hsbc global asset management the asseta game show kaun banega crorepati, shot in the backdrops of...

HSBC Mutual FundFebruary 2009

Factsheet - February 2009

The Asset

HSBC Global Asset Management


Index

Fund Manager’s Comments - Equity & MIP Pg 2

Fund Manager’s Comments - Debt Pg 4

HSBC Equity Fund Pg 5

HSBC India Opportunities Fund Pg 7

HSBC Midcap Equity Fund Pg 9

HSBC Advantage India Fund Pg 11

HSBC Tax Saver Equity Fund Pg 13

HSBC Unique Opportunities Fund Pg 15

HSBC Dynamic Fund Pg 17

HSBC Emerging Markets Fund Pg 19

HSBC Small Cap Fund Pg 20

Fund Managers - Equity Pg 22

HSBC MIP - Savings Plan Pg 24

HSBC MIP - Regular Plan Pg 26

HSBC Income Fund - Investment Plan Pg 28

HSBC Income Fund - Short Term Plan Pg 30

HSBC Floating Rate Fund - Long Term Plan Pg 32

HSBC Floating Rate Fund - Short Term Plan Pg 34

HSBC Cash Fund Pg 36

HSBC Gilt Fund - Short Term Plan Pg 38

HSBC Ultra Short Term Bond Fund Pg 39

HSBC Flexi Debt Fund Pg 42

Fund Managers - MIP & Debt Pg 44

In this Issue ...

1


Fund Manager’s Comments - Equity & MIP

2

Slumdog Millionaire v/s Sensex

The success of “Slumdog Millionaire” at the Oscars this year and the worldwide rage overthe movie has mainly been attributed to a sense of “feel good factor”, which the movieprovided. The unexpected run-away success, globally, of a movie based ona game show Kaun Banega Crorepati, shot in the backdrops of Mumbai slums was asurprise to lot of us here in India. The movie did not become an instant hit on its release. Itwas a slow starter releasing with only 10 screens in the US but thereafter expanded to over1000 screens on the basis of word of mouth publicity. Making of the movie was also not aneasy journey and it was on verge of being shelved when the financiers backed out. So whathas this got to do with the markets and the economy? Our economy (markets), along withglobal economies is currently lacking this “feel good factor” which would have madeconsumers to spend and businesses to invest for the future. This is due to all the uncertaintyrelated to everything around us (our banks to our jobs to our businesses). The governmentsall over the world have announced mega bailout and stimulus packages in order to get theirrespective economies back on track, but they have been unable to reinstate the “feel goodfactor”, which has made the sight of economic recovery more distant. Success and “feelgood” can come from unexpected places at unexpected times like in case of Slumdog andwe as long term investors need to wait it out for that to happen to the economy (markets).

Feb 09 was second month in a row of negative returns for the market with the BSE Sensexdown 5.65% and the broader index BSE 500 falling by 4.35%. The sectors that did well duringthe month were Auto and Consumer staples while Banking and Real estate were worstperformers. Market preference continued to remain for large cap stocks despite asignificant valuation gap compared to midcaps. Turmoil in the global markets continued withthe developed market touching new lows every month and underperforming emerging markets including India. The crisis in the global financial and banking system is still far fromover and the outcome of measures taken by the US government to stabilise its bankingsystem would be very crucial for global economy and markets.

Economic data out of India has not been very supportive with GDP growth for the Q3FY09coming at 5.3% which was much lower than the market expectation of 6.1%. The negativesurprise came from agricultural sector, which posted a negative growth of 1.6%. We do notexpect GDP estimate by the CSO for FY09 of 7.1% to be achieved and expect the year to endat around 6.25-6.5% growth. The vote-on-account presented was a non-event with statusquo maintained on most of the issues. The higher than expected fiscal deficit and borrowingprogram has spooked the markets and is leading to a change in rating outlook from Stableto Negative by S&P. Fall in WPI-Inflation to 3.36% in Feb 09 has been positive and thedownward trend is likely to continue with a reasonable possibility of it moving into a negativeterritory. Markets have been expecting a rate cut by the RBI as a follow up to the stimuluspackage announced by the government. We also expect a rate cut before the end of FY2009.

On the global commodities front, metals traded in a range while oil was down 3.1%. IndianRupee, along with other emerging market currencies, came under a fresh round ofdepreciation against the USD. The Indian Rupee fell by 4.6%, touching a new life time lowof Rs.51.16, as against the USD.

FIIs continued their selling in Feb 09 with net outflows of Rs.29.9bn. Domestic mutual fundsalso sold Rs.15bn while the only respite came from domestic insurance companies whichbought Rs.42.7bn.

We expect the next big event for the market to be the general elections and this time around,it is not who comes to power but whether the elected government has a visibility to remainin power for five years, since this will determine their policy direction. And its has never beenmore important than now, when we need a government who has a clear mandate from thepeople to lead the nation forward in the midst of the current economic uncertainly.

Outlook

� We are now expecting FY09 GDP to be in 6.25-6.5% range while corporate earnings forFY09 are expected to be flat to negative. Even for FY10, GDP is likely to be in a broad rangeof 5.75-6.25% with the economy recovering in second half.

� The year 2009 is likely to be one where specific sectors and company performance may bemuch better than the broader market indices. The challenge will be to pick these stocks andsectors ahead of the market.

� Valuations seem reasonable on an optical basis at around 10X FY10 earnings. However,there remains an element of a downside risk to FY10 earnings and one needs to take thesame into consideration. We still expect the street to cut its earnings numbers considerablyand this is going to be an additional overhang.


Fund Manager’s Comments - Equity & MIP

3

Review: HSBC Equity Fund

Being underweight Financials, Materials and overweight Consumer staples, Industrialshelped performance, while being underweight Energy and overweight Telecommunicationhurt performance.

Review: HSBC India Opportunities Fund

Being underweight Financials, Industrials and overweight Consumer staples, Consumerdiscretionary helped performance whereas being underweight Energy, Materials, andInformation technology hurt performance.

Review: HSBC Midcap Equity Fund

Being underweight Consumer staples, Materials, Information technology and overweightConsumer discretionary helped performance whereas being underweight Industrials,Telecommunication and overweight Financials, Energy hurt performance.

Review: HSBC Advantage India Fund

Currently focusing on the following themes - Consumption (31%), Infrastructure (26%),Outsourcing (10%) and Commodities (12%). Well-diversified exposure across sectorsencompassing the above themes.

Review: HSBC Dynamic Fund

We marginally reduced the cash levels in the fund given attractive valuations. This is likelyto change depending on market conditions and technical factors. We are overweightConsumer staples and Telecommunication and underweight Energy, Financials,Information technology, Industrials and Materials.

Review: MIP Regular and Savings Funds

Our current exposure is 3.63% in MIP Regular and 6.98% in MIP Savings. Our strategyremains to be conservative in volatile markets and protect capital rather than chase relativeperformance.

Sectors HSBC HSBC India HSBCEquity Opportunities MidcapFund Fund Equity Fund

Consumer Discretionary r a a

Consumer Staples a a r

Energy r r a

Financials r r a

Healthcare r r a

Industrials a r r

Information Technology r r r

Materials r r r

Telecommunication a r r

Utilities r r a

a- Overweight r - Underweight = - Neutral


Fund Manager’s Comments - Debt

4

Market Assessment

Commodity and crude markets remained range bound over the month. Global economic scenarioremained weak as evidenced in continuing deterioration of higher frequency data like exportsand employment. Emerging markets credit concerns re-emerged in the market due to weaknessin many East-European economies.

In India, key events in Feb 09 were announcement of additional borrowing and vote on account forFY 2010. With fiscal deficit target for FY10 projected at 5.5%, the government has to rely onmarket borrowing for over INR 300,000 crores. Additionally, for FY09, the government hasprojected an extra borrowing of INR 91,000 crores. This borrowing is being managed partly byissuance of securities to market in February/ March 09 and partly by conversion of MarketStabilisation Scheme (MSS) into the government borrowings program. S&P downgraded India’sdomestic currency outlook from BBB- (stable) to BBB- (negative) due to fiscal weakness.

The RBI provided positive signals to the market for supporting the borrowing program byconducting open market operations (OMO) to buy back various securities. The first OMO wasannounced for 50% of the week’s auction amount. The subsequent week’s OMO is announcedat 50% of week’s auction amount with an additional option to buy 25% of the auction amount.

Meanwhile, domestic economic data remained unequivocally bond positive. Inflation continuedto print lower numbers week on week. Quarterly GDP printed surprisingly weak at 5.3% for Dec08. Exports data for Jan 09 showed negative growth for the 4th month running, while imports alsoprinted negative growth for the first time in this cycle. The INR has lately weakened against theUSD due to additional premium being attached to emerging market risks and weakness in theequity markets.

We maintain that with high deficit levels, responsibility of economic growth push lies with theCentral Bank and the monetary policy. 10 year benchmark security saw movements within 55 bpsband. The 1 year Overnight Index Swap (OIS) rates moved lower by 25 bps since early-February.10 year PSU bonds remained at about 300 bps over the corresponding government securities.

Going Forward

We remain vigilant of the excess supply of the government bonds and corresponding open marketoperations (OMOs). The quantity and prices in these auctions and OMOs will determine tradingrange for the market in near term. However, pressure on yields due to excess supply will easeout in medium term due to weak economic fundamentals and as the market finds more comfort withRBI’s response function to excess supply.

Liquidity remains easy at around INR 40,000 crores surplus at start of Feb 09. While some drainon account of possible currency intervention, advance tax outflows and seasonal currencyleakages is expected, accelerated government spending towards fiscal close and RBI’scommitment to keep liquidity adequate should keep market comforted on this account. Thesteepness between implied overnight rates for next 1 year and the 1 year Certificate of Deposit(CD) rate has eased to 300 bps as against around 330 bps at the beginning of Feb 09. Wemaintain that the steepness in this segment is attractive and may flatten over the medium term.

Corporate spreads remain elevated given continued caution on bank lending and weak globalrisk perceptions. However, spreads should start contracting once lending by banks starts to pickup and supply pressure towards the fiscal close comes off.


An Open Ended Diversified Equity SchemeInvestment Objective: Aims to generate long term capital growth from an actively managedportfolio of equity and equity related securities.

Issuer Market Value % to Net(Rs in Lacs) Assets

HSBC Equity Fund

5

Auto

Hero Honda Motors 2,259.17 2.22%

Banks

HDFC Bank 4,162.86 4.09%

State Bank of India 3,691.08 3.63%

Punjab National Bank 1,314.63 1.29%

ICICI Bank 1,179.18 1.16%

Construction

Jaiprakash Associates 1,574.76 1.55%

Consumer Non Durables

I T C 6,527.50 6.42%

Colgate Palmolive India 3,140.78 3.09%

Hindustan Unilever 2,628.67 2.58%

Nestle India 1,612.98 1.59%

Glaxo Smithkline Consumer Healthcare 1,524.15 1.50%

United Spirits 1,064.90 1.05%

Diversified

Larsen and Toubro 2,651.40 2.61%

Finance

Housing Development Finance Corporation 2,212.99 2.18%

Fixed Deposits

Standard Chartered Bank** 2,300.00 2.26%

Axis Bank** 1,600.00 1.57%

Development Bank of Singapore** 900.00 0.88%

Axis Bank** 800.00 0.79%

Industrial Capital Goods

Bharat Heavy Electricals 6,303.29 6.20%

Industrial Products

Jain Irrigation Systems 1,865.27 1.83%

Oil

Oil and Natural Gas Corporation 2,922.93 2.87%

Cairn India 2,141.29 2.11%

Pesticides

United Phosphorus 1,512.50 1.49%

Petroleum Products

Reliance Industries 3,988.06 3.92%

Indian Oil Corporation 2,166.74 2.13%

Bharat Petroleum Corporation 1,778.36 1.75%

Pharmaceuticals

Cipla 1,794.59 1.76%

Ranbaxy Laboratories 1,456.20 1.43%

Sun Pharmaceutical Industries 1,373.63 1.35%

Power

Power Grid Corporation of India 1,717.01 1.69%

Software

Infosys Technologies 4,432.50 4.36%

Telecom - Services

Bharti Airtel 6,321.15 6.21%

Idea Cellular 1,311.30 1.29%


HSBC Equity Fund

Date of Allotment 10-Dec-02Benchmark BSE 200Assets Under Rs 1,017.20 croresManagement(as on 27.02.09)NAV (Growth) Rs 57.3771per unit(as on 27.02.09)Fund Manager Jitendra Sriram &

Nilang MehtaSIP AvailableMinimum Rs 10,000ApplicationAmountEntry Load@ For investment / switch

in$ < Rs 5 crores -2.25%, otherwise Nil

Exit Load@ 1% for < Rs 5 crores,if redeemed / switchedout$ within 1 year fromdate of investment,otherwise Nil

Standard Deviation 1.55%R-Squared 0.9495Beta (Slope) 0.8314Sharpe Ratio 0.0038Annualised Expense Ratio from 01 April2008 onwards 2.02%Portfolio Turnover 1.51

Asset Allocation

HEF BSE 2006 Months -30.47 -41.121 Year -42.14 -53.173 Years 1.28 -6.625 Years 16.04 7.65Since Inception 32.43 17.50

* Past performance may or may not be sustainedin the future. Returns less than 1 year areabsolute. Returns equal to or greater than 1 yearare compounded annualized. ‘Since inception’returns are calculated on Rs 10 invested atinception. Calculations are based on GrowthNAVs.

Auto 2.22%Banks 10.17%Construction 1.55%Consumer Non Durables 16.22%Diversified 2.61%Finance 2.18%Fixed Deposits 5.51%Industrial Capital Goods 6.20%Industrial Products 1.83%Oil 4.98%Pesticides 1.49%Petroleum Products 7.80%Pharmaceuticals 4.55%Power 1.69%Software 4.36%Telecom - Services 7.50%Reverse Repos/CBLOs 18.70%Net Current Assets 0.46%

Dividend Declaration


** Fixed deposits are placed as Margin Deposit for Futures, Options and Equity.Total outstanding exposure in derivatives as on February 27, 2009 isRs 695.57 lakhs (notional value).

6

Performance* (%) as on 27 February 2009

Statistical ratios disclosed as per daily returns ofthe last 3 years/since inception, whichever islater.@ Including SIP/STP where applicable. $ No loadin case of switches between equity schemes ofHSBC Mutual Fund.

Record Date/period Dividend (Rs. per unit) Dividend (Rs. per unit) NAV per unitof dividend declared Non-Institutional Institutional (cum dividend)

HSBC Equity Fund - Dividend06-Oct-06 2.00 2.00 29.989716-Mar-07 2.00 2.00 28.645608-Feb-08 10.00 10.00 40.6869

CBLOs 7,508.58 7.38%

Reverse Repos 11,509.18 11.31%

Net Current Assets 472.48 0.46%

Total Net Assets as on 27 February 2009 101,720.08 100%


An Open Ended Flexi-Cap Equity SchemeInvestment Objective: Seeks long term capital growth through investments across all marketcapitalisations, including small, mid and large cap stocks. It aims to be predominantly investedin equity & equity related securities. However it could move a significant portion of its assetstowards fixed income securities if the fund manager becomes negative on equity markets.

HSBC India Opportunities Fund


7

AutoHero Honda Motors 753.06 2.77%Auto AncillariesBosch 689.78 2.54%BanksHDFC Bank 880.61 3.24%State Bank of India 851.00 3.13%Punjab National Bank 546.91 2.01%ICICI Bank 353.75 1.30%Oriental Bank of Commerce 352.36 1.30%Consumer Non DurablesI T C 1,473.81 5.43%Nestle India 806.49 2.97%Shree Renuka Sugars 787.05 2.90%Advanta India 701.20 2.58%Hindustan Unilever 642.29 2.36%United Spirits 336.29 1.24%DiversifiedLarsen and Toubro 718.09 2.64%FinanceHousing Development Finance Corporation 404.95 1.49%Fixed DepositsStandard Chartered Bank** 1,200.00 4.42%Axis Bank** 800.00 2.95%Development Bank of Singapore** 500.00 1.84%HardwareAllied Digital Services 281.09 1.03%Industrial Capital GoodsBharat Heavy Electricals 1,010.77 3.72%Industrial ProductsJain Irrigation Systems 458.14 1.69%Media & EntertainmentIBN 18 Broadcast 434.68 1.60%OilCairn India 539.33 1.99%Oil and Natural Gas Corporation 497.52 1.83%PesticidesUnited Phosphorus 421.91 1.55%Petroleum ProductsReliance Industries 1,481.28 5.45%Indian Oil Corporation 798.86 2.94%Bharat Petroleum Corporation 620.30 2.28%PharmaceuticalsCipla 493.66 1.82%Ranbaxy Laboratories 407.74 1.50%PowerPower Grid Corporation of India 501.78 1.85%SoftwareInfosys Technologies 1,218.94 4.49%Telecom - ServicesBharti Airtel 1,149.30 4.23%Idea Cellular 423.00 1.56%


HSBC India Opportunities Fund


** Fixed deposits are placed as Margin Deposit for Futures, Options and Equity.Total outstanding exposure in derivatives as on Feburary 27, 2009 isRs 337.96 lakhs (notional value).

Asset AllocationAuto 2.77%Auto Ancillaries 2.54%Banks 10.99%Consumer Non Durables 17.48%Diversified 2.64%Finance 1.49%Fixed Deposits 9.20%Hardware 1.03%Industrial Capital Goods 3.72%Industrial Products 1.69%Media & Entertainment 1.60%Oil 3.82%Pesticide 1.55%Petroleum Products 10.68%Pharmaceuticals 3.32%Power 1.85%Software 4.49%Telecom - Services 5.79%Other Equity Investments 2.89%Reverse Repos/CBLOs 7.03%Net Current Assets 3.44%

Date of Allotment 24-Feb-04Benchmark BSE 500Assets Under Rs 271.64 croresManagement(as on 27.02.09)NAV (Growth) Rs 18.8043per unit(as on 27.02.09)Fund Manager Jitendra Sriram &

Dhimant ShahSIP AvailableMinimum Rs 10,000ApplicationAmountEntry Load@ For investment / switch


Exit Load@ 1% for < Rs 5 crores,if redeemed / switchedout$ within 1 yearfrom date of investment,otherwise Nil

Standard Deviation 1.58%R-Squared 0.9113Beta (Slope) 0.8499Sharpe Ratio 0.0032Annualised Expense Ratio from 01 April2008 onwards 2.29%Portfolio Turnover 0.87


8

Other Equity Investments 784.38 2.89%CBLOs 753.48 2.77%Reverse Repos 1,154.93 4.25%Net Current Assets 934.95 3.44%Total Net Assets as on 27 February 2009 27,163.64 100%

HIOF BSE 5006 Months -33.74 -42.381 Year -47.51 -54.803 Years -2.60 -7.60Since Inception 13.45 7.54





HSBC India Opportunities Fund - Dividend16-Mar-07 1.50 1.50 17.042105-Oct-07 1.50 1.50 21.095424-Mar-08 1.00 1.00 16.4065


An Open Ended Diversified Equity SchemeInvestment Objective: Seeks to generate long term capital growth from an actively managedportfolio of equity and equity related securities primarily being midcap stocks. However, it couldmove a portion of its assets towards fixed income securities if the fund manager becomesnegative on the Indian equity markets.


HSBC Midcap Equity Fund

9

Auto AncillariesExide Industries 315.46 3.47%Bosch 137.96 1.52%BanksUnion Bank of India 369.55 4.06%HDFC Bank 266.85 2.93%Bank of Baroda 176.08 1.94%Jammu and Kashmir Bank 115.84 1.27%Indian Bank 104.29 1.15%BrewersShaw Wallace and Company 100.63 1.11%CementUltratech Cement 164.54 1.81%Orient Paper and Industries 110.71 1.22%Consumer Non DurablesColgate Palmolive India 381.55 4.20%Shree Renuka Sugars 290.18 3.19%United Spirits 186.83 2.05%Advanta India 126.65 1.39%Balrampur Chini Mills 115.41 1.27%Marico Industries 92.48 1.02%Ferrous MetalsPSL 93.55 1.03%FinanceLIC Housing Finance 214.28 2.36%Fixed DepositsStandard Chartered Bank** 600.00 6.60%Bank of Nova Scotia** 320.00 3.52%GasIndraprastha Gas 204.60 2.25%HardwareAllied Digital Services 105.94 1.17%HotelsEast India Hotels 159.51 1.75%Industrial Capital GoodsCrompton Greaves 153.56 1.69%Kirloskar Pneumatic Company 147.83 1.63%Industrial ProductsJain Irrigation Systems 294.52 3.24%Everest Kanto Cylinder 198.26 2.18%Sintex Industries 90.78 1.00%Media & EntertainmentZee News 211.69 2.33%PesticidesUnited Phosphorus 191.05 2.10%Petroleum ProductsIndian Oil Corporation 230.57 2.54%Bharat Petroleum Corporation 183.79 2.02%PharmaceuticalsLupin 389.79 4.29%Opto Circuits (India) 135.35 1.49%Indoco Remedies 91.65 1.01%



HSBC Midcap Equity Fund

Date of Allotment 19-May-05Benchmark BSE MidcapAssets Under Rs 90.92 croresManagement(as on 27.02.09)NAV (Growth) Rs 9.6361per unit(as on 27.02.09)Fund Manager Dhimant Shah &

Jitendra SriramSIP AvailableMinimum Rs 10,000ApplicationAmountEntry Load@ For investment / switch



Standard Deviation 1.45%R-Squared 0.906Beta (Slope) 0.8354Sharpe Ratio -0.0337Annualised Expense Ratio from 01 April2008 onwards 2.40%Portfolio Turnover 1.92

Asset AllocationAuto Ancillaries 4.99%Banks 11.36%Brewers 1.11%Cement 3.03%Consumer Non Durables 13.12%Ferrous Metals 1.03%Finance 2.36%Fixed Deposits 10.12%Gas 2.25%Hardware 1.17%Hotels 1.75%Industrial Capital Goods 3.31%Industrial Products 6.42%Media & Entertainment 2.33%Pesticides 2.10%Petroleum Products 4.56%Pharmaceuticals 6.78%Power 5.29%Software 2.21%Telecom Equipment & Accessories 2.12%Other Equity Investments 1.88%Reverse Repos/CBLOs 11.51%Net Current Assets -0.79%


HMEF BSE Midcap6 Months -45.51 -51.951 Year -60.95 -64.273 Years -16.36 -16.85Since Inception -1.15 -4.22

10

PowerCESC 280.13 3.08%GVK Power and Infrastructure 200.50 2.21%SoftwareInfotech Enterprises 201.32 2.21%Telecom Equipment & AccessoriesOnmobile Global 192.67 2.12%Other Equity Investments 171.04 1.88%CBLOs 413.26 4.55%Reverse Repos 633.44 6.97%Net Current Assets -71.69 -0.79%Total Net Assets as on 27 February 2009 9,092.36 100%





HSBC Midcap Equity Fund - Dividend16-Mar-07 1.00 1.00 14.548505-Oct-07 1.50 1.50 19.006624-Mar-08 0.75 0.75 13.3797

** Fixed deposits are placed as Margin Deposit for Futures, Options and Equity.Total outstanding exposure in derivatives as on February 27, 2009 isRs. 351.77 (notional value).


An Open Ended Flexi-Theme Equity SchemeInvestment Objective: Seeks to generate long term capital growth from an actively managedportfolio of equity and equity related securities by investing primarily in sectors, areas and themesthat play an important role in, and/or benefit from India’s progress, reform process andeconomic development.


HSBC Advantage India Fund

11

Auto Ancillaries

Bosch 827.74 2.36%

Banks

HDFC Bank 1,280.88 3.66%

State Bank of India 1,097.07 3.13%

ICICI Bank 442.19 1.26%

Punjab National Bank 410.30 1.17%

Construction

Jaiprakash Associates 590.70 1.69%


I T C 2,388.02 6.82%

Hindustan Unilever 862.01 2.46%

Advanta India 713.76 2.04%

Nestle India 689.61 1.97%

United Spirits 672.57 1.92%

Diversified

Larsen and Toubro 1,202.95 3.44%

Finance

Housing Development Finance Corporation 795.40 2.27%

Fixed Deposits


Axis Bank** 800.00 2.29%

Axis Bank** 800.00 2.29%


Bharat Heavy Electricals 2,779.62 7.94%

Industrial Products

Jain Irrigation Systems 883.55 2.52%

Oil

Cairn India 777.98 2.22%

Oil and Natural Gas Corporation 621.90 1.78%

Petroleum Products

Reliance Industries 1,025.50 2.93%

Indian Oil Corporation 875.40 2.50%

Hindustan Petroleum Corporation 864.58 2.47%

Pharmaceuticals

Cipla 850.27 2.43%

Power

Power Grid Corporation of India 565.39 1.62%

CESC 466.88 1.33%

Software

Infosys Technologies 1,662.19 4.75%

Telecom - Services


Idea Cellular 507.60 1.45%


HSBC Advantage India Fund


Date of Allotment 23-Feb-06Benchmark BSE 200Assets Under Rs 350.04 croresManagement(as on 27.02.09)NAV (Growth) Rs 8.0417per unit(as on 27.02.09)Fund Manager Jitendra Sriram &

Nilang MehtaSIP AvailableMinimum Rs 10,000ApplicationAmountEntry Load@ For investment / switch




Asset AllocationAuto Ancillaries 2.36%Banks 9.23%Construction 1.69%Consumer Non Durables 15.22%Diversified 3.44%Finance 2.27%Fixed Deposits 8.57%Industrial Capital Goods 7.94%Industrial Products 2.52%Oil 4.00%Petroleum Products 7.90%Pharmaceuticals 2.43%Power 2.95%Software 4.75%Telecom - Services 7.52%Other Equity Investments 3.89%Reverse Repos/CBLOs 9.56%Net Current Assets 3.75%

** Fixed deposits are placed as Margin Deposit for Futures, Options and Equity.Total outstanding exposure in derivatives as on February 27, 2009 isRs. 342.43 lakhs (notional value).

12

Other Equity Investments 1,362.74 3.89%

CBLOs 1,321.54 3.78%


Net Current Assets 1,314.15 3.75%



HAIF BSE 2006 Months -37.12 -41.121 Year -52.68 -53.172 Years -8.12 -6.62Since Inception -6.97 -6.37





HSBC Advantage India Dividend11-May-07 1.00000 1.00000 12.239026-May-08 1.00000 1.00000 13.7160


An Open Ended Equity Linked Savings SchemeInvestment Objective: Aims to provide long term capital appreciation by investing in adiversified portfolio of equity & equity related instruments of companies across various sectorsand industries, with no capitalisation bias. The Fund may also invest in fixed income securities.


HSBC Tax Saver Equity Fund

13

Auto

Maruti Suzuki India 345.42 2.10%

Hero Honda Motors 334.69 2.03%

Auto Ancillaries

Bosch 275.91 1.67%

Banks

HDFC Bank 1,116.32 6.78%

Union Bank of India 312.81 1.90%

Bank of Baroda 275.13 1.67%


Cement

Grasim Industries 178.50 1.08%


I T C 915.25 5.56%

Nestle India 470.45 2.86%

Glaxosmithkline Consumer Healthcare 464.80 2.82%


Colgate Palmolive India 321.86 1.95%

Balrampur Chini Mills 302.72 1.84%

Diversified

Larsen and Toubro 601.48 3.65%

Finance


Fixed Deposits

Standard Chartered Bank** 600.00 3.64%


Bharat Heavy Electricals 631.73 3.83%

Media & Entertainment

Zee News 326.91 1.98%

Dish TV India 171.50 1.04%

Oil



Petroleum Products

Reliance Industries 715.32 4.34%


Indian Oil Corporation 262.62 1.59%

Pharmaceuticals

Sun Pharmaceutical Industries 468.05 2.84%

Cipla 437.43 2.65%

Power


CESC 218.99 1.33%

Software

Infosys Technologies 246.25 1.49%

Telecom - Services

Bharti Airtel 734.28 4.46%



HSBC Tax Saver Equity Fund

Date of Allotment 05-Jan-07Benchmark BSE 200Assets Under Rs 164.76 croresManagement(as on 27.02.09)NAV (Growth) Rs 7.0168per unit(as on 27.02.09)Fund Manager Nilang MehtaSIP AvailableMinimum Rs 500ApplicationAmountEntry Load@ For investment/switch

in $ below Rs. 1 crore- 2.25%, otherwise Nil.

Exit Load@ NilStandard Deviation 1.41%R-Squared 0.9304Beta (Slope) 0.7138Sharpe Ratio -0.0423Annualised Expense Ratio from 01 April2008 onwards 2.38%Portfolio Turnover 2.54

Asset AllocationAuto 4.13%Auto Ancillaries 1.67%Banks 11.52%Cement 1.08%Consumer Non Durables 17.82%Diversified 3.65%Finance 2.95%Fixed Deposits 3.64%Industrial Capital Goods 3.83%Media & Entertainment 3.03%Oil 3.76%Petroleum Products 8.23%Pharmaceuticals 5.50%Power 3.58%Software 1.49%Telecom - Services 4.46%Other Equity Investments 6.10%Reverse Repos/CBLOs 13.90%Net Current Assets -0.34%

14

Other Equity Investments 1,004.30 6.10%

CBLOs 904.11 5.49%


Net Current Assets -56.03 -0.34%



HTSF BSE 2006 Months -29.37 -41.121 Year -42.67 -53.17Since Inception -15.33 -19.33



** Fixed deposits are placed as Margin Deposit for Equity.


A 3 year Close-Ended Equity Scheme with automaticconversion into an Open-Ended Scheme upon maturityInvestment Objective: To provide long-term capital growth from a diversified portfolio of equityand equity related instruments. The focus would be to invest in stocks of companies facing“out-of-ordinary” conditions.


HSBC Unique Opportunities Fund

15

AutoHero Honda Motors 585.71 2.73%Maruti Suzuki India 447.02 2.08%BanksUnion Bank of India 484.09 2.26%State Bank of India 471.64 2.20%ICICI Bank 294.80 1.37%Punjab National Bank 258.38 1.20%Bank of Baroda 255.32 1.19%CementUltratech Cement 296.16 1.38%ConstructionJaiprakash Associates 398.64 1.86%Consumer Non DurablesColgate Palmolive India 1,102.76 5.14%United Spirits 616.52 2.87%Shree Renuka Sugars 572.40 2.67%I T C 400.69 1.87%Hindustan Unilever 371.98 1.73%Balrampur Chini Mills 266.88 1.24%DiversifiedLarsen and Toubro 441.90 2.06%Fixed DepositsAxis Bank** 600.00 2.80%Standard Chartered Bank** 600.00 2.80%Development Bank of Singapore** 100.00 0.47%HardwareAllied Digital Services 245.95 1.15%Industrial Capital GoodsBharat Heavy Electricals 238.65 1.11%Kirloskar Pneumatic Company 236.52 1.10%Industrial Products 3.71%Jain Irrigation Systems 556.31 2.59%Sintex Industries 240.30 1.12%OilCairn India 255.59 1.19%Petroleum ProductsIndian Oil Corporation 787.86 3.67%Bharat Petroleum Corporation 544.05 2.54%PharmaceuticalsLupin 732.71 3.41%IPCA Laboratories 564.42 2.63%Ranbaxy Laboratories 407.74 1.90%Opto Circuits (India) 300.78 1.40%Elder Pharmaceuticals 257.28 1.20%Indoco Remedies 248.84 1.16%PowerCESC 410.85 1.91%GVK Power and Infrastructure 401.00 1.87%Power Grid Corporation of India 252.20 1.18%Telecom - ServicesMahanagar Telephone Nigam 462.96 2.16%Idea Cellular 423.00 1.97%


Asset AllocationAuto 4.81%Banks 8.22%Cement 1.38%Construction 1.86%Consumer Non Durables 15.52%Diversified 2.06%Fixed Deposits 6.06%Hardware 1.15%Industrial Capital Goods 2.21%Industrial Products 3.71%Oil 1.19%Petroleum Products 6.21%Pharmaceuticals 11.70%Power 4.96%Telecom - Services 4.13%Other Equity Investments 2.54%Reverse Repos/CBLOs 18.02%Net Current Assets 4.27%

Date of Allotment 21-Mar-07Benchmark BSE 200Assets Under Rs 214.61 croresManagement(as on 27.02.09)NAV (Growth) Rs 5.417per unit(as on 27.02.09)Fund Manager Dhimant Shah &

Jitendra SriramSIP Available

(Upon conversion intoopen-ended scheme)

Minimum Rs 10,000ApplicationAmountEntry Load@ Nil.

After conversion intoopen-ended scheme:For investments belowRs. 5 Crores - 2.25%,otherwise Nil

Exit Load@ Nil ^After conversion intoopen-ended scheme:Nil

Standard Deviation 1.45%R-Squared 0.8533Beta (Slope) 0.6866Sharpe Ratio -0.0737Annualised Expense Ratio from 01 April2008 onwards 2.20%Portfolio Turnover 1.79HUOF BSE 200

6 Months -42.87 -41.121 Year -57.40 -53.17Since Inception -27.21 -17.93

HSBC Unique Opportunities Fund


16



Statistical ratios disclosed as per daily returns ofthe last 3 years/since inception, whichever islater.@ Including SIP/STP where applicable. ̂The investor will have to bear the balanceproportionate unamortized initial issue expenses forexiting during the close ended tenor of the scheme.

Other Equity Investments 545.79 2.54%CBLOs 1,526.97 7.12%Reverse Repos 2,340.54 10.91%Net Current Assets 915.49 4.27%Total Net Assets as on 27 February 2009 21,460.69 100%

** Fixed deposits are placed as Margin Deposit for Futures, Options and Equity.Total outstanding exposure in derivatives as on February 27, 2009 isRs 460.15 lakhs (notional value).


An Open-Ended Scheme

Investment Objective: To provide long term capital appreciation by allocating funds in equity andequity related instruments. It also has the flexibility to move, entirely if required, into debt instrumentsin times that the view on equity markets seems negative.


HSBC Dynamic Fund

17

Auto


Banks

HDFC Bank 880.61 3.82%

State Bank of India 615.18 2.67%


ICICI Bank 324.27 1.41%


I T C 1,667.13 7.23%

Colgate Palmolive India 879.42 3.82%


United Spirits 616.52 2.68%

Corporate/PSU Debt

Fixed

Indian Oil Corporation 1,121.66 4.87%

Rural Electrification Corporation 194.65 0.84%

Rural Electrification Corporation 116.98 0.51%

Power Finance Corporation 101.65 0.44%

National Bank for Agricultural and Rural Development 92.22 0.40%

Diversified


Finance


Fixed Deposits


Axis Bank** 900.00 3.91%



Government Securities

7.95% Government Stock M-28-Aug-2032 884.00 3.84%



Oil



Petroleum Products


Pharmaceuticals

Lupin 592.37 2.57%

Cipla 503.96 2.19%

IPCA Laboratories 495.00 2.15%

Ranbaxy Laboratories 364.05 1.58%

Power


CESC 429.53 1.86%

Software

Infosys Technologies 775.69 3.37%


Asset AllocationAuto 2.90%Banks 9.48%Consumer Non Durables 17.17%Corporate/PSU Debt 7.06%Diversified 2.40%Finance 1.33%Fixed Deposits 10.68%Government Securities 3.84%Industrial Capital Goods 3.29%Oil 4.89%Petroleum Products 3.34%Pharmaceuticals 8.49%Power 5.18%Software 3.37%Telecom - Services 8.32%Other Equity Investments 1.57%Reverse Repos/CBLOs 2.70%Net Current Assets 4.00%

Date of Allotment 24-Sep-07Benchmark BSE 200Assets Under Rs 230.44 croresManagement(as on 27.02.09)NAV (Growth) Rs 6.1441per unit(as on 27.02.09)Fund Manager Jitendra Sriram

(for Equity portion)Suyash Choudhary(for Fixed Income portion)

SIP AvailableMinimum Rs 10,000ApplicationAmountEntry Load@ For investment / switch




HDF BSE 2006 Months -32.35 -41.121 Year -43.88 -53.17Since Inception -29.12 -37.89



Statistical ratios disclosed as per daily returns ofthe last 3 years/since inception, whichever islater.@ Including SIP/STP where applicable. $ No load incase of switches between equity schemes of HSBCMutual Fund.

HSBC Dynamic Fund

18


Telecom - Services


Idea Cellular 423.00 1.84%

Other Equity Investments 361.17 1.57%

CBLOs 245.73 1.07%

Reverse Repos 376.66 1.63%


Total Net Assets as on 27 February 2009 23,044.12 100%** Fixed deposits are placed as Margin Deposit for Futures, Options and Equity.


An Open-Ended Scheme

Investment Objective: To provide long term capital appreciation by investing in India and in theemerging markets, in equity and equity related instruments, share classes and units/securitiesissued by overseas mutual funds or unit trusts. The fund may also invest a limited proportion indomestic debt and money market instruments.


HSBC Emerging Markets Fund

19

Overseas Mutual FundHSBC GIF Global Emerging Markets Equity 7,386.32 95.69%CBLOS 134.94 1.75%Reverse Repos 206.83 2.68%Net Current Assets -9.15 -0.12%Total Net Assets as on 27 February 2009 7,718.95 100%

10,257.06 100%

Asset AllocationOverseas Mutual Fund 95.69%Reverse Repos/CBLOs 4.43%Net Current Assets -0.12%

Date of Allotment 17-Mar-08Benchmark MSCI Emerging

Markets IndexAssets Under Rs 77.19 croresManagement(as on 27.02.09)NAV (Growth) Rs 5.5912per unit(as on 27.02.09)Fund Manager Niren Parekh

(dedicated fund managerfor overseas investments)

SIP AvailableMinimum Rs 10,000ApplicationAmountEntry Load@ 2.5% for investments/

switch in# below Rs.5crores, otherwise Nil

Exit Load@ 1% for investments belowRs. 5 crores, ifredeemed/switched out#

within 1 year from date ofinvestment, otherwise Nil



Statistical ratios disclosed as per daily returns ofthe last 3 years/since inception, whichever islater.@ Including SIP/STP where applicable. # No load incase of switches between equity schemes ofHSBC Mutual Fund.

HEMF MSCI-EMI6 Months -43.25 -35.79Since Inception -44.68 -40.80



An Close Ended Equity Scheme

Investment Objective: To provide long term capital appreciation primarily from a diversifiedportfolio of equity and equity related instruments of small cap companies.


HSBC Small Cap Fund

20

Auto

Eicher Motors 127.73 3.59%

Auto Ancillaries

Amara Raja Batteries 62.91 1.77%

Banks

Dena Bank 89.92 2.53%

Brewers

Shaw Wallace and Company 50.33 1.42%

Construction

J Kumar Infrastructure Projects 87.83 2.47%

Phoenix Mills 50.42 1.42%

Consumer Non Durable

EID Parry (India) 111.30 3.13%

Mcleod Russel India 102.48 2.88%

Bata India 83.05 2.34%

Advanta India 68.78 1.94%

Ferrous Metals

PSL 36.10 1.02%

Finance

LIC Housing Finance 54.82 1.54%

Fixed Deposits

Standard Chartered Bank** 300.00 8.44%

Bank of Nova Scotia** 140.00 3.94%

Gas

Indraprastha Gas 128.07 3.60%

Hardware

Tata Elxsi 104.46 2.94%

Allied Digital Services 62.36 1.76%


Ingersoll Rand (India) 169.81 4.78%

Sanghvi Movers 52.57 1.48%

Kirloskar Pneumatic Company 44.35 1.25%

Elecon Engineering Company 39.56 1.11%

Industrial Products

Everest Kanto Cylinder 56.87 1.60%

Media & Entertainment

Zee News 171.99 4.84%

IBN 18 Broadcast 88.00 2.48%

Petroleum Products

Castrol India 221.08 6.22%

Pharmaceuticals

Indoco Remedies 80.47 2.26%

IPCA Laboratories 41.17 1.16%

Power

Power Trading Corporation of India 91.04 2.56%

Software

Infotech Enterprises 132.41 3.73%

NIIT Technologies 79.78 2.25%


HSBC Small Cap Fund

21

Asset AllocationAuto 3.59%Auto Ancillaries 1.77%Banks 2.53%Brewers 1.42%Construction 3.89%Consumer Non Durable 10.29%Ferrous Metals 1.02%Finance 1.54%Fixed Deposits 12.38%Gas 3.60%Hardware 4.69%Industrial Capital Goods 8.62%Industrial Products 1.60%Media & Entertainment 7.32%Petroleum Products 6.22%Pharmaceuticals 3.42%Power 2.56%Software 5.97%Other Equity Investments 3.83%Reverse Repos/CBLOs 5.13%Net Current Assets 8.58%

Date of Allotment 24-Mar-08Benchmark BSE Small Cap IndexAssets Under Rs 35.53 croresManagement(as on 27.02.09)NAV (Growth) Rs 4.6383per unit(as on 27.02.09)Fund Manager Dhimant ShahSIP Available (Upon

conversion into openended scheme)

Minimum Rs 10,000ApplicationAmountEntry Load@ Upon conversion into

open ended scheme:2.25% for investments/switch ins$ belowRs. 5 crores, otherwiseNil

Exit Load@ If the investments areredeemed/switched out $

within: 1 year: 2%;2 years : 1.5%; 3 years :1%; otherwise Nil^; Afterconversion into openended scheme: Nil

Standard Deviation 1.04%R-Squared 0.8840Beta (Slope) 0.7413Sharpe Ratio -0.1648Annualised Expense Ratio from 01 April2008 onwards* 2.44%Portfolio Turnover 0.75

Periodicity of NAVs used for calculatingstatistical ratios of HSBC Small Cap Fundis 5 days. Statistical ratios disclosed as perreturns of the last 3 years/since inception,whichever is later.@ Including SIP/STP where applicable. $ No load incase of switches between equity schemes of HSBCMutual Fund. ̂The investor will have to bear thebalance proportionate unamortized initial issueexpenses for exiting during the close ended tenor of thescheme.

HSCF BSE Small Cap6 Months -50.55 -54.83Since Inception -53.92 -55.21




Other Equity Investments 136.15 3.83%

CBLOs 72.02 2.03%




** Fixed deposits are placed as Margin Deposit for Futures, Options and Equity.


Fund Managers - Equity

22

Jitendra SriramVice President & Head of Fund Management - EquitiesB.E. (Elect), Post Graduate Diploma in Business Management

Experience:Over 13 years experience in Equity Research. This involved analysing varioussectors and companies and presenting investment ideas to fund managers inIndia and abroad.

� HSBC Asset Management (India) Private LimitedHead of Fund Management - Equities from February 2009 to present

� HSBC Asset Management (India) Private LimitedFund Manager from May 2006 to February 2009

� Deutsche Equities India Private LimitedVice President from August 2002 to April 2006

� HSBC Securities and Capital Markets (India) Private LimitedDeputy Head of Research from March 1997 to August 2002

� ITC Classic Share & Stock BrokingAnalyst from June 1995 to March 1997

Name of Scheme Fund Manager

HSBC Equity Fund Jitendra Sriram (from 05 July 2006) &

Nilang Mehta (from 24 February 2009)

HSBC India Opportunities Fund Jitendra Sriram (from 05 July 2006) &

Dhimant Shah (from 24 February 2009)

HSBC Midcap Equity Fund Dhimant Shah (from 23 March 2007) &

Jitendra Sriram (from 24 February 2009)

HSBC Advantage India Fund Jitendra Sriram & Nilang Mehta

(from 24 February 2009)

HSBC Tax Saver Equity Fund Nilang Mehta (from 18 September 2007)

HSBC Unique Opportunities Fund Dhimant Shah (from 24 February 2009)

& Jitendra Sriram (from 02 February 2007)

HSBC Dynamic Fund For Equity portion: Jitendra Sriram

(from 03 August 2007)

For Debt portion: Suyash Choudhary

(from 29 August 2008)

HSBC Emerging Markets Fund Niren Parekh (from 17 March 2008)

HSBC Small Cap Fund Dhimant Shah (from 31 March 2008)


Fund Managers - Equity

23

Dhimant ShahVice President & Fund ManagerB.Com., CA

Experience:Over 15 years experience in Equity Research. This involved analysingvarious sectors and companies and presenting investment ideas to fundmanagers in India and abroad.� HSBC Asset Management (India) Private Limited

Fund Manager from Mar 2007 to present� Reliance Asset Management Co. Limited

Vice President/ Portfolio Manager from October 2005 to Feb 2007� ASK Raymond James Securities Pvt. Limited

Portfolio Manager from September 2003 to September 2005� IL&FS Asset Management Co. Limited

Senior Analyst from April 1997 to August 2003

Nilang MehtaVice President & Fund ManagerM.Com., CA, CFA

Experience:Over 8 years experience in credit research and fund management.� HSBC Asset Management (India) Pvt. Ltd

Fund Manager from October 2007 to presentAssistant Fund Manager from July 2004 to October 2007

� Alliance Capital Asset Management (India) Pvt. Ltd.Senior Manager - Fixed Income from April 2003 to July 2004

� IDBI Principal Asset Management (India) Pvt. Ltd.Investment Analyst from April 2001 to April 2003

� Bank of America - Global Capital MarketsIndustrial Trainee from August 1998 to August 1999

Niren ParekhAssociate Vice President, Investment Management(Dedicated Fund Manager for overseas investments)Post Graduate Diploma in Business Management, CA

Experience:Over 3 years experience in research.� HSBC Asset Management (India) Private Limited

Assistant Fund Manager from September 2007 to present� Motilal Oswal Securities Limited

Analyst from October 2005 to September 2007� SBI Capital Markets

Management Trainee from May 2005 to September 2005


An Open Ended Fund with Regular & Savings Plans.Monthly income is not assured and is subject to availability ofdistributable surplus.Investment Objective: Seeks to generate reasonable returns through investments in Debt andMoney Market Instruments. The secondary objective of the scheme is to invest in equity andequity related instruments to seek capital appreciation.

Issuer Market % to RatingValue Net

(Rs in Lacs) Assets

HSBC MIP - Savings Plan

24

Fixed Deposits

Standard Chartered Bank** 150.00 1.41% Unrated

Axis Bank** 100.00 0.94% Unrated

Securitised Debt

Fixed

Indian Loans Rec Tr Sr T2 (Tata Motors Finance) PTC 959.82 9.01% LA+(SO)

BHPC Auto Sec Tr Nov 07 I (Tata Motors) PTC 942.45 8.85% AAA +(SO)

Corp Debt Tr 08 – 09 Sr 9 (Bajaj Auto Finance) PTC 138.50 1.30% P1+(SO)

Collateralised Debt Tr Sr 24 Sr A2 77.56 0.73% AAA (SO)

(Power Finance Corporation) PTC

Corporate/PSU Debt

Fixed

Mahindra and Mahindra Financial Services 688.79 6.47% AA+

Rural Electrification Corporation 623.00 5.85% AAA


Indian Oil Corporation 560.83 5.27% AA+

Power Grid Corporation of India 511.63 4.80% AAA

GE Capital Services 471.78 4.43% AAA

Sundaram Finance 398.82 3.74% AA+

Power Finance Corporation 307.28 2.88% AAA


Kotak Mahindra Prime 76.49 0.72% LAA


National Bank for Agricultural and Rural Development 53.25 0.50% AAA


GE Money Financial Services 21.66 0.20% AAA

Equities

I T C 140.95 1.32%

HDFC Bank 88.95 0.84%






Zee News 41.84 0.39%




Cipla 30.80 0.29%

Jammu and Kashmir Bank 17.60 0.17%



7.95% Government Stock M 28-Aug-2032 686.40 6.44% Sovereign


7.95% Government Stock M 18-Jan-2025 306.30 2.88% Sovereign


HSBC MIP - Savings Plan

25


(Rs in Lacs) Assets

Cash Equivalents

CBLOs 337.01 3.16%



Total Net Assets as on 27 February 2009 10,651.71 100.00%

# Maturity months in case of fixed rate instruments / interest reset months in case of floating rate instrumentsand average maturity in case of non-standard assets which have multiple principal repayments.** Fixed deposits are placed as Margin Deposit for Futures and Options and Equities.

Fixed Deposits 2.35%Securitised Debt 19.89%Corporate/PSU Debt 44.08%Equities 6.98%Government Securities 15.76%Cash Equivalents 8.01%Net Current Assets 2.93%

Asset Allocation


HMIP- Crisil MIPSP Blended Index

6 Months 1.51 0.501 Year -2.07 -2.373 Years 7.79 5.61Since Inception 8.36 5.88

Date of Allotment 24-Feb-04Benchmark Crisil MIP Blended IndexAssets Under Rs 106.52 croresManagement(as on 27.02.09)NAV (Growth) Rs 15.0097per unit(as on 27.02.09)Average Maturity 65.47 monthsof PortfolioModified Duration 38.44 monthsof PortfolioFund Manager Nilang Mehta


SIP AvailableMinimum Application AmountGrowth Rs 10,000Quarterly Dividend Rs 10,000Monthly Dividend Rs 25,000Entry Load@ NilExit Load@ 1% if redeemed /

switched out within 1 yearfrom date of investment.For SEP - Nil

Annualised Expense Ratio from 01 April2008 onwards 2.04%

Rating ProfileAAA 38.77%AA+/ AA-/ AA 16.19%Below AA 9.01%Equities 6.98%Reverse Repos/CBLOs 8.01%Government Securities 15.76%Unrated 2.35%Net Current Assets 2.93%

* Past performance may or may not be sustainedin the future. Returns less than 1 year areare simple annualized. Returns equal to or greaterthan 1 year are compounded annualized. ‘Sinceinception’ returns are calculated on Rs 10invested at inception. Calculations are based onGrowth NAVs.


@ Including SIP/STP where applicable.


HSBC MIP - Savings Plan - Monthly Dividend26-Dec-08 0.04380 0.04076 10.989630-Jan-09 0.03504 0.03261 10.841527-Feb-09 0.03504 0.03261 10.7858HSBC MIP - Savings Plan - Quarterly Dividend19-Mar-08 0.21899 0.20382 11.411613-Jun-08 0.17519 0.16305 11.197012-Sep-08 0.15767 0.14675 10.7823


An Open Ended Fund with Regular & Savings Plans.Monthly income is not assured and is subject to availability ofdistributable surplus.Investment Objective: Seeks to generate reasonable returns through investments in Debt andMoney Market Instruments. The secondary objective of the scheme is to invest in equity andequity related instruments to seek capital appreciation.

HSBC MIP - Regular Plan

26


(Rs in Lacs) Assets

Fixed Deposits

Axis Bank** 100.00 1.64% Unrated

Standard Chartered Bank** 80.00 1.31% Unrated

Securitised Debt

Fixed

BHPC Auto Sec Tr Nov 07 I (Tata Motors Services) PTC 628.30 10.31% AAA(SO)

SCB Long Bond Rec Tr 06 Sr A2 483.70 7.94% AAA(SO)

(Standard Chartered Bank) PTC


Corp Loan Sec Tr Sr 15 Tr 08 - A1 (L&T Finance) PTC 223.98 3.68% AA+(SO)

Corporate/PSU Debt

Fixed


BHW Home Finance 494.33 8.11% LAA+

Sundaram Finance 366.30 6.01% LAA+

Mahindra & Mahindra Financial Services 295.19 4.85% AA+

Indian Railway Finance Corporation 254.64 4.18% AAA





Infrastructure Development Finance Corporation 9.94 0.16% AAA

Equities

I T C 36.61 0.60%

HDFC Bank 26.69 0.44%




Zee News 15.43 0.25%



Cipla 12.07 0.20%





Jammu and Kashmir Bank 4.09 0.07%



7.95% Government Stock M 28-Aug -2032 312.00 5.12% Sovereign



HSBC MIP - Regular Plan


AAA 39.01%AA+/ AA-/ AA 25.58%Below AA 6.30%Equities 3.63%Reverse Repos/CBLOs 6.55%Sovereign 13.70%Unrated 2.95%Net Current Assets 2.28%

Rating Profile

Fixed Deposits 2.95%Securitised Debt 28.23%Corporate/PSU Debt 42.66%Equities 3.63%Sovereign 13.70%Cash Equivalents 6.55%Net Current Assets 2.28%

Asset Allocation Date of Allotment 24-Feb-04Benchmark Crisil MIP Blended IndexAssets Under Rs 60.92 croresManagement(as on 27.02.09)NAV (Growth) Rs 14.1347per unit(as on 27.02.09)Average Maturity 51.44 monthsof PortfolioModified Duration 31.29 monthsof PortfolioFund Manager Nilang Mehta


SIP AvailableMinimum Application AmountGrowth Rs 10,000Quarterly Dividend Rs 10,000Monthly Dividend Rs 25,000Entry Load@ NilExit Load@ 1% if redeemed /

switched out within 1 yearfrom date of investment.For SEP - Nil

Annualised Expense Ratio from 01 April2008 onwards 2.06%

HMIP- Crisil MIPRP Blended Index

6 Months 3.49 0.501 Year 1.54 -2.373 Years 7.60 5.61Since Inception 7.07 5.88

27





HSBC MIP - Regular Plan - Monthly Dividend26-Dec-08 0.03504 0.03261 10.790830-Jan-09 0.02628 0.02446 10.745627-Feb-09 0.02628 0.02446 10.7563HSBC MIP - Regular Plan - Quarterly Dividend19-Mar-08 0.13139 0.12229 11.026013-Jun-08 0.13139 0.12229 10.945212-Sep-08 0.10511 0.09783 10.6660


(Rs in Lacs) Assets

Cash Equivalents

CBLOs 157.44 2.58%




# Maturity months in case of fixed rate instruments / interest reset months in case of floating rate instrumentsand average maturity in case of non-standard assets which have multiple principal repayments.** Fixed deposits are placed as Margin Deposit for Futures and Options and Equities.


28

HSBC Income Fund - Investment Plan

An Open Ended Income SchemeInvestment Objective: Aims to provide reasonable income through a diversified portfolio offixed income securities. The AMC’s view of interest rate trends and the nature of the Plans willbe reflected in the type and maturities of securities in which the Short Term and InvestmentPlans are invested.


(Rs in Lacs) Assets

Securitised Debt

Fixed

India MBS 2002 Sr I-D (LIC Housing Finance) PTC 74.95 0.71% AAA+(SO)

Corporate/PSU Debt

Fixed



State Bank of India 491.05 4.65% AAA



Exim Bank 310.56 2.94% AAA




State Bank of India 141.73 1.34% AAA




8.24% Government Stock M 22-Apr-2018 1,582.00 14.98% Sovereign

7.95% Government Stock M 28-Aug-2032 1,445.60 13.69% Sovereign

7.46% Government Stock M 28-Aug-2017 1,266.60 11.99% Sovereign

7.56% Government Stock M 03-Nov-2014 809.63 7.67% Sovereign

6.05% Government Stock M 02-Feb-2019 702.10 6.65% Sovereign

8.15% Government Stock M 16-Oct-2022 203.06 1.92% Sovereign


5.59% Government Stock M 04-June-2016 0.38 0.00% Sovereign

Cash Equivalents

CBLOs 295.94 2.80%


Net Current Assets -230.39 -2.18%


# Maturity months in case of fixed rate instruments / interest reset months in case of floating rate instrumentsand average maturity in case of non-standard assets which have multiple principal repayments.


29

HSBC Income Fund - Investment Plan


AAA 37.70%Government Securities 57.38%Reverse Repos/CBLOs 7.10%Net Current Assets -2.18%

Rating Profile

Securitised Debt 0.71%Corporate/PSU Debt 36.99%Government Securities 57.38%Cash Equivalents 7.10%Net Current Assets -2.18%

Asset Allocation

HIF- Crisil CompositeIP Bond Fund Index

6 Months 9.25 7.901 Year 10.63 7.383 Years 8.40 6.335 Years 6.15 4.75Since Inception 6.74 5.30

Portfolio Yield (%) 7.21

Date of Allotment 10-Dec-02Benchmark Crisil Composite Bond

Fund IndexAssets Under Rs 105.62 croresManagement(as on 27.02.09)NAV (Growth) Rs 15.1114per unit(as on 27.02.09)Average Maturity 122.62 monthsof PortfolioModified Duration 73.91 monthsof PortfolioFund Manager Suyash Choudhary &

Sanjay ShahSIP AvailableMinimum Application AmountRegular Rs 10,000Institutional Rs 50,00,000Entry Load@ NilExit Load@ Regular and Institutional

Options: 1% , ifredeemed / switchedout within 1 yearfrom date of investment.

Annualised Expense Ratio from 01 April2008 onwardsRegular 1.64%Institutional 1.02%





HSBC Income Fund - Investment Plan - Regular Option - Quarterly Dividend13-Jun-08 0.10511 0.09783 10.784412-Sep-08 0.10511 0.09783 10.758012-Dec-08 0.10511 0.09783 11.6020HSBC Income Fund - Investment Plan - Institutional Option - Quarterly Dividend18-Jun-04 0.04432 11.063317-Sep-04 0.04135 10.285712-Dec-08 0.10511 0.09783 11.0713


HSBC Income Fund - Short Term Plan

An Open Ended Income SchemeInvestment Objective: Aims to provide reasonable income through a diversified portfolio offixed income securities. The AMC’s view of interest rate trends and the nature of the Plans willbe reflected in the type and maturities of securities in which the Short Term and InvestmentPlans are invested.


(Rs in Lacs) Assets


30

(Rated mfAAA by ICRA)

Money Market Instruments

CDs

Fixed

Canara Bank 844.19 7.18% P1+

Oriental Bank of Commerce 564.65 4.80% P1+

Corporation Bank 485.44 4.13% P1+

Bank of Baroda 470.73 4.00% P1+

State Bank of Indore 470.49 4.00% P1+

Punjab National Bank 469.41 3.99% PR1+

Canara Bank 469.22 3.99% P1+

IDBI Bank 419.70 3.57% A1+

Corporation Bank 282.58 2.40% P1+


State Bank of Bikaner and Jaipur 149.94 1.28% P1+


Corporate/PSU Debt

Fixed





National Housing Bank 508.64 4.33% AAA









Cash Equivalents

CBLOs 111.54 0.95%







**Core Mark to Market component would meanbonds/instruments which have residual maturitygreater than 6 months and are valued as per CrisilBond Valuer. Core MTM is as on 27 February 2009.

Dividend DeclarationRecord Date/period Dividend (Rs. per unit) Dividend (Rs. per unit) NAV per unitof dividend declared Non-Institutional Institutional (cum dividend)

HSBC Income Fund - Short Term Plan - Regular Option - Monthly Dividend26-Dec-08 0.09008 0.08384 10.967130-Jan-09 0.16898 0.15728 10.954127-Feb-09 0.05265 0.04900 10.8878HSBC Income Fund - Short Term Plan - Institutional Option - Monthly Dividend29-Aug-08 0.06048 0.05629 10.108730-Jan-09 0.04978 0.04633 10.433327-Feb-09 0.05387 0.05014 10.5037

HIF- Crisil Short TermSTP Bond Fund Index

6 Months 4.77 7.391 Year 9.63 10.323 Years 7.91 8.055 Years 6.58 6.33Since Inception 6.47 6.07


Date of Allotment 10-Dec-02Benchmark Crisil Short Term Bond


Sanjay ShahSIP AvailableMinimum Application AmountRegular Rs 1,00,000Institutional Rs 100,00,000Institutional Plus Rs 500,00,000Entry Load@ NilExit Load@ 0.5% for investments in

Regular Option, ifredeemed/ switched outwithin 6 months from thedate of investment. Noload for Institutional andInstitutional Plus Option.

Annualised Expense Ratio from 01 April2008 onwardsRegular 1.05%Institutional 0.60%Institutional Plus 0.55%

Core MTM (% to Net Assets)** 52.57Portfolio Yield (%) 7.47Corporate/PSU Debt 52.57%

Money Market Instrument 41.55%Cash Equivalents 2.40%Net Current Assets 3.48%

Asset Allocation

AAA 94.12%Reverse Repos/CBLOs 2.40%Net Current Assets 3.48%

Rating Profile

31





32

An Open Ended Income SchemeInvestment Objective: Seeks to generate a reasonable return with commensurate risk throughinvestments in floating rate debt instruments and fixed rate debt instruments swapped forfloating rate returns. The Scheme may also invest in fixed rate money market and debtinstruments.


(Rs in Lacs) Assets

HSBC Floating Rate Fund - Long Term Plan


Money Market InstrumentsCPsExim Bank 194.89 0.27% P1+CDsFixedState Bank of Bikaner and Jaipur 4,450.87 6.15% P1+Oriental Bank of Commerce 2,656.16 3.67% P1+State Bank of Hyderabad 2,438.67 3.37% A1+Punjab National Bank 2,436.38 3.36% PR1+Allahabad Bank 2,435.96 3.36% A1+Bank of Baroda 2,429.60 3.35% A1+Oriental Bank of Commerce 2,427.96 3.35% P1+Union Bank of India 2,405.65 3.32% A1+Union Bank of India 2,384.58 3.29% P1+State Bank of Hyderabad 2,356.74 3.25% A1+State Bank of Bikaner and Jaipur 2,356.02 3.25% P1+Vijaya Bank 2,355.11 3.25% PR1+Bank of Baroda 2,350.80 3.25% P1+Canara Bank 2,349.82 3.24% P1+National Housing Bank 2,343.36 3.24% A1+Corporation Bank 2,072.25 2.86% P1+Punjab National Bank 1,906.33 2.63% PR1+Canara Bank 1,876.87 2.59% P1+Oriental Bank of Commerce 1,786.23 2.47% P1+Canara Bank 1,500.78 2.07% P1+Allahabad Bank 1,462.30 2.02% A1+Vijaya Bank 1,461.85 2.02% PR1+IDBI Bank 1,457.50 2.01% A1+State Bank of Bikaner and Jaipur 1,255.76 1.73% P1+Bank of Baroda 971.60 1.34% P1+Punjab National Bank 971.15 1.34% PR1+Punjab National Bank 797.27 1.10% PR1+Allahabad Bank 499.78 0.69% P1+Punjab National Bank 448.83 0.62% IND F1+State Bank of India 199.11 0.27% P1+IDBI Bank 149.07 0.21% A1+Allahabad Bank 122.69 0.17% A1+State Bank of Indore 117.62 0.16% P1+State Bank of India 98.87 0.14% P1+IDBI Bank 46.63 0.06% A1+State Bank of Bikaner and Jaipur 9.53 0.01% P1+Securitised DebtFixedCorp Loan Sec Sr XXXVII Tr 06 1,320.61 1.82% IND F1+SO(Shriram Transport Finance Company) PTCCorporate/PSU DebtFixedPower Finance Corporation 1,024.25 1.41% AAAPower Finance Corporation 535.01 0.74% AAAGE Capital Services 346.93 0.48% AAACash EquivalentsCBLOs 4,810.48 6.64%Reverse Repos 7,373.53 10.18%Net Current Assets -566.93 -0.78%Total Net Assets as on 27 February 2009 72,428.46 100.00%



Core MTM (% to Net Assets)** 4.46Portfolio Yield (%) 6.21

**Core Mark to Market component would meanbonds/instruments which have residual maturitygreater than 6 months and are valued as per CrisilBond Valuer. Core MTM is as on 27 February 2009.


AAA 83.96%Reverse Repos/CBLOs 16.82%Net Current Assets -0.78%

Rating Profile

Money Market Instruments 79.51%Securitised Debt 1.82%Corporate/PSU Debt 2.63%Cash Equivalents 16.82%Net Current Assets -0.78%

Asset Allocation

HFRF- Crisil LiquidLTP Fund Index

6 Months 4.36 4.831 Year 9.01 8.993 Years 8.05 7.53Since Inception 7.25 6.70

Date of Allotment 16-Nov-04Benchmark Crisil Liquid Fund IndexAssets Under Rs 724.28 croresManagement(as on 27.02.09)NAV (Growth) Rs 13.5196per unit(as on 27.02.09)Average Maturity 6.96 monthsof PortfolioModified Duration 6.44 monthsof PortfolioFund Manager Suyash Choudhary &

Sanjay ShahSIP AvailableMinimum Application AmountRegular Rs 10,000Institutional Rs 50,00,000Entry Load@ NilExit Load@ 0.25% for investments/

switch-ins in RegularOption, if redeemed/switched-out within 3months from date ofinvestment.No load for InstitutionalOption.Daily dividendsub - option underRegular and InstitutionalOption - Nil





HSBC Floating Rate Fund - Long Term Plan - Regular Option - Monthly Dividend26-Dec-08 0.05208 0.04848 10.059530-Jan-09 0.07696 0.07163 10.087927-Feb-09 0.04883 0.04545 10.0557HSBC Floating Rate Fund - Long Term Plan - Institutional Option - Monthly Dividend26-Dec-08 0.06094 0.05672 10.167930-Jan-09 0.12147 0.11305 10.191527-Feb-09 0.04899 0.04559 10.1116


33

HSBC Floating Rate Fund - Long Term Plan


An Open Ended Income SchemeInvestment Objective: Seeks to generate a reasonable return with commensurate risk throughinvestments in floating rate debt instruments and fixed rate debt instruments swapped forfloating rate returns. The Scheme may also invest in fixed rate money market and debtinstruments.


(Rs in Lacs) Assets

HSBC Floating Rate Fund - Short Term Plan

34



CDs

Fixed


State Bank of India 99.56 0.99% P1+

Securitised Debt

Fixed

Corporate Loan Securitisation Series 87.02 0.87% P1(SO)

Trust - Series A1 (DLF) PTC

Cash Equivalents

CBLOs 3,772.02 37.68%







HSBC Floating Rate Fund - Short Term Plan

35

Money Market Instruments 2.98%Securitised Debt 0.87%Cash Equivalents 95.43%Net Current Assets 0.72%

Asset Allocation

AAA 2.98%AA+/ AA-/ AA 0.87%Reverse Repos/CBLOs 95.43%Net Current Assets 0.72%

Rating Profile

HFRF- Crisil LiquidSTP Fund Index

1 Week 4.50 7.972 Weeks 4.81 8.871 Month 4.95 8.553 Months 6.12 9.656 Months 7.43 9.801 Year 8.09 9.013 Years 7.60 7.53Since Inception 6.94 6.70


MTM (% of Net Assets)* N.A.Core MTM (% to Net Assets)** 0.00Portfolio Yield (%) 3.58* As per SEBI definition, MTM Component of a liquidfund should be <10% on weekly average basis.TheMTM% disclosed is the weekly average for theweek ended 27 February 2009.**Core Mark to Market component would meanbonds/instruments which have residual maturitygreater than 6 months and are valued as per CrisilBond Valuer. Core MTM is as on 27 February 2009.



HSBC Floating Rate Fund - Short Term Plan - Institutional Option - Monthly Dividend26-Dec-08 0.04857 0.04857 10.191930-Jan-09 0.04454 0.04454 10.186827-Feb-09 0.03099 0.03099 10.1694HSBC Floating Rate Fund - Short Term Plan - Institutional Plus Option - MonthlyDividend30-Dec-05 0.03967 0.04259 10.054027-Jan-06 0.03825 0.03562 10.048524-Feb-06 0.03660 0.03408 10.0483

Date of Allotment 16-Nov-04Benchmark Crisil Liquid Fund IndexAssets Under Rs 100.11 croresManagement(as on 27.02.09)NAV (Growth) Rs 13.3319per unit(as on 27.02.09)Average Maturity 0.18 monthsof PortfolioModified Duration 0.08 monthsof PortfolioFund Manager Suyash Choudhary &

Sanjay ShahSIP AvailableMinimum Application AmountRegular Rs 1,00,000Institutional Rs 50,00,000Institutional Plus Rs 5,00,00,000Entry Load@ NilExit Load@ NilAnnualised Expense Ratio from 01 April2008 onwardsRegular 0.70%Institutional 0.45%Institutional Plus 0.41%


Expense Ratios 01 Feb 2009 to Average for28 Feb 2009 the month

- Regular 0.75 0.75- Institutional 0.45 0.45- Institutional Plus 0.40 0.40


An Open Ended Liquid SchemeInvestment Objective: Aims to provide reasonable returns, commensurate with low risk whileproviding a high level of liquidity, through a portfolio of money market and debt securities.

HSBC Cash Fund


(Rs in Lacs) Assets

36

(Rated mfA1+ by ICRA)


CPs

Exim Bank 2,241.28 2.66% P1+

CDs

Fixed

State Bank of India 4,280.97 5.08% P1+

State Bank of Mysore 2,496.97 2.97% P1+

Canara Bank 2,486.10 2.95% P1+

Punjab National Bank 1,498.26 1.78% INDF1+

Indian Overseas Bank 1,490.42 1.77% A1+

Oriental Bank of Commerce 1,292.25 1.53% P1+

Canara Bank 844.82 1.00% P1+

Exim Bank 191.63 0.23% P1+

ICICI Bank 99.65 0.12% A1+

State Bank of Bikaner and Jaipur 19.86 0.02% P1+

Securitised Debt

Mibor Linked

UBL Trust -Series 51 (DLF ) PTC 4,997.77 5.94% IND F1 (SO)

Corporate/PSU Debt

Fixed

Unitech 1,061.95 1.26% F4(IND)

INBMK Linked

Finolex Industries 1,481.09 1.76% AA

Infrastructure Development Finance Company 299.91 0.36% AAA

Cash Equivalents

CBLOs 22,085.31 26.23%






HSBC Cash Fund

37

HCF Crisil LiquidFund Index

1 Week 4.92 7.972 Weeks 4.86 8.871 Month 4.76 8.553 Months 5.51 9.656 Months 6.70 9.801 Year 7.59 9.013 Years 7.34 7.535 Years 6.38 6.28Since Inception 6.16 5.93


Money Market Instruments 20.12%Securitised Debt 5.94%Corporate/PSU Debt 3.38%Cash Equivalents 66.44%Net Current Assets 4.12%

Asset Allocation

AAA 20.48%AA+/ AA-/ AA 7.70%Below AA 1.26%Reverse Repos/CBLOs 66.44%Net Current Assets 4.12%

Rating Profile



MTM (% of Net Assets)* N.A.Core MTM (% to Net Assets)** 0.00Portfolio Yield (%) 5.15

* As per SEBI definition, MTM Component of a liquidfund should be <10% on weekly average basis.TheMTM% disclosed is the weekly average for the weekended 27 February 2009.**Core Mark to Market component would mean bonds/instruments which have residual maturity greater than6 months and are valued as per Crisil Bond Valuer.Core MTM is as on 27 February 2009.


HSBC Cash Fund - Institutional Option - Monthly Dividend26-Dec-08 0.04449 0.04449 10.578430-Jan-09 0.04105 0.04105 10.574027-Feb-09 0.03137 0.03137 10.5616HSBC Cash Fund - Institutional Plus Option - Monthly Dividend26-Dec-08 0.04501 0.04501 10.134030-Jan-09 0.04234 0.04234 10.130527-Feb-09 0.03246 0.03246 10.1179

Date of Allotment 04-Dec-02Benchmark Crisil Liquid Fund IndexAssets Under Rs 841.89 croresManagement(as on 27.02.09)NAV (Growth) Rs 14.521per unit(as on 27.02.09)Average Maturity 0.40 monthsof PortfolioModified Duration 0.29 monthsof PortfolioFund Manager Sanjay Shah &

Suyash ChoudharySIP AvailableMinimum Application AmountRegular Rs 1,00,000Institutional Rs 50,00,000Institutional Plus Rs 5,00,00,000Entry Load@ NilExit Load@ NilAnnualised Expense Ratio from 01 April2008 onwardsRegular 0.78%Institutional 0.56%Institutional Plus 0.30%






38

HGF- I-Sec-Si-BexSTP

6 Months -7.86 10.981 Year -5.24 13.853 years 1.13 9.675 years 1.83 7.41Since Inception 1.84 7.28

An Open Ended Gilt SchemeInvestment Objective: Aims to generate reasonable returns through investments inGovernment Securities of various maturities.


(Rs in Lacs) Assets

HSBC Gilt Fund - Short Term Plan

Date of Allotment 05-Dec-03Benchmark I-Sec-Si-BexAssets Under Rs 44.42 croresManagement(as on 27.02.09)NAV (Growth) Rs 11.1206per unit(as on 27.02.09)Average Maturity 139.98 monthsof PortfolioModified Duration 77.68 monthsof PortfolioFund Manager Suyash Choudhary &

Sanjay ShahSIP AvailableMinimum Rs 10,000ApplicationAmountEntry Load@ NilExit Load@ NilAnnualised Expense Ratio from 01 April2008 onwards 0.75%


7.95% Government Stock M-28-Aug-2032 1,248.00 28.09% Sovereign

7.46% Government Stock M-28-Aug-2017 949.95 21.38% Sovereign

8.24% Government Stock M- 22-Apr-2018 791.00 17.81% Sovereign

7.56% Government Stock M-03-Nov-2014 431.80 9.72% Sovereign

6.05% Government Stock M-02-Feb-2019 401.20 9.03% Sovereign

Cash Equivalents

CBLOs 199.95 4.50%

Reverse Repo 306.48 6.90%







HSBC Gilt Fund - Short Term Plan - Monthly Dividend31-Oct-08 0.06136 0.05711 10.807728-Nov-08 0.04193 0.03903 10.785526-Dec-08 0.03400 0.03164 10.7764


Government Securities 86.03%Cash Equivalents 11.40%Net Current Assets 2.57%

Asset Allocation

Government Securities 86.03%Cash Equivalents 11.40%Net Current Assets 2.57%

Rating Profile


An Open Ended Debt SchemeInvestment Objective: Seeks to provide liquidity and reasonable returns by investing primarilyin a mix of short term debt and money market instruments

HSBC Ultra Short Term Bond Fund


(Rs in Lacs) Assets

39


CPs

Shriram Transport Finance Company 4,915.49 4.76% IND F1+

Reliance Capital 1,485.15 1.44% A1+

CDs

Fixed

Kotak Mahindra Bank 738.88 0.72% P1+

State Bank of India 348.46 0.34% P1+

ICICI Bank 295.55 0.29% A1+



Canara Bank 49.70 0.05% P1+

Securitised Debt

Fixed

Corp Debt Tr Sr 15 - Sr A1 (National Housing Bank) PTC 1,187.78 1.15% LAAA(SO)

Corp Debt Tr Sr 15 - Sr A2 (National Housing Bank) PTC 323.44 0.31% LAAA(SO)

Loans Rec Tr Jul 08 Sr A2 289.57 0.28% P1+(SO)

(Shriram Transport Finance Company) PTC

Loans Rec Tr Jul 08 Sr A1 277.72 0.27% P1+(SO)

(Shriram Transport Finance Company) PTC


Corp Loan Sec Sr 7 Tr 09 Sr A1 (DLF) PTC 260.60 0.25% P1(SO)

Corp Loan Sec Sr XXIX Tr 06 (L&T Finance) PTC 151.42 0.15% PR1+ (SO)

Corp Loan Sec Sr Tr Sr A1 (DLF) PTC 69.62 0.07% P1(SO)

ISH Loan Tr Sr A1 (Simplex Infrastructure) PTC 61.05 0.06% PR1+(SO)

Corp Loan Sec Tr Sr 15 Tr 08 - A1 (L&T Finance) PTC 55.99 0.05% AA+(SO)

Corp Loan Sec Sr 8 Tr 09 Sr A1 (DLF) PTC 35.83 0.03% P1(SO)

Mibor Linked

BHPC Auto Sec Srs A1 (Tata Motors) PTC 8,652.43 8.37% AAA(SO)

KUL Loan Tr Sr A1 (Unitech) PTC 5,010.76 4.85% F4 (Ind)

UBL Trust -Series 51 (DLF ) PTC 4,997.77 4.84% IND F1(SO)

Indian Loans Rec Tr May 08 Sr A2 (DLF ) PTC 501.12 0.48% P1(SO)

Corp Loan Sec Sr XXXIII Tr 06 499.55 0.48% IND F1+ (SO)

(Shriram Transport Finance Company ) PTC

Corp Debt Tr 08-09 Sr 5 A1 (LIC Housing Finance) PTC 273.21 0.26% AAA(SO)

Corp Loan Sec Sr XXIX Tr 06 206.81 0.20% P1+ (SO)

(Shriram Transport Finance Company ) PTC

Corp Debt Tr 08-09 Sr 5 A2 150.70 0.15% AAA(SO)

(LIC Housing Finance Corporation ) PTC

Corporate/PSU Debt

Fixed

Unitech 3,307.79 3.20% F4 (IND)

ICICI Home Finance Company 1,006.48 0.97% LAAA

Sundaram Finance 99.71 0.10% AA+

(Rated mfA1+ by ICRA)




(Rs in Lacs) Assets

40

Mibor Linked

Tata Sons 15,001.16 14.52% AAA

Citicorp Finance 5,001.30 4.84% AA+

Housing Development Finance Corporation 5,000.00 4.84% AAA

Tata Steel 1,500.00 1.45% AAA (Ind)

INBMK Linked

Housing Development Finance Corporation 5,023.38 4.86% LAAA

ICICI Bank 5,013.78 4.85% AAA

Indian Railway Finance Corporation 5,000.61 4.84% AAA

Axis Bank 4,498.94 4.35% LAA+

Power Finance Corporation 3,000.58 2.90% AAA

Infrastructure Development Finance Company 1,199.64 1.16% AAA

Cash Equivalents

CBLOs 5,078.85 4.92%







41


Money Market Instruments 8.10%Securitised Debt 22.52%Corporate/PSU Debt 52.89%Cash Equivalents 12.45%Net Current Assets 4.04%

Asset Allocation

Rating Profile

AAA 60.19%AA+/ AA-/ AA 15.02%Below AA 8.31%Reverse Repos/CBLOs 12.45%Net Current Assets 4.04%


HSBC Ultra Short Term Bond Fund - Institutional Option - Monthly Dividend26-Dec-08 0.05905 0.05496 10.205930-Jan-09 0.05796 0.05395 10.204727-Feb-09 0.04844 0.04509 10.1938HSBC Ultra Short Term Bond Fund - Institutional Plus Option - Monthly Dividend26-Dec-08 0.06260 0.05826 10.398630-Jan-09 0.06211 0.05780 10.398027-Feb-09 0.05179 0.04820 10.3862

HUSBF Crisil LiquidFund Index

6 Months 3.74 4.831 Year 8.12 8.99Since Inception 8.21 7.91

* Past performance may or may not be sustainedin the future. Returns less than 1 yearare simple annualized. Returns equal to or greaterthan 1 year are compounded annualized. ‘Sinceinception’ returns are calculated on Rs 10invested at inception. Calculations are based onGrowth NAVs.


**Core Mark to Market component would mean bonds/instruments which have residual maturity greater than6 months and are valued as per Crisil Bond Valuer.Core MTM is as on 27 February 2009.

Core MTM (% to Net Assets)** 2.59Portfolio Yield (%) 8.36

Date of Allotment 17-Oct-06Benchmark Crisil Liquid Fund IndexAssets Under Rs 1,033.30 croresManagement(as on 27.02.09)NAV (Growth) Rs 12.0522per unit(as on 27.02.09)Average Maturity 1.32 monthsof PortfolioModified Duration 1.14 monthsof PortfolioFund Manager Sanjay Shah &

Kedar KarnikSIP AvailableMinimum Application AmountRegular Rs 10,000Institutional Rs 50,00,000Institutional Plus Rs 5,00,00,000Entry Load@ NilExit Load@ NilAnnualised Expense Ratio from 01 April2008 onwardsRegular 0.81%Institutional 0.59%Institutional Plus 0.31%





42

An Open Ended Debt SchemeInvestment Objective: Seeks to deliver returns in the form of interest income and capital gains, alongwith high liquidity, commensurate with the current view on the markets and the interest rate cycle, throughactive investment in debt and money market instruments.


(Rs in Lacs) Assets

HSBC Flexi Debt Fund(Rated mfAAA by ICRA)

Corporate/PSU Debt

Fixed

State Bank of India 3,907.75 11.36% AAA

Indian Oil Corporation 2,243.33 6.52% AA+

Rural Electrification Corporation 1,631.25 4.74% AAA

Rural Electrification Corporation 1,586.39 4.61% AAA

Exim Bank 1,024.69 2.98% AAA







SREI Infrastructure Finance 197.59 0.57% PR1+


BHW Home Finance 98.02 0.28% LAA+


GE Capital Services 8.58 0.02% AAA


8.24% Government Stock M-22-Apr-2018 4,972.00 14.45% Sovereign



7.56% Government Stock M-03-Nov-2014 2,536.83 7.37% Sovereign

6.05% Government Stock M-02-Feb-2019 1,905.70 5.54% Sovereign

8.15% Government Stock M-16-Oct-2022 1,319.89 3.84% Sovereign

Cash Equivalents

CBLOs 480.06 1.40%






HSBC Flexi Debt Fund

43


AAA 32.72%AA+/ AA-/ AA 7.60%Government Securities 55.55%Reverse Repos/CBLOs 3.53%Net Current Assets 0.59%

Rating Profile

Corporate/PSU Debt 40.32%Government Securities 55.55%Cash Equivalents 3.53%Net Current Assets 0.59%

Asset Allocation


HSBC Flexi Debt Fund - Regular Option - Monthly Dividend28-Nov-08 0.14608 0.13596 10.304926-Dec-08 0.37590 0.34986 11.068030-Jan-09 0.04782 0.04413 10.4957HSBC Flexi Debt Fund - Institutional Option - Monthly Dividend28-Nov-08 0.28600 0.26619 10.656626-Dec-08 0.35983 0.33491 11.280630-Jan-09 0.01813 0.01687 10.7271HSBC Flexi Debt Fund - Regular Option - Quarterly Dividend13-Jun-08 0.01829 0.01703 10.068112-Sep-08 0.11074 0.10307 10.221412-Dec-08 0.10511 0.09783 11.1340HSBC Flexi Debt Fund - Institutional Option - Quarterly Dividend12-Dec-08 0.10511 0.09783 11.0266

HFDF CrisilCompositeBond Fund

Index6 months 10.78 7.901 Year 13.33 7.38Since Inception 12.36 7.67

* Past performance may or may not be sustainedin the future. Returns less than 1 year aresimple annualized. Returns equal to or greaterthan 1 year are compounded annualized. ‘Sinceinception’ returns are calculated on Rs 10invested at inception. Calculations are based onGrowth NAVs.


Date of Allotment 05-Oct-07Benchmark Crisil Composite Bond


Sanjay ShahSIP AvailableMinimum Application AmountRegular Rs 10,000Institutional Rs 50,00,000Entry Load@ NilExit Load@ 0.75% under Regular

Option, if redeemed/switched out within6 months from date ofinvestment.0.25% under RegularOption, if redeemed/switched out fromgreater than 6 months to1 year.



Portfolio Yield (%) 7.52


Fund Managers - MIP & Debt

44

Fund Manager’s Experience

Suyash ChoudharyVice President & Head of Fund Management - Fixed IncomeB.A. (Hons) Economics, Post Graduate Diploma in Management

Experience:Over 7 years experience in research and fund management.� HSBC Asset Management (India) Private Limited

Head of Fund Management - Fixed Income from December 2008to presentFund Manager from February 2008 to December 2008

� Standard Chartered AMCFund Manager from November 2002 to January 2008Manager – Pension Funds from November 2001 to October 2002

� DB Consulting Group Asia PacificResearch Associate from May 2000 to October 2001

Name of Scheme Fund Manager

HSBC MIP For Fixed Income portion:

- Savings & Regular Plan Suyash Choudhary (from 29 August 2008)

For Equity portion: Nilang Mehta

(from 23 March 2007)

HSBC Income Fund Suyash Choudhary (from 10 July 2008) &

- Investment Plan Sanjay Shah (from 09 January 2009)

HSBC Income Fund Suyash Choudhary (from 10 July 2008) &

- Short Term Plan Sanjay Shah (from 09 January 2009)

HSBC Floating Rate Fund Suyash Choudhary (from 11 February 2008)

Long Term Plan & & Sanjay Shah (from 09 January 2009)

Short Term Plan

HSBC Cash Fund Sanjay Shah (from 09 January 2009) &

Suyash Choudhary (from 11 February 2008)

HSBC Gilt Fund Suyash Choudhary (from 11 February 2008)

- Short Term Plan & Sanjay Shah (from 09 January 2009)

HSBC Ultra Short Term Sanjay Shah (from 09 January 2009) &

Bond Fund Kedar Karnik (from 18 December 2008)

HSBC Flexi Debt Fund Suyash Choudhary (from 11 February 2008)

& Sanjay Shah (from 09 January 2009)


Fund Managers - MIP & Debt

45

Sanjay ShahVice President & Fund Manager - Fixed IncomeB. Com, A.C.A., Post Graduate Diploma in Management

Experience:Over 9 years of experience in Risk.� HSBC Asset Management (India) Private Limited

Vice President & Fund Manager, Fixed Income since December 2008onwards

� FIL Fund Management Private LimitedCredit Analyst from September 2008 to December 2008

� Lehman Brothers Structured Financial Services Private LimitedVice President, Convertible Products from September 2006 toSeptember 2008

� Rabo India Finance Private LimitedSenior Manager – Credit Risk from July 2004 to September 2006

� ICICI Bank LimitedManager, Credit Risk from January 2003 to June 2004

� SBI Funds Management Private LimitedChief Manager, Debt Funds from June 1999 to January 2003

Kedar KarnikAssociate Vice President & Assistant Fund Manager - Fixed IncomeM.M.S. (Finance), B.E.

Experience:Over 3 years experience in research and credit rating.� HSBC Asset Management (India) Private Limited

Associate Vice President & Assistant Fund Manager - Fixed Incomefrom December 2008 to present

� HSBC Asset Management (India) Private LimitedAssociate Vice President & Credit Analyst from July 2008 toDecember 2008

� CRISIL LimitedManager – Financial Sector Ratings from September 2005 to July 2008

� ICICI Bank LimitedManagement Trainee from May 2005 to September 2005


Statutory Details & Disclaimers

All returns have been sourced from MutualFundsIndia Explorer software unless otherwise stated.Withregard to equity schemes (including the equity component of MIPs), Fund performance is calculatedon a total return basis (i.e. it includes dividends re-invested) while the benchmark is calculated ona price return basis (i.e. it does not consider dividends re-invested).

This document has been prepared by HSBC Asset Management (India) Private Limited (HSBC) forinformation purposes only and should not be construed as an offer or solicitation of an offer forpurchase 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 believesto be reliable but which it has not independently verified and HSBC, the third party makes no guar-antee, representation or warranty and accepts no responsibility or liability as to the accuracy orcompleteness of such information. The information and opinions contained within the document arebased 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 andare subject to change without notice. It does not have regard to specific investment objectives,financial situation and the particular needs of any specific person who may receive this document.Investors should seek financial advice regarding the appropriateness of investing in any securitiesor investment strategies that may have been discussed or recommended in this report and shouldunderstand that the views regarding future prospects may or may not be realized. Neither thisdocument nor the units of HSBC Mutual Fund have been registered in any jurisdiction. The distri-bution 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, andto observe, any such restrictions. Mutual fund investments are subject to market risks. Please readthe offer documents carefully before investing.

© Copyright. HSBC Asset Management (India) Private Limited 2009, ALL RIGHTS RESERVED.

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

Statutory Details & Risk Factors : Investors may obtain Offer Documents/ Scheme InformationDocument and Key Information Memorandums along with application forms from the office of HSBCMutual Fund, 314 D. N. Road, Fort, Mumbai 400 001. Tel: 022-6666 8819. Statutory Details: HSBCMutual Fund has been set up as a trust by HSBC Securities and Capital Markets (India) PrivateLimited (liability restricted to the corpus of Rs 1 lakh). The Sponsor/associates of the Sponsor/AssetManagement Company (AMC) are not responsible or liable for any loss or shortfall resulting fromthe operation of the Schemes. The Trustees of HSBC Mutual Fund have appointed HSBC AssetManagement (India) Private Limited as the Investment Manager. Risk Factors: All investments inmutual funds and securities are subject to market risks and the Net Asset Value (NAV) of the Scheme(s)may go up or down depending on the factors and forces affecting the securities markets. There canbe no assurance that the objectives of the Scheme(s) will be achieved. Past performance of theSponsor, AMC, Mutual Fund or any associates of the Sponsor/AMC does not indicate the futureperformance of the Scheme(s) of the Mutual Fund. HSBC Equity Fund (HEF), HSBC India Oppor-tunities Fund (HIOF), HSBC Midcap Equity Fund (HMEF), HSBC Advantage India Fund (HAIF),HSBC Tax Saver Equity Fund (HTSF), HSBC Dynamic Fund (HDF), HSBC Emerging MarketsFund (HEMF), HSBC Unique Opportunities Fund (HUOF), HSBC Small Cap Fund (HSCF), HSBCIncome Fund (HIF), HSBC Gilt Fund (HGF), HSBC Cash Fund (HCF), HSBC Ultra Short TermBond Fund (HUSBF), HSBC MIP (HMIP), HSBC Floating Rate Fund (HFRF), HSBC Flexi DebtFund (HFDF), HSBC Interval Fund (HINF) & HSBC Fixed Term Series (HFTS) are the names ofthe Schemes and do not in any manner indicate the quality of the Schemes or their future prospectsor returns. Terms of Issue: Units of the Scheme(s) are being offered at NAV based prices, subjectto the prevailing loads. The AMC calculates and publishes NAVs and offers for sale, redemption andswitch outs, units of the Scheme(s) on all Business Days, at the Applicable NAV for all Schemes (atleast once a week, i.e., every Wednesday and daily during the period of redemption in case of HSCF).HUOF, HSCF & HFTS will not be open for ongoing subscriptions/ switch ins. HUOF & HSCF wouldbe available for sale on an ongoing basis (after a period of 3 years from the date of allotment).Conversion of HUOF & HSCF to an open-ended scheme will be done only after the balance unam-ortized amount has been fully recovered from the Scheme. Units can be redeemed/switched out onevery Business Day at NAV based prices, subject to prevailing exit loads. In case of HSCF, units canbe redeemed / switched out on a monthly basis on the stipulated date i.e. last 3 business days of everymonth at NAV based prices, subject to provisions of exit load, if any and recovery of balance propor-tionate unamortized NFO expenses. HINF will allow purchases/redemptions during the specifiedinterval period at NAV based prices, without payment of any entry/exit load. In addition, the Schemealso provides for redemption of units on every Business Day on an ongoing basis subject to appli-cable exit load. Mutual Fund investments are subject to market risks. Read the SchemeInformation Document and the Statement of Additional Information carefully beforeinvesting.


HSBC Asset Management (India) Private Limited314 D. N. Road, Fort, Mumbai 400 001Tel.: 022-6614 5000Fax: 022-4002 9600Email: [email protected] : www.assetmanagement.hsbc.com/in

HSBC MUTUAL FUND INVESTOR SERVICE CENTRES

City Telephone No.

Ahmedabad 098983 77319

Andhra Pradesh 098496 77319

Bangalore 080 4118 6519

Bihar 099313 97319

Chandigarh 0172 500 8119

Chennai 044 4200 8719

Coimbatore 098944 77319

Delhi 011 4149 0719

Hyderabad 040 6667 4719

Indore 098934 77319

Jaipur 099280 37319

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Kochi 098954 77319

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Lucknow 099367 97319

Maharashtra / Goa 099600 77321

MP / Chattisgarh 098934 77319

Mumbai 022 6666 8819

NCR 099107 97319

Pune 020 2600 1119,020 2613 4283

Punjab 098769 37319

UP 099350 97321

Vadodara 098983 77319

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