HSBC Liquid Fund
Liquid Fund - An Open Ended Liquid Scheme. Relatively low interest rate risk and moderate credit risk.
(Formerly known as HSBC Cash Fund. L&T Liquid Fund has merged into HSBC Cash Fund and the surviving scheme has been renamed)
Investment Objective
To provide reasonable returns, commensurate with low risk while providing a high level of liquidity, through a portfolio of money market and debt securities. However, there can be no assurance that the Scheme objective can be realised.
* As per the Regulations, the Fund shall dispatch the redemption proceeds within 10 Business Days from the date of acceptance of redemption request. The Fund will endeavor to dispatch the redemption proceeds in 1 Business Day from the date of receiving a valid redemption request.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 Liquid Fund?
To ensure optimal liquidity and better risk adjusted performance to suit the investor's requirements in various situations, our fund manager follow stringent liquidity, credit risk and interest rate risk norms.
- Liquidity risk - In a stressed liquidity scenario, the fund manager would find it difficult to sell the Commercial Papers (CPs) as they tend to become less liquid during such time. HSBC Liquid Fund aims to maintains optimum allocation to non CPs (which comprises of liquid CDs and cash).
- Credit risk - The portfolio comprises of high credit quality papers. HSBC Mutual Fund follows a thorough credit evaluation process and generally aims to restrict investments to the highest possible short term rating.
- Interest rate risk - HSBC Mutual Fund’s internal investment policy restricts the maximum portfolio weighted average maturity of HSBC Liquid Fund to 60 days. This reduces interest rate risk relative to market from adverse movements in interest rates.
HSBC Cash Fund
(An open-ended Liquid Scheme)
This product is suitable for investors who are seeking*:
- Overnight Liquidity over short term
- Invest in Money Market Instruments
Investors understand that their principal
will be at Low to Moderate Risk
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
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.