HSBC Banking and PSU Debt Fund

An open ended debt scheme predominantly investing in debt instruments of banks, public sector undertakings, public financial institutions and municipal bonds. A relatively high interest rate risk and relatively low credit risk.
(Formerly known as L&T Banking and PSU Debt Fund)

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Investment objective

The investment objective of the Scheme is to generate reasonable returns by primarily investing in debt and money market securities that are issued by Banks, Public Sector Undertakings (PSUs) and Public Financial Institutions (PFIs) in India. There is no assurance that the objective of the Scheme will be realised and the Scheme does not assure or guarantee any returns.

Our philosophy

• We deploy a balanced approach to credit and risk management
• Transparency in investment methodology
• Active investment opportunity supported by proprietary credit research

Our process

Proprietary research drives security selection:

• Balanced approach for security selection to achieve optimal risk adjusted returns
• Balanced approach in managing risk – well managed issuer concentration
• Benefits from global investment network and research sharing platform

Why HSBC Banking and PSU Debt Fund?

• The fund offers prudent portfolio considering the risk appetite whilst seeking optimal returns
• Aims to generate reasonable returns by primarily investing in debt and money market securities that are issued by Banks, Public Sector Undertakings (PSUs) and Public Financial Institutions (PFIs) in India
• The Scheme will typically invest in short to medium term securities and as a result significant proportion of the total returns is likely to be in the form of income yield or accrual
• Selective capital appreciation opportunities could be explored by extending credit and duration exposure after a careful analysis
• 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

Scheme name and Type of scheme HSBC Banking and PSU Debt Fund (An open ended debt scheme primarily investing in debt instruments of banks, public sector undertakings, public financial institutions and municipal bonds. A relatively high interest rate risk and relatively low credit risk.) This product is suitable for investors who are seeking*: Generation of reasonable returns and liquidity over short term Investment predominantly in securities issued by Banks, Public Sector Undertakings and Public Financial Institutions and municipal corporations in India As per AMFI Tier I. Benchmark Index : Nifty Banking & PSU Debt Index A-II

*Scheme Risk-o-meter

Benchmark Risk-o-meter (as applicable)

* Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Note on Risk-o-meters: The risk-o-meter is as per the product labelling of the Scheme available as on the date of this communication/disclosure Any change in risk-o-meter shall be communicated by way of Notice cum Addendum and by way of an e-mail or SMS to unitholders of that particular scheme.

Visit this link and check the latest Riskometer / Product Labels in the “Performance - Equity Hybrid Debt Global Funds” document of the latest month. Past performance may or may not be sustained in the future and is not indicative of future results.

Potential Risk Class (‘PRC’) matrix indicates the maximum interest rate risk (measured by Macaulay Duration of the scheme) and maximum credit risk (measured by Credit Risk Value of the scheme) the fund manager can take in the scheme. PRC matrix classification is done in accordance with and subject to the methodology/guidelines prescribed by SEBI to help investors take informed decision based on the maximum interest rate risk and maximum credit risk the fund manager can take in the scheme, as depicted in the PRC matrix.

Investors are requested to note that as per SEBI (Mutual Funds) Regulations, 1996 and guidelines issued thereunder, HSBC AMC, its employees and/or empaneled distributors/agents are forbidden from guaranteeing/promising/assuring/predicting any returns or future performances of the schemes of HSBC Mutual Fund. Hence please do not rely upon any such statements/commitments. If you come across any such practices, please register a complaint via email at investor.line@mutualfunds.hsbc.co.in.

This document/content is intended only for distribution in Indian jurisdiction. Neither this document nor the units of HSBC Mutual Fund have been registered under Securities law/Regulations in any foreign jurisdiction. The distribution of this document in certain jurisdictions may be unlawful or 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. If any person chooses to access this document from a jurisdiction other than India, then such person do so at his/her own risk and HSBC and its group companies will not be liable for any breach of local law or regulation that such person commits as a result of doing so.

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

Understanding Bond Funds (Debt) at HSBC Mutual Fund India