abridged schemewise annual reports 2012 - 2013...treating customers fairly: at hsbc, we are...

Abridged SchemewiseAnnual Reports 2012 - 2013

► INDEX HSBC Equity Fund 1 HSBC Progressive Themes Fund 23 HSBC Emerging Markets Fund 45 HSBC Brazil Fund 67 HSBC Dynamic Fund 89 HSBC Tax Saver Equity Fund 111 HSBC India Opportunities Fund 133 HSBC Midcap Equity Fund 155 HSBC Unique Opportunities Fund 177 HSBC Small Cap Fund 199 HSBC MIP 221 HSBC Income Fund 251 HSBC Floating Rate Fund 285 HSBC Ultra Short Term Bond Fund 310 HSBC Cash Fund 335 HSBC Gilt Fund 361 HSBC Flexi Debt Fund 383 HSBC Fixed Term Series 409

HSBC Equity Fund

HSBC Equity FundAn Open-ended Diversifi ed Equity Scheme

Abridged Annual Report 2012 - 2013

1

HSBC Equity Fund

Dear Investor,

Greetings from HSBC Global Asset Management, India.

I am delighted to write to you again and as always I want to start by expressing my gratitude to you for the faith you have reposed in the company.

2012-13 was an important year for us where we continued to signifi cantly enhance our capabilities and most importantly we undertook measures that are designed to benefi t investors. I am pleased to share some of these with you:

Treating Customers Fairly: At HSBC, we are committed to treating our customers fairly. It is therefore critical that we do not create any exit costs/barriers for investors. You will be pleased to know that w.e.f. March 1, 2013, HSBC Global Asset Management, India is perhaps the only AMC in India to have demised exit loads from all its mutual fund schemes for prospective investments. It is our belief that investors should stay invested in our schemes due to the benefi ts they see in the services we offer and not due to artifi cial exit barriers.

Portfolio Rebalancing: An area for concern for the industry has been the excessive churn that takes place under the guise of portfolio rebalancing. We believe a strong contributor to this is the upfront commissions that are paid by AMCs. You will be pleased to know that w.e.f. January 1, 2013, HSBC Global Asset Management, India is one of the few AMCs who have agreed to link distributor commissions to the persistency of the assets. We believe this will promote the right behaviour across all stakeholders.

Offshore Advisory Services: In an increasingly interconnected world, it is critical that investment management functions in a country are able to draw on the experiences/developments in other markets. I am very pleased to advise that HSBC Global Asset Management, India has been identifi ed as a centre of excellence for India Fixed Income. This implies that the investment management team in India will now advise all the India related fi xed income strategies managed by HSBC Global Asset Management globally. This is tremendous vote of confi dence for the team in India. I hope to be in a position to make a similar announcement for India Equities in the near future.

Market Outlook:

It is fair to say that markets are inherently unpredictable. The recent currency movement and the upcoming general elections will lead to further volatility in both the equity and fi xed income asset classes.

That said, India remains a robust story in the long term based on encouraging demographics, higher purchasing power and discretionary income.

Equity: As proven historically, equities tend to outperform other asset classes and provide returns that beat infl ation. Fundamentally the India growth story remains strong and we expect equities to deliver signifi cant returns over the longer term, though there could be volatility in the near to medium term.

Fixed Income: The recent volatility in the debt markets is a consequence of the measures taken by the RBI to address currency volatility. We expect this to return to normalcy soon, however, with intermittent volatility. We expect the easing environment to continue thereafter which may pave the way for larger movement in interest rates over the medium term. Depending on your risk appetite, you could consider incorporating bond funds in your portfolio.

2

HSBC Equity Fund

Our view is that investors should make allocations in keeping with their ability to take risks.

To conclude, if your risk appetite is high, you could consider investing in equity funds with a 3-5 year time horizon. If your risk appetite is moderate, you may wish to allocate assets across equity and debt products or even consider hybrid products like Monthly Income Plans. If you are a conservative investor, you may prefer accrual products like short term debt funds and liquid funds.

We very much hope that we can play a role in assisting you with your investment needs over the near as well as the longer term.

In closing please accept, once again, my sincere thanks for choosing us as your provider. And I look forward to a long and mutually benefi cial relationship.

Yours sincerely,

Puneet Chaddha

Chief Executive Offi cer

HSBC Asset Management (India) Private Limited

3

HSBC Equity Fund

SPONSORHSBC Securities and Capital Markets (India) Private LimitedRegd. Offi ce: 52/60, Mahatma Gandhi Road, Fort, Mumbai - 400 001.

TRUSTEEBoard of TrusteesOffi ce: 16, Veer Nariman Road, Fort, Mumbai - 400 001.

ASSET MANAGEMENT COMPANYHSBC Asset Management (India) Private LimitedCorp. & Regd. Offi ce: 16, Veer Nariman Road, Fort, Mumbai - 400 001.

CUSTODIANStandard Chartered Bank (SCB)Corp. & Regd. Offi ce: Crescenzo, Securities Services, 3rd Floor, C - 38/39, G - Block,Bandra Kurla Complex, Bandra East, Mumbai - 400051.

Effective from May 11, 2013

AUDITORS TO THE SCHEMEPrice WaterhouseChartered Accountants252, Veer Savarkar Marg, Shivaji Park, Dadar (West), Mumbai - 400 028.

LEGAL ADVISORSBharucha & PartnersBharucha & Partners, Hague Building, Sprott Road, Ballard Estate, Mumbai - 400 001.

REGISTRAR & TRANSFER AGENTSComputer Age Management Services (P) Ltd. (CAMS)No.4. Nehru Nagar West, Kalapatti Main Road, Civil Aerodrome Post, Coimbatore - 641 014.

BOARD OF TRUSTEESMr. N. P. Gidwani - Chairman

Mr. Nasser MunjeeMr. Manu TandonMr. Mehli MistriMr. Dilip J. ThakkarMr. Glenn Berry

BOARD OF DIRECTORS*Ms. Naina Lal Kidwai - Chairperson

Mr. S. P. MustafaMs. Kishori J. UdeshiMr. Puneet Chaddha - Chief Executive Offi cer

* Mr. Ashok Jha and Mr. Gannesh Bharadhwaj resigned as a Director from the Board of HSBC Asset Management (India) Private Limited with effect from February 8, 2013 and May 28, 2013, respectively..

4

HSBC Equity Fund

Trustees’ ReportFor the year ended March 31, 2013

The Trustees present the eleventh report and the audited abridged fi nancial statements of the Schemes of HSBC Mutual Fund (the “Fund”), for the year ended March 31, 2013.

1. SCHEME PERFORMANCE, FUTURE OUTLOOK AND OPERATIONS OF THE SCHEMES

a) Operations and Performance of the Schemes

HSBC Equity Fund (HEF) - an open-ended diversifi ed Equity Scheme

HEF seeks to generate long-term capital growth from an actively managed portfolio of equity and equity related securities.

The net assets of HEF amounted to Rs. 537.31 crores as at March 31, 2013 as against Rs. 684.20 crores as at March 31, 2012. Around 99.21% of the net assets were invested in equities, 1.48% of the net assets were invested in reverse repos/CBLO and (- 0.69%) was in the net current assets as at March 31, 2013.

HEF remained invested in a diversifi ed portfolio across large capitalization stocks on the exchange. The relative underweight in healthcare was the cause of the underperformance against its benchmark during the period 2012-13.

Date of Inception : 10 December, 2002 Absolute (%) Compounded Annualized (%)

Scheme Name & Benchmarks April ‘12 - March ‘13

April ‘11 - March ‘12


Since Inception

HSBC Equity Fund – Growth 4.20 -8.90 9.67 24.76

CNX Nifty Index (Standard Benchmark) 6.93 -9.13 10.27 17.41

S&P BSE 200 (Scheme Benchmark) 5.41 -9.55 7.27 18.68

Rs. 10,000, if invested in HEF - Growth, would have become

10,420 9,110 10,967 98,173

Rs. 10,000, if invested in CNX Nifty Index, would have become

10,693 9087 11,027 52,409

Rs. 10,000, if invested in S&P BSE 200, would have become

10,541 9045 10,727 58,573

Returns data as on March 31, 2013. Past performance may or may not be sustained in future. ‘Since Inception’ returns are calculated on Rs. 10 invested at inception. Calculations are based on Growth NAVs.

b) Market Overview & Outlook

EQUITY OUTLOOK

The Sensex returned 8.23% for the FY ended March 2013. While this looks to be a tepid return, the market rallied smoothly for a low of 15965 in June to end at 18835 at the FY end, a return of 17.98%. This was largely due to a series of announcements on reforms by the government and falling crude oil prices, signaling hopes of an economic recovery.

Returns (April 1, 2012 - March 31, 2013) 1 Year (%)

NIFTY 7.31

Sensex 8.23

S&P BSE 100 6.84

S&P BSE 200 6.03

S&P BSE 500 4.81

CNX Midcap -4.02

Source: Bloomberg

5

HSBC Equity Fund

Trustees’ ReportFor the year ended March 31, 2013 (Contd...)

Our view in respect of key issues facing equity market currently is highlighted as under, based on which we do expect a likely reversal of the prevailing negative sentiment going forward -

� Macro challenge - expect some relief in current account defi cit given likely lower gold imports and crude oil correction. Solution to fi scal defi cit may however need policy decision to reduce subsidy burden on diesel, kerosene, LPG.

� Commodities infl ation expected to decline on account of China slowdown and lower growth in western world. This may have positive impact margin expansion for corporate sector and on currency (INR) and will give room for reducing interest rates over time. Lower cost of capital should hopefully revive capex spending, though gradually (recovery from 2H12).

� Lower interest rates directionally would be the single most important variable for equity markets to rally. This will be driven by lower commodity infl ation and focus back on reviving growth through monetary policy (recent disappointing GDP/IIP numbers support this view).

� Valuations (for large Sensex companies) are attractive at close to 13x forward earnings and in the lower range of historic multiples. A large number of mid-caps available at a signifi cant discount to large cap peer.

� Structural model for India equity investment remains intact for long term returns. These include favourable demography, high savings rate, rising incomes, growing consumption demand growth, existing low penetration, etc.

DEBT OUTLOOK

Fixed Income market in FY 2013 moved towards lower yields on back of 100 bps rate cut and CRR cuts. RBI front loaded the rate cut in April and then followed it up in January 2013 and March 2013. Towards the second half rates stabilized largely as the core infl ation remained within comfort zone.

In the second half of the year expectation of rate cut and series of open market operations led to rally in rates. Government borrowing was lower than budgeted and the spending was also controlled in second half of the year. Towards the end of the year short end rates tightened substantially due to low deposit growth in banking system.

Corporate yield curve remained inverted with short end rates higher than long end rates for the large part of the year due to liquidity tightness.

Expectation is to see continuation of some easing of the rates stance from RBI in FY 14. However, there is a need to focus on key variables in the economy to judge future directions. These are:

� Liquidity: Liquidity will drive short end rates and eventually drive decisions on open market operations as well as CRR cuts.

� Infl ation: Infl ation numbers will determine future course of action for RBI and remains a critical variable for policy. We expect infl ation to ease in fi rst half of FY 14.

� Growth: GDP growth numbers as well as industrial activity will also determine the decision on policy. Weak GDP numbers may continue for couple of quarters.

� Fiscal defi cit: Fiscal defi cit and government spending will determine the government borrowing and crowding out in interest rate curve.

� Current account defi cit / BoP situation: CAD determines how the pressure on currency works and effective management of forex reserves

� Currency levels: Level of INR will determine how the central banker reacts to the situation on the global crisis etc.

6

HSBC Equity Fund


2. BRIEF BACKGROUND OF SPONSORS, BOARD OF TRUSTEES AND ASSET MANAGEMENT COMPANY

a) Sponsor HSBC Mutual Fund is sponsored by HSBC Securities and Capital Markets (India) Private Limited (HSCI).

The Sponsor is the Settler of the Mutual Fund Trust. The Sponsor has entrusted a sum of Rs.1,00,000 (Rupees One Lakh only) to the Trustee as the initial contribution towards the corpus of the Mutual Fund.

HSCI offers integrated investment banking services, securities and corporate fi nance & advisory. HSCI is a member of The Bombay Stock Exchange Limited and National Stock Exchange (capital and derivative market segments). HSCI holds 100% of the paid up equity share capital of HSBC Asset Management (India) Private Limited.

b) HSBC Mutual Fund HSBC Mutual Fund (“the Mutual Fund” or “the Fund”) has been constituted as a Trust in accordance with

the provisions of the Indian Trusts Act, 1882 (2 of 1882) vide a Trust Deed dated February 7, 2002 with HSBC Securities and Capital Markets (India) Private Limited, as the Sponsor and the Board of Individual Trustees. The Trustee has entered into an Investment Management Agreement dated February 7, 2002 with HSBC Asset Management (India) Private Limited (AMC) to function as the Investment Manager for all the Schemes of the Fund. The Fund was registered with SEBI vide registration number MF/046/02/5 dated May 27, 2002.

The Trust has been formed for the purpose of pooling of capital from the public for collective investment in securities/any other property for the purpose of providing facilities for participation by persons as benefi ciaries in such properties/investments and in the profi ts/income arising therefrom.

c) Board of Trustees (the Trustees) The Board of Trustees is the exclusive owner of the Trust Fund and holds the same in trust for the benefi t

of the unit holders. The Trustees have been discharging their duties and carrying out the responsibilities as provided in the SEBI (Mutual Funds) Regulations, 1996 and the Trust Deed. The Trustees seek to ensure that the Fund and the Schemes fl oated there under are managed by the AMC in accordance with the Trust Deed, the said Regulations, directions and guidelines issued by the SEBI, the Stock Exchanges, the Association of Mutual Funds in India and other regulatory agencies.

d) Asset Management Company (the AMC) HSBC Asset Management (India) Private Limited (the Investment Manager or the AMC) is a private limited

company incorporated under the Companies Act, 1956 on December 12, 2001 having its Registered Offi ce at 16, V. N. Road, Fort, Mumbai 400 001. HSBC Asset Management (India) Private Limited has been appointed as the Asset Management Company of the HSBC Mutual Fund by the Trustee vide Investment Management Agreement (IMA) dated February 7, 2002 and executed between the Trustees and the AMC. SEBI approved the AMC to act as the Investment Manager of the Fund vide its letter No. MFD/BC/163/2002 dated May 27, 2002. The paid-up equity share capital of the AMC is Rs. 54.2 crores. HSBC Securities and Capital Markets (India) Private Limited holds 100% of the paid up equity share capital of the AMC.

3. INVESTMENT OBJECTIVE OF THE SCHEMESThe investment objective of the respective Schemes has been provided above under the heading “Scheme Performance, Future Outlook and Operation of the Scheme” (Refer Section 1).

4. SIGNIFICANT ACCOUNTING POLICIESThe accounting policies are in accordance with Securities Exchange Board of India (Mutual Funds) Regulations 1996.

7

HSBC Equity Fund


5. UNCLAIMED DIVIDENDS & REDEMPTIONSSummary of number of Investors & corresponding amount Scheme-wise as on March 31, 2013

SchemeUnclaimed Dividends Unclaimed Redemptions

Amount (Rs.)

No. of Investors

Amount (Rs.)

No. of Investors

HSBC Equity Fund 4,225,053.45 986 6,707,513.98 198

6. INVESTOR SERVICESThe number of offi cial points of acceptance of transactions is 197 locations. In addition to the offi ces of the Registrar & Transfer agents, the AMC has Investor Service Centres in 4 locations at its own offi ces - namely Mumbai, New Delhi, Kolkata and Chennai. With a view to enhance customer convenience, the AMC has extended the facility of priority based servicing to key distributors through the enhancement of the Interactive Voice Reponses. Call Centre number has now been converted to a single Toll Free number which can be dialed from anywhere in India. The call Centre service is being managed by the Registrar and Transfer Agents. The AMC continues to retain the outsourced back offi ce services with HOPE.

On the distribution front, the number of empanelled distributors was 2471 as on 31 March 2013. During the year, the AMC initiated tie-ups for online distribution of the Mutual Fund’s Schemes with several channel partners taking the total number of such tie-ups to 45.

7. DETAILS OF INVESTOR GRIEVANCE REDRESSALThe details of the redressal of investor complaints received against HSBC Mutual Fund during April 2012- March 2013 are as follows:

Total Number of Folios: 261694

Com-plaintCode

Type of complaint#

(a) No. ofcomplaintspendingat the

beginningof theyear

(b) No. of com-plaints

receivedduring

theyear#

Action on (a) and (b)

Resolved Non Actiona-

ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months

I A Non receipt of Dividend on Units

0 3 3 0 0 0 0 0 0 0 0

I B Interest on delayed payment of Dividend

0 0 0 0 0 0 0 0 0 0 0

I C Non receipt of Redemption Proceeds

2 40 22 18 2 0 0 0 0 0 0

I D Interest on delayed payment of Redemption

0 2 1 1 0 0 0 0 0 0 0

II A Non receipt of Statement of Account/Unit Certifi cate

0 9 9 0 0 0 0 0 0 0 0

II B Discrepancy in Statement of Account

0 6 5 0 0 0 0 1 0 0 0

II C Data corrections in Investor details

0 277 277 0 0 0 0 0 0 0 0

II D Non receipt of Annual Report/Abridged Summary

0 0 0 0 0 0 0 0 0 0 0

8

HSBC Equity Fund


Com-plaintCode

Type of complaint#


beginningof theyear


receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months

III A Wrong switch between Schemes

0 0 0 0 0 0 0 0 0 0 0

III B Unauthorized switch between Schemes

0 0 0 0 0 0 0 0 0 0 0

III C Deviation from Scheme attributes

0 0 0 0 0 0 0 0 0 0 0

III D Wrong or excess charges/load

0 0 0 0 0 0 0 0 0 0 0

III E Non updation of changes viz. address, PAN, bank details, nomination, etc

0 18 18 0 0 0 0 0 0 0 0

IV Others 0 14 12 1 1 0 0 0 0 0 0

Total 2 369 347 20 3 0 0 1 0 0 0

Note:

# including against its authorized persons / distributors / employees etc.

8. STATUTORY DETAILSa) The Sponsors are not responsible or liable for any loss resulting from the operation of the Schemes of

the Fund beyond initial contribution of Rs. 1 lakh for setting up the Fund.

b) The price and redemption value of the units, and income from them, can go up as well as down with fl uctuations in the market value of its underlying investments.

c) Full Annual Report shall be disclosed on the website at www.assetmanagement.hsbc.com/in and shall be available for inspection at the Head Offi ce of the mutual fund. Present and prospective unit holder can obtain copy of the trust deed, the full Annual Report of the Scheme(s), the Annual Report of HSBC Asset Management (India) Private Limited and the text of the relevant Scheme(s) at a price.

9. ACKNOWLEDGEMENTSThe Trustees wish to thank the Unit holders of the Schemes for their support throughout the year and also thank the Government of India, the Securities and Exchange Board of India (SEBI), the Reserve Bank of India (RBI) and the Association of Mutual Funds in India (AMFI) for the guidance provided by them. The Trustees also appreciate the service provided by the Registrar and Transfer Agent, Fund Accountant, Custodian, Bankers, Distributors and Brokers. The guidance and services provided by the Auditors and advocates and the ebullience, sincerity and dedication of the employees of HSBC Asset Management (India) Private Limited is also appreciated.

The Trustees look forward to the continued support of everyone.

For and on behalf of the Board of Trustees of HSBC Mutual Fund

Sd/-

Dilip J. Thakkar

Trustee

MUMBAIJuly 16, 2013

9

HSBC Equity Fund

To the Board of Trustees of

HSBC Mutual Fund

Report on the Financial Statements1. We have audited the accompanying fi nancial statements of HSBC Mutual Fund - HSBC Equity Fund, (the

“Scheme”), which comprise the Balance Sheet as at March 31, 2013, and the related Revenue Account and Cash Flow Statement for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.

Trustee’s and Management’s Responsibility for the Financial Statements2. The Board of Trustees of HSBC Mutual Fund (the “Trustee”) and the Management of HSBC Asset

Management (India) Private Limited (the “Management”) are responsible for the preparation of these fi nancial statements that give a true and fair view of the fi nancial position, fi nancial performance and cash fl ows of the Scheme in accordance with the accounting policies and standards specifi ed in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto (the “Regulations”). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the fi nancial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility3. Our responsibility is to express an opinion on these fi nancial statements based on our audit. We conducted

our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the fi nancial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence, about the amounts and disclosures in the fi nancial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the fi nancial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the preparation and fair presentation of the fi nancial statements in order to design audit procedures that are appropriate in the circumstances. Our procedures included confi rmation of securities owned and unit capital balances as at March 31, 2013 by correspondence with the custodian/others and registrar and transfer agent, respectively. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Trustee and the Management, as well as evaluating the overall presentation of the fi nancial statements.

5. We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our audit opinion.

Opinion6. In our opinion, and to the best of our information and according to the explanations given to us, the

accompanying fi nancial statements give the information required by the Regulations in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) in the case of the Balance Sheet, of the state of affairs of the Scheme as at March 31, 2013;

(b) in the case of the Revenue Account, of the net surplus for the year ended on that date; and

(c) in the case of the Cash Flow Statement, of the cash fl ows for the year ended on that date.

Report on Other Legal and Regulatory Requirement7. As required by section 55(4) of the Regulations, we report that:

(a) We have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit; and

Independent Auditors’ Report

10

HSBC Equity Fund

Independent Auditors’ Report (Contd...)

(b) In our opinion, the Balance Sheet, Revenue Account and Cash Flow Statement dealt with by this report have been prepared in accordance with the accounting policies and standards specifi ed in the Ninth Schedule of the Regulations.

8. As required by clause 5 (ii)(2) of the Eleventh Schedule to the Regulations, we report that the Balance Sheet, Revenue Account, and Cash Flow Statement dealt with by this Report are in agreement with the books of account of the Scheme.

For PRICE WATERHOUSEFirm Registration Number: 301112EChartered Accountants

Sd/-

Vivek PrasadPartnerMembership Number: 104941

Place : MumbaiDate : July 16, 2013

11

HSBC Equity Fund

Rs. in Lakhs

HSBC EQUITY FUNDAs at

March 31, 2013As at

March 31, 2012

LIABILITIES1 Unit Capital 13,256.09 17,405.162 Reserves & Surplus2.1 Unit Premium Reserves (17,803.76) (18,537.64)2.2 Unrealised Appreciation Reserve 9,521.79 12,633.382.3 Other Reserves 48,757.80 56,919.343 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 557.17 694.41

TOTAL 54,289.10 69,114.65

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares 53,308.92 66,277.161.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – –1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –

Total Investments 53,308.92 66,277.16

2 Deposits 1.00 –3 Other Current Assets3.1 Cash & Bank Balance 37.64 25.473.2 CBLO / Reverse Repo Lending 795.75 1,934.223.3 Others 145.79 877.804 Deferred Revenue Expenditure – –

(to the extent not written off)

TOTAL 54,289.10 69,114.65

Notes to Accounts - Annexure I

Abridged Balance Sheet as at March 31, 2013

12

HSBC Equity Fund

Abridged Revenue Account for the year ended March 31, 2013

Rs. in Lakhs

HSBC EQUITY FUNDCurrent

Year ended March 31, 2013

Previous Year ended

March 31, 2012

1 INCOME1.1 Dividend 1,026.19 1,095.541.2 Interest 68.71 407.261.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of

investments6,533.88 5,654.95

1.6 Realised Gains / (Losses) on Derivative Transactions – (424.29)1.7 Other Income 29.84 0.66

(A) 7,658.62 6,734.12

2 EXPENSES2.1 Management fees 727.96 808.362.2 Service tax on Management fees 89.98 83.322.3 Transfer agents fees and expenses 96.30 136.262.4 Custodian fees 25.59 35.772.5 Trusteeship fees 0.18 1.242.6 Commission to Agents * – –2.7 Marketing & Distribution expenses 472.31 538.902.8 Audit fees 7.61 7.402.9 Investor Education Expenses 6.05 –2.10 Other operating expenses 38.81 58.822.11 Less: Expenses to be Reimbursed by the Investment Manager – –

(B) 1,464.79 1,670.07

3 NET REALISED GAINS / (LOSSES) FORTHE YEAR (A - B = C) 6,193.83 5,064.05

4 Change in Unrealised Depreciation in value ofinvestments and derivatives (D) – –

5 NET GAINS / (LOSSES) FOR THE YEAR [E = (C - D)] 6,193.83 5,064.05

6 Change in Unrealised appreciation in the value ofinvestments and derivatives (F) (3,111.58) (13,354.86)

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 3,082.25 (8,290.81)7.1 Add: Balance transfer from Unrealised Appreciation Reserve 3,111.58 13,354.867.2 Less: Balance transfer to Unrealised Appreciation Reserve – –7.3 Add / (Less): Equalisation (11,814.42) (14,749.71)

7.4 Transfer from Reserve Fund 56,919.34 66,605.00

8 TOTAL 51,298.75 56,919.34

9 Dividend appropriation9.1 Income Distributed during the year 2,540.95 –9.2 Tax on income distributed during the year – –

10 Retained Surplus / (Defi cit) carried forward toBalance sheet 48,757.80 56,919.34


* Commission to Agents is included in Marketing & Distribution expenses

13

HSBC Equity Fund

Key Statistics for the year ended March 31, 2013

HSBC EQUITY FUND Current


Previous Year ended

March 31, 2012

1. NAV per unit (Rs.):Open

Regular Plan Growth Option 95.8173 105.2711Regular Plan Dividend Option 24.1020 26.4794Direct Plan - Growth Option N.A. N.A.Direct Plan - Dividend Option N.A. N.A.

HighRegular Plan Growth Option 109.5778 107.0636 Regular Plan Dividend Option 27.5632 26.9303 Direct Plan - Growth Option 109.6683 N.A. Direct Plan - Dividend Option 27.5837 N.A.

LowRegular Plan Growth Option 87.1089 84.5929 Regular Plan Dividend Option 21.9114 21.2784 Direct Plan - Growth Option 99.5302 N.A. Direct Plan - Dividend Option 22.6498 N.A.

End5

Regular Plan Growth Option 100.1318 95.8173Regular Plan Dividend Option 22.7836 24.1020Direct Plan - Growth Option 100.4499 N.A.Direct Plan - Dividend Option 22.8591 N.A.

2. Closing Assets Under Management (Rs. in Lakhs)End 53,732 68,420Average (AAuM)1 62,169 78,337

3. Gross income as % of AAuM2 12.32% 8.60%

4. Expense Ratio:a. Total Expense as % of AAuM (planwise)

Regular Plan Growth Option 2.36% 2.13%Regular Plan Dividend Option 2.36% 2.13%Direct Plan - Growth Option 1.38% N.A.Direct Plan - Dividend Option 1.38% N.A.

b. Management Fee as % of AAuM (planwise)Regular Plan Growth Option 1.17% 1.03%Regular Plan Dividend Option 1.17% 1.03%Direct Plan - Growth Option 1.17% N.A.Direct Plan - Dividend Option 1.17% N.A.

5. Net Income as a percentage of AAuM3 9.96% 6.46%

6. Portfolio turnover ratio4 0.08 0.57

7. Total Dividend per unit distributed during the year (planwise) Retail

Regular Plan Dividend Option 2.50 –Direct Plan - Dividend Option 2.50 N.A.

CorporateRegular Plan Dividend Option 2.50 –Direct Plan - Dividend Option 2.50 N.A.

14

HSBC Equity Fund

HSBC EQUITY FUND Current


Previous Year ended

March 31, 2012

8. Returns (%): a. Last One Year Scheme

Regular Plan Growth Option 5.0066 (8.4400)Regular Plan Dividend Option 5.0070 (8.4400)Direct Plan - Growth Option N.A. N.A.Direct Plan - Dividend Option N.A. N.A.

BenchmarkS&P BSE200 8.2600 (8.7974)

b. Since Inception Scheme

Regular Plan Growth Option 25.0890 27.4800Regular Plan Dividend Option 25.1259 27.5200Direct Plan - Growth Option (5.7500) N.A.Direct Plan - Dividend Option (6.7500) N.A.

BenchmarkS&P BSE200 18.8800 20.3402

1 AAuM = Average daily net assets2 Gross income = amount against (A) in the Revenue Account i.e. Income3 Net income = amount against (C) in the Revenue Account i.e. Net Realised Gains / (Losses) for the year4 Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year5 The net asset value disclosed represents the computed NAV on March 31, 2013 (Non-business Day), and

not the last declared NAV.

Key Statistics for the year ended March 31, 2013 (Contd...)

15

HSBC Equity Fund

Notes to Accounts - Annexure ITo the Abridged Balance Sheet and Revenue Account for the Year ended March 31, 2013

HSBC EQUITY FUND

1 Investments:

1.1 It is confi rmed that investments of the Schemes are registered in the name of the Trustees for the benefi t of the Scheme’s unitholders.

1.2 Open Positions of derivatives as of years ended March 31, 2013 and March 31, 2012 are NIL

1.3 Investments in Associates and Group Companies:

(Rupees)

Issuer Instrument Type

Amount Aggregate Investments

by all schemes


by all schemes

2013 2012

The Hongkong and Shanghai Banking Corporation Limited

Fixed deposits

– – – 32,000,000

1.4 Open positions of Securities Borrowed and / or Lent by the scheme as of the year ended March 31, 2013 and March 31, 2012 are NIL.

1.5 NPAs as at years ended March 31, 2013 and March 31, 2012 are NIL.

1.6 Aggregate Unrealised Gain / Loss as at the end of the fi nancial years March 31, 2013 and March 31, 2012 and percentage to net assets are as under :

Company Name Amount (Rs.) Percentage to Net Assets

Amount (Rs.) Percentage to Net Assets

2013 2012

Equity Shares

– Appreciation 1,243,676,670 23.1459% 1,438,679,189 21.0271%

– Depreciation 291,496,330 5.4250% 175,340,409 2.5627%

1.7 The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2012-13 (excluding accretion of discount) is Rs. 485,389,142 and Rs. 2,124,443,280 respectively being 7.81% and 34.17% of the average daily net assets.

The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2011-12 (excluding accretion of discount) is Rs. 1,801,840,071 and Rs. 3,175,461,858 respectively being 23.00% and 40.54% of the average daily net assets.

1.8 Non-Traded securities in the portfolio of the Scheme as of the years ended March 31, 2013 and March 31, 2012 are NIL

2 Disclosure under Regulation 25(8) of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 as amended

During the year 2012-2013, The Hongkong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid collection/bank charges amounting to Rs. 14, 400 and clearing member charges on derivative transactions amounting to Rs. Nil.

During the year 2011-2012, The Hongkong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid collection/bank charges amounting to Rs. 32,068 and clearing member charges on derivative transactions amounting to Rs. 568,140.

16

HSBC Equity Fund

Commission paid to Sponsor/AMC and its associates/related parties/group companies

Name of Sponsor/AMC and its associates/related parties/group companies

Nature of Association / Nature of

Relation

Period Covered

Business Given [Rs. in Crores]

% of Total Business

received by the Fund

Commission paid [Rs.]

% of Total commission paid by the

Fund


Associate 2012-2013 12.08 9.92 5,761,578 14.25

HSBC InvestDirect Securities (India) Limited

Associate 2012-2013 0.11 0.09 89,870 0.22



Relation

Period Covered


% of Total Business




Fund


Associate 2011-2012 9.81 9.67 8,529,346 15.56


Associate 2011-2012 0.11 0.11 161,765 0.30

Brokerage paid to Sponsor/AMC and its associates/related parties/group companies


Nature of Association /Nature of

relation

Period Covered

Value of Transactions

[Rs. in Crores]

% of total value of

transactions of the fund

Brokerage paid [Rs.]

% of total brokerage

paid by the fund

HSBC Securities and Capital Market (India) Private Limited

Sponsor 2012-2013 14.65 0.67 239,600.00 6.70



relation

Period Covered


[Rs. in Crores]

% of total value of



% of total brokerage paid by the

fund


Sponsor 2011-2012 91.41 8.38 570,635 4.81

The brokerage paid was at rates similar to those offered to other brokers / distributors

Further, The Hongkong and Shanghai Banking Corporation Limited, an associate of the Sponsor, is on the panel of bankers with whom HSBC Mutual Fund places money on fi xed deposits and enters into reverse repo transactions from time to time at competitive rates.

Notes to Accounts - Annexure I (Contd...)To the Abridged Balance Sheet and Revenue Account for the year ended March 31, 2013

17

HSBC Equity Fund

3 None of the Investors held more than 25% of the total net assets of the Scheme at the years ended March 31, 2013 and March 31, 2012.

4 Unit Capital movement during the years ended March 31, 2013 and March 31, 2012:

Description 2012-2013

Opening Units Subscription Redemption Closing Units Face Value per Unit (Rs.)

Regular Plan Growth Option

36,910,347.173 8,665,639.949 15,226,344.994 30,349,642.128 10

Regular Plan Dividend Option

137,141,222.324 7,763,992.960 42,958,474.242 101,946,741.042 10

Direct Plan - Growth Option

– 70,796.605 330.554 70,466.051 10

Direct Plan - Dividend Option

– 194,180.482 110.426 194,070.056 10

Description 2011-2012



45,560,628.334 5,381,663.679 14,031,944.840 36,910,347.173 10

Regular PlanDividend Option

183,946,955.561 12,365,042.150 59,170,775.387 137,141,222.324 10

5 Previous year fi gures have been re-grouped/re-arranged where necessary.

6 No contingent liabilities for the years ended March 31, 2013 and March 31, 2012.

7 Expenses other than Management Fees are Inclusive of Service Tax where applicable.

8 Other income of Rs. 2,983,825 (2012: Rs. 65,609) represents Exit load (net of service tax) credited to the Scheme and Provision for expenses written back since no longer required.

9 Pursuant to SEBI circular no. CIR/IMD/DF/21/2012 dated September 13, 2012, HSBC Mutual Fund has introduced separate plan for direct investments (i.e. investments routed without intermediary) with effect from January 1, 2013. These plans are introduced in all existing schemes of the Fund except the Schemes/Plans discontinued for further subscriptions. From January 01, 2013, applicable NAV (including equalization reserve per unit and unit premium reserve per unit) used for allotment of units on the fi rst transaction in the direct plans were of corresponding option under the existing plan as on December 31, 2012 for HSBC Cash Fund and as on January 01, 2013 for other schemes. Thereafter, separate NAVs are calculated and published for direct plans.

10 The Annual Accounts of the Schemes prepared in accordance with the accounting policies and standards specifi ed in the Ninth Schedule of The Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 has been approved by the Board of Directors of HSBC Asset Management (India) Private Limited and The Board of Trustees of HSBC Mutual Fund at their meetings held on July 12, 2013 and July 16, 2013 respectively. The audit report attached herewith refers to the said Annual Accounts. The aforesaid abridged accounts are an extract of the Annual Accounts and are prepared in accordance with SEBI Circular No. IMD/Cir8/132968/2008 dated July 24, 2008.


18

HSBC Equity Fund

INTRODUCTIONThe purpose of this document is to state the voting policy and procedures of HSBC Asset Management (India) Private Limited (“AMIN”), in connection with various company proposals on behalf of all the schemes of HSBC Mutual Fund (“the Fund”).

The power to vote on proposals presented to shareholders through the proxy solicitation process is considered by AMIN to be important, recognizing that certain material proposals, if implemented, may have a substantial impact on the market valuation of portfolio stocks. Further, we believe that high standards of corporate governance help companies to deliver sustainable returns to the shareholders.

PROXY VOTING POLICIESA. Corporate governance matters including changes in the state of incorporation, merger and

other corporate restructuring and anti takeover provisions For all such material proposals, a careful review is undertaken by AMIN’s Investment team wherein the

fund manager may be of the opinion that the proposal is not likely to enhance the economic value or cause indeterminate and unnecessary expense to shareholders. Based on the review, AMIN exercises a vote either in favour or against the management’s recommendation.

B. Changes to the capital structure, including preferred stock issuances Such proposals relate to the approval of change in the capital structure of the company i.e. approval of

increase or decrease in the authorized share capital of the company. Shareholders are the principal providers of the capital which companies need to grow and fl ourish. Companies should focus on the interests of existing shareholders as they contemplate changes to their capital structure. Existing shareholders should have a pre-emptive right to participate in signifi cant capital increases. AMIN will generally support the proposals where it believes that such proposal will enhance the rights of the common shareholders or will oppose such proposals where it believes that such proposal will adversely affect the rights of the common shareholders.

C. Stock option plans and other management compensation plans Proposals relating to the stock option plans, performance share plans or other compensation plans are

evaluated on case by case basis but AMIN generally votes against such proposals if the plan provides unreasonable or excessive compensation or the management of the company can materially alter the plan without shareholders’ approval.

D. Social and corporate responsibility issues In case of proposals addressing social and corporate responsibility issues or other similar issues, AMIN

will generally vote in a manner which is most likely to protect and promote the economic value of the underlying securities held under the schemes of the fund. Such issues are evaluated on case by case basis.

E. Board of Directors AMIN generally supports the management’s recommendation with respect to appointment of directors

of the company that strengthens the independence of the board of directors. The Board should provide clear leadership and oversight of companies. AMIN favours the separation of the roles of Chairman and Chief Executive and believes that the company complies with the requirements of Clause 49 of the Listing Agreement on corporate governance with respect to composition of Board. Discharge of directors is considered as a routine matter unless there are signifi cant concerns about the conduct of an individual director or the protection of shareholder interests. Boards should establish committees to consider remuneration and audit issues.

F. Other matters i) Confl ict of interest including investments in Group companies In the event, a proposal giving rise to a material confl ict of interest such as investments in group

companies of AMIN or matters pertaining to the investments in the companies that have subscribed to the schemes of HSBC Mutual Fund or any other similar matters, the fund manager will consult AMIN Chief Executive Offi cer (“CEO”) and Local Compliance Offi cer (“LCO”) and, if deemed necessary by the AMIN CEO or LCO, an advise of the Chairman of the Board of Trustees will be obtained with respect to voting.

Voting Policy and Procedures

19

HSBC Equity Fund

ii) Board remuneration Executive remuneration should be determined by a remuneration committee comprising a majority

of non-executive directors, the Chairman of committee being an independent director. Remuneration should be set at the level required to reward and motivate company management. Companies should avoid excessive payments to departing directors.

iii) Shareholders Rights Shareholders need suffi cient information to exercise their votes. This should be provided in a timely

manner. AMIN may vote against resolutions where insuffi cient information has been provided to allow an informed vote. Resolutions for shareholder approval should not ‘bundle’ together separate matters.

iv) Audit and accounts AMIN will generally support the re-election of external or statutory auditors unless there are concerns

about their independence or commitment to protecting shareholder interests. Approval of the annual accounts is normally a routine matter, unless concerns have been raised about the accounts presented. It is sometimes an opportunity to express broader concerns about the company’s governance or information available to shareholders.

v) Voting in banking stocks AMIN will not exercise voting rights in the stocks of the banking companies in India in accordance

with the RBI approval letter dated May 23, 2008. However, in case of any changes / amendments to the RBI regulations applicable for foreign banks, the voting policy shall be reviewed and notifi ed to the Board of Directors and Board of Trustees.

vi) Non-contentious matters AMIN generally supports the management’s recommendation for general non-contentious matters

such as resolutions relating to the administrative arrangements of a company unless these would be detrimental to the rights of minority shareholders.

DECISION MAKING PROCESSAMIN will generally exercise a vote in accordance with the fund manager’s or sector analyst’s recommendations. The recommendation will be based on the principles set out in the voting policy as above. However, based on the evaluation of certain proposals and on the relevant circumstances, a member of the AMIN’s Investment department i.e. a fund manager or the sector analyst, may attend the meeting in person to cast the votes.

Subject to these guidelines, AMIN may generally vote in favour of the company proposals although this does not preclude AMIN from voting against management on specifi c occasions wherein the fund manager may be of the opinion that the proposal is not likely to enhance the economic value or cause indeterminate and unnecessary expense to shareholders. Further, AMIN may abstain from voting in case of certain proposals where suffi cient information is not provided by the management or other similar reasons.

AUTHORISATIONAny decision of the Fund Manager to vote on any proposal shall require approval from the Head of Equities and any decision of the Head of Equities to vote on any proposal shall require approval from the Chief Investment Offi cer. In the absence of the Chief Investment Offi cer, the approval shall be accorded by the Chief Executive Offi cer.

ADMINISTRATION AND RECORD KEEPINGSubject to the above policy, voting with respect to all the proposals will be evaluated by AMIN’s Investment department who will electronically cast the vote on the custody web interface (currently proxyedge) or cast the vote in person on AMIN’s behalf i.e. For / Against / Abstain, based on their review along with a rationale for casting the votes and the same would be intimated to the AMIN’s Operations department in writing.

Record of actual exercise of votes in the meeting i.e. For / Against / Abstain on the management’s proposals along with the fund manager’s recommendation, whether attended or not, will be maintained by the AMIN’s Operations department. The details of the votes in the prescribed format will be disclosed periodically in accordance with the requirements of SEBI (Mutual Fund) Regulations and guidelines issued from time to time.

20

HSBC Equity Fund

Det

ails

of t

he P

roxy

Vot

es e

xerc

ised

in G

ener

al M

eetin

gs o

f the

Lis

ted

Com

pani

es fo

r the

fi na

ncia

l yea

r end

ed 2

012-

13M

anag

emen

t Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

05-A

pr-2

012

CRI

SIL

Ltd.

Oth

er M

eetin

g�

For

Abs

tain

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

��

�Fo

rFo

r

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

For

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

20-A

pr-2

012

FAG

Bea

rings

Ltd

.A

nnua

l Gen

eral

Mee

ting

��

��

�Fo

rA

bsta

in

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

Abs

tain

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

For

26-N

ov-2

012

Indo

Tech

Tra

nsfo

rmer

s Lt

d.O

ther

Mee

ting

�Fo

rFo

r

Shar

eho

lder

s Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

Nil

Cat

ego

ry1

Alte

ratio

n in

Mem

oran

dum

of

Ass

ocia

tion

of t

he c

ompa

ny c

onta

inin

g M

ain,

Anc

illar

y an

d O

ther

obj

ects

of

the

com

pany

2 Re

ceiv

e, c

onsi

der

and

adop

t th

e A

udite

d Ba

lanc

e Sh

eet

as a

t ye

ar e

nd t

he P

rofi t

and

Los

s A

ccou

nt f

or t

he y

ear

ende

d on

tha

t da

te a

nd t

he R

epor

ts o

f th

e D

irect

ors

and

the

Aud

itors

the

reon

3 D

ecla

ratio

n of

div

iden

d on

Ord

inar

y (E

quity

) Sha

res

and

/ or

Pref

eren

ce s

hare

s4

App

oint

men

t, R

e-ap

poin

tmen

t an

d Re

mov

al o

f D

irect

ors

/ Add

ition

al D

irect

ors

5 A

ppoi

ntm

ent,

Re-

appo

intm

ent

and

Rem

oval

of

Aud

itors

6 St

ock

Opt

ion

plan

s an

d ot

her

man

agem

ent

com

pens

atio

n m

atte

rs7

Rest

ruct

urin

g of

Sha

re c

apita

l (in

clud

ing

stoc

k sp

lits,

con

solid

atio

n, r

educ

tion,

etc

. of

shar

e ca

pita

l)8

Cha

nges

in c

apita

l str

uctu

re in

clud

ing

incr

ease

s an

d de

crea

ses

of E

quity

& p

refe

rred

sto

ck /

war

rant

issu

ance

s9

Cor

pora

te r

estr

uctu

ring

mat

ters

(inc

ludi

ng m

erge

rs, a

cqui

sitio

ns, t

akeo

vers

, sel

l-off

s, t

rans

fer

of c

ontr

ol, c

hang

es in

sta

te o

f in

corp

orat

ion,

Del

isitn

g)

Statutory Details & DisclaimersAll returns have been sourced from Mutual Funds India Explorer software unless otherwise stated. With regard to equity schemes (including the equity component of MIPs), Fund performance is calculated on a total return basis (i.e. it includes dividends re-invested) while the benchmark is calculated on a price return basis (i.e. it does not consider dividends re-invested). This document has been prepared by HSBC Asset Management (India) Private Ltd (HSBC) for information purposes only and should not be construed as an offer or solicitation of an offer for purchase of any of the funds of HSBC Mutual Fund. All information contained in this document (including that sourced from third parties), is obtained from sources HSBC, the third party believes to be reliable but which it has not independently verifi ed and HSBC, the third party makes no guarantee, representation or warranty and accepts no responsibility or liability as to the accuracy or completeness of such information. The information and opinions contained within the document are based upon publicly available information and rates of taxation applicable at the time of publication, which are subject to change from time to time. Expressions of opinion are those of HSBC only and are subject to change without notice. It does not have regard to specifi c investment objectives, fi nancial situation and the particular needs of any specifi c person who may receive this document. Investors should seek fi nancial advice regarding the appropriateness of investing in any securities or investment strategies that may have been discussed or recommended in this report and should understand that the views regarding future prospects may or may not be realized. Neither this document nor the units of HSBC Mutual Fund have been registered in any jurisdiction. The distribution of this document in certain jurisdictions may be 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.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted, on any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of HSBC Asset Management (India) Private Ltd.

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

HSBC Equity Fund

HSBC Progressive Themes Fund

HSBC Progressive Themes FundAn open-ended Flexi-theme Equity Scheme


1


Dear Investor,







Market Outlook:





2






Yours sincerely,

Puneet Chaddha



3









REGISTRAR & TRANSFER AGENTSComputer Age Management Services (P) Ltd. (CAMS)No. 4. Nehru Nagar West, Kalapatti Main Road, Civil Aerodrome Post, Coimbatore - 641 014.






4





HSBC Progressive Themes Fund (HPTF) - an open-ended fl exi-theme Equity Scheme

HPTF seeks to generate long term capital growth from an actively managed portfolio of equity and equity related securities by investing primarily in sectors, areas and themes that play an important role in, and / or benefi t from, India’s progress, reform process and economic development.

The net assets of HPTF amounted to Rs. 130.40 crores as at March 31, 2013 as compared to Rs. 184.10 crores as at March 31, 2012. Around 99.66% of the net assets were invested in equities, 1.39% of the net assets were invested in reverse repos / CBLO and (-1.05%) were in the net current assets as at March 31, 2013.

HPTF is a theme based scheme. The focus on Infrastructure theme suffered due to delay in the government policy, high interest rates, etc. as against a more diversifi ed benchmark.

Date of Inception : 23 February, 2006 Absolute (%) Compounded Annualized (%)




Since Inception

HSBC Progressive Themes Fund - Growth -10.58 -4.28 -11.23 0.30



Rs. 10,000, if invested in HPTF - Growth, would have become

8,942 9,572 8,877 10,215

Rs. 10,000, if invested in CNX Nifty Index , would have become

10,693 9087 11,027 18,206


10,541 9045 10,727 17,624

Returns data as on March 31, 2013. Past performance may or may not be sustained in future. ‘Since Inception’ returns are calculated on Rs.10 invested at inception. Calculations are based on Growth NAVs.


EQUITY OUTLOOK



NIFTY 7.31

Sensex 8.23

BSE 100 6.84

BSE 200 6.03

BSE 500 4.81

CNX Midcap -4.02

Source: Bloomberg


5








DEBT OUTLOOK












6
















7




Amount (Rs.)

No. of Investors

Amount (Rs.)

No. of Investors

HSBC Progressive Themes Fund 682,789.73 347 4,179,283.83 329





Com-plaintCode

Type of complaint#


beginningof theyear


receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 3 3 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


2 40 22 18 2 0 0 0 0 0 0


0 2 1 1 0 0 0 0 0 0 0


0 9 9 0 0 0 0 0 0 0 0


0 6 5 0 0 0 0 1 0 0 0


0 277 277 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


8


Com-plaintCode

Type of complaint#


beginningof theyear


receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 18 18 0 0 0 0 0 0 0 0

IV Others 0 14 12 1 1 0 0 0 0 0 0

Total 2 369 347 20 3 0 0 1 0 0 0

Note:









Sd/-

Dilip J. Thakkar

Trustee

MUMBAIJuly 16, 2013


9



HSBC Mutual Fund

Report on the Financial Statements1. We have audited the accompanying fi nancial statements of HSBC Mutual Fund - HSBC Progressive Themes

Fund, (the “Scheme”), which comprise the Balance Sheet as at March 31, 2013, and the related Revenue Account and Cash Flow Statement for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.










(b) in the case of the Revenue Account, of the net defi cit for the year ended on that date; and





10






Sd/-



11


Rs. in Lakhs

HSBC PROGRESSIVE THEMES FUNDAs at

March 31, 2013As at

March 31, 2012

LIABILITIES1 Unit Capital 13,710.36 17,485.562 Reserves & Surplus2.1 Unit Premium Reserves (17,930.00) (22,768.72)2.2 Unrealised Appreciation Reserve – –2.3 Other Reserves 17,259.99 23,693.073 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 340.76 374.32

TOTAL 13,381.11 18,784.23

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares 12,995.97 18,275.551.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – 19.041.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – –1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –

Total Investments 12,995.97 18,294.592 Deposits – –3 Other Current Assets3.1 Cash & Bank Balance 44.84 141.753.2 CBLO / Reverse Repo Lending 181.71 182.943.3 Others 158.59 164.954 Deferred Revenue Expenditure – –


TOTAL 13,381.11 18,784.23



12



Rs. in Lakhs

HSBC PROGRESSIVE THEMES FUNDCurrent


Previous Year ended

March 31, 2012

1 INCOME1.1 Dividend 409.76 349.181.2 Interest 14.76 107.191.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of

investments574.68 (866.89)

1.6 Realised Gains / (Losses) on Derivative Transactions – (1,136.94)1.7 Other Income 3.54 0.01

(A) 1,002.74 (1,547.45)

2 EXPENSES2.1 Management fees 199.98 208.942.2 Service tax on Management fees 24.72 21.542.3 Transfer agents fees and expenses 25.00 32.032.4 Custodian fees 6.73 10.382.5 Trusteeship fees 0.05 0.292.6 Commission to Agents * – –2.7 Marketing & Distribution expenses 147.02 149.242.8 Audit fees 1.85 2.002.9 Investor Education Expenses 1.59 –2.10 Other operating expenses 10.32 14.46

(B) 417.26 438.88

3 NET REALISED GAINS / (LOSSES) FORTHE YEAR (A - B = C) 585.48 (1,986.33)

4 Change in Unrealised Depreciation invalue of investments and derivatives (D) 2,041.49 (1,184.55)

5 NET GAINS / (LOSSES) FOR THE YEAR [E = (C - D)] (1,456.01) (801.78)

6 Change in Unrealised appreciation inthe value of investments and derivatives (F) – –

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) (1,456.01) (801.78)7.1 Add: Balance transfer from Unrealised Appreciation Reserve – –7.2 Less: Balance transfer to Unrealised Appreciation Reserve – –7.3 Add / (Less): Equalisation (4,977.07) (4,377.37)7.4 Transfer from Reserve Fund 23,693.07 28,872.19

7.5 Transfer from Unit Premium Reserve – –

8 TOTAL 17,259.99 23,693.04

9 Dividend appropriation9.1 Income Distributed during the year – (0.03)9.2 Tax on income distributed during the year – –

10 Retained Surplus / (Defi cit) carried forward toBalance sheet 17,259.99 23,693.07



13



HSBC PROGRESSIVE THEMES FUND Current


Previous Year ended

March 31, 2012

1. NAV per unit (Rs.):

Open

Growth Option 11.3220 11.6848

Dividend Option 9.6304 9.9391

Direct Plan - Growth Option N.A. N.A.

Direct Plan - Dividend Option N.A. N.A.

High



Direct Plan - Growth Option 12.6790 N.A.

Direct Plan - Dividend Option 10.7844 N.A.

Low





End5





2. Closing Assets Under Management (Rs. in Lakhs)

End 13,040 18,410

Average (AAuM)1 16,214 18,396

3. Gross income as % of AAuM2 6.18% -8.41%

4. Expense Ratio:

a. Total Expense as % of AAuM (planwise)

Growth Option 2.57% 2.39%

Dividend Option 2.57% 2.39%

Direct Plan - Growth Option 1.95% N.A.

Direct Plan - Dividend Option 1.95% N.A.

b. Management Fee as % of AAuM (planwise)





5. Net Income as a percentage of AAuM3 3.61% -10.80%


14



HSBC PROGRESSIVE THEMES FUND Current


Previous Year ended

March 31, 2012

7. Total Dividend per unit distributed during the year (planwise)

Retail

Dividend Option – –

Direct Plan - Dividend Option – –

Corporate



8. Returns (%):

a. Last One Year

Scheme

Growth Option (7.9867) (3.8600)

Dividend Option (7.9860) (3.8600)



Benchmark

S&P BSE 200 8.2600 (8.7974)

b. Since Inception

Scheme



Direct Plan - Growth Option (16.0600) N.A.

Direct Plan - Dividend Option (16.0600) N.A.

Benchmark

S&P BSE 200 8.5400 8.9442

1 AAuM = Average daily net assets2 Gross income = amount against (A) in the Revenue account i.e. Income3 Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the year4 Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year5 The net asset value disclosed represents the computed NAV on March 31, 2013 (Non-business Day),

and not the last declared NAV.

15


Notes to Accounts - Annexure ITo the Abridged Balance Sheet and Revenue Account for the year ended March 31, 2013

HSBC PROGRESSIVE THEMES FUND1 Investments:


1.2 Open position of derivatives as of years ended March 31, 2013 and March 31, 2012 are NIL.

1.3 Investments in Associates and Group Companies

(Rupees)



by all schemes


by all schemes

2013 2012


Fixed deposits

– – – 32,000,000

1.4 Open positions of Securities Borrowed and / or Lent by the Scheme as of the years ended March 31, 2013 and March 31, 2012 are NIL.


1.6 Aggregate Unrealised Gain / Loss as at the end of the Financial year 2012 -2013 and percentage to net assets are as under :



2013 2012

Equity Shares

– Appreciation 113,032,612 8.67% 196,647,102 10.68%

– Depreciation 436,659,966 33.49% 316,125,058 17.17%

1.7 The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2012-2013 (excluding accretion of discount) is Rs. 409,284,702 and Rs. 792,465,732 respectively being 25.24% and 48.87% of the average daily net assets.

The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2011-2012 (excluding accretion of discount) is Rs. 1,031,837,444 and Rs. 1,132,618,152 respectively being 56.09% and 61.57% of the average daily net assets.

1.8 Non-Traded securities in the portfolio:

Aggregate Value of Equity, Debt & Money Market Instruments and percentage to net assets is as follows:

Security Category

Fair Value (Rs.)

Percentage to Net Assets

Fair Value (Rs.)


2013 2012

Equities – – 1,904,473 0.10%


During the year 2012-2013, The Hongkong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid clearing member charges on derivative transactions amounting to Rs. NIL.

16


During the year 2011-2012, The Hongkong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid clearing member charges on derivative transactions amounting to Rs. 334,155.

Details of amounts paid to associates in terms of Regulation 25 (8) are as follows :


Name of Sponsor/AMC and its associate/related parties/group companies


Relation

Period Covered


% of Total Business




Fund


Associate 2012-2013 2.30 35.55 1,468,093 16.11


Associate 2012-2013 0.00~ 0.02 21,632 0.24



Relation

Period Covered


% of Total Business




Fund


Associate 2011-2012 0.74 9.02 1,089,732 5.76


Associate 2011-2012 0.01 0.23 27,800 0.05




relation

Period Covered


[Rs. in Crores]

% of total value of

transaction of the fund



fund


Sponsor 2012-2013 4.72 0.83 90,222 4.75



relation

Period Covered


[Rs. in Crores]

% of total value of




fund


Sponsor 2011-2012 9.55 1.62 122,959 2.21

~ Indicates less than 0.01


17


The brokerage paid was at rates similar to those offered to other brokers / distributors.

Further, The Hong Kong and Shanghai Banking Corporation Limited, an associate of the Sponsor, is on the panel of bankers with whom HSBC Mutual Fund places money on fi xed deposits and enters into reverse repo transactions from time to time at competitive rates.

3 None of the Investors held more than 25% of the total net assets of the scheme at the years ended March 31, 2013 and March 31, 2012.

4 Unit Capital movement during the years ended March 31, 2013 and March 31, 2012 :

Description

2012 - 2013

Opening Units Subscription Redemption Closing Units Face Value per Unit

(Rs.)

Growth Option 92,850,425.492 2,741,427.354 21,437,540.221 74,154,312.625 10

Dividend Option 82,005,162.903 1,754,167.782 20,835,398.725 62,923,931.960 10


– 13,362.802 257.525 13,105.277 10


– 12,268.093 – 12,268.093 10

Description

2011 - 2012


Growth Option 107,233,978.187 6,010,401.984 20,393,954.679 92,850,425.492 10

Dividend Option 99,761,721.929 4,058,041.551 21,814,600.577 82,005,162.903 10

5 Previous year’s fi gures have been re-grouped / re-arranged where appropriate.



8 Other Income of Rs. 354,038 (2012:Rs.1,249) represents Exit load (net of service tax) credited to the scheme, provision for expenses written back since no longer required and IPO expenses written back.




18


















19

















20


Det

ails

of t

he P

roxy

Vot

es e

xerc

ised

in G

ener

al M

eetin

gs o

f the

Lis

ted

Com

pani

es fo

r the

fi na

ncia

l yea

r end

ed 2

012-

13M

anag

emen

t Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

05-A

pr-2

012

CRI

SIL

Ltd.

Oth

er M

eetin

g�

For

Abs

tain

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

��

�Fo

rFo

r

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

For

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

20-A

pr-2

012

FAG

Bea

rings

Ltd

.A

nnua

l Gen

eral

Mee

ting

��

��

�Fo

rA

bsta

in

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

Abs

tain

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

For

26-N

ov-2

012

Indo

Tech

Tra

nsfo

rmer

s Lt

d.O

ther

Mee

ting

�Fo

rFo

r

Shar

eho

lder

s Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

Nil

Cat

ego

ry1

Alte

ratio

n in

Mem

oran

dum

of

Ass

ocia

tion

of t

he c

ompa

ny c

onta

inin

g M

ain,

Anc

illar

y an

d O

ther

obj

ects

of

the

com

pany

2 Re

ceiv

e, c

onsi

der

and

adop

t th

e A

udite

d Ba

lanc

e Sh

eet

as a

t ye

ar e

nd t

he P

rofi t

and

Los

s A

ccou

nt f

or t

he y

ear

ende

d on

tha

t da

te a

nd t

he R

epor

ts o

f th

e D

irect

ors

and

the

Aud

itors

the

reon

3 D

ecla

ratio

n of

div

iden

d on

Ord

inar

y (E

quity

) Sha

res

and

/ or

Pref

eren

ce s

hare

s4

App

oint

men

t, R

e-ap

poin

tmen

t an

d Re

mov

al o

f D

irect

ors

/ Add

ition

al D

irect

ors

5 A

ppoi

ntm

ent,

Re-

appo

intm

ent

and

Rem

oval

of

Aud

itors

6 St

ock

Opt

ion

plan

s an

d ot

her

man

agem

ent

com

pens

atio

n m

atte

rs7

Rest

ruct

urin

g of

Sha

re c

apita

l (in

clud

ing

stoc

k sp

lits,

con

solid

atio

n, r

educ

tion,

etc

. of

shar

e ca

pita

l)8

Cha

nges

in c

apita

l str

uctu

re in

clud

ing

incr

ease

s an

d de

crea

ses

of E

quity

& p

refe

rred

sto

ck /

war

rant

issu

ance

s9

Cor

pora

te r

estr

uctu

ring

mat

ters

(inc

ludi

ng m

erge

rs, a

cqui

sitio

ns, t

akeo

vers

, sel

l-off

s, t

rans

fer

of c

ontr

ol, c

hang

es in

sta

te o

f in

corp

orat

ion,

Del

isitn

g)

HSBC EMERGING MARKETS FUND

HSBC Emerging Markets FundAn open-ended Scheme


1


Dear Investor,







Market Outlook:





2






Yours sincerely,

Puneet Chaddha



3














* Mr. Ashok Jha and Mr. Gannesh Bharadhwaj resigned as a Director from the Board of HSBC Asset Management (India) Private Limited with effect from February 8, 2013 and May 28, 2013, respectively.

4






HSBC Emerging Markets Fund (HEMF) - an open-ended Scheme

HEMF seeks to provide long term capital appreciation by investing in India and in the emerging markets, in equity and equity related instruments, share classes and units/securities issued by overseas mutual funds or unit trusts. The fund may also invest a limited proportion in debt and money market instruments.

The net assets of HEMF amounted to Rs. 19.11 crores as at March 31, 2013 compared to Rs. 51.36 crores as at March 31, 2012. Around 97.36% of the net assets were invested in HSBC GEM Equity Fund (overseas mutual fund), 3.18% of the net assets were invested in reverse repos / CBLO and (-0.54%) were in the net current assets as at March 31, 2013.

HEMF had outperformed its benchmark during the period 2012-13 mainly on account of depreciation of the INR vis-à-vis the USD.

Date of Inception : 17 March, 2008 Absolute (%) Compounded Annualized (%)




Since Inception

HSBC Emerging Markets Fund - Growth 4.55 -6.74 11.30 0.70

MSCI Emerging Market Index (Scheme Benchmark) 1.77 -7.26 9.33 1.25


Rs. 10,000, if invested in HEMF, would have become 10,455 9,326 11,130 10,360

Rs. 10,000, if invested in MSCI Emerging Market Index, would have become

10,177 9,274 10,933 10,646

Rs. 10,000, if invested in CNX Nifty Index , would have become

10,693 9087 11,027 12,380



EQUITY OUTLOOK



NIFTY 7.31

Sensex 8.23

S&P BSE 100 6.84

S&P BSE 200 6.03

S&P BSE 500 4.81

CNX Midcap -4.02

Source: Bloomberg

5









DEBT OUTLOOK









� Current account defi cit / BoP situation: CAD determines how the pressure on currency works and effective management of forex reserves.


6
















7





Amount (Rs.)

No. of Investors

Amount (Rs.)

No. of Investors

HSBC Emerging Markets Fund – – 178,210.15 18





Com-plaintCode

Type of complaint#


beginningof theyear


receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 3 3 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


2 40 22 18 2 0 0 0 0 0 0


0 2 1 1 0 0 0 0 0 0 0


0 9 9 0 0 0 0 0 0 0 0


0 6 5 0 0 0 0 1 0 0 0


0 277 277 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0

8



Com-plaintCode

Type of complaint#


beginningof theyear


receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 18 18 0 0 0 0 0 0 0 0

IV Others 0 14 12 1 1 0 0 0 0 0 0

Total 2 369 347 20 3 0 0 1 0 0 0

Note:









Sd/-

Dilip J. Thakkar

Trustee

MUMBAIJuly 16, 2013

9



HSBC Mutual Fund

Report on the Financial Statements1. We have audited the accompanying fi nancial statements of HSBC Mutual Fund - HSBC Emerging Markets

Fund (the “Scheme”), which comprise the Balance Sheet as at March 31, 2013, and the related Revenue Account for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.


Management (India) Private Limited (the “Management”) are responsible for the preparation of these fi nancial statements that give a true and fair view of the fi nancial position and fi nancial performance of the Scheme in accordance with the accounting policies and standards specifi ed in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto (the “Regulations”). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the fi nancial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.







(a) in the case of the Balance Sheet, of the state of affairs of the Scheme as at March 31, 2013; and

(b) in the case of the Revenue Account, of the net surplus for the year ended on that date.




10


(b) In our opinion, the Balance Sheet and Revenue Account dealt with by this report have been prepared in accordance with the accounting policies and standards specifi ed in the Ninth Schedule of the Regulations.

8. As required by clause 5 (ii)(2) of the Eleventh Schedule to the Regulations, we report that the Balance Sheet and Revenue Account dealt with by this Report are in agreement with the books of account of the Scheme.


Sd/-




11


Rs. in Lakhs

HSBC EMERGING MARKETS FUNDAs at

March 31, 2013As at

March 31, 2012

LIABILITIES1 Unit Capital 1,825.02 5,154.652 Reserves & Surplus2.1 Unit Premium Reserves (410.20) (181.04)2.2 Unrealised Appreciation Reserve 165.86 252.102.3 Other Reserves 331.13 (90.00)3 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income/Deposits – –4.2 Other Current Liabilities & Provisions 13.06 134.14

TOTAL 1,924.87 5,269.85

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – –1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities 1,861.29 4,946.01


2 Deposits – –3 Other Current Assets3.1 Cash & Bank Balance 0.38 3.473.2 CBLO / Reverse Repo Lending 60.82 309.163.3 Others 2.38 11.214 Deferred Revenue Expenditure – –


TOTAL 1,924.87 5,269.85



12



Rs. in Lakhs

HSBC EMERGING MARKETS FUNDCurrent


Previous Year ended

March 31, 2012

1 INCOME1.1 Dividend 62.91 39.591.2 Interest 9.87 10.121.3 Realised Gain / (Loss) on Foreign Exchange Transactions 8.56 12.261.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of

investments200.61 68.13

1.6 Realised Gains / (Losses) on Derivative Transactions – –1.7 Other Income 1.83 –

(A) 283.78 130.10

2 EXPENSES2.1 Management fees 22.04 36.042.2 Service tax on Management fees 2.72 3.722.3 Transfer agents fees and expenses 2.99 7.092.4 Custodian fees 4.33 2.922.5 Trusteeship fees 0.01 0.082.6 Commission to Agents * – –2.7 Marketing & Distribution expenses 18.74 41.122.8 Audit fees 0.27 0.552.9 Investor Education Expenses 0.24 –2.10 Other operating expenses 1.78 3.842.11 Expenses to be Reimbursed by the Investment Manager (0.55) (8.53)

(B) 52.57 86.83

3 NET REALISED GAINS / (LOSSES) FORTHE YEAR (A - B = C) 231.21 43.27

4 Change in Unrealised Depreciation invalue of investments *** (D) 0.22 0.23

5 NET GAINS / (LOSSES) FOR THE YEAR [E = (C - D)] 231.43 43.046 Change in Unrealised appreciation in

the value of investments (F) (86.24) (232.64)

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 145.19 (189.60)

7.1 Add: Balance transfer from Unrealised Appreciation Reserve 86.24 232.647.2 Less: Balance transfer to Unrealised Appreciation Reserve – –7.3 Add / (Less): Equalisation 189.70 (85.52)

7.4 Transfer from Reserve Fund (90.00) (47.52)

7.5 Transfer from Unit Premium Reserve – –8 TOTAL 331.13 (90.00)

9 Dividend Appropriation9.1 Income Distributed during the year – –9.2 Tax on income distributed during the year – –10 Retained Surplus / (Defi cit) carried forward

to Balance Sheet 331.13 (90.00)

Notes to Accounts - Annexure I* Commission to Agents is included in Marketing & Distribution expenses*** Includes Unrealised Depreciation in the value of Foreign Currency Transactions

13



HSBC EMERGING MARKETS FUND Current


Previous Year ended

March 31, 2012


Open

Regular Plan Growth Option 9.9633 10.5663

Regular Plan Dividend Option 9.9633 10.5663



High





Low





End5






End 1,912 5,136

Average (AAuM)1 2,988 5,265


4. Expense Ratio:


Regular Plan Growth Option 1.76% 1.65%

Regular Plan Dividend Option 1.76% 1.65%










14


HSBC EMERGING MARKETS FUND Current


Previous Year ended

March 31, 2012


Retail

Regular Plan Dividend Option – –


Corporate



8. Returns (%):

a. Last One Year

Scheme

Regular Plan Growth Option 4.7893 (5.1200)

Regular Plan Dividend Option 4.7893 (5.1200)



Benchmark

MSCI Emerging Markets Index 1.9900 (11.0500)

b. Since Inception

Scheme





Benchmark

MSCI Emerging Markets Index 1.2900 (0.0800)



Key Statistics for the year ended March 31, 2013 (Contd...

15




1 Investments:



1.3 Investments in Associates and Group Companies:(Rupees)



by all schemes


by all schemes

2013 2012


Fixed deposits

– – – 32,000,000



1.6 Aggregate Unrealised Gain / Loss as at the end of the Financial years ended March 31, 2013 and March 31, 2012 and their percentages to net assets are as under:

Security Category Amount (Rs.) Percentage to Net Assets


2013 2012

Units in Mutual Fund

– Appreciation 16,586,375 8.6757% 25,210,255 4.91%

– Depreciation – – 22,172 0.00% ~


1.7 The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2012-2013 (excluding accretion of discount) is Rs. 20,876,905 and 340,785,692 respectively being 6.99% and 114.03% of the average daily net assets.

The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2011-2012 (excluding accretion of discount) is Rs. 89,083,957 and 168,786,565 respectively being 16.92% and 32.06% of the average daily net assets.

1.8 Non-Traded securities in the portfolio as on March 31, 2013 and March 31, 2012 are Nil.





Relation

Period Covered


% of Total Business




Fund


Associate 2012-2013 1.97 50.43 352,295 20.52

16




Relation

Period Covered


% of Total Business




Fund


Associate 2012-2013 0.00~ 0.02 1,302 0.08



Relation

Period Covered


% of Total Business




Fund


Associate 2011-2012 0.11 1.00 1,038,338 27.47


Associate 2011-2012 0.01 0.10 1,952 0.05



Further, The Hong kong and Shanghai Banking Corporation Limited, an associate of the Sponsor, is on the panel of bankers with whom HSBC Mutual Fund places money on fi xed deposits and enters into reverse repo transactions from time to time at competitive rates.

3 None of the Investors held more than 25% of the total net assets of the scheme at the years ended March 31, 2013 and March 31,2012.


Description

2012-2013


(Rs.)


32,345,458.109 2,812,825.449 23,844,855.312 11,313,428.246 10


19,200,996.091 590,701.678 12,914,946.272 6,876,751.497 10


– 58,396.186 176.972 58,219.214 10


– 1,802.309 – 1,802.309 10

Description

2011 - 2012


(Rs.)


37,889,143.533 1,393,135.304 6,936,820.728 32,345,458.109 10


17



Description

2011 - 2012


(Rs.)


18,599,353.755 10,804,146.819 10,202,504.483 19,200,996.091 10




8 Other income of Rs. 183,257 represents Exit load (net of service tax) credited to the scheme.



18


















19

















20


Det

ails

of t

he P

roxy

Vot

es e

xerc

ised

in G

ener

al M

eetin

gs o

f the

Lis

ted

Com

pani

es fo

r the

fi na

ncia

l yea

r end

ed 2

012-

13M

anag

emen

t Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

05-A

pr-2

012

CRI

SIL

Ltd.

Oth

er M

eetin

g�

For

Abs

tain

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

��

�Fo

rFo

r

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

For

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

20-A

pr-2

012

FAG

Bea

rings

Ltd

.A

nnua

l Gen

eral

Mee

ting

��

��

�Fo

rA

bsta

in

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

Abs

tain

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

For

26-N

ov-2

012

Indo

Tech

Tra

nsfo

rmer

s Lt

d.O

ther

Mee

ting

�Fo

rFo

r

Shar

eho

lder

s Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

Nil

Cat

ego

ry1

Alte

ratio

n in

Mem

oran

dum

of

Ass

ocia

tion

of t

he c

ompa

ny c

onta

inin

g M

ain,

Anc

illar

y an

d O

ther

obj

ects

of

the

com

pany

2 Re

ceiv

e, c

onsi

der

and

adop

t th

e A

udite

d Ba

lanc

e Sh

eet

as a

t ye

ar e

nd t

he P

rofi t

and

Los

s A

ccou

nt f

or t

he y

ear

ende

d on

tha

t da

te a

nd t

he R

epor

ts o

f th

e D

irect

ors

and

the

Aud

itors

the

reon

3 D

ecla

ratio

n of

div

iden

d on

Ord

inar

y (E

quity

) Sha

res

and

/ or

Pref

eren

ce s

hare

s4

App

oint

men

t, R

e-ap

poin

tmen

t an

d Re

mov

al o

f D

irect

ors

/ Add

ition

al D

irect

ors

5 A

ppoi

ntm

ent,

Re-

appo

intm

ent

and

Rem

oval

of

Aud

itors

6 St

ock

Opt

ion

plan

s an

d ot

her

man

agem

ent

com

pens

atio

n m

atte

rs7

Rest

ruct

urin

g of

Sha

re c

apita

l (in

clud

ing

stoc

k sp

lits,

con

solid

atio

n, r

educ

tion,

etc

. of

shar

e ca

pita

l)8

Cha

nges

in c

apita

l str

uctu

re in

clud

ing

incr

ease

s an

d de

crea

ses

of E

quity

& p

refe

rred

sto

ck /

war

rant

issu

ance

s9

Cor

pora

te r

estr

uctu

ring

mat

ters

(inc

ludi

ng m

erge

rs, a

cqui

sitio

ns, t

akeo

vers

, sel

l-off

s, t

rans

fer

of c

ontr

ol, c

hang

es in

sta

te o

f in

corp

orat

ion,

Del

isitn

g)

HSBC BRAZIL FUND#

HSBC Brazil FundAn Open ended Fund of Funds Scheme


1

HSBC BRAZIL FUND#

Dear Investor,







Market Outlook:





2

HSBC BRAZIL FUND#





Yours sincerely,

Puneet Chaddha



3

HSBC BRAZIL FUND#














4

HSBC BRAZIL FUND#





HSBC Brazil Fund (HBF) - an open ended Fund of Funds Scheme

HBF seeks to provide long term capital appreciation by investing predominantly in units/shares of HSBC Global Investments Funds (HGIF) Brazil Equity Fund. The Scheme may, at the discretion of the Investment Manager, also invest in the units of other similar overseas mutual fund Schemes, which may constitute a signifi cant part of its corpus. The Scheme may also invest a certain proportion of its corpus in money market instruments and /or units of liquid mutual fund Schemes, in order to meet liquidity requirements from time to time.

The net assets of HBF amounted to Rs. 184.79 crores as at March 31, 2013 compared to Rs. 294.17 crores as at March 31, 2012. Around 98.43 % of the net assets were invested in HSBC Brazil Equity Fund (overseas mutual fund), 2.69% of the net assets were invested in reverse repos/CBLO and (-1.13%) were in the net current assets as at March 31, 2013.

HBF had outperformed its benchmark during the period 2012-13 mainly on account of depreciation of the INR vis-à-vis the USD.

Date of Inception : 6 May, 2011 Absolute (%)

Compounded Annualized (%)


Since Inception

HSBC Brazil Fund - Growth -2.50 -1.68

MSCI Brazil 10/40 Index (Scheme Benchmark) -14.53 -12.43

CNX Nifty Index (Standard Benchmark) 6.93 0.22

Rs. 10,000, if invested in HBF, would have become 9,750 9,681

Rs. 10,000, if invested in MSCI Brazil 10/40 Index, would have become 8,547 7,772

Rs. 10,000, if invested in CNX Nifty Index, would have become 10,693 10,042



EQUITY OUTLOOK



NIFTY 7.31

Sensex 8.23

S&P BSE 100 6.84

S&P BSE 200 6.03

S&P BSE 500 4.81

CNX Midcap -4.02

Source: Bloomberg

5

HSBC BRAZIL FUND#








DEBT OUTLOOK











6

HSBC BRAZIL FUND#















7

HSBC BRAZIL FUND#


5. UNCLAIMED DIVIDENDS & REDEMPTIONSNil





Com-plaintCode

Type of complaint#


beginningof theyear


receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 3 3 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


2 40 22 18 2 0 0 0 0 0 0


0 2 1 1 0 0 0 0 0 0 0


0 9 9 0 0 0 0 0 0 0 0


0 6 5 0 0 0 0 1 0 0 0


0 277 277 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0

8

HSBC BRAZIL FUND#


Com-plaintCode

Type of complaint#


beginningof theyear


receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 18 18 0 0 0 0 0 0 0 0

IV Others 0 14 12 1 1 0 0 0 0 0 0

Total 2 369 347 20 3 0 0 1 0 0 0

Note:









Sd/-

Dilip J. Thakkar

Trustee

MUMBAIJuly 16, 2013

9

HSBC BRAZIL FUND#


HSBC Mutual Fund

Report on the Financial Statements1. We have audited the accompanying fi nancial statements of HSBC Mutual Fund - HSBC Brazil Fund (the

“Scheme”), which comprise the Balance Sheet as at March 31, 2013, and the related Revenue Account for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.










(b) in the case of the Revenue Account, of the net defi cit for the year ended on that date.




10

HSBC BRAZIL FUND#


(b) In our opinion, the Balance Sheet and Revenue Account, where applicable, dealt with by this report have been prepared in accordance with the accounting policies and standards specifi ed in the Ninth Schedule of the Regulations.

8. As required by clause 5 (ii)(2) of the Eleventh Schedule to the Regulations, we report that the Balance Sheet and Revenue Account, where applicable, dealt with by this Report are in agreement with the books of account of the Scheme.


Sd/-



11

HSBC BRAZIL FUND#


Rs. in Lakhs

HSBC BRAZIL FUNDAs at

March 31, 2013As at

March 31, 2012

LIABILITIES1 Unit Capital 18,947.21 29,622.242 Reserves & Surplus2.1 Unit Premium Reserves (28.48) 22.532.2 Unrealised Appreciation Reserve – 123.682.3 Other Reserves (438.77) (351.08)3 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income/Deposits – –4.2 Other Current Liabilities & Provisions 212.86 331.92

TOTAL 18,692.82 29,749.29

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – –1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities 18,190.40 28,041.50

Total Investments 18,190.40 28,041.502 Deposits – 34.093 Other Current Assets3.1 Cash & Bank Balance 3.13 373.253.2 CBLO / Reverse Repo Lending 497.98 1,275.663.3 Others 1.31 24.794 Deferred Revenue Expenditure – –


TOTAL 18,692.82 29,749.29


12

HSBC BRAZIL FUND#


Rs. in Lakhs

HSBC BRAZIL FUNDCurrent


Previous Period ended

March 31, 2012

1 INCOME1.1 Dividend 553.72 –1.2 Interest 55.81 105.281.3 Realised Gain / (Loss) on Foreign Exchange Transactions (70.32) (38.76)1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of

investments(308.89) (206.61)

1.6 Realised Gains / (Losses) on Derivative Transactions – –1.7 Other Income 4.63 0.03

(A) 234.95 (140.06)


(B) 432.31 423.79

3 NET REALISED GAINS / (LOSSES) FORTHE PERIOD (A - B = C) (197.36) (563.85)

4 Change in Unrealised Depreciation in value ofinvestments and Derviatives *** (D) (279.51) –

5 NET GAINS / (LOSSES) FOR THE PERIOD [E = (C - D)] (476.87) (563.85)

6 Change in Unrealised appreciation in the valueof investments (F) (123.68) 123.68

7 NET SURPLUS / (DEFICIT) FORTHE PERIOD (E + F = G) (600.55) (440.17)

7.1 Add: Balance transfer from Unrealised Appreciation Reserve 123.68 –7.2 Less: Balance transfer to Unrealised Appreciation Reserve – 123.687.3 Add / (Less): Equalisation 389.16 212.777.4 Transfer from Reserve Fund (351.08) –


8 TOTAL (438.79) (351.08)

9 Dividend Appropriation9.1 Income Distributed during the period – –9.2 Tax on income distributed during the period – –

10 Retained Surplus / (Defi cit) carried forward toBalance Sheet (438.79) (351.08)



*** Includes Unrealised Depreciation in the value of Foreign Currency Transactions

13

HSBC BRAZIL FUND#





March 31, 2012


Open

Regular Plan Growth Option 9.9308 –

Regular Plan Dividend Option 9.9308 –



High





Low





End5






End 18,480 29,417

Average (AAuM)1 24,391 28,400

3. Gross income as % of AAuM2 * 0.96% –0.51%

4. Expense Ratio:

a. Total Expense as % of AAuM (planwise) *





b. Management Fee as % of AAuM (planwise) *





5. Net Income as a percentage of AAuM3 * –0.81% –2.06%

14

HSBC BRAZIL FUND#




March 31, 2012


7. Total Dividend per unit distributed during the period (planwise)

Retail



Corporate



8. Returns (%):

a. Last One Year

Scheme

Regular Plan Growth Option (1.8287) N.A.

Regular Plan Dividend Option (1.8287) N.A.



Benchmark

MSCI Brazil 10/40 Index (14.5300) N.A.

b. Since Inception

Scheme

Regular Plan Growth Option (1.3277) (0.6900)

Regular Plan Dividend Option (1.3277) (0.6900)



Benchmark

MSCI Brazil 10/40 Index (12.4400) (9.9800)

* Indicates Annualised Value1 AAuM = Average daily net assets2 Gross income = amount against (A) in the Revenue account i.e. Income3 Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the period4 Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the period5 The net asset value disclosed represents the computed NAV on March 31, 2013 (Non-business Day),



15

HSBC BRAZIL FUND#


HSBC BRAZIL FUND1 Investments:






by all schemes


by all schemes

2013 2012


Fixed deposits

– – – 32,000,000

1.4 Open positions of Securities Borrowed and / or Lent by the Scheme as of the year ended March 31, 2013 is NIL and for the period ended March 31, 2012 is NIL.

1.5 NPAs as at year ended March 31, 2013 and as at period ended March 31, 2012 are NIL

1.6 Aggregate Unrealised Gain / Loss as at the end of the fi nancial year ended March 31, 2013 and as at the period ended March 31, 2012 along with their percentages to net assets are as under:



2013 2012

Units in Mutual Fund

– Appreciation – – 12,367,807 0.4204%

– Depreciation 27,951,384 0.9502% – –

1.7 The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2012-2013 (excluding accretion of discount) is Rs. 207,241,698 and Rs. 1,121,144,051 respectively being 8.50% and 45.96% of the average daily net assets.

The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial period 2011-2012 (excluding accretion of discount) is Rs. 3,193,085,579 and Rs. 380,641,899 respectively being 112.43% and 13.40% of the average daily net assets.

1.8 Non-Traded securities in the portfolio as on March 31, 2013 and March 31, 2012 is Nil


Details of amounts paid to associates in terms of Regulation 25 (8) are as follows


Name of Sponsor / AMC and its associates / related parties / group companies


Relation

Period Covered


% of Total Business




Fund


Associate 2012-2013

50.61 78.44 12,282,223 79.03


Associate 2012-2013

0.14 0.21 324,782 2.09

16

HSBC BRAZIL FUND#



Relation

Period Covered


% of Total Business




Fund


Associate 2011-2012 343.85 86.61 45,259,408 83.41


Associate 2011-2012 10.97 2.76 1,585,497 2.92



3 None of the Investors held more than 25% of the total net assets of the Scheme at the year / period ended March 31, 2013 and March 31, 2012.

4 Unit Capital movement during the year ended March 31, 2013 and the period ended March 31, 2012:

Description

2012-2013



168,248,230.925 42,415,202.897 93,381,371.211 117,282,062.611 10


127,974,218.193 20,858,983.529 76,772,576.741 72,060,624.981 10


– 127,498.072 – 127,498.072 10


– 1,901.307 – 1,901.307 10

Description

2011-2012


(Rs.)


– 218,806,292.316 50,558,061.391 168,248,230.925 10


– 173,212,987.553 45,238,769.360 127,974,218.193 10

5 No contingent liabilities for the year / period ended March 31, 2013 and March 31, 2012.


7 Other income of Rs. 462,999 (2012: Rs. 3,025) represents Exit load (net of service tax) credited to the Scheme.


17

HSBC BRAZIL FUND#



9. The Annual Accounts of the Schemes prepared in accordance with the accounting policies and standards specifi ed in the Ninth Schedule of The Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 has been approved by the Board of Directors of HSBC Asset Management (India) Private Limited and The Board of Trustees of HSBC Mutual Fund at their meetings held on July 12, 2013 and July 16, 2013 respectively. The audit report attached herewith refers to the said Annual Accounts. The aforesaid abridged accounts are an extract of the Annual Accounts and are prepared in accordance with SEBI Circular No. IMD/Cir8/132968/2008 dated July 24, 2008.

18

HSBC BRAZIL FUND#

















19

HSBC BRAZIL FUND#
















20

HSBC BRAZIL FUND#

Det

ails

of t

he P

roxy

Vot

es e

xerc

ised

in G

ener

al M

eetin

gs o

f the

Lis

ted

Com

pani

es fo

r the

fi na

ncia

l yea

r end

ed 2

012-

13M

anag

emen

t Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

05-A

pr-2

012

CRI

SIL

Ltd.

Oth

er M

eetin

g�

For

Abs

tain

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

��

�Fo

rFo

r

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

For

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

20-A

pr-2

012

FAG

Bea

rings

Ltd

.A

nnua

l Gen

eral

Mee

ting

��

��

�Fo

rA

bsta

in

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

Abs

tain

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

For

26-N

ov-2

012

Indo

Tech

Tra

nsfo

rmer

s Lt

d.O

ther

Mee

ting

�Fo

rFo

r

Shar

eho

lder

s Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

Nil

Cat

ego

ry1

Alte

ratio

n in

Mem

oran

dum

of

Ass

ocia

tion

of t

he c

ompa

ny c

onta

inin

g M

ain,

Anc

illar

y an

d O

ther

obj

ects

of

the

com

pany

2 Re

ceiv

e, c

onsi

der

and

adop

t th

e A

udite

d Ba

lanc

e Sh

eet

as a

t ye

ar e

nd t

he P

rofi t

and

Los

s A

ccou

nt f

or t

he y

ear

ende

d on

tha

t da

te a

nd t

he R

epor

ts o

f th

e D

irect

ors

and

the

Aud

itors

the

reon

3 D

ecla

ratio

n of

div

iden

d on

Ord

inar

y (E

quity

) Sha

res

and

/ or

Pref

eren

ce s

hare

s4

App

oint

men

t, R

e-ap

poin

tmen

t an

d Re

mov

al o

f D

irect

ors

/ Add

ition

al D

irect

ors

5 A

ppoi

ntm

ent,

Re-

appo

intm

ent

and

Rem

oval

of

Aud

itors

6 St

ock

Opt

ion

plan

s an

d ot

her

man

agem

ent

com

pens

atio

n m

atte

rs7

Rest

ruct

urin

g of

Sha

re c

apita

l (in

clud

ing

stoc

k sp

lits,

con

solid

atio

n, r

educ

tion,

etc

. of

shar

e ca

pita

l)8

Cha

nges

in c

apita

l str

uctu

re in

clud

ing

incr

ease

s an

d de

crea

ses

of E

quity

& p

refe

rred

sto

ck /

war

rant

issu

ance

s9

Cor

pora

te r

estr

uctu

ring

mat

ters

(inc

ludi

ng m

erge

rs, a

cqui

sitio

ns, t

akeo

vers

, sel

l-off

s, t

rans

fer

of c

ontr

ol, c

hang

es in

sta

te o

f in

corp

orat

ion,

Del

isitn

g)

HSBC BRAZIL FUND#




HSBC DYNAMIC FUND

HSBC Dynamic FundAn open-ended Scheme


1

HSBC DYNAMIC FUND

Dear Investor,







Market Outlook:





2

HSBC DYNAMIC FUND





Yours sincerely,

Puneet Chaddha



3

HSBC DYNAMIC FUND














4

HSBC DYNAMIC FUND





HSBC Dynamic Fund (HDF) - an open-ended Scheme

HDF seeks to provide long term capital appreciation by allocating funds in equity and equity related instruments. It also has the fl exibility to move, entirely if required, into debt instruments in times that the view on equity markets seems negative.

The net assets of HDF amounted to Rs. 132.97 crores as at March 31, 2013 compared to Rs. 75.61 crores as at March 31, 2012. Around 95.35% of the net assets were invested in equities. Around 5.98% was invested in reverse repos/CBLO and (-1.33%) were in net current assets as at March 31, 2013.

HDF has underperformed its benchmark over the period 2012-13 due to the stock selection factor. The scheme allocates dynamically across equity and debt oriented securities.

Date of Inception : 24 September, 2007 Absolute (%) Compounded Annualized (%)




Since Inception

HSBC Dynamic Fund - Growth 1.59 -8.24 8.77 -0.65



Rs. 10,000, if invested in HDF - Growth, would have become

10,159 9,176 10,877 9,648


10,693 9087 11,027 11,303


10,541 9045 10,727 10,889



EQUITY OUTLOOK



NIFTY 7.31

Sensex 8.23

S&P BSE 100 6.84

S&P BSE 200 6.03

S&P BSE 500 4.81

CNX Midcap -4.02

Source: Bloomberg

5

HSBC DYNAMIC FUND








DEBT OUTLOOK











6

HSBC DYNAMIC FUND















7

HSBC DYNAMIC FUND




Amount (Rs.)

No. of Investors

Amount (Rs.)

No. of Investors

HSBC Dynamic Fund – – 3,182,136.75 80





Com-plaintCode

Type of complaint#


beginningof theyear


receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 3 3 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


2 40 22 18 2 0 0 0 0 0 0


0 2 1 1 0 0 0 0 0 0 0


0 9 9 0 0 0 0 0 0 0 0


0 6 5 0 0 0 0 1 0 0 0


0 277 277 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0

8

HSBC DYNAMIC FUND


Com-plaintCode

Type of complaint#


beginningof theyear


receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 18 18 0 0 0 0 0 0 0 0

IV Others 0 14 12 1 1 0 0 0 0 0 0

Total 2 369 347 20 3 0 0 1 0 0 0

Note:









Sd/-

Dilip J. Thakkar

Trustee

MUMBAIJuly 16, 2013

9

HSBC DYNAMIC FUND


HSBC Mutual Fund

Report on the Financial Statements1. We have audited the accompanying fi nancial statements of HSBC Mutual Fund - HSBC Dynamic Fund

(the “Scheme”), which comprise the Balance Sheet as at March 31, 2013, and the related Revenue Account for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.














10

HSBC DYNAMIC FUND


(b) In our opinion, the Balance Sheet and Revenue Account, dealt with by this report have been prepared in accordance with the accounting policies and standards specifi ed in the Ninth Schedule of the Regulations.

8. As required by clause 5 (ii)(2) of the Eleventh Schedule to the Regulations, we report that the Balance Sheet and Revenue Account, dealt with by this Report are in agreement with the books of account of the Scheme.


Sd/-



11

HSBC DYNAMIC FUND

Rs. in Lakhs

HSBC DYNAMIC FUNDAs at

March 31, 2013As at

March 31, 2012

LIABILITIES .

1 Unit Capital 13,582.76 7,872.472 Reserves & Surplus2.1 Unit Premium Reserves (8,972.94) (5,605.95)2.2 Unrealised Appreciation Reserve 1,364.34 1,582.822.3 Other Reserves 7,323.18 3,711.463 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 217.84 225.05

TOTAL 13,515.18 7,785.85

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares 12,678.49 6,972.341.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – –1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –

Total Investments 12,678.49 6,972.342 Deposits – –3 Other Current Assets3.1 Cash & Bank Balance 2.06 8.313.2 CBLO/Reverse Repo Lending 795.72 788.393.3 Others 38.91 16.814 Deferred Revenue Expenditure – –


TOTAL 13,515.18 7,785.85



12

HSBC DYNAMIC FUND


Rs. in Lakhs

HSBC DYNAMIC FUNDCurrent


Previous Year ended

March 31, 2012


investments399.99 976.01

1.6 Realised Gains / (Losses) on Derivative Transactions – (96.19)1.7 Other Income 21.42 –

(A) 757.10 1,050.09

2 EXPENSES2.1 Management fees 151.36 114.062.2 Service tax on Management fees 18.71 11.752.3 Transfer agents fees and expenses 18.53 16.182.4 Custodian fees 4.26 4.852.5 Trusteeship fees 0.03 0.142.6 Commission to Agents * – –2.7 Marketing & Distribution expenses 99.49 73.972.8 Audit fees 1.88 0.822.9 Investor Education Expenses 1.44 –2.10 Other operating expenses 18.08 6.832.11 Less : Expenses to be Reimbursed by the Investment Manager (1.79) –

(B) 311.99 228.60


4 Change in Unrealised Depreciation invalue of investments and derivatives (D) – –

5 NET GAINS / (LOSSES) FOR THE YEAR [E = (C - D)] 445.11 821.49

6 Change in Unrealised appreciation inthe value of investments and derivatives (F) (218.49) (1,710.34)

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 226.62 (888.85)7.1 Add: Balance transfer from Unrealised Appreciation Reserve 218.49 1,710.347.2 Less: Balance transfer to Unrealised Appreciation Reserve – –7.3 Add / (Less): Equalisation 3,166.61 (1,407.19)7.4 Transfer from Reserve Fund 3,711.46 4,297.16


8 TOTAL 7,323.18 3,711.46

9 Dividend appropriation9.1 Income Distributed during the year – –9.2 Tax on income distributed during the year – –

10 Retained Surplus / (Defi cit) carried forward to Balance sheet 7,323.18 3,711.46



13

HSBC DYNAMIC FUND


HSBC DYNAMIC FUND Current


Previous Year ended

March 31, 2012


Open





High





Low





End5






End 13,297 7,561

Average (AAuM)1 11,837 9,156


4. Expense Ratio:













14

HSBC DYNAMIC FUND

HSBC DYNAMIC FUND Current


Previous Year ended

March 31, 2012


Retail



Corporate



8. Returns (%):

a. Last One Year

Scheme





Benchmark

S&P BSE 200 8.2600 (8.7974)

b. Since Inception

Scheme





Benchmark

S&P BSE 200 1.8300 0.9158




15

HSBC DYNAMIC FUND


HSBC DYNAMIC FUND

1 Investments:

1.1 It is confi rmed that investments of the schemes are registered in the name of the Trustees for the benefi t of the Scheme’s unitholders.

1.2 Open Positions of derivatives amount is Nil as of year ended March 31, 2013. Open Positions of derivatives amount is Nil as of year ended March 31, 2012.

1.3 Investments in Associates and Group Companies :(Rupees)



by all schemes


by all schemes

2013 2012


Fixed deposits

– – – 32,000,000

1.4 Open position of Securities Borrowed and / or Lent by the Scheme as of the years ended March 31, 2013 and March 31, 2012 are NIL.


1.6 Aggregate Unrealised Gain / Loss as at the end of the Financial year and percentage to net assets:



2013 2012

Equity Shares

– Appreciation 188,393,378 14.1678% 174,581,944 23.0904%

– Depreciation 51,959,733 3.9075% 16,299,640 2.1558%


The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2011-2012 (excluding accretion of discount) is Rs. 160,399,094 and Rs. 352,658,547 respectively being 17.52% and 38.52% of the average daily net assets.

1.8 Non-Traded securities in the portfolio of the Scheme as of the years ended March 31, 2013 and March 31, 2012 are NIL


During the year 2012-2013, The Hongkong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid clearing member charges on derivative transactions amounting to Rs. Nil.

During the year 2011-2012, The Hongkong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid clearing member charges on derivative transactions amounting to Rs. 151, 204.

16

HSBC DYNAMIC FUND





Relation

Period Covered


% of Total Business




Fund


Associate 2012-2013 88.26 66.89 7,561,694 45.39


Associate 2012-2013 – – 9,372 0.06



Relation

Period Covered


% of Total Business




Fund


Associate 2011-2012 0.45 13.97 651,168 9.58


Associate 2011-2012 0.04 1.28 14,207 0.21




relation

Period Covered


[Rs. in Crores]

% of total value of




fund


Sponsor 2012-2013 12.84 0.23 202,536 9.49



relation

Period Covered


[Rs. in Crores]

% of total value of




fund


Sponsor 2011-2012 24.22 11.35 154,045 10.17




17

HSBC DYNAMIC FUND



Description

2012-2013


(Rs.)


51,881,376.863 71,278,095.980 43,552,476.897 79,606,995.946 10


26,843,351.580 60,334,667.352 30,965,926.737 56,212,092.195 10


– 6,205.078 – 6,205.078 10


– 2,270.830 – 2,270.830 10

Description

2011-2012


(Rs.)


70,355,632.367 1,564,934.975 20,039,190.479 51,881,376.863 10


39,207,436.989 441,851.096 12,805,936.505 26,843,351.580 10


6 No contingent liabilities for the years ended March 31, 2013 and March 31, 2012


8 Other income of Rs. 2,141,873 (2012: NIL) represents Exit load (net of service tax) credited to the Scheme and provision for expenses written back since no longer required.




18

HSBC DYNAMIC FUND

















19

HSBC DYNAMIC FUND
















20

HSBC DYNAMIC FUND

Det

ails

of t

he P

roxy

Vot

es e

xerc

ised

in G

ener

al M

eetin

gs o

f the

Lis

ted

Com

pani

es fo

r the

fi na

ncia

l yea

r end

ed 2

012-

13M

anag

emen

t Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

05-A

pr-2

012

CRI

SIL

Ltd.

Oth

er M

eetin

g�

For

Abs

tain

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

��

�Fo

rFo

r

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

For

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

20-A

pr-2

012

FAG

Bea

rings

Ltd

.A

nnua

l Gen

eral

Mee

ting

��

��

�Fo

rA

bsta

in

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

Abs

tain

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

For

26-N

ov-2

012

Indo

Tech

Tra

nsfo

rmer

s Lt

d.O

ther

Mee

ting

�Fo

rFo

r

Shar

eho

lder

s Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

Nil

Cat

ego

ry1

Alte

ratio

n in

Mem

oran

dum

of

Ass

ocia

tion

of t

he c

ompa

ny c

onta

inin

g M

ain,

Anc

illar

y an

d O

ther

obj

ects

of

the

com

pany

2 Re

ceiv

e, c

onsi

der

and

adop

t th

e A

udite

d Ba

lanc

e Sh

eet

as a

t ye

ar e

nd t

he P

rofi t

and

Los

s A

ccou

nt f

or t

he y

ear

ende

d on

tha

t da

te a

nd t

he R

epor

ts o

f th

e D

irect

ors

and

the

Aud

itors

the

reon

3 D

ecla

ratio

n of

div

iden

d on

Ord

inar

y (E

quity

) Sha

res

and

/ or

Pref

eren

ce s

hare

s4

App

oint

men

t, R

e-ap

poin

tmen

t an

d Re

mov

al o

f D

irect

ors

/ Add

ition

al D

irect

ors

5 A

ppoi

ntm

ent,

Re-

appo

intm

ent

and

Rem

oval

of

Aud

itors

6 St

ock

Opt

ion

plan

s an

d ot

her

man

agem

ent

com

pens

atio

n m

atte

rs7

Rest

ruct

urin

g of

Sha

re c

apita

l (in

clud

ing

stoc

k sp

lits,

con

solid

atio

n, r

educ

tion,

etc

. of

shar

e ca

pita

l)8

Cha

nges

in c

apita

l str

uctu

re in

clud

ing

incr

ease

s an

d de

crea

ses

of E

quity

& p

refe

rred

sto

ck /

war

rant

issu

ance

s9

Cor

pora

te r

estr

uctu

ring

mat

ters

(inc

ludi

ng m

erge

rs, a

cqui

sitio

ns, t

akeo

vers

, sel

l-off

s, t

rans

fer

of c

ontr

ol, c

hang

es in

sta

te o

f in

corp

orat

ion,

Del

isitn

g)




HSBC DYNAMIC FUND

HSBC TAX SAVER EQUITY FUND

HSBC Tax Saver Equity FundAn open-ended Equity Linked Savings Scheme


1


Dear Investor,







Market Outlook:





2






Yours sincerely,

Puneet Chaddha



3















4






HSBC Tax Saver Equity Fund (HTSF) - an open ended Equity linked Savings Scheme

HTSF seeks to provide long term capital appreciation by investing in a diversifi ed portfolio of equity & equity related instruments of companies across various sectors and industries, with no capitalisation bias. The Fund may also invest in fi xed income securities.

The net assets of HTSF amounted to Rs. 183.75 crores as at March 31, 2013 compared to Rs.208.31 crores as at March 31, 2012. Around 97.40 % of the net assets were invested in equities, 0.70% of the net assets were invested in reverse repos/CBLO and 1.90% was in the net current assets as at March 31, 2013.

HTSF outperformed most of the time frames especially during the period 2012-13 against its benchmark on account of reasonable stock selection and the approach of creating a stable and quality portfolio which can do well in different market conditions.

Date of Inception : 05 January, 2007 Absolute (%) Compounded Annualized (%)




Since Inception

HSBC Tax Saver Equity Fund - Growth 11.90 -4.42 4.41 7.00



Rs. 10,000, if invested in HTSF - Growth, would have become

11,190 9,558 10,441 15,263


10,693 9087 11,027 13,995


10,541 9045 10,727 13,556



EQUITY OUTLOOK



NIFTY 7.31

Sensex 8.23

S&P BSE 100 6.84

S&P BSE 200 6.03

S&P BSE 500 4.81

CNX Midcap -4.02

Source: Bloomberg

5









DEBT OUTLOOK











6
















7





Amount (Rs.)

No. of Investors

Amount (Rs.)

No. of Investors

HSBC Tax Saver Equity Fund 617,121.85 489 2,126,365.75 124





Com-plaintCode

Type of complaint#


beginningof theyear


receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 3 3 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


2 40 22 18 2 0 0 0 0 0 0


0 2 1 1 0 0 0 0 0 0 0


0 9 9 0 0 0 0 0 0 0 0


0 6 5 0 0 0 0 1 0 0 0


0 277 277 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0

8



Com-plaintCode

Type of complaint#


beginningof theyear


receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 18 18 0 0 0 0 0 0 0 0

IV Others 0 14 12 1 1 0 0 0 0 0 0

Total 2 369 347 20 3 0 0 1 0 0 0

Note:









Sd/-

Dilip J. Thakkar

Trustee

MUMBAIJuly 16, 2013

9



HSBC Mutual Fund

Report on the Financial Statements1. We have audited the accompanying fi nancial statements of HSBC Mutual Fund - HSBC Tax Saver Equity















10





9. In our opinion, the methods used to value non-traded securities as at March 31, 2013, as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds as mentioned in the Eighth Schedule of the Regulations issued by the Securities and Exchange Board of India, are fair and reasonable.


Sd/-



11


Rs. in Lakhs

HSBC TAX SAVER EQUITY FUNDAs at

March 31, 2013As at

March 31, 2012

LIABILITIES1 Unit Capital 12,071.17 15,385.192 Reserves & Surplus2.1 Unit Premium Reserves (2,331.86) (1,855.73)2.2 Unrealised Appreciation Reserve 2,778.22 3,346.482.3 Other Reserves 5,857.41 3,956.173 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income/Deposits – –4.2 Other Current Liabilities & Provisions 566.01 155.25

TOTAL 18,940.95 20,987.36

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares 17,734.08 20,413.411.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares 163.18 12.421.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – –1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –

Total Investments 17,897.26 20,425.832 Deposits – –3 Other Current Assets3.1 Cash & Bank Balance 152.81 24.283.2 CBLO/Reverse Repo Lending 129.02 160.853.3 Others 761.86 376.404 Deferred Revenue Expenditure – –


TOTAL 18,940.95 20,987.36



12



Rs. in Lakhs

HSBC TAX SAVER EQUITY FUNDCurrent


Previous Year ended

March 31, 2012


investments3,220.47 (222.33)

1.6 Realised Gains / (Losses) on Derivative Transactions – –1.7 Other Income – –

(A) 3,523.66 169.71


(B) 510.76 510.95

3 NET REALISED GAINS / (LOSSES) FORTHE YEAR (A - B = C) 3,012.90 (341.24)

4 Change in Unrealised Depreciation in value ofinvestments and Derivatives (D) – –

5 NET SURPLUS / (DEFICIT) FOR THE YEAR [E = (C - D)] 3,012.90 341.24

6 Change in Unrealised appreciation in the valueof investments (F) (568.26) (784.06)

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 2,444.64 (1,125.30)

7.1 Add: Balance transfer from Unrealised Appreciation Reserve 568.26 784.067.2 Less: Balance transfer to Unrealised Appreciation Reserve – –7.3 Add / (Less): Equalisation (1,111.66) (586.28)7.4 Transfer from Reserve Fund 3,956.17 4,883.697.5 Transfer from Unit Premium Reserve – –

8 TOTAL 5,857.41 3,956.17

9 Dividend Appropriation9.1 Income Distributed during the year – –9.2 Tax on income distributed during the year – –

10 Retained Surplus / (Defi cit) carried forwardto Balance Sheet 5,857.41 3,956.17



13



HSBC TAX SAVER EQUITY FUND Current


Previous Year ended

March 31, 2012


Open





High





Low





End 5






End 18,375 20,832

Average (AAuM)1 20,057 21,632


4. Expense Ratio:












14


HSBC TAX SAVER EQUITY FUND Current


Previous Year ended

March 31, 2012



Retail


Direct Plan - Dividend Option – N.A.

Corporate



8. Returns (%):

a. Last One Year

Scheme

Growth Option 12.9387 (3.7100)

Dividend Option 12.9386 (3.7100)



Benchmark

S&P BSE 200 14.8100 (8.7974)

b. Since Inception

Scheme





Benchmark

S&P BSE 200 5.2500 5.0962

1 AAuM = Average daily net assets2 Gross income = amount against (A) in the Revenue account i.e. Income3 Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the year4 Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year5 The net asset value disclosed represents the computed NAV on March 31, 2013 (non-business day),



15



HSBC TAX SAVER EQUITY FUND1 Investments:



1.3 Investments in Associates and Group Companies are as under :(Rupees)



by all schemes


by all schemes

2013 2012


Fixed deposits

– – – 32,000,000

1.4 Open position of Securities Borrowed and / or Lent by the Scheme as of the years ended 31 March, 2013 and March 31, 2012 are NIL.


1.6 Aggregate Unrealised Gain / Loss as at the end of the Financial year and their percentages to net assets are as under:



2013 2012

Equity Shares

– Appreciation 377,882,008 20.5651% 388,369,529 18.6428%

– Depreciation 100,060,423 5.4455% 53,721,498 2.5788%

1.7 The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2012-2013 (excluding accretion of discount) is Rs. 1,437,347,379 and Rs. 1,937,849,379 respectively being 71.66% and 96.62% of the average daily net assets.

The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2011-2012 (excluding accretion of discount) is Rs. 812,887,629 and Rs. 1,114,926,847 respectively being 37.58% and 51.54% of the average daily net assets.

1.8 Non -Traded securities in the portfolio:

Aggregate Value of Equity, Debt & Money Market Instruments and percentages to net assets are as under :

Security Category

Fair Value (Rs.) Percentage to Net Assets

Fair Value (Rs.) Percentage to Net Assets

2013 2012

Equities 16,318,384 0.89% 1,241,545 0.06%

Total 16,318,384 0.89% 1,241,545 0.06%


During the year 2012-2013, The Hongkong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid collection/bank charges amounting to Nil.

16


During the year 2011-2012, The Hongkong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid collection/bank charges amounting to Nil.





Relation

Period Covered


% of Total Business




Fund


Associate 2012-2013 0.39 5.78 315,743 2.24


Associate 2012-2013 0.00~ 0.06 41,681 0.30



Relation

Period Covered


% of Total Business




Fund


Associate 2011-2012 0.27 3.36 431,938 2.63


Associate 2011-2012 0.02 0.22 46,196 0.28




relation

Period Covered


[Rs. in Crores]

% of total value of


Brokerage paid [Rs. ]


fund


Sponsor 2012-2013 7.62 0.52 128,505 2.50



relation

Period Covered


[Rs. in Crores]

% of total value of




fund


Sponsor 2011-2012 4.83 2.51 96,796 2.53



17






Description2012-2013

Opening Units Subscription Redemption Closing UnitsFace Value

per unit (Rs.)

Growth Option

96,224,714.815 2,078,076.366 21,911,854.130 76,390,937.051 10

Dividend Option

57,627,155.322 938,436.664 14,396,819.759 44,168,772.227 10


– 113,998.957 – 113,998.957 10


– 37,948.627 – 37,948.627 10



per Unit (Rs.)

Growth Option

108,597,937.100 3,190,612.188 15,563,834.473 96,224,714.815 10

Dividend Option

66,760,661.908 1,254,806.477 10,388,313.063 57,627,155.322 10







18


















19

















20


Det

ails

of t

he P

roxy

Vot

es e

xerc

ised

in G

ener

al M

eetin

gs o

f the

Lis

ted

Com

pani

es fo

r the

fi na

ncia

l yea

r end

ed 2

012-

13M

anag

emen

t Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

05-A

pr-2

012

CRI

SIL

Ltd.

Oth

er M

eetin

g�

For

Abs

tain

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

��

�Fo

rFo

r

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

For

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

20-A

pr-2

012

FAG

Bea

rings

Ltd

.A

nnua

l Gen

eral

Mee

ting

��

��

�Fo

rA

bsta

in

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

Abs

tain

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

For

26-N

ov-2

012

Indo

Tech

Tra

nsfo

rmer

s Lt

d.O

ther

Mee

ting

�Fo

rFo

r

Shar

eho

lder

s Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

Nil

Cat

ego

ry1

Alte

ratio

n in

Mem

oran

dum

of

Ass

ocia

tion

of t

he c

ompa

ny c

onta

inin

g M

ain,

Anc

illar

y an

d O

ther

obj

ects

of

the

com

pany

2 Re

ceiv

e, c

onsi

der

and

adop

t th

e A

udite

d Ba

lanc

e Sh

eet

as a

t ye

ar e

nd t

he P

rofi t

and

Los

s A

ccou

nt f

or t

he y

ear

ende

d on

tha

t da

te a

nd t

he R

epor

ts o

f th

e D

irect

ors

and

the

Aud

itors

the

reon

3 D

ecla

ratio

n of

div

iden

d on

Ord

inar

y (E

quity

) Sha

res

and

/ or

Pref

eren

ce s

hare

s4

App

oint

men

t, R

e-ap

poin

tmen

t an

d Re

mov

al o

f D

irect

ors

/ Add

ition

al D

irect

ors

5 A

ppoi

ntm

ent,

Re-

appo

intm

ent

and

Rem

oval

of

Aud

itors

6 St

ock

Opt

ion

plan

s an

d ot

her

man

agem

ent

com

pens

atio

n m

atte

rs7

Rest

ruct

urin

g of

Sha

re c

apita

l (in

clud

ing

stoc

k sp

lits,

con

solid

atio

n, r

educ

tion,

etc

. of

shar

e ca

pita

l)8

Cha

nges

in c

apita

l str

uctu

re in

clud

ing

incr

ease

s an

d de

crea

ses

of E

quity

& p

refe

rred

sto

ck /

war

rant

issu

ance

s9

Cor

pora

te r

estr

uctu

ring

mat

ters

(inc

ludi

ng m

erge

rs, a

cqui

sitio

ns, t

akeo

vers

, sel

l-off

s, t

rans

fer

of c

ontr

ol, c

hang

es in

sta

te o

f in

corp

orat

ion,

Del

isitn

g)

HSBC INDIA OPPORTUNITIES FUND

HSBC India Opportunities FundAn open-ended Flexi-cap Equity Scheme


1


Dear Investor,







Market Outlook:





2






Yours sincerely,

Puneet Chaddha



3















4






HSBC India Opportunities Fund (HIOF) - an open-ended fl exi-cap Equity Scheme

HIOF seeks long term capital growth through investments across all market capitalisations, including small, mid and large cap stocks. It aims to be predominantly invested in equity and equity related securities. However, it could move a signifi cant portion of its assets towards fi xed income securities if the fund manager becomes negative on equity markets.

The net assets of HIOF amounted to Rs. 212.79 crores as at March 31, 2013 as compared to Rs. 179.69 crores as at March 31, 2012. Around 97.73% of the net assets were invested in equities, 2.93 % of the net assets were invested in reverse repos/CBLO and (-0.66%) were in the net current assets as at March 31, 2013.

HIOF outperformed its benchmark since inception. The lagged performance during the year 2012-13 was due to overweight in Finance and IT sectors. Both sector and stock specifi c factors in these two sectors led to the underperformance during this period.

Date of Inception : 24 February, 2004 Absolute (%) Compounded Annualized (%)




Since Inception

HSBC India Opportunities Fund - Growth 0.21 -3.60 11.00 14.45



Rs. 10,000, if invested in HIOF - Growth, would have become

10,021 9,640 11,100 34,233


10,693 9087 11,027 30,608


10,414 9053 10,655 31,023


b) Market Overview & OutlookEQUITY OUTLOOK



NIFTY 7.31

Sensex 8.23

S&P BSE 100 6.84

S&P BSE 200 6.03

S&P BSE 500 4.81

CNX Midcap -4.02

Source: Bloomberg

5









DEBT OUTLOOK











6
















7





Amount (Rs.)

No. of Investors

Amount (Rs.)

No. of Investors

HSBC India Opportunities Fund 1,026,412.19 387 1,377,717.79 54





Com-plaintCode

Type of complaint#


beginningof theyear


receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 3 3 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


2 40 22 18 2 0 0 0 0 0 0


0 2 1 1 0 0 0 0 0 0 0


0 9 9 0 0 0 0 0 0 0 0


0 6 5 0 0 0 0 1 0 0 0


0 277 277 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0

8



Com-plaintCode

Type of complaint#


beginningof theyear


receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 18 18 0 0 0 0 0 0 0 0

IV Others 0 14 12 1 1 0 0 0 0 0 0

Total 2 369 347 20 3 0 0 1 0 0 0

Note:









Sd/-

Dilip J. Thakkar

Trustee

MUMBAIJuly 16, 2013

9



HSBC Mutual Fund

Report on the Financial Statements1. We have audited the accompanying fi nancial statements of HSBC Mutual Fund - HSBC India Opportunities















10





Sd/-




11


Rs. in Lakhs

HSBC INDIA OPPORTUNITIES FUNDAs at

March 31, 2013As at

March 31, 2012

LIABILITIES1 Unit Capital 10,471.13 8,476.902 Reserves & Surplus2.1 Unit Premium Reserves (12,772.78) (10,802.48)2.2 Unrealised Appreciation Reserve 2,543.41 3,663.352.3 Other Reserves 21,028.03 16,631.603 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 184.68 320.82

TOTAL 21,454.47 18,290.19

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares 20,787.04 16,277.141.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – –1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –


2 Deposits – –3 Other Current Assets3.1 Cash & Bank Balance 9.51 45.013.2 CBLO 623.99 1,873.753.3 Others 33.93 94.294 Deferred Revenue Expenditure – –


TOTAL 21,454.47 18,290.19



12



Rs. in Lakhs

HSBC INDIA OPPORTUNITIES FUNDCurrent


Previous Year ended

March 31, 2012


investments1,964.86 733.84

1.6 Realised Gains / (Losses) on Derivative Transactions – (140.37)1.7 Other Income 35.20 0.00~

(A) 2,466.43 905.552 EXPENSES2.1 Management fees 274.02 191.502.2 Service tax on Management fees 33.87 19.732.3 Transfer agents fees and expenses 37.09 29.532.4 Custodian fees 9.57 8.102.5 Trusteeship fees 0.07 0.262.6 Commission to Agents * – –2.7 Marketing & Distribution expenses 223.10 135.592.8 Audit fees 3.01 1.942.11 Investor Education Expense 2.38 –2.9 Other operating expenses 14.83 12.98

(B) 597.94 399.633 NET REALISED GAINS / (LOSSES) FOR

THE YEAR (A - B = C) 1,868.49 505.92


5 NET GAINS / (LOSSES) FOR THE YEAR [E = (C - D)] 1,868.49 505.92

6 Change in Unrealised appreciation inthe value of investments and derivatives (F) (1,119.94) (1,186.52)

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 748.55 (680.60)7.1 Add: Balance transfer from Unrealised Appreciation Reserve 1,119.94 1,186.527.2 Less: Balance transfer to Unrealised Appreciation Reserve – –7.3 Add / (Less): Equalisation 3,661.29 (196.65)7.4 Transfer from Reserve Fund 16,631.60 16,322.32


8 TOTAL 22,161.38 16,631.59

9 Dividend Appropriation9.1 Income Distributed during the year 1,133.35 –9.2 Tax on income distributed during the year – –

10 Retained Surplus / (Defi cit) carried forwardto Balance Sheet 21,028.03 16,631.59


Notes to Accounts - Annexure I* Commission to Agents is included in Marketing & Distribution expenses.

13



HSBC INDIA OPPORTUNITIES FUND Current


Previous Year ended

March 31, 2012


Open





High





Low





End5






End 21,270 17,969

Average (AAuM)1 23,720 16,652


4. Expense Ratio:













14



HSBC INDIA OPPORTUNITIES FUND Current


Previous Year ended

March 31, 2012


Retail



Corporate



8. Returns (%):

a. Last One Year

Scheme





Benchmark

S&P BSE 500 7.0700 (8.6254)

b. Since Inception

Scheme





Benchmark

S&P BSE 500 13.4100 14.5143



15



HSBC INDIA OPPORTUNITIES FUND1 Investments:



1.3 Investments in Associates and Group Companies(Rupees)



by all schemes


by all schemes

2013 2012


Fixed deposits

– – – 32,000,000

1.4 Open position of Securities Borrowed and / or Lent by the Scheme as of fi nancial years ended 2013 and 2012 are NIL.

1.5 The NPAs as on March 31, 2013 and March 31, 2012 are NIL.

1.6 Aggregate Unrealised Gain / Loss as at the end of the Financial years March 31, 2013 and March 31, 2012 are as under :



2013 2012

Equity Shares

– Appreciation 396,108,991 18.6231% 387,712,226 21.5763%

– Depreciation 141,767,777 6.6652% 21,376,931 1.1896%

1.7 The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2012-2013 (excluding accretion of discount) is Rs.1,183,106,635 and Rs. 816,609,273 respectively being 49.88% and 34.43% of the average daily net assets.

The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2011-2012 (excluding accretion of discount) is Rs. 395,689,256 and Rs. 403,268,860 respectively being 23.76% and 24.22% of the average daily net assets.

1.8 Non-Traded securities in the portfolio as on March 31, 2013 and March 31, 2012 are Nil.


During the year 2012-2013, The Hongkong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid Clearing member charges on derivative transactions amounting to Rs. Nil.

During the year 2011-2012, The Hongkong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid Clearing member charges on derivative transactions amounting to Rs. 177,657.

16






Relation

Period Covered


% of Total Business




Fund


Associate 2012-2013 130.88 61.23 170,20,740 52.49


Associate 2012-2013 0.08 0.04 37,227 0.11



Relation

Period Covered


% of Total Business




Fund


Associate 2011-2012 12.94 29.50 2,470,962 19.72


Associate 2011-2012 0.12 0.27 42,353 0.34




relation

Period Covered


[Rs. in Crores]

% of total value of




fund


Sponsor 2012-2013 2.88 0.08 44,052 1.31



relation

Period Covered


[Rs. In Crores]

% of total value of



(on accrual basis)


fund


Sponsor 2011-2012 7.64 2.86 60,955 3.01



17





Description

2012-2013



23,354,216.844 36,103,279.373 30,785,283.178 28,672,213.039 10


61,414,775.256 53,049,124.197 38,454,660.368 76,009,239.085 10


– 21,923.340 53.972 21,869.368 10


– 8,011.816 – 8,011.816 10

Description

2011 - 2012



20,748,704.841 8,087,434.087 5,481,922.084 23,354,216.844 10


68,827,625.200 8,713,618.150 16,126,468.094 61,414,775.256 10

5 Previous years fi gures have been re-grouped/re-arranged where appropriate.



8 Other income of Rs. 3,519,620 (2012: Rs.433) represents Exit load (net of service tax) credited to the Scheme and Provision for expenses written back since no longer required.




18


















19

















20


Det

ails

of t

he P

roxy

Vot

es e

xerc

ised

in G

ener

al M

eetin

gs o

f the

Lis

ted

Com

pani

es fo

r the

fi na

ncia

l yea

r end

ed 2

012-

13M

anag

emen

t Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

05-A

pr-2

012

CRI

SIL

Ltd.

Oth

er M

eetin

g�

For

Abs

tain

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

��

�Fo

rFo

r

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

For

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

20-A

pr-2

012

FAG

Bea

rings

Ltd

.A

nnua

l Gen

eral

Mee

ting

��

��

�Fo

rA

bsta

in

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

Abs

tain

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

For

26-N

ov-2

012

Indo

Tech

Tra

nsfo

rmer

s Lt

d.O

ther

Mee

ting

�Fo

rFo

r

Shar

eho

lder

s Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

Nil

Cat

ego

ry1

Alte

ratio

n in

Mem

oran

dum

of

Ass

ocia

tion

of t

he c

ompa

ny c

onta

inin

g M

ain,

Anc

illar

y an

d O

ther

obj

ects

of

the

com

pany

2 Re

ceiv

e, c

onsi

der

and

adop

t th

e A

udite

d Ba

lanc

e Sh

eet

as a

t ye

ar e

nd t

he P

rofi t

and

Los

s A

ccou

nt f

or t

he y

ear

ende

d on

tha

t da

te a

nd t

he R

epor

ts o

f th

e D

irect

ors

and

the

Aud

itors

the

reon

3 D

ecla

ratio

n of

div

iden

d on

Ord

inar

y (E

quity

) Sha

res

and

/ or

Pref

eren

ce s

hare

s4

App

oint

men

t, R

e-ap

poin

tmen

t an

d Re

mov

al o

f D

irect

ors

/ Add

ition

al D

irect

ors

5 A

ppoi

ntm

ent,

Re-

appo

intm

ent

and

Rem

oval

of

Aud

itors

6 St

ock

Opt

ion

plan

s an

d ot

her

man

agem

ent

com

pens

atio

n m

atte

rs7

Rest

ruct

urin

g of

Sha

re c

apita

l (in

clud

ing

stoc

k sp

lits,

con

solid

atio

n, r

educ

tion,

etc

. of

shar

e ca

pita

l)8

Cha

nges

in c

apita

l str

uctu

re in

clud

ing

incr

ease

s an

d de

crea

ses

of E

quity

& p

refe

rred

sto

ck /

war

rant

issu

ance

s9

Cor

pora

te r

estr

uctu

ring

mat

ters

(inc

ludi

ng m

erge

rs, a

cqui

sitio

ns, t

akeo

vers

, sel

l-off

s, t

rans

fer

of c

ontr

ol, c

hang

es in

sta

te o

f in

corp

orat

ion,

Del

isitn

g)

HSBC MIDCAP EQUITY FUND

HSBC Midcap Equity FundAn open-ended Diversifi ed Equity Scheme


1


Dear Investor,







Market Outlook:





2






Yours sincerely,

Puneet Chaddha



3















4






HSBC Midcap Equity Fund (HMEF) - an open-ended diversifi ed Equity Scheme

HMEF seeks to generate long term capital growth from an actively managed portfolio of equity and equity related securities primarily being midcap stocks. However, it could move a portion of its assets towards fi xed income securities if the fund manager becomes negative on the Indian equity markets.

The net assets of HMEF amounted to Rs. 82.29 crores as at March 31, 2013 as compared to Rs. 109.54 crores as at March 31, 2012. Around 99.54 % of the net assets were invested in equities, 0.71% of the net assets were invested in reverse repos/CBLO and (-0.26 %) were in the net current assets as at March 31, 2013.

HMEF being relatively in lower market cap companies has under-performed against its benchmark. During the year 2012-13, the mid-small cap side of the market has seen weak sentiments, margin funding and related issues. HMEF was underweight in expensive sectors like Consumer and Pharma stocks during the period which had performed well.

Date of Inception : 19 May, 2005 Absolute (%) Compounded Annualized (%)




Since Inception

HSBC Midcap Equity Fund - Growth -8.82 -8.51 -10.38 7.17


S&P BSE MID CAP (Scheme Benchmark) -4.30 -9.14 0.11 8.43

Rs. 10,000, if invested in HMEF - Growth, would have become

9,118 9,149 8,962 17,263


10,693 9087 11,027 28,002

Rs. 10,000, if invested in S&P BSE MID CAP, would have become

9,570 9086 10,011 18,919



EQUITY OUTLOOK



NIFTY 7.31

Sensex 8.23

S&P BSE 100 6.84

S&P BSE 200 6.03

S&P BSE 500 4.81

CNX Midcap -4.02

Source: Bloomberg

5









DEBT OUTLOOK











6
















7





Amount (Rs.)

No. of Investors

Amount (Rs.)

No. of Investors

HSBC Midcap Equity Fund 716,392.34 392 68,292.99 3





Com-plaintCode

Type of complaint#


beginningof theyear


receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 3 3 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


2 40 22 18 2 0 0 0 0 0 0


0 2 1 1 0 0 0 0 0 0 0


0 9 9 0 0 0 0 0 0 0 0


0 6 5 0 0 0 0 1 0 0 0


0 277 277 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0

8



Com-plaintCode

Type of complaint#


beginningof theyear


receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 18 18 0 0 0 0 0 0 0 0

IV Others 0 14 12 1 1 0 0 0 0 0 0Total 2 369 347 20 3 0 0 1 0 0 0

Note:









Sd/-

Dilip J. Thakkar

Trustee

MUMBAIJuly 16, 2013

9



HSBC Mutual Fund

Report on the Financial Statements1. We have audited the accompanying fi nancial statements of HSBC Mutual Fund - HSBC Midcap Equity















10






Sd/-



11


Rs. in Lakhs

HSBC MIDCAP EQUITY FUNDAs at

March 31, 2013As at

March 31, 2012

LIABILITIES1 Unit Capital 6,497.06 8,062.452 Reserves & Surplus2.1 Unit Premium Reserves (2,909.89) (3,618.75)2.2 Unrealised Appreciation Reserve – –2.3 Other Reserves 4,642.23 6,510.803 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 129.33 122.24

TOTAL 8,358.73 11,076.74

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares 8,192.24 10,841.501.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – 9.511.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – –1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –



TOTAL 8,358.73 11,076.74



12



Rs. in Lakhs

HSBC MIDCAP EQUITY FUNDCurrent


Previous Year ended

March 31, 2012


investments605.62 (2,306.00)

1.6 Realised Gains / (Losses) on Derivative Transactions – (779.73)1.7 Other Income 4.10 0.01

(A) 903.05 (2,856.06)

2 EXPENSES2.1 Management fees 144.47 142.772.2 Service tax on Management fees 17.86 14.712.3 Transfer agents fees and expenses 15.85 20.442.4 Custodian fees 4.27 6.852.5 Trusteeship fees 0.03 0.182.6 Commission to Agents * – –2.7 Marketing & Distribution expenses 82.57 95.062.8 Investor Education Expenses 1.00 1.182.9 Audit fees 1.17 –2.10 Other operating expenses 6.30 9.04

(B) 273.52 290.23

3 NET REALISED GAINS / (LOSSES) FORTHE YEAR (A - B = C) 629.53 (3,146.29)

4 Change in Unrealised Depreciation invalue of investments and derivatives (D) (1,216.06) (2,195.33)

5 NET GAINS / (LOSSES) FOR THE YEAR [E = (C - D)] (586.53) (950.96)

6 Change in Unrealised appreciationin the value of investments and derivatives (F) – –

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) (586.53) (950.96)7.1 Add: Balance transfer from Unrealised Appreciation Reserve – –7.2 Less: Balance transfer to Unrealised Appreciation Reserve – –7.3 Add / (Less): Equalisation (1,282.04) (1,092.00)



8 TOTAL 4,642.23 6,510.80


10 Retained Surplus / (Defi cit) carried forward toBalance Sheet 4,642.23 6,510.80



13



HSBC MIDCAP EQUITY FUND Current


Previous Year ended

March 31, 2012


Open





High





Low





End5






End 8,229 10,954

Average (AAuM)1 10,266 11,798


4. Expense Ratio:












14



HSBC MIDCAP EQUITY FUND Current


Previous Year ended

March 31, 2012



Retail

Regular Plan Dividend – –


Corporate

Regular Plan Dividend – –


8. Returns (%):

a. Last One Year

Scheme





Benchmark

S&P BSE MID CAP (0.7900) (7.4038)

b. Since Inception

Scheme





Benchmark

S&P BSE MID CAP 8.4400 10.2482



15



HSBC MIDCAP EQUITY FUND1 Investments:



1.3 Investments in Associates and Group Companies(Rupees)



by all schemes


by all schemes

2013 2012


Fixed deposits

– – – 32,000,000

1.4 Open positions of Securities Borrowed and / or Lent by the Scheme as of the year ended March 31, 2013 and March 31, 2012 are NIL.





2013 2012

Equity Shares

– Appreciation 75,367,764 9.1584% 129,549,230 11.8261%

– Depreciation 304,560,068 37.0088% 237,135,065 21.6473%

1.7 The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2012 - 2013 (excluding accretion of discount) is Rs. 358,966,528 and Rs. 563,798,304 respectively being 34.97% and 54.92% of the average daily net assets.

The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2011 - 2012 (excluding accretion of discount) is Rs. 540,502,573 and Rs. 668,772,769 respectively being 45.82% and 56.69% of the average daily net assets.


Aggregate Value of Equity, Debt & Money Market Instruments and percentage to net assets is as under:

Security Category

Fair Value (Rs.)


Fair Value (Rs.)


2013 2012

Equities – – 951,204 0.09%


During the year 2012-2013, The Hongkong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid clearing member charges on derivative transactions amounting to Rs. NIL.

16







Relation

Period Covered


% of Total Business




Fund


Associate 2012-2013 10.46 60.85 1,874,815 27.09


Associate 2012-2013 0.03 0.16 10,363 0.15



Relation

Period Covered


% of Total Business




Fund


Associate 2011-2012 2.72 12.28 1,503,258 17.17


Associate 2011-2012 0.01 0.06 9,967 0.11




relation

Period Covered


[Rs. in Crores]

% of total value of




fund


Sponsor 2012-2013 2.22 0.95 34,810 2.21



relation

Period Covered


[Rs. in Crores]

% of total value of



(on accrual basis)


fund


Sponsor 2011-2012 22.44 5.86 132,229 4.09


17




3 None of the Investors held more than 25% of the total net assets of the Scheme at the year ended March 31, 2013 and March 31, 2012.


Description

2012-2013


(Rs.)


35,519,574.108 5,578,599.945 11,664,760.856 29,433,413.197 10


45,104,884.583 5,166,475.725 14,773,140.837 35,498,219.471 10


– 30,411.628 – 30,411.628 10


– 8,570.423 – 8,570.423 10

Description

2011 - 2012


(Rs.)


39,190,138.993 8,790,353.465 12,460,918.350 35,519,574.108 10


58,618,059.742 4,023,776.375 17,536,951.534 45,104,884.583 10

5 Previous year’s fi gures have been re–grouped/re-arranged where appropriate.



8 Other Income of Rs. 410,045 (2012: Rs.919) represents Exit load (net of service tax) credited to the Scheme, provision for expenses written back as no longer required and IPO expenses written back.


10 The Annual Accounts of the Schemes prepared in accordance with the accounting policies and standards specifi ed in the Ninth Schedule of The Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 has been approved by the Board of Directors of HSBC Asset Management (India) Private Limited and The Board of Trustees of HSBC Mutual Fund at their meetings held on July 12, 2013 and July 16, 2013 respectively. The audit report attached herewith refers to the said Annual Accounts. The aforesaid abridged accounts are an extract of the Annual Accounts and are prepared in accordance with SEBI Circular No. IMD/Cir8/132968/2008 dated July 24, 2008..


18


















19

















20


Det

ails

of t

he P

roxy

Vot

es e

xerc

ised

in G

ener

al M

eetin

gs o

f the

Lis

ted

Com

pani

es fo

r the

fi na

ncia

l yea

r end

ed 2

012-

13M

anag

emen

t Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

05-A

pr-2

012

CRI

SIL

Ltd.

Oth

er M

eetin

g�

For

Abs

tain

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

��

�Fo

rFo

r

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

For

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

20-A

pr-2

012

FAG

Bea

rings

Ltd

.A

nnua

l Gen

eral

Mee

ting

��

��

�Fo

rA

bsta

in

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

Abs

tain

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

For

26-N

ov-2

012

Indo

Tech

Tra

nsfo

rmer

s Lt

d.O

ther

Mee

ting

�Fo

rFo

r

Shar

eho

lder

s Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

Nil

Cat

ego

ry1

Alte

ratio

n in

Mem

oran

dum

of

Ass

ocia

tion

of t

he c

ompa

ny c

onta

inin

g M

ain,

Anc

illar

y an

d O

ther

obj

ects

of

the

com

pany

2 Re

ceiv

e, c

onsi

der

and

adop

t th

e A

udite

d Ba

lanc

e Sh

eet

as a

t ye

ar e

nd t

he P

rofi t

and

Los

s A

ccou

nt f

or t

he y

ear

ende

d on

tha

t da

te a

nd t

he R

epor

ts o

f th

e D

irect

ors

and

the

Aud

itors

the

reon

3 D

ecla

ratio

n of

div

iden

d on

Ord

inar

y (E

quity

) Sha

res

and

/ or

Pref

eren

ce s

hare

s4

App

oint

men

t, R

e-ap

poin

tmen

t an

d Re

mov

al o

f D

irect

ors

/ Add

ition

al D

irect

ors

5 A

ppoi

ntm

ent,

Re-

appo

intm

ent

and

Rem

oval

of

Aud

itors

6 St

ock

Opt

ion

plan

s an

d ot

her

man

agem

ent

com

pens

atio

n m

atte

rs7

Rest

ruct

urin

g of

Sha

re c

apita

l (in

clud

ing

stoc

k sp

lits,

con

solid

atio

n, r

educ

tion,

etc

. of

shar

e ca

pita

l)8

Cha

nges

in c

apita

l str

uctu

re in

clud

ing

incr

ease

s an

d de

crea

ses

of E

quity

& p

refe

rred

sto

ck /

war

rant

issu

ance

s9

Cor

pora

te r

estr

uctu

ring

mat

ters

(inc

ludi

ng m

erge

rs, a

cqui

sitio

ns, t

akeo

vers

, sel

l-off

s, t

rans

fer

of c

ontr

ol, c

hang

es in

sta

te o

f in

corp

orat

ion,

Del

isitn

g)

HSBC UNIQUE OPPORTUNITIES FUND

HSBC Unique Opportunities FundAn open-ended Equity Scheme


1


Dear Investor,







Market Outlook:





2






Yours sincerely,

Puneet Chaddha



3















4






HSBC Unique Opportunities Fund (HUOF) - an open ended Equity Scheme

HUOF seeks to provide long-term capital growth from a diversifi ed portfolio of equity and equity related instruments. The focus would be to invest in stocks of companies facing “out-of-ordinary” conditions.

The net assets of HUOF amounted to Rs. 51.50 crores as at March 31, 2013 compared to Rs. 67.52 crores as at March 31, 2012. Around 95.96 % of the net assets were invested in equities, 4.85% of the net assets were invested in reverse repos / CBLO and (-0.81%) were in net current assets as at March 31, 2013.

HUOF is positioned towards a cyclical turn in the economy with an overweight position in materials and banks during the period 2012-13. These sectors had underperformed during this period.





Since Inception

HSBC Unique Opportunities Fund - Growth 4.82 -9.79 8.92 0.79



Rs. 10,000, if invested in HUOF - Growth, would have become

10,482 9,021 10,892 10,486


10,693 9087 11,027 14,808


10,541 9045 10,727 14,648

Returns data as on March 31, 2013. Past performance may or may not be sustained in future. ‘Since inception’ returns are calculated on Rs. 10 invested at inception. Calculations are based on Growth NAVs.


EQUITY OUTLOOK



NIFTY 7.31

Sensex 8.23

S&P BSE 100 6.84

S&P BSE 200 6.03

S&P BSE 500 4.81

CNX Midcap -4.02

Source: Bloomberg

5









DEBT OUTLOOK











6









The Trust has been formed for the purpose of pooling of capital from the public for collective investment in securities/any other property for the purpose of providing facilities for participation by persons as benefi ciaries in such propertie s/ investments and in the profi ts/income arising therefrom.







7





Amount (Rs.)

No. of Investors

Amount (Rs.)

No. of Investors

HSBC Unique Opportunities Fund – – 1,407,480.65 55





Com-plaintCode

Type of complaint#


beginningof theyear


receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 3 3 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


2 40 22 18 2 0 0 0 0 0 0


0 2 1 1 0 0 0 0 0 0 0


0 9 9 0 0 0 0 0 0 0 0


0 6 5 0 0 0 0 1 0 0 0


0 277 277 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0

8



Com-plaintCode

Type of complaint#


beginningof theyear


receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 18 18 0 0 0 0 0 0 0 0

IV Others 0 14 12 1 1 0 0 0 0 0 0

Total 2 369 347 20 3 0 0 1 0 0 0

Note:









Sd/-

Dilip J. Thakkar

Trustee

MUMBAIJuly 16, 2013

9




HSBC Mutual Fund

Report on the Financial Statements1. We have audited the accompanying fi nancial statements of HSBC Mutual Fund - HSBC Unique

Opportunities Fund, (the “Scheme”), which comprise the Balance Sheet as at March 31, 2013, and the related Revenue Account and Cash Flow Statement for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.











(c) in the case of the Cash Flow Statement of the cash fl ows for the year ended on that date.



10






Sd/-



11


Rs. in Lakhs

HSBC UNIQUE OPPORTUNITIES FUNDAs at

March 31, 2013As at

March 31, 2012

LIABILITIES1 Unit Capital 4,826.27 6,650.742 Reserves & Surplus2.1 Unit Premium Reserves (5,333.72) (7,059.85)2.2 Unrealised Appreciation Reserve 774.47 642.512.3 Other Reserves 4,883.48 6,519.093 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 59.80 67.96

TOTAL 5,210.30 6,820.45

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares 4,942.62 6,634.031.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – 5.211.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities:1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – –1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –


2 Deposits – –3 Other Current Assets3.1 Cash & Bank Balance 1.79 1.963.2 CBLO/Reverse Repo Lending 249.78 99.953.3 Others 16.11 79.304 Deferred Revenue Expenditure – –


TOTAL 5,210.30 6,820.45



12



Rs. in Lakhs

HSBC UNIQUE OPPORTUNITIES FUNDCurrent


Previous Year ended

March 31, 2012



1.6 Realised Gains / (Losses) on Derivative Transactions – (58.12)1.7 Other Income 0.89 –

(A) 421.84 107.322 EXPENSES2.1 Management fees 87.26 94.672.2 Service tax on Management fees 10.79 9.762.3 Transfer agents fees and expenses 9.62 13.462.4 Custodian fees 2.54 4.182.5 Trusteeship fees 0.02 0.122.6 Commission to Agents * – –2.7 Marketing & Distribution expenses 50.81 63.872.8 Audit fees 0.73 0.732.9 Investor Education Expenses 0.60 –2.10 Other operating expenses 3.91 5.632.11 Expenses to be Reimbursed by the Investment Manager – (3.07)

(B) 166.28 189.35

3 NET REALISED GAINS / (LOSSES) FORTHE YEAR (A - B = C) 255.56 (82.03)


5 NET GAINS / (LOSSES) FOR THE YEAR [E = (C - D)] 255.56 (82.03)

6 Change in unrealised appreciation inthe value of investments and derivatives (F) 131.97 (799.32)

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 387.53 (881.35)7.1 Add: Balance transfer from Unrealised Appreciation Reserve – 799.327.2 Less: Balance transfer to Unrealised Appreciation Reserve (131.97) –7.3 Add / (Less): Equalisation (1,891.17) 2,451.377.4 Transfer from Reserve Fund 6,519.09 4,149.757.5 Transfer from Unit Premium Reserve – –

8 TOTAL 4,883.48 6,519.09

9 Dividend Appropriation – –9.1 Income Distributed during the year – –9.2 Tax on income distributed during the year – –



* Commission to Agents is included in Marketing & Distribution expenses.

13



HSBC UNIQUE OPPORTUNITIES FUND Current


Previous Year ended

March 31, 2012


Open

Regular Plan - Growth Option 10.1530 11.2165

Regular Plan - Dividend Option 10.1530 11.2165



High





Low





End5






End 5,151 6,752



4. Expense Ratio:


Regular Plan - Growth Option 2.67% 2.50%

Regular Plan - Dividend Option 2.67% 2.50%








5. Net Income as a percentage of AAuM3 4.11% –1.08%

14


HSBC UNIQUE OPPORTUNITIES FUND Current


Previous Year ended

March 31, 2012



Retail

Regular Plan - Dividend Option – –


Corporate



8. Returns (%):

a. Last One Year

Scheme

Regular Plan - Growth Option 5.7595 (9.1000)

Regular Plan - Dividend Option 5.7595 (9.1000)



Benchmark

S&P BSE 200 8.2600 (8.7974)

b. Since Inception

Scheme





Benchmark

S&P BSE 200 6.8000 6.9446




15




1 Investments:

1.1 It is confi rmed that Investments of the Schemes are registered in the name of the Trustees for the benefi ts of the Scheme’s Unitholders.


1.3 Investments in Associates and Group Companies :(Rupees)



by all schemes


by all schemes

2013 2012


Fixed deposits

– – – 32,000,000

1.4 Open position of Securities Borrowed and / or Lent by the Scheme as of the year ended 31 March, 2013 and March 31, 2012 are NIL.


1.6 Aggregate Unrealised Gain / Loss as at the end of the Financial year and their percentages to net assets are as under:



2013 2012

Equity Shares

– Appreciation 106,022,228 20.5848% 86,124,878 12.7545%

– Depreciation 28,574,444 5.5479% 21,874,218 3.2394%




Aggregate Value of Equity, Debt & Money Market Instruments and percentage to net assets are as under:

Security Category

Fair Value (Rs.)


Fair Value (Rs.)


2013 2012

Equities – – 521,185 0.08%

16



During the year 2012-2013, The Hongkong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid clearing member charges on derivative transactions amounting to Rs. Nil.


Details of amounts paid to associates in terms of Regulation 25 (8) are as follows:




Relation

Period Covered


% of Total Business




Fund


Associate 2012 - 2013 1.72 67.68 637,405 14.52


Associate 2012 - 2013 – – 6,562 0.15



Relation

Period Covered


% of Total Business



(on accrual basis)


Fund


Associate 2011 - 2012 0.84 36.08 602,100 10.52


Associate 2011 - 2012 – – 7,543 0.13




relation

Period Covered


[Rs. in Crores]

% of total value of




fund


Sponsor 2012 - 2013 1.94 0.33 39,019 4.42



relation

Period Covered


[Rs. in Crores]

% of total value of



(on accrual basis)


fund


Sponsor 2011 - 2012 15.64 6.23 129,855 5.97



17





Description

2012 - 2013


(Rs.)


36,527,470.498 1,066,815.395 9,751,523.400 27,842,762.493 10


29,979,954.272 818,590.124 10,380,388.346 20,418,156.050 10


– 1,240.502 442.986 797.516 10


– 997.530 – 997.530 10

Description

2011 - 2012


(Rs.)


45,690,293.612 375,529.644 9,538,352.758 36,527,470.498 10


40,349,035.178 624,768.044 10,993,848.950 29,979,954.272 10




8 Other income of Rs. 88, 547 (2012: NIL) represents Exit load (net of service tax) credited to the Scheme and provision for expenses written back since no longer required.




18


















19

















20


Det

ails

of t

he P

roxy

Vot

es e

xerc

ised

in G

ener

al M

eetin

gs o

f the

Lis

ted

Com

pani

es fo

r the

fi na

ncia

l yea

r end

ed 2

012-

13M

anag

emen

t Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

05-A

pr-2

012

CRI

SIL

Ltd.

Oth

er M

eetin

g�

For

Abs

tain

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

��

�Fo

rFo

r

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

For

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

20-A

pr-2

012

FAG

Bea

rings

Ltd

.A

nnua

l Gen

eral

Mee

ting

��

��

�Fo

rA

bsta

in

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

Abs

tain

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

For

26-N

ov-2

012

Indo

Tech

Tra

nsfo

rmer

s Lt

d.O

ther

Mee

ting

�Fo

rFo

r

Shar

eho

lder

s Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

Nil

Cat

ego

ry1

Alte

ratio

n in

Mem

oran

dum

of

Ass

ocia

tion

of t

he c

ompa

ny c

onta

inin

g M

ain,

Anc

illar

y an

d O

ther

obj

ects

of

the

com

pany

2 Re

ceiv

e, c

onsi

der

and

adop

t th

e A

udite

d Ba

lanc

e Sh

eet

as a

t ye

ar e

nd t

he P

rofi t

and

Los

s A

ccou

nt f

or t

he y

ear

ende

d on

tha

t da

te a

nd t

he R

epor

ts o

f th

e D

irect

ors

and

the

Aud

itors

the

reon

3 D

ecla

ratio

n of

div

iden

d on

Ord

inar

y (E

quity

) Sha

res

and

/ or

Pref

eren

ce s

hare

s4

App

oint

men

t, R

e-ap

poin

tmen

t an

d Re

mov

al o

f D

irect

ors

/ Add

ition

al D

irect

ors

5 A

ppoi

ntm

ent,

Re-

appo

intm

ent

and

Rem

oval

of

Aud

itors

6 St

ock

Opt

ion

plan

s an

d ot

her

man

agem

ent

com

pens

atio

n m

atte

rs7

Rest

ruct

urin

g of

Sha

re c

apita

l (in

clud

ing

stoc

k sp

lits,

con

solid

atio

n, r

educ

tion,

etc

. of

shar

e ca

pita

l)8

Cha

nges

in c

apita

l str

uctu

re in

clud

ing

incr

ease

s an

d de

crea

ses

of E

quity

& p

refe

rred

sto

ck /

war

rant

issu

ance

s9

Cor

pora

te r

estr

uctu

ring

mat

ters

(inc

ludi

ng m

erge

rs, a

cqui

sitio

ns, t

akeo

vers

, sel

l-off

s, t

rans

fer

of c

ontr

ol, c

hang

es in

sta

te o

f in

corp

orat

ion,

Del

isitn

g)

HSBC SMALL CAP FUND

HSBC Small Cap FundAn open-ended Equity Scheme


1

HSBC SMALL CAP FUND

Dear Investor,







Market Outlook:





2

HSBC SMALL CAP FUND





Yours sincerely,

Puneet Chaddha



3

HSBC SMALL CAP FUND














4

HSBC SMALL CAP FUND





HSBC Small Cap Fund (HSCF) - an open ended Equity Scheme

HSCF seeks to provide long-term capital appreciation primarily from a diversifi ed portfolio of equity and equity related instruments of small cap companies.

The net assets of HSCF amounted to Rs. 13.77 crores as at March 31, 2013 compared to Rs. 20.78 crores as at March 31, 2012. Around 99.99 % of the net assets were invested in equities, 5.45% of the net assets were invested in reverse repos / CBLO and (-5.44%) were in the net current assets as at March 31, 2013.

HSCF had shown better performance across different time periods against its benchmark. Stock selection had improved the performance viz a viz its benchmark. Further, the valuation difference between large and small cap is not justifi ed and unlikely to sustain thus creating opportunities for better risk-return in mid-small cap segment





Since Inception

HSBC Small Cap Fund - Growth -6.02 -18.39 0.04 -2.47


S&P BSE Small Cap (Scheme Benchmark) -14.05 -20.74 -6.06 -3.13

Rs. 10,000, if invested in HSCF, would have become 9,398 8,161 10,004 8,819

Rs. 10,000, if invested in CNX Nifty Index , would have become 10,693 9,087 11,027 12,093

Rs. 10,000, if invested in S&P BSE Small Cap , would have become

8,595 7,926 9,394 8,522



EQUITY OUTLOOK



NIFTY 7.31

Sensex 8.23

S&P BSE 100 6.84

S&P BSE 200 6.03

S&P BSE 500 4.81

CNX Midcap -4.02

Source: Bloomberg

5

HSBC SMALL CAP FUND








DEBT OUTLOOK











6

HSBC SMALL CAP FUND















7

HSBC SMALL CAP FUND




Amount (Rs.)

No. of Investors

Amount (Rs.)

No. of Investors

HSBC Small Cap Fund 25,300.00 13 309,257.88 17





Com-plaintCode

Type of complaint#


beginningof theyear


receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 3 3 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


2 40 22 18 2 0 0 0 0 0 0


0 2 1 1 0 0 0 0 0 0 0


0 9 9 0 0 0 0 0 0 0 0


0 6 5 0 0 0 0 1 0 0 0


0 277 277 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0

8

HSBC SMALL CAP FUND


Com-plaintCode

Type of complaint#


beginningof theyear


receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 18 18 0 0 0 0 0 0 0 0

IV Others 0 14 12 1 1 0 0 0 0 0 0

Total 2 369 347 20 3 0 0 1 0 0 0

Note:









Sd/-

Dilip J. Thakkar

Trustee

MUMBAIJuly 16, 2013

9

HSBC SMALL CAP FUND


HSBC Mutual Fund

Report on the Financial Statements1. We have audited the accompanying fi nancial statements of HSBC Mutual Fund - HSBC Small Cap Fund






4. An audit involves performing procedures to obtain audit evidence, about the amounts and disclosures in the fi nancial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the fi nancial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the preparation and fair presentation of the fi nancial statements in order to design audit procedures that are appropriate in the circumstances. Our procedures included confi rmation of securities owned and unit capital balances as at March 31, 2013 by correspondence with the custodian and registrar and transfer agent, respectively. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Trustee and the Management, as well as evaluating the overall presentation of the fi nancial statements.









10

HSBC SMALL CAP FUND






Sd/-



11

HSBC SMALL CAP FUND

Rs. in Lakhs

HSBC SMALL CAP FUNDAs at

March 31, 2013As at

March 31, 2012

LIABILITIES1 Unit Capital 1,639.02 2,351.922 Reserves & Surplus2.1 Unit Premium Reserves (344.97) (497.33)2.2 Unrealised Appreciation Reserve – –2.3 Other Reserves 83.27 223.253 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 84.69 86.21

TOTAL 1,462.01 2,164.05

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares 1,264.80 2,079.441.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares 112.47 –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – –1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –



TOTAL 1,462.01 2,164.05Notes to Accounts - Annexure I


12

HSBC SMALL CAP FUND


Rs. in Lakhs

HSBC SMALL CAP FUNDCurrent


Previous Year ended

March 31, 2012



1.6 Realised Gains / (Losses) on Derivative Transactions – –1.7 Other Income 0.84 –

(A) 117.36 (257.98)


(B) 50.74 64.52

3 NET REALISED GAINS / (LOSSES) FORTHE YEAR (A - B = C) 66.62 (322.50)

4 Change in Unrealised Depreciation in value ofinvestments (D) 89.43 148.53

5 NET GAINS / (LOSSES) FOR THE YEAR [E = (C - D)] (22.81) (471.03)

6 Change in Unrealised appreciation in the valueof investments (F) – –

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) (22.81) (471.03)

7.1 Add: Balance transfer from Unrealised Appreciation Reserve – –7.2 Less: Balance transfer to Unrealised Appreciation Reserve – –7.3 Add / (Less): Equalisation (117.17) 445.797.4 Transfer from Reserve Fund 223.25 248.497.5 Transfer from Unit Premium Reserve – –

8 TOTAL 83.27 223.25


10 Retained Surplus / (Defi cit) carried forwardto Balance Sheet 83.27 223.25



13

HSBC SMALL CAP FUND


HSBC SMALL CAP FUND Current


Previous Year ended

March 31, 2012


Open





High





Low





End5






End 1,377 2,078



4. Expense Ratio:













14

HSBC SMALL CAP FUND


HSBC SMALL CAP FUND Current


Previous Year ended

March 31, 2012


Retail



Corporate



8. Returns (%):

a. Last One Year

Scheme

Regular Plan - Growth Option (3.0837) (16.4700)

Regular Plan - Dividend Option (3.0840) (16.4700)



Benchmark

S&P BSE Smallcap (10.0300) (18.7444)

b. Since Inception

Scheme

Regular Plan - Growth Option (2.5729) (2.4400)

Regular Plan - Dividend Option (2.5734) (2.4500)



Benchmark

S&P BSE Smallcap (3.5300) (1.1687)



15

HSBC SMALL CAP FUND


HSBC SMALL CAP FUND1 Investments:






by all schemes


by all schemes

2013 2012


Fixed deposits

– – – 32,000,000

1.4 Open position of Securities Borrowed and / or Lent by the Scheme as of the years ended March 31, 2013 and March 31, 2012 are Nil.





2013 2012

Equity Shares

– Appreciation 7,606,417 5.5226% 16,246,236 7.8188%

– Depreciation 102,424,200 74.3646% 102,121,177 49.1477%




Aggregate Value of Equity and percentages to net assets are as under :

Security Category

Fair Value (Rs.)


Fair Value (Rs.)


2013 2012

Equities 11,247,000 8.17% – –


During the year 2012-2013, The Hong Kong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid collection/bank charges amounting to – NIL.

16

HSBC SMALL CAP FUND

During the year 2011-2012, The Hong Kong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid collection/bank charges amounting to Rs. 17,338.





Relation

Period Covered


% of Total Business




Fund


Associate 2012-2013 0.44 30.66 85,435 6.87


Associate 2012-2013 – – 453 0.04



Relation

Period Covered


% of Total Business




Fund


Associate 2011-2012 0.03 4.00 112,303 5.90


Associate 2011-2012 0.00~ 0.09 723 0.04




relation

Period Covered


[Rs. in Crores]

% of total value of




fund


Sponsor 2012-2013 0.37 0.20 4,487 3.21



relation

Period Covered


[Rs. in Crores]

% of total value of



(on accrual basis)


fund


Sponsor 2011-2012 1.01 6.34 20,153 6.43



17

HSBC SMALL CAP FUND

The brokerage paid was at rates similar to those offered to other brokers / distributors




Description

2012-2013

Opening Units Subscription Redemption Closing Units Face Value per unit (Rupees)


15,420,442.948 783,987.960 5,391,274.462 10,813,156.446 10


8,098,805.342 312,480.070 2,855,194.113 5,556,091.299 10


– 9,719.687 – 9,719.687 10


– 12,257.347 980.238 11,277.109 10

Description

2011-2012


(Rs.)


21,431,428.330 393,890.066 6,404,875.448 15,420,442.948 10


11,282,674.414 100,263.403 3,284,132.475 8,098,805.342 10




8 Other income of Rs. 83,754 (2012: NIL) represents Exit load (net of service tax) credited to the Scheme and provision for expenses written back since no longer required.




18

HSBC SMALL CAP FUND

















19

HSBC SMALL CAP FUND
















20

HSBC SMALL CAP FUND

Det

ails

of t

he P

roxy

Vot

es e

xerc

ised

in G

ener

al M

eetin

gs o

f the

Lis

ted

Com

pani

es fo

r the

fi na

ncia

l yea

r end

ed 2

012-

13M

anag

emen

t Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

05-A

pr-2

012

CRI

SIL

Ltd.

Oth

er M

eetin

g�

For

Abs

tain

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

��

�Fo

rFo

r

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

For

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

20-A

pr-2

012

FAG

Bea

rings

Ltd

.A

nnua

l Gen

eral

Mee

ting

��

��

�Fo

rA

bsta

in

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

Abs

tain

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

For

26-N

ov-2

012

Indo

Tech

Tra

nsfo

rmer

s Lt

d.O

ther

Mee

ting

�Fo

rFo

r

Shar

eho

lder

s Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

Nil

Cat

ego

ry1

Alte

ratio

n in

Mem

oran

dum

of

Ass

ocia

tion

of t

he c

ompa

ny c

onta

inin

g M

ain,

Anc

illar

y an

d O

ther

obj

ects

of

the

com

pany

2 Re

ceiv

e, c

onsi

der

and

adop

t th

e A

udite

d Ba

lanc

e Sh

eet

as a

t ye

ar e

nd t

he P

rofi t

and

Los

s A

ccou

nt f

or t

he y

ear

ende

d on

tha

t da

te a

nd t

he R

epor

ts o

f th

e D

irect

ors

and

the

Aud

itors

the

reon

3 D

ecla

ratio

n of

div

iden

d on

Ord

inar

y (E

quity

) Sha

res

and

/ or

Pref

eren

ce s

hare

s4

App

oint

men

t, R

e-ap

poin

tmen

t an

d Re

mov

al o

f D

irect

ors

/ Add

ition

al D

irect

ors

5 A

ppoi

ntm

ent,

Re-

appo

intm

ent

and

Rem

oval

of

Aud

itors

6 St

ock

Opt

ion

plan

s an

d ot

her

man

agem

ent

com

pens

atio

n m

atte

rs7

Rest

ruct

urin

g of

Sha

re c

apita

l (in

clud

ing

stoc

k sp

lits,

con

solid

atio

n, r

educ

tion,

etc

. of

shar

e ca

pita

l)8

Cha

nges

in c

apita

l str

uctu

re in

clud

ing

incr

ease

s an

d de

crea

ses

of E

quity

& p

refe

rred

sto

ck /

war

rant

issu

ance

s9

Cor

pora

te r

estr

uctu

ring

mat

ters

(inc

ludi

ng m

erge

rs, a

cqui

sitio

ns, t

akeo

vers

, sel

l-off

s, t

rans

fer

of c

ontr

ol, c

hang

es in

sta

te o

f in

corp

orat

ion,

Del

isitn

g)




HSBC SMALL CAP FUND

HSBC MIP FUND

HSBC MIPAn open-ended Fund with Regular & Savings Plans*

Abridged Annual Report 2012 - 2013*Monthly income is not assured and is subject tothe availability of distributable surplus.

1

HSBC MIP

Dear Investor,







Market Outlook:





2

HSBC MIP





Yours sincerely,

Puneet Chaddha



3

HSBC MIP


TRUSTEEBoard of TrusteesOffi ce: 16, Veer Nariman Road, Fort, Mumbai 400 001.

ASSET MANAGEMENT COMPANYHSBC Asset Management (India) Private LimitedCorp. & Regd. Offi ce: 16, Veer Nariman Road, Fort, Mumbai 400 001.











4

HSBC MIP





HSBC MIP (HMIP) - an open-ended Fund

(Monthly income is not assured and is subject to availability of distributable surplus.)

HMIP is an open-ended fund which seeks to generate reasonable returns through investments in Debt and Money Market Instruments. The secondary objective of the scheme is to invest in equity and equity related instruments to seek capital appreciation.

The Scheme offers two Plans: Regular Plan and Savings Plan. The Regular Plan can have up to 15% of the corpus invested in equities while the Savings Plan can have up to 25 % invested in equities. The net assets of HMIP - Re ular Plan (HMIP - R) amounted to Rs. 190.42 crores as at March 31, 2013 as compared to Rs. 128.06 crores as at March 31, 2012. Around 81.68% of the net assets were invested in debt and money market instruments & 14.27% of the net assets were invested in equities as at March 31, 2013. The net assets of HMIP - Savings Plan (HMIP - S) amounted to Rs. 317.36 crores as at March 31, 2013 as compared to Rs. 245.05 crores as at March 31, 2012. Around 74.41% of the net assets were invested in debt and money market instruments & 21.84% % of the net assets were invested in equities as at March 31, 2013.

HMIP performance is broadly in line with the benchmark as it shifted allocation to large cap stocks and through active duration management.

HMIP - Regular Plan

Date of Inception : 24 February, 2004 Simple Annualized (%) Compounded Annualized (%)




Since Inception

HSBC MIP - Regular Plan - Growth 10.07 5.20 3.45 7.74

CRISIL 1 Year T-Bill Index (Standard Benchmark) 8.37 6.59 3.86 5.41

CRISIL 10 Year Gilt Index (Standard Benchmark) 11.31 2.41 4.61 4.79

CRISIL MIP Blended Index (Scheme Benchmark) 9.09 5.26 6.04 7.20

Rs. 10,000, if invested in HMIP - Regular Plan - Growth, would have become

11,007 10,520 10,345 19,728

Rs. 10,000, if invested in CRISIL 1 Year T-Bill Index, would have become

10,837 10659 10,386 16,166

Rs. 10,000, if invested in CRISIL 10 Year Gilt Index, would have become

11,131 10241 10,461 15,322

Rs. 10,000, if invested in CRISIL MIP Blended Index, would have become

10,909 10526 10,604 18,842


5

HSBC MIP


HMIP - Savings Plan

Date of Inception : 24 February, 2004 Simple Annualized (%) Compounded Annualized (%)




Since Inception

HSBC MIP - Savings Plan - Growth 10.74 4.94 3.53 9.25



CRISIL MIP Blended Index (Scheme Benchmark) 9.09 5.26 6.04 7.20

Rs. 10,000, if invested in HMIP - Savings Plan - Growth, would have become

11,074 10,494 10,353 22,401


10,837 10659 10,386 16,166


11,131 10241 10,461 15,322

Rs. 10,000, if invested in CRISIL MIP Blended Index, would have become

10,909 10526 10,604 18,842



EQUITY OUTLOOK



NIFTY 7.31

Sensex 8.23

S&P BSE 100 6.84

S&P BSE 200 6.03

S&P BSE 500 4.81

CNX Midcap -4.02

Source: Bloomberg




6

HSBC MIP





DEBT OUTLOOK















7

HSBC MIP












Scheme

Unclaimed Dividends Unclaimed Redemptions

Amount (Rs.)

No. of Investors

Amount (Rs.)

No. of Investors

HSBC MIP - Regular Plan 433,063.63 474 1,052,750.95 13

HSBC MIP - Savings Plan 591,339.94 628 114,778.41 15

8

HSBC MIP






Com-plaintCode

Type of complaint#


beginningof theyear


receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 3 3 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


2 40 22 18 2 0 0 0 0 0 0


0 2 1 1 0 0 0 0 0 0 0


0 9 9 0 0 0 0 0 0 0 0


0 6 5 0 0 0 0 1 0 0 0


0 277 277 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0

9

HSBC MIP

Com-plaintCode

Type of complaint#


beginningof theyear


receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 0 0 0 0 0 0 0 0 0 0


0 18 18 0 0 0 0 0 0 0 0

IV Others 0 14 12 1 1 0 0 0 0 0 0

Total 2 369 347 20 3 0 0 1 0 0 0

Note:









Sd/-

Dilip J. Thakkar

Trustee

MUMBAIJuly 16, 2013


10

HSBC MIP



HSBC Mutual Fund

Report on the Financial Statements1. We have audited the accompanying fi nancial statements of HSBC Mutual Fund - HSBC MIP (the “Scheme”),

which comprise the Balance Sheet as at March 31, 2013, and the related Revenue Account for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.









(a) in the case of the Balance Sheet, of the state of affairs of the scheme as at March 31, 2013; and




11

HSBC MIP



8. As required by clause 5 (ii)(2) of the Eleventh Schedule to the Regulations, we report that the Balance Sheet and Revenue Account dealt with by this Report are in agreement with the books of account of the scheme.



Sd/-



12

HSBC MIP

Rs. in Lakhs

HSBC MIP - REGULAR PLANAs at

March 31, 2013As at

March 31, 2012

LIABILITIES1 Unit Capital 14,589.36 10,071.872 Reserves & Surplus2.1 Unit Premium Reserves 615.71 393.582.2 Unrealised Appreciation Reserve 336.92 58.762.3 Other Reserves 3,500.02 2,282.073 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 323.87 206.12

TOTAL 19,365.88 13,012.40

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares 2,678.89 1,627.041.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds 9,710.99 4,643.501.1.5 Securitised Debt Securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares 37.86 1.211.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt Securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds 505.13 –1.3.5 Securitised Debt Securities – –1.4 Government Securities 2,324.08 394.661.5 Treasury Bills – –1.6 Commercial Paper 477.95 963.441.7 Certifi cate of Deposits 2,535.84 3,850.881.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –


2 Deposits 58.19 373.393 Other Current Assets3.1 Cash & Bank Balance 128.61 158.753.2 CBLO / Reverse Repo Lending 152.68 184.383.3 Others 755.66 815.154 Deferred Revenue Expenditure – –


TOTAL 19,365.88 13,012.40



13

HSBC MIP

Abridged Balance Sheet as at March 31, 2013 (Contd...)

Rs. in Lakhs

HSBC MIP - SAVINGS PLANAs at

March 31, 2013As at

March 31, 2012

LIABILITIES1 Unit Capital 21,284.72 17,523.442 Reserves & Surplus2.1 Unit Premium Reserves 2,211.51 1,770.162.2 Unrealised Appreciation Reserve 516.36 43.622.3 Other Reserves 7,723.53 5,167.653 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 429.50 312.54

TOTAL 32,165.62 24,817.41

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares 6,779.52 5,820.881.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds 14,288.29 8,087.741.1.5 Securitised Debt Securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares 149.68 9.711.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt Securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds 505.13 –1.3.5 Securitised Debt Securities – –1.4 Government Securities 4,751.92 685.601.5 Treasury Bills – –1.6 Commercial Paper – 1,445.171.7 Certifi cate of Deposits 4,068.84 6,990.841.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –

Total Investments 30,543.38 23,039.942 Deposits 67.32 285.993 Other Current Assets3.1 Cash & Bank Balance 205.47 65.783.2 CBLO / Reverse Repo Lending 244.28 39.003.3 Others 1,105.17 1,386.704 Deferred Revenue Expenditure – –


TOTAL 32,165.62 24,817.41


14

HSBC MIP

Rs. in Lakhs

HSBC MIP - REGULAR PLANCurrent


Previous Year ended

March 31, 2012

1 INCOME1.1 Dividend 33.72 36.611.2 Interest 1,336.99 1,227.781.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of



(A) 1,789.87 1,075.782 EXPENSES2.1 Management fees 184.04 182.772.2 Service tax on Management fees 22.75 18.832.3 Transfer agents fees and expenses 18.34 22.032.4 Custodian fees 2.97 3.272.5 Trusteeship fees 0.16 0.372.6 Commission to Agents * – –2.7 Marketing & Distribution expenses 216.33 101.852.8 Audit fees 2.70 1.362.9 Investor Education Expenses 1.94 –2.10 Other operating expenses 11.41 29.002.11 Less : Expenses to be Reimbursed by the Investment Manager (56.01) 10.17

(B) 404.64 340.65

3 NET REALISED GAINS / (LOSSES) FORTHE YEAR (A - B = C) 1,385.23 735.13

4 Change in Unrealised Depreciation invalue of investments (D) (46.96) (24.53)


6 Change in Unrealised appreciation inthe value of investments (F) 278.16 8.09

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 1,710.33 767.75

7.1 Add: Balance transfer from Unrealised Appreciation Reserve – –7.2 Less: Balance transfer to Unrealised Appreciation Reserve (278.16) 8.097.3 Add / (Less): Equalisation 618.46 (1,078.18)7.4 Transfer from Reserve Fund 2,282.07 3,134.39


8 TOTAL 4,332.70 2,815.87

9 Dividend appropriation9.1 Income Distributed during the year 728.74 466.089.2 Tax on income distributed during the year 104.00 67.7210 Retained Surplus / (Defi cit) carried

forward to Balance sheet 3,500.02 2,282.07




15

HSBC MIP

Abridged Revenue Account for the year ended March 31, 2013 (Contd...)

Rs. in Lakhs

HSBC MIP - SAVINGS PLANCurrent


Previous Year ended

March 31, 2012

1 INCOME1.1 Dividend 96.34 180.761.2 Interest 1,810.57 3,142.891.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of

investments883.09 (1,003.32)


(A) 2,813.45 2,320.362 EXPENSES2.1 Management fees 276.44 476.352.2 Service tax on Management fees 34.17 49.082.3 Transfer agents fees and expenses 28.45 62.232.4 Custodian fees 5.40 10.802.5 Trusteeship fees 0.24 1.022.6 Commission to Agents * – –2.7 Marketing & Distribution expenses 266.25 279.032.8 Audit fees 4.49 2.632.9 Investor Education Expenses 2.86 2.632.10 Other operating expenses 17.21 26.252.11 Less : Expenses to be Reimbursed by the Investment Manager (29.45) 24.88

(B) 606.06 907.39


4 Change in Unrealised Depreciation invalue of investments (D) (54.90) (291.77)


6 Change in unrealised appreciation inthe value of investments (F) 472.74 (19.78)

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 2,735.03 1,684.96

7.1 Add: Balance transfer from Unrealised Appreciation Reserve – 19.787.2 Less: Balance transfer to Unrealised Appreciation Reserve (472.74) –7.3 Add / (Less): Equalisation 1,320.62 (6,988.96)7.4 Transfer from Reserve Fund 5,167.66 11,597.48


8 TOTAL 8,750.57 6,313.26

9 Dividend appropriation9.1 Income Distributed during the year 899.06 995.969.2 Tax on income distributed during the year 127.97 149.64

10 Retained Surplus / (Defi cit) carriedforward to Balance sheet 7,723.53 5,167.66



16

HSBC MIP




Previous Year ended

March 31, 2012

1. NAV per unit (Rs.): Open

Growth Option 17.9418 16.9989Monthly Dividend Option 10.8567 10.7617Quarterly Dividend Option 11.1707 11.2192Direct Plan - Growth Option N.A. N.A.Direct Plan - Monthly Dividend Option N.A. N.A.Direct Plan - Quarterly Dividend Option N.A. N.A.

HighGrowth Option 19.8650 17.9638Monthly Dividend Option 11.4517 10.9652Quarterly Dividend Option 11.7334 11.3856Direct Plan - Growth Option 19.8746 N.A.Direct Plan - Monthly Dividend Option N.A. N.A.Direct Plan - Quarterly Dividend Option N.A. N.A.

LowGrowth Option 17.9188 16.9608Monthly Dividend Option 10.7503 10.5392Quarterly Dividend Option 11.0965 10.9202Direct Plan - Growth Option 19.6523 N.A.Direct Plan - Monthly Dividend Option – N.A.Direct Plan - Quarterly Dividend Option – N.A.

End5

Growth Option 19.7509 17.9418Monthly Dividend Option 11.2060 10.8567Quarterly Dividend Option 11.4663 11.1707Direct Plan - Growth Option 19.8072 N.A.Direct Plan - Monthly Dividend Option – N.A.Direct Plan - Quarterly Dividend Option – N.A.



4. Expense Ratio: a. Total Expense as % of AAuM (planwise)

Growth Option 2.31% 2.16%Monthly Dividend Option 2.31% 2.16%Quarterly Dividend Option 2.31% 2.16%Direct Plan - Growth Option 1.31% N.A.Direct Plan - Monthly Dividend Option – N.A.Direct Plan - Quarterly Dividend Option – N.A.

b. Management Fee as % of AAuM (planwise)Growth Option 1.05% 1.16%Monthly Dividend Option 1.05% 1.16%Quarterly Dividend Option 1.05% 1.16%

17

HSBC MIP




Previous Year ended

March 31, 2012

Direct Plan - Growth Option 1.05% N.A.Direct Plan - Monthly Dividend Option 1.05% N.A.Direct Plan - Quarterly Dividend Option 1.05% N.A.




Monthly Dividend Option 0.6298 0.4273Quarterly Dividend Option 0.7047 0.5726Direct Plan - Monthly Dividend Option – N.ADirect Plan - Quarterly Dividend Option – N.A

CorporateMonthly Dividend Option 0.5398 0.3722Quarterly Dividend Option 0.6040 0.4908Direct Plan - Monthly Dividend Option – N.ADirect Plan - Quarterly Dividend Option – N.A


Growth Option 10.2900 5.6600Monthly Dividend Option 9.4500 5.1000Quarterly Dividend Option 9.3900 4.9400Direct Plan - Growth Option – N.A.Direct Plan - Monthly Dividend Option N.A. N.A.Direct Plan - Quarterly Dividend Option N.A. N.A.

BenchmarkCRISIL MIP Blended Index 9.43% 5.3733


Growth Option 7.7900 7.4800Monthly Dividend Option 6.9700 6.6700Quarterly Dividend Option 7.0100 6.7200Direct Plan - Growth Option 1.1700 N.A.Direct Plan - Monthly Dividend Option N.A. N.A.Direct Plan - Quarterly Dividend Option N.A. N.A.


1 AAuM=Average daily net assets2 Gross income = amount against (A) in the Revenue account i.e. Income3 Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the year4 Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year5 The net asset value disclosed represents the computed NAV on March 31, 2013 (Non-business Day),


18

HSBC MIP




Previous Year ended

March 31, 2012



HighGrowth Option 22.8713 20.3203Monthly Dividend Option 12.5338 11.7451Quarterly Dividend Option 12.5566 11.9109Direct Plan - Growth Option 22.8753 N.A.Direct Plan - Monthly Dividend Option 12.5391 N.A.Direct Plan - Quarterly Dividend Option 12.5333 N.A.

LowGrowth Option 19.9892 18.9851Monthly Dividend Option 11.3915 11.0136Quarterly Dividend Option 11.5232 11.1299Direct Plan - Growth Option 22.3945 N.A.Direct Plan - Monthly Dividend Option 12.1502 N.A.Direct Plan - Quarterly Dividend Option 12.1927 N.A.

End5

Growth Option 22.4490 20.2618Monthly Dividend Option 12.1235 11.6161Quarterly Dividend Option 12.1257 11.6955Direct Plan - Growth Option 22.5006 N.A.Direct Plan - Monthly Dividend Option 12.1546 N.A.Direct Plan - Quarterly Dividend Option 12.2505 N.A.



4. Expense Ratio: a. Total Expense as % of AAuM (planwise)

Growth Option 2.24% 2.01%Monthly Dividend Option 2.24% 2.01%Quarterly Dividend Option 2.24% 2.01%Direct Plan - Growth Option 1.35% N.A.Direct Plan - Monthly Dividend Option 1.35% N.A.Direct Plan - Quarterly Dividend Option 1.35% N.A.

b. Management Fee as % of AAuM (planwise)Growth Option 1.02% 1.05%Monthly Dividend Option 1.02% 1.05%Quarterly Dividend Option 1.02% 1.05%

19

HSBC MIP




Previous Year ended

March 31, 2012

Direct Plan - Growth Option 1.02% N.A.Direct Plan - Monthly Dividend Option 1.02% N.A.Direct Plan - Quarterly Dividend Option 1.02% N.A.




Monthly Dividend Option 0.6298 0.3348Quarterly Dividend Option 0.7047 0.5550Direct Plan - Monthly Dividend Option 0.1586 N.ADirect Plan - Quarterly Dividend Option 0.0881 N.A

CorporateMonthly Dividend Option 0.5398 0.2937Quarterly Dividend Option 0.6040 0.4757Direct Plan - Monthly Dividend Option 0.1359 N.ADirect Plan - Quarterly Dividend Option 0.0755 N.A





Growth Option 9.3300 9.1100Monthly Dividend Option 8.3800 8.1900Quarterly Dividend Option 8.4400 8.2100Direct Plan - Growth Option (0.4900) N.A.Direct Plan - Monthly Dividend Option (0.4500) N.A.Direct Plan - Quarterly Dividend Option (0.9800) N.A.


1 AAuM=Average daily net assets2 Gross income = amount against (A) in the Revenue account i.e. Income3 Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the year4 Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year5 The net asset value disclosed represents the computed NAV on March 31, 2013 (Non-business Day),


20

HSBC MIP


HSBC MIP

1 Investments:

1.1 It is confi rmed that investments of the Scheme are registered in the name of the Trustees for the benefi t of the Scheme’s unitholders.

1.2 Open Positions of derivatives in Regular Plan as at years ended March 31, 2013 and year ended March 31, 2012 are NIL.

Open Positions of derivatives in Savings Plan as at years ended March 31, 2013 and year ended March 31, 2012 are NIL.

1.3 Investments in Associates and Group Companies are as under :(Rupees)

Issuer 2013

Instrument Type

REGULAR PLAN

SAVINGS PLAN

Aggregate Investmentsby all schemes


Fixed deposits – – –

Issuer 2012

Instrument Type

REGULAR PLAN

SAVINGS PLAN

Aggregate Investmentsby all schemes


Fixed deposits 10,000,000 22,000,000 32,000,000

1.4 Open positions of Securities Borrowed and / or Lent by the Regular Plan as of fi nancial year March 31, 2013 and March 31, 2012 are NIL.

Open positions of Securities Borrowed and / or Lent by the Savings Plan as of fi nancial year March 31, 2013 and March 31, 2012 are NIL.

1.5 NPAs for Regular Plan as on March 31, 2013 and March 31, 2012 are NIL.

NPAs for Savings Plan as on March 31, 2013 and March 31, 2012 are NIL.

1.6 Aggregate Unrealised Gain / Loss as at the end of the fi nancial years 2013 and 2012 and their percentage to net assets are as under :

Security Category March 31, 2013

REGULAR PLAN SAVINGS PLAN

Amount(Rs.)


Amount(Rs.)


Equity Shares

– Appreciation 48,561,692 2.5502% 127,061,686 4.0037%

– Depreciation 20,598,243 1.0817% 81,373,606 2.5641%

Non Convertible Debentures and Bonds Listed / Awaiting Listing

– Appreciation 5,650,545 0.2967% 5,865,369 0.1848%

– Depreciation – – – –

Government of India Securities

– Appreciation – – 189,898 0.0060%

– Depreciation 1,720,404 0.0903% 3,017,800 0.0951%

Commercial Paper / Certifi cate of Deposit

– Appreciation 81,420 0.00% ~ 88,308 0.00% ~

– Depreciation 3,434 0.00% ~ 5,726 0.00% ~

21

HSBC MIP

Security Category March 31, 2012REGULAR PLAN SAVINGS PLAN

Amount(Rs.)


Amount(Rs.)


Equity Shares

– Appreciation 20,884,212 1.6308% 76,465,490 3.1204%

– Depreciation 15,638,433 1.2212% 72,840,464 2.9725%


– Appreciation 158,312 0.0124% 258,809 0.0106%

– Depreciation 5,963,604 0.4657% 7,462,727 0.3045%


– Appreciation – – – –

– Depreciation 611,307 0.0477% 1,114,367 0.0455%

Commercial Paper / Certifi cate of Deposit

– Appreciation 1,098,410 0.0858% 1,647,298 0.0672%

– Depreciation 468,160 0.0366% 910,544 0.0372%


1.7 The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2012-13 (excluding accretion of discount) are Rs. 10,122,146,971 and Rs. 9,540,484,450 respectively being 577.37% and 544.19% of the average daily net assets for Regular Plan and Rs. 14,268,398,507 and Rs. 13,673,132,468 respectively being 528.34% and 506.30% of the average daily net assets for Savings Plan.

The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2011-12 (excluding accretion of discount) are Rs. 9,795,794,109 and Rs. 10,839,037,037 respectively being 620.67% and 686.77% of the average daily net assets for Regular Plan and Rs. 24,776,437,090 and Rs. 29,213,539,379 respectively being 540.46% and 637.25% of the average daily net assets for Savings Plan.


Aggregate Value of Equity, Debt & Money Market Instruments and percentage to net assets is as under :

REGULAR PLANSecurity Category Amount

(Rs.)Percentage to

Net AssetsAmount

(Rs.)Percentage to

Net Assets2013 2012

Equities 3,785,589 0.20% 121,429 0.00%

Debt Instruments 1,021,612,127 53.65% 464,349,898 0.36%

Money Market Instruments 301,378,978 15.83% 481,432,294 0.38%

Total 1,326,776,693 69.68% 945,903,621 0.74%

SAVINGS PLANSecurity Category Amount

(Rs.)Percentage to

Net AssetsAmount

(Rs.)Percentage to

Net Assets

2013 2012

Equities 14,967,937 0.47% 971,477 0.00%


Money Market Instruments 406,884,335 12.82% 843,600,774 0.34%

Total 1,901,194,375 59.91% 1,653,345,968 0.67%


22

HSBC MIP


During the year 2012-13, The Hongkong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid clearing member charges on derivative transactions amounting to Rs. NIL for the Regular Plan and Savings Plan respectively.

During the year 2011-12, The Hongkong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid clearing member charges on derivative transactions amounting to Rs. 19,090 and Rs. 98,546 for the Regular Plan and Savings Plan respectively.





Relation

Period Covered


% of Total Business received by the Fund

Commission paid

[Rupees]


Fund

REGULAR PLAN


Associate 2012-2013 124.13 67.78 11,110,386 46.43

HSBC InvestDirect Securities (India) Limited Associate 2012-2013 1.45 0.79 119,601 0.50

SAVINGS PLAN


Associate 2012-2013 139.55 62.54 10,085,595 35.36




Relation

Period Covered



Commission paid

[Rupees]


Fund

REGULAR PLAN


Associate 2011-2012 23.10 33.59 1,972,207 13.83


SAVINGS PLAN


Associate 2011-2012 18.98 23.35 5,460,815 18.46



23

HSBC MIP




relation

Period Covered


[Rs. in Crores]

% of total value of




fund

REGULAR PLAN


Sponsor 2012-2013 0.92 0.03 11,336 2.55

SAVINGS PLAN


Sponsor 2012-2013 1.37 0.03 21,363 1.82



relation

Period Covered


[Rs. in Crores]

% of total value of



(on accrual basis)


fund

REGULAR PLAN


Sponsor 2011-2012 0.75 0.23 14,927 1.80

SAVINGS PLAN


Sponsor 2011-2012 4.59 0.42 91,635 2.04

The brokerage paid was at rates similar to those offered to other distributors.


3 None of the Investors held more than 25% of the total net assets of the schemes at the years ended March 31, 2013 and March 31, 2012.

4 Unit Capital movement during the years ended March 31, 2013 and March 31, 2012.

REGULAR PLAN

Description Opening Units Subscription Redemption Closing Units Face Value per unit (Rs.)

2012-2013

Growth Option 25,190,883.853 27,369,946.094 21,961,032.066 30,599,797.881 10

Monthly Dividend Option

47,890,665.602 93,426,770.016 56,132,541.733 85,184,893.885 10

Quarterly Dividend Option

27,637,190.189 22,119,104.233 19,648,486.172 30,107,808.250 10


N.A 1,102.368 – 1,102.368 10

Direct Plan - Monthy Dividend Option

N.A – – – –


24

HSBC MIP

REGULAR PLAN


Direct Plan - Quarterly Dividend Option

N.A – – – –

2011-2012


Growth Option 37,218,578.212 14,898,526.691 26,926,221.050 25,190,883.853 10


96,169,739.670 25,281,336.821 73,560,410.889 47,890,665.602 10


49,745,741.293 7,786,295.929 29,894,847.033 27,637,190.189 10

SAVINGS PLANDescription Opening Units Subscription Redemption Closing Units Face Value

per Unit (Rs.)2012-2013

Growth Option 47,426,311.868 35,143,406.073 25,388,322.230 57,181,395.711 10


65,944,933.379 100,688,078.917 58,823,537.783 107,809,474.513 10


61,863,124.889 15,385,623.348 29,711,689.343 47,537,058.894 10


N.A 253,338.899 – 253,338.899 10

Direct Plan - Monthy Dividend Option

N.A 31,718.984 – 31,718.984 10


N.A 34,214.030 – 34,214.030 10

2011-2012Description Opening Units Subscription Redemption Closing Units Face Value

per Unit (Rs.)

Growth Option 122,661,084.280 15,645,060.474 90,879,832.886 47,426,311.868 10


246,665,614.503 19,965,436.256 200,686,117.380 65,944,933.379 10


136,436,736.579 8,771,573.738 83,345,185.428 61,863,124.889 10

5 Prior year amounts have been re-grouped / re-arranged where necessary.

6 No contingent liabilities for Regular Plan and Savings Plan for the years ended March 31, 2013 and March 31, 2012.


8 Other income of Rs. 2,055,098 in Regular Plan (2012: Rs.1,593) and 2,344,638 (2012: Rs. 3,223) in Savings Plan represents Exit Load (net of service tax) credited to the Scheme and Provision for Expense written back since no longer required.


25

HSBC MIP

9 Garnishee Notice from Income Tax Authorities

An Income tax demand of Rs. 32.58 crores was purported to be recovered under garnishee proceedings, by Income Tax Authorities in respect of investments made in Pass through Certifi cates (PTC) by some of the debt schemes (including matured schemes) of HSBC Mutual Fund (HSBC MF), for A.Y. 2009-2010. The said demand, impacting various players in the industry, raised originally on the trusts sponsored by IL&FS Trust Company Ltd., (Appellants) was sought to be also recovered u/s 177(3) of the Income Tax Act, from HSBC MF. HSBC MF, through its trustees fi led Writ petitions before the Bombay High Court and obtained necessary reliefs for stay of the impugned demand till the adjudication of the appeal by the fi rst Appellate Authority and six weeks thereafter. During last week of April 2013, the fi rst Appellate Authority passed its order giving part relief to Appellant. Against the order granting part relief, the Appellant has fi led an appeal before Income-tax Appellate Tribunal. The appeal is now expected to be heard on 14th August, 2013.

Similar to AY 2009-2010, HSBC MF has received a demand notice from the Income Tax Authorities for the A.Y. 2010-2011 for Rs. 6.95 crores. HSBC MF, through its trustees, fi led a writ petition before the Bombay High Court and obtained necessary reliefs for stay of the impugned demand till the adjudication of the appeal by the fi rst Appellate Authority and six weeks thereafter. The appeal has been preferred by the appellant to the fi rst Appellate Authority which is pending to be heard.

Similar to the above, the assessment for the A.Y. 2007-2008 has also been revised by the Income Tax Authorities and demand has been made of Rs. 2.04 Crores on the trust sponsored by IL&FS Trust Company Ltd. The trust has fi led an appeal before fi rst Appellate Authority. The HSBC MF has not received any demand notice from the Income Tax authorities for this assessment year.




26

HSBC MIP

















27

HSBC MIP
















28

HSBC MIP

Det

ails

of t

he P

roxy

Vot

es e

xerc

ised

in G

ener

al M

eetin

gs o

f the

Lis

ted

Com

pani

es fo

r the

fi na

ncia

l yea

r end

ed 2

012-

13M

anag

emen

t Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

05-A

pr-2

012

CRI

SIL

Ltd.

Oth

er M

eetin

g�

For

Abs

tain

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

��

�Fo

rFo

r

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

For

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

20-A

pr-2

012

FAG

Bea

rings

Ltd

.A

nnua

l Gen

eral

Mee

ting

��

��

�Fo

rA

bsta

in

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

Abs

tain

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

For

26-N

ov-2

012

Indo

Tech

Tra

nsfo

rmer

s Lt

d.O

ther

Mee

ting

�Fo

rFo

r

Shar

eho

lder

s Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

Nil

Cat

ego

ry1

Alte

ratio

n in

Mem

oran

dum

of

Ass

ocia

tion

of t

he c

ompa

ny c

onta

inin

g M

ain,

Anc

illar

y an

d O

ther

obj

ects

of

the

com

pany

2 Re

ceiv

e, c

onsi

der

and

adop

t th

e A

udite

d Ba

lanc

e Sh

eet

as a

t ye

ar e

nd t

he P

rofi t

and

Los

s A

ccou

nt f

or t

he y

ear

ende

d on

tha

t da

te a

nd t

he R

epor

ts o

f th

e D

irect

ors

and

the

Aud

itors

the

reon

3 D

ecla

ratio

n of

div

iden

d on

Ord

inar

y (E

quity

) Sha

res

and

/ or

Pref

eren

ce s

hare

s4

App

oint

men

t, R

e-ap

poin

tmen

t an

d Re

mov

al o

f D

irect

ors

/ Add

ition

al D

irect

ors

5 A

ppoi

ntm

ent,

Re-

appo

intm

ent

and

Rem

oval

of

Aud

itors

6 St

ock

Opt

ion

plan

s an

d ot

her

man

agem

ent

com

pens

atio

n m

atte

rs7

Rest

ruct

urin

g of

Sha

re c

apita

l (in

clud

ing

stoc

k sp

lits,

con

solid

atio

n, r

educ

tion,

etc

. of

shar

e ca

pita

l)8

Cha

nges

in c

apita

l str

uctu

re in

clud

ing

incr

ease

s an

d de

crea

ses

of E

quity

& p

refe

rred

sto

ck /

war

rant

issu

ance

s9

Cor

pora

te r

estr

uctu

ring

mat

ters

(inc

ludi

ng m

erge

rs, a

cqui

sitio

ns, t

akeo

vers

, sel

l-off

s, t

rans

fer

of c

ontr

ol, c

hang

es in

sta

te o

f in

corp

orat

ion,

Del

isitn

g)




HSBC MIP FUND

HSBC INCOME FUND

HSBC Income FundAn open-ended Income Scheme


1

HSBC INCOME FUND

Dear Investor,







Market Outlook:





2

HSBC INCOME FUND





Yours sincerely,

Puneet Chaddha



3

HSBC INCOME FUND














4

HSBC INCOME FUND





HSBC Income Fund (HIF) - an open-ended Income Scheme

HIF seeks to generate reasonable income through a diversifi ed portfolio of fi xed income securities. The AMC’s view of interest rate trends and the nature of the Plans will be refl ected in the type and maturities of securities in which the Short Term and Investment Plans are invested.

The Scheme has two Plans - the Investment Plan and the Short Term Plan. The net assets of HSBC Income Fund - Investment Plan (HIF - IP) amounted to Rs. 89.77 crores as at March 31, 2013 as compared to Rs. 32.66 crores as at March 31, 2012. Around 92.35% of the net assets were invested in debt and money market instruments, 1.77% of the net assets were invested in reverse repos/CBLO and 5.88 % were in net current assets as at March 31, 2013. The net assets of HSBC Income Fund - Short Term Plan (HIF - STP) amounted to Rs. 1035.16 crores as at March 31, 2013 as compared to Rs. 494.14 crores as at March 31, 2012. Around 97.06 % of the net assets were invested in debt and money market instruments, 0.88 % of the net assets were invested in reverse repos/CBLO and 2.06 % were in net current assets as at March 31, 2013.

HIF-IP outperformed its benchmark through active management of duration.

HIF - IP

Date of Inception : 10 December, 2002 Simple Annualized (%) Compounded Annualized (%)




Since Inception

HSBC Income Fund - Investment Plan - Growth 11.19 8.86 5.51 7.15


CRISIL Composite Bond Fund Index (Scheme Benchmark) 9.27 7.68 5.06 5.86

Rs. 10,000, if invested in HIF-IP - Growth, would have become

11,119 10,886 10,551 20,404


11,131 10241 10,461 17,606

Rs. 10,000, if invested in CRISIL Composite Bond Fund Index, would have become

10,927 10768 10,506 18,006


HIF-STP outperformed its benchmark through focus on accrual and active calls.

HIF - STP





Since Inception

HSBC Income Fund - STP - Growth 9.26 8.41 5.80 6.76


CRISIL Short-Term Bond Fund Index (Scheme Benchmark) 9.09 8.28 5.13 6.44

5

HSBC INCOME FUND






Since Inception

Rs. 10,000, if invested in HIF - STP - Growth, would have become

10,926 10,841 10,580 19,652


10,837 10659 10,386 17,221

Rs. 10,000, if invested in CRISIL Short-Term Bond Fund Index, would have become

10,909 10828 10,513 19,048



EQUITY OUTLOOK



NIFTY 7.31

Sensex 8.23

S&P BSE 100 6.84

S&P BSE 200 6.03

S&P BSE 500 4.81

CNX Midcap -4.02

Source: Bloomberg







6

HSBC INCOME FUND


DEBT OUTLOOK


















7

HSBC INCOME FUND









Scheme

Unclaimed Dividends Unclaimed Redemptions

Amount (Rs.)

No. of Investors

Amount (Rs.)

No. of Investors

HSBC Income Fund - Investment Plan 389,081.02 774 258,385.87 26

HSBC Income Fund - Short Term Plan 57,430.30 24 – –



8

HSBC INCOME FUND




Com-plaintCode

Type of complaint#


beginningof theyear


receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 3 3 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


2 40 22 18 2 0 0 0 0 0 0


0 2 1 1 0 0 0 0 0 0 0


0 9 9 0 0 0 0 0 0 0 0


0 6 5 0 0 0 0 1 0 0 0


0 277 277 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 18 18 0 0 0 0 0 0 0 0

IV Others 0 14 12 1 1 0 0 0 0 0 0

Total 2 369 347 20 3 0 0 1 0 0 0

Note:


9

HSBC INCOME FUND









Sd/-

Dilip J. Thakkar

Trustee

MUMBAIJuly 16, 2013

10

HSBC INCOME FUND



HSBC Mutual Fund

Report on the Financial Statements1. We have audited the accompanying fi nancial statements of HSBC Mutual Fund - HSBC Income Fund














11

HSBC INCOME FUND






Sd/-



12

HSBC INCOME FUND

Rs. in Lakhs

HSBC INCOME FUND – INVESTMENT PLANAs at

March 31, 2013As at

March 31, 2012

LIABILITIES1 Unit Capital 5,270.04 2,380.09

2 Reserves & Surplus2.1 Unit Premium Reserves (700.59) (645.63)2.2 Unrealised Appreciation Reserve 11.54 4.02 2.3 Other Reserves 4,396.63 1,727.75 3 Loans & Borrowings – – 4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – – 4.2 Other Current Liabilities & Provisions 315.83 114.40

TOTAL 9,293.45 3,580.63

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – – 1.1.2 Preference Shares – – 1.1.3 Equity Linked Debentures – – 1.1.4 Other Debentures & Bonds 4,260.57 1,408.52 1.1.5 Securitised Debt securities – – 1.2 Securities Awaited Listing:1.2.1 Equity Shares – – 1.2.2 Preference Shares – – 1.2.3 Equity Linked Debentures – – 1.2.4 Other Debentures & Bonds – – 1.2.5 Securitised Debt securities – – 1.3 Unlisted Securities1.3.1 Equity Shares – – 1.3.2 Preference Shares – – 1.3.3 Equity Linked Debentures – – 1.3.4 Other Debentures & Bonds – 199.56 1.3.5 Securitised Debt securities 28.20 40.09 1.4 Government Securities 2,164.57 287.77 1.5 Treasury Bills – – 1.6 Commercial Paper – – 1.7 Certifi cate of Deposits 1,838.17 1,204.74 1.8 Bill Rediscounting – – 1.9 Units of Domestic Mutual Fund – – 1.10 Foreign Securities – –

Total Investments 8,291.51 3,140.68 2 Deposits 9.60 – 3 Other Current Assets3.1 Cash & Bank Balance 133.40 27.91 3.2 CBLO / Reverse Repo Lending 158.47 49.28 3.3 Others 700.47 362.76 4 Deferred Revenue Expenditure – –


TOTAL 9,293.45 3,580.63



13

HSBC INCOME FUND

Abridged Balance Sheet as at March 31, 2013 (Contd...)

Rs. in Lakhs

HSBC INCOME FUND – SHORT TERM PLANAs at

March 31, 2013As at

March 31, 2012

LIABILITIES1 Unit Capital 89,064.58 44,071.40 2 Reserves & Surplus2.1 Unit Premium Reserves 4,661.02 2,250.42 2.2 Unrealised Appreciation Reserve 300.80 – 2.3 Other Reserves 9,489.23 3,092.04 3 Loans & Borrowings – – 4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – – 4.2 Other Current Liabilities & Provisions 600.44 595.53

TOTAL 104,116.07 50,009.39

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – – 1.1.2 Preference Shares – – 1.1.3 Equity Linked Debentures – – 1.1.4 Other Debentures & Bonds 51,849.28 22,149.46 1.1.5 Securitised Debt Securities – – 1.2 Securities Awaited Listing:1.2.1 Equity Shares – – 1.2.2 Preference Shares – – 1.2.3 Equity Linked Debentures – – 1.2.4 Other Debentures & Bonds – – 1.2.5 Securitised Debt securities – – 1.3 Unlisted Securities1.3.1 Equity Shares – – 1.3.2 Preference Shares – – 1.3.3 Equity Linked Debentures – – 1.3.4 Other Debentures & Bonds 2,834.95 1,796.06 1.3.5 Securitised Debt Securities – – 1.4 Government Securities – – 1.5 Treasury Bills – – 1.6 Commercial Paper 3,152.41 – 1.7 Certifi cate of Deposits 42,637.52 23,349.20 1.8 Bill Rediscounting – – 1.9 Units of Domestic Mutual Fund – – 1.10 Foreign Securities – –

Total Investments 100,474.16 47,294.72 2 Deposits 12.45 253.47 3 Other Current Assets3.1 Cash & Bank Balance 64.56 12.29 3.2 CBLO / Reverse Repo Lending 908.96 1,572.63 3.3 Others 2,655.94 876.28 4 Deferred Revenue Expenditure – –


TOTAL 104,116.07 50,009.39


14

HSBC INCOME FUND

Rs. in Lakhs

HSBC INCOME FUND – INVESTMENT PLANCurrent


Previous Year ended

March 31, 2012

1 INCOME1.1 Dividend – – 1.2 Interest 408.33 217.70 1.3 Realised Gain / (Loss) on Foreign Exchange Transactions – – 1.4 Realised Gains / (Losses) on Interscheme sale of investments – – 1.5 Realised Gains / (Losses) on External sale / redemption of

investments 139.74 21.35

1.6 Realised Gains / (Losses) on Derivative Transactions – – 1.7 Other Income 10.33 0.01

(A) 558.40 239.06 2 EXPENSES 2.1 Management fees 43.58 26.50 2.2 Service tax on Management fees 5.39 2.73 2.3 Transfer agents fees and expenses 3.10 2.02 2.4 Custodian fees 0.48 0.39 2.5 Trusteeship fees 0.00 0.01 2.6 Commission to Agents * – – 2.7 Marketing & Distribution expenses 49.32 10.75 2.8 Audit fees 0.20 0.20 2.9 Investor Education Expenses 0.58 0.20 2.10 Other operating expenses 0.77 0.66 2.11 Expenses to be Reimbursed by the Investment Manager (14.62) –

(B) 88.80 43.26 3 NET REALISED GAINS / (LOSSES) FOR

THE YEAR (A - B = C) 469.60 195.80

4 Change in Unrealised Depreciation invalue of investments (D) 4.65 4.85


6 Change in unrealised appreciation inthe value of investments (F) (7.51) (0.82)

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 457.44 190.13

7.1 Add: Balance transfer from Unrealised Appreciation Reserve 7.51 0.82 7.2 Less: Balance transfer to Unrealised Appreciation Reserve – – 7.3 Add / (Less): Equalisation 2,388.07 221.89 7.4 Transfer from Reserve Fund 1,727.75 1,368.05


8 TOTAL 4,580.77 1,780.89

9 Dividend appropriation9.1 Income Distributed during the year 161.16 46.51 9.2 Tax on income distributed during the year 22.97 6.63





15

HSBC INCOME FUND

Abridged Revenue Account for the year ended March 31, 2013 (Contd...)

Rs. in Lakhs

HSBC INCOME FUND – SHORT TERM PLANCurrent


Previous Year ended

March 31, 2012

1 INCOME1.1 Dividend – – 1.2 Interest 7,873.12 4,532.75 1.3 Realised Gain / (Loss) on Foreign Exchange Transactions – – 1.4 Realised Gains / (Losses) on Interscheme sale of investments – – 1.5 Realised Gains / (Losses) on External sale / redemption of

investments 281.13 (6.19)

1.6 Realised Gains / (Losses) on Derivative Transactions – – 1.7 Other Income 27.26 0.21

(A) 8,181.51 4,526.77

2 EXPENSES 2.1 Management fees 336.31 156.00 2.2 Service tax on Management fees 41.57 16.07 2.3 Transfer agents fees and expenses 42.31 28.67 2.4 Custodian fees 16.58 9.21 2.5 Trusteeship fees 0.03 0.08 2.6 Commission to Agents * – – 2.7 Marketing & Distribution expenses 527.02 258.26 2.8 Audit fees 1.66 1.55 2.9 Investor Education Expenses 10.27 1.55 2.10 Other operating expenses 6.42 1.65 2.11 Expenses to be Reimbursed by the Investment Manager – (19.07)

(B) 982.17 452.42 3 NET REALISED GAINS / (LOSSES) FOR

THE YEAR (A - B = C) 7,199.34 4,074.35

4 Change in Unrealised Depreciation invalue of investments (D) (89.04) 93.76


6 Change in Unrealised appreciation inthe value of investments (F) 300.80 (44.88)


7.1 Add: Balance transfer from Unrealised Appreciation Reserve (300.80) 44.88 7.2 Less: Balance transfer to Unrealised Appreciation Reserve – – 7.3 Add / (Less): Equalisation 4,290.22 1,479.36 7.4 Transfer from Reserve Fund 3,092.03 1,060.80


8 TOTAL 14,670.63 6,520.75

9 Dividend appropriation9.1 Income Distributed during the year 4,480.32 2,922.10 9.2 Tax on income distributed during the year 701.09 506.62




16

HSBC INCOME FUND


HSBC INCOME FUND –INVESTMENT PLAN

Current Year ended March 31, 2013

Previous Year ended March 31, 2012


Regular Growth Option 18.3173 16.8253Regular Dividend Option – –Regular Quarterly Dividend Option 11.1764 10.9288Regular Weekly Dividend Option – –Regular Monthly Dividend Option – –Institutional Growth Option – –Institutional Dividend Option – –Institutional Weekly Dividend Option – –Institutional Monthly Dividend OptionInstitutional Plus Growth Option – –Institutional Plus Weekly Dividend Option – –Institutional Plus Monthly Dividend Option – –Direct Plan - Growth Option N.A. N.A.Direct Plan - Dividend Option N.A. N.A.Direct Plan - Weekly Dividend Option N.A. N.A.Direct Plan - Monthly Dividend Option N.A. N.A.Direct Plan - Quarterly Dividend Option N.A. N.A.

HighRegular Growth Option 20.3373 18.3181Regular Dividend Option 11.6100 11.4274Regular Quarterly Dividend Option – –Regular Weekly Dividend Option – –Institutional Growth Option – –Institutional Dividend Option – –Institutional Weekly Dividend Option – –Institutional Plus Growth Option – –Institutional Plus Weekly Dividend Option – –Institutional Plus Monthly Dividend Option – –Direct Plan - Growth Option 20.3949 N.A.Direct Plan - Dividend Option – N.A.Direct Plan - Weekly Dividend Option – N.A.Direct Plan - Monthly Dividend Option – N.A.Direct Plan - Quarterly Dividend Option – N.A.

LowRegular Growth Option 18.3125 16.8415Regular Dividend Option 11.1735 10.9393Regular Quarterly Dividend Option – –Regular Weekly Dividend Option – –Institutional Growth Option – –Institutional Dividend Option – –Institutional Weekly Dividend Option – –Institutional Plus Growth Option – –Institutional Plus Weekly Dividend Option – –Institutional Plus Monthly Dividend Option – –

17

HSBC INCOME FUND





Direct Plan - Growth Option 20.0436 N.A.Direct Plan - Dividend Option – N.A.Direct Plan - Weekly Dividend Option – N.A.Direct Plan - Monthly Dividend Option – N.A.Direct Plan - Quarterly Dividend Option – N.A.

End5

Regular Growth Option 20.3378 18.3173Regular Dividend Option 11.3637 11.1764Regular Quarterly Dividend Option – –Regular Weekly Dividend Option – –Regular Monthly Dividend Option – –Institutional Growth Option – –Institutional Dividend Option – –Institutional Weekly Dividend Option – –Institutional Plus Growth Option – –Institutional Plus Weekly Dividend Option – –Institutional Plus Monthly Dividend Option – –Direct Plan - Growth Option 20.3949 N.A.Direct Plan - Dividend Option – N.A.Direct Plan - Weekly Dividend Option – N.A.Direct Plan - Monthly Dividend Option – N.A.Direct Plan - Quarterly Dividend Option – N.A.


3. Gross income as % of AAuM2 12.02% 10.22%4. Expense Ratio: a. Total Expense as % of AAuM (planwise)

Regular Growth Option 1.91% 1.85%Regular Dividend Option – –Regular Quarterly Dividend Option 1.91% 1.85%Regular Weekly Dividend Option – –Institutional Growth Option – 0.00%Institutional Dividend Option – –Institutional Weekly Dividend Option – –Institutional Plus Growth Option – –Institutional Plus Weekly Dividend Option – –Institutional Plus Monthly Dividend Option – –Direct Plan - Growth Option 0.67% N.A.Direct Plan - Dividend Option – N.A.Direct Plan - Weekly Dividend Option – N.A.Direct Plan - Monthly Dividend Option – N.A.Direct Plan - Quarterly Dividend Option – N.A.

b. Management Fee as % of AAuM (planwise)Regular Growth Option 0.94% 1.13%Regular Dividend Option – –

18

HSBC INCOME FUND




Regular Quarterly Dividend Option 0.94% 1.13%Regular Weekly Dividend Option – –Institutional Growth Option – 0.00%Institutional Dividend Option – –Institutional Weekly Dividend Option – –Institutional Plus Growth Option – –Institutional Plus Weekly Dividend Option – –Institutional Plus Monthly Dividend Option – –Direct Plan - Growth Option 0.94% N.A.Direct Plan - Dividend Option – N.A.Direct Plan - Weekly Dividend Option – N.A.Direct Plan - Monthly Dividend Option – N.A.Direct Plan - Quarterly Dividend Option – N.A.

5. Net Income as a percentage of AAuM3 10.11% 8.37%6. Portfolio turnover ratio4 – –7. Total Dividend per unit distributed during the year (planwise) Retail

Regular Dividend Option – –Regular Weekly Dividend Option – –Regular Quarterly Dividend Option 0.8809 0.6167Regular Monthly Dividend Option – –Institutional Growth Option – –Institutional Dividend Option – –Institutional Weekly Dividend Option – –Institutional Plus Weekly Dividend Option – –Institutional Plus Monthly Dividend Option – –Direct Plan - Growth Option – N.A.Direct Plan - Dividend Option – N.A.Direct Plan - Weekly Dividend Option – N.A.Direct Plan - Monthly Dividend Option – N.A.Direct Plan - Quarterly Dividend Option – N.A.

CorporateRegular Dividend Option – –Regular Weekly Dividend Option – –Regular Quarterly Dividend Option 0.7550 0.5285Regular Monthly Dividend Option – –Institutional Growth Option – –Institutional Dividend Option – –Institutional Weekly Dividend Option – –Institutional Plus Weekly Dividend Option – –Institutional Plus Monthly Dividend Option – –Direct Plan - Growth Option – N.A.Direct Plan - Dividend Option – N.A.Direct Plan - Weekly Dividend Option – N.A.Direct Plan - Monthly Dividend Option – N.A.Direct Plan - Quarterly Dividend Option – N.A.


19

HSBC INCOME FUND




8. Returns(%): a. Last One Year Scheme

Regular Growth Option 11.0400 8.9500Regular Dividend Option 9.9100 8.1500Regular Quarterly Dividend Option N.A. N.A.Regular Weekly Dividend Option N.A. N.A.Institutional Growth Option N.A. N.A.Institutional Dividend Option N.A. N.A.Institutional Weekly Dividend Option N.A. N.A.Institutional Plus Growth Option N.A. N.A.Institutional Plus Weekly Dividend Option N.A. N.A.Institutional Plus Monthly Dividend Option N.A. N.A.Direct Plan - Growth Option N.A. N.A.Direct Plan - Dividend Option N.A. N.A.Direct Plan - Weekly Dividend Option N.A. N.A.Direct Plan - Monthly Dividend Option N.A. N.A.Direct Plan - Quarterly Dividend Option N.A. N.A.

BenchmarkCRISIL Composite Bond Fund Index 9.3000 7.6915


Regular Growth Option 7.1300 6.7200Regular Dividend Option 6.4100 6.0400Regular Quarterly Dividend Option N.A. N.A.Regular Weekly Dividend Option N.A. N.A.Institutional Growth Option N.A. N.A.Institutional Dividend Option N.A. N.A.Institutional Weekly Dividend Option N.A. N.A.Institutional Plus Growth Option N.A. N.A.Institutional Plus Weekly Dividend Option N.A. N.A.Institutional Plus Monthly Dividend Option N.A. N.A.Direct Plan - Growth Option 1.8200 N.A.Direct Plan - Dividend Option N.A. N.A.Direct Plan - Weekly Dividend Option N.A. N.A.Direct Plan - Monthly Dividend Option N.A. N.A.Direct Plan - Quarterly Dividend Option N.A. N.A.

BenchmarkCRISIL Composite Bond Fund Index 5.8600 5.4951

1 AAuM = Average daily net assets.2 Gross income = amount against (A) in the Revenue Account i.e. Income.3 Net income = amount against (C) in the Revenue Account i.e. Net Realised Gains / (Losses) for the year.4 Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year.5 The net asset value disclosed represents the computed NAV on March 31, 2013 (Non-business Day), and



20

HSBC INCOME FUND

HSBC INCOME FUND –SHORT TERM PLAN




Regular Growth Option 17.9326 16.5419Regular Dividend Option 10.9290 10.9778Regular Quarterly Dividend Option – –Regular Weekly Dividend Option 10.1597 10.1741Regular Monthly Dividend Option – –Institutional Growth Option 14.2427 13.0988Institutional Dividend Option 10.4851 10.2283Institutional Weekly Dividend Option 10.5156 10.4701Institutional Monthly Dividend OptionInstitutional Plus Growth Option 10.3022 –Institutional Plus Weekly Dividend Option 10.0577 10.0553Institutional Plus Monthly Dividend Option – 10.0540Direct Plan - Growth Option N.A. N.A.Direct Plan - Dividend Option N.A. N.A.Direct Plan - Weekly Dividend Option N.A. N.A.Direct Plan - Monthly Dividend Option N.A. N.A.Direct Plan - Quarterly Dividend Option N.A. N.A.

HighRegular Growth Option 19.5968 17.9326Regular Dividend Option 11.0861 11.0433Regular Quarterly Dividend OptionRegular Weekly Dividend Option 10.2477 10.1941Institutional Growth Option 15.6467 14.2427Institutional Dividend Option 10.6414 10.5804Institutional Weekly Dividend Option 11.5522 10.9032Institutional Plus Growth Option 11.3291 10.3022Institutional Plus Weekly Dividend Option 10.0948 10.0711Institutional Plus Monthly Dividend Option – 10.1084Direct Plan - Growth Option 19.6364 N.A.Direct Plan - Dividend Option 11.1040 N.A.Direct Plan - Weekly Dividend Option 10.2172 N.A.Direct Plan - Monthly Dividend Option – N.A.Direct Plan - Quarterly Dividend Option – N.A.

LowRegular Growth Option 17.9504 16.5559Regular Dividend Option 10.9228 10.9265Regular Quarterly Dividend Option –Regular Weekly Dividend Option 10.1540 10.1495Institutional Growth Option 14.2571 13.2371Institutional Dividend Option 10.4791 10.2406Institutional Weekly Dividend Option 10.5263 10.2863Institutional Plus Growth Option 10.3127 10.0000Institutional Plus Weekly Dividend Option 10.0000 10.0553Institutional Plus Monthly Dividend Option – 10.0084


21

HSBC INCOME FUND




Direct Plan - Growth Option 19.2638 N.A.Direct Plan - Dividend Option 10.9920 N.A.Direct Plan - Weekly Dividend Option 10.1800 N.A.Direct Plan - Monthly Dividend Option – N.A.Direct Plan - Quarterly Dividend Option – N.A.

End5

Regular Growth Option 19.5968 17.9326Regular Dividend Option 10.9993 10.9290Regular Quarterly Dividend Option – –Regular Weekly Dividend Option 10.2024 10.1597Regular Monthly Dividend Option – –Institutional Growth Option 15.6467 14.2427Institutional Dividend Option 10.6388 10.4851Institutional Weekly Dividend Option 11.5522 10.5156Institutional Plus Growth Option 11.3291 10.3022Institutional Plus Weekly Dividend Option 10.0164 10.0577Institutional Plus Monthly Dividend Option – –Direct Plan - Growth Option 19.6364 N.A.Direct Plan - Dividend Option 11.0004 N.A.Direct Plan - Weekly Dividend Option 10.2032 N.A.Direct Plan - Monthly Dividend Option N.A. N.A.Direct Plan - Quarterly Dividend Option N.A. N.A.



Regular Growth Option 1.26% 1.00%Regular Dividend Option 1.26% 1.00%Regular Quarterly Dividend Option 1.26% –Regular Weekly Dividend Option 1.26% 1.00%Institutional Growth Option 0.72% 0.70%Institutional Dividend Option 0.72% 0.70%Institutional Weekly Dividend Option 0.72% 0.70%Institutional Plus Growth Option 0.62% 0.60%Institutional Plus Weekly Dividend Option 0.62% 0.60%Institutional Plus Monthly Dividend Option 0.60%Direct Plan - Growth Option 0.45% N.A.Direct Plan - Dividend Option 0.45% N.A.Direct Plan - Weekly Dividend Option 0.45% N.A.Direct Plan - Monthly Dividend Option – N.A.Direct Plan - Quarterly Dividend Option – N.A.

b. Management Fee as % of AAuM (planwise)Regular Growth Option 0.39% 0.32%Regular Dividend Option 0.39% 0.32%


22

HSBC INCOME FUND




Regular Quarterly Dividend Option – –Regular Weekly Dividend Option 0.39% 0.32%Institutional Growth Option 0.39% 0.32%Institutional Dividend Option 0.39% 0.32%Institutional Weekly Dividend Option 0.39% 0.32%Institutional Plus Growth Option 0.39% 0.32%Institutional Plus Weekly Dividend Option 0.39% 0.32%Institutional Plus Monthly Dividend Option 0.39% 0.32%Direct Plan - Growth Option 0.39% N.A.Direct Plan - Dividend Option 0.39% N.A.Direct Plan - Weekly Dividend Option 0.39% N.A.Direct Plan - Monthly Dividend Option 0.39% N.A.Direct Plan - Quarterly Dividend Option 0.39% N.A.


Regular Dividend Option 0.7993 0.8240Regular Weekly Dividend Option 0.7593 0.7360Regular Quarterly Dividend Option – –Regular Monthly Dividend Option – –Institutional Growth Option – –Institutional Dividend Option 0.7401 0.5468Institutional Weekly Dividend Option – 0.7391Institutional Plus Weekly Dividend Option 0.3727 0.7492Institutional Plus Monthly Dividend Option – 0.7158Direct Plan - Growth Option – N.A.Direct Plan - Dividend Option 0.1442 N.A.Direct Plan - Weekly Dividend Option 0.0898 N.A.Direct Plan - Monthly Dividend Option – N.A.Direct Plan - Quarterly Dividend Option – N.A.

CorporateRegular Dividend Option 0.6850 0.7171Regular Weekly Dividend Option 0.6508 0.6394Regular Quarterly Dividend Option – –Regular Monthly Dividend Option – –Institutional Growth Option – –Institutional Dividend Option 0.6343 0.4687Institutional Weekly Dividend Option – 0.6335Institutional Plus Weekly Dividend Option 0.3195 0.6495Institutional Plus Monthly Dividend Option – 0.6239Direct Plan - Growth Option – N.A.Direct Plan - Dividend Option 0.1236 N.A.Direct Plan - Weekly Dividend Option 0.0769 N.A.Direct Plan - Monthly Dividend Option – N.A.Direct Plan - Quarterly Dividend Option – N.A.


23

HSBC INCOME FUND




8. Returns(%): a. Last One Year Scheme

Regular Growth Option 9.4200 8.5200Regular Dividend Option 8.3600 7.4300Regular Quarterly Dividend Option N.A. N.A.Regular Weekly Dividend Option 8.3300 7.4500Institutional Growth Option 10.0000 8.8400Institutional Dividend Option 8.9700 8.0900Institutional Weekly Dividend Option 10.0000 7.8300Institutional Plus Growth Option 10.1100 N.A.Institutional Plus Weekly Dividend Option 6.9200 7.8000Institutional Plus Monthly Dividend Option N.A. N.A.Direct Plan - Growth Option N.A. N.A.Direct Plan - Dividend Option N.A. N.A.Direct Plan - Weekly Dividend Option N.A. N.A.Direct Plan - Monthly Dividend Option N.A. N.A.Direct Plan - Quarterly Dividend Option N.A. N.A.

BenchmarkCRISIL Short-Term Bond Fund Index 9.10 8.3262


Regular Growth Option 6.7600 6.4700Regular Dividend Option 6.0500 5.8000Regular Quarterly Dividend Option N.A. N.A.Regular Weekly Dividend Option 6.2700 5.8900Institutional Growth Option 4.2600 3.6000Institutional Dividend Option 4.4300 3.9100Institutional Weekly Dividend Option 6.4400 5.7800Institutional Plus Growth Option 3.1200 N.A.Institutional Plus Weekly Dividend Option 5.5100 5.1500Institutional Plus Monthly Dividend Option N.A. N.A.Direct Plan - Growth Option 2.1100 N.A.Direct Plan - Dividend Option 1.2500 N.A.Direct Plan - Weekly Dividend Option 0.9800 N.A.Direct Plan - Monthly Dividend Option N.A. N.A.Direct Plan - Quarterly Dividend Option N.A. N.A.

BenchmarkCRISIL Short-Term Bond Fund Index 6.4300 6.1476

1 AAuM = Average daily net assets.2 Gross income = amount against (A) in the Revenue Account i.e. Income.3 Net income = amount against (C) in the Revenue Account i.e. Net Realised Gains / (Losses) for the year.4 Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year.5 The net asset value disclosed represents the computed NAV on March 31, 2013 (Non-business Day), and



24

HSBC INCOME FUND


HSBC INCOME FUND

1 Investments:-






by all schemes


by all schemes

2013 2012


Fixed deposits

– – – 32,000,000

1.4 Open position of Securities Borrowed and / or Lent by the Scheme as of the years ended March 31, 2013 and March 31, 2012 are NIL.

1.5 NPAs for the Scheme for the years ended March 31, 2013 and March 31, 2012 are NIL.

1.6 Aggregate Unrealised Gain / Loss as at the end of the fi nancial years 2013 and 2012 and their percentages to net assets are as under :


INVESTMENT PLAN SHORT TERM PLAN

Amount (Rupees)


Amount (Rupees)



– Appreciation 1,063,680 0.12% 29,555,616 0.29%

– Depreciation 23,530 0.00% ~ 1,472,104 0.01%

Certifi cate of Deposits

– Appreciation 196,778 0.02% 2,017,844 0.02%

– Depreciation 83,264 0.01% 2,491,787 0.02%

Asset Backed Securities


– Depreciation 144,464 0.02% – –


– Appreciation 14,545 0.00% ~ – –

– Depreciation 1,303,656 0.15% – –


25

HSBC INCOME FUND


INVESTMENT PLAN SHORT TERM PLAN

Amount (Rupees)


Amount (Rupees)



– Appreciation 100,796 0.03% 807,457 0.02%

– Depreciation 376,696 0.11% 4,851,826 0.10%


– Appreciation 402,603 0.12% 1,619,823 0.03%

– Depreciation – – 6,952,994 0.14%

Asset Backed Securities


– Depreciation 309,223 0.09% – –



– Depreciation 382,956 0.11% – –

1.7 The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2012-2013 (excluding accretion of discount) are Rs. 4,706,833,538 and Rs. 4,208,469,888 respectively being 1,012.93% and 905.68% of the average daily net assets for Investment Plan and Rs.22,701,435,356 and Rs. 17,761,204,981 respectively being 263.90% and 206.47% of the average daily net assets for Short Term Plan.

The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2011-2012 (excluding accretion of discount) are Rs. 3,156,271,901 and Rs. 3,040,108,208 respectively being 1349.59% and 1299.92% of the average daily net assets for Investment Plan and Rs. 19,480,089,157 and Rs. 16,615,758,000 respectively being 404.13% and 344.70% of the average daily net assets for Short Term Plan.


Aggregate Value of Equity, Debt & Money Market Instruments and percentage to net assets are as under:

INVESTMENT PLAN

Security Category Fair Value (Rupees)


Fair Value (Rupees)


2013 2012

Debt Instruments 428,876,612 47.77% 164,817,362 78.07%

Money market Instruments 183,816,745 20.47% 120,474,343 57.06%

Total 612,693,357 68.25% 285,291,705 135.13%

SHORT TERM PLANSecurity Category Fair Value

(Rupees)Percentage to

Net AssetsFair Value (Rupees)


2013 2012

Debt Instruments 5,468,424,161 52.83% 2,394,552,581 –

Money market Instruments 4,578,993,084 44.23% 2,334,919,812 142.19%

Total 10,047,417,245 97.06% 4,729,472,393 142.19%


26

HSBC INCOME FUND


During the year 2012-2013, The Hong Kong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid collection/bank charges amounting to Rs. 14,400 for the Investment and Nil for Short Term Plan.

During the year 2011-2012, The Hong Kong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid collection/bank charges amounting to Rs. 32,076 for the Investment Plan and Rs. 7,350 for the Short Term Plan.





Relation

Period Covered



Commission paid

[Rupees]


Fund

INVESTMENT PLAN


Associate 2012-2013 7.04 7.53 1,443,592 16.80


SHORT TERM PLAN


Associate 2012-2013 926.80 70.41 38,057,492 79.93




Relation

Period Covered



Commission paid

[Rupees]


Fund

INVESTMENT PLAN


Associate 2011-2012 16.11 90.03 780,338 41.80


SHORT TERM PLAN


Associate 2011-2012 947.25 80.57 36,594,428 74.50




3 None of the Investors held more than 25% of the total net assets of Investment Plan and Short Term Plan as at the years ended on March 31, 2013 and March 31, 2012.


27

HSBC INCOME FUND


INVESTMENT PLAN

Description Opening Units Subscription Redemption Closing Units Face Value per Unit (Rs.)

2012-2013

Regular Dividend Option

12,511,711.693 32,246,431.523 25,363,960.559 19,394,182.657 10

Regular Growth Option

11,289,177.633 28,107,872.695 6,361,792.710 33,035,257.618 10


– 270,964.576 – 270,964.576 10

2011-2012Description Opening Units Subscription Redemption Closing Units Face Value

per Unit (Rs.)


4,446,271.358 10,469,342.072 2,403,901.737 12,511,711.693 10


9,659,776.707 3,229,818.718 1,600,417.792 11,289,177.633 10

SHORT TERM PLAN


2012-2013


189,739,498.135 485,522,821.357 304,557,167.165 370,705,152.327 10


37,385,177.849 78,505,777.953 53,594,113.054 62,296,842.748 10

Regular Weekly Dividend Option

164,471,325.280 336,961,936.550 272,088,460.544 229,344,801.286 10

Institutional Dividend Option

5,802,837.692 2,537,627.329 7,765,748.992 574,716.029 10

Institutional Growth Option

5,567,054.565 421,884.758 4,838,759.576 1,150,179.747 10

Institutional Weekly Dividend Option

599,442.020 – – 599,442.020 10

Institutional Plus Growth Option

25,660,026.111 198,640,821.722 36,814,457.554 187,486,390.279 10

Institutional Plus Weekly Dividend Option

11,488,632.894 25,434,885.608 16,760,080.566 20,163,437.936 10


– 17,929,537.776 – 17,929,537.776 10


– 286,992.438 – 286,992.438 10

Direct Plan - Weekly Dividend Option

– 108,286.444 – 108,286.444 10


28

HSBC INCOME FUND

SHORT TERM PLAN

Description Opening Units Subscription Redemption Closing Units Face Value

per unit (Rupees)

2011-2012


53,760,417.065 398,691,379.814 262,712,298.744 189,739,498.135 10


13,993,341.142 87,818,487.849 64,426,651.142 37,385,177.849 10


58,803,339.171 378,977,364.132 273,309,378.023 164,471,325.280 10

Institutional Dividend Option

3,012,332.350 27,177,997.463 24,387,492.121 5,802,837.692 10


2,014,163.598 25,332,405.119 21,779,514.152 5,567,054.565 10


564,532.171 46,063,523.346 46,028,613.497 599,442.020 10


– 34,093,188.786 8,433,162.675 25,660,026.111 10


10,770,516.766 21,345,442.765 20,627,326.637 11,488,632.894 10

Institutional Plus Monthly Dividend Option

5,048,530.923 25,649,618.929 30,698,149.852 – 10


6 No contingent liabilities for Investment Plan and Short Term Plan for the years ended March 31, 2013 and March 31, 2012.


8 Other Income of Rs. 1,032,995 (2012: Rs.1,137) in Investment Plan and Rs. 2,726,345 (2012: Rs.21,563) in Short Term Plan represents Exit load (net of service tax) credited to the Scheme.



Similar to AY 2009-2010, HSBC MF has received a demand notice from the Income Tax Authorities for the A.Y. 2010-2011 for Rs. 6.95 crores. HSBC MF, through its trustees, fi led a writ petition before the Bombay High Court and obtained necessary reliefs for stay of the impugned demand till the adjudication


29

HSBC INCOME FUND

of the appeal by the fi rst Appellate Authority and six weeks thereafter. The appeal has been preferred by the appellant to the fi rst Appellate Authority which is pending to be heard.





30

HSBC INCOME FUND

















31

HSBC INCOME FUND
















32

HSBC INCOME FUND

Det

ails

of t

he P

roxy

Vot

es e

xerc

ised

in G

ener

al M

eetin

gs o

f the

Lis

ted

Com

pani

es fo

r the

fi na

ncia

l yea

r end

ed 2

012-

13M

anag

emen

t Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

05-A

pr-2

012

CRI

SIL

Ltd.

Oth

er M

eetin

g�

For

Abs

tain

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

��

�Fo

rFo

r

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

For

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

20-A

pr-2

012

FAG

Bea

rings

Ltd

.A

nnua

l Gen

eral

Mee

ting

��

��

�Fo

rA

bsta

in

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

Abs

tain

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

For

26-N

ov-2

012

Indo

Tech

Tra

nsfo

rmer

s Lt

d.O

ther

Mee

ting

�Fo

rFo

r

Shar

eho

lder

s Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

Nil

Cat

ego

ry1

Alte

ratio

n in

Mem

oran

dum

of

Ass

ocia

tion

of t

he c

ompa

ny c

onta

inin

g M

ain,

Anc

illar

y an

d O

ther

obj

ects

of

the

com

pany

2 Re

ceiv

e, c

onsi

der

and

adop

t th

e A

udite

d Ba

lanc

e Sh

eet

as a

t ye

ar e

nd t

he P

rofi t

and

Los

s A

ccou

nt f

or t

he y

ear

ende

d on

tha

t da

te a

nd t

he R

epor

ts o

f th

e D

irect

ors

and

the

Aud

itors

the

reon

3 D

ecla

ratio

n of

div

iden

d on

Ord

inar

y (E

quity

) Sha

res

and

/ or

Pref

eren

ce s

hare

s4

App

oint

men

t, R

e-ap

poin

tmen

t an

d Re

mov

al o

f D

irect

ors

/ Add

ition

al D

irect

ors

5 A

ppoi

ntm

ent,

Re-

appo

intm

ent

and

Rem

oval

of

Aud

itors

6 St

ock

Opt

ion

plan

s an

d ot

her

man

agem

ent

com

pens

atio

n m

atte

rs7

Rest

ruct

urin

g of

Sha

re c

apita

l (in

clud

ing

stoc

k sp

lits,

con

solid

atio

n, r

educ

tion,

etc

. of

shar

e ca

pita

l)8

Cha

nges

in c

apita

l str

uctu

re in

clud

ing

incr

ease

s an

d de

crea

ses

of E

quity

& p

refe

rred

sto

ck /

war

rant

issu

ance

s9

Cor

pora

te r

estr

uctu

ring

mat

ters

(inc

ludi

ng m

erge

rs, a

cqui

sitio

ns, t

akeo

vers

, sel

l-off

s, t

rans

fer

of c

ontr

ol, c

hang

es in

sta

te o

f in

corp

orat

ion,

Del

isitn

g)




HSBC INCOME FUND

HSBC Floating Rate Fund An open-ended Income Scheme


HSBC FLOATING RATE FUND - LONG TERM PLAN

1


Dear Investor,







Market Outlook:





2






Yours sincerely,

Puneet Chaddha



3















4






HSBC Floating Rate Fund - Long Term Plan (HFRF - LTP) - an open-ended Income Scheme

HFRF seeks to generate reasonable return with commensurate risk from a portfolio comprised of fl oating rate debt instruments and fi xed rate debt instruments swapped for fl oating rate returns. The scheme may also invest in fi xed rate money market and debt instruments.

The net assets of the HFRF - LTP amounted to Rs. 232.34 crores as at March 31, 2013 as compared to Rs. 283.10 crores as at March 31, 2012. Around 110.79% of the net assets were invested in money market instruments. Around 0.11% was invested in reverse repos/CBLO and (-10.91%) were in net current assets as at March 31, 2013.

HFRF-LTP outperformed its benchmark by focusing on accruals and investing in the shorter-end of the yield curve.

Date of Inception : 16 November, 2004 Simple Annualized (%) Compounded Annualized (%)




Since Inception

HSBC FRF - LTP - Growth 9.17 9.38 6.50 7.50


CRISIL Liquid Fund Index (Scheme Benchmark) 8.22 8.45 6.21 6.67

Rs. 10,000, if invested in HFRF - LTP - Growth, would have become

10,917 10,938 10,650 18,340


10,837 10659 10,386 15,869

Rs. 10,000, if invested in CRISIL Liquid Fund Index, would have become

10,822 10845 10,621 17,186



EQUITY OUTLOOK



NIFTY 7.31

Sensex 8.23

S&P BSE 100 6.84

S&P BSE 200 6.03

S&P BSE 500 4.81

CNX Midcap -4.02

Source: Bloomberg

5









DEBT OUTLOOK











6
















7





Amount (Rs.)

No. of Investors

Amount (Rs.)

No. of Investors

HSBC Floating Rate Fund- Long Term Plan

41,940.78 60 14,800.65 5





Com-plaintCode

Type of complaint#


beginningof theyear


receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 3 3 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


2 40 22 18 2 0 0 0 0 0 0


0 2 1 1 0 0 0 0 0 0 0


0 9 9 0 0 0 0 0 0 0 0


0 6 5 0 0 0 0 1 0 0 0


0 277 277 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0

8



Com-plaintCode

Type of complaint#


beginningof theyear


receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 18 18 0 0 0 0 0 0 0 0

IV Others 0 14 12 1 1 0 0 0 0 0 0

Total 2 369 347 20 3 0 0 1 0 0 0

Note:









Sd/-

Dilip J. Thakkar

Trustee

MUMBAIJuly 16, 2013

9




HSBC Mutual Fund

Report on the Financial Statements1. We have audited the accompanying fi nancial statements of HSBC Mutual Fund - HSBC Floating Rate

Fund - Long Term Plan (the “Scheme”), which comprise the Balance Sheet as at March 31, 2013, and the related Revenue Account for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.













10







Sd/-



11


Rs. in Lakhs

HSBC FLOATING RATE FUND – LONG TERM PLAN

As at March 31, 2013


LIABILITIES1 Unit Capital 18,381.34 24,842.312 Reserves & Surplus2.1 Unit Premium Reserves 1,518.78 2,159.542.2 Unrealised Appreciation Reserve 2.52 –2.3 Other Reserves 3,331.19 1,308.303 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income/Deposits – –4.2 Other Current Liabilities & Provisions 2,545.87 115.87

TOTAL 25,779.70 28,426.02

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt Securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt Securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt Securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper 3,419.04 –1.7 Certifi cate of Deposits 19,837.48 28,306.681.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –


2 Deposits 2.44 –3 Other Current Assets3.1 Cash & Bank Balance 8.63 1.783.2 CBLO/Reverse Repo Lending 20.05 76.243.3 Others 2,492.06 41.324 Deferred Revenue Expenditure – –


TOTAL 25,779.70 28,426.02



12



Rs. in Lakhs

HSBC FLOATING RATE FUND – LONG TERM PLAN

Current Year ended

March 31, 2013

Previous Year ended

March 31, 2012

1 INCOME1.1 Dividend – –1.2 Interest 3,496.95 3,948.801.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of investments (18.41) (6.27)1.6 Realised Gains / (Losses) on Derivative Transactions – –1.7 Other Income – 1.12

(A) 3,478.54 3,943.65

2 EXPENSES2.1 Management fees 82.27 84.962.2 Service tax on Management fees 10.17 8.752.3 Transfer agents fees and expenses 17.56 23.262.4 Custodian fees 7.31 8.062.5 Trusteeship fees 0.03 0.072.6 Commission to Agents * – –2.7 Marketing & Distribution expenses 45.13 35.622.8 Audit fees 0.37 0.902.9 Investor Education Expenses 3.28 0.902.10 Other operating expenses 2.68 3.47

(B) 168.80 165.09


4 Change in Unrealised Depreciation invalue of investments (D) – –


6 Change in unrealised appreciation inthe value of investments (F) 2.52 –


7.1 Add: Balance transfer from UnrealisedAppreciation Reserve

– –

7.2 Less: Balance transfer to Unrealised Appreciation Reserve 2.52 –7.3 Add / (Less): Equalisation 1,370.57 (9.30)7.4 Transfer from Reserve Fund 1,308.29 627.97


8 TOTAL 5,988.60 4,397.23

9 Dividend appropriation9.1 Income Distributed during the year 2,070.74 2,435.789.2 Tax on income distributed during the year 586.67 653.15

10 Retained Surplus / (Defi cit) carriedforward to Balance sheet 3,331.19 1,308.30



13



HSBC FLOATING RATE FUND – LONG TERM PLANCurrent


Previous Year ended

March 31, 2012


Regular Growth Option 16.3062 15.0055

Regular Daily Dividend Option 10.1111 10.0547

Regular Weekly Dividend Option 10.0073 10.0049

Regular Monthly Dividend Option 10.0028 10.0130

Institutional Growth Option 16.7933 15.3589

Institutional Daily Dividend Option – –

Institutional Weekly Dividend Option 11.2330 11.2296

Institutional Fortnightly Dividend Option – 9.9998

Institutional Monthly Dividend Option 10.1380 10.3028


Direct Plan - Weekly Dividend Option N.A. N.A.

Direct Plan - Fortnightly Dividend Option N.A. N.A.

Direct Plan - Monthly Dividend Option N.A. N.A. High








Institutional Fortnightly Dividend Option 10.0346 10.0265



Direct Plan - Weekly Dividend Option 11.2519 N.A.

Direct Plan - Fortnightly Dividend Option 10.0353 N.A.

Direct Plan - Monthly Dividend Option 10.2129 N.A. Low













Direct Plan - Monthly Dividend Option 10.1765 N.A.

14





Previous Year ended

March 31, 2012

End5


Regular Daily Dividend Option – 10.1111






Institutional Fortnightly Dividend Option – –







End 23,234 28,310

Average (AAuM)1 37,932 42,474


4. Expense Ratio:


Regular Growth Option 1.27% 1.00%

Regular Daily Dividend Option 1.27% 1.00%

Regular Weekly Dividend Option 1.27% 1.00%

Regular Monthly Dividend Option 1.27% 1.00%

Institutional Growth Option 0.31% 0.30%

Institutional Daily Dividend Option – 0.30%

Institutional Weekly Dividend Option 0.31% 0.30%

Institutional Fortnightly Dividend Option 0.31% 0.30%

Institutional Monthly Dividend Option 0.31% 0.30%

Institutional Plus Growth Option – –


Direct Plan - Weekly Dividend Option 0.16% N.A.

Direct Plan - Fortnightly Dividend Option 0.16% N.A.

Direct Plan - Monthly Dividend Option 0.16% N.A.





15





Previous Year ended

March 31, 2012

Regular Monthly Dividend Option 0.22% 0.20%


Institutional Daily Dividend Option – 0.20%


Institutional Fortnightly Dividend Option 0.22% 0.20%


Institutional Plus Growth Option 0.22% –



Direct Plan - Fortnightly Dividend Option 0.22% N.A.



6. Portfolio turnover ratio4 – –


Retail








Direct Plan - Growth Option – N.A.




Corporate












16





Previous Year ended

March 31, 2012

8. Returns (%):

a. Last One Year

Scheme








Institutional Fortnightly Dividend Option – 8.0300

Institutional Monthly Dividend Option 8.2600 –



Direct Plan - Fortnightly Dividend Option N.A. N.A.

Direct Plan - Monthly Dividend Option N.A. N.A.

Benchmark

CRISIL Liquid Fund Index 8.2300 8.4727

b. Since Inception

Scheme






Institutional Daily Dividend Option 1.6100 –


Institutional Fortnightly Dividend Option 3.8000 –






Benchmark

CRISIL Liquid Fund Index 6.6600 6.4560

1. AAuM = Average daily net assets2. Gross income = amount against (A) in the Revenue account i.e. Income3. Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the year4. Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year5. The net asset value disclosed represents the computed NAV on March 31, 2013 (Non-business Day),


17



HSBC FLOATING RATE FUND – LONG TERM PLAN1 Investments:


1.2 Open Positions of derivatives as of year ended March 31, 2013 and year ended March 31, 2012 are NIL.

1.3 Investments in Associates and Group Companies are as under :

(Rupees)



by all schemes


by all schemes

2013 2012


Fixed deposits

– – – 32,000,000



1.6 Aggregate Unrealised Gain / Loss as at the end of the Financial Year and percentage to net assets are :

Company Name Amount(Rs.)


Amount(Rs.)


2013 2012

Certifi cate of Deposits/Commercial Papers

– Appreciation 434,216 0.0210 – –

– Depreciation 181,770 0.0088 – –

1.7 The aggregate value of investments (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the year 2012-2013 (excluding accretion of discount) are Rs. 23,256,068,971 and Rs. 24,089,451,720 respectively being 613.09% and 635.06% of the average daily net assets.

The aggregate value of investments (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the year 2011-2012 (excluding accretion of discount) are Rs. 25,926,224,831 and Rs. 26,256,878,625 respectively being 610.41% and 618.19% of the average daily net assets.


Aggregate Value of Equity, Debt & Money Market Instruments and their percentages to Net assets are as under:

Security Category Fair Value Percentage to Net Assets

Fair Value Percentage to Net Assets

2012-2013 2011-2012

Money market Instruments 2,325,651,516 100.10% 2,830,668,048 99.99%

Total 2,325,651,516 100.10% 2,830,668,048 99.39%

18







Relation

Period Covered


% of Total Business




Fund


Associate 2012-2013 144.39 14.61 725,878 18.81


Associate 2012-2013 3.05 0.31 21,286 0.55



Relation

Period Covered


% of Total Business



(on accrual basis)


Fund


Associate 2011-2012 140.16 10.38 469,206 15.39


Associate 2011-2012 22.04 1.63 40,524 1.33



3 Large Holdings in the Scheme (i.e. in excess of 25% of the net assets) as at the years ended March 31, 2013 and March 31, 2012 are NIL.


Description

2012-2013

Opening Units Subscription Redemption Closing Units Face Value per unit

(Rs.)

Regular Growth Option 11,174,112.002 38,029,962.220 42,734,303.113 6,469,771.109 10

Regular Daily Dividend Option

65,411.670 2,746.207 68,157.877 – 10


35,580,736.918 46,852,394.637 71,425,990.608 11,007,140.947 10

Regular Monthly Dividend Option

7,910,957.546 4,389,781.941 7,721,222.639 4,579,516.848 10


7,724,187.118 168,689,501.929 143,651,976.694 32,761,712.353 10

Institutional Daily Dividend Option

– – – – 10

Institutional Fortnightly Dividend Option

– 893,755.031 893,755.031 – 10


19


Description

2012-2013

Opening Units Subscription Redemption Closing Units Face Value per unit

(Rs.)


180,724,113.239 485,252,257.384 551,902,161.120 114,074,209.503 10

Institutional Monthly Dividend Option

5,243,549.160 7,042,265.016 10,340,630.486 1,945,183.690 10


– 737,320.531 65,805.587 671,514.944 10


– 19,585,073.537 7,351,253.589 12,233,819.948 10

Direct Plan - Fortnightly Dividend Option

– 2,032.230 – 2,032.230 10

Direct Plan - Monthly Dividend Option

– 68,515.829 – 68,515.829 10

Description

2011-2012

Opening Units Subscription Redemption Closing Units Face Value per unit (Rs.)



111,803.369 7,868.237 54,259.936 65,411.670 10


26,396,693.202 64,897,134.574 55,713,090.858 35,580,736.918 10

Regular Monthly Dividend Option

9,872,507.205 11,199,205.694 13,160,755.353 7,910,957.546 10


3,751,043.829 194,360,019.279 190,386,875.990 7,724,187.118 10


– – – – 10

Institutional Fortnightly Dividend Option

1,690,340.648 29,134.340 1,719,474.988 – 10


199,473,167.069 804,734,544.322 823,483,598.152 180,724,113.239 10


1,532,573.674 5,347,691.621 1,636,716.135 5,243,549.160 10

5 Prior year amounts have been re-grouped/ re-arranged where necessary.



8 Other income of Rs. NIL (2012: Rs.111,671) represents Exit load (net of service tax) credited to the Scheme.

9 Garnishee Notice from Income Tax Authorities An Income tax demand of Rs. 32.58 crores was purported to be recovered under garnishee proceedings,

by Income Tax Authorities in respect of investments made in Pass through Certifi cates (PTC) by some of


20


the debt schemes (including matured schemes) of HSBC Mutual Fund (HSBC MF), for A.Y. 2009-2010. The said demand, impacting various players in the industry, raised originally on the trusts sponsored by IL&FS Trust Company Ltd., (Appellants) was sought to be also recovered u/s 177(3) of the Income Tax Act, from HSBC MF. HSBC MF, through its trustees fi led Writ petitions before the Bombay High Court and obtained necessary reliefs for stay of the impugned demand till the adjudication of the appeal by the fi rst Appellate Authority and six weeks thereafter. During last week of April 2013, the fi rst Appellate Authority passed its order giving part relief to Appellant. Against the order granting part relief, the Appellant has fi led an appeal before Income-tax Appellate Tribunal. The appeal is now expected to be heard on 14th August, 2013.






21


















22

















23


Det

ails

of t

he P

roxy

Vot

es e

xerc

ised

in G

ener

al M

eetin

gs o

f the

Lis

ted

Com

pani

es fo

r the

fi na

ncia

l yea

r end

ed 2

012-

13M

anag

emen

t Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

05-A

pr-2

012

CRI

SIL

Ltd.

Oth

er M

eetin

g�

For

Abs

tain

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

��

�Fo

rFo

r

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

For

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

20-A

pr-2

012

FAG

Bea

rings

Ltd

.A

nnua

l Gen

eral

Mee

ting

��

��

�Fo

rA

bsta

in

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

Abs

tain

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

For

26-N

ov-2

012

Indo

Tech

Tra

nsfo

rmer

s Lt

d.O

ther

Mee

ting

�Fo

rFo

r

Shar

eho

lder

s Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

Nil

Cat

ego

ry1

Alte

ratio

n in

Mem

oran

dum

of

Ass

ocia

tion

of t

he c

ompa

ny c

onta

inin

g M

ain,

Anc

illar

y an

d O

ther

obj

ects

of

the

com

pany

2 Re

ceiv

e, c

onsi

der

and

adop

t th

e A

udite

d Ba

lanc

e Sh

eet

as a

t ye

ar e

nd t

he P

rofi t

and

Los

s A

ccou

nt f

or t

he y

ear

ende

d on

tha

t da

te a

nd t

he R

epor

ts o

f th

e D

irect

ors

and

the

Aud

itors

the

reon

3 D

ecla

ratio

n of

div

iden

d on

Ord

inar

y (E

quity

) Sha

res

and

/ or

Pref

eren

ce s

hare

s4

App

oint

men

t, R

e-ap

poin

tmen

t an

d Re

mov

al o

f D

irect

ors

/ Add

ition

al D

irect

ors

5 A

ppoi

ntm

ent,

Re-

appo

intm

ent

and

Rem

oval

of

Aud

itors

6 St

ock

Opt

ion

plan

s an

d ot

her

man

agem

ent

com

pens

atio

n m

atte

rs7

Rest

ruct

urin

g of

Sha

re c

apita

l (in

clud

ing

stoc

k sp

lits,

con

solid

atio

n, r

educ

tion,

etc

. of

shar

e ca

pita

l)8

Cha

nges

in c

apita

l str

uctu

re in

clud

ing

incr

ease

s an

d de

crea

ses

of E

quity

& p

refe

rred

sto

ck /

war

rant

issu

ance

s9

Cor

pora

te r

estr

uctu

ring

mat

ters

(inc

ludi

ng m

erge

rs, a

cqui

sitio

ns, t

akeo

vers

, sel

l-off

s, t

rans

fer

of c

ontr

ol, c

hang

es in

sta

te o

f in

corp

orat

ion,

Del

isitn

g)

24





HSBC ULTRA SHORT TERM BOND FUND

HSBC Ultra Short Term Bond FundAn open-ended Debt Scheme


1


Dear Investor,







Market Outlook:





2






Yours sincerely,

Puneet Chaddha



3















4






HSBC Ultra Short Term Bond Fund (HUSBF) - an open ended Debt Scheme

HUSBF seeks to provide liquidity and reasonable returns by investing primarily in a mix of short term debt and money market instruments.

The net assets of HUSBF amounted to Rs. 45.73 crores as at March 31, 2013 as compared to Rs. 56.88 crores as at March 31, 2012. Around 96.85% of the net assets were invested in debt and money market instruments, 3.55% were invested in reverse repos/CBLO and (-0.40%) were in net current assets as at March 31, 2013.

HUSBF outperformed its benchmark due to focus on better placed positions on the yield curve.

Date of Inception : 17 October, 2006 Simple Annualized (%)

Scheme Name & Benchmarks Since Inception(Oct 2012 - March 2013)

HSBC Ultra Short Term Bond Fund - Growth* 8.06

Customised Benchmark Index Fund (Scheme Benchmark)** 7.88

CRISIL 1 Year T-Bill Index (Standard Benchmark) 8.11

Rs. 10,000, if invested in HUSBF, would have become 10,385

Rs. 10,000, if invested in Customised Benchmark Index, would have become 10,377

Rs. 10,000, if invested in CRISIL 1 Year T-Bill Index, would have become 10,388

**Composite index of CRISIL Liquid Fund Index (90%) and CRISIL Short Term Bond Fund Index (10%).

* Pursuant to SEBI circular dated Sept 13, 2012, certain Plans/options within the schemes have been discontinued to comply with a single plan structure. Since there was no continuous NAV history available for the surviving Plan prior to October 01, 2012, returns since the said date have been considered for calculating performance. The inception date of HSBC Ultra Short Term Bond Fund however is October 17, 2006.



EQUITY OUTLOOK



NIFTY 7.31

Sensex 8.23

S&P BSE 100 6.84

S&P BSE 200 6.03

S&P BSE 500 4.81

CNX Midcap -4.02

Source: Bloomberg

5









DEBT OUTLOOK











6
















7





Amount (Rs.)

No. of Investors

Amount (Rs.)

No. of Investors

HSBC Ultra Short Term Bond Fund – – 35,000.09 4





Com-plaintCode

Type of complaint#


beginningof theyear


receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 3 3 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


2 40 22 18 2 0 0 0 0 0 0


0 2 1 1 0 0 0 0 0 0 0


0 9 9 0 0 0 0 0 0 0 0


0 6 5 0 0 0 0 1 0 0 0


0 277 277 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0

8



Com-plaintCode

Type of complaint#


beginningof theyear


receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 18 18 0 0 0 0 0 0 0 0

IV Others 0 14 12 1 1 0 0 0 0 0 0

Total 2 369 347 20 3 0 0 1 0 0 0

Note:









Sd/-

Dilip J. Thakkar

Trustee

MUMBAIJuly 16, 2013

9




HSBC Mutual Fund

Report on the Financial Statements1. We have audited the accompanying fi nancial statements of HSBC Mutual Fund - HSBC Ultra Short Term

Bond Fund (the “Scheme”), which comprise the Balance Sheet as at March 31, 2013, and the related Revenue Account for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.













10





9. In our opinion, the methods used to value non-traded securities as at March 31, 2013, as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustee of HSBC Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds as mentioned in the Eighth Schedule of the Regulations issued by the Securities and Exchange Board of India, are fair and reasonable.


Sd/-



11


Rs. in Lakhs

HSBC ULTRA SHORT TERM BOND FUNDAs at

March 31, 2013As at

March 31, 2012

LIABILITIES1 Unit Capital 4,401.12 5,487.152 Reserves & Surplus2.1 Unit Premium Reserves (47.00) (47.10)2.2 Unrealised Appreciation Reserve 1.92 –2.3 Other Reserves 217.03 248.173 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 21.32 31.79

TOTAL 4,594.39 5,720.01

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities:1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper 477.95 –1.7 Certifi cate of Deposits 3,951.24 3,822.801.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –

Total Investments 4,429.19 3,822.802 Deposits – 530.563 Other Current Assets3.1 Cash & Bank Balance 0.74 13.543.2 CBLO/Reverse Repo Lending 162.38 1,334.043.3 Others 2.08 19.074 Deferred Revenue Expenditure – –


TOTAL 4,594.39 5,720.01



12



Rs. in Lakhs

HSBC ULTRA SHORT TERM BOND FUNDCurrent


Previous Year ended

March 31, 2012

1 INCOME1.1 Dividend – –1.2 Interest 528.18 908.541.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of


1.6 Realised Gains / (Losses) on Derivative Transactions – –1.7 Other Income 0.24 0.00~

(A) 529.17 872.03

2 EXPENSES2.1 Management fees 37.56 76.062.2 Service tax on Management fees 4.64 7.832.3 Transfer agents fees and expenses 2.41 5.402.4 Custodian fees 0.79 1.032.5 Trusteeship fees 0.00 ~ 0.022.6 Commission to Agents* – –2.7 Marketing & Distribution expenses 14.27 19.532.8 Audit fees 0.20 0.202.9 Investor Education Expenses 0.62 –2.10 Other operating expenses 0.74 1.57

(B) 61.23 111.64


4 Change in Unrealised Depreciation in value ofinvestments (D) – (57.61)


6 Change in Unrealised appreciation in the valueof investments (F) 1.92 –

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 469.85 818.007.1 Add: Balance transfer from Unrealised Appreciation Reserve – –7.2 Less: Balance transfer to Unrealised Appreciation Reserve 1.92 –7.3 Add / (Less): Equalisation (72.17) (257.13)7.4 Transfer from Reserve Fund 248.17 400.87


8 TOTAL 643.93 961.74

9 Dividend Appropriation9.1 Income Distributed during the year 364.60 599.509.2 Tax on income distributed during the year 62.31 114.07

10 Retained Surplus / (Defi cit) carried forwardto Balance sheet 217.03 248.17


Notes to Accounts - Annexure I* Commission to Agents is included in Marketing & Distribution expenses

13





Previous Year ended

March 31, 2012






Institutional Daily Dividend Option 10.0035 10.0009



Institutional Plus Growth Option – ! –

Institutional Plus Daily Dividend Option 10.4233 10.1107

Institutional Plus Weekly Dividend Option 10.1665 10.1637

Institutional Plus Monthly Dividend Option – ! 10.3446


Direct Plan - Daily Dividend Option N.A. N.A.

Direct Plan - Weekly Dividend Option N.A. N.A. High








Institutional Plus Growth Option – ! – !



Institutional Plus Monthly Dividend Option – 10.4038


Direct Plan - Daily Dividend Option 10.0150 N.A.

Direct Plan - Weekly Dividend Option 10.0628 N.A. Low

Regular Growth Option 14.1810 13.2193Regular Daily Dividend Option 9.9938 10.0003Regular Weekly Dividend Option 10.0331 10.0331Institutional Growth Option 10.0000 13.3595Institutional Daily Dividend Option 9.9933 9.9994Institutional Weekly Dividend Option 10.0342 10.0342Institutional Monthly Dividend Option 10.1385 10.1385Institutional Plus Growth Option – ! – !Institutional Plus Daily Dividend Option 10.4262 10.1107Institutional Plus Weekly Dividend Option 10.1637 10.1637Institutional Plus Monthly Dividend Option – 10.4038

14





Previous Year ended

March 31, 2012




End5








Institutional Plus Growth Option – ! – !







End 4,573 5,688

Average (AAuM)1 5,874 10,850


4. Expense Ratio:






Institutional Daily Dividend Option 0.56% 1.05%



Institutional Plus Growth Option 0.40%

Institutional Plus Daily Dividend Option 0.31% 0.40%

Institutional Plus Weekly Dividend Option 0.31% 0.40%

Institutional Plus Monthly Dividend Option 0.40%


Direct Plan - Daily Dividend Option 0.17% N.A.



Regular Growth Option 0.64% 0.70%Regular Daily Dividend Option 0.64% 0.70%Regular Weekly Dividend Option 0.64% 0.70%Institutional Growth Option 0.64% 0.70%Institutional Daily Dividend Option 0.64% 0.70%

15




Previous Year ended

March 31, 2012



Institutional Plus Growth Option 0.64% 0.70%



Institutional Plus Monthly Dividend Option 0.64% 0.70%












Institutional Plus Daily Dividend Option – 0.4423


Institutional Plus Monthly Dividend Option – –




Direct Plan - Monthly Dividend Option – N.A. Corporate



Institutional Daily Dividend Option – 0.5626









Direct Plan - Monthly Dividend Option – N.A.




16




Previous Year ended

March 31, 2012



Institutional Growth Option – 7.6100







Institutional Plus Monthly Dividend Option N.A. –



Direct Plan - Weekly Dividend Option N.A. N.A. Benchmark

CRISIL Composite Index ^^ NA 8.4576 b. Since Inception Scheme














Direct Plan - Weekly Dividend Option 1.9400 N.A. Benchmark

CRISIL Composite Index ^^ 7.8800 6.9295


and not the last declared NAV! No Units Outstnding as at March 31, 2013^^ Composite Index of CRISIL Liquid Find Index (90%) and CRISIL Short Term Bond Fund Index (10%).


17




1 Investments:


1.2 Open Positions of derivatives as of year ended March 31, 2013 is NIL. Open Positions of derivatives as of year ended March 31, 2012 is NIL.




by all schemes


by all schemes

2013 2012


Fixed deposits

– – – 32,000,000

1.4 Open position of Securities Borrowed and / or Lent by the Scheme as of fi nancial years ended 2013 and 2012 are NIL.

1.5 NPAs as on March 31, 2013 and March 31, 2012 are NIL.




2013 2012

Certifi cate of Deposit/Commercial Paper

– Appreciation 383,341 0.0838% – –

– Depreciation 191,720 0.0419% – –

1.7 The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2012-2013 (excluding accretion of discount) are Rs. 3,653,270,169 and Rs. 3,636,083,139 respectively being 621.99% and 619.06% of the average daily net assets.

The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2011-2012 (excluding accretion of discount) are Rs. 2,281,757,134 and Rs. 2,961,850,685 respectively being 210.31% and 272.99% of the average daily net assets.

1.8 Non-Traded securities in the portfolio :

Aggregate Value of Equity, Debt & Money Market Instruments and their percentages to Net assets are as under :

Security Category Fair Value (Rs.)

% to Net Assets

Fair Value (Rs.)

% to Net Assets

2013 2012

Money market Instruments 442,918,256 96.81% 382,280,136 67.21%

Total 442,918,256 96.81% 382,280,136 67.21%

18



During the year 2012-2013, The Hongkong & Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid collection/bank charges amounting to Nil.

During the year 2011-2012, The Hongkong & Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid collection/bank charges amounting to Nil.





Relation

Period Covered


% of Total Business




Fund


Associate 2012-2013 39.96 38.97 423,316 35.38


Associate 2012-2013 0.03 0.03 756 0.06



Relation

Period Covered


% of Total Business




Fund


Associate 2011-2012 31.31 32.31 707,017 38.08


Associate 2011-2012 0.01 0.02 245 0.01






Description

2012-2013



Regular Daily Dividend Option 27,489,098.477 22,089,882.061 34,188,374.825 15,390,605.713 10

Regular Weekly Dividend Option 14,659,248.751 6,171,951.664 14,185,580.505 6,645,619.910 10


19


Description

2012-2013


Institutional Growth Option 392,324.569 7,669,618.269 979,538.016 7,082,404.822 10


2,384,465.606 57,625,950.204 54,738,950.381 5,271,465.429 10


2,558,153.268 3,541,344.466 2,582,818.942 3,516,678.792 10


739,032.754 1,412,608.247 1,339,568.215 812,072.786 10

Institutional Plus Growth Option – – – – –

Institutional Plus Daily Dividend Option

200,543.261 – – 200,543.261 10


2,362,320.532 113,651.050 – 2,475,971.582 10


– – – – 10

Direct Plan - Growth Option – 964.41 – 964.407 10

Direct Plan - Daily Dividend Option

– 186,408.24 30,073.435 156,334.806 10


– 22,508.55 – 22,508.549 10


– – – –

Description

2011-2012


(Rs.)


Regular Daily Dividend Option 52,011,700.314 36,304,660.087 60,827,261.924 27,489,098.477 10

Regular Weekly Dividend Option 19,098,955.547 16,032,190.390 20,471,897.186 14,659,248.751 10

Institutional Growth Option 2,488,652.870 894,067.860 2,990,396.161 392,324.569 10


10,745,587.459 1,379,335.369 9,740,457.222 2,384,465.606 10


3,154,454.216 6,762,746.031 7,359,046.979 2,558,153.268 10


912,366.627 296,309.504 469,643.377 739,032.754 10

Institutional Plus Growth Option 0.000 0.000 0.000 – 0


30,368,330.439 14,612,247.737 44,780,034.915 200,543.261 10


20


Description

2011-2012


(Rs.)


8,114,927.965 2,572,223.949 8,324,831.382 2,362,320.532 10


897,388.548 – 897,388.548 0.000 10

5 Prior year amounts have been re-grouped / re-arranged where necessary.



8 Other Income of Rs. 23,667 (2012: Rs.55) represents Exit load ( net of service tax) credited to the Scheme.








21


















22

















23


Det

ails

of t

he P

roxy

Vot

es e

xerc

ised

in G

ener

al M

eetin

gs o

f the

Lis

ted

Com

pani

es fo

r the

fi na

ncia

l yea

r end

ed 2

012-

13M

anag

emen

t Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

05-A

pr-2

012

CRI

SIL

Ltd.

Oth

er M

eetin

g�

For

Abs

tain

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

��

�Fo

rFo

r

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

For

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

20-A

pr-2

012

FAG

Bea

rings

Ltd

.A

nnua

l Gen

eral

Mee

ting

��

��

�Fo

rA

bsta

in

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

Abs

tain

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

For

26-N

ov-2

012

Indo

Tech

Tra

nsfo

rmer

s Lt

d.O

ther

Mee

ting

�Fo

rFo

r

Shar

eho

lder

s Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

Nil

Cat

ego

ry1

Alte

ratio

n in

Mem

oran

dum

of

Ass

ocia

tion

of t

he c

ompa

ny c

onta

inin

g M

ain,

Anc

illar

y an

d O

ther

obj

ects

of

the

com

pany

2 Re

ceiv

e, c

onsi

der

and

adop

t th

e A

udite

d Ba

lanc

e Sh

eet

as a

t ye

ar e

nd t

he P

rofi t

and

Los

s A

ccou

nt f

or t

he y

ear

ende

d on

tha

t da

te a

nd t

he R

epor

ts o

f th

e D

irect

ors

and

the

Aud

itors

the

reon

3 D

ecla

ratio

n of

div

iden

d on

Ord

inar

y (E

quity

) Sha

res

and

/ or

Pref

eren

ce s

hare

s4

App

oint

men

t, R

e-ap

poin

tmen

t an

d Re

mov

al o

f D

irect

ors

/ Add

ition

al D

irect

ors

5 A

ppoi

ntm

ent,

Re-

appo

intm

ent

and

Rem

oval

of

Aud

itors

6 St

ock

Opt

ion

plan

s an

d ot

her

man

agem

ent

com

pens

atio

n m

atte

rs7

Rest

ruct

urin

g of

Sha

re c

apita

l (in

clud

ing

stoc

k sp

lits,

con

solid

atio

n, r

educ

tion,

etc

. of

shar

e ca

pita

l)8

Cha

nges

in c

apita

l str

uctu

re in

clud

ing

incr

ease

s an

d de

crea

ses

of E

quity

& p

refe

rred

sto

ck /

war

rant

issu

ance

s9

Cor

pora

te r

estr

uctu

ring

mat

ters

(inc

ludi

ng m

erge

rs, a

cqui

sitio

ns, t

akeo

vers

, sel

l-off

s, t

rans

fer

of c

ontr

ol, c

hang

es in

sta

te o

f in

corp

orat

ion,

Del

isitn

g)

24





HSBC Cash FundAn open-ended Liquid Scheme


HSBC Cash Fund

1

HSBC Cash Fund

Dear Investor,







Market Outlook:





2

HSBC Cash Fund





Yours sincerely,

Puneet Chaddha



3

HSBC Cash Fund














4

HSBC Cash Fund





HSBC Cash Fund (HCF) - an open-ended Liquid Scheme

HCF aims to provide reasonable returns, commensurate with low risk while providing a high level of liquidity, through a portfolio of money market and debt securities.

The net assets of HCF amounted to Rs. 469 crores as at March 31, 2013 as compared to Rs. 196.45 crores as at March 31, 2012. The entire net asset remain invested in debt and money market instruments including reverse repos/CBLO as at March 31, 2013.

HCF performed broadly in line with its benchmark due to conservative investments in line with the internal guidelines alongwith focus on accruals and credits.

Date of Inception :04 December, 2002

Simple Annualized (%) Compounded Annualized (%)

Scheme Name & Benchmarks Last 7 Days as on 31

March 2013

Last 15 Days as on 31

March 2013

Last 30 Days as on 31

March 2013

April 12 - March 13

Since Inception (May 2011 - March 2013)

HSBC Cash Fund - Growth* 9.23 9.00 8.74 8.91 8.73

CRISIL Liquid Fund Index (Scheme Benchmark)

8.47 8.24 8.33 8.22 6.51

CRISIL 91 Day T-Bill Index (Standard Benchmark)

7.25 8.40 7.84 8.49 8.05

Rs. 10,000, if invested in HCF, would have become

10,018 10,037 10,072 10,891 11,687

Rs. 10,000, if invested in CRISIL Liquid Fund Index, would have become

10,016 10,034 10,068 10,822 11,247

Rs. 10,000, if invested in CRISIL 91 Day T-Bill Index, would have become

10,014 10,035 10,064 10,849 11,552

* Pursuant to SEBI circular dated Sept 13, 2012, certain Plans/options within the schemes have been discontinued to comply with a single plan structure. Since there was no continuous NAV history available for the surviving Plan prior to May 19, 2011, returns since the said date have been considered for calculating performance. The inception date of HSBC Cash Fund is December 04, 2002.



EQUITY OUTLOOK


5

HSBC Cash Fund



NIFTY 7.31

Sensex 8.23

S&P BSE 100 6.84

S&P BSE 200 6.03

S&P BSE 500 4.81

CNX Midcap -4.02

Source: Bloomberg







DEBT OUTLOOK









6

HSBC Cash Fund

















7

HSBC Cash Fund




Amount (Rs.)

No. of Investors

Amount (Rs.)

No. of Investors

HSBC Cash Fund – – 1.45 11





Com-plaintCode

Type of complaint#


beginningof theyear


receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 3 3 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


2 40 22 18 2 0 0 0 0 0 0


0 2 1 1 0 0 0 0 0 0 0


0 9 9 0 0 0 0 0 0 0 0


0 6 5 0 0 0 0 1 0 0 0


0 277 277 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0

8

HSBC Cash Fund


Com-plaintCode

Type of complaint#


beginningof theyear


receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 18 18 0 0 0 0 0 0 0 0

IV Others 0 14 12 1 1 0 0 0 0 0 0

Total 2 369 347 20 3 0 0 1 0 0 0

Note:# including against its authorized persons / distributors / employees etc.








Sd/-

Dilip J. Thakkar

Trustee

MUMBAIJuly 16, 2013

9

HSBC Cash Fund



HSBC Mutual Fund

Report on the Financial Statements1. We have audited the accompanying fi nancial statements of HSBC Mutual Fund - HSBC Cash Fund (the






4. An audit involves performing procedures to obtain audit evidence, about the amounts and disclosures in the fi nancial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the fi nancial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the preparation and fair presentation of the fi nancial statements in order to design audit procedures that are appropriate in the circumstances. Our procedures included confi rmation of securities owned and unit capital balances as at March 31, 2013 by correspondence with the custodian and registrar and transfer agent, respectively. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Trustee and the Management, as well as evaluating the overall presentation of the fi nancial statements.








10

HSBC Cash Fund

(b) In our opinion, the Balance Sheet and Revenue Account, dealt with by this report have been prepared in accordance with the accounting policies and standards specifi ed in the Ninth Schedule of the Regulations.


9. In our opinion, the methods used to value non-traded securities where applicable as at March 31, 2013, as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds as mentioned in the Eighth Schedule of the Regulations issued by the Securities and Exchange Board of India, are fair and reasonable.


Sd/-




11

HSBC Cash Fund

Rs. in Lakhs

HSBC CASH FUNDAs at

March 31, 2013As at

March 31, 2012

LIABILITIES1 Unit Capital 45,002.62 18,503.292 Reserves & Surplus2.1 Unit Premium Reserves 1,797.75 4,201.232.2 Unrealised Appreciation Reserve 0.78 –2.3 Other Reserves 99.65 (3,059.51)3 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 1,568.09 85.95

TOTAL 48,468.89 19,730.96

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt Securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt Securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt Securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper 10,416.31 –1.7 Certifi cate of Deposits 35,786.92 8,578.191.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –


2 Deposits 1,641.00 943.493 Other Current Assets3.1 Cash & Bank Balance 101.47 158.763.2 CBLO/Reverse Repo Lending 511.25 10,022.603.3 Others 11.94 27.924 Deferred Revenue Expenditure – –


TOTAL 48,468.89 19,730.96



12

HSBC Cash Fund


Rs. in Lakhs

HSBC CASH FUNDCurrent


Previous Year ended

March 31, 2012

1 INCOME1.1 Dividend – –1.2 Interest 3,401.35 2,948.531.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of



(A) 3,403.48 2,943.78

2 EXPENSES2.1 Management fees 33.22 97.302.2 Service tax on Management fees 4.11 10.022.3 Transfer agents fees and expenses 17.57 17.972.4 Custodian fees 4.55 2.672.5 Trusteeship fees 0.02 0.052.6 Commission to Agents * – –2.7 Marketing & Distribution expenses 39.90 34.412.8 Audit fees 1.57 0.792.9 Investor Education Expenses 5.09 –2.10 Other operating expenses 5.61 5.442.11 Expenses to be Reimbursed by the Investment Manager (7.59) (2.43)

(B) 104.05 166.22

3 NET REALISED GAINS / (LOSSES)FOR THE YEAR (A - B = C) 3,299.43 2,777.56

4 Change in Unrealised Depreciation invalue of investments (D) – –


6 Change in Unrealised appreciation inthe value of investments (F) 0.78 –


7.1 Add: Balance transfer from Unrealised Appreciation Reserve – –7.2 Less: Balance transfer to Unrealised Appreciation Reserve 0.78 –7.3 Add / (Less): Equalisation 2,197.95 (3,731.70)7.4 Transfer from Reserve Fund (3,059.51) 366.49


8 TOTAL 2,437.87 (587.65)

9 Dividend Appropriation9.1 Income Distributed during the year 1,786.62 1,891.839.2 Tax on income distributed during the year 551.60 580.03

10 Retained Surplus / (Defi cit) carriedforward to Balance sheet 99.65 (3,059.51)



13

HSBC Cash Fund




Previous Year ended

March 31, 2012









Institutional Plus Growth Option 10.7376 15.0184



Institutional Plus Monthly Dividend Option – 10.0905




Direct Plan - Monthly Dividend Option N.A. N.A. High

Regular Growth Option 1,832.4454 16.9492

Regular Daily Dividend Option 1,020.0175 10.1930

Regular Weekly Dividend Option 1,003.3051 10.0333

Institutional Growth Option 1,866.8594 17.1730

Institutional Daily Dividend Option 1,086.0742 10.4401



Institutional Plus Growth Option 1,169.7357 15.1246

Institutional Plus Daily Dividend Option 1,001.3457 10.0056

Institutional Plus Weekly Dividend Option 1,112.5219 10.6482

Institutional Plus Monthly Dividend Option 1,008.0930 10.1395

Direct Plan - Growth Option 1,169.7357 N.A.

Direct Plan - Daily Dividend Option 1,001.3457 N.A.

Direct Plan - Weekly Dividend Option 1,112.5230 N.A.

Direct Plan - Monthly Dividend Option 1,006.2828 N.A. Low








Institutional Plus Growth Option 10.7408 10.0000


14

HSBC Cash Fund




Previous Year ended

March 31, 2012


Institutional Plus Monthly Dividend Option 10.0000 10.0806




Direct Plan - Monthly Dividend Option 1,000.0000 N.A. End5

Regular Growth Option 1,832.4527 16.9586

Regular Daily Dividend Option 1,020.0185 10.1958

Regular Weekly Dividend Option 1,002.3966 10.0197

Institutional Growth Option 1,866.8709 17.1827

Institutional Daily Dividend Option 1,086.0890 10.4430

Institutional Weekly Dividend Option – 10.8656

Institutional Monthly Dividend Option – 10.5243

Institutional Plus Growth Option 1,169.7318 10.7376

Institutional Plus Daily Dividend Option 1,001.3459 10.0085

Institutional Plus Weekly Dividend Option 1,111.3623 10.8389

Institutional Plus Monthly Dividend Option 1,000.7958 –




Direct Plan - Monthly Dividend Option N.A. N.A.


End 46,901 19,645

Average (AAuM)1 39,362 34,774


4. Expense Ratio:

















15

HSBC Cash Fund



Previous Year ended

March 31, 2012






























Direct Plan - Monthly Dividend Option 4.9433 N.A. Corporate













16

HSBC Cash Fund



Previous Year ended

March 31, 2012


Regular Growth Option 8.0700 8.0200Regular Daily Dividend Option 6.1900 6.2600Regular Weekly Dividend Option 6.3200 6.2400Institutional Growth Option 8.9500 8.1800Institutional Daily Dividend Option 6.9400 6.3800Institutional Weekly Dividend Option 7.7900 7.2200Institutional Monthly Dividend Option 3.2600 6.3600Institutional Plus Growth Option 8.6600 –Institutional Plus Daily Dividend Option 7.6600 6.5900Institutional Plus Weekly Dividend Option N.A. 7.8700Institutional Plus Monthly Dividend Option N.A. –Direct Plan - Growth Option N.A. N.A.Direct Plan - Daily Dividend Option N.A. N.A.Direct Plan - Weekly Dividend Option N.A. N.A.Direct Plan - Monthly Dividend Option N.A. N.A.

BenchmarkCRISIL Liquid Fund Index 8.2300 8.4496


Regular Growth Option 6.0400 5.8200Regular Daily Dividend Option 4.9100 4.7700Regular Weekly Dividend Option 5.0900 4.9200Institutional Growth Option 8.7300 6.0100Institutional Daily Dividend Option 5.4000 4.9000Institutional Weekly Dividend Option 5.7000 5.0100Institutional Monthly Dividend Option 4.4900 4.8800Institutional Plus Growth Option 6.2800 0.9100Institutional Plus Daily Dividend Option 5.1800 5.2100Institutional Plus Weekly Dividend Option 5.7000 5.4400Institutional Plus Monthly Dividend Option 4.4900 –Direct Plan - Growth Option 2.1000 N.A.Direct Plan - Daily Dividend Option 1.6300 N.A.Direct Plan - Weekly Dividend Option 1.6300 N.A.Direct Plan - Monthly Dividend Option 0.3500 N.A.

BenchmarkCRISIL Liquid Fund Index 6.5100 5.9911

1 AAuM=Average daily net assets2 Gross income = amount against (A) in the Revenue account i.e. Income3 Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the year4 Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year5 The net asset value disclosed represents the computed NAV on March 31, 2013 (Non-business Day), and



17

HSBC Cash Fund


HSBC CASH FUND1 Investments:-


1.2 Open Positions of derivatives as of year ended March 31, 2013 is NIL. Open Positions of derivatives as of year ended March 31, 2012 is NIL.




by all schemes


by all schemes

2013 2012


Fixed deposits

– – – 32,000,000

1.4 Open position of Securities Borrowed and / or Lent by the scheme as of fi nancial years ended March 31, 2013 and March 31, 2012 are NIL.

1.5 NPAs as on March 31, 2013 and March 31, 2012 are NIL.

1.6 Aggregate Unrealised Gain / Loss as at the end of the fi nancial years March 31, 2013 and March 31, 2012 are as follows:



2013 2012

Certifi cates of Deposit/Commercial Paper

– Appreciation 77,953 0.00% ~ – –

– Depreciation – – – –



The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2011-12 (excluding accretion of discount) are Rs. 11,281,804,860 and Rs. 12,511,795,040 respectively being 324.43% and 359.80% of the average daily net assets.


Aggregate Value of Equity, Debt & Money Market Instruments and percentage to net assets is as under



2013 2012

Money market Instruments 4,620,323,377 98.51% 857,818,960 43.67%


During the year 2012-13, The Hongkong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid collection/bank charges amounting to Rs. Nil.

18

HSBC Cash Fund

During the year 2011-12, The Hongkong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid collection/bank charges amounting to Rs. 86,325.





Relation

Period Covered


% of Total Business




Fund


Associate 2012-2013

661.49 4.58 1,479,963 48.26


Associate 2012-2013

1,225.00 8.48 123,911 4.04



Relation

Period Covered


% of Total Business




Fund


Associate 2011-2012

133.93 0.39 1,540,299 53.01


Associate 2011-2012

515.04 1.51 59,609 2.05



3 Large Holdings in the Scheme (i.e. in excess of 25% of the net assets)

Name of Scheme No. of holders % Holding No. of holders % Holding

2013 2012

HSBC Cash Fund – – 1 26.18%

4 Unit Capital movement during the years ended March 31, 2013 and March 31, 2012

Description

2012-2013

Opening Units Subscription Redemption Closing UnitsFace Value per unit (Rupees)

Regular Growth Option 109,317.863 487,742.491 552,185.336 44,875.018 1,000


344,224.272 416,928.998 473,698.170 287,455.100 1,000


172,201.535 258,641.809 287,716.247 143,127.096 1,000


19

HSBC Cash Fund

Description

2012-2013

Opening Units Subscription Redemption Closing UnitsFace Value per unit (Rupees)


19,372.826 54,051.284 70,219.079 3,205.031 1,000


246,775.055 230,471.699 468,570.127 8,676.627 1,000


4,748.391 369,417.671 374,166.061 – 1,000


3,181.374 – 3,181.374 – 1,000


65,030.584 16,995,102.624 16,755,630.425 304,502.783 1,000


884,909.549 96,040,425.912 94,835,706.161 2,089,629.300 1,000


567.587 745,690.344 449,816.897 296,441.035 1,000


– 209,370.663 77,837.974 131,532.689 1,000


– 3,060,288.687 2,759,503.744 300,784.943 1,000

Direct Plan - Daily Dividend Option

– 16,845,387.408 15,982,395.907 862,991.501 1,000


– 62,295.874 35,255.184 27,040.690 1,000


– – – – 1,000

Description

2011-2012


per unit (Rupees)



57,825,150.324 80,552,465.926 103,955,189.016 34,422,427.234 10


7,171,727.950 27,662,540.424 17,614,114.922 17,220,153.452 10


316,772.289 13,867,913.165 12,247,402.863 1,937,282.591 10


43,329,563.958 112,171,404.696 130,823,463.145 24,677,505.509 10


1,383.633 2,153,473.936 1,680,018.480 474,839.089 10


20

HSBC Cash Fund

Description

2011-2012


per unit (Rupees)


554,781.271 1,889,430.526 2,126,074.349 318,137.448 10


3,336,269.249 734,316,376.324 731,149,587.162 6,503,058.411 10


126,526,575.032 32,704,700,464.090 32,742,736,084.253 88,490,954.869 10


55,630.501 209,255,693.742 209,254,565.527 56,758.716 10


10,506,670.626 31,258,609.583 41,765,280.209 – 10




8 Change in the Face Value of Units of HSBC Cash Fund

Pursuant to approval from Board of Directors of HSBC Asset Management (India) Private Limited and Trustees of the Fund, the following changes were effected in HSBC Cash fund during the fi nancial year ended March 31, 2013. The Net Asset Value (NAV) per unit under all the Plans / Options of the Scheme was reset to refl ect the change in face value of units of the Scheme from Rs. 10/- to Rs. 1000/- and the balance unit holding of existing investors under all the Plans / Options of the Scheme was also adjusted with effect from December 30, 2012. The change did not impact the current value of the unit holder’s investments in the Scheme. Further, unit holders did not incur any tax liability due to change in face value of the units of the Scheme. As a result, the applicable NAV per unit of all the Plans / Options of the Scheme was based on Rs. 1000/- for all valid Purchases / Switch-in and valid Redemptions / Switch-out requests to be effected from NAV on December 30, 2012 and thereafter.

9 Merger of HSBC Floating Rate Fund - Short Term Plan with HSBC Cash Fund

Pursuant to SEBI approval vide its letter dated June 29, 2011, HFRF-STP was merged with HCF as at the close of September 01, 2011, by virtue of which net assets of HFRF-STP as at close of Sep 01, 2011 aggregating to Rs. 436.74 Lacs for Daily Dividend Option, Rs. 445.57 Lacs for Growth Option, Rs. 2.34 Lacs for Institutional Growth Option and Rs. 836.14 Lacs for Weekly Dividend Option, less tax deducted at source, if any, were merged with the Daily Dividend Option, Growth Option, Institutional Growth Option and Weekly Dividend Option of HCF respectively.

Accordingly, Unit holders of the respective Options of HFRF-STP were allotted units based on net asset value per unit of respective Options of HCF as on Sep 01, 2011.


An Income tax demand of Rs. 32.58 crores was purported to be recovered under garnishee proceedings, by Income Tax Authorities in respect of investments made in Pass through Certifi cates (PTC) by some of the debt schemes (including matured schemes) of HSBC Mutual Fund (HSBC MF), for A.Y. 2009-2010. The said demand, impacting various players in the industry, raised originally on the trusts sponsored by IL&FS Trust Company Ltd., (Appellants) was sought to be also recovered u/s 177(3) of the Income Tax Act, from HSBC MF. HSBC MF, through its trustees fi led Writ petitions before the Bombay High Court and obtained necessary reliefs for stay of the impugned demand till the adjudication of the appeal by


21

HSBC Cash Fund

the fi rst Appellate Authority and six weeks thereafter. During last week of April 2013, the fi rst Appellate Authority passed its order giving part relief to Appellant. Against the order granting part relief, the Appellant has fi led an appeal before Income-tax Appellate Tribunal. The appeal is now expected to be heard on 14th August, 2013.






22

HSBC Cash Fund

















23

HSBC Cash Fund
















24

HSBC Cash Fund

Det

ails

of t

he P

roxy

Vot

es e

xerc

ised

in G

ener

al M

eetin

gs o

f the

Lis

ted

Com

pani

es fo

r the

fi na

ncia

l yea

r end

ed 2

012-

13M

anag

emen

t Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

05-A

pr-2

012

CRI

SIL

Ltd.

Oth

er M

eetin

g�

For

Abs

tain

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

��

�Fo

rFo

r

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

For

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

20-A

pr-2

012

FAG

Bea

rings

Ltd

.A

nnua

l Gen

eral

Mee

ting

��

��

�Fo

rA

bsta

in

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

Abs

tain

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

For

26-N

ov-2

012

Indo

Tech

Tra

nsfo

rmer

s Lt

d.O

ther

Mee

ting

�Fo

rFo

r

Shar

eho

lder

s Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

Nil

Cat

ego

ry1

Alte

ratio

n in

Mem

oran

dum

of

Ass

ocia

tion

of t

he c

ompa

ny c

onta

inin

g M

ain,

Anc

illar

y an

d O

ther

obj

ects

of

the

com

pany

2 Re

ceiv

e, c

onsi

der

and

adop

t th

e A

udite

d Ba

lanc

e Sh

eet

as a

t ye

ar e

nd t

he P

rofi t

and

Los

s A

ccou

nt f

or t

he y

ear

ende

d on

tha

t da

te a

nd t

he R

epor

ts o

f th

e D

irect

ors

and

the

Aud

itors

the

reon

3 D

ecla

ratio

n of

div

iden

d on

Ord

inar

y (E

quity

) Sha

res

and

/ or

Pref

eren

ce s

hare

s4

App

oint

men

t, R

e-ap

poin

tmen

t an

d Re

mov

al o

f D

irect

ors

/ Add

ition

al D

irect

ors

5 A

ppoi

ntm

ent,

Re-

appo

intm

ent

and

Rem

oval

of

Aud

itors

6 St

ock

Opt

ion

plan

s an

d ot

her

man

agem

ent

com

pens

atio

n m

atte

rs7

Rest

ruct

urin

g of

Sha

re c

apita

l (in

clud

ing

stoc

k sp

lits,

con

solid

atio

n, r

educ

tion,

etc

. of

shar

e ca

pita

l)8

Cha

nges

in c

apita

l str

uctu

re in

clud

ing

incr

ease

s an

d de

crea

ses

of E

quity

& p

refe

rred

sto

ck /

war

rant

issu

ance

s9

Cor

pora

te r

estr

uctu

ring

mat

ters

(inc

ludi

ng m

erge

rs, a

cqui

sitio

ns, t

akeo

vers

, sel

l-off

s, t

rans

fer

of c

ontr

ol, c

hang

es in

sta

te o

f in

corp

orat

ion,

Del

isitn

g)

HSBC Cash Fund




HSBC Gilt FundAn open-ended Gilt Scheme


HSBC GILT FUND

1

HSBC GILT FUND

Dear Investor,







Market Outlook:





2

HSBC GILT FUND





Yours sincerely,

Puneet Chaddha



3

HSBC GILT FUND














4

HSBC GILT FUND





HSBC Gilt Fund (HGF) - an open-ended Gilt Scheme

HGF seeks to generate reasonable returns through investments in Government Securities of various maturities. The AMC’s view of interest rate trends will be refl ected in the maturities of securities in which the scheme is invested.

The net assets of HGF amounted to Rs. 2.20 crores as at March 31, 2013 as compared to Rs. 1.22 crores as at March 31, 2012. Around 37.17% of the net assets were invested in reverse repos/CBLO and 52.71 % were invested in government securities and 10.12 % were in net current assets as at March 31, 2013.

HGF outperformed its benchmark through active management of duration.





Since Inception

HSBC Gilt Fund - Growth 12.37 8.15 7.86 4.57

I-Sec Composite Bond Fund Index (Scheme Benchmark) 11.71 6.77 6.38 6.77


Rs. 10,000, if invested in HGF, would have become 11,237 10,815 10,786 15,178

Rs. 10,000, if invested in I-Sec Composite Bond Fund Index, would have become

11,171 10,677 10,638 18,415


11,131 10,241 10,461 15,449



EQUITY OUTLOOK



NIFTY 7.31

Sensex 8.23

S&P BSE 100 6.84

S&P BSE 200 6.03

S&P BSE 500 4.81

CNX Midcap -4.02

Source: Bloomberg

5

HSBC GILT FUND








DEBT OUTLOOK











6

HSBC GILT FUND















7

HSBC GILT FUND




Amount (Rs.)

No. of Investors

Amount (Rs.)

No. of Investors

HSBC Gilt Fund 7,395.57 2 – –





Com-plaintCode

Type of complaint#


beginningof theyear


receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 3 3 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


2 40 22 18 2 0 0 0 0 0 0


0 2 1 1 0 0 0 0 0 0 0


0 9 9 0 0 0 0 0 0 0 0


0 6 5 0 0 0 0 1 0 0 0


0 277 277 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0

8

HSBC GILT FUND


Com-plaintCode

Type of complaint#


beginningof theyear


receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 18 18 0 0 0 0 0 0 0 0

IV Others 0 14 12 1 1 0 0 0 0 0 0

Total 2 369 347 20 3 0 0 1 0 0 0

Note:









Sd/-

Dilip J. Thakkar

Trustee

MUMBAIJuly 16, 2013

9

HSBC GILT FUND


HSBC Mutual Fund

Report on the Financial Statements1. We have audited the accompanying fi nancial statements of HSBC Mutual Fund - HSBC Gilt Fund (the















10

HSBC GILT FUND






Sd/-



11

HSBC GILT FUND

Rs. in Lakhs

HSBC GILT FUNDAs at

March 31, 2013As at

March 31, 2012

LIABILITIES1 Unit Capital 154.50 95.692 Reserves & Surplus2.1 Unit Premium Reserves 56.79 13.302.2 Unrealised Appreciation Reserve – –2.3 Other Reserves 9.54 13.213 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 6.04 0.91

TOTAL 226.87 123.11

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt Securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt Securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt Securities – –1.4 Government Securities 116.41 20.281.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – –1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –

Total Investments 116.41 20.28

2 Deposits – –3 Other Current Assets3.1 Cash & Bank Balance 0.62 1.383.2 CBLO / Reverse Repo Lending 82.08 79.953.3 Others 27.76 21.504 Deferred Revenue Expenditure (to the extent not written off) – –

TOTAL 226.87 123.11




12

HSBC GILT FUND


Rs. in Lakhs

HSBC GILT FUNDCurrent


Previous Year ended

March 31, 2012

1 INCOME1.1 Dividend – –1.2 Interest 14.51 7.721.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of investments 7.39 1.011.6 Realised Gains / (Losses) on Derivative Transactions – –1.7 Other Income 0.06 –

(A) 21.96 8.73

2 EXPENSES2.1 Management fees 0.75 0.312.2 Service tax on Management fees 0.09 0.032.3 Transfer agents fees and expenses 0.12 0.082.4 Custodian fees – –2.5 Trusteeship fees 0.00~ 0.00~2.6 Commission to Agents * – –2.7 Marketing & Distribution expenses 0.55 0.042.8 Audit fees 0.20 0.202.9 Investor Education Expenses 0.02 –2.10 Other operating expenses 0.22 0.062.11 Expenses to be Reimbursed by the Investment Manager (0.31) –

(B) 1.64 0.72


4 Change in Unrealised Depreciation in value ofinvestments (D) 0.36 0.30


6 Change in Unrealised appreciation in the valueof investments (F) – (0.00)~

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 19.96 7.71

7.1 Add: Balance transfer from Unrealised Appreciation Reserve – 0.00~7.2 Less: Balance transfer to Unrealised Appreciation Reserve – –7.3 Add / (Less): Equalisation (22.42) (10.55)7.4 Transfer from Reserve Fund 13.21 17.59


8 TOTAL 10.74 14.75

9 Dividend Appropriation9.1 Income Distributed during the year 1.07 1.369.2 Tax on income distributed during the year 0.14 0.18

10 Retained Surplus / (Defi cit) carried forwardto Balance Sheet 9.54 13.21

~ Indicates less than 0.01Notes to Accounts - Annexure I* Commission to Agents is included in Marketing & Distribution Expenses.

13

HSBC GILT FUND




Previous Year ended

March 31, 2012


Open



Weekly Dividend Option 9.9259 10.0429




High






Direct Plan - Weekly Dividend Option – N.A.

Low







End5








End 221 122

Average (AAuM)1 179 97


4. Expense Ratio:

a. Total Expense as % of AAuM (Planwise)



Weekly Dividend Option 0.84% 0.75%




14

HSBC GILT FUND




Previous Year ended

March 31, 2012

b. Management Fee as % of AAuM (Planwise)



Weekly Dividend Option 0.42% 0.32%







Retail


Corporate


8. Returns (%):

a. Last One Year

Scheme




Direct Plan - Growth Option –- N.A.

Benchmark

I-Sec Composite Index 11.66% 6.7700

b. Since Inception

Scheme





Benchmark

I-Sec Composite Index 6.78% 6.8200



15

HSBC GILT FUND


HSBC GILT FUND1 Investments: 1.1 It is confi rmed that investments of the Scheme are registered in the name of the Trustees for the benefi t of the

Scheme’s unitholders.





by all schemes


by all schemes

2013 2012


Fixed deposits

– – – 32,000,000



1.6 Aggregate Unrealised Gain / Loss as at the end of the fi nancial years end and their percentages to net assets are as under:



2013 2012


– Appreciation 3,662 0.0166% – –

– Depreciation 70,126 0.3176% 30,123 0.3119%

1.7 The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2012-2013 (excluding accretion of discount) are Rs. 339,031,566 and Rs. 3,30,124,445 respectively being 1,894.03% and 1,844.28% of the average daily net assets.

The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2011-2012 (excluding accretion of discount) are Rs. 327,007,216 and Rs. 326,550,091 respectively being 3,396.68% and 3,381.59% of the average daily net assets.

1.8 Non -Traded securities in the portfolios as at March 31, 2013 and March 31, 2012 are NIL.






Relation

Period Covered


% of Total Business


Commission paid

[Rupees]


Fund


Associate 2012-2013 0.51 27.08 12,593 27.74


Associate 2012-2013 – – – –

16

HSBC GILT FUND



Relation

Period Covered


% of Total Business


Commission paid

[Rupees]


Fund


Associate 2011-2012 0.46 35.01 4,140 15.78


Associate 2011-2012 0.01 0.38 214 0.81






Opening Units

Subscription Redemption Closing Units

Face Value per Unit (Rs.)

Growth Option 647,560.833 735,836.637 454,231.592 929,165.878 10

Dividend Option 198,080.264 574,592.200 240,739.507 531,932.957 10

Weekly Dividend Option 111,306.586 72,850.739 108,805.228 75,352.097 10

Direct Plan - Growth Option – 8,522.373 – 8,522.373 10

Direct Plan - Dividend Option – – – – 10


– – – – 10


Opening Units

Subscription Redemption Closing Units Face Value per Unit (Rs.)

Growth Option 440,491.793 638,176.324 431,107.284 647,560.833 10

Dividend Option 44,402.584 316,154.128 162,476.448 198,080.264 10

Weekly Dividend Option 98,401.449 119,155.990 106,250.853 111,306.586 10




8 Other Income of Rs. 6,320 (2012: NIL) represents Exit load (net of service tax) credited to the Scheme.


An Income tax demand of Rs. 32.58 crores was purported to be recovered under garnishee proceedings, by Income Tax Authorities in respect of investments made in Pass through Certifi cates (PTC) by some of the debt schemes (including matured schemes) of HSBC Mutual Fund (HSBC MF), for A.Y. 2009-2010. The said demand, impacting various players in the industry, raised originally on the trusts sponsored by


17

HSBC GILT FUND

IL&FS Trust Company Ltd., (Appellants) was sought to be also recovered u/s 177(3) of the Income Tax Act, from HSBC MF. HSBC MF, through its trustees fi led Writ petitions before the Bombay High Court and obtained necessary reliefs for stay of the impugned demand till the adjudication of the appeal by the fi rst Appellate Authority and six weeks thereafter. During last week of April 2013, the fi rst Appellate Authority passed its order giving part relief to Appellant. Against the order granting part relief, the Appellant has fi led an appeal before Income-tax Appellate Tribunal. The appeal is now expected to be heard on 14th August, 2013.



10 Litigations Pending

Pursuant to a compliant fi led by certain investors, SEBI issued a Show Cause notice dated August 7, 2009 to the Board of Trustees of the Fund, the Fund, HSBC Asset Management (India) Private Limited and the then CEO of the HSBC Asset Management (India) Private Limited, (together the “respondents”) pertaining to changes made in the Scheme Information Document of HSBC Gilt Fund via Addendums dated January 05, 2009 and March 02, 2009. However, after considering the submissions made by the respondents, SEBI, vide its order dated April 23, 2010 disposed off the Show Cause Notice dated August 7, 2009. Against this SEBI Order dated April 23, 2010, two appeals were fi led with the Securities Appellate Tribunal (SAT) by certain aggrieved investors (the “appellant”) of HSBC Gilt Fund. SAT issued Orders dated May 03, 2011 and July 05, 2012 in response to these appeals, directing the respondents to comply with Regulation 18(15A) of the SEBI (Mutual Funds) Regulations, 1996 and provide an exit option to the appellants of the case at the then prevailing Net Asset Value. An appeal has been fi led against these Orders by the respondents before the Supreme Court. Supreme Court has admitted the said appeal and passed an Interim Order staying the operation of the SAT judgment under appeal. The matter is currently under litigation before the Supreme Court. Any liability that may arise as a result of an adverse Supreme Court order will be borne by Board of Trustees of HSBC MF as per an undertaking provided by them in accordance with the Supreme Court’s Interim Order.




18

HSBC GILT FUND

















19

HSBC GILT FUND
















20

HSBC GILT FUND

Det

ails

of t

he P

roxy

Vot

es e

xerc

ised

in G

ener

al M

eetin

gs o

f the

Lis

ted

Com

pani

es fo

r the

fi na

ncia

l yea

r end

ed 2

012-

13M

anag

emen

t Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

05-A

pr-2

012

CRI

SIL

Ltd.

Oth

er M

eetin

g�

For

Abs

tain

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

��

�Fo

rFo

r

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

For

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

20-A

pr-2

012

FAG

Bea

rings

Ltd

.A

nnua

l Gen

eral

Mee

ting

��

��

�Fo

rA

bsta

in

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

Abs

tain

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

For

26-N

ov-2

012

Indo

Tech

Tra

nsfo

rmer

s Lt

d.O

ther

Mee

ting

�Fo

rFo

r

Shar

eho

lder

s Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

Nil

Cat

ego

ry1

Alte

ratio

n in

Mem

oran

dum

of

Ass

ocia

tion

of t

he c

ompa

ny c

onta

inin

g M

ain,

Anc

illar

y an

d O

ther

obj

ects

of

the

com

pany

2 Re

ceiv

e, c

onsi

der

and

adop

t th

e A

udite

d Ba

lanc

e Sh

eet

as a

t ye

ar e

nd t

he P

rofi t

and

Los

s A

ccou

nt f

or t

he y

ear

ende

d on

tha

t da

te a

nd t

he R

epor

ts o

f th

e D

irect

ors

and

the

Aud

itors

the

reon

3 D

ecla

ratio

n of

div

iden

d on

Ord

inar

y (E

quity

) Sha

res

and

/ or

Pref

eren

ce s

hare

s4

App

oint

men

t, R

e-ap

poin

tmen

t an

d Re

mov

al o

f D

irect

ors

/ Add

ition

al D

irect

ors

5 A

ppoi

ntm

ent,

Re-

appo

intm

ent

and

Rem

oval

of

Aud

itors

6 St

ock

Opt

ion

plan

s an

d ot

her

man

agem

ent

com

pens

atio

n m

atte

rs7

Rest

ruct

urin

g of

Sha

re c

apita

l (in

clud

ing

stoc

k sp

lits,

con

solid

atio

n, r

educ

tion,

etc

. of

shar

e ca

pita

l)8

Cha

nges

in c

apita

l str

uctu

re in

clud

ing

incr

ease

s an

d de

crea

ses

of E

quity

& p

refe

rred

sto

ck /

war

rant

issu

ance

s9

Cor

pora

te r

estr

uctu

ring

mat

ters

(inc

ludi

ng m

erge

rs, a

cqui

sitio

ns, t

akeo

vers

, sel

l-off

s, t

rans

fer

of c

ontr

ol, c

hang

es in

sta

te o

f in

corp

orat

ion,

Del

isitn

g)




HSBC GILT FUND

HSBC FLEXI DEBT FUND

HSBC Flexi Debt FundAn open-ended Debt Scheme


1


Dear Investor,







Market Outlook:





2






Yours sincerely,

Puneet Chaddha



3















4






HSBC Flexi Debt Fund (HFDF) - an open ended Debt Scheme

HFDF seeks to deliver returns in the form of interest income and capital gains, along with high liquidity, commensurate with the current view on the markets and the interest rate cycle, through active investment in debt and money market instruments.

The net assets of HFDF amounted to Rs. 792.49 crores as at March 31, 2013 as compared to Rs.165.10 crores as at March 31, 2012. Around 92.14% of the net assets were invested in debt and money market instruments, 3.18% was invested in reverse repos/CBLO and 4.68% were in the net current assets as at March 31, 2013.

HFDF outperformed its benchmark through active management of duration.

Date of Inception : 05 October, 2007 Simple Annualized (%) Compounded Annualized (%)




Since Inception

HSBC Flexi Debt Fund - Growth 11.26 9.54 6.07 9.28


CRISIL Composite Bond Fund Index (Scheme Benchmark)

9.27 7.68 5.06 6.96

Rs. 10,000, if invested in HFDF - Growth, would have become

11,126 10,954 10,607 16,286


11,131 10241 10,461 14,283

Rs. 10,000, if invested in CRISIL Composite Bond Fund Index, would have become

10,927 10595 10,506 14,472

Returns data as on March 31, 2013. Past performance may or may not be sustained in future. ‘Since Inception’ returns are calculated on Rs.10 invested at inception. Calculations are based on Growth NAVs.


EQUITY OUTLOOK



NIFTY 7.31

Sensex 8.23

S&P BSE 100 6.84

S&P BSE 200 6.03

S&P BSE 500 4.81

CNX Midcap -4.02

Source: Bloomberg

5









DEBT OUTLOOK











6
















7





Amount (Rs.)

No. of Investors

Amount (Rs.)

No. of Investors

HSBC Flexi Debt Fund 17,383.59 2 – –





Com-plaintCode

Type of complaint#


beginningof theyear


receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 3 3 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


2 40 22 18 2 0 0 0 0 0 0


0 2 1 1 0 0 0 0 0 0 0


0 9 9 0 0 0 0 0 0 0 0


0 6 5 0 0 0 0 1 0 0 0


0 277 277 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0

8



Com-plaintCode

Type of complaint#


beginningof theyear


receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 18 18 0 0 0 0 0 0 0 0

IV Others 0 14 12 1 1 0 0 0 0 0 0

Total 2 369 347 20 3 0 0 1 0 0 0

Note:









Sd/-

Dilip J. Thakkar

Trustee

MUMBAIJuly 16, 2013

9


Auditors’ Report


HSBC Mutual Fund

Report on the Financial Statements1. We have audited the accompanying fi nancial statements of HSBC Mutual Fund - HSBC Flexi Debt Fund














10







Sd/-



11


Rs. in Lakhs

HSBC FLEXI DEBT FUNDAs at

March 31, 2013As at

March 31, 2012

LIABILITIES1 Unit Capital 58,640.48 12,828.172 Reserves & Surplus2.1 Unit Premium Reserves 2,731.38 295.392.2 Unrealised Appreciation Reserve 156.89 22.212.3 Other Reserves 17,720.27 3,364.133 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 2,727.75 61.79

TOTAL 81,976.77 16,571.69

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds 33,416.53 4,771.501.1.5 Securitised Debt Securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt Securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – 997.811.3.5 Securitised Debt Securities – –1.4 Government Securities 14,444.11 600.961.5 Treasury Bills – –1.6 Commercial Paper 2,944.99 –1.7 Certifi cate of Deposits 22,216.25 9,161.561.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –

Total Investments 73,021.88 15,531.832 Deposits – –3 Other Current Assets3.1 Cash & Bank Balance 1,326.46 65.813.2 CBLO/Reverse Repo Lending 2,521.39 288.313.3 Others 5,107.04 685.744 Deferred Revenue Expenditure – –


TOTAL 81,976.77 16,571.69Notes to Accounts - Annexure I


12



Rs. in Lakhs

HSBC FLEXI DEBT FUNDCurrent


Previous Year ended

March 31, 2012

1 INCOME1.1 Dividend – –1.2 Interest 4,050.17 728.891.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of

investments1,502.56 82.94


(A) 5,571.73 811.85

2 EXPENSES2.1 Management fees 351.65 51.022.2 Service tax on Management fees 43.46 5.262.3 Transfer agents fees and expenses 24.72 5.212.4 Custodian fees 5.04 1.362.5 Trusteeship fees 0.03 0.022.6 Commission to Agents* – –2.7 Marketing & Distribution expenses 809.06 99.452.8 Audit fees 1.27 0.522.9 Investor Education Expenses 6.22 –2.10 Other operating expenses 4.71 1.072.11 Less:Expenses to be Reimbursed by the Investment Manager (420.59) (35.03)

(B) 825.57 128.88

3 NET REALISED GAINS / (LOSSES) FORTHE YEAR (A - B = C) 4,746.16 682.97

4 Change in Unrealised Depreciationin value of investments (D) 70.02 15.86


6 Change in unrealised appreciation in the value ofinvestments (F) 134.68 13.89

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 4,810.82 681.00

7.1 Add: Balance transfer from Unrealised Appreciation Reserve – –7.2 Less: Balance transfer to Unrealised Appreciation Reserve 134.68 13.897.3 Add / (Less): Equalisation 12,089.80 1,909.52



8 TOTAL 20,130.07 3,579.91

9 Dividend Appropriation9.1 Income Distributed during the year 2,057.73 186.109.2 Tax on income distributed during the year 352.07 29.6810 Retained Surplus / (Defi cit) carried forward

to Balance Sheet 17,720.27 3,364.13



13





Previous Year ended

March 31, 2012


Regular Plan - Growth Option 14.3775 13.1704Regular Plan - Fortnightly Dividend Option 10.7344 10.7327Regular Plan - Monthly Dividend Option 10.3039 10.3414Regular Plan - Quarterly Dividend Option 11.4909 11.1421Regular Plan - Half Yearly Dividend Option 10.9104 10.6003Growth Option **** 14.6048 13.3320Fortnightly Dividend Option **** 10.0045 10.0579Monthly Dividend Option **** 10.5337 10.5730Quarterly Dividend Option **** 11.3730 10.9965Half Yearly Dividend Option **** – 10.2816Direct Plan - Growth Option N.A. N.A.Direct Plan - Fortnightly Dividend Option N.A. N.A.Direct Plan - Monthly Dividend Option N.A. N.A.Direct Plan - Quarterly Dividend Option N.A. N.A.Direct Plan - Half Yearly Dividend Option N.A. N.A.

HighRegular Plan - Growth Option 15.9387 14.3775Regular Plan - Fortnightly Dividend Option 10.9839 10.8320Regular Plan - Monthly Dividend Option 10.5988 10.4783Regular Plan - Quarterly Dividend Option 12.0686 11.6632Regular Plan - Half Yearly Dividend Option 11.6629 11.2844Growth Option **** 16.2393 14.6048Fortnightly Dividend Option **** 10.2695 10.1234Monthly Dividend Option **** 10.8407 10.7160Quarterly Dividend Option **** 11.9737 11.5438Half Yearly Dividend Option **** 10.9757 10.3141Direct Plan - Growth Option 16.2765 N.A.Direct Plan - Fortnightly Dividend Option 10.2727 N.A.Direct Plan - Monthly Dividend Option 10.7117 N.A.Direct Plan - Quarterly Dividend Option 12.0001 N.A.Direct Plan - Half Yearly Dividend Option 10.9999 N.A.

LowRegular Plan - Growth Option 14.3848 13.1836Regular Plan - Fortnightly Dividend Option 10.7201 10.7225Regular Plan - Monthly Dividend Option 10.3022 10.2998Regular Plan - Quarterly Dividend Option 11.4967 11.1533Regular Plan - Half Yearly Dividend Option 10.9159 10.6120Growth Option **** 14.6126 13.3459Fortnightly Dividend Option **** 10.0001 9.9923Monthly Dividend Option **** 10.5315 10.5319Quarterly Dividend Option **** 11.3791 11.0080Half Yearly Dividend Option **** 10.0050 10.2923Direct Plan - Growth Option 16.0200 N.A.

14





Previous Year ended

March 31, 2012

Direct Plan - Fortnightly Dividend Option 10.1196 N.A.Direct Plan - Monthly Dividend Option 10.5984 N.A.Direct Plan - Quarterly Dividend Option 11.7072 N.A.Direct Plan - Half Yearly Dividend Option 10.5893 N.A.

End5

Regular Plan - Growth Option 15.9387 14.3775Regular Plan - Fortnightly Dividend Option 10.7422 10.7344Regular Plan - Monthly Dividend Option 10.3235 10.3039Regular Plan - Quarterly Dividend Option 11.8526 11.4909Regular Plan - Half Yearly Dividend Option 11.2716 10.9104Growth Option **** 16.2393 14.6048Fortnightly Dividend Option **** 10.0451 10.0045Monthly Dividend Option **** 10.5732 10.5337Quarterly Dividend Option **** 11.7590 11.3730Half Yearly Dividend Option **** 10.5850 –Direct Plan - Growth Option 10.6297 N.A.Direct Plan - Fortnightly Dividend Option 10.1531 N.A.Direct Plan - Monthly Dividend Option 16.2765 N.A.Direct Plan - Quarterly Dividend Option 11.7912 N.A.Direct Plan - Half Yearly Dividend Option 10.6143 N.A.



Regular Plan - Growth Option 1.90% 1.85%Regular Plan - Fortnightly Dividend Option 1.90% 1.85%Regular Plan - Monthly Dividend Option 1.90% 1.85%Regular Plan - Quarterly Dividend Option 1.90% 1.85%Regular Plan - Half Yearly Dividend Option 1.90% 1.85%Growth Option **** 1.62% 1.50%Fortnightly Dividend Option **** 1.62% 1.50%Monthly Dividend Option **** 1.62% 1.50%Quarterly Dividend Option **** 1.62% 1.50%Half Yearly Dividend Option **** 1.62% 1.50%Direct Plan - Growth Option 0.50% N.A.Direct Plan - Fortnightly Dividend Option 0.50% N.A.Direct Plan - Monthly Dividend Option 0.50% N.A.Direct Plan - Quarterly Dividend Option 0.50% N.A.Direct Plan - Half Yearly Dividend Option 0.50% N.A.

b. Management Fee as % of AAuM (planwise)Regular Plan - Growth Option 0.75% 0.64%Regular Plan - Fortnightly Dividend Option 0.75% 0.64%Regular Plan - Monthly Dividend Option 0.75% 0.64%

15




Previous Year ended

March 31, 2012

Regular Plan - Quarterly Dividend Option 0.75% 0.64%Regular Plan - Half Yearly Dividend Option 0.75% 0.64%Growth Option **** 0.75% 0.64%Fortnightly Dividend Option **** 0.75% 0.64%Monthly Dividend Option **** 0.75% 0.64%Quarterly Dividend Option **** 0.75% 0.64%Half Yearly Dividend Option **** 0.75% 0.64%Direct Plan - Growth Option 0.75% N.A.Direct Plan - Fortnightly Dividend Option 0.75% N.A.Direct Plan - Monthly Dividend Option 0.75% N.A.Direct Plan - Quarterly Dividend Option 0.75% N.A.Direct Plan - Half Yearly Dividend Option 0.75% N.A.


Regular Plan - Fortnightly Dividend Option 0.5297 0.8296Regular Plan - Monthly Dividend Option 0.9257 0.8327Regular Plan - Quarterly Dividend Option 0.7488 0.5726Regular Plan - Half Yearly Dividend Option 0.7047 0.5726Fortnightly Dividend Option **** 0.9060 0.3497Monthly Dividend Option **** 0.9576 0.8849Quarterly Dividend Option **** 0.7488 0.5726Half Yearly Dividend Option **** 0.3524 –Direct Plan - Fortnightly Dividend Option 0.2500 N.A.Direct Plan - Monthly Dividend Option 0.1262 N.A.Direct Plan - Quarterly Dividend Option 0.1982 N.A.Direct Plan - Half Yearly Dividend Option 0.3524 N.A.

CorporateRegular Plan - Fortnightly Dividend Option 0.4540 0.7162Regular Plan - Monthly Dividend Option 0.7934 0.7214Regular Plan - Quarterly Dividend Option 0.6418 0.4908Regular Plan - Half Yearly Dividend Option 0.6040 0.4908Fortnightly Dividend Option **** 0.7766 0.3050Monthly Dividend Option **** 0.8208 0.7667Quarterly Dividend Option **** 0.6418 0.4908Half Yearly Dividend Option **** 0.3020 –Direct Plan - Fortnightly Dividend Option 0.2143 N.A.Direct Plan - Monthly Dividend Option 0.1081 N.A.Direct Plan - Quarterly Dividend Option 0.1699 N.A.Direct Plan - Half Yearly Dividend Option 0.3020 N.A.


Regular Plan - Growth Option 10.9000 9.3000Regular Plan - Fortnightly Dividend Option 9.5600 8.1000


16





Previous Year ended

March 31, 2012

Regular Plan - Monthly Dividend Option 9.5800 8.1200Regular Plan - Quarterly Dividend Option 9.9600 8.5700Regular Plan - Half Yearly Dividend Option 9.9900 8.5600Growth Option **** 11.2300 9.6800Fortnightly Dividend Option **** 9.9000 –Monthly Dividend Option **** 9.9000 8.4500Quarterly Dividend Option **** 10.2900 8.9400Half Yearly Dividend Option **** N.A. –Direct Plan - Growth Option N.A. N.A.Direct Plan - Fortnightly Dividend Option N.A. N.A.Direct Plan - Monthly Dividend Option N.A. N.A.Direct Plan - Quarterly Dividend Option N.A. N.A.Direct Plan - Half Yearly Dividend Option N.A. N.A.

BenchmarkCRISIL Composite Bond Fund Index 9.30% 7.6915


Regular Plan - Growth Option 8.8900 8.4400Regular Plan - Fortnightly Dividend Option 7.8700 7.4900Regular Plan - Monthly Dividend Option 7.8400 7.4500Regular Plan - Quarterly Dividend Option 8.2400 7.8100Regular Plan - Half Yearly Dividend Option 6.5900 5.5600Growth Option **** 9.2600 8.8200Fortnightly Dividend Option **** 7.0500 6.4200Monthly Dividend Option **** 8.2300 7.8600Quarterly Dividend Option **** 8.9300 8.5400Half Yearly Dividend Option **** 2.2600 –Direct Plan - Growth Option 1.0900 N.A.Direct Plan - Fortnightly Dividend Option 2.3900 N.A.Direct Plan - Monthly Dividend Option 1.2300 N.A.Direct Plan - Quarterly Dividend Option 2.5000 N.A.Direct Plan - Half Yearly Dividend Option 2.2900 N.A.

BenchmarkCRISIL Composite Bond Fund Index 6.95% 6.44%


and not the last declared NAV**** Earlier known as Institutional Plan.

17



HSBC FLEXI DEBT FUND1 Investments:


1.2 Open Positions of derivatives as a % to Net Assets as of years ended March 31, 2013 and March 31, 2012 are NIL.




by all schemes


by all schemes

2013 2012


Fixed deposits

– – – 32,000,000



1.6 Aggregate Unrealised Gain / Loss as at the end of the fi nancial years and percentages to net assets is as under:



2013 2012


– Appreciation 12,581,202 0.1588% 345,986 0.0210%

– Depreciation 211,766 0.00% ~ 1,034,208 0.0626%

Non Convertible Debentures and Bonds Privately Placed


– Depreciation – – 218,527 0.0132%

Certifi cate of Deposit

– Appreciation 3,636,945 0.0459% 2,750,059 0.1666%

– Depreciation 317,282 0.00% ~ 528,854 0.0320%


– Appreciation 313,987 0.00% ~ – –

– Depreciation 8,911,694 0.1125% 689,198 0.0417%



The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2011-2012 (excluding accretion of discount) are Rs. 13,257,745,283 and Rs. 12,231,668,131 respectively being 1,650.19% and 1,522.47% of the average daily net assets.

18



Aggregate Value of Equity, Debt & Money Market Instruments and percentage to net assets is as under :

Security Category Fair Value (Rupees)


Fair Value (Rupees)


2013 2012


Money Market Instruments 2,516,124,243 31.75% 916,155,155 55.49%

Total 5,857,777,513 73.92% 1,493,086,926 90.44%

2 Disclosure Under Regulation 25(8) of the Securities And Exchange Board Of India (Mutual Funds) Regulations, 1996 as amended





Relation

Period Covered


% of Total Business


Commission paid

[Rupees]


Fund


Associate 2012-2013 362.94 38.09 19,097,181 30.25


Associate 2012-2013 0.02 0.00~ 4,948 0.01



Relation

Period Covered


% of Total Business


Commission paid

[Rupees]


Fund


Associate 2011-2012 52.36 31.60 2,473,081 17.48


Associate 2011-2012 0.15 0.09 4,595 0.03






19



Description

2012 - 2013


(Rs.)

Regular Plan - Growth Option

22,165,759.599 76,320,520.241 32,936,077.122 65,550,202.718 10

Regular Plan - Monthly Dividend Option

19,722,985.322 107,176,907.191 58,987,109.711 67,912,782.802 10

Regular Plan - Fortnightly Dividend Option

2,787,007.878 29,621,933.552 16,258,240.562 16,150,700.868 10

Regular Plan - Quarterly Dividend Option

11,437,491.825 40,099,905.687 26,101,709.309 25,435,688.203 10

Regular Plan - Half Yearly Dividend Option

266,406.608 4,659,124.666 4,051,195.007 874,336.267 10

Growth Option **** 47,962,900.448 215,412,026.659 51,082,827.880 212,292,099.227 10

Monthly Dividend Option ****

1,912,701.096 141,587,681.216 41,899,330.886 101,601,051.426 10

Fortnightly Dividend Option ****

4,613,865.180 41,226,710.907 11,429,334.045 34,411,242.042 10

Quarterly Dividend Option ****

17,412,594.071 53,685,359.523 35,156,074.819 35,941,878.775 10

Half Yearly Dividend Option ****

– 3,722,657.623 2,771.081 3,719,886.542 10


– 22,230,898.287 – 22,230,898.287 10

Direct Plan - Fortnightly Dividend Option

– 154,753.120 – 154,753.120 10


– 8,545.110 – 8,545.110 10


– 108,228.854 – 108,228.854 10

Direct Plan - Half Yearly Dividend Option

– 12,479.863 – 12,479.863 10


20


Description

2011-2012

Opening Units Subscription Redemption Closing UnitsFace

Value per Unit (Rs.)

Regular Plan - Growth Option

1,021,203.630 31,167,088.207 10,022,532.238 22,165,759.599 10

Regular Plan - Monthly Dividend Option

1,559,063.997 27,374,780.726 9,210,859.401 19,722,985.322 10

Regqqq 105,430.553 4,245,512.563 1,563,935.238 2,787,007.878 10

Regular Plan - Quarterly Dividend Option

1,052,037.191 11,002,876.992 617,422.358 11,437,491.825 10

Regular Plan - Half Yearly Dividend Option

966.352 265,440.256 – 266,406.608 10

Growth Option **** 20,698,292.233 35,688,003.731 8,423,395.516 47,962,900.448 10

Monthly Dividend Option ****

1,150,495.664 1,793,670.028 1,031,464.596 1,912,701.096 10

Fortnightly Dividend Option ****

6,951,450.006 4,765,915.178 7,103,500.004 4,613,865.180 10

Quarter ly D iv idend Option ****

7,728,094.909 10,586,041.701 901,542.539 17,412,594.071 10

Half Yearly Dividend Option ****

5,526,418.415 – 5,526,418.415 – 10




8 Other Income of Rs. 1,899,886 (2012: Rs.1,819) represents Exit load (net of service tax) credited to the Scheme.





21






**** Earlier known as Institutional Plan

22


















23

















24


Det

ails

of t

he P

roxy

Vot

es e

xerc

ised

in G

ener

al M

eetin

gs o

f the

Lis

ted

Com

pani

es fo

r the

fi na

ncia

l yea

r end

ed 2

012-

13M

anag

emen

t Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

05-A

pr-2

012

CRI

SIL

Ltd.

Oth

er M

eetin

g�

For

Abs

tain

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

��

�Fo

rFo

r

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

For

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

20-A

pr-2

012

FAG

Bea

rings

Ltd

.A

nnua

l Gen

eral

Mee

ting

��

��

�Fo

rA

bsta

in

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

Abs

tain

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

For

26-N

ov-2

012

Indo

Tech

Tra

nsfo

rmer

s Lt

d.O

ther

Mee

ting

�Fo

rFo

r

Shar

eho

lder

s Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

Nil

Cat

ego

ry1

Alte

ratio

n in

Mem

oran

dum

of

Ass

ocia

tion

of t

he c

ompa

ny c

onta

inin

g M

ain,

Anc

illar

y an

d O

ther

obj

ects

of

the

com

pany

2 Re

ceiv

e, c

onsi

der

and

adop

t th

e A

udite

d Ba

lanc

e Sh

eet

as a

t ye

ar e

nd t

he P

rofi t

and

Los

s A

ccou

nt f

or t

he y

ear

ende

d on

tha

t da

te a

nd t

he R

epor

ts o

f th

e D

irect

ors

and

the

Aud

itors

the

reon

3 D

ecla

ratio

n of

div

iden

d on

Ord

inar

y (E

quity

) Sha

res

and

/ or

Pref

eren

ce s

hare

s4

App

oint

men

t, R

e-ap

poin

tmen

t an

d Re

mov

al o

f D

irect

ors

/ Add

ition

al D

irect

ors

5 A

ppoi

ntm

ent,

Re-

appo

intm

ent

and

Rem

oval

of

Aud

itors

6 St

ock

Opt

ion

plan

s an

d ot

her

man

agem

ent

com

pens

atio

n m

atte

rs7

Rest

ruct

urin

g of

Sha

re c

apita

l (in

clud

ing

stoc

k sp

lits,

con

solid

atio

n, r

educ

tion,

etc

. of

shar

e ca

pita

l)8

Cha

nges

in c

apita

l str

uctu

re in

clud

ing

incr

ease

s an

d de

crea

ses

of E

quity

& p

refe

rred

sto

ck /

war

rant

issu

ance

s9

Cor

pora

te r

estr

uctu

ring

mat

ters

(inc

ludi

ng m

erge

rs, a

cqui

sitio

ns, t

akeo

vers

, sel

l-off

s, t

rans

fer

of c

ontr

ol, c

hang

es in

sta

te o

f in

corp

orat

ion,

Del

isitn

g)

HSBC Fixed Term SeriesA close-ended Income Scheme


HSBC FTP Series

1

HSBC FTP Series

Dear Investor,







Market Outlook:





2

HSBC FTP Series





Yours sincerely,

Puneet Chaddha



3

HSBC FTP Series








REGISTRAR & TRANSFER AGENTSComputer Age Management Services (P) Ltd. (CAMS)No.4. Nehru Nagar West, Kalapatti Main Road, Civil Aerodrome Post, Coimbatore - 641 014.






4

HSBC FTP Series





HSBC Fixed Term Series - a close ended Income Scheme with fi ve plans i.e. Series 82 and 86

The Scheme seeks to generate returns by investing in a portfolio of fi xed income instruments which mature on or before the maturity date of the Plans under the Scheme.

The Scheme launched three Plans i.e. Series 82, Series 83 each having tenure of 370 days and Series 86 having tenure of 375 days. Series 82 was launched on January 17, 2012, Series 83 was launched on January 18, 2012 and Series 86 was launched on March 19, 2012. The performance of the plans is benchmarked against CRISIL Short Term Bond Fund Index. Being closed ended fi xed maturity plans, the performance of the Schemes is not provided.

HSBC Fixed Term Series - a close ended Income Scheme - Series 89 and 90

The Scheme seeks to generate returns by investing in a portfolio of fi xed income instruments which mature on or before the maturity date of the Plans under the Scheme.

The Scheme launched two Plans i.e. Series 89 & Series 90 during the year, each having tenure of 374 days and 375 days respectively. Series 89 and Series 90 were launched on March 22, 2013. The performance of the plans is benchmarked against CRISIL Short Term Bond Fund Index. Being closed ended fi xed maturity plans, the performance of the Schemes is not provided.


EQUITY OUTLOOK



NIFTY 7.31

Sensex 8.23

S&P BSE 100 6.84

S&P BSE 200 6.03

S&P BSE 500 4.81

CNX Midcap -4.02

Source: Bloomberg




5

HSBC FTP Series





DEBT OUTLOOK















6

HSBC FTP Series




The Trust has been formed for the purpose of pooling of capital from the public for collective investment in securities/any other property for the purpose of providing facilities for participation by persons as benefi ciaries in such properties / investments and in the profi ts / income arising therefrom.







5. UNCLAIMED DIVIDENDS & REDEMPTIONSNil.


7

HSBC FTP Series





Com-plaintCode

Type of complaint#


beginningof theyear


receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 3 3 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


2 40 22 18 2 0 0 0 0 0 0


0 2 1 1 0 0 0 0 0 0 0


0 9 9 0 0 0 0 0 0 0 0


0 6 5 0 0 0 0 1 0 0 0


0 277 277 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 18 18 0 0 0 0 0 0 0 0

IV Others 0 14 12 1 1 0 0 0 0 0 0

Total 2 369 347 20 3 0 0 1 0 0 0

Note:


8

HSBC FTP Series









Sd/-

Dilip J. Thakkar

Trustee

MUMBAIJuly 16, 2013.

9

HSBC FTP Series



HSBC Mutual Fund

Report on the Financial Statements1. We have audited the accompanying fi nancial statements of HSBC Mutual Fund - HSBC Fixed Term Series

86 (the “Scheme”), which comprise the Balance Sheet as at March 31, 2013, and the related Revenue Account and Cash Flow Statement for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.





4. An audit involves performing procedures to obtain audit evidence, about the amounts and disclosures in the fi nancial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the fi nancial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the preparation and fair presentation of the fi nancial statements in order to design audit procedures that are appropriate in the circumstances. Our procedures included confi rmation of securities owned and unit capital balances as at March 31, 2013 by correspondence with the custodian / others and registrar and transfer agent, respectively. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Trustee and the Management, as well as evaluating the overall presentation of the fi nancial statements.









10

HSBC FTP Series




9. In our opinion, the methods used to value non-traded securities where applicable as at March 31, 2013, as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds as mentioned in the Eighth Schedule of the Regulations issued by the Securities and Exchange Board of India, are fair and reasonable.


Sd/-


Place : MumbaiDate : July 16, 2013.

11

HSBC FTP Series



HSBC Mutual Fund


89 (the “Scheme”), which comprise the Balance Sheet as at March 31, 2013, and the related Revenue Account and Cash Flow Statement for the period from March 22, 2013 to March 31, 2013, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.










(b) in the case of the Revenue Account, of the net surplus for the period from March 22, 2013 to March 31, 2013; and

(c) in the case of the Cash Flow Statement, of the cash fl ows for the period from March 22, 2013 to March 31, 2013.

12

HSBC FTP Series








Sd/-



13

HSBC FTP Series



HSBC Mutual Fund


90 (the “Scheme”), which comprise the Balance Sheet as at March 31, 2013, and the related Revenue Account and Cash Flow Statement for the period from March 22, 2013 to March 31, 2013, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.





4. An audit involves performing procedures to obtain audit evidence, about the amounts and disclosures in the fi nancial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the fi nancial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the preparation and fair presentation of the fi nancial statements in order to design audit procedures that are appropriate in the circumstances. Our procedures included confi rmation of securities owned and unit capital balances as at March 31, 2013 by correspondence with the custodian / others and registrar and transfer agent, respectively. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Trustee and the Management, as well as evaluating the overall presentation of the fi nancial statements.





(b) in the case of the Revenue Account, of the net surplus for the period from March 22, 2013 to March 31, 2013; and

(c) in the case of the Cash Flow Statement, of the cash fl ows for the period from March 22, 2013 to March 31, 2013.

14

HSBC FTP Series







Sd/-




15

HSBC FTP Series

Rs. in Lakhs

HSBC FIXED TERM SERIES 86As at

March 31, 2013As at

March 31, 2012

LIABILITIES1 Unit Capital 21,567.60 21,567.602 Reserves & Surplus2.1 Unit Premium Reserves – –2.2 Unrealised Appreciation Reserve – 77.972.3 Other Reserves 2,317.95 52.733 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 4.31 1.22

TOTAL 23,889.86 21,699.52

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt Securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt Securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt Securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits 19,613.78 21,669.091.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –

Total Investments 19,613.78 21,669.092 Deposits – –3 Other Current Assets3.1 Cash & Bank Balance 0.61 0.283.2 CBLO / Reverse Repo Lending 4,267.14 29.613.3 Others 8.33 0.544 Deferred Revenue Expenditure (to the extent not written off) – –

TOTAL 23,889.86 21,699.52



16

HSBC FTP Series

Rs. in Lakhs

HSBC FIXED TERM SERIES 89#

HSBC FIXED TERM SERIES 90 #



LIABILITIES1 Unit Capital 8,472.47 6,429.582 Reserves & Surplus2.1 Unit Premium Reserves – –2.2 Unrealised Appreciation Reserve – –2.3 Other Reserves 9.19 7.963 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 1,009.31 0.43

TOTAL 9,490.97 6,437.97ASSETS

1 Investments1.1 Listed Securities:1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt Securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt Securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds 688.44 –1.3.5 Securitised Debt Securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits 7,789.34 6,424.851.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –

Total Investments 8,477.78 6,424.852 Deposits – –3 Other Current Assets3.1 Cash & Bank Balance 0.00 ~ 0.00 ~3.2 CBLO / Reverse Repo Lending 3.78 12.913.3 Others 1,009.41 0.214 Deferred Revenue Expenditure (to the extent not written off) – –

TOTAL 9,490.97 6,437.97

# Scheme launched during the current fi nancial year ~ Indicates less than 0.01Notes to Accounts - Annexure I


17

HSBC FTP Series


Rs. in Lakhs

HSBC FIXED TERM SERIES 86Current



March 31, 2012

1 INCOME1.1 Dividend – –1.2 Interest 2,279.67 53.411.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of

investments8.89 –


(A) 2,288.56 53.412 EXPENSES2.1 Management fees 13.59 0.322.2 Service tax on Management fees 1.68 0.032.3 Transfer agents fees and expenses 3.40 0.402.4 Custodian fees 3.18 0.042.5 Trusteeship fees – –2.6 Commission to Agents * – –2.7 Marketing & Distribution expenses 0.01 –2.8 Audit fees 0.20 0.202.9 Investor Education Expenses 2.33 0.202.10 Other operating expenses 0.25 0.222.11 Less : Expenses to be Reimbursed by the Investment Manager (1.79) (0.53)

(B) 22.85 0.68

3 NET REALISED GAINS / (LOSSES)FOR THE YEAR / PERIOD (A - B = C) 2,265.71 52.73

4 Change in Unrealised Depreciation invalue of investments (D) 0.49 –

5 NET GAINS / (LOSSES) FOR THE PERIOD [E = (C - D)] 2,265.22 52.73

6 Change in unrealised appreciation in thevalue of investments (F) (77.97) 77.97

7 NET SURPLUS / (DEFICIT) FOR THE PERIOD (E + F = G) 2,187.25 130.707.1 Add: Balance transfer from Unrealised Appreciation Reserve 77.97 –7.2 Less: Balance transfer to Unrealised Appreciation Reserve – 77.977.3 Add / (Less): Equalisation – –7.4 Transfer from Reserve Fund 52.73 –


8 TOTAL 2,317.95 52.73

9 Dividend appropriation9.1 Income Distributed during the period – –9.2 Tax on income distributed during the period – –10 Retained Surplus / (Defi cit) carried forward to

Balance sheet 2,317.95 52.73



18

HSBC FTP Series

Abridged Revenue Account for the period ended March 31, 2013 (Contd...)

Rs. in Lakhs



Current Period ended

March 31, 2013


March 31, 2013

1 INCOME1.1 Dividend – –1.2 Interest 13.06 10.181.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of investments – –1.6 Realised Gains / (Losses) on Derivative Transactions – –1.7 Other Income – –

(A) 13.06 10.18

2 EXPENSES2.1 Management fees 0.08 0.052.2 Service tax on Management fees 0.01 0.012.3 Transfer agents fees and expenses 0.08 0.062.4 Custodian fees 0.01 0.012.5 Trusteeship fees – –2.6 Commission to Agents * – –2.7 Marketing & Distribution expenses – –2.8 Audit fees 0.20 0.202.9 Investor Education Expenses 0.03 0.022.10 Other operating expenses 0.19 0.092.11 Less : Expenses to be Reimbursed by the Investment Manager (0.01) (0.19)

(B) 0.59 0.25

3 NET REALISED GAINS / (LOSSES)FOR THE PERIOD (A - B = C) 12.47 9.93

4 Change in Unrealised Depreciation in value of investments (D) 3.28 1.97

5 NET GAINS / (LOSSES) FOR THE PERIOD [E = (C - D)] 9.19 7.96

6 Change in unrealised appreciation in the valueof investments (F) – –

7 NET SURPLUS / (DEFICIT) FOR THE PERIOD (E + F = G) 9.19 7.967.1 Add: Balance transfer from Unrealised Appreciation Reserve – –7.2 Less: Balance transfer to Unrealised Appreciation Reserve – –7.3 Add / (Less): Equalisation – –7.4 Transfer from Reserve Fund – –7.5 Transfer from Unit Premium Reserve – –

8 TOTAL 9.19 7.96

9 Dividend appropriation9.1 Income Distributed during the period – –9.2 Tax on income distributed during the period – –

10 Retained Surplus / (Defi cit) carried forward to Balance sheet 9.19 7.96

# Scheme launched during the current fi nancial year



19

HSBC FTP Series


HSBC FIXED TERM SERIES 86Current



March 31, 2012


Regular Growth Option 10.0606 –Regular Dividend Option 10.0606 –

HighRegular Growth Option 11.0747 10.0606Regular Dividend Option 11.0747 10.0606

LowRegular Growth Option 10.0762 10.0020Regular Dividend Option 10.0762 10.0020

End5

Regular Growth Option 11.0747 10.0606Regular Dividend Option 11.0747 10.0606


3. Gross income as % of AAuM2* 10.02% 9.02%4. Expense Ratio: a. Total Expense as % of AAuM (planwise)*

Regular Growth Option 0.10% 0.11%Regular Dividend Option 0.10% 0.11%

b. Management Fee as % of AAuM (planwise)*Regular Growth Option 0.06% 0.05%Regular Dividend Option 0.06% 0.05%

5. Net Income as a percentage of AAuM3* 9.92% 8.90%6. Portfolio turnover ratio4 – –7. Total Dividend per unit distributed during the period (planwise) Retail

Regular Dividend Option – – Corporate

Regular Dividend Option – –8. Returns (%): a. Last One Year Scheme

Regular Growth Option 10.27% N.ARegular Dividend Option 10.27% N.A

BenchmarkCRISIL Short-Term Bond Fund Index 9.10% N.A


Regular Growth Option 10.46% 0.58%Regular Dividend Option 10.46% N.A

BenchmarkCRISIL Short-Term Bond Fund Index 9.12% 0.2300

* Indicates annualised value1 AAuM = Average daily net assets2 Gross income = amount against (A) in the Revenue account i.e. Income3 Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the period4 Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the period5 The net asset value disclosed represents the computed NAV on March 31, 2012 (Non-business Day),


20

HSBC FTP Series

Key Statistics for the period ended March 31, 2013 (Contd...)




March 31, 2013


March 31, 2013


Open

Regular Growth Option – N.A

Regular Dividend Option – N.A

Direct Plan - Regular Growth Option – N.A

Direct Plan - Regular Dividend Option – N.A

High


Regular Dividend Option 10.0108 10.0122

Direct Plan - Regular Growth Option 10.0113 10.0126


Low





End






End 8,482 6,438


3. Gross income as % of AAuM2 * 9.37% 8.25%

4. Expense Ratio:

a. Total Expense as % of AAuM (planwise) *


Regular Dividend Option 0.41% 0.27%

Direct Plan - Regular Growth Option 0.11% 0.08%


b. Management Fee as % of AAuM (planwise) *



Direct Plan - Regular Growth Option 0.06% 0.04%

Direct Plan - Regular Dividend Option –

5. Net Income as a percentage of AAuM3 * 8.95% 8.04%

21

HSBC FTP Series




March 31, 2013


March 31, 2013


7. Total Dividend per unit distributed during the period (planwise)

Retail

Regular Dividend Option N.A N.A

Direct Plan - Regular Dividend Option N.A N.A

Corporate



8. Returns(%):

a. Last One Year

Scheme

Regular Growth Option N.A N.A


Direct Plan - Regular Growth Option N.A N.A


Benchmark

CRISIL Short-Term Bond Fund Index N.A N.A

b. Since Inception

Scheme



Direct Plan - Regular Growth Option N.A 0.08%


Benchnmark

CRISIL Short-Term Bond Fund Index 0.04% 0.05%


* Indicates annualised value1 AAuM = Average daily net assets2 Gross income = amount against (A) in the Revenue account i.e. Income3 Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the period4 Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the period5 The net asset value disclosed represents the computed NAV on March 31, 2013 (Non-business Day),


Key Statistics for the period ended March 31, 2013 (Contd...)

22

HSBC FTP Series


HSBC FIXED TERM SERIES 86

1 Investments:


1.2 Open Positions of derivatives as of period ended March 31, 2013 and March 31, 2012 are NIL.




by all schemes


by all schemes

2013 2012


Fixed deposits

– – – 32,000,000

1.4 Open position of Securities Borrowed and / or Lent by the Scheme as of fi nancial period ended March 31, 2013 and March 31, 2012 are NIL.

1.5 NPAs as on March 31, 2013 and March 31, 2012 is NIL.

1.6 Aggregate Unrealised Gain / Loss as at the end of the fi nancial period and percentage to net assets.



2013 2012


– Appreciation 6,722 0.00 ~ 7,797,025 0.3593%

– Depreciation 55,627 0.00 ~ – –


1.7 The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2012-2013 (excluding accretion of discount) are Rs. 1,953,556,133 and Rs. 2,379,043,750 respectively being 85.50% and 104.12% of the average daily net assets.

The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial period 2011-2012 (excluding accretion of discount) are Rs. 2,156,421,886 and Rs. Nil respectively being 99.75% and 0.00% of the average daily net assets.


Aggregate Value of Equity, Debt & Money Market Instruments and percentages to net assets are as under :

Security Category Amount (Rupees)


Amount (Rupees)


2013 2012

Money Market Instruments 1,961,377,558 82.12% 2,166,908,798 99.87%

23

HSBC FTP Series


Commission paid to Sponsor / AMC and its associates / related parties / group companies


Nature of Association

/ Nature of Relation

Period Covered

Business Given [Rs.in

Crores]


Commission paid

[Rupees] *


Fund


Associate 2012-2013 0.74 77.64 – –

HSBC InvestDirect Securities (India) Limited Associate 2012-2013 – – – –




Period Covered


Crores]


Commission paid

[Rupees] *


Fund


Associate 2011-2012 56.29 26.10 – –

HSBC InvestDirect Securities (India) Limited Associate 2011-2012 0.10 0.05 – –

* Borne by HSBC Asset Management (India) Private Limited



3 None of the Investors held more than 25% of the total net assets of the Scheme at the period ended March 31, 2013 and March 31, 2012.

4 Unit Capital movement during the period ended March 31, 2013 and March 31, 2012.

2012-2013


Growth Option 214,439,618.882 – – 214,439,618.882 10

Dividend Option 1,236,405.805 – – 1,236,405.805 10

2011-2012

Description Opening Units

Subscription Redemption Closing Units Face Value

Regular Growth Option – 214,439,618.882 – 214,439,618.882 10

Regular Dividend Option – 1,236,405.805 – 1,236,405.805 10

5 No contingent liabilities for the period ended March 31, 2013 and March 31, 2012.


24

HSBC FTP Series




25

HSBC FTP Series

Notes to Accounts - Annexure ITo the Abridged Balance Sheet and Revenue Account for the period ended March 31, 2013


1 Investments:


1.2 Open Positions of derivatives as of period ended March 31, 2013 is NIL.

1.3 Investments in Associates and Group Companies as of period ended March 31, 2013 is NIL.

1.4 Open position of Securities Borrowed and / or Lent by the Scheme as of fi nancial period ended March 31, 2013 is NIL.

1.5 NPAs as on March 31, 2013 is NIL.

1.6 Aggregate Unrealised Gain / Loss as at the end of the fi nancial period and percentage to net assets:


2013


– Appreciation 737 0.00 ~

– Depreciation 172,761 0.02

Non Convertible Debentures and Bonds

– Appreciation – –

– Depreciation 15,639 0.00 ~


1.7 The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial period 2012-2013 (excluding accretion of discount) are Rs.847,136,141 and Nil respectively being 99.94% and 0.00% of the average daily net assets.

1.8. Non -Traded securities in the portfolio: Aggregate Value of Equity, Debt & Money Market Instruments and percentages to net assets are as under :

Security Category Amount (Rupees) Percentage to Net Assets

2013

Debt Instruments 68,843,609 8.12%

Money Market Instruments 778,934,346 91.84%

Total 847,777,955 99.95%

2 Disclosure under Regulation 25(8) of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 as amende

Commission paid to Sponsor/AMC and its associates / related parties / group companies




Period Covered


Crores]


Commission paid

[Rupees] *


Fund


Associate 2012-2013 42.05 49.63 – –



26

HSBC FTP Series

Notes to Accounts - Annexure I (Contd...)To the Abridged Balance Sheet and Revenue Account for the period ended March 31, 2013



3 None of the Investors held more than 25% of the total net assets of the Scheme at the period ended March 31, 2013.

4 Unit Capital movement during the period ended March 31, 2013:

2012-2013


Subscription Redemption ClosingUnits

Face Value per unit (Rs.)

Growth Option – 83,045,723.689 – 83,045,723.689 10

Dividend Option – 1,394,000.000 – 1,394,000.000 10

Direct Plan- Growth Option – 285,000.000 – 285,000.000 10

Direct Plan- Dividend Option – – – – 10

5 As these are the fi rst fi nancial statements of the Schemes since the date of launch, there are no prior period comparatives.

6 No contingent liabilities for the period ended March 31, 2013.



# Scheme launched during the current fi nancial year.

27

HSBC FTP Series

Notes to Accounts - Annexure ITo the Abridged Balance Sheet and Revenue Account for the period ended March 31, 2013


1 Investments:


1.2 Open Positions of derivatives as of period ended March 31, 2013 is NIL.

1.3 Investments in Associates and Group Companies as of period ended March 31, 2013 is NIL.

1.4 Open position of Securities Borrowed and / or Lent by the Scheme as of fi nancial period ended March 31, 2013 is NIL.

1.5 NPAs as on March 31, 2013 is NIL.

1.6 Aggregate Unrealised Gain / Loss as at the end of the fi nancial period and percentage to net assets:


2013


– Appreciation – –

– Depreciation 197,386 0.0307

1.7 The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial period 2012-2013 (excluding accretion of discount) are Rs. 641,988,547 being 99.76 % of the average daily net assets.

1.8 Non-Traded securities in the portfolio: Aggregate Value of Equity, Debt & Money Market Instruments and percentages to net assets are as under :

Security Category Amount (Rupees) Percentage to Net Assets

2013

Money Market Instruments 642,484,771 99.80%

Total 642,484,771 99.80%


Commission paid to Sponsor / AMC and its associates / related parties / group companies

Name of Sponsor/AMC and its associates/related parties / group companies



Period Covered


Crores]


Commission paid

[Rupees] *


Fund


Associate 2012-2013 32.43 50.44 – –





28

HSBC FTP Series

3 None of the Investors held more than 25% of the total net assets of the Scheme at the period ended March 31, 2013.

4 Unit Capital movement during the period ended March 31, 2013:

2012-2013


Subscription Redemption Closing Units Face Value per unit (Rs.)

Growth Option – 32,841,344.877 – 32,841,344.877 10

Dividend Option – 1,000.000 – 1,000.000 10

Direct Plan - Growth Option – 31,453,409.939 – 31,453,409.939 10

Direct Plan - Dividend Option – – – – 10

5 As these are the fi rst fi nancial statements of the Schemes since the date of launch, there are no prior period comparatives.

6 No contingent liabilities for the period ended March 31, 2013.


8 The Annual Accounts of the Schemes prepared in accordance with the accounting policies and standards specifi ed in the Ninth Schedule of The Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 has been approved by the Board of Directors of HSBC Asset Management (India) Private Limited and The Board of Trustees of HSBC Mutual Fund at their meeting held on , 2013. The audit report attached herewith refers to the said Annual Accounts. The aforesaid abridged accounts are an extract of the Annual Accounts and are prepared in accordance with SEBI Circular No. IMD/Cir8/132968/2008 dated July 24, 2008.


Notes to Accounts - Annexure I (Contd...)To the Abridged Balance Sheet and Revenue Account for the period ended March 31, 2013

29

HSBC FTP Series

















30

HSBC FTP Series
















31

HSBC FTP Series

Det

ails

of t

he P

roxy

Vot

es e

xerc

ised

in G

ener

al M

eetin

gs o

f the

Lis

ted

Com

pani

es fo

r the

fi na

ncia

l yea

r end

ed 2

012-

13M

anag

emen

t Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

05-A

pr-2

012

CRI

SIL

Ltd.

Oth

er M

eetin

g�

For

Abs

tain

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

��

�Fo

rFo

r

16-A

pr-2

012

CRI

SIL

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

For

18-A

pr-2

012

DIV

I'S L

abor

ator

ies

Ltd.

Ann

ual G

ener

al M

eetin

g�

For

Aga

inst

20-A

pr-2

012

FAG

Bea

rings

Ltd

.A

nnua

l Gen

eral

Mee

ting

��

��

�Fo

rA

bsta

in

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

Abs

tain

26-J

un-2

012

Uni

on B

ank

of In

dia

Ltd.

Extr

aord

inar

y G

ener

al M

eetin

g�

For

For

26-N

ov-2

012

Indo

Tech

Tra

nsfo

rmer

s Lt

d.O

ther

Mee

ting

�Fo

rFo

r

Shar

eho

lder

s Pr

op

osa

ls

Dat

eN

ame

of t

he C

ompa

nyTy

pe o

f M

eeti

ng(A

GM

/ E

GM

)Pr

opos

al C

ateg

ory

Man

agem

ent

Reco

mm

enda

tion

Vote

(For

/

Aga

inst

/ A

bsta

in)

12

34

56

78

9

Nil

Cat

ego

ry1

Alte

ratio

n in

Mem

oran

dum

of

Ass

ocia

tion

of t

he c

ompa

ny c

onta

inin

g M

ain,

Anc

illar

y an

d O

ther

obj

ects

of

the

com

pany

2 Re

ceiv

e, c

onsi

der

and

adop

t th

e A

udite

d Ba

lanc

e Sh

eet

as a

t ye

ar e

nd t

he P

rofi t

and

Los

s A

ccou

nt f

or t

he y

ear

ende

d on

tha

t da

te a

nd t

he R

epor

ts o

f th

e D

irect

ors

and

the

Aud

itors

the

reon

3 D

ecla

ratio

n of

div

iden

d on

Ord

inar

y (E

quity

) Sha

res

and

/ or

Pref

eren

ce s

hare

s4

App

oint

men

t, R

e-ap

poin

tmen

t an

d Re

mov

al o

f D

irect

ors

/ Add

ition

al D

irect

ors

5 A

ppoi

ntm

ent,

Re-

appo

intm

ent

and

Rem

oval

of

Aud

itors

6 St

ock

Opt

ion

plan

s an

d ot

her

man

agem

ent

com

pens

atio

n m

atte

rs7

Rest

ruct

urin

g of

Sha

re c

apita

l (in

clud

ing

stoc

k sp

lits,

con

solid

atio

n, r

educ

tion,

etc

. of

shar

e ca

pita

l)8

Cha

nges

in c

apita

l str

uctu

re in

clud

ing

incr

ease

s an

d de

crea

ses

of E

quity

& p

refe

rred

sto

ck /

war

rant

issu

ance

s9

Cor

pora

te r

estr

uctu

ring

mat

ters

(inc

ludi

ng m

erge

rs, a

cqui

sitio

ns, t

akeo

vers

, sel

l-off

s, t

rans

fer

of c

ontr

ol, c

hang

es in

sta

te o

f in

corp

orat

ion,

Del

isitn

g)

32

HSBC FTP Series




abridged schemewise annual reports 2012 - 2013...treating customers fairly: at hsbc, we are...

Documents