HSBC Nifty Next 50 Index Fund

Index Fund - An open-ended Equity Scheme tracking Nifty Next 50 Index
(Formerly known as L&T Nifty Next 50 Index)

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Investment objective

The scheme will adopt a passive investment strategy. The scheme will invest in stocks comprising the Nifty Next 50 index in the same proportion as in the index with the objective of achieving returns equivalent to the Total Returns Index of Nifty Next 50 index by minimizing the performance difference between the benchmark index and the scheme. The Total Returns Index is an index that reflects the returns on the index from index gain/ loss plus dividend payments by the constituent stocks. There is no assurance that the investment objective of the scheme will be realized.

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 Nifty Next 50 Index Fund?

• The scheme will adopt a passive investment strategy
• Invests in stocks comprising the Nifty Next 50 index in the same proportion as in the index with the objective of achieving returns equivalent to the Total Returns Index of Nifty Next 50 index by minimizing the performance difference between the benchmark index and the scheme
• The Total Returns Index is an index that reflects the returns on the index from index gain/ loss plus dividend payments by the constituent stocks
• To create a corpus through generating inflation-adjusted returns to cater to long-term goals

Scheme name and Type of scheme HSBC Nifty Next 50 Index Fund (An open-ended Equity Scheme tracking Nifty Next 50 Index) This product is suitable for investors who are seeking*: Long term capital appreciation Investment in equity securities covered by the NIFTY NEXT 50 As per AMFI Tier I. Benchmark Index: NIFTY Next 50 TRI

*Scheme Risk-o-meter   Investors understand that their principal will be at Very High risk

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 Index Based Funds at HSBC Mutual Fund India