Fe

b-11

Mar

-11

Apr

-11

May

-11

Jun-

11Ju

l-11

Aug

-11

Sep

-11

Oct

-11

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-11

Jan-

12Fe

b-12

Mar

-12

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-12

May

-12

Jun-

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Aug

-12

Sep

-12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

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 (39.3%) which includes Financial sector reform (33.6%) and Oil & Gas Sector deregulation sub theme (5.7%)2. Infrastructure (19%) which includes Power (6.2%), Construction (8.9%) and Logistics (3.8%). Well diversified exposure across sectors encompassing the above themes.

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

Review: HSBC MIP Regular and Savings PlansOur current exposure is 14.27% in HMIP Regular and 21.84%, in HMIP Savings. Currently it is more biased towards large caps than mid or small caps.

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

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

Debt

Market Assessment

Domestic bond markets remained range bound ahead of the scheduled mid quarter monetary policy review held on 18th March. The RBI reduced the benchmark repo rates by 25 bps in line with market expectations. Post policy yields hardened in the sovereign segment owing to the upcoming supply beginning in April.

Economic Events and Data Impacting Debt Markets

Mid Quarter Monetary Policy Review

Key highlights of the monetary policy review as mentioned below.• Repo rate (rate at which RBI lends to banks), reduced by 25 bps to 7.50%• Cash reserve ratio left unchanged (at 4.00%) Global economic activity presents a mixed picture. While there is some pick-up in activity in the US and some emerging economies, the Euro area and Japan presents a weak picture, besides the persisting contingent risks in the Euro. As a result, international non-fuel commodity prices have softened in Q4 but fuel prices have remained firm, resulting in persistent inflationary pressures for net energy importers.

Domestic GDP in 3QFY13 was the weakest in the last fifteen quarters. Services sector growth (the mainstay of overall growth) has decelerated to its slowest pace in a decade. IIP, though turned positive in January, continues to be negatively impacted by contraction in capital goods production and mining activity. While headline inflation edged up in February 2013 on account of adjustments to administered fuel prices, the momentum in non-food manufacturing inflation continued to ebb as per expectations. RBI has highlighted that the foremost challenge for returning the economy to a high growth trajectory is to revive investment. While the RBI has lauded the recent Union Budget for FY14, it indicates that more needs to be done to bridge supply constraints, and staying the course of fiscal discipline both quantitatively as well as qualitatively.

Liquidity deficit continues to remain outside of the comfort zone due to a large build-up of government cash balances. The RBI will continue to actively manage liquidity through various instruments, including open market operations (OMO), to ensure adequate flows to the productive sectors of the economy.

IIP continues to remain volatile with a softening bias

January IIP (Index of Industrial Production) growth rose to a three month high of 2.4%YoY compared to a contraction of 0.5% in December. While investment demand has been weakening for over a year now, latest data confirm that discretionary consumer demand has also weakened. On the demand side, the rebound was seen in basic goods (rose 3.4% YoY from 1.8% in December) and consumer non-durable goods (5.3% from -0.4%). On the supply side, manufacturing sector output growth rose to 2.7% YoY in January from -0.7% in December mainly due to a rebound in clothing, chemicals, and non-metallic minerals categories. Lead indicators reflect a sharp decline in auto production.

Core and WPI inflation prints also moderate

Headline WPI inflation rose to a higher-than-expected 6.84% YoY in February from 6.62% in January, primarily due to the release of suppressed fuel inflation. Core inflation moderated to 3.8% YoY from 4.1% on weaker demand and lower input costs. Food inflation also eased on falls in prices of vegetables and fruit although prices of cereals and protein-rich items rose. CPI inflation rose to 10.9% in February from 10.8% in January. Food price inflation ticked higher to 13.5% YoY in February (from 13.3% in January), while core CPI inflation (ex-food and fuel) rose to 8.6% (from 8.3%).

Current Account Deficit at record high

The current account deficit (CAD) for Q3 2012-13 was at US$ 32.6 billion, implying a ratio of 6.7% of GDP. This is the highest quarterly current account deficit in both absolute terms and in terms of percentage of GDP. This was even higher than market expectations which ranged between 6%-6.5% of GDP and previous quarter level of 5.4% of GDP.

HSBC’s India PMI slows down

HSBC’s India manufacturing PMI declined in March 2013 to 52 (vs. 54.2 in February) due to slowdown in orders inflows and power outages. HSBC’s India PMI, service sector activity also declined (51.4 vs. 54.2), led by a slowdown in new business flows.

Market Activity

Yields hardened post budget

Domestic bond yields remained under pressure owing to upcoming supply season, beginning April 2013. The borrowing calendar released for the 1HFY 2014 has indicated a borrowing of INR 150 billion on a weekly basis. Supply of bonds is relatively higher on the longer end of the curve, which would imply steepening of the sovereign curve. The impact of rate reduction on bonds also remained muted as many of the on-the-run stocks would get replaced by new stocks for the same tenor.

Corporate bond yields softness

Credit yields softened towards the close of financial year as prospects of liquidity and demand – supply balance remained positive for the month of April 2013. The month of March witnessed bunching up of supply resulting in widening of credit spreads. Owing to higher primary issuances in the recent past, we expect issuers to remain at bay in the near term leading to softening of credit curve.

Liquidity likely to ease in new financial year

Advance tax outflows and high Government balances resulted in tight system liquidity throughout the month of March. CD (Certificate of Deposit) yields however softened on back of lower supply and higher investor demand. Government is expected to carry over INR 800 billion of cash balances in to next fiscal; and the ensuing spending would result in easing of liquidity scenario.

Global Economic Scenario

Global economy

At its Mar 19th FOMC (Federal Open Market Committee), the Federal Reserve maintained the policy rate i.e. Fed funds rate unchanged at 0-0.25% as expected. On the unconventional measures, the Chairman reiterated that the Fed would continue to buy longer-term US treasury securities at the rate of USD 45bn / month and the Agency MBS (Mortgage Based Securities) at USD 40bn / month. On economic data prints, Fed noted that information since January’2013 policy meeting suggest a return to modest economic growth following a pause towards late last year.

Bank of Japan pledged to double both its purchases of Japanese government bonds and Japan’s monetary base. It also formally adopted a two-year target for turning the country’s mild deflation into 2 per cent inflation.

Going ForwardAs widely expected, the RBI continues to tackle containing risk to economic growth despite higher than comfort level of inflation and the limited space available to monetary policy. We continue to believe that the RBI’s stance is toward supporting growth in 2013, and is likely to ease monetary policy further.

We continue to favor maintaining duration in Bond / Flexi Debt Funds, albeit through corporate bonds as their spreads are relatively attractive. G-sec yields are likely to remain under pressure as the new borrowing program begins in the upcoming fiscal, though expectations of OMO to support liquidity will provide some relief.

Short-Term Funds are likely to benefit from a steepening in the corporate bond yield curve as OMO and year-end government spending improves liquidity scenario in the new fiscal.

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 1,439.64 2.68%Tata Motors 1,143.89 2.13%Hero Motocorp 1,110.24 2.07%Tata Motors DVR 611.00 1.14%Auto AncillariesApollo Tyres 1,001.05 1.86%Banks ICICI Bank 3,929.95 7.31%HDFC Bank 2,751.54 5.12%State Bank of India 1,658.20 3.09%Federal Bank 1,441.95 2.68%Bank of Baroda 1,181.95 2.20%Punjab National Bank 717.90 1.34%CementGrasim Industries 2,250.64 4.19%Construction ProjectsLarsen & Toubro 1,912.68 3.56%Consumer Non DurablesI T C 3,713.40 6.91%Fertilisers Coromandel International 563.45 1.05%Finance HDFC 2,809.25 5.23%LIC Housing Finance 674.70 1.26%Gas GAIL (India) 859.28 1.60%Minerals/Mining Coal India 927.30 1.73%Non Ferrous Metals Hindustan Zinc 2,062.10 3.84%Oil Oil & Natural Gas Corporation 2,491.20 4.64%Cairn India 953.58 1.77%Petroleum Products Reliance Industries 2,705.15 5.03%Bharat Petroleum Corporation 1,133.10 2.11%Pharmaceuticals Dr Reddy’s Laboratories 1,748.84 3.25%Cadila Healthcare 742.75 1.38%Power NTPC 993.65 1.85%Software Infosys 3,322.75 6.18%Tata Consultancy Services 2,206.05 4.11%Tech Mahindra 1,165.67 2.17%

HSBC Equity Fund (HEF) March 2013

6


% to NetAssets

Telecom - Services Bharti Airtel 1,021.13 1.90%Textile Products Arvind 1,094.85 2.04%Total 97.41%CBLOs 795.75 1.48%Other Equity Investments 970.10 1.81%Net Current Assets -372.72 -0.69%Total Net Assets as on 31 March 2013 53,731.94 100.00%

Asset AllocationAuto 8.01%Auto Ancillaries 1.86%Banks 21.74%Cement 4.19%Construction Projects 3.56%Consumer Non Durables 6.91%Fertilisers 1.05%Finance 6.48%Gas 1.60%Minerals/Mining 1.73%Non - Ferrous Metals 3.84%Oil 6.41%Petroleum Products 7.14%Pharmaceuticals 4.64%Power 1.85%Software 12.46%Telecom - Services 1.90%Textile - Products 2.04%Reverse Repos/CBLOs 1.48%Other Equity Investments 1.81%Net Current Assets -0.69%Total Net Assets 100.00%

Dividend DeclarationRecord Date / period of

dividend declaredDividend (` per unit)

Non-InstitutionalDividend (` per unit)

InstitutionalNAV (`) per unit(cum dividend)

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

Date of Allotment 10-Dec-02Benchmark S&P BSE 200NAV (Growth) per unit(as on 28.03.13)

` 100.1523

Fund Manager Tushar PradhanSIP AvailableMinimumApplicationAmount

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

Exit Load@ NilStatistical Ratios

Standard Deviation 0.86%R-Squared 0.9632Beta (Slope) 0.91Sharpe Ratio -0.0244Annualised Expense Ratio from 01 April 2012 onwards 2.36%Portfolio Turnover 0.13

Statistical ratios disclosed as per daily returns of the last 3 years/since inception, whichever is later. @ Effective from March 1, 2013 for prospective investments. Risk free rate: 7.96% as on March 28, 2013.

HSBC Equity Fund (HEF) March 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 608.95 2.86%Eicher Motors 512.44 2.41%Hero Motocorp 235.93 1.11%Auto Ancillaries Bosch 628.87 2.96%Apollo Tyres 500.70 2.35%Banks ICICI Bank 1,229.68 5.78%HDFC Bank 781.69 3.68%Punjab National Bank 649.70 3.05%Bank of Baroda 611.24 2.87%State Bank of India 549.69 2.58%Cement Shree Cements 545.86 2.57%ChemicalsSupreme Industries 488.94 2.30%Construction ProjectsLarsen & Toubro 618.21 2.91%Consumer Non Durables I T C 840.16 3.95%Finance HDFC 740.32 3.48%LIC Housing Finance 610.60 2.87%Power Finance Corporation 572.82 2.69%CRISIL 397.96 1.87%GasPetronet LNG 508.13 2.39%Industrial Capital GoodsCrompton Greaves 609.70 2.87%Industrial ProductsCarborundum Universal 384.44 1.81%Sintex Industries 349.39 1.64%Minerals/Mining Gujarat Mineral Development Corporation 263.87 1.24%Non - Ferrous Metals Hindalco Industries 366.40 1.72%Hindustan Zinc 240.17 1.13%Oil Oil & Natural Gas Corporation 563.63 2.65%PesticidesUnited Phosphorus 528.30 2.48%Petroleum Products Reliance Industries 699.47 3.29%Pharmaceuticals Divi's Laboratories 493.75 2.32%Dr Reddy’s Laboratories 353.30 1.66%Software Infosys 1,045.94 4.92%Tech Mahindra 635.70 2.99%Eclerx Services 494.20 2.32%Tata Consultancy Services 472.73 2.22%Polaris Software Lab 446.31 2.10%Info Edge (India) 359.40 1.69%Telecom - ServicesBharti Airtel 320.93 1.51%Total 97.84%

HSBC India Opportunities Fund (HIOF) March 2013

8


% to NetAssets

CBLOs 623.99 2.93%Other Equity Investments 527.53 2.48%Net Current Assets -141.25 -0.66%Total Net Assets as on 31 March 2013 21,269.78 100.00%

Asset AllocationAuto 6.38%Auto Ancillaries 5.31%Banks 17.97%Cement 2.57%Chemicals 2.30%Construction Projects 3.95%Consumer Non Durables 2.91%Finance 10.92%Gas 2.39%Industrial Capital Goods 2.87%Industrial Products 3.45%Minerals/Mining 1.24%Non - Ferrous Metals 2.85%Oil 2.65%Pesticides 2.48%Petroleum Products 3.29%Pharmaceuticals 3.98%Software 16.24%Telecom - Services 1.51%Reverse Repos/CBLOs 2.93%Other Equity Investments 2.48%Net Current Assets -0.66%Total Net Assets 100.00%





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

Date of Allotment 24-Feb-04Benchmark S&P BSE 500NAV (Growth) per unit(as on 28.03.13)

` 34.6149

Fund Manager Tushar PradhanSIP AvailableMinimumApplication Amount

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



Statistical ratios disclosed as per daily returns of the last 3 years/since inception, whichever is later. @ Effective from March 1, 2013 for prospective investments.Risk free rate: 7.96% as on March 28, 2013.

HSBC India Opportunities Fund (HIOF) March 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 603.34 7.33%Balkrishna Industries 133.83 1.63%Banks Dena Bank 576.83 7.01%The Jammu & Kashmir Bank 568.82 6.91%Allahabad Bank 303.36 3.69%State Bank of Bikaner and Jaipur 202.57 2.46%State Bank of Travancore 140.93 1.71%CementEverest Industries 339.33 4.12%Hyderabad Industries 318.08 3.87%Consumer Durables Tube Investments of India 328.19 3.99%Hitachi Home & Life Solutions (India) 244.28 2.97%Bajaj Electricals 101.97 1.24%Consumer Non DurablesKRBL 403.90 4.91%Gujarat Ambuja Exports 326.66 3.97%Venky’s (India) 185.61 2.26%McLeod Russel India 115.52 1.40%Piramal Glass 86.69 1.05%Industrial Capital GoodsCommercial Engineers & Body Builders Co. 171.39 2.08%Industrial Products Diamond Power Infrastructure 169.75 2.06%Polyplex Corporation 126.43 1.54%FAG Bearings India 115.76 1.41%Media & EntertainmentPrime Focus 204.16 2.48%Minerals/Mining Gujarat Mineral Development Corporation 275.22 3.34%PesticidesPI Industries 543.32 6.60%Software Polaris Software Lab 495.29 6.02%Nucleus Software Exports 120.96 1.47%Textile - CottonVardhman Textiles 184.40 2.24%Textile ProductsSiyaram Silk Mills 88.90 1.08%Textile - Synthetic Bombay Dyeing & Manufacturing Company 256.39 3.12%JBF Industries 114.37 1.39%Transportation Gateway Distriparks 122.66 1.49%Total 96.83%

HSBC Midcap Equity Fund (HMEF) March 2013

10


% to NetAssets


Asset AllocationAuto Ancillaries 8.96%Banks 21.78%Cement 7.99%Consumer Durables 8.20%Consumer Non Durables 13.59%Industrial Capital Goods 2.08%Industrial Products 5.01%Media & Entertainment 2.48%Minerals/Mining 3.34%Pesticides 6.60%Software 7.49%Textile - Cotton 2.24%Textile Products 1.08%Textile - Synthetic 4.51%Transportation 1.49%Reverse Repos/CBLOs 0.71%Other Equity Investments 2.71%Net Current Assets -0.26%Total Net Assets 100.00%





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

Date of Allotment 19-May-05Benchmark S&P BSE MidcapNAV (Growth) per unit(as on 28.03.13)

` 16.9906

Fund Manager Dhiraj SachdevSIP AvailableMinimumApplicationAmount

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



Statistical ratios disclosed as per daily returns of the last 3 years/since inception, whichever is later. @ Effective from March 1, 2013 for prospective investments.Risk free rate: 7.96% as on March 28, 2013.

HSBC Midcap Equity Fund (HMEF) March 2013

11


Our exposure to midcap stocks in HSBC Midcap Equity Fund (HMEF) is 99.5014%

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 505.60 3.88%Auto Ancillaries Apollo Tyres 840.34 6.44%Banks The Jammu & Kashmir Bank 1,108.28 8.50%ICICI Bank 648.02 4.97%Dena Bank 635.45 4.87%Indian Bank 465.04 3.57%The Karnataka Bank 311.19 2.39%Allahabad Bank 307.47 2.36%Union Bank of India 283.40 2.17%United Bank of India 189.34 1.45%CementEverest Industries 400.47 3.07%ConstructionIRB Infrastructure Developers 192.87 1.48%Construction ProjectsGammon Infrastructure Projects 201.42 1.54%Consumer Non DurablesGujarat Ambuja Exports 182.80 1.40%Finance Rural Electrification Corporation 437.75 3.36%Aditya Birla Nuvo 414.61 3.18%Rane Holdings 338.00 2.59%GasGujarat State Petronet 134.00 1.03%Industrial Capital GoodsBharat Heavy Electricals 172.58 1.32%Commercial Engineers And Body Builders Co. 131.38 1.01%Industrial Products FAG Bearings India 533.29 4.09%Diamond Power Infrastructure 206.64 1.58%Polyplex Corporation 159.95 1.23%Media & EntertainmentPrime Focus 361.88 2.78%Minerals/MiningGujarat Mineral Development Corporation 377.66 2.90%Petroleum Products Hindustan Petroleum Corporation 424.95 3.26%Indian Oil Corporation 189.24 1.45%Power Reliance Infrastructure 283.89 2.18%Software Polaris Software Lab 721.22 5.53%Textile - Cotton Vardhman Textiles 262.70 2.01%Textile - Synthetic Bombay Dyeing & Manufacturing Company 418.51 3.21%JBF Industries 135.99 1.04%TransportationGateway Distriparks 501.33 3.84%Total 95.68%

HSBC Progressive Themes Fund (HPTF) March 2013

12


% to NetAssets


Asset AllocationAuto 3.88%Auto Ancillaries 6.44%Banks 30.28%Cement 3.07%Construction 1.48%Construction Projects 1.54%Consumer Non Durables 1.40%Finance 9.13%Gas 1.03%Industrial Capital Goods 2.33%Industrial Products 6.90%Media & Entertainment 2.78%Minerals/Mining 2.90%Petroleum Products 4.71%Power 2.18%Software 5.53%Textile - Cotton 2.01%Textile - Synthetic 4.25%Transportation 3.84%Reverse Repos/CBLOs 1.39%Net Current Assets -1.05%Other Equity Investments 3.98%Total Net Assets 100.00%





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

Date of Allotment 23-Feb-06Benchmark S&P BSE 200NAV (Growth) per unit(as on 28.03.13)

` 10.2139


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




HSBC Progressive Themes Fund (HPTF) March 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 363.22 1.98%Auto Ancillaries Amara Raja Batteries 592.04 3.22%Motherson Sumi Systems 353.05 1.92%Exide Industries 272.38 1.48%Banks ICICI Bank 1,019.07 5.55%HDFC Bank 827.03 4.50%Karur Vysya Bank 585.52 3.19%Bank of Baroda 453.89 2.47%ING Vysya Bank 419.59 2.28%Yes Bank 334.54 1.82%Cement Shree Cements 1,114.64 6.07%Grasim Industries 548.59 2.99%ChemicalsSupreme Industries 584.69 3.18%Consumer DurablesPC Jeweller 467.81 2.55%Construction ProjectsSadbhav Engineering 365.07 1.99%Consumer Non DurablesI T C 1,157.34 6.30%McLeod Russel India 527.90 2.87%Titan Industries 520.49 2.83%Hindustan Unilever 340.87 1.86%Jyothi Laboratories 206.71 1.12%Ferrous Metals Jindal Steel and Power 322.75 1.76%Finance HDFC 512.28 2.79%LIC Housing Finance 509.24 2.77%Fertilisers Coromandel International 320.83 1.75%GasPetronet LNG 352.30 1.92%Industrial Capital GoodsCrompton Greaves 381.77 2.08%Havells India 202.56 1.10%Minerals/MiningNMDC 542.92 2.95%Non - Ferrous Metals Hindustan Zinc 391.45 2.13%Pharmaceuticals Ipca Laboratories 512.08 2.79%Lupin 449.41 2.45%Divi's Laboratories 373.90 2.03%Software Tata Consultancy Services 800.48 4.36%Tech Mahindra 317.85 1.73%Telecom - Services Bharti Airtel 295.83 1.61%Tyres & RubberMRF 255.00 1.39%Total 95.76%

HSBC Tax Saver Equity Fund (HTSF) March 2013

14

Date of Allotment 05-Jan-07Benchmark S&P BSE 200NAV (Growth) per unit(as on 28.03.13)

` 15.6715

Fund Manager Aditya KhemaniSIP AvailableMinimumApplicationAmount

` 500(Lumpsum & SIP)





% to NetAssets

CBLOs 129.02 0.70%Other Equity Investments 302.17 1.64%Net Current Assets 348.65 1.90%Total Net Assets as on 31 March 2013 18,374.93 100.00%

Asset AllocationAuto 1.98%Auto Ancillaries 6.63%Banks 19.81%Cement 9.05%Chemicals 3.18%Consumer Durables 2.55%Construction Projects 1.99%Consumer Non Durables 14.98%Ferrous Metals 1.76%Finance 5.56%Fertilisers 1.75%Gas 1.92%Industrial Capital Goods 3.18%Minerals/Mining 2.95%Non - Ferrous Metals 2.13%Pharmaceuticals 7.27%Software 6.09%Telecom - Services 1.61%Tyres & Rubber 1.39%Reverse Repos/CBLOs 0.70%Net Current Assets 1.90%Other Equity Investments 1.64%Total Net Assets 100.00%





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

HSBC Tax Saver Equity Fund (HTSF) March 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 111.65 2.17%Bajaj Auto 84.58 1.64%Hero Motocorp 57.83 1.12%Auto Ancillaries Bosch 200.79 3.90%Amara Raja Batteries 109.82 2.13%Motherson Sumi System 80.19 1.56%Banks ICICI Bank 384.63 7.47%HDFC Bank 270.15 5.25%The Jammu & Kashmir Bank 252.32 4.90%Bank of Baroda 182.36 3.54%Karur Vysya Bank 162.62 3.16%Allahabad Bank 91.01 1.77%Indian Bank 88.08 1.71%Union Bank of India 54.50 1.06%CementGrasim Industries 225.06 4.37%Shree Cements 101.09 1.96%Construction ProjectsLarsen & Toubro 133.20 2.59%Consumer Non DurablesI T C 394.55 7.66%McLeod Russel India 129.52 2.51%FertilisersGujarat State Fertiliser 99.45 1.93%Coromandel International 69.49 1.35%Industrial Products Carborundum Universal 85.28 1.66%Minerals/MiningNMDC 82.26 1.60%Gujarat Mineral Development Corporation 76.19 1.48%Non - Ferrous Metals Hindustan Zinc 164.48 3.19%Hindalco Industries 64.76 1.26%Oil Oil & Natural Gas Corporation 194.63 3.78%Cairn India 100.81 1.96%Petroleum Products Reliance Industries 120.57 2.34%Pharmaceuticals Divi's Laboratories 131.34 2.55%Lupin 125.71 2.44%PowerNHPC 79.40 1.54%Software Infosys 249.35 4.84%Polaris Software Lab 66.78 1.30%Telecom - Services Bharti Airtel 90.44 1.76%Total 95.43%

HSBC Unique Opportunities Fund (HUOF) March 2013

16


% to NetAssets


Asset AllocationAuto 4.93%Auto Ancillaries 7.59%Banks 28.85%Cement 6.33%Construction Projects 2.59%Consumer Non Durables 10.18%Fertilisers 3.28%Industrial Products 1.66%Minerals/Mining 3.08%Non - Ferrous Metals 4.45%Oil 5.74%Petroleum Products 2.34%Pharmaceuticals 4.99%Power 1.54%Software 6.14%Telecom - Services 1.76%Reverse Repos/CBLOs 4.85%Net Current Assets -0.81%Other Equity Investments 0.54%Total Net Assets 100.00%

Date of Allotment 21-Mar-07Benchmark S&P BSE 200NAV (Growth) per unit(as on 28.03.13)

` 10.6739

Fund Manager Gaurav Mehrotra & Amaresh Mishra

SIP AvailableMinimumApplicationAmount

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


Standard Deviation 0.87%R-Squared,m 0.9304Beta (Slope) 0.9113Sharpe Ratio -0.0286Annualised Expense Ratio from 01 April 2012 onwards 2.67%Portfolio Turnover 0.27


HSBC Unique Opportunities Fund (HUOF) March 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 449.89 3.38%

Tata Motors 403.73 3.04%

Banks ICICI Bank 940.68 7.07%

HDFC Bank 625.35 4.70%

Bank of Baroda 506.55 3.81%

Allahabad Bank 316.00 2.38%

State Bank of India 269.46 2.03%

Indian Bank 264.23 1.99%

Punjab National Bank 215.37 1.62%

CementGrasim Industries 562.66 4.23%

Consumer DurablesPC Jeweller 174.34 1.31%

Construction ProjectsLarsen & Toubro 683.10 5.14%

Consumer Non DurablesI T C 618.90 4.65%

Finance HDFC 470.96 3.54%

CRISIL 238.77 1.80%

Rural Electrification Corporation 208.45 1.57%

GasPetronet LNG 406.50 3.06%

Minerals/Mining NMDC 411.30 3.09%

Coal India 194.73 1.46%

Non - Ferrous Metals Hindustan Zinc 239.57 1.80%

Hindalco Industries 219.84 1.65%

Oil Oil & Natural Gas Corporation 311.40 2.34%

Cairn India 272.45 2.05%

Petroleum Products Reliance Industries 656.97 4.94%

Pharmaceuticals Dr Reddy’s Laboratories 353.30 2.66%

Ipca Laboratories 317.90 2.39%

Lupin 282.85 2.13%

Divi's Laboratories 176.12 1.32%

PowerNTPC 425.85 3.20%

Software Infosys 722.34 5.43%

Tech Mahindra 423.80 3.19%

Tata Consultancy Services 315.15 2.37%

Total 95.35%

HSBC Dynamic Fund (HDF) March 2013

18


% to NetAssets

CBLOs 795.72 5.98%Net Current Assets -176.88 -1.33%Total Net Assets as on 31 March 2013 13,297.33 100.00%

Asset AllocationAuto 6.42%Banks 23.60%Cement 4.23%Consumer Durables 1.31%Construction Projects 5.14%Consumer Non Durables 4.65%Finance 6.91%Gas 3.06%Minerals/Mining 4.56%Non - Ferrous Metals 3.45%Oil 4.39%Petroleum Products 4.94%Pharmaceuticals 8.50%Power 3.20%Software 10.99%Reverse Repos/CBLOs 5.98%Net Current Assets -1.33%Total Net Assets 100.00%

Date of Allotment 24-Sep-07Benchmark S&P BSE 200NAV (Growth) per unit(as on 28.03.13)

` 9.7916

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


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




HSBC Dynamic Fund (HDF) March 2013

19

Date of Allotment 17-Mar-08Benchmark MSCI Emerging

Markets IndexNAV (Growth) per unit(as on 28.03.13)

` 10.4769

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


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


Standard Deviation 1.61%R-Squared 0.4125Beta (Slope) 1.0081Sharpe Ratio -0.0066Annualised Expense Ratio from 01 April 2012 onwards 1.76% 2.50% (inclusive of underlying scheme’s expenses)Portfolio Turnover 0.68


Asset AllocationOverseas Mutual Fund 97.36%Reverse Repos/CBLOs 3.18%Net Current Assets -0.54%Total Net Assets 100.00%


% to NetAssets

Overseas Mutual FundHSBC GIF Global Emerging Markets Equity (Fund domiciled in Luxembourg) 1,861.29 97.36%

CBLOs 60.82 3.18%Net Current Assets -10.30 -0.54%Total Net Assets as on 31 March 2013 1,911.81 100.00%

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) March 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 70.85 5.14%Majestic Auto 31.30 2.27%Balkrishna Industries 18.92 1.37%Banks State Bank of Travancore 75.25 5.46%State Bank of Bikaner and Jaipur 66.14 4.80%The Karnataka Bank 38.57 2.80%Cement Orient Cement 112.47 8.17%Chemicals India Glycols 54.20 3.93%Consumer Durables IFB Industries 62.76 4.56%Hitachi Home & Life Solutions (India) 44.03 3.20%Tube Investments of India 26.61 1.93%Bajaj Electricals 13.97 1.01%Consumer Non DurablesGujarat Ambuja Exports 79.38 5.76%Globus Spirits 56.52 4.10%KRBL 56.00 4.07%Greenply Industries 41.24 2.99%Lakshmi Energy and Foods 21.50 1.56%FinanceRane Holdings 99.88 7.25%Industrial Capital GoodsSanghvi Movers 37.60 2.73%Indo Tech Transformers 30.59 2.22%TIL 26.34 1.91%Industrial Products Ador Welding 48.18 3.50%PesticidesPI Industries 29.90 2.17%Software Nucleus Software Exports 125.43 9.11%Textile - Cotton RSWM 61.04 4.43%SRF 25.40 1.84%Total 98.31%

HSBC Small Cap Fund (HSCF) March 2013

21


% to NetAssets


Asset AllocationAuto Ancillaries 8.79%Banks 13.07%Cement 8.17%Chemicals 3.93%Consumer Durables 10.70%Consumer Non Durables 18.49%Finance 7.25%Industrial Capital Goods 6.86%Industrial Products 3.50%Pesticides 2.17%Software 9.11%Textile - Cotton 6.28%Reverse Repos/CBLOs 5.45%Net Current Assets -5.44%Other Equity Investments 1.68%Total Net Assets 100.00%





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

Date of Allotment 24-Mar-08

Benchmark S&P BSE Small Cap Index

NAV (Growth) per unit(as on 28.03.13)

` 8.6094


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



Statistical ratios disclosed as per returns of the last 3 years/since inception, whichever is later.@ Effective from March 1, 2013 for prospective investments.Risk free rate: 7.96% as on March 28, 2013.

HSBC Small Cap Fund (HSCF) March 2013

22


Our exposure to small cap stocks in HSBC Small Cap Fund (HSCF) is 91.7964%

Date of Allotment 06-May-11Benchmark MSCI Brazil

10/40 IndexNAV (Growth) per unit(as on 28.03.13)

` 9.7547

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


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


Standard Deviation 1.20%R-Squared 0.322Beta (Slope) 0.484Sharpe Ratio -0.0332Annualised Expense Ratio from 01 April 2012 onwards* 1.77% 2.50% (inclusive of underlying scheme’s expenses)Portfolio Turnover 0.57

Statistical ratios disclosed as per daily returns of the last 3 years/since inception, whichever is later. @ Effective from March 1, 2013 for prospective investments. Risk free rate: 7.96% as on March 28, 2013.* Accrual & Average Net Assets are for the period 05-May-11 to 31-Mar-12.

Asset AllocationOverseas Mutual Fund 98.43%Reverse Repos/CBLOs 2.69%Net Current Assets -1.13%Total Net Assets 100.00%


% to NetAssets

Overseas Mutual FundHSBC GIF Brazil Equity Fund (Fund domiciled in Luxembourg) 18,190.40 98.43%

CBLOs 497.98 2.69%

Net Current Assets -208.42 -1.13%

Total Net Assets as on 31 March 2013 18,479.96 100.00%

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) March 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 March 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 March 2013

25

l

l

l

l

l

l

l

Funds Managed by Tushar Pradhan.

Comparative Performance of Equity Schemes March 2013

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

Mar 13Apr 11 - Mar 12

Apr 10 - Mar 11

Since Inception

HSBC Equity Fund - Growth 4.20% -8.90% 9.67% 24.76%CNX Nifty Index (Standard Benchmark) 6.93% -9.13% 10.27% 17.41%S&P BSE 200 (Scheme Benchmark) 5.41% -9.55% 7.27% 18.68%`10,000, if invested in HSBC Equity Fund - Growth, would have become `10,420 `9,110 `10,967 `98,173

`10,000, if invested in CNX Nifty Index , would have become `10,693 `9,087 `11,027 `52,409

`10,000, if invested in S&P BSE 200 , would have become `10,541 `9,045 `10,727 `58,573

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


Apr 10 - Mar 11

Since Inception

HSBC India Opportunities Fund - Growth 0.21% -3.60% 11.00% 14.45%CNX Nifty Index (Standard Benchmark) 6.93% -9.13% 10.27% 13.06%S&P BSE 500 (Scheme Benchmark) 4.14% -9.47% 6.55% 13.22%`10,000, if invested in HSBC India Opportunities Fund - Growth, would have become `10,021 `9,640 `11,100 `34,233



26

Data for the period April to March 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 Apr 12 -


Apr 10 - Mar 11

Since Inception

HSBC Dynamic Fund - Growth 1.59% -8.24% 8.77% -0.65%CNX Nifty Index (Standard Benchmark) 6.93% -9.13% 10.27% 2.24%S&P BSE 200 (Scheme Benchmark) 5.41% -9.55% 7.27% 1.55%`10,000, if invested in HSBC Dynamic Fund - Growth, would have become `10,159 `9,176 `10,877 `9,648




27


HSBC Brazil Fund Date Of Inception : 06 May 11Scheme Name & Benchmarks Apr 12 - Mar 13 Since InceptionHSBC Brazil Fund - Growth -2.50% -1.68%MSCI Brazil 10/40 Index -14.53% -12.43%CNX Nifty Index (Standard Benchmark) 6.93% 0.22%`10,000, if invested in HBF, would have become `9,750 `9,681

`10,000, if invested in MSCI Brazil 10/40 Index, would have become `8,547 `7,772

`10,000, if invested in CNX Nifty Index , would have become `10,693 `10,042


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


Apr 10 - Mar 11

Since Inception

HSBC Emerging Markets Fund - Growth 4.55% -6.74% 11.30% 0.70%MSCI Emerging Market Index 1.77% -7.26% 9.33% 1.25%CNX Nifty Index (Standard Benchmark) 6.93% -9.13% 10.27% 4.32%`10,000, if invested in HMEF, would have become `10,455 `9,326 `11,130 `10,360

`10,000, if invested in MSCI Emerging Market Index, would have become `10,177 `9,274 `10,933 `10,646



Funds Managed by - Piyush Harlalka.

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


Apr 10 - Mar 11

Since Inception

HSBC Unique Opportunities Fund - Growth 4.82% -9.79% 8.92% 0.79%CNX Nifty Index (Standard Benchmark) 6.93% -9.13% 10.27% 6.71%S&P BSE 200 (Scheme Benchmark) 5.41% -9.55% 7.27% 6.52%`10,000, if invested in HSBC Unique Opportunities Fund - Growth, would have become

`10,482 `9,021 `10,892 `10,486




Fund Managed by Gaurav Mehrotra and Amaresh Mishra.

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


Apr 10 - Mar 11

Since Inception

HSBC Tax Saver Equity Fund - Growth 11.90% -4.42% 4.41% 7.00%CNX Nifty Index (Standard Benchmark) 6.93% -9.13% 10.27% 5.53%S&P BSE 200 (Scheme Benchmark) 5.41% -9.55% 7.27% 4.99%`10,000, if invested in HSBC Tax Saver Equity Fund - Growth, would have become `11,190 `9,558 `10,441 `15,263




Fund Managed by - Aditya Khemani.


28


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


Apr 10 - Mar 11

Since Inception

HSBC Small Cap Fund - Growth -6.02% -18.39% 0.04% -2.47%S&P BSE Small Cap (Standard Benchmark) 6.93% -9.13% 10.27% 3.85%CNX Nifty (Scheme Benchmark) -14.05% -20.74% -6.06% -3.13%`10,000, if invested in HSCF, would have become `9,398 `8,161 `10,004 `8,819

`10,000, if invested in S&P BSE Smallcap, would have become `10,693 `9,087 `11,027 `12,093

`10,000, if invested in CNX Nifty, would have become `8,595 `7,926 `9,394 `8,522


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


Apr 10 - Mar 11

Since Inception

HSBC Progressive Themes Fund - Growth -10.58% -4.28% -11.23% 0.30%CNX Nifty Index (Standard Benchmark) 6.93% -9.13% 10.27% 8.79%S&P BSE 200 (Scheme Benchmark) 5.41% -9.55% 7.27% 8.29%`10,000, if invested in HSBC Progressive Themes Fund - Growth, would have become `8,942 `9,572 `8,877 `10,215




Funds Managed by - Dhiraj Sachdev.

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


Apr 10 - Mar 11

Since Inception

HSBC Midcap Equity Fund - Growth -8.82% -8.51% -10.38% 7.17%CNX Nifty Index (Standard Benchmark) 6.93% -9.13% 10.27% 13.96%S&P BSE MID CAP (Scheme Benchmark) -4.30% -9.14% 0.11% 8.43%`10,000, if invested in HSBC Midcap Equity Fund - Growth, would have become `9,118 `9,149 `8,962 `17,263


`10,000, if invested in S&P BSE MID CAP , would have become `9,570 `9,086 `10,011 `18,919


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 InstrumentsCDsFixedING Vysya Bank 1,979.95 6.24% CARE A1+ICICI Bank 739.79 2.33% [ICRA] A1+Allahabad Bank 688.96 2.17% [ICRA] A1+Oriental Bank of Commerce 660.14 2.08% CRISIL A1+Corporate/PSU DebtFixedShriram Transport Finance Company 1,801.61 5.68% CRISIL AAPower Grid Corporation of India 1,750.81 5.52% CRISIL AAABajaj Finance 1,508.28 4.75% [ICRA] AA+HDFC 1,501.53 4.73% CRISIL AAARural Electrification Corporation 1,194.61 3.76% CARE AAALIC Housing Finance 1,004.29 3.16% CRISIL AAAPower Finance Corporation 1,003.67 3.16% CRISIL AAANABARD 812.53 2.56% CRISIL AAANABARD 708.92 2.23% CRISIL AAAPower Finance Corporation 506.02 1.59% CRISIL AAAHDFC 505.84 1.59% CRISIL AAATata Sons 505.13 1.59% CRISIL AAAPower Finance Corporation 450.81 1.42% CRISIL AAAPower Finance Corporation 450.81 1.42% CRISIL AAAShriram Transport Finance Company 300.22 0.95% CRISIL AAHDFC 283.96 0.89% CRISIL AAANABARD 203.29 0.64% CRISIL AAABank of Baroda 200.84 0.63% CRISIL AAANational Housing Bank 100.25 0.32% Fitch AAA (ind)Government Securities8.20% Government Stock M - 24-Sep-2025 2,726.73 8.59% Sovereign8.15% Government Stock M - 11-Jun-2022 1,037.92 3.27% Sovereign8.12% Government Stock M - 10-Dec-2020 944.60 2.98% Sovereign8.97% Government Stock M - 05-Dec-2030 42.67 0.13% SovereignEquitiesListed EquityShree Cements 626.65 1.97%ICICI Bank 504.83 1.59%Amara Raja Batteries 424.82 1.34%I T C 317.19 1.00%HDFC Bank 274.08 0.86%Tata Consultancy Services 258.82 0.82%Grasim Industries 253.20 0.80%NTPC 212.93 0.67%Bank of Baroda 211.97 0.67%Karur Vysya Bank 209.66 0.66%Shriram Transport Finance Company 208.34 0.66% N.AIpca Laboratories 201.17 0.63%LIC Housing Finance 195.66 0.62%NMDC 190.57 0.60%Petronet LNG 182.81 0.58%Divi's Laboratories 158.12 0.50%Vardhman Textiles 156.34 0.49%Crompton Greaves 150.08 0.47%Orient Cement 149.68 0.47%Tech Mahindra 148.33 0.47%Havells India 141.64 0.45%Cadila Healthcare 140.41 0.44%NHPC 138.95 0.44%Titan Industries 133.33 0.42%

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

29

Date of Allotment 24-Feb-04Benchmark CRISIL MIP

Blended IndexNAV (Growth) per unit(as on 28.03.13)

` 22.4419

Average Maturity of Portfolio

54.32 months

Modified Durationof Portfolio

37.28 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@ NilAnnualised Expense Ratio from 01 April 2012 onwards 2.24%

@ Effective from March 1, 2013 for prospective investments.

Asset AllocationMoney Market Instruments 12.82%Corporate/ PSU Debt 46.61%Government Securities 14.97%Cash Equivalents 0.77%Net Current Assets 2.99%Other Equity Investments 21.84%Total Net Assets 100.00%

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Bharti Airtel 130.70 0.41%Coromandel International 129.47 0.41%McLeod Russel India 128.96 0.41%Bajaj Auto 127.77 0.40%Motherson Sumi Systems 121.70 0.38%Hindustan Unilever 116.74 0.37% N.AJindal Steel and Power 115.80 0.36%Punjab National Bank 114.15 0.36%Supreme Industries 112.58 0.35%PC Jeweller 99.93 0.31%Sanghvi Movers 92.66 0.29%Hindustan Dorr-Oliver 31.39 0.10%Orient Paper & Industries 17.81 0.06%Total 96.25%Cash EquivalentsCBLOs 244.28 0.77%Net Current Assets 948.45 2.99%Total Net Assets as on 31 March 2013 31,736.12 100.00%

Rating ProfileAAA 48.06%AA+/ AA-/ AA 11.38%Sovereign 14.97%Reverse Repo/CBLOs 0.77%Net Current Assets 2.99%Other Equity Investments 21.84%Total Net Assets 100.00%

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

30





HSBC MIP - Savings Plan - Monthly Dividend24-Jan-13 0.05285 0.04530 12.441622-Feb-13 0.05285 0.04530 12.331628-Mar-13 0.05285 0.04530 12.1796HSBC MIP - Savings Plan - Monthly Dividend - Direct Plan24-Jan-13 0.05285 0.04530 12.450722-Feb-13 0.05285 0.04530 12.353028-Mar-13 0.05285 0.04530 12.2102HSBC MIP - Savings Plan - Quarterly Dividend14-Sep-12 0.17618 0.15101 12.040614-Dec-12 0.17618 0.15101 12.435515-Mar-13 0.17618 0.15101 12.3803HSBC MIP - Savings Plan - Quarterly Dividend - Direct Plan15-Mar-13 0.08809 0.07550 12.4028


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 477.95 2.51% CRISIL A1+CDsFixedING Vysya Bank 989.97 5.20% CARE A1+ICICI Bank 690.47 3.63% [ICRA] A1+Syndicate Bank 658.55 3.46% CARE A1+Allahabad Bank 196.85 1.03% [ICRA] A1+Corporate/PSU DebtFixedBajaj Finance 1,005.52 5.28% [ICRA] AA+HDFC 1,001.02 5.26% CRISIL AAAPower Grid Corporation of India 850.40 4.47% CRISIL AAANABARD 813.17 4.27% CRISIL AAALIC Housing Finance 803.44 4.22% CRISIL AAARural Electrification Corporation 796.41 4.18% CARE AAAPower Finance Corporation 702.57 3.69% CRISIL AAAShriram Transport Finance Company 700.63 3.68% CRISIL AAHDFC 567.91 2.98% CRISIL AAAPower Finance Corporation 506.02 2.66% CRISIL AAATata Sons 505.13 2.65% CRISIL AAAExport Import Bank of India 504.75 2.65% CRISIL AAANABARD 303.82 1.60% CRISIL AAAPower Finance Corporation 300.54 1.58% CRISIL AAAPower Finance Corporation 300.54 1.58% CRISIL AAANABARD 203.13 1.07% CRISIL AAANational Housing Bank 200.50 1.05% Fitch AAA (ind)Bank of Baroda 150.63 0.79% CRISIL AAAGovernment Securities8.20% Government Stock M - 24-Sep-2025 1,832.97 9.63% Sovereign8.15% Government Stock M - 11-Jun-2022 491.11 2.58% SovereignEquitiesListed EquityICICI Bank 177.68 0.93%I T C 171.74 0.90%Shree Cements 143.74 0.75%HDFC Bank 133.02 0.70%Amara Raja Batteries 126.61 0.66%HDFC 123.94 0.65%Tata Consultancy Services 106.36 0.56%NTPC 92.27 0.48%Bank of Baroda 92.12 0.48%Supreme Industries 87.90 0.46%Petronet LNG 80.48 0.42% N.A.Ipca Laboratories 74.12 0.39%Bharti Airtel 71.77 0.38%Yes Bank 70.77 0.37%Crompton Greaves 70.35 0.37%Infosys 69.63 0.37%Shriram Transport Finance Company 69.45 0.36%McLeod Russel India 65.11 0.34%Karur Vysya Bank 65.08 0.34%Bajaj Auto 64.78 0.34%Jindal Steel and Power 62.60 0.33%Tech Mahindra 60.39 0.32%Grasim Industries 59.08 0.31%Motherson Sumi Systems 58.55 0.31%

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

31

Date of Allotment 24-Feb-04Benchmark CRISIL MIP

Blended IndexNAV (Growth) per unit(as on 28.03.13)

` 19.7434


51.05 months


35.58 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@ NilAnnualised Expense Ratio from 01 April 2012 onwards 2.31%@ Effective from March 1, 2013 for prospective investments.

Asset AllocationMoney Market Instruments 15.83%Corporate/ PSU Debt 53.65%Government Securities 12.21%Cash Equivalents 0.80%Net Current Assets 3.25%Other Equity Investments 14.27%Total Net Assets 100.00%

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Titan Industries 53.84 0.28%Oil & Natural Gas Corporation 52.94 0.28%Divi's Laboratories 52.71 0.28%NMDC 50.73 0.27%Havells India 45.07 0.24%Hindustan Unilever 40.62 0.21% N.A.Vardhman Textiles 38.63 0.20%Orient Cement 37.86 0.20%Cadila Healthcare 37.07 0.19%LIC Housing Finance 33.74 0.18%Punjab National Bank 32.31 0.17%PC Jeweller 21.27 0.11%Hindustan Dorr-Oliver 9.42 0.05%Sanghvi Movers 8.51 0.04%Orient Paper & Industries 4.50 0.02%Total 95.95%Cash EquivalentsCBLOs 152.68 0.80%Net Current Assets 618.60 3.25%Total Net Assets as on 31 March 2013 19,042.02 100.00%

Rating ProfileAAA 60.52%AA+/ AA-/ AA 8.96%Sovereign 12.21%Reverse Repo/CBLOs 0.80%Net Current Assets 3.25%Other Equity Investments 14.27%Total Net Assets 100.00%

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

32





HSBC MIP - Regular Plan - Monthly Dividend24-Jan-13 0.05285 0.04530 11.399022-Feb-13 0.05285 0.04530 11.337528-Mar-13 0.05285 0.04530 11.2617HSBC MIP - Regular Plan - Quarterly Dividend14-Sep-12 0.17618 0.15101 11.472214-Dec-12 0.17618 0.15101 11.664815-Mar-13 0.17618 0.15101 11.6883


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 InstrumentsCDsFixedIDBI Bank 885.00 9.86% CRISIL A1+Corporation Bank 491.04 5.47% CRISIL A1+Oriental Bank of Commerce 462.13 5.15% CRISIL A1+Securitised DebtFixedIndia MBS 2002 Series I-D (LIC Housing Finance) PTC 28.20 0.31% CRISIL

AAA(SO)Corporate/PSU DebtFixedPower Grid Corporation of India 900.42 10.03% CRISIL AAAState Bank of India 702.12 7.82% CRISIL AAAExport Import Bank of India 501.33 5.58% CRISIL AAAHDFC 500.51 5.58% CRISIL AAAPower Finance Corporation 301.10 3.35% CRISIL AAABajaj Finance 201.38 2.24% [ICRA] AA+LIC Housing Finance 200.86 2.24% CRISIL AAAPower Finance Corporation 200.36 2.23% CRISIL AAAPower Finance Corporation 200.36 2.23% CRISIL AAAShriram Transport Finance Company 200.18 2.23% CRISIL AANABARD 101.57 1.13% CRISIL AAAUnion Bank of India 100.63 1.12% CRISIL AAARural Electrification Corporation 99.55 1.11% CARE AAABank of Baroda 50.21 0.56% CRISIL AAAGovernment Securities8.20% Government Stock M - 24-Sep-2025 903.86 10.07% Sovereign8.15% Government Stock M - 11-Jun-2022 718.95 8.01% Sovereign8.12% Government Stock M - 10-Dec-2020 477.38 5.32% Sovereign8.97% Government Stock M - 05-Dec-2030 64.01 0.71% Sovereign5.59% Government Stock M - 04-Jun-2016 0.37 0.00% SovereignTotal 92.36%Cash EquivalentsCBLOs 62.87 0.70%Reverse Repos 95.59 1.06%Net Current Assets 527.65 5.88%Total Net Assets as on 31 March 2013 8,977.62 100.00%

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

33

Date of Allotment 10-Dec-02Benchmark CRISIL Composite

Bond Fund IndexNAV (Growth) per unit(as on 28.03.13)

` 20.3272


71.49 months


46.84 months

Yield To Maturity* 8.86%Fund Manager Ruchir Parekh &

Sanjay ShahSIP AvailableMinimumApplicationAmount

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

Exit Load@ NilAnnualised Expense Ratio from 01 April 2012 onwards Regular 1.91%Direct Plan 0.67%

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

Asset AllocationMoney Market Instruments 20.47%Securitised Debt 0.31%Corporate / PSU Debt 47.46%Government Securities 24.11%Cash Equivalents 1.77%Net Current Assets 5.88%





HSBC Income Fund - Investment Plan - Regular Option - Quarterly Dividend14-Sep-12 0.22023 0.18876 11.452314-Dec-12 0.22023 0.18876 11.453315-Mar-13 0.22023 0.18876 11.6100HSBC Income Fund - Investment Plan - Institutional Option - Quarterly Dividend12-Jun-09 0.11387 0.10598 11.029411-Sep-09 0.11387 0.10598 10.996011-Dec-09 0.11387 0.10598 11.0973

Rating ProfileAAA 63.77%AA 4.47%Sovereign 24.11%Reverse Repos/ CBLOs 1.77%Net Current Assets 5.88%

HSBC Income Fund - Investment Plan (HIF-IP) March 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 InstrumentsCPsSundaram Finance 1,952.97 1.89% [ICRA] A1+Kotak Mahindra Prime 1,199.44 1.16% CRISIL A1+CDsFixedOriental Bank of Commerce 4,234.10 4.09% CRISIL A1+Corporation Bank 2,788.32 2.69% CRISIL A1+State Bank of Hyderabad 2,498.83 2.41% [ICRA] A1+United Bank of India 2,479.73 2.40% CARE A1+Canara Bank 2,461.76 2.38% CRISIL A1+IDBI Bank 2,458.33 2.37% CRISIL A1+Punjab National Bank 2,352.28 2.27% CARE A1+Corporation Bank 2,352.14 2.27% CRISIL A1+Central Bank of India 2,348.23 2.27% CARE A1+Canara Bank 2,310.64 2.23% CRISIL A1+Punjab National Bank 2,310.64 2.23% CARE A1+Vijaya Bank 1,966.07 1.90% [ICRA] A1+State Bank of Patiala 1,887.42 1.82% [ICRA] A1+Axis Bank 1,773.49 1.71% CRISIL A1+Oriental Bank of Commerce 1,697.51 1.64% CRISIL A1+Syndicate Bank 1,693.42 1.64% CARE A1+Andhra Bank 1,615.35 1.56% CARE A1+Kotak Mahindra Bank 908.39 0.88% CRISIL A1+ING Vysya Bank 792.19 0.77% CARE A1+Vijaya Bank 499.76 0.48% CARE A1+Punjab and Sind Bank 423.66 0.41% [ICRA] A1+State Bank of Hyderabad 349.92 0.34% [ICRA] A1+Canara Bank 198.35 0.19% CRISIL A1+United Bank of India 99.02 0.10% [ICRA] A1+ICICI Bank 73.58 0.07% [ICRA] A1+Yes Bank 64.40 0.06% [ICRA] A1+Corporate/PSU Debt

FixedRural Electrification Corporation 5,380.35 5.20% CRISIL AAAPower Finance Corporation 4,048.14 3.91% CRISIL AAAPower Finance Corporation 3,512.83 3.39% CRISIL AAAShriram Transport Finance Company 3,009.36 2.91% CRISIL AAHDFC 2,529.21 2.44% CRISIL AAAPower Finance Corporation 2,525.98 2.44% CRISIL AAATata Sons 2,525.67 2.44% CRISIL AAALIC Housing Finance 2,518.60 2.43% CRISIL AAAHDFC 2,518.43 2.43% CRISIL AAAHDFC 2,517.82 2.43% CRISIL AAABajaj Finance 2,517.27 2.43% [ICRA] AA+HDFC 2,517.11 2.43% CRISIL AAABajaj Finance 2,513.80 2.43% [ICRA] AA+Export Import Bank of India 2,494.18 2.41% CRISIL AAAShriram Transport Finance Company 2,201.60 2.13% CRISIL AAShriram Transport Finance Company 2,001.79 1.93% CRISIL AALIC Housing Finance 1,511.06 1.46% CRISIL AAASundaram Finance 1,148.58 1.11% [ICRA] AA+Tata Capital Financial Services 1,099.39 1.06% [ICRA] AA+Rural Electrification Corporation 1,013.50 0.98% CRISIL AAAHDFC 1,001.02 0.97% CRISIL AAA

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

35

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


` 19.5847


18.86 months


15.22 months



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

Exit Load@ Nil

Annualised Expense Ratio from 01 April 2012 onwards Regular 1.26%Institutional 0.72%Institutional Plus 0.64%Direct Plan 0.45%

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

Asset AllocationMoney Market Instruments 44.23%Corporate / PSU Debt 52.83%Cash Equivalents 0.88%Net Current Assets 2.06%

Rating ProfileAAA 82.28%AA 14.78%Reverse Repos/ CBLOs 0.88%Net Current Assets 2.06%





HSBC Income Fund - Short Term Plan - Regular Option - Monthly Dividend24-Jan-13 0.06183 0.05300 11.081922-Feb-13 0.05947 0.05097 11.040928-Mar-13 0.07397 0.06340 11.0765HSBC Income Fund - Short Term Plan - Monthly Dividend - Direct Plan28-Mar-13 0.09788 0.08390 11.1040HSBC Income Fund - Short Term Plan - Institutional Option - Monthly Dividend28-Dec-12 0.06057 0.05192 10.615124-Jan-13 0.06312 0.05410 10.635922-Feb-13 0.06114 0.05240 10.5969HSBC Income Fund - Short Term Plan - Institutional Plus Option - Monthly Dividend30-Dec-11 0.08478 0.07266 10.120027-Jan-12 0.05533 0.04742 10.086624-Feb-12 0.05663 0.04854 10.0881

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

36

Power Grid Corporation of India 1,000.71 0.97% CRISIL AAANational Housing Bank 701.74 0.68% Fitch AAA (ind)HDFC 567.91 0.55% CRISIL AAAShriram Transport Finance Company 501.14 0.48% CRISIL AARural Electrification Corporation 497.75 0.48% CARE AAATata Capital Financial Services 309.30 0.30% CRISIL AA+Total 97.06Cash EquivalentsCBLOs 210.98 0.20%Reverse Repos 697.97 0.67%Net Current Assets 2,132.50 2.06%Total Net Assets as on 31 March 2013 1,03,515.63 100.00%


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 InstrumentsCPsTata Motors Finance 2,485.20 10.70% [ICRA] A1+HDFC 1,985.20 8.54% [ICRA] A1+Kotak Mahindra Prime 1,433.84 6.17% CRISIL A1+CDsFixedKotak Mahindra Bank 2,481.82 10.68% CRISIL A1+Bank of India 2,479.79 10.67% CRISIL A1+IDBI Bank 2,464.30 10.61% CRISIL A1+Corporation Bank 2,190.83 9.43% CRISIL A1+Axis Bank 2,066.91 8.90% CRISIL A1+Vijaya Bank 1,999.06 8.60% CARE A1+ING Vysya Bank 1,979.95 8.52% CARE A1+Allahabad Bank 1,615.35 6.95% [ICRA] A1+Allahabad Bank 1,574.76 6.78% [ICRA] A1+ICICI Bank 493.19 2.12% [ICRA] A1+Vijaya Bank 491.52 2.12% [ICRA] A1+Total 110.79%Cash EquivalentsCBLOs 6.06 0.03%Reverse Repos 20.05 0.09%Net Current Assets -2,533.99 -10.91%Total Net Assets as on 31 March 2013 23,233.83 100.00%

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

March 2013

37

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

IndexNAV (Growth) per unit(as on 28.03.13)

` 18.3244


2.16 months


1.98 months

Yield To Maturity* 9.23%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 0.17% @ Effective from March 1, 2013 for prospective investments.* Based on invested Amount

Asset AllocationMoney Market Instruments 110.79%Cash Equivalents 0.11%Net Current Assets -10.91%





HSBC Floating Rate Fund - Long Term Plan - Regular Option - Monthly Dividend24-Jan-13 0.04757 0.04077 10.054022-Feb-13 0.03927 0.03365 10.044628-Mar-13 0.06219 0.05330 10.0706HSBC Floating Rate Fund - Long Term Plan - Institutional Option - Monthly Dividend28-Dec-12 0.05668 0.04858 10.198224-Jan-13 0.05438 0.04661 10.196122-Feb-13 0.04970 0.04260 10.1876HSBC Floating Rate Fund - Long Term Plan - Monthly Dividend - Direct Plan28-Mar-13 0.03206 0.02747 10.2129

Rating ProfileAAA 110.79%Reverse Repos/ CBLOs 0.11%Net Current Assets -10.91%

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

March 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 InstrumentsCPsKotak Mahindra Prime 2,488.71 5.31% CRISIL A1+Tata Capital Financial Services 2,488.71 5.31% [ICRA] A1+Mahindra & Mahindra Financial Services 2,473.50 5.27% CRISIL A1+Export Import Bank of India 2,469.09 5.26% CRISIL A1+HDFC 496.30 1.06% [ICRA] A1+CDsFixedIndian Bank 2,499.41 5.33% Fitch A1+Central Bank of India 2,499.35 5.33% CARE A1+ING Vysya Bank 2,489.74 5.31% CRISIL A1+Kotak Mahindra Bank 2,489.10 5.31% CRISIL A1+Axis Bank 2,485.90 5.30% CRISIL A1+Karur Vysya Bank 2,478.88 5.29% CRISIL A1+Oriental Bank of Commerce 2,475.57 5.28% CRISIL A1+State Bank of Patiala 2,470.56 5.27% [ICRA] A1+State Bank of Bikaner and Jaipur 2,470.55 5.27% CRISIL A1+Allahabad Bank 2,469.18 5.26% [ICRA] A1+HDFC Bank 2,468.15 5.26% CARE A1+United Bank of India 2,376.57 5.07% [ICRA] A1+Canara Bank 2,281.07 4.86% CRISIL A1+State Bank of Hyderabad 2,149.49 4.58% [ICRA] A1+ING Vysya Bank 1,683.40 3.59% CARE A1+Fixed DepositAllahabad Bank 1,640.00 3.50% UnratedTotal 102.01%Cash EquivalentsCBLOs 186.97 0.40%Reverse Repos 324.29 0.69%Net Current Assets -1,453.68 -3.10%Total Net Assets as on 31 March 2013 46,900.81 100.00%

HSBC Cash Fund (HCF) March 2013

39

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


` 1168.8178


1.05 months


0.95 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 0.98% Institutional 0.54%Institutional Plus 0.11%Direct Plan 0.01%@ Effective from March 1, 2013 for prospective investments.* Based on invested Amount





HSBC Cash Fund - Institutional Option - Monthly Dividend24-Jan-13 4.94183 4.74007 1006.282322-Feb-13 5.18407 4.97241 1006.596028-Mar-13 6.36248 6.10272 1008.0930HSBC 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 March 2013 to

31 March 2013***

Average for the Month

Normal (erst-while insti-plus) 0.01 0.01

Direct 0.01 0.01

Asset AllocationMoney Market Instruments 98.51%Fixed Deposit 3.50%Cash Equivalents 1.09%Net Current Assets -3.10%

Rating ProfileAAA 98.51%Fixed Deposit 3.50%Reverse Repos/ CBLOs 1.09%Net Current Assets -3.10%

HSBC Cash Fund (HCF) March 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


` 15.1527


65.69 months


42.46 months

Yield To Maturity* 10.47%Fund Manager Sanjay ShahSIP AvailableMinimum ` 10,000Application ` 1,000 p.m.(SIP)AmountExit Load@ Nil

Annualised Expense Ratio from 01 April 2012 onwards 0.91%@ Effective from March 1, 2013 for prospective investments.* Based on invested Amount

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

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Government Securities8.20% Government Stock M - 24-Sep-2025 50.50 22.87% Sovereign8.15% Government Stock M - 11-Jun-2022 35.44 16.05% Sovereign8.12% Government Stock M - 10-Dec-2020 30.47 13.80% SovereignTotal 52.71%Cash EquivalentsCBLOs 19.05 8.63%Reverse Repos 63.03 28.54%Net Current Assets 22.34 10.12%Total Net Assets as on 31 March 2013 220.83 100.00%





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 52.71%Cash Equivalents 37.17%Net Current Assets 10.12%

Rating ProfileSovereign 52.71%Reverse Repos/ CBLOs 37.17%Net Current Assets 10.12%

HSBC Gilt Fund (HGF) March 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 477.95 10.45% CRISIL A1+CDsFixedAndhra Bank 692.29 15.14% CARE A1+Allahabad Bank 692.29 15.14% [ICRA] A1+IDBI Bank 688.12 15.05% CRISIL A1+ICICI Bank 542.51 11.86% [ICRA] A1+State Bank of Patiala 471.86 10.32% [ICRA] A1+Oriental Bank of Commerce 470.46 10.29% CRISIL A1+Axis Bank 393.70 8.61% CRISIL A1+Total 96.85%Cash EquivalentsCBLOs 37.69 0.82%Reverse Repos 124.69 2.73%Net Current Assets -18.50 -0.40%Total Net Assets as on 31 March 2013 4,573.06 100.00%

HSBC Ultra Short Term Bond Fund (HUSBF) March 2013

42

Date of Allotment 17-Oct-06Benchmark Customised

Benchmark Index**NAV (Growth) per unit(as on 28.03.13)

` 10.3933


6.61 months


6.06 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@ NilAnnualised Expense Ratio from 01 April 2012 onwards Regular 1.31% Institutional 0.57%Institutional Plus 0.31%Direct Plan 0.17%

@ Effective from March 1, 2013 for prospective investments.** Composite index of CRISIL Liquid Fund Index(90%) and CRISIL Short Term Bond Fund Index(10%).* Based on invested Amount

Asset AllocationMoney Market Instruments 96.85%Cash Equivalents 3.55%Net Current Assets -0.40%

Rating ProfileAAA 96.85%Reverse Repos/ CBLOs 3.55%Net Current Assets -0.40%





HSBC Ultra Short Term Bond Fund - Institutional Option - Monthly Dividend24-Jan-13 0.05807 0.04977 10.204422-Feb-13 0.03527 0.03023 10.178528-Mar-13 0.08105 0.06947 10.2305HSBC 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) March 2013

43


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

HSBC Ultra Short Term Bond Fund

01 March 2013 to

31 March 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 InstrumentsCPsExport Import Bank of India 2,456.75 3.10% [ICRA] A1+Sundaram Finance 488.24 0.62% [ICRA] A1+CDsFixedOriental Bank of Commerce 4,159.14 5.25% CRISIL A1+Axis Bank 3,152.87 3.98% CRISIL A1+ING Vysya Bank 2,465.61 3.11% CRISIL A1+Canara Bank 2,461.76 3.11% CRISIL A1+State Bank of Patiala 2,359.28 2.98% [ICRA] A1+Canara Bank 2,310.64 2.92% CRISIL A1+Corporation Bank 1,964.16 2.48% CRISIL A1+IDBI Bank 1,769.46 2.23% CRISIL A1+IDBI Bank 1,573.33 1.99% CRISIL A1+Corporate/PSU DebtFixedState Bank of India 3,811.49 4.81% CRISIL AAAHDFC 3,503.56 4.42% CRISIL AAAPower Grid Corporation of India 3,501.63 4.42% CRISIL AAAPower Finance Corporation 3,011.00 3.80% CRISIL AAABajaj Finance 2,315.89 2.92% [ICRA] AA+Shriram Transport Finance Company 2,004.58 2.53% CRISIL AALIC Housing Finance 1,511.16 1.91% CRISIL AAAExport Import Bank of India 1,510.88 1.91% CRISIL AAAExport Import Bank of India 1,509.76 1.91% CRISIL AAALIC Housing Finance 1,506.44 1.90% CRISIL AAAPower Finance Corporation 1,051.89 1.33% CRISIL AAAPower Finance Corporation 1,051.88 1.33% CRISIL AAAHDFC 1,011.68 1.28% CRISIL AAAShriram Transport Finance Company 1,003.12 1.27% CRISIL AANABARD 914.09 1.15% CRISIL AAAUnion Bank of India 905.67 1.14% CRISIL AAARural Electrification Corporation 895.96 1.13% CARE AAABank of Baroda 602.51 0.76% CRISIL AAAExport Import Bank of India 504.75 0.64% CRISIL AAAExport Import Bank of India 501.33 0.63% CRISIL AAAShriram Transport Finance Company 300.27 0.38% CRISIL AAHDFC 283.96 0.36% CRISIL AAARural Electrification Corporation 203.03 0.26% CRISIL AAAGovernment Securities8.20% Government Stock M - 24-Sep-2025 8,119.60 10.25% Sovereign8.12% Government Stock M - 10-Dec-2020 3,118.20 3.93% Sovereign8.15% Government Stock M - 11-Jun-2022 2,779.59 3.51% Sovereign8.97% Government Stock M - 05-Dec-2030 426.73 0.54% SovereignTotal 92.14%Cash EquivalentsCBLOs 1,237.55 1.56%Reverse Repos 1,283.84 1.62%Net Current Assets 3,705.74 4.68%Total Net Assets as on 31 March 2013 79,249.02 100.00%

HSBC Flexi Debt Fund (HFDF) March 2013

44

Date of Allotment 05-Oct-07Benchmark CRISIL Composite


` 16.2307


54.45 months


36.28 months


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

Annualised Expense Ratio from 01 April 2012 onwards Regular 1.90%Institutional 1.63% Direct Plan 0.58%@ Effective from March 1, 2013 for prospective investments.* Based on invested Amount





HSBC Flexi Debt Fund - Regular Option - Monthly Dividend24-Jan-13 0.14464 0.12397 10.545522-Feb-13 0.09114 0.07812 10.463928-Mar-13 0.07264 0.06226 10.4007HSBC Flexi Debt Fund - Institutional Option - Monthly Dividend24-Jan-13 0.14972 0.12832 10.786922-Feb-13 0.09512 0.08153 10.703628-Mar-13 0.06317 0.05414 10.6393HSBC Flexi Debt Fund - Monthly Dividend - Direct Plan28-Mar-13 0.04817 0.04129 10.6778HSBC Flexi Debt Fund - Regular Option - Quarterly Dividend14-Sep-12 0.17618 0.15101 11.835514-Dec-12 0.19821 0.16988 11.885915-Mar-13 0.19821 0.16988 12.0686HSBC Flexi Debt Fund - Institutional Option - Quarterly Dividend14-Sep-12 0.17618 0.15101 11.730914-Dec-12 0.19821 0.16988 11.787015-Mar-13 0.19821 0.16988 11.9737HSBC Flexi Debt Fund - Quarterly Dividend - Direct Plan15-Mar-13 0.19821 0.16988 12.0001HSBC Flexi Debt Fund - Regular Option - Half Yearly Dividend16-Mar-12 0.35236 0.30201 11.267214-Sep-12 0.35236 0.30201 11.431515-Mar-13 0.35236 0.30201 11.6629HSBC Flexi Debt Fund - Institutional Option - Half-yearly Dividend15-Mar-13 0.35236 0.30201 10.9757HSBC Flexi Debt Fund - Half-yearly Dividend - Direct Plan15-Mar-13 0.35236 0.30201 10.9999

Asset AllocationMoney Market Instruments 31.75%Corporate / PSU Debt 42.17%Government Securities 18.23%Cash Equivalents 3.18%Net Current Assets 4.68%

Rating ProfileAAA 66.82%AA 7.10%Sovereign 18.23%Reverse Repos/ CBLOs 3.18%Net Current Assets 4.68%

HSBC Flexi Debt Fund (HFDF) March 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 March 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 March 2013

47

Data for the period April to March 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 Apr 12 -


Apr 10 - Mar 11

Since Inception

HSBC MIP - Regular Plan - Growth 10.07% 5.20% 3.45% 7.74%Crisil 1 Yr T-Bill Index (Standard Benchmark) 8.37% 6.59% 3.86% 5.41%Crisil 10 Yr Gilt Index (Standard Benchmark) 11.31% 2.41% 4.61% 4.79%Crisil MIP Blended Index (Scheme Benchmark) 9.09% 5.26% 6.04% 7.20%

`10,000, if invested in HSBC MIP - Regular Plan - Growth, would have become `11,007 `10,520 `10,345 `19,728

`10,000, if invested in Crisil 1 Yr T-Bill Index, would have become `10,837 `10,659 `10,386 `16,166

`10,000, if invested in Crisil 10 Yr Gilt Index, would have become `11,131 `10,241 `10,461 `15,322

`10,000, if invested in Crisil MIP Blended Index, would have become `10,909 `10,526 `10,604 `18,842

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


Apr 10 - Mar 11

Since Inception

HSBC MIP - Savings Plan - Growth 10.74% 4.94% 3.53% 9.25%Crisil 1 Yr T-Bill Index (Standard Benchmark) 8.37% 6.59% 3.86% 5.41%Crisil 10 Yr Gilt Index (Standard Benchmark) 11.31% 2.41% 4.61% 4.79%Crisil MIP Blended Index (Scheme Benchmark) 9.09% 5.26% 6.04% 7.20%

`10,000, if invested in HSBC MIP - Savings Plan - Growth, would have become `11,074 `10,494 `10,353 `22,401

`10,000, if invested in Crisil 1 Yr T-Bill Index , would have become `10,837 `10,659 `10,386 `16,166

`10,000, if invested in Crisil 10 Yr Gilt Index , would have become `11,131 `10,241 `10,461 `15,322

`10,000, if invested in Crisil MIP Blended Index , would have become `10,909 `10,526 `10,604 `18,842

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 Apr 12 -


Apr 10 - Mar 11

Since Inception

HSBC Gilt Fund - Growth 12.37% 8.15% 7.86% 4.57%I-Sec Composite Bond Fund Index (Scheme Benchmark) 11.71% 6.77% 6.38% 6.77%

Crisil 10 Year Gilt Index (Standard Benchmark) 11.31% 2.41% 4.61% 4.77%`10,000, if invested in HGF, would have become `11,237 `10,815 `10,786 `15,178

`10,000, if invested in I-Sec Composite Bond Fund Index, would have become `11,171 `10,677 `10,638 `18,415

`10,000, if invested in Crisil 10 Year Gilt Index, would have become `11,131 `10,241 `10,461 `15,449

Fund Managed by - Sanjay Shah.



48


47

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


Apr 10 - Mar 11

Since Inception

HSBC FRF - LTP - Growth 9.17% 9.38% 6.50% 7.50%Crisil 1 Yr T-Bill Index (Standard Benchmark) 8.37% 6.59% 3.86% 5.66%Crisil Liquid Fund Index (Scheme Benchmark) 8.22% 8.45% 6.21% 6.67%

`10,000, if invested in HSBC FRF - LTP - Growth, would have become `10,917 `10,938 `10,650 `18,340


`10,000, if invested in Crisil Liquid Fund Index , would have become `10,822 `10,845 `10,621 `17,186

Funds Managed by - Sanjay Shah & Ruchir Parekh.


HSBC Ultra Short Term Bond Fund$ Date of Inception : 17 Oct 06Scheme Name & Benchmarks Since InceptionHSBC Ultra Short Term Bond Fund - Regular - Growth 8.06%Customised Benchmark Index Fund (Scheme Benchmark)* 7.88%Crisil 1 Year T-Bill Index (Standard Benchmark) 8.11%`10,000, if invested in HUSTBF, would have become `10,385 `10,000, if invested in Customised Benchmark Index, would have become `10,377

`10,000, if invested in Crisil 1 Year T-Bill Index, would have become `10,388


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


Apr 10 - Mar 11

Since Inception

HSBC Flexi Debt Fund - Growth 11.26% 9.54% 6.07% 9.28%Crisil 10 Yr Gilt Index (Standard Benchmark) 11.31% 2.41% 4.61% 6.70%Crisil Composite Bond Fund Index (Scheme Benchmark) 9.27% 7.68% 5.06% 6.96%

`10,000, if invested in HSBC Flexi Debt Fund - Growth, would have become `11,126 `10,954 `10,607 `16,286


`10,000, if invested in Crisil Composite Bond Fund Index , would have become `10,927 `10,768 `10,506 `14,472


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

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


49


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


Apr 10 - Mar 11

Since Inception

HSBC Income Fund - Invtt Plan - Growth 11.19% 8.86% 5.51% 7.15%Crisil 10 Yr Gilt Index (Standard Benchmark) 11.31% 2.41% 4.61% 5.63%Crisil Composite Bond Fund Index (Scheme Benchmark) 9.27% 7.68% 5.06% 5.86%

`10,000, if invested in HSBC Income Fund - Invtt Plan - Growth, would have become `11,119 `10,886 `10,551 `20,404


`10,000, if invested in Crisil Composite Bond Fund Index , would have become `10,927 `10,768 `10,506 `18,006

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


Apr 10 - Mar 11

Since Inception

HSBC Income Fund - S T P - Growth 9.26% 8.41% 5.80% 6.76%Crisil 1 Yr T-Bill Index (Standard Benchmark) 8.37% 6.59% 3.86% 5.41%CRISIL Short-Term Bond Fund Index (Scheme Benchmark) 9.09% 8.28% 5.13% 6.44%

`10,000, if invested in HSBC Income Fund - S T P - Growth, would have become `10,926 `10,841 `10,580 `19,652


`10,000, if invested in CRISIL Short-Term Bond Fund Index , would have become `10,909 `10,828 `10,513 `19,048

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

Apr 12 - Mar 13

Since Inception

HSBC Cash Fund - Growth 9.23% 9.00% 8.74% 8.91% 8.73%

Crisil Liquid Fund Index (Scheme Benchmark) 8.47% 8.24% 8.33% 8.22% 6.51%

Crisil 91 Day T-Bill Index (Standard Benchmark) 7.25% 8.40% 7.84% 8.49% 8.05%

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

`10,018 `10,037 `10,072 `10,891 `11,687

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

`10,016 `10,034 `10,068 `10,822 `11,247

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

`10,014 `10,035 `10,064 `10,849 `11,552


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

Statutory Details & Disclaimers

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

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

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

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

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