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.
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.
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HSBC Liquid Fund (An open-ended Liquid Scheme. Relatively This product is suitable for investors who are seeking*: As per AMFI Tier 1 Benchmark : NIFTY Liquid Index A-I
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 their principal will be at Low to Moderate risk |
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* 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.
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