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)
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
HSBC Banking and PSU Debt Fund
Investors understand that their principal
will be at Moderate Risk
Banking and PSU 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.
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
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Please note that the above risk-o-meter is as per the product labelling of the Scheme available as on the date of this communication/disclosure. As per SEBI circular dated October 5, 2020 on product labelling (as amended from time to time), risk-o-meter will be calculated on a monthly basis based on the risk value of the scheme portfolio based on the methodology specified by SEBI in the above stated circular. The AMC shall disclose the risk-o-meter along with portfolio disclosure for all their schemes on their respective website and on AMFI website within 10 days from the close of each month. 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.
Benchmark: Nifty Banking & PSU Debt Index
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.
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