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Index

1

In this Issue ...

Fund Manager Commentary Pg 2

HSBC Equity Fund Pg 6

HSBC India Opportunities Fund Pg 8

HSBC Midcap Equity Fund Pg 10

HSBC Progressive Themes Fund Pg 12

HSBC Tax Saver Equity Fund Pg 14

HSBC Unique Opportunities Fund Pg 16

HSBC Dynamic Fund Pg 18

HSBC Emerging Markets Fund Pg 20

HSBC Small Cap Fund Pg 21

HSBC Brazil Fund Pg 23

Fund Managers - Equity Pg 24

Comparative Performance of Equity Schemes Pg 26

HSBC MIP - Savings Plan Pg 29

HSBC MIP - Regular Plan Pg 31

HSBC Income Fund - Investment Plan Pg 33

HSBC Income Fund - Short Term Plan Pg 35

HSBC Floating Rate Fund - Long Term Plan Pg 37

HSBC Cash Fund Pg 39

HSBC Gilt Fund Pg 41

HSBC Ultra Short Term Bond Fund Pg 42

HSBC Flexi Debt Fund Pg 44

Fund Managers - MIP & Debt Pg 46

Comparative Performance of MIP & Debt Schemes Pg 47

Fund Manager Commentary July 2013

2

Equity & MIP

Market UpdateEquity markets appeared weak during the month weighed down by a depreciating rupee and some subsequent actions by the Central Bank aimed at arresting the currency fall. The Reserve Bank of India (RBI) undertook a series of measures to tighten system liquidity to check the rupee fall as it raised the borrowing cost and imposed restrictions on the overnight money market. With the first set of actions having a minimal impact on supporting the currency, the RBI intervened a second time within a short span with some additional tightening measures. The short term rates rose sharply as a result of these actions, adversely impacting banks and the overall equity market sentiments. The Central Bank however kept the policy rates unchanged later during the quarterly meet and indicated that the liquidity tightening measures may be temporary but contingent on the forex market stability. On the contrary, the country has experienced above normal monsoon rainfall so far and that augurs well for the agriculture related segments and the overall rural demand scenario. The government also kept up the reforms drive and hiked the Foreign Direct Investment (FDI) limits in defence & insurance sectors. The Union Cabinet also approved the National Food Security Bill through the ordinance route, which is aimed at providing subsidized food for the majority of the population.

The market indices Nifty & BSE Sensex were down 1.7% & 0.3% respectively during the month but the broader market was impacted more severely as a result of the market interventions by the RBI and the currency fall. BSE Midcap & BSE Smallcap indices were down 7.1% & 5.9% respectively. Amongst the BSE sectoral indices, Bankex was the worst performer losing 13.7%, while Realty & Metals were down 12.8% & 11.2% respectively. IT supported the market indices by delivering 19.2% returns as the sector is a beneficiary of the depreciating currency.

The Foreign Institutional Investors (FIIs) remained net sellers for the second consecutive month due to the perceived impact of the scale down in the US Quantitative Easing (QE). FII segment net sold Indian equities worth USD 992 mn (cash segment) during July, bringing down the YTD net inflow figure to USD 12.5 bn. The domestic segment (DIIs) turned back to net sellers during the month as the net outflow from the segment stood at USD 258 mn for the month. On a YTD basis, the DIIs are net sellers to the tune of USD 7.8 bn.

Rupee remained on a turbulent trajectory touching historical lows versus the USD. A weak rupee can be a double whammy for the economy as with the high levels of the Current Account Deficit (CAD), it may weaken the country’s ability to finance its external obligations and hence risk an adverse action on the sovereign rating front.

Rupee depreciation impacted market sentiments

Source: Bloomberg ; Central Statistical Organization (CSO) India

Source: Bombay Stock Exchange (BSE)

Weak Rupee remains the primary concern

4.00%5.00%6.00%7.00%8.00%9.00%

10.00%

Jul/0

7

Nov

/07

Mar

/08

Jul/0

8

Nov

/08

Mar

/09

Jul/0

9

Nov

/09

Mar

/10

Jul/1

0

Nov

/10

Mar

/11

Jul/1

1

Nov

/11

Mar

/12

Jul/1

2

Nov

/12

Mar

/13

Jul/1

3

Repo Rate Movement

Repo Rate

-8.0%-7.0%-6.0%-5.0%-4.0%-3.0%-2.0%-1.0%0.0%

Sensex BSE100 BSE200 BSE500 BSEMidCap

BSESmallCap

-0.3% -1.6%

-2.3% -2.5%

-7.1% -5.9%

Indices Performance - July 2013

Inflation & Industrial Growth

Headline inflation bucks the softening trend

The headline inflation measured by the Wholesale Price Index (WPI) for June rose marginally to 4.9% (YoY vs. 4.7% in May) bucking the softening trend witnessed for the past few months. However, there was some good news on the core inflation front with it easing to 2.1% (YoY vs. 2.4% in May) led by some softening on the manufacturing inflation. Meanwhile, the June Consumer Price Index (CPI) also saw a hardening trend at 9.9% (YoY vs. 9.3% in May) on the back of high food prices.

IIP falls back on thecontraction path

May 2013 Index of Industrial Production (IIP) registered a 1.6% contraction (YoY vs. 2.3% growth Apr), as against a consensus expectation of marginal growth. Both manufacturing & mining continued to contract while the electricity segment posted some good growth.

Global Economic Scenario

Positive US macro data may reconfirm the QE withdrawal plan

The macro data readings across the developed economies supported the upbeat equity market sentiments there. The S&P 500 recorded an all-time high during the month of July, while the European stocks also gained on the back of the strong economic data releases. Better than expected US job data, PMI data for the US & Europe, reinstated the belief that the global economic recovery may be underway. The US Federal Reserve Chairman Ben Bernanke reiterated on a flexible and data dependent monetary policy with no pre-set timing for the QE tapering. However the sustained improvement in the macro data for the US economy may imply that the QE tapering plan could very well start from the end of this year, as stated earlier.

Going ForwardWith a depreciating Rupee and a precarious CAD position, the equity market may be headed for some challenging times in the near term. The measures from the Central Bank and the government will be closely watched in this connection and any more liquidity tightening actions may have an adverse impact on the overall investor sentiments. We may also be entering a phase where the incumbent government is readying itself for the approaching general elections and hence populist measures may reign over tough policy decisions at this juncture. The growth expectation for the current fiscal is also getting downgraded and this may catch up on the corporate earnings side too, impacting the investor confidence at large. On the contrary, the monsoon rainfall across the country has been above normal and this may support the rural demand. Also once the RBI is able to provide support to the stuttering Rupee they may refocus on growth concerns, now that the inflation is under control. The rate easing cycle will recommence once the currency situation is under control. We at HSBC, employ a bottom up stock selection process aimed at spotting profitable firms available at reasonable valuations. Subdued equity market environment such as this, provide us with enough investment opportunities fitting the bill. We urge investors to stay invested and look at periods of market correction as buying opportunities for the long term. It will be prudent to look at the Systematic Investment Plan (SIP) route to invest in equities as it will bring in discipline and also the principle of rupee cost averaging to the table, an effective way to tackle volatility.

Source: Bloomberg, for all data except where mentioned otherwise


3



9.5%

7.7%

7.2%

7.6%

7.7%

7.5%

7.6%

7.6%

7.5%

8.0%

8.1%

7.3%

7.2%

7.3%

7.3% 7.3% 5.7%

4.8% 4.7%

4.9%

3.0%4.0%5.0%6.0%7.0%8.0%9.0%

10.0%

Nov

/11

Dec

/11

Jan/

12

Feb/

12

Mar

/12

Apr

/12

May

/12

Jun/

12

Jul/1

2

Aug

/12

Sep

/12

Oct

/12

Nov

/12

Dec

/12

Jan/

13

Feb/

13

Mar

/13

Apr

/13

May

/13

Jun/

13

Wholesale Price Index Inflation (WPI)

WPI YoY growth (New series; base 2004-05)

6.0%

2.7% 1.0%

4.3%

-2.8% -1.3%

2.5% -2.0% -0.1%

2.0%

-0.7%

8.4%

-1.0%

-0.6%

2.5%

0.6%

3.5% 1.9%

-2.8% -5.0%

0.0%

5.0%

10.0%

Nov

/11

Dec

/11

Jan/

12

Feb/

12

Mar

/12

Apr

/12

May

/12

Jun/

12

Jul/1

2

Aug

/12

Sep

/12

Oct

/12

Nov

/12

Dec

/12

Jan/

13

Feb/

13

Mar

/13

Apr

/13

May

/13

Index of Industrial Production (IIP)

IIP YoY Growth (New Series; base 2004- 05)


4

Review: HSBC Progressive Themes FundCurrently focusing on the following themes; 1.Economic Reforms (39.3%) which includes Financial sector reform- 31.7% and Oil & Gas Sector deregulation sub theme- 7.6%2.Infrastructure (30.3%) which includes Power- 13.8%, Construction– 11.4% and Logistics- 5.2%. Well diversified exposure across sectors encompassing the above themes.

Review: HSBC Dynamic FundThe cash levels and sector allocation in the fund are likely to change depending on the market conditions and technical factors.

Review: HSBC MIP Regular and Savings PlansOur current exposure is 13.42% in HMIP Regular and 23.78%, in HMIP Savings. Currently it is more biased towards large caps than mid or small caps.

Review: HSBC Midcap Equity FundBeing overweight consumer discretionary and underweight healthcare, utilities helped performance while being overweight consumer staples, materials and underweight energy, financials, industrials hurt performance.

Sectors HSBC Equity Fund

HSBC India Opportunities

Fund

HSBCMidcap

Equity FundConsumer Discretionary = Consumer Staples Energy Financials Healthcare = = Industrials Information Technology =Materials Telecommunication = Utilities

Overweight Underweight = Neutral

Review: HSBC India Opportunities FundBeing overweight industrials, information technology & underweight utilities helped performance while being overweight materials, financials and underweight consumer discretionary, consumer staples, energy, telecommunication hurt performance.

Review: HSBC Equity FundBeing overweight information technology & underweight materials, industrials, utilities helped performance while being overweight energy, financials and underweight consumer staples hurt performance.

Debt

Market Assessment

Domestic bond markets witnessed sell off across the curve on the back of RBI measures to rein in volatility in the INR. The RBI announced a series of measures to restore the stability in the foreign exchange markets, which included further tightening of liquidity and resultant hardening in short term rates.

Economic Events and Data Impacting Debt Markets RBI Measures to restore stability in INR

First Quarter Review of Monetary Policy

In order to restore the stability in the foreign exchange markets in context to INR, RBI introduced the following measures on 15th July.• Increase Marginal Standing Facility (MSF) rateby 200 bps to 10.25%.• The overall allocation of funds under the LAF limited to 1.0% of the Net Demand and Time Liabilities (NDTL) of the banking system, reckoned as INR 750 billion for this purpose. Sale of government securities to the tune of INR 12,000 croresRBI announced further measures on 23rd July 2013, re enforcing the recent liquidity tightness stance in order to curb the volatility in INR. Measures announced were as follows: Overall limit for access to LAF for each individual bank is now set at 0.5 per cent of its own outstanding Net Demand and Time Liabilities (NDTL)Banks were allowed to maintain their daily average Cash Reserve Ratio (CRR) at a minimum of 70 per cent. From 27 July, 2013, banks are required to maintain a minimum daily CRR balance of 99 per.These measures effectively reduced the market liquidity available from the RBI (at the repo rate) to about INR 35,000 crores as compared to around INR 75,000 crores available earlier. It also reduced the flexibility for banks to average the CRR balances over the fortnight as banks were now required to maintain excess CRR on a daily basis. Thus, banks borrowing requirement over INR 35,000 crores is now available at 10.25% hence resulting in overall increase in the overnight rates in the system. In addition, the RBI has preferred to issue Cash Management Bills instead of conducting open market sale resulting in higher impact at the short end of the curve.RBI presented the first quarter review of monetary policy on 30th July 2013, wherein key rates; i.e. Repo and Cash reserve ratio were kept unchanged at 7.25% and 4.00% respectively.

Overall Assessment and Outlook Domestic economy has remained subdued with the Index of Industrial Production (IIP) at 0.1% in April - May 2013. Manufacturing Purchasing Managers Index (PMI) has shown some improvement, however the expansion seems to be anemic. Headline inflation, as measured by Wholesale Price Index (WPI), has edged up slightly to 4.9% in June 2013 on back of higher food inflation. Non-food manufacturing products inflation fell below 2% in June 2013. Credit conditions are expected to remain unchanged in Q2 FY2013-14, but some sectors like construction, infrastructure and commercial real estate may face further tightening.Current account deficit (CAD) moderated to 3.6% in Q4 of 2012-13 down from 6.5% in Q3 of 2012-13. This is however, much higher than a sustainable level of 2.5%In the last quarter, comments from US Federal Reserve regarding tapering of Quantitative Easing (QE) in the US, triggered outflows in portfolio investments. Several measures in forex, liquidity and gold imports segment were instituted to contain the foreign exchange market volatility.

Macro data releases continue to remain benign

Major risk to macroeconomic outlook is from external sectors as it is debatable if the market has factored in full impact of prospective tapering of QE. The investment climate remains weak and may result in subdued growth. It is hence, critical to ease supply constraints in the economy.Headline WPI inflation printed 4.86% YoY in June from 4.7% in May, primarily due to higher food prices. Core inflation moderated to 2.0% YoY from 2.4% on weaker demand whereas CPI inflation increased to 9.87% YoY in June from 9.30% in May. Industrial production contracted by 1.6% YoY in May, belying expectations of a rise, and against +1.9% in April (revised down from 2.3%).Manufacturing and Services PMI have also reported decline for the month of July 2013.

Market Activity

Yields witnessed hardening

Sovereign yields witnessed increased volatility through the month amidst sell off across the yield curve. Yields hardened over 75 bps at the duration segment of the curve on the back of tight liquidity conditions. Benchmark 10 year yields ended the month of July at 8.27% levels as against last month’s close of 7.46%.

Corporate curve remains inverted

Credit curve also witnessed similar hardening in yields across the yield curve. The yield curve mirrored the inversion in the sovereign curve. Credits assets remained slightly less volatile owing to lack of primary supply in this segment. Issuers would presumably resort to bank credit at current levels instead of taking the bond route.

Severe impact of RBI measures

Money market rates bore severe impact of RBI measures. Rates initially jumped by 200-300 bps across segments post the RBI announcements. However, these rates eased by 100 bps towards the end of the month on back of government spending.

Global Economic Scenario

Global economy

At the recently concluded FOMC meet, the Federal Reserve made very small changes to their statement, mostly in the discussion of the data outlook and risks that arguably are slightly dovish. They made no changes at all to the policy language for asset purchases or forward guidance on rates. Overall, we expect the Fed retaining optionality and data dependency into the September meeting.

Going Forward

RBI has kept foreign exchange management as its top priority. It has mentioned that it was fit case for easier rates, which had to be forfeited due to the need to address external sector concern. This underlines the dilemma for the central banker. On the announcement of calibrated withdrawal of liquidity measures currency has shown depreciation pressure. This would impose constraints on policy going forwards. We expect that the fundamental weakness in INR on account of high CAD and tepid flows will be countered by the focused resolve from RBI and GOI. Announcements pertaining to ‘structural measures to bring the CAD down to sustainable levels’ would lead to wide swings in INR in the near term.In the long run, we expect these measures would have further detrimental impact on the growth front. As RBI has not induced a permanent measure; i.e. rate hike, we expect the reversal of these measures would coincide with further monetary support to growth and hence could lead to more aggressive monetary easing. Albeit, in the short run, as the monetary emphasis has shifted from growth to external situations and stabilizing INR, we expect rates to remain under pressure, especially at the front end of the curve.We have reduced duration in most of our funds, and maintain combination of G- secs and corporate bonds exposure. Short end of the yield curve remains inverted and thereby creating opportunity to invest in shorter end of the curve. The pressure on the duration segment may marginally ease due to RBI’s policy statement stating openly the dilemma on policy. We may look to build some duration on triggers of foreign exchange bond issuance, removal of supply constraints.

Source: Bloomberg, for all data except where mentioned otherwise


5

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

Issuer Market Value(` in Lacs)

% to NetAssets

Auto Tata Motors 1,016.75 2.15%Maruti Suzuki India 862.10 1.82%Bajaj Auto 541.73 1.14%Banks ICICI Bank 2,954.41 6.24%HDFC Bank 2,256.08 4.76%Axis Bank 1,551.83 3.28%State Bank of India 939.62 1.98%Punjab National Bank 855.15 1.81%ING Vysya Bank 767.55 1.62%Yes Bank 648.00 1.37%CementGrasim Industries 1,058.72 2.24%Shree Cement 653.21 1.38%Consumer Non DurablesI T C 3,758.70 7.94%Colgate Palmolive (India) 825.54 1.74%Fertilisers Coromandel International 513.49 1.08%Finance HDFC 2,401.35 5.07%Power Finance Corporation 810.75 1.71%Media & EntertainmentSun TV Network 1,093.10 2.31%Minerals/Mining Coal India 844.65 1.78%Oil Oil & Natural Gas Corporation 2,325.60 4.91%Cairn India 1,475.75 3.12%Petroleum Products Reliance Industries 2,398.14 5.06%Pharmaceuticals Dr Reddy’s Laboratories 2,258.39 4.77%Sun Pharmaceutical Industries 791.42 1.67%Power Power Grid Corporation of India 505.50 1.07%Services Aditya Birla Nuvo 582.63 1.23%Software HCL Technologies 2,812.65 5.94%Infosys 2,672.69 5.64%Tata Consultancy Services 1,815.50 3.83%Tech Mahindra 1,620.45 3.42%Telecom - Services Bharti Airtel 1,412.45 2.98%Total 95.05%

HSBC Equity Fund (HEF) July 2013

6


% to NetAssets

CBLOs 1,944.90 4.11%Other Equity Investments 764.61 1.61%Net Current Assets -365.85 -0.77%Total Net Assets as on 31 July 2013 47,367.53 100.00%

Asset AllocationAuto 5.11%Banks 21.05%Cement 3.61%Consumer Non Durables 9.68%Fertilisers 1.08%Finance 6.78%Media & Entertainment 2.31%Minerals/Mining 1.78%Oil 8.03%Petroleum Products 5.06%Pharmaceuticals 6.44%Power 1.07%Services 1.23%Software 18.83%Telecom - Services 2.98%Other Equity Investments 1.61%Reverse Repos/CBLOs 4.11%Net Current Assets -0.77%Total Net Assets 100.00%

Dividend DeclarationRecord Date / period of

dividend declaredDividend (` per unit)

Non-InstitutionalDividend (` per unit)

InstitutionalNAV (`) per unit(cum dividend)

HSBC Equity Fund - Dividend28-May-10 1.50 1.50 26.691119-Nov-10 2.00 2.00 29.324422-Feb-13 2.50 2.50 26.1962HSBC Equity Fund - Dividend Direct Plan22-Feb-13 2.50 2.50 26.2505

Date of Allotment 10-Dec-02Benchmark S&P BSE 200NAV (Growth) per unit(as on 31.07.13)

` 98.3551

Fund Managers Tushar Pradhan & Neelotpal Sahai

SIP AvailableMinimumApplicationAmount

` 10,000` 1,000 p.m.(SIP)

Exit Load@ NilStatistical Ratios

Standard Deviation 0.86%R-Squared 0.9566Beta (Slope) 0.9134Sharpe Ratio -0.0372Total Expense Ratio as on July 31, 2013

Regular 2.49%$ Direct Plan 1.76%$ Portfolio Turnover 0.71

$ Excludes service tax on Investment Management fees of 0.17% of Total Net Assets.Statistical ratios disclosed as per daily returns of the last 3 years/since inception, whichever is later. @ Effective from March 1, 2013 for prospective investments. Risk free rate: 10 yr Gsec: 9.88% as on July 31, 2013.

HSBC Equity Fund (HEF) July 2013

7

Upon payment of dividend, the NAV per unit falls to the extent of payout and statutory levy, if any. Face value: `10 per unit.

This Product is suitable for investors who are seeking* :l To create wealth over long terml Investment in equity and equity related securitiesl High risk (Brown)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

An Open Ended Flexi-Cap Equity SchemeInvestment Objective: 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 & equity related securities. However it could move a significant portion of its assets towards fixed income securities if the fund manager becomes negative on equity markets.


% to NetAssets

Auto Eicher Motors 697.85 3.78%Tata Motors 581.00 3.14%Banks ICICI Bank 1,069.50 5.79%HDFC Bank 792.68 4.29%State Bank of India 453.07 2.45%Punjab National Bank 370.57 2.00%Yes Bank 243.00 1.31%Cement Shree Cements 587.89 3.18%Madras Cements 227.19 1.23%Construction ProjectsLarsen & Toubro 508.29 2.75%Consumer Non Durables I T C 1,366.80 7.39%Britannia Industries 384.51 2.08%Finance HDFC 840.47 4.55%CRISIL 532.35 2.88%Power Finance Corporation 342.68 1.85%LIC Housing Finance 228.73 1.24%Industrial ProductsSupreme Industries 535.69 2.90%Oil Oil & Natural Gas Corporation 526.17 2.85%Petroleum Products Reliance Industries 1,046.46 5.66%Pharmaceuticals Divi's Laboratories 468.35 2.53%Dr Reddy’s Laboratories 456.24 2.47%Glenmark Pharmaceuticals 374.79 2.03%Software Infosys 1,075.01 5.82%HCL Technologies 937.55 5.07%Tech Mahindra 747.78 4.05%Eclerx Services 595.88 3.22%Hexaware Technologies 232.70 1.26%Telecom - ServicesBharti Airtel 378.95 2.05%Textile ProductArvind 394.00 2.13%Total 91.95%

HSBC India Opportunities Fund (HIOF) July 2013

8


% to NetAssets

CBLOs 1,146.77 6.20%Other Equity Investments 441.85 2.39%Net Current Assets -100.79 -0.55%Total Net Assets as on 31 July 2013 18,483.96 100.00%

Asset AllocationAuto 6.92%Banks 15.85%Cement 4.41%Construction Project 2.75%Consumer Non Durables 9.47%Finance 10.52%Industrial Products 2.90%Oil 2.85%Petroleum Products 5.66%Pharmaceuticals 7.03%Software 19.42%Telecom - Services 2.05%Textile Products 2.13%Other Equity Investments 2.39%Reverse Repos/CBLOs 6.20%Net Current Assets -0.55%Total Net Assets 100.00%





HSBC India Opportunities Fund - Dividend11-Dec-09 1.00 1.00 16.901319-Nov-10 1.00 1.00 18.23134-Feb-13 1.50 1.50 17.7319HSBC India Opportunities Fund - Dividend Direct Plan4-Feb-13 1.50 1.50 17.7519

Date of Allotment 24-Feb-04Benchmark S&P BSE 500NAV (Growth) per unit(as on 31.07.13)

` 34.2778

Fund Manager Tushar Pradhan & Neelotpal Sahai

SIP AvailableMinimumApplication Amount

` 10,000` 1,000 p.m.(SIP)




$ Excludes service tax on Investment Management fees of 0.19% of Total Net Assets.Statistical ratios disclosed as per daily returns of the last 3 years/since inception, whichever is later. @ Effective from March 1, 2013 for prospective investments.Risk free rate: 10 yr Gsec: 9.88% as on July 31, 2013.

HSBC India Opportunities Fund (HIOF) July 2013

9


This Product is suitable for investors who are seeking* :l To create wealth over long terml Invests in equity and equity related securities across market capitalisationsl High risk (Brown)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

An Open Ended Diversified Equity SchemeInvestment Objective: 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 fixed income securities if the fund manager becomes negative on the Indian equity markets.


% to NetAssets

Auto Ancillaries Apollo Tyres 314.96 4.88%Balkrishna Industries 103.97 1.61%Banks The Jammu & Kashmir Bank 224.37 3.48%Dena Bank 196.26 3.04%Allahabad Bank 178.63 2.77%Development Credit Bank 159.39 2.47%State Bank of Bikaner and Jaipur 156.07 2.42%State Bank of Travancore 123.92 1.92%CementEverest Industries 177.49 2.75%HIL 174.60 2.71%Consumer Durables Bata (India) 337.02 5.22%Hitachi Home & Life Solutions (India) 205.35 3.18%Consumer Non DurablesGujarat Ambuja Exports 302.36 4.68%Zydus Wellness 237.71 3.68%Godfrey Phillips (India) 161.56 2.50%Venky’s (India) 144.77 2.24%McLeod Russel India 94.55 1.46%Industrial Capital GoodsBEML 90.95 1.41%Swelect Energy System 84.93 1.32%Commercial Engineers & Body Builders Co. 69.76 1.08%Industrial Products Diamond Power Infrastructure 110.90 1.72%FAG Bearings India 70.60 1.09%Minerals/Mining Gujarat Mineral Development Corporation 157.89 2.45%PesticidesPI Industries 335.90 5.20%United Phosphorous 332.38 5.15%Bayer Cropscience 119.80 1.86%PharmaceuticalsAlembic Pharmaceuticals 202.66 3.14%Unichem Laboratories 156.42 2.42%Aurobindo Pharma 113.43 1.76%PowerJSW Energy 122.60 1.90%Software Tech Mahindra 224.33 3.48%Polaris Financial Technology 148.66 2.30%Persistent Systems 114.33 1.77%Nucleus Software Exports 96.27 1.49%Textile - CottonVardhman Textiles 200.09 3.10%Textile ProductsSiyaram Silk Mills 78.26 1.21%Transportation Gateway Distriparks 100.07 1.55%Total 96.43%

HSBC Midcap Equity Fund (HMEF) July 2013

10


% to NetAssets

CBLOs 44.03 0.68%Other Equity Investments 190.28 2.95%Net Current Assets -3.61 -0.06%Total Net Assets as on 31 July 2013 6,453.90 100.00%

Asset AllocationAuto Ancillaries 6.49%Banks 16.09%Cement 5.46%Consumer Durables 8.40%Consumer Non Durables 14.58%Industrial Capital Goods 3.81%Industrial Products 2.81%Minerals/Mining 2.45%Pesticides 12.21%Pharmaceuticals 7.32%Power 1.90%Software 9.04%Textile Products 1.21%Textiles - Cotton 3.10%Transportation 1.55%Other Equity Investments 2.95%Reverse Repos/CBLOs 0.68%Net Current Assets -0.06%Total Net Assets 100.00%





HSBC Midcap Equity Fund - Dividend24-Mar-08 0.75 0.75 13.379711-Dec-09 1.00 1.00 13.892719-Nov-10 2.00 2.00 15.4864

Date of Allotment 19-May-05Benchmark S&P BSE MidcapNAV (Growth) per unit(as on 31.07.13)

` 14.2944

Fund Manager Dhiraj SachdevSIP AvailableMinimumApplicationAmount

` 10,000` 1,000 p.m.(SIP)




$ Excludes service tax on Investment Management fees of 0.20% of Total Net Assets.Statistical ratios disclosed as per daily returns of the last 3 years/since inception, whichever is later. @ Effective from March 1, 2013 for prospective investments.Risk free rate: 10 yr Gsec: 9.88% as on July 31, 2013.

HSBC Midcap Equity Fund (HMEF) July 2013

11


Our exposure to midcap stocks in HSBC Midcap Equity Fund (HMEF) is 94.8169%

This Product is suitable for investors who are seeking* :l To create wealth over long terml Invests in predominantly mid cap equity and equity related securitiesl High risk (Brown)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

An Open Ended Flexi-Theme Equity SchemeInvestment Objective: 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 benefit from India’s progress, reform process and economic development.


% to NetAssets

Auto Tata Motors DVR 210.11 2.30%Auto Ancillaries Apollo Tyres 664.25 7.26%Banks The Jammu & Kashmir Bank 729.00 7.97%ICICI Bank 454.53 4.97%Dena Bank 388.24 4.24%The Karnataka Bank 271.35 2.97%Indian Bank 213.84 2.34%Allahabad Bank 173.80 1.90%Union Bank of India 173.03 1.89%United Bank of India 119.62 1.31%CementEverest Industries 263.60 2.88%HIL 134.57 1.47%JK Cement 110.68 1.21%ConstructionIRB Infrastructure Developers 181.75 1.99%National Buildings Construction Corporation 100.26 1.10%Construction ProjectsGammon Infrastructure Projects 124.90 1.37%Consumer Non DurablesGujarat Ambuja Exports 169.20 1.85%Finance Rural Electrification Corporation 380.40 4.16%GasGujarat State Petronet 99.10 1.08%Industrial Capital GoodsBharat Heavy Electricals 154.34 1.69%BEML 98.74 1.08%Industrial Products FAG Bearings India 391.86 4.28%Diamond Power Infrastructure 135.00 1.48%Polyplex Corporation 120.81 1.32%Minerals/MiningGujarat Mineral Development Corporation 231.15 2.53%Petroleum Products Hindustan Petroleum Corporation 457.16 5.00%Indian Oil Corporation 137.69 1.51%Power JSW Energy 404.49 4.42%Reliance Infrastructure 298.81 3.27%Power Grid Corporation of India 141.54 1.55%ServicesAditya Birla Nuvo 495.23 5.41%Textile - Cotton Vardhman Textiles 285.05 3.12%Textile - Synthetic Bombay Dyeing & Manufacturing Company 154.56 1.69%TransportationGateway Distriparks 409.00 4.47%Total 97.05%

HSBC Progressive Themes Fund (HPTF) July 2013

12


% to NetAssets


Asset AllocationAuto 2.30%Auto Ancillaries 7.26%Banks 27.59%Cement 5.56%Construction 3.08%Construction Project 1.37%Consumer Non Durables 1.85%Finance 4.16%Gas 1.08%Industrial Capital Goods 2.77%Industrial Products 7.08%Minerals/Mining 2.53%Petroleum Products 6.50%Power 9.24%Services 5.41%Textiles - Cotton 3.12%Textiles - Synthetic 1.69%Transportation 4.47%Other Equity Investments 2.87%Reverse Repos/CBLOs 1.53%Net Current Assets -1.45%Total Net Assets 100.00%





HSBC Progressive Themes Dividend11-May-07 1.00 1.00 12.239026-May-08 1.00 1.00 13.7160

Date of Allotment 23-Feb-06Benchmark S&P BSE 200NAV (Growth) per unit(as on 31.07.13)

` 7.8775


` 10,000` 1,000 p.m.(SIP)





HSBC Progressive Themes Fund (HPTF) July 2013

13


This Product is suitable for investors who are seeking* :l To create wealth over long terml Invests in equity and equity related securities, primarily in themes that play an important role in India’s economic developmentl High risk (Brown)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

An Open Ended Equity Linked Savings Scheme (ELSS)Investment Objective: Aims to provide long term capital appreciation by investing in a diversified portfolio of equity & equity related instruments of companies across various sectors and industries, with no capitalisation bias. The Fund may also invest in fixed income securities.


% to NetAssets

Auto Maruti Suzuki India 520.35 3.23%Auto Ancillaries Amara Raja Batteries 517.21 3.21%MRF 435.91 2.70%Motherson Sumi Systems 353.36 2.19%Banks HDFC Bank 690.54 4.28%ICICI Bank 677.24 4.20%Karur Vysya Bank 391.65 2.43%State Bank of India 341.68 2.12%ING Vysya Bank 326.06 2.02%Yes Bank 317.52 1.97%Federal Bank 316.13 1.96%Indusland Bank 162.73 1.01%Cement Shree Cements 1,130.62 7.01%Madras Cements 280.63 1.74%Consumer DurablesHavells India 191.44 1.19%PC Jeweller 161.54 1.00%Consumer Non DurablesI T C 1,115.64 6.92%McLeod Russel India 538.07 3.34%Nestle India 307.02 1.90%Jyothy Laboratories 204.22 1.27%Fertilisers Coromandel International 292.38 1.81%Finance HDFC 836.47 5.19%LIC Housing Finance 375.19 2.33%GasPetronet LNG 300.95 1.87%Industrial Capital GoodsCrompton Greaves 342.69 2.13%Industrial ProductsSupreme Industries 640.59 3.97%OilOil & Natural Gas Corporation 514.54 3.19%Pharmaceuticals Ipca Laboratories 439.31 2.72%Divi's Laboratories 354.66 2.20%Lupin 344.10 2.13%Wockhardt 194.39 1.21%Software Tata Consultancy Services 691.71 4.29%Tech Mahindra 513.48 3.18%HCL Technologies 487.53 3.02%Telecom - Services Bharti Airtel 435.45 2.70%Total 97.64%

HSBC Tax Saver Equity Fund (HTSF) July 2013

14

Date of Allotment 05-Jan-07Benchmark S&P BSE 200NAV (Growth) per unit(as on 31.07.13)

` 14.9407

Fund Manager Aditya KhemaniSIP AvailableMinimumApplicationAmount

` 500(Lumpsum & SIP)






% to NetAssets


Asset AllocationAuto 3.23%Auto Ancillaries 8.10%Banks 19.99%Cement 8.75%Consumer Durables 2.19%Consumer Non Durables 13.43%Fertilisers 1.81%Finance 7.51%Gas 1.87%Industrial Capital Goods 2.13%Industrial Products 3.97%Oil 3.19%Pharmaceuticals 8.26%Software 10.50%Telecom - Services 2.70%Other Equity Investments 1.72%Reverse Repos/CBLOs 0.98%Net Current Assets -0.33%Total Net Assets 100.00%





HSBC Tax Saver Equity Dividend19-Feb-10 1.00 1.00 12.8713

HSBC Tax Saver Equity Fund (HTSF) July 2013

15


This Product is suitable for investors who are seeking* :l To create wealth over long terml Invests in equity and equity related securities with no market capitilastion biasl High risk (Brown)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

An Open Ended Equity SchemeInvestment Objective: To provide long-term capital growth from a diversified portfolio of equity and equity related instruments. The focus would be to invest in stocks of companies facing “out-of-ordinary” conditions.


% to NetAssets

Auto Bajaj Auto 119.95 2.67%Maruti Suzuki India 86.21 1.92%Auto Ancillaries Amara Raja Batteries 95.94 2.13%Motherson Sumi System 84.90 1.89%Bosch 65.28 1.45%Banks ICICI Bank 241.81 5.38%HDFC Bank 197.56 4.39%Bank of Baroda 151.63 3.37%Karur Vysya Bank 137.35 3.05%Federal Bank 76.92 1.71%The Jammu & Kashmir Bank 63.64 1.41%Allahabad Bank 51.44 1.14%CementGrasim Industries 144.25 3.21%Shree Cements 108.87 2.42%Madras Cements 47.88 1.06%Construction ProjectsLarsen & Toubro 123.90 2.75%Consumer Non DurablesI T C 351.95 7.82%McLeod Russel India 101.71 2.26%FertilisersCoromandel International 63.33 1.41%FinanceHDFC 178.34 3.96%LIC Housing Finance 49.71 1.11%Industrial Products Supreme Industries 102.78 2.28%Minerals/MiningNMDC 58.74 1.31%Non - Ferrous Metals Hindustan Zinc 137.84 3.06%Oil Oil & Natural Gas Corporation 181.69 4.04%Petroleum Products Reliance Industries 136.04 3.02%Pharmaceuticals Lupin 128.06 2.85%Divi's Laboratories 124.58 2.77%Torrent Pharmaceuticals 109.81 2.44%Software HCL Technologies 174.38 3.88%Tata Consultancy Services 173.38 3.85%Infosys 116.26 2.58%Mindtree 69.42 1.54%Tech Mahindra 64.18 1.43%Telecom - Services Bharti Airtel 106.80 2.37%Total 93.96%

HSBC Unique Opportunities Fund (HUOF) July 2013

16


% to NetAssets


Asset AllocationAuto 4.58%Auto Ancillaries 5.47%Banks 20.46%Cement 6.69%Construction Projects 2.75%Consumer Non Durables 10.09%Fertilisers 1.41%Finance 5.07%Industrial Products 2.28%Minerals/Mining 1.31%Non - Ferrous Metals 3.06%Oil 4.04%Petroleum Products 3.02%Pharmaceuticals 8.06%Software 13.29%Telecom - Services 2.37%Other Equity Investments 3.03%Reverse Repos/CBLOs 4.56%Net Current Assets -1.55%Total Net Assets 100.00%

Date of Allotment 21-Mar-07Benchmark S&P BSE 200NAV (Growth) per unit(as on 31.07.13)

` 10.1529

Fund Manager Gaurav Mehrotra & Amaresh Mishra


` 10,000` 1,000 p.m.(SIP)


Standard Deviation 0.86%R-Squared,m 0.9287Beta (Slope) 0.9034Sharpe Ratio -0.0488Total Expense Ratio as on July 31, 2013



HSBC Unique Opportunities Fund (HUOF) July 2013

17

This Product is suitable for investors who are seeking* :l To create wealth over long terml Invests in equity and equity related securities of companies facing “out-of-ordinary” conditionsl High risk (Brown)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

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


% to NetAssets

AutoTata Motors 232.40 2.14%

Maruti Suzuki India 212.21 1.95%

Mahindra & Mahindra 182.28 1.68%

Bajaj Auto 125.76 1.16%

Banks ICICI Bank 636.34 5.85%

HDFC Bank 506.09 4.66%

Axis Bank 310.37 2.86%

Punjab National Bank 171.03 1.57%

State Bank of India 170.84 1.57%

CementGrasim Industries 238.21 2.19%

Construction ProjectsLarsen & Toubro 406.63 3.74%

Consumer Non DurablesI T C 854.25 7.86%

Hindustan Unilever 281.77 2.59%

United Spirits 119.24 1.10%

Finance HDFC 528.30 4.86%

IDFC 219.00 2.01%

Minerals/Mining NMDC 342.65 3.15%

Non - Ferrous Metals Hindustan Zinc 152.48 1.40%

Oil Oil & Natural Gas Corporation 290.70 2.67%

Cairn India 177.09 1.63%

Petroleum Products Reliance Industries 654.04 6.02%

Pharmaceuticals Dr Reddy’s Laboratories 342.18 3.15%

Sun Pharmaceutical Industries 203.51 1.87%

Ipca Laboratories 140.05 1.29%

PowerPower Grid Corporation of India 303.30 2.79%

Services Aditya Birla Nuvo 186.44 1.72%

Software Infosys 623.63 5.74%

HCL Technologies 468.78 4.31%

Tata Consultancy Services 363.10 3.34%

Telecom - Services Bharti Airtel 258.38 2.38%

Total 89.25%

HSBC Dynamic Fund (HDF) July 2013

18


% to NetAssets


Asset AllocationAuto 6.92%Banks 16.51%Cement 2.19%Construction Projects 3.74%Consumer Non Durables 11.55%Finance 6.88%Minerals/Mining 3.15%Non - Ferrous Metals 1.40%Oil 4.30%Petroleum Products 6.02%Pharmaceuticals 6.31%Power 2.79%Services 1.72%Software 13.39%Telecom - Services 2.38%Other Equity Investments 4.78%Reverse Repos/CBLOs 8.01%Net Current Assets -2.04%Total Net Assets 100.00%

Date of Allotment 24-Sep-07Benchmark S&P BSE 200NAV (Growth) per unit(as on 31.07.13)

` 9.7209

Fund Manager Tushar Pradhan & Neelotpal Sahai(for Equity portion)Sanjay Shah (for Fixed Income portion)


` 10,000` 1,000 p.m.(SIP)





HSBC Dynamic Fund (HDF) July 2013

19

This Product is suitable for investors who are seeking* :l To create wealth over long terml Invests in equity and equity related securities and in debt instruments when view on equity markets is negativel High risk (Brown)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

Date of Allotment 17-Mar-08Benchmark MSCI Emerging

Markets IndexNAV (Growth) per unit(as on 31.07.13)

` 10.4244

Fund Manager Piyush Harlalka (Dedicated fund manager for overseas investments)


` 10,000` 1,000 p.m.(SIP)


Standard Deviation 1.54%R-Squared 0.282Beta (Slope) 1.146Sharpe Ratio 0.021Total Expense Ratio as on July 31, 2013

Regular 1.86%$ 2.50% (inclusive of underlying scheme’s expenses) Direct Plan 1.15%$ Portfolio Turnover 0.76


Asset AllocationOverseas Mutual Fund 96.21%Reverse Repos/CBLOs 2.28%Net Current Assets 1.51%Total Net Assets 100.00%


% to NetAssets

Overseas Mutual FundHSBC GIF Glob Emerg Mkts Eq S1 Dis 2,328.99 96.21%CBLOs 55.25 2.28%Net Current Assets 36.60 1.51%Total Net Assets as on 31 July 2013 2,420.83 100.00%

An Open Ended SchemeInvestment Objective: 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 domestic debt and money market instruments.

HSBC Emerging Markets Fund (HEMF) July 2013

20

This Product is suitable for investors who are seeking* :l To create wealth over long terml Investment in equity and equity related securities of Emerging economiesl High risk (Brown)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.


An Open Ended Equity SchemeInvestment Objective: To provide long term capital appreciation primarily from a diversified portfolio of equity and equity related instruments of small cap companies.


% to NetAssets

Auto Ancillaries Pricol 78.83 7.14%Majestic Auto 23.69 2.15%Balkrishna Industries 14.70 1.33%Banks State Bank of Travancore 66.17 5.99%State Bank of Bikaner and Jaipur 56.65 5.13%The Karnataka Bank 29.97 2.71%Dena Bank 16.07 1.46%Cement Orient Cement 70.67 6.40%Orient Paper & Industries 11.24 1.02%Chemicals India Glycols 40.88 3.70%Consumer Durables Hitachi Home & Life Solutions (India) 37.02 3.35%IFB Industries 36.78 3.33%Greenply Industries 20.81 1.89%Consumer Non DurablesGujarat Ambuja Exports 73.47 6.66%Globus Spirits 44.52 4.03%KRBL 40.36 3.66%Lakshmi Energy and Foods 30.95 2.80%FinanceRane Holdings 83.86 7.60%Industrial Capital GoodsIndo Tech Transformers 26.28 2.38%Sanghvi Movers 25.12 2.28%TIL 19.00 1.72%Industrial Products Ador Welding 18.11 1.64%PesticidesPI Industries 18.17 1.65%Software Nucleus Software Exports 103.84 9.41%Textile - Products SRF 18.70 1.69%Textile - Cotton RSWM 83.93 7.60%Total 98.72%

HSBC Small Cap Fund (HSCF) July 2013

21


% to NetAssets


Asset AllocationAuto Ancillaries 10.62%Banks 15.30%Cement 7.42%Chemicals 3.70%Consumer Durables 8.57%Consumer Non Durables 17.15%Finance 7.60%Industrial Capital Goods 6.38%Industrial Products 1.64%Pesticides 1.65%Software 9.41%Textile - Products 1.69%Textile - Cotton 7.60%Other Equity Investments 0.79%Reverse Repos/CBLOs 7.69%Net Current Assets -7.20%Total Net Assets 100.00%





HSBC Small Cap Fund - Dividend19-Nov-10 1.00 1.00 14.3053

Date of Allotment 24-Mar-08

Benchmark S&P BSE Small Cap Index

NAV (Growth) per unit(as on 31.07.13)

` 7.5323


` 10,000` 1,000 p.m.(SIP)




$ Excludes service tax on Investment Management fees of 0.20% of Total Net Assets.Statistical ratios disclosed as per returns of the last 3 years/since inception, whichever is later.@ Effective from March 1, 2013 for prospective investments.Risk free rate: 10 yr Gsec: 9.88% as on July 31, 2013.

HSBC Small Cap Fund (HSCF) July 2013

22


Our exposure to small cap stocks in HSBC Small Cap Fund (HSCF) is 99.5090%

This Product is suitable for investors who are seeking* :l To create wealth over long terml Invests in predominantly small cap equity and equity related securitiesl High risk (Brown)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.


Date of Allotment 06-May-11Benchmark MSCI Brazil

10/40 IndexNAV (Growth) per unit(as on 31.07.13)

` 8.6606

Fund Manager Piyush Harlalka (Dedicated fund manager for overseas investments)


` 10,000` 1,000 p.m.(SIP)



Regular 1.86%$ 2.50% (inclusive of underlying scheme’s expenses) Direct Plan 1.15%$ Portfolio Turnover 0.65


Asset AllocationOverseas Mutual Fund 97.25%Reverse Repos/CBLOs 1.55%Net Current Assets 1.20%Total Net Assets 100.00%


% to NetAssets

Overseas Mutual FundHSBC GIF BRAZIL EQUITY S3D 14,000.59 97.25%CBLOs 222.52 1.55%

Net Current Assets 172.68 1.20%

Total Net Assets as on 31 July 2013 14,395.79 100.00%

An Open-Ended Fund of Funds SchemeInvestment Objective: The primary investment objective of the Scheme is to provide long term capital appreciation by investing predominantly in units/shares of HSBC Global Investment 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 significant 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.

HSBC Brazil Fund (HBF) July 2013

23

This Product is suitable for investors who are seeking* :l To create wealth over long terml Invests in equity and equity related securities through feeder route in Brazilian marketsl High risk (Brown)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

Name of Scheme Fund Manager

HSBC Equity Fund Tushar Pradhan (from 29 September 2011) & Neelotpal Sahai (from 27 May 2013)

HSBC India Opportunities Fund Tushar Pradhan (from 29 September 2011) & Neelotpal Sahai (from 27 May 2013)

HSBC Midcap Equity Fund Dhiraj Sachdev (from 01 December 2009)

HSBC Progressive Themes Fund Dhiraj Sachdev (from 01 December 2009)

HSBC Tax Saver Equity Fund Aditya Khemani (from 24 February 2009)

HSBC Unique Opportunities Fund Gaurav Mehrotra and Amaresh Mishra (from 02 July 2012)

HSBC Dynamic Fund For Equity portion: Tushar Pradhan (from 29 September 2011) & Neelotpal Sahai (from 27 May 2013) & For Debt portion: Sanjay Shah (from 14 August 2009)

HSBC Emerging Markets Fund Piyush Harlalka (from 02 July 2012)

HSBC Small Cap Fund Dhiraj Sachdev (from 01 December 2009)

HSBC Brazil Fund Piyush Harlalka (from 02 July 2012)

Fund Manager’s ExperienceTushar Pradhan Chief Investment Officer MBA (USA), B. Com.

Experience: Over 17 years of experience in Fund Management

l HSBC Asset Management (India) Private Ltd Chief Investment Officer since June 2009 onwards l AIG Global Asset Management Company (India) Private Ltd Chief Investment Officer – Equities from December 2006 to June 2009 l HDFC Asset Management Company Private Ltd Senior Fund Manager from July 2000 to Dec. 2006 l HDFC Ltd Manager – Treasury from April 1995 to June 2000

Dhiraj Sachdev B.Com., ACA, Grad CWA, Diploma in Foreign Trade Management (DFTM)

Experience:Over 16 years experience in Equity Research and Fund Management. This involved analysing various sectors and companies and presenting investment ideas to fund man-agers in India and abroad.

l HSBC Asset Management (India) Private Ltd Senior Fund Manager from December 2009 to present l HSBC Asset Management (India) Private Ltd Head of Equity-Portfolio Management Services from October 2005 to November 2009 l ASK Raymond James Securities India Private Ltd Portfolio Manager from October 2003 to September 2005 l HDFC Bank Ltd Senior Manager Equities from November 1999 to September 2003 l DSQ Software Ltd Business Analyst from June 1999 to November 1999 Probity Research & Services Ltd (India Infoline Ltd) Research Analyst from November 1998 to May 1999 Ford Brothers Capital Services (P) Ltd Manager Research from July 1996 to Sept 1998

Fund Managers - Equity July 2013

24

l

Neelotpal Sahai B.Tech, PGDM (IIM Kolkata) Experience:Over 18 years of experience in Research and Fund Management. l HSBC Asset Management (India) Private Ltd Senior Fund Manager – Equities from April 2013 onwards. l IDFC Asset Management Company Ltd. Director from February 2006 to April 2013 l Motilal Oswal Securities Ltd Senior Research Analyst from March 2005 to January 2006 l Infosys Ltd Senior Project Manager from June 1999 to March 2005 l Vickers Ballas Securities Ltd Analyst from September 1998 to June 1999 l SBC Warburg Analyst from May 1997 to May 1998 l UTI Securities Ltd Equity Analyst from June 1995 to May 1997

Gaurav MehrotraPost Graduate Diploma in Business Management, Bachelor of EngineeringExperience: Over 6 years experience in research. HSBC Asset Management (India) Private Ltd Associate Vice president from September 2007 to present JPMorgan Services India Private Ltd Equity Research from August 2005 to September 2007 Tata Consultancy Services Ltd Business Analyst from June 2004 to July 2005 Aditya KhemaniB.Com. (Hons.), Post Graduate Diploma in Business ManagementExperience: Over 7 years experience in research. HSBC Asset Management (India) Private Ltd Assistant Fund Manager, Equities from February 2009 to present Associate Vice President - Investment Management from October 2007 to February 2009 SBI Funds Management India Private Ltd Senior Manager - Equity Research from March 2007 to September 2007 Prudential ICICI Asset Management Company India Private Ltd Assistant Manager - Equity Research from December 2005 to February 2007 Morgan Stanley Advantage Services India Private Ltd Research Associate from May 2005 to November 2005

Amaresh Mishra Post Graduate Diploma in Business Manager Management Bachelor of Engineering (Chemical) Experience: Over 7 years of experience in Equities & Sales l HSBC Asset Management (India) Private Ltd Assistant Fund Manager, from April 2012 till date l HSBC Asset Management (India) Private Ltd Associate Vice President - Investment Management from April 2008 to March 2012 l HSBC Asset Management (India) Private Ltd Associate Vice President - Equities from October 2007 to March 2008 l HSBC Asset Management (India) Private Ltd Associate Vice President - Sales and Distribution from March 2005 to September 2007 l Centre for Science and Environment Trainee Researcher from July 2001 to July 2002

Piyush Harlalka M.B.A, (Finance), C.A., C.S. Experience:Over 6 years of experience in Fund Management & Research l HSBC Asset Management (India) Private Ltd Vice President – Fixed Income from April 2012 till date l HSBC Asset Management (India) Private Ltd Associate Vice President-Fixed Income from October 2010 till March 2012 l HSBC Asset Management (India) Private Ltd Associate Vice President - Investment Management, PMS, from April 2008 to October 2010 l HSBC Asset Management (India) Private Ltd Research Analyst from July 2007 to March 2008 l Batlivala & Karanai Securities Pvt. Ltd., Research Analyst from April 2006 to June 2007

Fund Managers - Equity July 2013

25

l

l

l

l

l

l

l

Funds Managed by Tushar Pradhan & Neelotpal Sahai.

Comparative Performance of Equity Schemes July 2013

HSBC Equity Fund Date of Inception : 10 Dec 02Scheme Name & Benchmarks July 12 -

June 13July 11 - June 12

July 10 - June 11

Since Inception

HSBC Equity Fund - Growth 6.20% -7.72% 6.74% 24.52%S&P BSE 200 (Scheme Benchmark) 8.52% -7.63% 3.82% 18.57%CNX Nifty (Standard Benchmark) 10.70% -6.19% 7.54% 17.51%`10,000, if invested in HEF, would have become `10,620 `9,228 `10,674 `1,01,436

`10,000, if invested in S&P BSE 200, would have become `10,852 `9,237 `10,382 `60,442

`10,000, if invested in CNX Nifty, would have become `11,070 `9,381 `10,754 `54,993

HSBC India Opportunities Fund Date of Inception : 24 Feb 04Scheme Name & Benchmarks July 12 -


July 10 - June 11

Since Inception

HSBC India Opportunities Fund - Growth 3.10% -2.19% 8.56% 14.55%S&P BSE 500 (Scheme Benchmark) 6.98% -8.08% 3.22% 13.16%CNX Nifty (Standard Benchmark) 10.70% -6.19% 7.54% 13.28%`10,000, if invested in HIOF, would have become `10,310 `9,781 `10,856 `35,650



26

Data for the period July to June has been considered in all cases, except for ‘Since Inception’ returns. ‘Since Inception’ (%) returns are compounded annualised, other % returns are absolute. ‘Since inception’ returns are calculated on `10 invested at inception. Standard benchmark is prescribed by SEBI for long-term equity schemes and is used for comparison purposes. Returns on `10,000 are point-to-point returns for the specific time period, invested at the start of the period. The returns provided above have been rounded off and hence there may be minor differences between point-to-point returns vis-a-vis returns indicated above.

Past performance may or may not be sustained in the future. Refer note below.



HSBC Dynamic Fund Date of Inception : 24 Sep 07Scheme Name & Benchmarks July 12 -


July 10 - June 11

Since Inception

HSBC Dynamic Fund - Growth 2.87% -5.69% 5.98% -0.06%S&P BSE 200 (Scheme Benchmark) 8.52% -7.63% 3.82% 2.02%CNX Nifty (Standard Benchmark) 10.70% -6.19% 7.54% 2.98%`10,000, if invested in HDF, would have become `10,287 `9,431 `10,598 `9,966



Fund Managed by Tushar Pradhan & Neelotpal Sahai (for Equity portion)Sanjay Shah (for Fixed Income portion)


27


HSBC Brazil Fund Date Of Inception : 06 May 11Scheme Name & Benchmarks July 12 -


Since Inception

HSBC Brazil Fund - Growth -6.06% -10.27% -7.23%MSCI Brazil 10/40 Index (Scheme Benchmark) -14.18% -28.11% -18.96%CNX Nifty (Standard Benchmark) 10.70% -6.19% 2.41%`10,000, if invested in HBF, would have become `9,394 `8,973 `8,505

`10,000, if invested in MSCI Brazil 10/40 Index, would have become `8,582 `7,189 `6,355

`10,000, if invested in CNX Nifty, would have become `11,070 `9,381 `10,526


HSBC Emerging Markets Fund Date of Inception : 17 Mar 08Scheme Name & Benchmarks July 12 -


July 10 - June 11

Since Inception

HSBC Emerging Markets Fund - Growth 3.36% -5.63% 20.44% 0.07%MSCI Emerging Market Index (Scheme Benchmark) 3.28% -9.74% 14.89% 0.15%

CNX Nifty (Standard Benchmark) 10.70% -6.19% 7.54% 5.05%`10,000, if invested in HMEF, would have become `10,336 `9,437 `12,044 `10,038

`10,000, if invested in MSCI Emerging Market Index, would have become `10,328 `9,026 `11,489 `10,078



Funds Managed by - Piyush Harlalka.

HSBC Unique Opportunities Fund Date of Inception : 21 Mar 07Scheme Name & Benchmarks July 12 -


July 10 - June 11

Since Inception

HSBC Unique Opportunities Fund - Growth 3.00% -4.03% 3.99% 0.94%S&P BSE 200 (Scheme Benchmark) 8.52% -7.63% 3.82% 6.78%CNX Nifty (Standard Benchmark) 10.70% -6.19% 7.54% 7.25%`10,000, if invested in HUOF, would have become `10,300 `9,597 `10,399 `10,608




Fund Managed by Gaurav Mehrotra and Amaresh Mishra.

HSBC Tax Saver Equity Fund Date of Inception : 05 Jan 07Scheme Name & Benchmarks July 12 -


July 10 - June 11

Since Inception

HSBC Tax Saver Equity Fund - Growth 12.40% -1.04% 2.69% 7.52%S&P BSE 200 (Scheme Benchmark) 8.52% -7.63% 3.82% 5.29%CNX Nifty (Standard Benchmark) 10.70% -6.19% 7.54% 6.09%`10,000, if invested in HTSF, would have become `11,240 `9,896 `10,269 `16,012




Fund Managed by - Aditya Khemani.


28


HSBC Small Cap Fund Date of Inception : 24 Mar 08Scheme Name & Benchmarks July 12 -


July 10 - June 11

Since Inception

HSBC Small Cap Fund - Growth -2.78% -17.58% -11.27% -2.57%S&P BSE Small Cap (Scheme Benchmark) -14.81% -20.44% -10.18% -3.88%CNX Nifty (Standard Benchmark) 10.70% -6.19% 7.54% 4.60%`10,000, if invested in HSCF, would have become `9,722 `8,242 `8,873 `8,719

`10,000, if invested in S&P BSE Smallcap, would have become `8,519 `7,956 `8,982 `8,117



HSBC Progressive Themes Fund Date of Inception : 23 Feb 06Scheme Name & Benchmarks July 12 -


July 10 - June 11

Since Inception

HSBC Progressive Themes Fund - Growth -13.86% -8.34% -14.02% -1.13%S&P BSE 200 (Scheme Benchmark) 8.52% -7.63% 3.82% 8.46%CNX Nifty (Standard Benchmark) 10.70% -6.19% 7.54% 9.19%`10,000, if invested in HPTF, would have become `8,614 `9,166 `8,598 `9,201




Funds Managed by - Dhiraj Sachdev.

HSBC Midcap Equity Fund Date of Inception : 19 May 05Scheme Name & Benchmarks July 12 -


July 10 - June 11

Since Inception

HSBC Midcap Equity Fund - Growth -15.11% -8.10% -13.70% 5.51%S&P BSE Midcap (Scheme Benchmark) -3.97% -10.84% -3.75% 7.78%CNX Nifty (Standard Benchmark) 10.70% -6.19% 7.54% 14.19%`10,000, if invested in HMEF, would have become `8,489 `9,190 `8,630 `15,461

`10,000, if invested in S&P BSE Midcap, would have become `9,603 `8,916 `9,625 `18,380



An Open Ended Fund with Regular & Savings Plans.Monthly income is not assured and is subject to availability of distributable surplus.Investment Objective: 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.

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Money Market InstrumentsCertificate of DepositHDFC Bank 1,483.67 5.25% CARE A1+Corporate/PSU DebtCorporate Bonds / DebenturesShriram Transport Finance Company 1,798.39 6.37% CRISIL AABajaj Finance 1,477.49 5.23% [ICRA]AA+HDFC 1,163.26 4.12% CRISIL AAARural Electrification Corporation 1,154.14 4.09% CARE AAALIC Housing Finance 990.85 3.51% CRISIL AAAPower Finance Corporation 968.65 3.43% CRISIL AAAPower Grid Corporation of India 912.90 3.23% CRISIL AAAPower Finance Corporation 821.76 2.91% CRISIL AAANABARD 792.40 2.80% CRISIL AAAHDFC 493.44 1.75% CRISIL AAATata Sons 492.29 1.74% CRISIL AAAPower Finance Corporation 490.08 1.73% CRISIL AAALIC Housing Finance 482.09 1.71% CRISIL AAAPower Finance Corporation 434.37 1.54% CRISIL AAAShriram Transport Finance Company 299.22 1.06% CRISIL AANABARD 196.93 0.70% CRISIL AAANational Housing Bank 99.49 0.35% Fitch AAA (ind)Rural Electrification Corporation 90.65 0.32% CRISIL AAAEquitiesListed EquityShree Cements 674.90 2.39%HDFC 384.22 1.36%Amara Raja Batteries 371.13 1.31%ICICI Bank 365.89 1.30%ITC 350.24 1.24%Maruti Suzuki India 340.86 1.21%Tata Consultancy Services 298.20 1.06%HDFC Bank 267.25 0.95%Grasim Industries 238.21 0.84%MRF 237.91 0.84%McLeod Russel India 234.47 0.83%IPCA Laboratories 233.42 0.83%Motherson Sumi Systems 191.88 0.68%Supreme Industries 185.01 0.65%Karur Vysya Bank 177.08 0.63%Tech Mahindra 174.48 0.62% N.AOil & Natural Gas Corporation 159.89 0.57%Petronet LNG 156.16 0.55%Bharti Airtel 154.34 0.55%Divi's Laboratories 149.98 0.53%LIC Housing Finance 144.16 0.51%Hindustan Zinc 140.28 0.50%NMDC 136.08 0.48%Crompton Greaves 134.72 0.48%Havells India 133.86 0.47%Coromandel International 117.99 0.42%Orient Cement 94.05 0.33%Punjab National Bank 90.65 0.32%Asian Paints 88.83 0.31%Nestle India 82.05 0.29%PC Jeweller 69.12 0.24%Sanghvi Movers 61.89 0.22%The Federal Bank 43.40 0.15%Hindustan Dorr-Oliver 21.94 0.08%Orient Paper & Industries 14.96 0.05%

HSBC MIP - Savings Plan (HMIP-S) July 2013

29

Date of Allotment 24-Feb-04Benchmark CRISIL MIP

Blended IndexNAV (Growth) per unit(as on 31.07.13)

` 22.2312

Average Maturity of Portfolio

37.67 months

Modified Durationof Portfolio

27.33 months

Fund Manager Aditya Khemani(for Equity portion)Sanjay Shah &Ruchir Parekh(for Debt portion)

SIP AvailableMinimum Application AmountGrowth `10,000Quarterly Dividend `10,000Monthly Dividend `25,000SIP `1,000 p.m.Exit Load@ NilTotal Expense Ratio as on July 31, 2013

Regular 2.32%$ Direct Plan 1.79%$ $ Excludes service tax on Investment Management fees of 0.18% of Total Net Assets.@ Effective from March 1, 2013 for prospective investments.

Asset AllocationCorporate/ PSU Debt 47.58%Equity 23.78%Government Securities 10.36%Cash Equivalents 5.77%Money Market Instruments 5.25%Treasury Bill 4.84%Net Current Assets 2.41%Total Net Assets 100.00%

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Government Securities8.07% GOVT OF INDIA RED 03-07-2017 1,323.16 4.68% Sovereign8.12% GOVT OF INDIA RED 10-12-2020 727.88 2.58% Sovereign7.16% GOVT OF INDIA RED 20-05-2023 494.23 1.75% Sovereign8.10% TAMILNADU SDL RED 08-05-2023 318.88 1.13% Sovereign8.20% GOVT OF INDIA RED 24-09-2025 63.12 0.22% SovereignTreasury Bill364 DAYS TREASURY BILL RED 24-07-2014 1,368.49 4.84% SovereignZero Coupon BondsHDFC 283.55 1.00% CRISIL AAATotal 91.82%Cash EquivalentsCBLOs 1,628.92 5.77%Net Current Assets 681.74 2.41%Total Net Assets as on 31 July 2013 28,251.52 100.00%

Rating ProfileAAA 40.18%AA+/ AA-/ AA 12.65%Sovereign 15.21%Equity 23.78%Reverse Repo/CBLOs 5.77%Net Current Assets 2.41%Total Net Assets 100.00%

HSBC MIP - Savings Plan (HMIP-S) July 2013

30





HSBC MIP - Savings Plan - Monthly Dividend31-May-13 0.05065 0.04851 12.554028-Jun-13 0.05065 0.04851 12.279726-Jul-13 0.05065 0.04851 11.9430HSBC MIP - Savings Plan - Monthly Dividend - Direct Plan31-May-13 0.05065 0.04851 12.597628-Jun-13 0.05065 0.04851 12.327626-Jul-13 0.05065 0.04851 11.9947HSBC MIP - Savings Plan - Quarterly Dividend14-Dec-12 0.17618 0.15101 12.435515-Mar-13 0.17618 0.15101 12.380314-Jun-13 0.17144 0.16419 12.4732HSBC MIP - Savings Plan - Quarterly Dividend - Direct Plan14-Jun-13 0.17144 0.16419 12.6154


This Product is suitable for investors who are seeking* :l Regular Income over medium terml Investment in fixed income (debt and money market instruments) as well as equity and equity related securitiesl Medium risk (Yellow)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

An Open Ended Fund with Regular & Savings Plans. Monthly income is not assured and is subject to availability of distributable surplus.Investment Objective: 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.

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Money Market InstrumentsCertificate of DepositHDFC Bank 989.12 5.58% CARE A1+Corporate/PSU DebtCorporate Bonds / DebenturesBajaj Finance 985.00 5.56% [ICRA]AA+Power Grid Corporation of India 912.90 5.15% CRISIL AAALIC Housing Finance 792.68 4.47% CRISIL AAANABARD 787.72 4.45% CRISIL AAAHDFC 775.51 4.38% CRISIL AAARural Electrification Corporation 769.42 4.34% CARE AAAShriram Transport Finance Company 699.37 3.95% CRISIL AAPower Finance Corporation 678.05 3.83% CRISIL AAATata Sons 492.29 2.78% CRISIL AAAPower Finance Corporation 490.08 2.77% CRISIL AAALIC Housing Finance 482.09 2.72% CRISIL AAAPower Finance Corporation 386.71 2.18% CRISIL AAAPower Finance Corporation 289.58 1.63% CRISIL AAANational Housing Bank 198.99 1.12% Fitch AAA (ind)NABARD 198.10 1.12% CRISIL AAAEquitiesListed EquityITC 189.64 1.07%Shree Cements 154.81 0.87%Maruti Suzuki India 146.78 0.83%ICICI Bank 128.63 0.73%Tata Consultancy Services 122.55 0.69%HDFC 120.07 0.68%Amara Raja Batteries 110.61 0.62%HDFC Bank 105.31 0.59%Supreme Industries 96.31 0.54%Bharti Airtel 84.75 0.48%McLeod Russel India 79.07 0.45%MRF 77.98 0.44%IPCA Laboratories 73.36 0.41%Tech Mahindra 71.04 0.40%Petronet LNG 68.75 0.39% N.A.Crompton Greaves 63.15 0.36%Motherson Sumi Systems 61.99 0.35%Grasim Industries 55.58 0.31%Karur Vysya Bank 54.97 0.31%Yes Bank 53.46 0.30%Hindustan Zinc 50.83 0.29%Divi's Laboratories 50.00 0.28%LIC Housing Finance 49.71 0.28%Oil & Natural Gas Corporation 49.42 0.28%Havells India 42.59 0.24%Asian Paints 36.55 0.21%NMDC 36.22 0.20%Nestle India 33.35 0.19%The Federal Bank 29.30 0.17%Punjab National Bank 25.65 0.14%Orient Cement 23.79 0.13%PC Jeweller 14.71 0.08%Hindustan Dorr-Oliver 6.58 0.04%Sanghvi Movers 5.68 0.03%Orient Paper & Industries 3.78 0.02%

HSBC MIP - Regular Plan (HMIP-R) July 2013

31

Date of Allotment 24-Feb-04Benchmark CRISIL MIP

Blended IndexNAV (Growth) per unit(as on 31.07.13)

` 19.5935


39.57 months


28.82 months

Fund Manager Aditya Khemani(for Equity portion)Sanjay Shah &Ruchir Parekh(for Debt portion)

SIP AvailableMinimum Application AmountGrowth `10,000Quarterly Dividend `10,000Monthly Dividend `25,000SIP `1,000 p.m.Exit Load@ NilTotal Expense Ratio as on July 31, 2013

Regular 2.39%$ Direct Plan 1.85%$ $ Excludes service tax on Investment Management fees of 0.19% of Total Net Assets.@ Effective from March 1, 2013 for prospective investments.

Asset AllocationCorporate/ PSU Debt 53.65%Equity 13.42%Government Securities 11.00%Cash Equivalents 9.06%Money Market Instruments 5.58%Treasury Bill 5.15%Net Current Assets 2.13%Total Net Assets 100.00%

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Government Securities8.07% GOVT OF INDIA RED 03-07-2017 976.50 5.51% Sovereign8.12% GOVT OF INDIA RED 10-12-2020 378.50 2.14% Sovereign7.16% GOVT OF INDIA RED 20-05-2023 340.36 1.92% Sovereign8.10% TAMILNADU SDL RED 08-05-2023 225.09 1.27% Sovereign8.20% GOVT OF INDIA RED 24-09-2025 29.13 0.16% SovereignTreasury Bill364 DAYS TREASURY BILL RED 24-07-2014 912.33 5.15% SovereignZero Coupon BondsHDFC 567.09 3.20% CRISIL AAATotal 88.80%Cash EquivalentsCBLOs 1,605.73 9.06%Net Current Assets 377.89 2.13%Total Net Assets as on 31 July 2013 17,717.21 100.00%

Rating ProfileAAA 49.73%AA+/ AA-/ AA 9.51%Sovereign 16.15%Equity 13.42%Reverse Repo/CBLOs 9.06%Net Current Assets 2.13%Total Net Assets 100.00%

HSBC MIP - Regular Plan (HMIP-R) July 2013

32





HSBC MIP - Regular Plan - Monthly Dividend31-May-13 0.05065 0.04851 11.560528-Jun-13 0.05065 0.04851 11.325826-Jul-13 0.05065 0.04851 11.0182HSBC MIP - Regular Plan - Quarterly Dividend14-Dec-12 0.17618 0.15101 11.664815-Mar-13 0.17618 0.15101 11.688314-Jun-13 0.17144 0.16419 11.7848


This Product is suitable for investors who are seeking* :l Regular Income over medium terml Investment in fixed income (debt and money market instruments) as well as equity and equity related securitiesl Medium risk (Yellow)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

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

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Securitised DebtInvestments - Asset Back Security

India MBS 2002 Series I 24.97 0.20% CRISIL AAA (SO)

Money Market InstrumentsCertificate of DepositKotak Mahindra Bank 499.09 4.05% CRISIL A1+Corporation Bank 495.02 4.02% CRISIL A1+Corporate/PSU DebtCorporate Bonds / DebenturesIndian Railway Finance Corporation 1,094.57 8.89% CRISIL AAAState Bank of India 685.55 5.57% CRISIL AAARural Electrification Corporation 625.16 5.08% CARE AAAHDFC 484.69 3.94% CRISIL AAAHDFC 473.18 3.84% CRISIL AAARural Electrification Corporation 440.73 3.58% CRISIL AAAPower Grid Corporation of India 432.43 3.51% CRISIL AAAPower Finance Corporation 290.59 2.36% CRISIL AAAShriram Transport Finance Company 199.82 1.62% CRISIL AALIC Housing Finance 198.17 1.61% CRISIL AAABajaj Finance 197.67 1.61% [ICRA]AA+Power Finance Corporation 193.36 1.57% CRISIL AAAPower Finance Corporation 193.05 1.57% CRISIL AAARural Electrification Corporation 135.98 1.10% CRISIL AAANABARD 99.05 0.80% CRISIL AAAGovernment Securities8.20% GOVT OF INDIA RED 24-09-2025 1,461.36 11.87% Sovereign8.12% GOVT OF INDIA RED 10-12-2020 1,324.73 10.76% Sovereign7.16% GOVT OF INDIA RED 20-05-2023 526.86 4.28% Sovereign8.15% GOVT OF INDIA RED 11-06-2022 483.40 3.93% Sovereign8.07% GOVT OF INDIA RED 03-07-2017 258.77 2.10% Sovereign8.10% TAMILNADU SDL RED 08-05-2023 159.44 1.30% Sovereign8.25% ANDHRA PRADESH SDL RED 25-04-2023 74.38 0.60% Sovereign

5.59% GOVT OF INDIA RED 04-06-2016 0.37 0.00% SovereignTotal 89.78%Cash EquivalentsCBLOs 989.29 8.04%Net Current Assets 269.49 2.19%Total Net Assets as on 31 July 2013 12,311.17 100.00%

HSBC Income Fund - Investment Plan (HIF-IP) July 2013

33

Date of Allotment 10-Dec-02Benchmark CRISIL Composite

Bond Fund IndexNAV (Growth) per unit(as on 31.07.13)

` 20.1898


71.71 months


47.67 months

Yield To Maturity* 9.57%Fund Manager Ruchir Parekh &

Sanjay ShahSIP AvailableMinimumApplicationAmount

` 10,000` 1,000 p.m.(SIP)

Exit Load@ NilTotal Expense Ratio as on July 31, 2013 Regular 1.85%$

Direct Plan 1.10%$

$ Excludes service tax on Investment Management fees of 0.12% of Total Net Assets.@ Effective from March 1, 2013 for prospective investments.* Based on invested Amount

Asset AllocationCorporate / PSU Debt 46.66%Government Securities 34.84%Money Market Instruments 8.07%Cash Equivalents 8.04%Net Current Assets 2.19%Securitised Debt 0.20%





HSBC Income Fund - Investment Plan - Regular Option - Quarterly Dividend14-Dec-12 0.22023 0.18876 11.453315-Mar-13 0.22023 0.18876 11.610014-Jun-13 0.19482 0.18658 11.8018HSBC Income Fund - Investment Plan - Institutional Option - Quarterly Dividend12-Jun-09 0.11387 0.10598 11.029411-Sep-09 0.11387 0.10598 10.996011-Dec-09 0.11387 0.10598 11.0973

Rating ProfileAAA 51.71%AA+/ AA-/ AA 3.23%Sovereign 34.84%Reverse Repos/ CBLOs 8.04%Net Current Assets 2.19%

HSBC Income Fund - Investment Plan (HIF-IP) July 2013

34


This Product is suitable for investors who are seeking* :l Regular Income over long terml Investment in diversified portfolio of fixed income securitiesl Low risk (Blue)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

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

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Money Market InstrumentsCertificate of DepositState Bank of Patiala 2,482.83 2.13% [ICRA]A1+State Bank of Hyderabad 2,474.33 2.13% [ICRA]A1+State Bank of Patiala 2,413.89 2.07% [ICRA]A1+Punjab National Bank 2,405.21 2.07% CARE A1+Corporation Bank 2,404.54 2.07% CRISIL A1+Central Bank of India 2,400.10 2.06% CARE A1+State Bank of Mysore 2,390.23 2.05% [ICRA]A1+Andhra Bank 2,352.60 2.02% CARE A1+UCO Bank 2,350.56 2.02% CRISIL A1+IDBI Bank 2,344.22 2.01% CRISIL A1+Punjab & Sind Bank 2,307.03 1.98% [ICRA]A1+United Bank of India 2,300.81 1.98% CARE A1+Bank of Maharashtra 1,977.37 1.70% CRISIL A1+Oriental Bank of Commerce 1,924.17 1.65% CRISIL A1+Central Bank of India 1,694.79 1.46% CARE A1+Andhra Bank 1,645.49 1.41% CARE A1+Allahabad Bank 998.73 0.86% [ICRA]A1+IndusInd Bank 995.16 0.85% CRISIL A1+Kotak Mahindra Bank 923.17 0.79% CRISIL A1+Oriental Bank of Commerce 425.96 0.37% CRISIL A1+Syndicate Bank 98.76 0.08% CARE A1+ICICI Bank 74.81 0.06% [ICRA]A1+Yes Bank 65.46 0.06% [ICRA]A1+Commercial PaperJM Financial Products 787.38 0.68% CRISIL A1+Kotak Mahindra Prime 260.26 0.22% CRISIL A1+Corporate/PSU Debt

Corporate Bonds / DebenturesRural Electrification Corporation 5,410.59 4.65% CRISIL AAARural Electrification Corporation 4,520.37 3.88% CARE AAAPower Finance Corporation 3,920.66 3.37% CRISIL AAALIC Housing Finance 3,856.73 3.31% CRISIL AAAPower Finance Corporation 3,390.27 2.91% CRISIL AAAShriram Transport Finance Company 2,942.34 2.53% CRISIL AAShriram Transport Finance Company 2,939.84 2.52% CRISIL AALIC Housing Finance 2,772.96 2.38% CRISIL AAABajaj Finance 2,470.83 2.12% [ICRA]AA+HDFC 2,467.20 2.12% CRISIL AAAHDFC 2,465.04 2.12% CRISIL AAAPower Finance Corporation 2,464.55 2.12% CRISIL AAABajaj Finance 2,462.49 2.11% [ICRA]AA+Tata Sons 2,461.44 2.11% CRISIL AAAHDFC 2,455.16 2.11% CRISIL AAAHDFC 2,452.40 2.11% CRISIL AAARural Electrification Corporation 2,448.48 2.10% CRISIL AAAExport Import Bank of India 2,411.52 2.07% CRISIL AAANational Housing Bank 2,400.67 2.06% CRISIL AAAShriram Transport Finance Company 2,194.29 1.88% CRISIL AAShriram Transport Finance Company 1,998.21 1.72% CRISIL AAExport Import Bank of India 1,480.87 1.27% CRISIL AAAPower Grid Corporation of India 1,442.97 1.24% CRISIL AAAHDFC 969.39 0.83% CRISIL AAAPower Grid Corporation of India 969.02 0.83% CRISIL AAA

HSBC Income Fund - Short Term Plan (HIF-STP) July 2013

35

Date of Allotment 10-Dec-02Benchmark CRISIL Short Term


` 19.7161


21.83 months


17.06 months



` 10,000` 1,000 p.m.(SIP)

Exit Load@ Nil

Total Expense Ratio as on July 31, 2013 Regular 1.25%$

Institutional # 0.70%$

Institutional Plus # 0.60%$

Direct Plan 0.50%$

$ Excludes service tax on Investment Management fees of 0.05% of Total Net Assets.

@ Effective from March 1, 2013 for prospective investments.* Based on invested Amount# Plan(s) discontinued from accepting subscriptions w.e.f. October 01, 2012

Asset AllocationCorporate / PSU Debt 60.14%Money Market Instruments 34.78%Cash Equivalents 2.01%Net Current Assets 3.07%

Rating ProfileAAA 80.38%AA+/ AA-/ AA 14.53%Reverse Repos/ CBLOs 2.01%Net Current Assets 3.07%





HSBC Income Fund - Short Term Plan - Regular Option - Monthly Dividend26-Apr-13 0.06031 0.05138 11.116231-May-13 0.06633 0.06352 11.170828-Jun-13 0.05067 0.04853 11.0969HSBC Income Fund - Short Term Plan - Monthly Dividend - Direct Plan28-Jun-13 0.05566 0.05331 11.1037HSBC Income Fund - Short Term Plan - Institutional Option - Monthly Dividend28-Dec-12 0.06057 0.05192 10.615124-Jan-13 0.06312 0.05410 10.635922-Feb-13 0.06114 0.05240 10.5969HSBC Income Fund - Short Term Plan - Institutional Plus Option - Monthly Dividend30-Dec-11 0.08478 0.07266 10.120027-Jan-12 0.05533 0.04742 10.086624-Feb-12 0.05663 0.04854 10.0881

HSBC Income Fund - Short Term Plan (HIF-STP) July 2013

36

Power Finance Corporation 956.71 0.82% CRISIL AAANational Housing Bank 696.45 0.60% Fitch AAA (ind)Shriram Transport Finance Company 492.10 0.42% CRISIL AATata Capital Financial Services 305.31 0.26% CRISIL AA+Export Import Bank of India 118.32 0.10% CRISIL AAAZero Coupon BondsTata Capital Financial Services 1,115.83 0.96% [ICRA]AA+HDFC 567.09 0.49% CRISIL AAATotal 94.92%Cash EquivalentsCBLOs 2,346.14 2.01%Net Current Assets 3,572.55 3.07%Total Net Assets as on 31 July 2013 1,16,436.65 100.00%


This Product is suitable for investors who are seeking* :l Regular Income over Medium terml Investment in diversified portfolio of fixed income securitiesl Low risk (Blue)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

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

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Money Market InstrumentsCertificate of DepositSyndicate Bank 2,370.19 14.34% CARE A1+State Bank of Hyderabad 2,087.53 12.63% [ICRA]A1+United Bank of India 1,997.64 12.09% CARE A1+Indian Overseas Bank 1,978.53 11.97% CRISIL A1+IndusIand Bank 1,492.75 9.03% CRISIL A1+Commercial PaperGruh Finance 1,996.66 12.08% CRISIL A1+Tata Motors Finance 1,991.77 12.05% [ICRA]A1+JM Financial Products 1,181.07 7.15% CRISIL A1+Kotak Mahindra Prime 599.17 3.63% CRISIL A1+Total 94.99%Cash EquivalentsCBLOs 820.86 4.97%Net Current Assets 7.36 0.04%Total Net Assets as on 31 July 2013 16,523.54 100.00%

HSBC Floating Rate Fund - Long Term Plan (HFRF-LTP)

July 2013

37

Date of Allotment 16-Nov-04Benchmark CRISIL Liquid Fund

IndexNAV (Growth) per unit(as on 31.07.13)

` 18.8011


0.69 months


0.62 months

Yield To Maturity* 11.65%Fund Manager Sanjay Shah &

Ruchir ParekhSIP AvailableMinimumApplicationAmount

` 10,000` 1,000 p.m.(SIP)

Sub OptionsGrowth, Daily Dividend, Reinvestment Weekly Dividend, Reinvestment, Monthly Dividend (Payout & Reinvestment)Exit Load@ Nil

Total Expense Ratio as on July 31, 2013 Regular # 1.30%$ Institutional 0.75%$

Direct Plan 0.20%$ $ Excludes service tax on Investment Management fees of 0.01% of Total Net Assets.@ Effective from March 1, 2013 for prospective investments.* Based on invested Amount# Plan(s) discontinued from accepting subscriptions w.e.f. October 01, 2012

Asset AllocationMoney Market Instruments 94.99%Cash Equivalents 4.97%Net Current Assets 0.04%





HSBC Floating Rate Fund - Long Term Plan - Regular Option - Monthly Dividend31-May-13 0.05262 0.05040 10.067528-Jun-13 0.04134 0.03959 10.053126-Jul-13 0.02301 0.02203 10.0295HSBC Floating Rate Fund - Long Term Plan - Monthly Dividend - Direct Plan26-Jul-13 0.03000 0.02873 10.1726HSBC Floating Rate Fund - Long Term Plan - Institutional Option - Monthly Dividend28-Dec-12 0.05668 0.04858 10.198224-Jan-13 0.05438 0.04661 10.196122-Feb-13 0.04970 0.04260 10.1876

Rating ProfileAAA 94.99%Reverse Repos/ CBLOs 4.97%Net Current Assets 0.04%

HSBC Floating Rate Fund - Long Term Plan (HFRF-LTP)

July 2013

38


This Product is suitable for investors who are seeking* :l Liquidity over short terml Investment in floating rate and fixed rate Debt and Money Market Instrumentsl Low risk (Blue)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.


An Open Ended Liquid SchemeInvestment Objective: 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.

IssuerMarketValue

(` in Lacs)

% toNet

AssetsRating

Money Market InstrumentsCertificate of DepositIndusInd Bank 4,998.42 3.99% CRISIL A1+Axis Bank 4,993.58 3.99% CRISIL A1+Oriental Bank of Commerce 4,981.21 3.98% CRISIL A1+Allahabad Bank 4,976.33 3.97% [ICRA]A1+Kotak Mahindra Bank 4,975.92 3.97% CRISIL A1+United Bank of India 4,971.62 3.97% CRISIL A1+IDBI Bank 4,966.92 3.97% CRISIL A1+Bank of Baroda 4,959.46 3.96% [ICRA]A1+Vijaya Bank 4,954.44 3.96% CARE A1+Punjab National Bank 4,940.46 3.95% CARE A1+State Bank of Patiala 4,937.91 3.94% CARE A1+ICICI Bank 2,989.48 2.39% [ICRA]A1+State Bank of Hyderabad 2,882.78 2.30% [ICRA]A1+Commercial PaperTata Motors Finance 4,974.00 3.97% [ICRA]A1+SREI Equipment Finance Private 4,972.69 3.97% [ICRA]A1+Reliance Capital 4,966.86 3.97% CRISIL A1+HDFC 4,963.14 3.96% [ICRA]A1+Kotak Mahindra Prime 4,393.95 3.51% CRISIL A1+L&T Finance 2,499.14 2.00% CARE A1+JM Financial Products 2,499.11 2.00% CRISIL A1+Piramal Enterprises 2,494.15 1.99% [ICRA]A1+Mahindra & Mahindra Financial Serv 2,481.20 1.98% CRISIL A1+JM Financial Products 2,480.61 1.98% CRISIL A1+Aditya Birla Finance 2,472.32 1.97% [ICRA]A1+L&T Finance 2,471.58 1.97% CARE A1+Total 81.62%Cash EquivalentsCBLOs 23,026.58 18.39%Net Current Assets -8.62 -0.01%Total Net Assets as on 31 July 2013 1,25,215.26 100.00%

HSBC Cash Fund (HCF) July 2013

39

Date of Allotment 04-Dec-02Benchmark CRISIL Liquid Fund


` 1200.6394


0.53 months


0.47 months



` 10,000` 1,000 p.m.(SIP)

Sub OptionsGrowth, Daily Dividend, Reinvestment Weekly Dividend, Reinvestment, Monthly Dividend (Payout & Reinvestment) Exit Load@ Nil

Total Expense Ratio as on July 31, 2013 Regular # 1.00%$ Institutional # 0.35%$

Institutional Plus 0.03%$

Direct Plan 0.02%$

@ Effective from March 1, 2013 for prospective investments.* Based on invested Amount# Plan(s) discontinued from accepting subscriptions w.e.f. October 01, 2012 $ Currently there is no Service Tax levied due to nil Investment Management Fees being charged.





HSBC Cash Fund - Institutional Option - Monthly Dividend31-May-13 6.07392 5.81712 1007.850928-Jun-13 4.80460 4.60146 1006.222026-Jul-13 3.45009 3.30423 1004.4838HSBC Cash Fund - Monthly Dividend - Direct Plan28-Jun-13 4.80945 4.60611 1006.1717HSBC Cash Fund - Institutional Plus Option - Monthly Dividend26-Aug-11 0.04886 0.04686 10.138329-Sep-11 0.05876 0.05636 10.150928-Oct-11 0.05244 0.05030 10.1428

Asset AllocationMoney Market Instruments 81.62%Cash Equivalents 18.39%Net Current Assets -0.01%

Rating ProfileAAA 81.62%Reverse Repos/ CBLOs 18.39%Net Current Assets -0.01%

HSBC Cash Fund (HCF) July 2013

40


*** Service tax on AMC fees is charged in addition to the above stated TERs .

HSBC Cash Fund

01 July 2013 to 15 July 2013***

16 July 2013 to 31 July 2013***

Average for the Month

Normal (erstwhile insti-plus)

0.03 0.03 0.03

Direct 0.02 0.02 0.02

This Product is suitable for investors who are seeking* :l Overnight Liquidity over short terml Invests in Money Market Instrumentsl Low risk (Blue)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.


Date of Allotment 05-Dec-03Benchmark I-Sec Composite


` 15.2321


57.51 months


38.90 months

Yield To Maturity* 9.30%Fund Manager Sanjay ShahSIP AvailableMinimum ` 10,000Application ` 1,000 p.m.(SIP)AmountExit Load@ Nil

Total Expense Ratio as on July 31, 2013 Regular 1.00%$ Direct Plan 0.50%$ $ Excludes service tax on Investment Management fees of 0.06% of Total Net Assets.@ Effective from March 1, 2013 for prospective investments.* Based on invested Amount

An Open Ended Gilt SchemeInvestment Objective: Aims to generate reasonable returns through investments in Government Securities of various maturities. The AMC’s view of interest rate trends and the nature of the plans will be reflected in the maturities of securities in which the Plans are invested.

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Government Securities8.12% GOVT OF INDIA RED 10-12-2020 67.94 23.68% Sovereign8.10% TAMILNADU SDL RED 08-05-2023 28.14 9.81% Sovereign7.16% GOVT OF INDIA RED 20-05-2023 27.98 9.75% Sovereign8.20% GOVT OF INDIA RED 24-09-2025 14.57 5.08% Sovereign8.07% GOVT OF INDIA RED 03-07-2017 9.77 3.40% Sovereign8.25% ANDHRA PRADESH SDL RED 25-04-2023 9.30 3.24% Sovereign

Total 54.96%Cash EquivalentsCBLOs 125.40 43.71%Net Current Assets 3.84 1.34%Total Net Assets as on 31 July 2013 286.91 100.00%





HSBC Gilt Fund - 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

Asset AllocationGovernment Securities 54.96%Cash Equivalents 43.71%Net Current Assets 1.34%

Rating ProfileSovereign 54.96%Reverse Repos/ CBLOs 43.71%Net Current Assets 1.34%

HSBC Gilt Fund (HGF) July 2013

41


This Product is suitable for investors who are seeking* :l Regular Income over long terml Investment in Government Securitiesl Low risk (Blue)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.


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

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Money Market InstrumentsCertificate of DepositAndhra Bank 705.21 11.88% CARE A1+Central Bank of India 659.09 11.10% CARE A1+United Bank of India 499.41 8.41% CARE A1+Indian Overseas Bank 494.63 8.33% CRISIL A1+Oriental Bank of Commerce 481.04 8.10% CRISIL A1+Bank of Maharashtra 376.64 6.34% CRISIL A1+State Bank of Mysore 99.59 1.68% [ICRA]A1+Commercial PaperReliance Capital 596.02 10.04% CRISIL A1+Gruh Finance 499.16 8.41% CRISIL A1+Tata Motors Finance 497.94 8.39% [ICRA]A1+JM Financial Products 492.11 8.29% CRISIL A1+Total 90.97%Cash EquivalentsCBLOs 556.21 9.37%Net Current Assets -20.01 -0.34%Total Net Assets as on 31 July 2013 5,937.05 100.00%

HSBC Ultra Short Term Bond Fund (HUSBF) July 2013

42

Date of Allotment 17-Oct-06Benchmark Customised

Benchmark Index**NAV (Growth) per unit(as on 31.07.13)

` 10.6295


2.89 months


2.61 months


Ruchir ParekhSIP AvailableMinimum ` 10,000Application ` 1,000 p.m.(SIP)Amount

Sub OptionsGrowth, Daily Dividend, Reinvestment Weekly Dividend, Reinvestment, Monthly Dividend (Payout & Reinvestment)Exit Load@ NilTotal Expense Ratio as on July 31, 2013 Regular # 1.30%$ Institutional 0.75%$

Institutional Plus # 0.25%$

Direct Plan 0.25%$

$ Excludes service tax on Investment Management fees of 0.02% of Total Net Assets.@ Effective from March 1, 2013 for prospective investments.** Composite index of CRISIL Liquid Fund Index(90%) and CRISIL Short Term Bond Fund Index(10%).* Based on invested Amount

# Plan(s) discontinued from accepting subscriptions w.e.f. October 01, 2012

Asset AllocationMoney Market Instruments 90.97%Cash Equivalents 9.37%Net Current Assets -0.34%

Rating ProfileAAA 90.97%Reverse Repos/ CBLOs 9.37%Net Current Assets -0.34%





HSBC Ultra Short Term Bond Fund - Institutional Option - Monthly Dividend26-Apr-13 0.07954 0.06777 10.229331-May-13 0.06005 0.05751 10.215628-Jun-13 0.04732 0.04532 10.1992HSBC Ultra Short Term Bond Fund - Institutional Plus Option - Monthly Dividend28-Jan-11 0.04829 0.04501 10.382125-Feb-11 0.04125 0.03845 10.374125-Mar-11 0.05214 0.04859 10.3865

HSBC Ultra Short Term Bond Fund (HUSBF) July 2013

43


HSBC Ultra Short Term Bond Fund

01 July 2013 to 15 July 2013***

16 July 2013 to 31 July 2013***

Average for the Month

Normal (erstwhile institutional plan)

0.75 0.75 0.75

Direct 0.25 0.25 0.25

*** Service tax on AMC fees is charged in addition to the above stated TERs .

This Product is suitable for investors who are seeking* :l Liquidity over short terml Investment in Debt / Money Market Instrumentsl Low risk (Blue)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

An Open Ended Debt SchemeInvestment Objective: 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 invest-ment in debt and money market instruments.

IssuerMarketValue

(` in Lacs)

% toNet

AssetsRating

Money Market InstrumentsCertificate of DepositKotak Mahindra Bank 9,482.78 6.88% CRISIL A1+Corporation Bank 4,455.18 3.23% CRISIL A1+Oriental Bank of Commerce 2,499.23 1.81% CRISIL A1+United Bank of India 2,497.05 1.81% CARE A1+Vijaya Bank 2,496.83 1.81% CARE A1+State Bank of Patiala 2,482.83 1.80% [ICRA]A1+State Bank of Hyderabad 2,474.33 1.79% [ICRA]A1+Indian Bank 2,464.36 1.79% Fitch A1+Allahabad Bank 1,498.10 1.09% [ICRA]A1+Corporate/PSU DebtCorporate Bonds / DebenturesIndian Railway Finance Corporation 9,560.57 6.93% CRISIL AAANational Housing Bank 7,202.00 5.22% CRISIL AAARural Electrification Corporation 5,434.06 3.94% CARE AAAHDFC 4,258.65 3.09% CRISIL AAAState Bank of India 3,721.53 2.70% CRISIL AAARural Electrification Corporation 3,476.85 2.52% CRISIL AAAPower Finance Corporation 2,905.94 2.11% CRISIL AAAShriram Transport Finance Company 2,451.95 1.78% CRISIL AAPower Finance Corporation 2,401.51 1.74% CRISIL AAABajaj Finance 2,273.17 1.65% [ICRA]AA+Power Grid Corporation of India 2,066.04 1.50% CRISIL AAAPower Finance Corporation 1,981.90 1.44% CRISIL AAATata Sons 1,968.67 1.43% CRISIL AAAShriram Transport Finance Company 1,968.39 1.43% CRISIL AALIC Housing Finance 1,486.28 1.08% CRISIL AAALIC Housing Finance 1,474.98 1.07% CRISIL AAAHDFC 1,454.08 1.05% CRISIL AAAPower Finance Corporation 1,435.07 1.04% CRISIL AAARural Electrification Corporation 1,133.17 0.82% CRISIL AAAPower Finance Corporation 1,013.53 0.73% CRISIL AAAHDFC 986.88 0.72% CRISIL AAAShriram Transport Finance Company 979.95 0.71% CRISIL AANABARD 891.45 0.65% CRISIL AAAPower Grid Corporation of India 480.99 0.35% CRISIL AAAPower Grid Corporation of India 477.30 0.35% CRISIL AAAShriram Transport Finance Company 299.73 0.22% CRISIL AAPower Finance Corporation 295.75 0.21% CRISIL AAAGovernment Securities8.12% GOVT OF INDIA RED 10-12-2020 8,661.71 6.28% Sovereign8.20% GOVT OF INDIA RED 24-09-2025 7,170.84 5.20% Sovereign8.07% GOVT OF INDIA RED 03-07-2017 6,220.31 4.51% Sovereign7.16% GOVT OF INDIA RED 20-05-2023 5,138.08 3.73% Sovereign8.10% TAMILNADU SDL RED 08-05-2023 1,613.16 1.17% Sovereign8.25% ANDHRA PRADESH SDL RED 25-04-2023 846.07 0.61% Sovereign

Zero Coupon BondsHDFC 283.55 0.21% CRISIL AAATotal 90.16%

HSBC Flexi Debt Fund (HFDF) July 2013

44

Date of Allotment 05-Oct-07Benchmark CRISIL Composite


` 16.2408


48.12 months


33.15 months


Ruchir ParekhSIP AvailableMinimum ` 10,000Application ` 1,000 p.m.(SIP)AmountExit Load@ Nil

Total Expense Ratio as on July 31, 2013 Regular # 1.85%$

Institutional 1.60%$ Direct Plan 0.85%$

$ Excludes service tax on Investment Management fees of 0.09% of Total Net Assets.@ Effective from March 1, 2013 for prospective investments.* Based on invested Amount# Plan(s) discontinued from accepting subscriptions w.e.f. October 01, 2012





HSBC Flexi Debt Fund - Regular Option - Monthly Dividend26-Apr-13 0.05836 0.04973 10.494931-May-13 0.11214 0.10740 10.671828-Jun-13 0.03263 0.03125 10.4175HSBC Flexi Debt Fund - Institutional Option - Monthly Dividend26-Apr-13 0.07409 0.06313 10.750531-May-13 0.11686 0.11191 10.917828-Jun-13 0.03489 0.03342 10.6570HSBC Flexi Debt Fund - Monthly Dividend - Direct Plan31-May-13 0.12506 0.11977 10.9844HSBC Flexi Debt Fund - Regular Option - Quarterly Dividend14-Dec-12 0.19821 0.16988 11.885915-Mar-13 0.19821 0.16988 12.068614-Jun-13 0.19482 0.18658 12.2858HSBC Flexi Debt Fund - Institutional Option - Quarterly Dividend14-Dec-12 0.19821 0.16988 11.787015-Mar-13 0.19821 0.16988 11.973714-Jun-13 0.19482 0.18658 12.1950HSBC Flexi Debt Fund - Quarterly Dividend - Direct Plan14-Jun-13 0.19482 0.18658 12.2525HSBC Flexi Debt Fund - Regular Option - Half Yearly Dividend16-Mar-12 0.35236 0.30201 11.267214-Sep-12 0.35236 0.30201 11.431515-Mar-13 0.35236 0.30201 11.6629HSBC Flexi Debt Fund - Institutional Option - Half-yearly Dividend15-Mar-13 0.35236 0.30201 10.9757HSBC Flexi Debt Fund - Half-yearly Dividend - Direct Plan15-Mar-13 0.35236 0.30201 10.9999

Asset AllocationCorporate / PSU Debt 46.66%Money Market Instruments 22.00%Government Securities 21.50%Cash Equivalents 7.71%Net Current Assets 2.13%

Rating ProfileAAA 62.89%AA+/ AA-/ AA 5.78%Sovereign 21.50%Reverse Repos/ CBLOs 7.71%Net Current Assets 2.13%

HSBC Flexi Debt Fund (HFDF) July 2013

45


Cash EquivalentsCBLOs 10,630.77 7.71%Net Current Assets 2,936.15 2.13%Total Net Assets as on 31 July 2013 1,37,931.69 100.00%

This Product is suitable for investors who are seeking* :l Regular Income over long terml Investment in Debt / Money Market Instrumentsl Low risk (Blue)*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

Name of Scheme Fund Manager

HSBC MIP - Savings & Regular Plan

For Debt portion: Sanjay Shah (from 14 August 2009) & Ruchir Parekh (from 25 January 2011) & For Equity portion: Aditya Khemani (from 24 February 2009)

HSBC Income Fund - Investment Plan

Ruchir Parekh (from 25 January 2011) &Sanjay Shah (from 09 January 2009)

HSBC Income Fund - Short Term Plan

Ruchir Parekh (from 25 January 2011) &Sanjay Shah (from 09 January 2009)

HSBC Floating Rate Fund Long Term Plan

Sanjay Shah (from 09 January 2009) & Ruchir Parekh (from 22 September 2012)

HSBC Cash Fund Ruchir Parekh (from 25 January 2011) &Sanjay Shah (from 22 September 2012)

HSBC Gilt Fund Sanjay Shah (from 09 January 2009)

HSBC Ultra Short Term Bond Fund

Sanjay Shah (from 22 September 2012) & Ruchir Parekh (from 22 September 2012)

HSBC Flexi Debt Fund Sanjay Shah (from 09 January 2009) &Ruchir Parekh (from 25 January 2011)

Fund Managers - MIP & Debt July 2013

46

Fund Manager’s ExperienceSanjay Shah B. Com, A.C.A., Post Graduate Diploma in Management

Experience:Over 12 years of experience in research and Fund Management l HSBC Asset Management (India) Private Ltd Vice President & Fund Manager, Fixed Income since December 2008 onwards l FIL Fund Management Private Ltd Credit Analyst from September 2008 to December 2008 l Lehman Brothers Structured Financial Services Private Ltd Vice President, Convertible Products from September 2006 to Sep tember 2008 l Rabo India Finance Private Ltd Senior Manager – Credit Risk from July 2004 to September 2006 l ICICI Bank Ltd Manager, Credit Risk from January 2003 to June 2004 l SBI Funds Management Private Ltd Chief Manager, Debt Funds from June 1999 to January 2003

Ruchir ParekhMBA, B.Com

Experience:Over 14 years experience in research and Fund Management. l HSBC Asset Management (India) Private Ltd Fund Manager, Fixed Income from January 2011 onwards l AIG Global Asset Management (India) Private Ltd Fund Manager, Fixed Income from April 2007 - January 2011 l HDFC Asset Management Company Ltd Sr. Manager, Fixed Income Analyst from February 2003 - April 2007 l Bear Stearns & Co., New York, NY Fixed Income Analyst from October 2000 - March 2002 l Moodys Investors Service, New York, NY Senior Associate from June 1997 - October 2000

Comparative Performance of Debt Schemes July 2013

47

Data for the period July to June has been considered in all cases, except for ‘Since Inception’ returns. ‘Since Inception’ (%) returns are compounded annualised, other % returns are simple annualised. ‘Since inception’ returns are calculated on `10 invested at inception. Standard benchmark is prescribed by SEBI and is used for comparison purposes. Returns on ̀ 10,000 are point-to-point returns for the specific time period, invested at the start of the period. The returns provided above have been rounded off and hence there may be minor differences between point-to-point returns vis-a-vis returns indicated above.

HSBC MIP - Regular Plan Date of Inception : 24 Feb 04Scheme Name & Benchmarks July 12 -

June 13July 11 - June

12

July 10 - June 11

Since Inception

HSBC MIP - Regular Plan - Growth 10.18% 6.72% 3.93% 7.80%Crisil MIP Blended Index (Scheme Benchmark) 10.87% 6.58% 5.17% 7.39%Crisil 1 Year T-Bill Index (Standard Benchmark) 8.19% 7.72% 4.32% 5.47%Crisil 10 Year Gilt Index (Standard Benchmark) 12.14% 7.25% 1.54% 5.12%`10,000, if invested in HMIP - R, would have become `11,018 `10,672 `10,393 `20,193

`10,000, if invested in Crisil MIP Blended Index, would have become `11,087 `10,658 `10,517 `19,489

`10,000, if invested in Crisil 1 Year T-Bill Index, would have become `10,819 `10,772 `10,432 `16,465

`10,000, if invested in Crisil 10 Year Gilt Index, would have become `11,214 `10,725 `10,154 `15,950

HSBC MIP - Savings Plan Date of Inception : 24 Feb 04Scheme Name & Benchmarks July 12 -


July 10 - June 11

Since Inception

HSBC MIP - Savings Plan - Growth 11.43% 6.58% 3.87% 9.30%Crisil MIP Blended Index (Scheme Benchmark) 10.87% 6.58% 5.17% 7.39%Crisil 1 Year T-Bill Index (Standard Benchmark) 8.19% 7.72% 4.32% 5.47%Crisil 10 Year Gilt Index (Standard Benchmark) 12.14% 7.25% 1.54% 5.12%`10,000, if invested in HMIP - S, would have become `11,143 `10,658 `10,387 `22,985

`10,000, if invested in Crisil MIP Blended Index, would have become `11,087 `10,658 `10,517 `19,489



Funds Managed by - Sanjay Shah & Ruchir Parekh (for Debt portion) &Aditya Khemani (for Equity portion)



HSBC Gilt Fund Date of Inception : 05 Dec 03Scheme Name & Benchmarks July 12 -


July 10 - June 11

Since Inception

HSBC Gilt Fund - Growth 12.21% 10.69% 7.36% 4.85%I-Sec Composite Index (Scheme Benchmark) 12.02% 9.90% 4.75% 6.99%Crisil 10 Year Gilt Index (Standard Benchmark) 12.14% 7.25% 1.54% 5.09%`10,000, if invested in HGF, would have become `11,221 `11,069 `10,736 `15,742

`10,000, if invested in I-Sec Composite Bond Fund Index, would have become `11,202 `10,990 `10,475 `19,104


Fund Managed by - Sanjay Shah.



48


47

HSBC FRF - LTP - Regular Plan Date of Inception : 16 Nov 04Scheme Name & Benchmarks July 12 -


July 10 - June 11

Since Inception

HSBC FRF - LTP - Growth 8.68% 9.00% 6.78% 7.52%Crisil Liquid Fund Index (Scheme Benchmark) 8.14% 8.67% 7.17% 6.72%Crisil 1 Year T-Bill Index (Standard Benchmark) 8.19% 7.72% 4.32% 5.72%

`10,000, if invested HFRF - LTP, would have become `10,868 `10,900 `10,678 `18,691

`10,000, if invested in Crisil Liquid Fund Index, would have become `10,814 `10,867 `10,717 `17,526


Funds Managed by - Sanjay Shah & Ruchir Parekh.


HSBC Ultra Short Term Bond Fund$ Date of Inception : 17 Oct 06Scheme Name & Benchmarks Since InceptionHSBC Ultra Short Term Bond Fund - Growth 6.34%Customised Benchmark Index (Scheme Benchmark)* 6.10%Crisil 1 Year T-Bill Index (Standard Benchmark) 6.01%`10,000, if invested in HUSTBF, would have become `10,470 `10,000, if invested in Customised Benchmark Index, would have become `10,453

`10,000, if invested in Crisil 1 Year T-Bill Index, would have become `10,446


HSBC Flexi Debt Fund Date of Inception: 05 Oct 07Scheme Name & Benchmarks July 12 -


July 10 - June 11

Since Inception

HSBC Flexi Debt Fund - Growth 11.44% 9.91% 6.07% 9.40%Crisil Composite Bond Fund Index (Scheme Benchmark) 10.73% 8.67% 4.53% 7.29%

Crisil 10 Year Gilt Index (Standard Benchmark) 12.14% 7.25% 1.54% 7.16%`10,000, if invested in HFDF, would have become `11,144 `10,991 `10,607 `16,752

`10,000, if invested in Crisil Composite Bond Fund Index, would have become `11,073 `10,867 `10,453 `14,981



*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 1 October 2012, returns since the said date have been considered for calculating performance. The inception date of HSBC Ultra Short Term Bond Fund however is 17 October 2006.


49


HSBC Income Fund - Investment Plan Date of Inception : 10 Dec 02Scheme Name & Benchmarks July 12 -


July 10 - June 11

Since Inception

HSBC Income Fund - Investment Plan - Growth 11.56% 9.63% 5.79% 7.26%Crisil Composite Bond Fund Index (Scheme Benchmark) 10.76% 8.67% 4.53% 6.07%

Crisil 10 Year Gilt Index (Standard Benchmark) 12.14% 7.25% 1.54% 5.90%`10,000, if invested in HIF - IP, would have become `11,156 `10,963 `10,579 `20,967

`10,000, if invested in Crisil Composite Bond Fund Index, would have become `11,076 `10,867 `10,453 `18,629


HSBC Income Fund - S T P Date of Inception : 10 Dec 02Scheme Name & Benchmarks July 12 -


July 10 - June 11

Since Inception

HSBC Income Fund - S T P - Growth 9.26% 8.70% 6.85% 6.81%Crisil Short Term Bond Fund Index (Scheme Benchmark) 9.33% 8.77% 5.56% 6.52%

Crisil 1 Year T-Bill Index (Standard Benchmark) 8.19% 7.72% 4.32% 5.46%

`10,000, if invested in HIF -ST, would have become `10,926 `10,870 `10,685 `20,057

`10,000, if invested in Crisil Short Term Bond Fund Index, would have become `10,933 `10,877 `10,556 `19,495


Funds Managed by - Ruchir Parekh & Sanjay Shah.



HSBC Cash Fund$ Date of Inception: 04 Dec 02Scheme Name & Benchmarks

Last 7 Days as on 28

June 2013

Last 15 Days as on 28

June 2013

Last 30 Days as

on 28 June 2013

July 12 - June 13

July 11 - June 12

Since Inception

HSBC Cash Fund - Growth 8.21% 8.09% 8.02% 8.78% 8.80% 8.73%

Crisil Liquid Fund Index (Scheme Benchmark)

9.18% 8.90% 8.18% 8.14% 8.69% 8.08%

Crisil 91 Day T-Bill Index (Standard Benchmark)

8.72% 8.08% 7.36% 8.31% 8.04% 8.40%

`10,000, if invested in HCF, would have become

`10,016 `10,033 `10,066 `10,878 `10,880 `24,252

`10,000, if invested in Crisil Liquid Fund Index, would have become

`10,018 `10,037 `10,067 `10,814 `10,869 `22,749

`10,000, if invested in Crisil 91 Day T-Bill Index, would have become

`10,017 `10,033 `10,060 `10,831 `10,804 `23,482


$ 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 19 May 2011, returns since the said date have been considered for calculating performance. The inception date of HSBC Cash Fund however is 4 December 2002.

Statutory Details & Disclaimers

All returns have been sourced from MutualFundsIndia 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 verified 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 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 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. Mutual fund investments are subject to market risks. Please read the Scheme Information Document carefully before investing.

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 Asset Management (India) Private Limited, 16, V.N. Road, Fort, Mumbai-400001 Email: [email protected] Website: www.assetmanagement.hsbc.com/in

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