HSBC ELSS Tax saver Fund

Formerly known as HSBC ELSS Fund

Equity Linked Savings Scheme - An Open Ended Equity Linked Savings Scheme with a statutory lock - in of 3 years and tax benefit

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Investment Objective

The investment objective of the Scheme is to generate long-term capital growth from a diversified portfolio of predominantly equity and equity-related securities. There is no assurance that the objective of the Scheme will be realised and the Scheme does not assure or guarantee any returns. For defensive considerations and/or managing liquidity, the Scheme may also invest in money market instruments.

Investors are requested to note that, in order to facilitate ease of identification by investors and implement uniform nomenclature across mutual funds, SEBI vide its letter dated September 26, 2023 advised AMCs to modify the nomenclature of the schemes under ‘ELSS’ category to ‘ELSS Tax saver’. Accordingly, the name of HSBC ELSS Fund, an open ended equity linked saving scheme of HSBC Mutual Fund stands modified as HSBC ELSS Tax saver Fund with effect from Wednesday, October 25, 2023 (“Effective Date”).

ELSS funds are subject to the Capital gains which will be charged at 10% if above INR 1 lakh. ^ Dividend is subjected to 10% tax. Past performance may or may not be sustained in the future and is not indicative of future results.

Our philosophy

• Disciplined investment approach with “fundamental research” as the foundation of our investment decision making process
• Focus on companies with an attractive combination of profitability and valuation
• Look to own scalable businesses with strong execution capability, proven management track record and strong financials

Our process

Proprietary research drives stock selection:

• Our equity investment process comprises three stages – Stock selection, Stock analysis and Portfolio construction
• Use a combination of quantitative and qualitative filters to arrive at a list of investable universe of stocks
• Evaluate stock ideas on the basis of three key parameters, namely Quality of Business, ESG and Valuation
• Portfolio construction is an outcome of the above mentioned investment process and tracked against predefined risk matrix

Why HSBC ELSS Tax saver Fund?

• To save taxes under Section 80C of Income Tax Act
• The investment approach is bottom-up stock picking. The Scheme seeks to add the best opportunities that the market presents, without any sector/cap bias
• Bottom-up stock picking: The Scheme focuses on bottom-up stock picking (i.e. focusing solely on prospects of individual stocks) as opposed to a top-down approach (i.e. predicting macro-economic and political trends and taking investment decisions based on them)
• No cap bias: It will seek to identify the best stocks at a point in time, regardless of any market cap bias
• True to label fund – The fund will stay true to its objective in keeping with the mandate reposed by the investor whilst investing in the fund
• To create a corpus through generating inflation-adjusted returns to cater to long-term goals

^^ ELSS funds are subject to the Capital gains which will be charged at 10% if above INR 1 lakh. ^Dividend is subjected to 10% tax. ELSS - An open ended equity linked saving scheme with a statutory lock-in of 3 years and tax benefit

Tax slabs are given for information purpose only it is further to be read with present laws as applicable in respective Financial Year (Assessment year) and read with any notification issued by Income tax authority from time to time. Investors should consult their tax consultant if in doubt about whether the product is suitable for them.

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