Abridged Schemewise Annual Reports 201 - HSBCHEF seeks to generate long-term capital growth from an actively managed portfolio of equity and equity related securities. The net assets

Abridged SchemewiseAnnual Reports 2013 - 2014

► INDEX HSBC Equity Fund 1 HSBC Progressive Themes Fund 23 HSBC Emerging Markets Fund 45 HSBC Brazil Fund 67 HSBC Dynamic Fund 89 HSBC Tax Saver Equity Fund 111 HSBC India Opportunities Fund 133 HSBC Midcap Equity Fund 155 HSBC Unique Opportunities Fund 177 HSBC Small Cap Fund 199 HSBC Asia Pacific (Ex Japan) Dividend Yield Fund 221 HSBC MIP 242 HSBC Income Fund 272 HSBC Floating Rate Fund 306 HSBC Ultra Short Term Bond Fund 330 HSBC Cash Fund 354 HSBC Gilt Fund 380 HSBC Flexi Debt Fund 402 HSBC Capital Protection Oriented Fund 427 HSBC Fixed Term Series 448

HSBC Equity Fund

HSBC Equity FundAn Open-ended Diversifi ed Equity Scheme

Abridged Annual Report 2013 - 2014

1

HSBC Equity Fund

Dear Investor,

Greetings from HSBC Global Asset Management, India.

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

2013-14 was an important year for us where we continued to signifi cantly enhance our capabilities and more importantly we undertook measures that are designed to benefi t our investors. I am pleased to share some of these with you:

Treating Customers Fairly: Effective 1 March 2013, HSBC Global Asset Management, India was perhaps the only AMC in India to demise exit loads from all its mutual fund schemes for prospective investments. We took this step because we are committed to treating our customers fairly. We therefore do not want to create any exit costs/barriers for investors. We believe investors should stay invested in our schemes due to the benefi ts they see,not due to penal levies.

Portfolio Rebalancing: An area of concern for the industry has been the excessive churn that sometimes takes place in investor portfolios under the guise of portfolio rebalancing. We believe a strong contributor to this is the upfront commissions that are paid by AMCs. You will be pleased to know that the endeavour which we took last year, to link our distributor commissions to the persistency of the assets,has been extended to all our channel partners. We believe this will promote the right behavior across all stakeholders.

Offshore Advisory Services: In an increasingly interconnected world, it is critical that investment management functions in a country are able to draw on the experiences/developments in other markets. Last year I had informed you that the investment management team of our company in India had commenced sub-advising the India strategies of the fi xed income schemes managed by HSBC Global Asset Management globally. I am extremely pleased to share that effective September 2014, we are now sub-advising the India strategies of the equity schemes that we offer globally as well. This is tremendous vote of confi dence for the team in India.

You would also be aware that we are the only foreign asset manager to the Employees’ Provident Fund Organisation. This effectively means that our funds under management/sub-advise cumulatively account for close to USD 17.67 Bn of assets making us one of the largest managers/sub-advisors of Indian assets(Data as on 31 March 2014, Source: HSBC Global Asset Management, India).

Further we were also the 4th fastest growing asset management company in India in the fi nancial year 2013-14 ie we grew our domestic average assets under management by 46% as compared to the industry growth of 11% for the period March 2013 - March 2014 (Source: AMFI).

Market Outlook

As we know markets are inherently unpredictable, more so capital markets. That said, a range of macroeconomic trends that we are observing suggest an optimistic outlook for equities. With GDP growth tending to bottomout, a decisive mandate for the new government, expectations of earnings upgrades, fair valuations and increased interest from foreign investors, we could be poised for a period of growth in the equity markets.

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HSBC Equity Fund

Equity: As proven historically, equities tend to outperform other asset classes and provide returns that beat infl ation. Fundamentally the India growth story remains strong and given the recent positive developments this may be a good time to increase equity allocation.

Fixed Income: Infl ation is showing a moderating trend which may pave the way for interest rate cuts in the future. This would be positive for long term bond funds. In the interim, short term bond funds continue to offer good value for investors who have a moderate appetite for volatility.

We have been and continue to be of the view that investors should make allocations in keeping with their risk appetite and investment horizon. We also believe that asset allocation offers the best opportunity to balance risk and reward.

In April 2014, we introduced HSBC Managed Solutions, a fi rst of its kind active asset allocation based solution in India. Investors have a choice of three options within Managed Solutions that caters to different risk profi les - Conservative, Moderate and Growth. You may wish to fi nd out more about Managed Solutions while planning your investments.

In summary,

- if your risk appetite is high and your investment horizon is over fi ve years you could consider investing in equity funds.

- if you are of a moderate risk profi le you may wish to allocate across equity and debt products or even consider hybrid products like a Dynamic Fund or a Monthly Income Plan.

- if you are a conservative investor, you may prefer accrual products like short term debt funds and liquid funds.

Alternatively, you may consider investing in an asset allocation fund like HSBC Managed Solutions and choose the option that fi ts your risk appetite.

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

Yours sincerely,

Puneet Chaddha

Chief Executive Offi cer

HSBC Asset Management (India) Private Limited

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HSBC Equity Fund

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

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

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

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

Effective from May 11, 2013

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

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

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

BOARD OF TRUSTEESMr. N. P. Gidwani - Chairman

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

BOARD OF DIRECTORSMs. Naina Lal Kidwai - Chairperson

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

4

HSBC Equity Fund

Trustees’ ReportFor the year ended March 31, 2014

The Trustees present the twelfth report and the audited abridged fi nancial statements of the Schemes of HSBC Mutual Fund (the “Fund”), for the year ended March 31, 2014.

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

a) Operations and Performance of the Scheme

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

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

The net assets of HEF amounted to Rs. 453.11 crores as at March 31, 2014 as against Rs. 537.32 crores as at March 31, 2013. Around 97.81% of the net assets were invested in equities, 2.51% of the net assets were invested in reverse repos / CBLO and (- 0.32%) was in the net current assets as at March 31, 2014.

HEF remained invested in a diversifi ed portfolio across large capitalization stocks. The relative overweight in Technology resulted in outperformance against Scheme benchmark for the period 2013-14.

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

Scheme Name & Benchmarks April ‘13 - March ‘14

April ‘12 - March ‘13


Since Inception

HSBC Equity Fund - Growth 16.82 4.20 -8.90 24.34

S&P BSE 200 (Scheme Benchmark) 16.65 5.41 -9.55 18.72

CNX Nifty (Standard Benchmark) 17.53 6.93 -9.13 17.67

Rs. 10,000, if invested in HEF, would have become 11,682 10,420 9,110 118,277

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

11,665 10,541 9,045 69,977

Rs. 10,000, if invested in CNX Nifty, would have become 11,753 10,693 9,087 63,309

Past performance may or may not be sustained in future. Returns data as on March 31, 2014. Data for the period April to March has been considered in all cases, except for Since Inception. ‘Since Inception’ returns are calculated on Rs. 10 invested at inception. Standard benchmark is prescribed by SEBI for long term equity schemes and is used for comparison purposes. Returns on Rs. 10,000 are point-to-point returns for the specifi c time period, invested at the start of the period. The returns provided above have been rounded off and hence there may be a minor difference between point-to-point returns vis-à-vis returns indicated above. Calculations are based on Growth NAVs.

b) Market Overview & Outlook

EQUITY OUTLOOK

The Sensex returned 18.8% for the FY ended March 2014. It is the highest fi scal year return since FY10. While the rally looks strong on annual basis, it wasn’t without its share of ups and downs. In fact, Sensex gave negative returns over the fi rst fi ve months when hopes of economic recovery were completely negated by ballooning current account defi cit and depreciating currency. The market rebounded smartly over the next 7 months of the fi scal to post smart gains. The market gain was largely linked to hope of pro-reform government formation at the center as state election results and opinion poll results poured in through this period. Improvement in current account helped too.

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HSBC Equity Fund

Trustees’ ReportFor the year ended March 31, 2014 (Contd...)

Returns (April 1, 2013 - March 31, 2014) 1 Year (%)

NIFTY 18.0

Sensex 18.8

S&P BSE 100 18.1

S&P BSE 200 17.2

S&P BSE 500 17.1

CNX Midcap 15.3

Source: Bloomberg

Our view in respect of key issues facing equity market currently is presented below based upon which we expect continuation of prevailing positive sentiment in the market -

� Macro: We expect improvement in all the macro parameters on YoY basis. GDP growth, Industrial production growth, and Capital formation growth are likely to see recovery from last year. Key risk to our call on growth recovery is weak monsoons.

� Infl ation: While elevated level of infl ation continues to remain a worry for policy makers and somewhat constrain their ability to maneuver the economy on the recovery path, we are also cognizant of the fact that trajectory of infl ation is likely to be downward sloping.

� Interest rates: Our expectation of interest rates is based on infl ation level, their trajectory, and fi scal position of the government. Based upon which we opine that there is limited room for rate reduction in the near term but it is expected to happen in 2015.

� Reforms: The seminal event of FY14 is the General Election and its mandate. We believe, the mandate, which exceeded most optimistic expectations, underlines nation’s desire to shun identity based politics and parochial considerations for development and economic growth. Expectations from the government are high but we are placing our faith in the government’s ability to deliver (albeit over 3-5 years).

� Valuations: (for large Sensex companies) is 16.2x on FY15e and 13.8x on FY16e earnings, which is right in the middle of long-term averages. Despite run-up, a large number of mid-caps are available at a signifi cant discount to large cap peer.

DEBT OUTLOOK

Fixed Income market in FY 2014 faced higher volatility in rates this year as RBI hiked the short end rates substantially in July 2013 to counter pressure on currency. Although the measures were gradually rolled back, long end of the curve remained anchored to 8.75-9% range due to supply and absence of open market operations.

First half of the year saw rate cuts of 75 bps which led to substantial positive sentiments in the fi xed income markets. RBI had been cutting rates despite high infl ation readings largely to support growth impetus carried on by the government. This momentum was carried on till May 2013 as the rates were also supported by FII infl ows in fi xed income markets.

After Federal Reserve meeting in May 2013, which indicated tapering of the quantitative easing in the US, most emerging markets including India faced currency weakness? The fear of withdrawal of excess liquidity caused weakness in all emerging market currency including India. Higher current account defi cit due to higher gold import requirements and inelastic oil imports requirement also accentuated pressure on the currency. Foreign investors especially in fi xed income segment withdrew in large quantum in June, July and August 2013 which pushed INR / USD rates closer to 68.

RBI in order to protect the INR increased the short term operative rates by 300 bps in July 2013. These pressures created highly inverted yield curve and mark to market losses in most of the security. Respite came in after September 2013, when RBI launched FCNR scheme with discounted forward rates. This benefi tted forex situation and the rates came back closer to 62 from 68 levels earlier. Gradually over next 3 months, RBI reduced the overnight rates while hiking the repo rate by 50 bps (till Dec 13).

The resultant volatility due to increase in rates and currency volatility impacted the funds returns in last year.

In the current year, RBI has hiked 25 bps and has targeted infl ation. However, it has also charted a path for the infl ation. If infl ation follows the glide path, rates may not move higher from the current 8% repo rate.

6

HSBC Equity Fund


RBI also took initiative for the liquidity management and has shown proactiveness in managing needs of the market in March and June 2014.

We expect the current stable government will take up many measures to contain infl ation and fi scal consolidation. This would lead to RBI holding on the rates for a while before expectation of rate cuts set in. However, there is a need to focus on key variables in the economy to judge future directions. These are:

� Liquidity: Liquidity will drive short end rates and eventually drive decisions leading to market interventions and CRR cuts.

� Infl ation: Infl ation numbers will determine future course of action for RBI and remains a critical variable for policy. We expect infl ation to ease in second quarter of FY 14-15.

� Growth: GDP growth numbers as well as industrial activity will also determine the decision on policy. GDP will be bottoming out in couple of quarters.

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

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

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

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

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

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

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

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

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

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

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

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

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

company incorporated under the Companies Act, 1956 on December 12, 2001 having its Registered Offi ce at 16, V. N. Road, Fort, Mumbai 400 001. HSBC Asset Management (India) Private Limited has been appointed as the Asset Management Company of the HSBC Mutual Fund by the Trustee vide

7

HSBC Equity Fund


Investment Management Agreement (IMA) dated February 7, 2002 and executed between the Trustees and the AMC. SEBI approved the AMC to act as the Investment Manager of the Fund vide its letter No. MFD/BC/163/2002 dated May 27, 2002. The paid-up equity share capital of the AMC is Rs. 61.59 crores. HSBC Securities and Capital Markets (India) Private Limited holds 100% of the paid up equity share capital of the AMC.

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

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

5. UNCLAIMED DIVIDENDS & REDEMPTIONSSummary of number of investors & corresponding amount Scheme-wise as on March 31, 2014 :

SchemeUnclaimed Dividends Unclaimed Redemptions

Amount (Rs)

No. of Investors

Amount (Rs)

No. of Investors

HSBC Equity Fund 5,575,816.87 1274 5,595,376.62 201

6. INVESTOR SERVICESThe number of offi cial points of acceptance of transactions is 198 locations. In addition to the offi ces of the Registrar & Transfer agents, the AMC has Investor Service Centres in 5 locations at its own offi ces - namely Mumbai, New Delhi, Kolkata, Bengaluru and Chennai. With a view to enhance customer convenience, the AMC has extended the facility of priority based servicing to key distributors through the enhancement of the Interactive Voice Reponses. Call Center number has now been converted to a single Toll Free number which can be dialed from anywhere in India. The call center service is being managed by the Registrar and Transfer Agents. The AMC continues to retain the outsourced back offi ce services with HSBC Electronic Data Processing India Private Limited.

On the distribution front, the number of empanelled distributors was 664 as on March 31, 2014. During the year, the AMC initiated tie-ups for online distribution of the Mutual Fund’s schemes with several channel partners taking the total number of such tie-ups to 46.

7. DETAILS OF INVESTOR GRIEVANCE REDRESSALThe details of the redressal of investor complaints received against HSBC Mutual Fund during April 2013- March 2014 are as follows:

Total Number of Folios: 2,19,898*

Com-plaintCode

Type of complaint#

(a) No. ofcomplaints

pendingat the

beginningof the year

(b) No. of com-plaints

receivedduring

theyear#

Action on (a) and (b)

Resolved Non Actiona-

ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months

I A Non receipt of Dividend on Units 0 3 2 1 0 0 0 0 0 0 0

I B Interest on delayed payment of Dividend

0 1 1 0 0 0 0 0 0 0 0

I C Non receipt of Redemption Proceeds

0 44 24 14 0 0 0 6 0 0 0

I D Interest on delayed payment of Redemption

0 0 0 0 0 0 0 0 0 0 0

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

0 7 7 0 0 0 0 0 0 0 0

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HSBC Equity Fund


Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months

II B Discrepancy in Statement of Account

1 2 3 0 0 0 0 0 0 0 0

II C Data corrections in Investor details

0 132 132 0 0 0 0 0 0 0 0

II D Non receipt of Annual Report / Abridged Summary

0 0 0 0 0 0 0 0 0 0 0

III A Wrong switch between Schemes 0 4 4 0 0 0 0 0 0 0 0III B Unauthorized switch between

Schemes0 0 0 0 0 0 0 0 0 0 0

III C Deviation from Scheme attributes 0 0 0 0 0 0 0 0 0 0 0III D Wrong or excess charges / load 0 0 0 0 0 0 0 0 0 0 0III E Non updation of changes viz.

address, PAN, bank detai ls, nomination, etc.

0 13 12 0 0 0 0 1 0 0 0

IV Others 0 18 15 2 0 0 0 1 0 0 0Total 1 224 200 17 0 0 0 8 0 0 0

Note:

* active folios

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

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

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

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

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

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

The Trustees look forward to the continued support of everyone.

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

Sd/-

Dilip J. Thakkar

Trustee

MumbaiJuly 15, 2014

9

HSBC Equity Fund

To the Board of Trustees of

HSBC Mutual Fund

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

“Scheme”), which comprise the Balance Sheet as at March 31, 2014, the related Revenue Account and Cash Flow Statement for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.

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

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

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

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

4. In making those risk assessments, the auditors consider internal control relevant to the preparation and fair presentation of the fi nancial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Our procedures included confi rmation of securities owned and unit capital balances as at March 31, 2014 by correspondence with the custodian/others and registrar and transfer agent, respectively.

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

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

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

(a) in the case of the Balance Sheet, of the state of affairs of the Scheme as at March 31, 2014;

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

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

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

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

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

Independent Auditors’ Report

10

HSBC Equity Fund

Independent Auditors’ Report (Contd...)

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

For PRICE WATERHOUSEFirm Registration Number: 301112EChartered Accountants

Sd/-

Vivek PrasadPartnerMembership Number: 104941

Place : MumbaiDate : July 15, 2014

11

HSBC Equity Fund

Rs. in Lakhs

HSBC EQUITY FUNDAs at

March 31, 2014As at

March 31, 2013

LIABILITIES1 Unit Capital 9,855.25 13,256.092 Reserves & Surplus2.1 Unit Premium Reserves (15,203.70) (17,803.76)2.2 Unrealised Appreciation Reserve 11,231.68 9,521.792.3 Other Reserves 39,394.99 48,757.803 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 1,109.59 557.17

TOTAL 46,387.81 54,289.10

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares 44,318.29 53,308.921.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – –1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –

Total Investments 44,318.29 53,308.92

2 Deposits 1.00 1.003 Other Current Assets3.1 Cash & Bank Balance 19.12 37.643.2 CBLO / Reverse Repo Lending 1,137.61 795.753.3 Others 911.79 145.794 Deferred Revenue Expenditure – –

(to the extent not written off)

TOTAL 46,387.81 54,289.10

Notes to Accounts - Annexure I

Abridged Balance Sheet as at March 31, 2014

12

HSBC Equity Fund

Abridged Revenue Account for the year ended March 31, 2014

Rs. in Lakhs

HSBC EQUITY FUNDCurrent

Year ended March 31, 2014

Previous Year ended

March 31, 2013

1 INCOME1.1 Dividend 861.98 1,026.191.2 Interest 134.18 68.711.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of

investments5,902.11 6,533.88

1.6 Realised Gains / (Losses) on Derivative Transactions – –1.7 Other Income 26.89 29.84

(A) 6,925.16 7,658.62

2 EXPENSES2.1 Management fees 706.63 727.962.2 Service tax on Management fees 87.34 89.982.3 Transfer agents fees and expenses 68.13 96.302.4 Custodian fees 7.06 25.592.5 Trusteeship fees 1.92 0.182.6 Commission to Agents * – –2.7 Marketing & Distribution expenses 340.16 472.312.8 Audit fees 6.66 7.612.9 Investor Education Expenses 9.50 6.052.10 Other operating expenses 27.83 38.812.11 Less:Expenses to be Reimbursed by the Investment Manager – –

(B) 1,255.23 1,464.79

3 NET REALISED GAINS / (LOSSES) FORTHE YEAR (A - B = C) 5,669.93 6,193.83

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

5 NET GAINS / (LOSSES) FOR THE YEAR [E = (C - D)] 5,669.93 6,193.83

6 Change in unrealised appreciation in the value ofinvestments and derivatives (F) 1,709.88 (3,111.58)

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 7,379.81 3,082.257.1 Add: Balance transfer from Unrealised Appreciation Reserve – 3,111.587.2 Less: Balance transfer to Unrealised Appreciation Reserve 1,709.88 –7.3 Add / (Less): Equalisation (15,032.74) (11,814.42)

7.4 Transfer from Reserve Fund 48,757.80 56,919.34

8 TOTAL 39,394.99 51,298.75

9 Dividend Appropriation9.1 Income Distributed during the year – 2,540.959.2 Tax on income distributed during the year – –

10 Retained Surplus / (Defi cit) carried forward toBalance sheet 39,394.99 48,757.80


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

13

HSBC Equity Fund

Key Statistics for the year ended March 31, 2014

HSBC EQUITY FUND Current


Previous Year ended

March 31, 2013

1. NAV per unit (Rs.):

Open

Regular Plan Growth Option 100.1318 95.8173

Regular Plan Dividend Option 22.7836 24.1020

Direct Plan - Growth Option 100.4499 N.A.

Direct Plan - Dividend Option 22.8591 N.A.

High



Direct Plan - Growth Option 118.8405 109.6683

Direct Plan - Dividend Option 27.0442 27.5837

Low





End





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

End 45,278 53,732

Average (AAuM)1 47,510 62,169

3. Gross income as % of AAuM2 14.58% 12.32%

4. Expense Ratio:

a. Total Expense as % of AAuM (planwise)

Regular Plan 2.65% 2.36%

Direct Plan 1.95% 1.38%

b. Management Fee as % of AAuM (planwise)



5. Net Income as a percentage of AAuM3 11.93% 9.96%

6. Portfolio turnover ratio4 0.91 0.08

14

HSBC Equity Fund

HSBC EQUITY FUND Current


Previous Year ended

March 31, 2013

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

Retail

Regular Plan Dividend Option – 2.50

Direct Plan - Dividend Option – 2.50

Corporate



8. Returns (%):

a. Last One Year

Scheme



Benchmark

S&P BSE200 16.6967 8.2600

b. Since Inception

Scheme


Direct Plan - Growth Option 8.5983 (5.7500)

Benchmark

S&P BSE200 18.7170 18.8800

1. AAuM = Average daily net assets.

2. Gross income = amount against (A) in the Revenue Account i.e. Income.

3. Net income = amount against (C) in the Revenue Account i.e. Net Realised Gains / (Losses) for the year.

4. Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year.

Key Statistics for the year ended March 31, 2014 (Contd...)

15

HSBC Equity Fund

Notes to Accounts - Annexure ITo the Abridged Balance Sheet and Revenue Account for the Year ended March 31, 2014

HSBC EQUITY FUND

1 Investments:

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

1.2 Open Positions of derivatives as of years ended March 31, 2014 and March 31, 2013 are NIL.

1.3 Investments in Associates and Group Companies:(Rupees)

Issuer Instrument Type

Amount Aggregate Investments

by all schemes


by all schemes

2014 2013

Shriram Transport Finance Company Ltd.

Corporate Bonds / Debentures

– 555,832,950 – –

Bharti Airtel Ltd. Equities 20,120,275 76,306,283 – –

Steel Authority of India Ltd.

Commercial Paper

– 1,243,550,000 – –

Shriram Equipment Finance Co. Ltd.

Commercial Paper

– 492,702,500 – –

1.4 Open positions of Securities Borrowed and / or Lent by the scheme as of the years ended March 31, 2014 and March 31, 2013 are NIL.

1.5 NPAs as at years ended March 31, 2014 and March 31, 2013 are NIL.

1.6 Aggregate Unrealised Gain / Loss as at the end of the Financial years March 31, 2014 and March 31, 2013 and percentage to net assets are as under :

Company Name Amount (Rs.) Percentage to Net Assets

Amount (Rs.) Percentage to Net Assets

2014 2013

Equity Shares

– Appreciation 1,146,109,304 25.31 1,243,676,670 23.15

– Depreciation 22,941,434 0.51 291,496,330 5.43

1.7 The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2013-2014 (excluding accretion of discount) is Rs. 4,334,871,643 and Rs. 5,995,132,778 respectively being 91.24% and 126.19% of the average daily net assets.

The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2012-2013 (excluding accretion of discount) is Rs. 485,389,142 and Rs. 2,124,443,280 respectively being 7.81% and 34.17% of the average daily net assets.

1.8 Non-Traded securities in the portfolio of the Scheme as of the years ended March 31, 2014 and March 31, 2013 are NIL.

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

During the year 2013-2014, The Hongkong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid collection / bank charges amounting to Rs. 19,200 and clearing member charges on derivative transactions amounting to Rs. Nil.

16

HSBC Equity Fund

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

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

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

Nature of Association / Nature of

Relation

Period Covered

Business Given [Rs. In Crores]

% of Total Business

received by the Fund

Commission paid [Rs.]

% of Total commission paid by the

Fund

The Hongkong and Shanghai Banking Corporation Limited

Associate 2013-2014 2.26 5.83 4,129,159 10.61

HSBC InvestDirect Securities (India) Limited

Associate 2013-2014 – – 48,214 0.12



Relation

Period Covered


% of Total Business




Fund


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


Associate 2012-2013 0.11 0.09 89,870 0.22

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



relation

Period Covered

Value of Transactions

[Rs. In Crores]

% of total value of

transactions of the fund

Brokerage paid [Rs.]

% of total brokerage

paid by the fund

HSBC Securities and Capital Market (India) Private Limited

Sponsor 2013-2014 28.73 2.78 344,690 2.80



relation

Period Covered


[Rs. In Crores]

% of total value of



% of total brokerage paid by the

fund


Sponsor 2012-2013 14.65 0.67 239,600 6.70

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

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

Notes to Accounts - Annexure I (Contd...)To the Abridged Balance Sheet and Revenue Account for the year ended March 31, 2014

17

HSBC Equity Fund

3 None of the Investors held more than 25% of the total net assets of the Scheme at the years ended March 31, 2014 and March 31, 2013.

4 Unit Capital movement during the years ended March 31, 2014 and March 31, 2013:

Description 2013-2014

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

Regular Plan Growth Option

30,349,642.128 2,660,563.229 12,415,819.744 20,594,385.613 10

Regular Plan Dividend Option

101,946,741.042 1,309,815.487 25,904,767.082 77,351,789.447 10

Direct Plan - Growth Option

70,466.051 225,127.027 69,297.398 226,295.680 10

Direct Plan - Dividend Option

194,070.056 206,484.161 20,571.479 379,982.738 10

Description 2012-2013



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


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


– 70,796.605 330.554 70,466.051 10


– 194,180.482 110.426 194,070.056 10

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

6 No contingent liabilities for the years ended March 31, 2014 and March 31, 2013.

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

8 Other income of Rs. 2,689,085 (2013: Rs. 2,983,825) represents Exit load (net of service tax) credited to the Scheme and Provision for expenses written back since no longer required.

9 HSBC Mutual Fund has changed its Fund Accountant and Custodian from JPMorgan Chase Bank to Standard Chartered Bank, with effect from May 11, 2013.

10 The Annual Accounts of the Schemes prepared in accordance with the accounting policies and standards specifi ed in the Ninth Schedule of The Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 has been approved by the Board of Directors of HSBC Asset Management (India) Private Limited and The Board of Trustees of HSBC Mutual Fund on July 10, 2014 and July 15, 2014 respectively. The audit report attached herewith refers to the said Annual Accounts. The aforesaid abridged accounts are an extract of the Annual Accounts and are prepared in accordance with SEBI Circular No. IMD/Cir8/132968/2008 dated July 24, 2008.


18

HSBC Equity Fund

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Voting Policy and Procedures

19

HSBC Equity Fund

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

20

HSBC Equity Fund

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HSBC Equity Fund

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

Investors should not invest in the Scheme solely based on the information provided in this document and should read the Combined Scheme Information Document and Statement of Additional Information of the Fund for details. This document does not constitute an offering document.

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 Progressive Themes Fund

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


1


Dear Investor,









Market Outlook


2






In summary,






Yours sincerely,

Puneet Chaddha



3














4





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

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

The net assets of HPTF amounted to Rs. 110.41 crores as at March 31, 2014 as compared to Rs. 130.40 crores as at March 31, 2013. Around 99.88% of the net assets were invested in equities, 0.93% of the net assets were invested in reverse repos / CBLO and (-0.81%) were in the net current assets as at March 31, 2014.

HPTF is a theme based Scheme. The focus of the Scheme being on Infrastructure and Economic Reforms suffered due to delay in the government policy, high interest rates, etc. as against a more diversifi ed benchmark. However, post-election the fund has managed to recover sharply on expectations of increased infrastructure thrust, improvement in investment cycle, easing of regulatory hurdles etc.

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




Since Inception

HSBC Progressive Themes Fund - Growth 4.65 -10.58 -4.28 1.06



Rs. 10,000, if invested in HPTF, would have become 10,465 8,942 9,572 10,896


11,665 10,541 9,045 20,962




EQUITY OUTLOOK



5



NIFTY 18.0

Sensex 18.8

S&P BSE 100 18.1

S&P BSE 200 17.2

S&P BSE 500 17.1

CNX Midcap 15.3

Source: Bloomberg







DEBT OUTLOOK








6






















7







Amount (Rs)

No. of Investors

Amount (Rs)

No. of Investors

HSBC Progressive Themes Fund 674,622.48 341 4,660,382.71 366





Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months



0 1 1 0 0 0 0 0 0 0 0


0 44 24 14 0 0 0 6 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 7 7 0 0 0 0 0 0 0 0


8


Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


1 2 3 0 0 0 0 0 0 0 0

II C Data corrections in Investor details 0 132 132 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0

III A Wrong switch between Schemes 0 4 4 0 0 0 0 0 0 0 0

III B Unauthorized switch between Schemes

0 0 0 0 0 0 0 0 0 0 0

III C Deviation from Scheme attributes 0 0 0 0 0 0 0 0 0 0 0

III D Wrong or excess charges / load 0 0 0 0 0 0 0 0 0 0 0

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

0 13 12 0 0 0 0 1 0 0 0

IV Others 0 18 15 2 0 0 0 1 0 0 0

Total 1 224 200 17 0 0 0 8 0 0 0

Note:

* active folios









Sd/-

Dilip J. Thakkar

Trustee

MumbaiJuly 15, 2014


9



HSBC Mutual Fund

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

Themes Fund, (the “Scheme”), which comprise the Balance Sheet as at March 31, 2014 and the related Revenue Account for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.


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

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

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









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


10



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


Sd/-



11


Rs. in Lakhs

HSBC PROGRESSIVE THEMES FUNDAs at

March 31, 2014As at

March 31, 2013

LIABILITIES1 Unit Capital 10,894.48 13,710.362 Reserves & Surplus2.1 Unit Premium Reserves (14,443.44) (17,930.00)2.2 Unrealised Appreciation Reserve – –2.3 Other Reserves 14,584.77 17,259.993 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 195.42 340.76

TOTAL 11,231.23 13,381.11


Total Investments 11,030.42 12,995.972 Deposits – –3 Other Current Assets3.1 Cash & Bank Balance 4.41 44.843.2 CBLO / Reverse Repo Lending 102.81 181.713.3 Others 93.59 158.594 Deferred Revenue Expenditure – –


TOTAL 11,231.23 13,381.11



12



Rs. in Lakhs

HSBC PROGRESSIVE THEMES FUNDCurrent


Previous Year ended

March 31, 2013

1 INCOME1.1 Dividend 344.65 409.761.2 Interest 11.19 14.761.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of

investments(2,398.98) 574.68


(A) (2,042.30) 1,002.74


(B) 302.21 417.26

3 NET REALISED GAINS / (LOSSES) FORTHE YEAR (A - B = C) (2,344.51) 585.48

4 Change in Unrealised Depreciation invalue of investments and derivatives (D) 2,810.02 2,041.49

5 NET GAINS / (LOSSES) FOR THE YEAR [E = (C - D)] 465.51 (1,456.01)

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

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 465.51 (1,456.01)7.1 Add: Balance transfer from Unrealised Appreciation Reserve – –7.2 Less: Balance transfer to Unrealised Appreciation Reserve – –7.3 Add / (Less): Equalisation (3,140.73) (4,977.07)


8 TOTAL 14,584.77 17,259.99

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




13



HSBC PROGRESSIVE THEMES FUND Current


Previous Year ended

March 31, 2013


Open

Growth Option 10.2116 11.3220

Dividend Option 8.6860 9.6304



High





Low





End






End 11,036 13,040

Average (AAuM)1 10,469 16,214

3. Gross income as % of AAuM2 -19.51% 6.18%

4. Expense Ratio:







5. Net Income as a percentage of AAuM3 -22.39% 3.61%


14



HSBC PROGRESSIVE THEMES FUND Current


Previous Year ended

March 31, 2013


Retail

Dividend Option – –

Direct Plan - Dividend Option – –

Corporate



8. Returns (%):

a. Last One Year

Scheme

Growth Option 4.6586 (7.9867)


Benchmark

S&P BSE200 16.6967 8.2600

b. Since Inception

Scheme


Direct Plan - Growth Option (9.5483) (16.0600)

Benchmark

S&P BSE200 9.5592 8.5400

1 AAuM = Average daily net assets.2 Gross income = amount against (A) in the Revenue account i.e. Income.3 Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the year.4 Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year.

15


Notes to Accounts - Annexure ITo the Abridged Balance Sheet and Revenue Account for the year ended March 31, 2014

HSBC PROGRESSIVE THEMES FUND1 Investments:


1.2 Open Positions of derivatives as of years ended March 31, 2014 and March 31, 2013 are NIL

1.3 Investments in Associates and Group Companies as of year ended March 31, 2014 is NIL.

1.4 Open positions of Securities Borrowed and / or Lent by the scheme as of the years ended March 31, 2014 and March 31, 2013 are NIL.


1.6 Aggregate Unrealised Gain / Loss as at the end of the Financial year 2013 -2014 and 2012-2013 and percentage to net assets are as under :



2014 2013

Equity Shares

– Appreciation 211,874,667 19.20 113,032,612 8.67

– Depreciation 254,500,462 23.06 436,659,966 33.49

1.7 The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2013-2014 (excluding accretion of discount) is Rs. 247,066,449 and Rs. 484,724,745 respectively being 23.60% and 46.30% of the average daily net assets.

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

1.8 Non-Traded securities in the portfolio as on March 31, 2014 and March 31, 2013 are Nil


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


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


Relation

Period Covered


% of Total Business




Fund


Associate 2013-2014 0.09 4.63 586,358 10.71


Associate 2013-2014 – – 10,687 0.20

16




Relation

Period Covered


% of Total Business




Fund


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


Associate 2012-2013 0.00~ 0.02 21,632 0.24




relation

Period Covered


[Rs. In Crores]

% of total value of

transaction of the fund



fund


Sponsor 2013-2014 1.72 2.35 20,643 2.40



relation

Period Covered


[Rs. In Crores]

% of total value of




fund


Sponsor 2012-2013 4.72 0.83 90,222 4.75

~ Indicates less than 0.01


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


4 Unit Capital movement during the years ended March 31, 2014 and March 31, 2013 :

Description

2013 - 2014

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

Growth Option 74,154,312.625 363,981.803 17,049,155.139 57,469,139.289 10

Dividend Option 62,923,931.960 505,585.706 12,198,096.623 51,231,421.043 10


13,105.277 255,828.419 44,045.255 224,888.441 10


12,268.093 12,122.647 5,003.128 19,387.612 10


17


Description

2012 - 2013

Opening Units Subscription Redemption Closing Units Face Value

per unit (Rupees)

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

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


– 13,362.802 257.525 13,105.277 10


– 12,268.093 – 12,268.093 10

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



8 Other Income of Rs. 84,445 (2013: Rs.354,038) represents Exit load (net of service tax) credited to the Scheme, provision for expenses written back since no longer required and IPO expenses written back.




18


















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HSBC EMERGING MARKETS FUND

HSBC Emerging Markets FundAn open-ended Scheme


1


Dear Investor,









Market Outlook


2






In summary,






Yours sincerely,

Puneet Chaddha



3














4






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

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

The net assets of HEMF amounted to Rs. 14.47 crores as at March 31, 2014 compared to Rs. 19.11 crores as at March 31, 2013. Around 97.56% of the net assets were invested in HSBC GEM Equity Fund (overseas mutual fund), 0.50% of the net assets were invested in reverse repos / CBLO and 1.94% was in the net current assets as at March 31, 2014.

While the underlying fund under-performed its benchmark, INR denominated HEMF has outperformed its benchmark during the period 2013-14 mainly on account of ~10% depreciation of the INR vis-à-vis USD.

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

(%)




Since Inception

HSBC Emerging Markets Fund - Growth 3.94 4.55 -6.74 1.37

MSCI Emerging Market Index (Scheme Benchmark) 0.81 1.77 -7.26 1.21


Rs. 10,000, if invested in HMEF, would have become 10,394 10,455 9,326 10,856

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

10,081 10,177 9,274 10,754




EQUITY OUTLOOK


5




NIFTY 18.0

Sensex 18.8

S&P BSE 100 18.1

S&P BSE 200 17.2

S&P BSE 500 17.1

CNX Midcap 15.3

Source: Bloomberg







DEBT OUTLOOK







6






















7








Amount (Rs)

No. of Investors

Amount (Rs)

No. of Investors

HSBC Emerging Markets Fund – – 817,423.30 25





Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months



0 1 1 0 0 0 0 0 0 0 0


0 44 24 14 0 0 0 6 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 7 7 0 0 0 0 0 0 0 0

8



Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


1 2 3 0 0 0 0 0 0 0 0



0 0 0 0 0 0 0 0 0 0 0



0 0 0 0 0 0 0 0 0 0 0




0 13 12 0 0 0 0 1 0 0 0

IV Others 0 18 15 2 0 0 0 1 0 0 0

Total 1 224 200 17 0 0 0 8 0 0 0

Note:

* active folios









Sd/-

Dilip J. Thakkar

Trustee

MumbaiJuly 15, 2014

9



HSBC Mutual Fund

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

Fund (the “Scheme”), which comprise the Balance Sheet as at March 31, 2014 and the related Revenue Account for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.


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







(a) in the case of the Balance Sheet, of the state of affairs of the Scheme as at March 31, 2014; and

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



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


10


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


Sd/-




11


Rs. in Lakhs

HSBC EMERGING MARKETS FUNDAs at

March 31, 2014As at

March 31, 2013

LIABILITIES1 Unit Capital 1,332.58 1,825.022 Reserves & Surplus2.1 Unit Premium Reserves (453.70) (410.20)2.2 Unrealised Appreciation Reserve 111.20 165.862.3 Other Reserves 456.88 331.133 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income/Deposits – –4.2 Other Current Liabilities & Provisions 61.88 13.06

TOTAL 1,508.84 1,924.87

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – –1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities 1,411.91 1,861.29


2 Deposits – –3 Other Current Assets3.1 Cash & Bank Balance 0.73 0.383.2 CBLO/Reverse Repo Lending 7.24 60.823.3 Others 88.96 2.384 Deferred Revenue Expenditure – –


TOTAL 1,508.84 1,924.87



12



Rs. in Lakhs

HSBC EMERGING MARKETS FUNDCurrent


Previous Year ended

March 31, 2013

1 INCOME1.1 Dividend 51.91 62.911.2 Interest 4.79 9.871.3 Realised Gain / (Loss) on Foreign Exchange Transactions 33.28 8.561.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of

investments128.70 200.61

1.6 Realised Gains / (Losses) on Derivative Transactions 0.35 –1.7 Other Income – 1.83

(A) 219.03 283.78

2 EXPENSES2.1 Management fees 16.34 22.042.2 Service tax on Management fees 2.02 2.722.3 Transfer agents fees and expenses 1.81 2.992.4 Custodian fees 1.97 4.332.5 Trusteeship fees 0.07 0.012.6 Commission to Agents * – –2.7 Marketing & Distribution expenses 10.75 18.742.8 Audit fees 0.21 0.272.9 Investor Education Expenses 0.36 0.242.10 Other operating expenses 1.82 1.782.11 Less:Expenses to be Reimbursed by the Investment Manager (0.11) (0.55)

(B) 35.24 52.57

3 NET REALISED GAINS / (LOSSES) FORTHE YEAR (A - B = C) 183.79 231.21

4 Change in Unrealised Depreciation invalue of investments*** (D) (0.40) 0.22

5 NET GAINS / (LOSSES) FOR THE YEAR [E = (C - D)] 183.39 231.436 Change in unrealised appreciation in

the value of investments and derivatives (F) (54.66) (86.24)

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 128.73 145.19

7.1 Add: Balance transfer from Unrealised Appreciation Reserve 54.66 86.247.2 Less: Balance transfer to Unrealised Appreciation Reserve – –7.3 Add / (Less): Equalisation (57.64) 189.70

7.4 Transfer from Reserve Fund 331.13 (90.00)

8 Total 456.88 331.13

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

Balance sheet 456.88 331.13



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

13



HSBC EMERGING MARKETS FUND Current


Previous Year ended

March 31, 2013


Open





High





Low





End






End 1,447 1,912

Average (AAuM)1 1,801 2,988


4. Expense Ratio:









14


HSBC EMERGING MARKETS FUND Current


Previous Year ended

March 31, 2013


Retail

Regular Plan Dividend Option – –


Corporate



8. Returns (%):

a. Last One Year

Scheme



Benchmark

MSCI Emerging Markets Index 0.8137% 1.9900%

b. Since Inception

Scheme



Benchmark

MSCI Emerging Markets Index 1.2101% 1.2900%



15




1 Investments:



1.3 Investments in Associates and Group Companies as of years ended March 31, 2014 and March 31, 2013 are NIL.

1.4 Open positions of Securities Borrowed and / or Lent by the Scheme as of the years ended March 31, 2014 and March 31, 2013 are NIL.


1.6 Aggregate Unrealised Gain / Loss as at the end of the Financial years ended March 31, 2014 and March 31, 2013 and their percentages to net assets are as under:

Security Category Amount (Rs.) Percentage to Net Assets (%)

Amount (Rs.) Percentage to Net Assets (%)

2014 2013

Units in Mutual Fund

– Appreciation 11,120,491 7.69 16,586,375 8.68

– Depreciation – – – –

Foreign Currency denominated Assets and Liabilities

– Appreciation – – – –

– Depreciation 40,470 0.03 – –

1.7 The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2013-2014 (excluding accretion of discount) is Rs. 80,153,528 and 132,495,844 respectively being 44.50% and 73.56% of the average daily net assets.

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

1.8 Non-Traded securities in the portfolio as on March 31, 2014 and March 31, 2013 are Nil.

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




Relation

Period Covered


% of Total Business




Fund


Associate 2013-2014 1.74 26.77 923,486 21.14


Associate 2013-2014 – – 4,031 0.09

16




Relation

Period Covered


% of Total Business




Fund


Associate 2012-2013 1.97 50.43 352,295 20.52


Associate 2012-2013 0.00~ 0.02 1,302 0.08



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

3 None of the Investors held more than 25% of the total net assets of the Scheme at the years ended March 31, 2014 and March 31,2013.


Description

2013-2014

Opening Units Subscription Redemption Closing Units Face Value per Unit

(Rs.)


11,313,428.246 7,389,196.572 10,175,023.228 8,527,601.590 10


6,876,751.497 67,877.241 2,514,674.804 4,429,953.934 10


58,219.214 331,350.058 26,966.110 362,603.162 10


1,802.309 8,828.999 5,019.994 5,611.314 10

Description

2012-2013


(Rs.)


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


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


– 58,396.186 176.972 58,219.214 10


– 1,802.309 – 1,802.309 10


17






8 Other income of Rs. 35,287 (2013: 183,257) represents Exit load (net of service tax) credited to the scheme.



18


















19

















20


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HSBC BRAZIL FUND#

HSBC Brazil FundAn Open ended Fund of Funds Scheme


1

HSBC BRAZIL FUND#

Dear Investor,









Market Outlook


2

HSBC BRAZIL FUND#





In summary,






Yours sincerely,

Puneet Chaddha



3

HSBC BRAZIL FUND#













4

HSBC BRAZIL FUND#





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

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

The net assets of HBF amounted to Rs. 94.05 crores as at March 31, 2014 compared to Rs. 184.79 crores as at March 31, 2013. Around 99.05% of the net assets were invested in HSBC Brazil Equity Fund (overseas mutual fund), 1.11% of the net assets were invested in reverse repos / CBLO and (-0.16%) were in the net current assets as at March 31, 2014.

HBF had outperformed its Scheme benchmark during the period 2013-14 mainly on account of depreciation of the INR vis-à-vis the USD.

Date of Inception : 6 May 2011 Absolute (%) Compounded Annualized

(%)



Since Inception

HSBC Brazil Fund - Growth -11.37 -2.50 -4.90

MSCI Brazil 10/40 Index (Scheme Benchmark) -14.46 -14.53 -13.38

CNX Nifty (Standard Benchmark) 17.53 6.93 6.71

Rs. 10,000, if invested in HBF, would have become 8,863 9,750 8,642

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

8,554 8,547 6,587

Rs. 10,000, if invested in CNX Nifty, would have become 11,753 10,693 12,079

Past performance may or may not be sustained in future. Returns data as on March 31, 2014. Data for the period April to March has been considered in all cases, except for Since Inception. ‘Since Inception’ returns are calculated on Rs. 10 invested at inception. Standard benchmark is prescribed by SEBI for long term equity Schemes and is used for comparison purposes. Returns on Rs. 10,000 are point-to-point returns for the specifi c time period, invested at the start of the period. The returns provided above have been rounded off and hence there may be a minor difference between point-to-point returns vis-à-vis returns indicated above. Calculations are based on Growth NAVs.

All returns have been sourced from Mutual Funds India Explorer software unless otherwise stated. With regard to equity schemes (including the equity component of MIPs), fund performance is calculated on a total return basis (i.e. it includes dividends re-invested) while the benchmark is calculated on a price return basis (i.e. it does not consider dividends re-invested).


EQUITY OUTLOOK

The Sensex returned 18.8% for the FY ended March 2014. It is the highest fi scal year return since FY10. While the rally looks strong on annual basis, it wasn’t without its share of ups and downs. In fact, Sensex

5

HSBC BRAZIL FUND#


gave negative returns over the fi rst fi ve months when hopes of economic recovery were completely negated by ballooning current account defi cit and depreciating currency. The market rebounded smartly over the next 7 months of the fi scal to post smart gains. The market gain was largely linked to hope of pro-reform government formation at the center as state election results and opinion poll results poured in through this period. Improvement in current account helped too.


NIFTY 18.0

Sensex 18.8

S&P BSE 100 18.1

S&P BSE 200 17.2

S&P BSE 500 17.1

CNX Midcap 15.3

Source: Bloomberg







DEBT OUTLOOK




RBI in order to protect the INR increased the short term operative rates by 300 bps in July 2013. These pressures created highly inverted yield curve and mark to market losses in most of the security. Respite came in after September 2013, when RBI launched FCNR scheme with discounted forward rates. This benefi tted

6

HSBC BRAZIL FUND#


forex situation and the rates came back closer to 62 from 68 levels earlier. Gradually over next 3 months, RBI reduced the overnight rates while hiking the repo rate by 50 bps (till Dec 13).


In the current year, RBI has hiked 25 bps and has targeted infl ation. However, it has also charted a path for the infl ation. If infl ation follows the glide path, rates may not move higher from the current 8% repo rate. RBI also took initiative for the liquidity management and has shown proactiveness in managing needs of the market in March and June 2014.

















7

HSBC BRAZIL FUND#



company incorporated under the Companies Act, 1956 on December 12, 2001 having its Registered Offi ce at 16, V. N. Road, Fort, Mumbai 400 001. HSBC Asset Management (India) Private Limited has been appointed as the Asset Management Company of the HSBC Mutual Fund by the Trustee vide Investment Management Agreement (IMA) dated February 7, 2002 and executed between the Trustees and the AMC. SEBI approved the AMC to act as the Investment Manager of the Fund vide its letter No. MFD/BC/163/2002 dated May 27, 2002. The paid-up equity share capital of the AMC is Rs. 61.59 crores. HSBC Securities and Capital Markets (India) Private Limited holds 100% of the paid up equity share capital of the AMC.





Amount (Rs)

No. of Investors

Amount (Rs)

No. of Investors

HSBC Brazil Fund – – 8,389.10 1





Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months

I A Non receipt of Dividend on Units 0 3 2 1 0 0 0 0 0 0 0I B Interest on delayed payment of

Dividend0 1 1 0 0 0 0 0 0 0 0


0 44 24 14 0 0 0 6 0 0 0


0 0 0 0 0 0 0 0 0 0 0

8

HSBC BRAZIL FUND#


Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 7 7 0 0 0 0 0 0 0 0


1 2 3 0 0 0 0 0 0 0 0


0 132 132 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


Schemes0 0 0 0 0 0 0 0 0 0 0



0 13 12 0 0 0 0 1 0 0 0

IV Others 0 18 15 2 0 0 0 1 0 0 0Total 1 224 200 17 0 0 0 8 0 0 0

Note:* active folios# including against its authorized persons / distributors / employees etc.








Sd/-

Dilip J. Thakkar

Trustee

MumbaiJuly 15, 2014

9

HSBC BRAZIL FUND#


HSBC Mutual Fund

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

“Scheme”), which comprise the Balance Sheet as at March 31, 2014 and the related Revenue Account for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.










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



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


10

HSBC BRAZIL FUND#


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


Sd/-



11

HSBC BRAZIL FUND#


Rs. in Lakhs

HSBC BRAZIL FUNDAs at

March 31, 2014As at

March 31, 2013

LIABILITIES1 Unit Capital 10,877.20 18,947.212 Reserves & Surplus2.1 Unit Premium Reserves (29.59) (28.48)2.2 Unrealised Appreciation Reserve – –2.3 Other Reserves (1,446.19) (438.77)3 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 222.61 212.86

TOTAL 9,624.03 18,692.82

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – –1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities 9,315.81 18,190.40



TOTAL 9,624.03 18,692.82


12

HSBC BRAZIL FUND#


Rs. in Lakhs

HSBC BRAZIL FUNDCurrent


Previous Period ended

March 31, 2013

1 INCOME1.1 Dividend 362.12 553.721.2 Interest 19.27 55.811.3 Realised Gain / (Loss) on Foreign Exchange Transactions 11.95 (70.32)1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of

investments(597.64) (308.89)

1.6 Realised Gains / (Losses) on Derivative Transactions 2.41 –1.7 Other Income – 4.63

(A) (201.89) 234.95


(B) 259.89 432.31

3 NET REALISED GAINS / (LOSSES) FORTHE YEAR (A - B = C) (461.78) (197.36)

4 Change in Unrealised Depreciation in valueof investments*** (D) (1,093.82) (279.51)

5 NET GAINS / (LOSSES) FOR THE YEAR [E = (C - D)] (1,555.60) (476.87)

6 Change in unrealised appreciation in thevalue of investments and derivatives (F) – (123.68)

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) (1,555.60) (600.55)7.1 Add: Balance transfer from Unrealised Appreciation Reserve – 123.687.2 Less: Balance transfer to Unrealised Appreciation Reserve – –7.3 Add / (Less): Equalisation 548.18 389.167.4 Transfer from Reserve Fund (438.77) (351.08)

8 Total (1,446.19) (438.79)

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

10 Retained Surplus / (Defi cit) carried forward toBalance sheet (1,446.19) (438.79)



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

13

HSBC BRAZIL FUND#





March 31, 2013


Open





High





Low





End






End 9,401 18,480

Average (AAuM)1 13,231 24,391


4. Expense Ratio:







5. Net Income as a percentage of AAuM3 -3.49% -0.81%


14

HSBC BRAZIL FUND#




March 31, 2013

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

Retail



Corporate



8. Returns (%):

a. Last One Year

Scheme

Regular Plan Growth Option (11.3981) (1.8287)

Direct Plan - Growth Option (10.8002) N.A.

Benchmark

MSCI Brazil 10/40 Index (14.4967%) (14.5300%)

b. Since Inception

Scheme

Regular Plan Growth Option (4.8977) (1.3277)


Benchmark

MSCI Brazil 10/40 Index (13.3777%) (12.4400%)

1 AAuM=Average daily net assets2 Gross income = amount against (A) in the Revenue account i.e. Income3 Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the period4 Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the period


15

HSBC BRAZIL FUND#


HSBC BRAZIL FUND1 Investments:





1.5 NPAs as at years ended March 31, 2014 and March 31, 2013 are NIL

1.6 Aggregate Unrealised Gain / Loss as at the end of the Financial years 2013-2014 and 2012-2013 their percentages to net assets are as under:



2014 2013



– Depreciation 137,247,817 14.60 27,951,384 0.95

Foreign Currency denominated Assets and Liabilities


– Depreciation 85,680.00 0.01 – –


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

1.8. Non-Traded securities in the portfolio as on March 31, 2014 and March 31, 2013 are Nil

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

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

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



Relation

Period Covered


% of Total Business




Fund


Associate 2013-2014 2.29 21.52 6,539,913 74.51


Associate 2013-2014 – – 213,963 2.44

16

HSBC BRAZIL FUND#

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


Relation

Period Covered


% of Total Business




Fund


Associate 2012-2013 50.61 78.44 12,282,223 79.03


Associate 2012-2013 0.14 0.21 324,782 2.09





Description

2013-2014

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


117,282,062.611 8,621,990.218 52,585,456.908 73,318,595.921 10


72,060,624.981 476,739.659 37,475,303.542 35,062,061.098 10


127,498.072 263,450.629 35,281.472 355,667.229 10


1,901.307 33,803.262 – 35,704.569 10

Description

2012-2013

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


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


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


– 127,498.072 – 127,498.072 10


– 1,901.307 – 1,901.307 10


17

HSBC BRAZIL FUND#




7 Other income of Rs. 240,751 (2013: Rs 462,999) represents Exit load (net of service tax) credited to the scheme.



18

HSBC BRAZIL FUND#

















19

HSBC BRAZIL FUND#
















20

HSBC BRAZIL FUND#

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10

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esol

utio

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HSBC BRAZIL FUND#





HSBC DYNAMIC FUND

HSBC Dynamic FundAn open-ended Scheme


1

HSBC DYNAMIC FUND

Dear Investor,









Market Outlook


2

HSBC DYNAMIC FUND





In summary,






Yours sincerely,

Puneet Chaddha



3

HSBC DYNAMIC FUND













4

HSBC DYNAMIC FUND





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

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

The net assets of HDF amounted to Rs. 76.12 crores as at March 31, 2014 compared to Rs. 132.97 crores as at March 31, 2013. Around 80.16% of the net assets were invested in equities, 21.01% of the net assets were invested in reverse repos / CBLO and (-1.17%) were in net current assets as at March 31, 2014.

HDF has underperformed its benchmark over the period 2013-14 due to high cash balance. The Scheme allocates capital across equity and debt securities dynamically. In a year when equity market was rising, thus becoming more expensive, and debt market being cheap, the dynamic allocation to cash kept on rising through the year. An average cash balance of approx. 14% through the year was the main reason of underperformance.

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




Since Inception

HSBC Dynamic Fund - Growth 13.20 1.59 -8.24 1.70



Rs. 10,000, if invested in HDF, would have become 11,320 10,159 9,176 11,160


11,665 10,541 9,045 12,950




EQUITY OUTLOOK


5

HSBC DYNAMIC FUND



NIFTY 18.0

Sensex 18.8

S&P BSE 100 18.1

S&P BSE 200 17.2

S&P BSE 500 17.1

CNX Midcap 15.3

Source: Bloomberg







DEBT OUTLOOK







6

HSBC DYNAMIC FUND





















7

HSBC DYNAMIC FUND







Amount (Rs)

No. of Investors

Amount (Rs)

No. of Investors

HSBC Dynamic Fund – – 2,217,484.91 90





Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months



0 1 1 0 0 0 0 0 0 0 0


0 44 24 14 0 0 0 6 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 7 7 0 0 0 0 0 0 0 0

8

HSBC DYNAMIC FUND


Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


1 2 3 0 0 0 0 0 0 0 0


0 132 132 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


Schemes0 0 0 0 0 0 0 0 0 0 0



0 13 12 0 0 0 0 1 0 0 0

IV Others 0 18 15 2 0 0 0 1 0 0 0Total 1 224 200 17 0 0 0 8 0 0 0

Note:

* active folios









Sd/-

Dilip J. Thakkar

Trustee

MumbaiJuly 15, 2014

9

HSBC DYNAMIC FUND


HSBC Mutual Fund

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

(the “Scheme”), which comprise the Balance Sheet as at March 31, 2014 and the related Revenue Account for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.















10

HSBC DYNAMIC FUND




Sd/-



11

HSBC DYNAMIC FUND

Rs. in Lakhs

HSBC DYNAMIC FUNDAs at

March 31, 2014As at

March 31, 2013

LIABILITIES1 Unit Capital 6,816.14 13,582.762 Reserves & Surplus2.1 Unit Premium Reserves (5,180.88) (8,972.94)2.2 Unrealised Appreciation Reserve 1,506.61 1,364.342.3 Other Reserves 4,464.60 7,323.183 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 123.84 217.84

TOTAL 7,730.31 13,515.18

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares 6,100.21 12,678.491.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – –1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –

Total Investments 6,100.21 12,678.492 Deposits – –3 Other Current Assets3.1 Cash & Bank Balance 2.62 2.063.2 CBLO / Reverse Repo Lending 1,599.41 795.723.3 Others 28.07 38.914 Deferred Revenue Expenditure – –


TOTAL 7,730.31 13,515.18



12

HSBC DYNAMIC FUND


Rs. in Lakhs

HSBC DYNAMIC FUNDCurrent


Previous Year ended

March 31, 2013




(A) 1,292.56 757.10

2 EXPENSES2.1 Management fees 166.19 151.362.2 Service tax on Management fees 20.54 18.712.3 Transfer agents fees and expenses 14.29 18.532.4 Custodian fees 1.47 4.262.5 Trusteeship fees 0.41 0.032.6 Commission to Agents * – –2.7 Marketing & Distribution expenses 80.72 99.492.8 Audit fees 1.12 1.882.9 Investor Education Expenses 2.03 1.442.10 Other operating expenses 5.63 18.082.11 Less:Expenses to be Reimbursed by the Investment Manager – (1.79)

(B) 292.40 311.99

3 NET REALISED GAINS / (LOSSES) FORTHE YEAR (A - B = C) 1,000.16 445.11

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

5 NET GAINS / (LOSSES) FOR THE YEAR [E = (C - D)] 1,000.16 445.11

6 Change in unrealised appreciation inthe value of investments and derivatives (F) 142.28 (218.49)

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 1,142.44 226.627.1 Add: Balance transfer from Unrealised Appreciation Reserve – 218.497.2 Less: Balance transfer to Unrealised Appreciation Reserve 142.28 –7.3 Add / (Less): Equalisation (3,858.74) 3,166.61


8 TOTAL 4,464.60 7,323.18





13

HSBC DYNAMIC FUND


HSBC DYNAMIC FUND Current


Previous Year ended

March 31, 2013


Open





High





Low





End






End 7,606 13,297

Average (AAuM)1 10,151 11,837


4. Expense Ratio:









14

HSBC DYNAMIC FUND

HSBC DYNAMIC FUND Current


Previous Year ended

March 31, 2013


Retail



Corporate



8. Returns (%):

a. Last One Year

Scheme



Benchmark

S&P BSE200 16.6967 8.2600

b. Since Inception

Scheme

Regular Plan Growth Option 1.6966 (0.2584)


Benchmark

S&P BSE200 4.0420 1.8300

1. AAuM = Average daily net assets.2. Gross income = amount against (A) in the Revenue account i.e. Income.3. Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the year.4. Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year.


15

HSBC DYNAMIC FUND


HSBC DYNAMIC FUND

1 Investments:


1.2 Open Positions of derivatives amount as of years ended March 31, 2014 and March 31, 2013 are NIL.

1.3 Investments in Associates and Group Companies :

(Rupees)



by all schemes


by all schemes

2014 2013


Corporate Bonds /

Debentures

– 555,832,950 – –



Commercial Paper

– 1,243,550,000 – –


Commercial Paper

– 492,702,500 – –

1.4 Open position of Securities Borrowed and / or Lent by the Scheme as of the years ended March 31, 2014 and March 31, 2013 are NIL.


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

Security Category Amount (Rs.) Percentage to Net Assets


2014 2013

Equity Shares

– Appreciation 153,932,096 20.24 188,393,378 14.17

– Depreciation 3,270,760 0.43 51,959,733 3.91

1.7 The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2013 - 2014 (excluding accretion of discount) is Rs. 847,412,218 and Rs. 1,617,613,014 respectively being 83.48% and 159.35% of the average daily net assets.

The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2012 - 2013 (excluding accretion of discount) is Rs. 941,179,687 and Rs. 388,715,249 respectively being 79.51% and 32.84% of the average daily net assets.

1.8 Non-Traded securities in the portfolio of the Scheme as of the years ended March 31, 2014 and March 31, 2013 are NIL.

16

HSBC DYNAMIC FUND






Relation

Period Covered


% of Total Business




Fund


Associate 2013-2014 1.84 16.64 4,344,043 51.90


Associate 2013-2014 – – 4,527 0.05



Relation

Period Covered


% of Total Business




Fund


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


Associate 2012-2013 – – 9,372 0.06




relation

Period Covered


[Rs. In Crores]

% of total value of




fund


Sponsor 2013-2014 35.33 14.33 424,370 14.35



relation

Period Covered


[Rs. In Crores]

% of total value of




fund


Sponsor 2012-2013 12.84 0.23 202,536 9.49



17

HSBC DYNAMIC FUND




Description

2013-2014


(Rs.)


79,606,995.946 8,055,856.308 48,571,799.273 39,091,052.981 10


56,212,092.195 533,306.963 27,764,761.839 28,980,637.319 10


6,205.078 86,323.250 7,098.603 85,429.725 10


2,270.830 2,789.356 774.863 4,285.323 10

Description

2012-2013


(Rs.)


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


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


– 6,205.078 – 6,205.078 10


– 2,270.830 – 2,270.830 10


6 No contingent liabilities for the years ended March 31, 2014 and March 31, 2013:


8 Other income of Rs. 2,397,119 (2013: 2,141,873) represents Exit load (net of service tax) credited to the Scheme, Compensation for trade error and Provision for expenses written back since no longer required.




18

HSBC DYNAMIC FUND

















19

HSBC DYNAMIC FUND
















20

HSBC DYNAMIC FUND

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HSBC DYNAMIC FUND

HSBC TAX SAVER EQUITY FUND

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


1


Dear Investor,









Market Outlook


2






In summary,






Yours sincerely,

Puneet Chaddha



3














4






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

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

The net assets of HTSF amounted to Rs. 180.73 crores as at March 31, 2014 compared to Rs 183.75 crores as at March 31, 2013. Around 99.43% of the net assets were invested in equities, 0.70% of the net assets were invested in reverse repos / CBLO and (-0.13%) was in the net current assets as at March 31, 2014.

HTSF outperformed its benchmark during most of the time frames due to reasonable stock selection and the approach of creating a stable and quality portfolio which can do well in different market conditions. Going forward, our endeavour would be to manage the portfolio in a similar fashion of bottom up stock picking approach, keeping in mind the risk profi le of the portfolio.

Date of Inception : 5 January 2007 Absolute (%) Compounded Annualized (%)




Since Inception

HSBC Tax Saver Equity Fund - Growth 22.52 11.90 -4.42 9.52



Rs. 10,000, if invested in HTSF, would have become 12,252 11,190 9,558 19,315


11,665 10,541 9,045 16,122




EQUITY OUTLOOK


5




NIFTY 18.0

Sensex 18.8

S&P BSE 100 18.1

S&P BSE 200 17.2

S&P BSE 500 17.1

CNX Midcap 15.3

Source: Bloomberg







DEBT OUTLOOK







6






















7








Amount (Rs)

No. of Investors

Amount (Rs)

No. of Investors

HSBC Tax Saver Equity Fund 570,128.97 457 2,538,381.23 139





Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months



0 1 1 0 0 0 0 0 0 0 0


0 44 24 14 0 0 0 6 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 7 7 0 0 0 0 0 0 0 0

8



Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


1 2 3 0 0 0 0 0 0 0 0



0 0 0 0 0 0 0 0 0 0 0



0 0 0 0 0 0 0 0 0 0 0




0 13 12 0 0 0 0 1 0 0 0

IV Others 0 18 15 2 0 0 0 1 0 0 0

Total 1 224 200 17 0 0 0 8 0 0 0

Note:

* active folios









Sd/-

Dilip J. Thakkar

Trustee

MumbaiJuly 15, 2014

9



HSBC Mutual Fund

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
















10





Sd/-



11


Rs. in Lakhs

HSBC TAX SAVER EQUITY FUNDAs at

March 31, 2014As at

March 31, 2013


TOTAL 18,417.48 18,940.95

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares 17,972.08 17,734.081.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – 163.181.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – –1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –



TOTAL 18,417.48 18,940.95



12



Rs. in Lakhs

HSBC TAX SAVER EQUITY FUNDCurrent


Previous Year ended

March 31, 2013

1 INCOME1.1 Dividend 234.98 266.961.2 Interest 14.85 36.231.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of investments 2,019.55 3,220.471.6 Realised Gains / (Losses) on Derivative Transactions – –1.7 Other Income 0.00~ –

(A) 2,269.38 3,523.66

2 EXPENSES2.1 Management fees 266.21 262.212.2 Service tax on Management fees 32.90 32.412.3 Transfer agents fees and expenses 24.59 31.112.4 Custodian fees 2.54 8.222.5 Trusteeship fees 0.69 0.062.6 Commission to Agents * – –2.7 Marketing & Distribution expenses 157.93 159.622.8 Audit fees 2.66 2.602.9 Investor Education Expenses 3.40 2.022.10 Other operating expenses 10.55 12.52

2.11 Less:Expenses to be Reimbursed by the Investment Manager (26.00) –

(B) 475.47 510.76

3 NET REALISED GAINS / (LOSSES)FOR THE YEAR (A - B = C) 1,793.91 3,012.90

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


6 in unrealised appreciation in the value of investments and derivatives (F) 1,801.78 (568.26)

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 3,595.69 2,444.64

7.1 Add: Balance transfer from Unrealised Appreciation Reserve – 568.267.2 Less: Balance transfer to Unrealised Appreciation Reserve 1,801.78 –7.3 Add / (Less): Equalisation (1,343.23) (1,111.66)7.4 Transfer from Reserve Fund 5,857.41 3,956.17

8 TOTAL 6,308.09 5,857.41


10 Retained Surplus / (Defi cit) carried forwardto Balance sheet 6,308.09 5,857.41


* Commission to Agents is included in Marketing & Distribution expenses~ Indicates less than 0.01

13



HSBC TAX SAVER EQUITY FUND Current


Previous Year ended

March 31, 2013


Open





High





Low





End






End 18,073 18,375

Average (AAuM)1 17,021 20,057


4. Expense Ratio:









14


HSBC TAX SAVER EQUITY FUND Current


Previous Year ended

March 31, 2013


Retail



Corporate



8. Returns(%):

a. Last One Year

Scheme



Benchmark

S&P BSE200 16.6967 14.8100

b. Since Inception

Scheme



Benchmark

S&P BSE200 6.8183 5.2500



15



HSBC TAX SAVER EQUITY FUND1 Investments:



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



by all schemes


by all schemes

2014 2013



– 555,832,950 – –



Commercial Paper

– 1,243,550,000 – –


Commercial Paper

– 492,702,500 – –

1.4. Open position of Securities Borrowed and / or Lent by the Scheme as of the years ended March 31, 2014 and March 31, 2013 are NIL.

1.5. NPAs as at years ended March 31, 2014 and March 31, 2013 are NIL.

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



2014 2013

Equity Shares

– Appreciation 478,762,105 26.49 377,882,008 20.57

– Depreciation 20,762,515 1.15 100,060,423 5.45

1.7. The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2013-2014 (excluding accretion of discount) is Rs. 1,351,963,079 and Rs. 1,726,612,915 respectively being 79.43% and 101.44% of the average daily net assets.

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

1.8. Non -Traded securities in the portfolio:

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

Security Category

Fair Value (Rs.) Percentage to Net Assets

Fair Value (Rs.) Percentage to Net Assets

2014 2013

Equities – – 16,318,384 0.89

Total – – 16,318,384 0.89

16


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





Relation

Period Covered


% of Total Business




Fund


Associate 2013-2014 0.50 5.60 307,232 2.37


Associate 2013-2014 – – 26,654 0.21



Relation

Period Covered


% of Total Business




Fund


Associate 2012-2013 0.39 5.78 315,743 2.24


Associate 2012-2013 0.00~ 0.06 41,681 0.30



Nature of Association /Nature of

relation

Period Covered


[Rs. In Crores]

% of total value of


Brokerage paid [Rs. ]


fund


Sponsor 2013-2014 2.65 0.86 31,844 0.86


Nature of Association /Nature of

relation

Period Covered


[Rs. In Crores]

% of total value of


Brokerage paid [Rs. ]


fund


Sponsor 2012-2013 7.62 0.52 128,505 2.50




17





Description

2013-2014

Opening Units Subscription Redemption Closing UnitsFace Value

per unit (Rupees)

Growth Option

76,390,937.051 2,940,014.266 18,286,538.683 61,044,412.634 10

Dividend Option

44,168,772.227 1,282,537.730 10,534,681.861 34,916,628.096 10


113,998.957 154,116.193 – 268,115.150 10


37,948.627 42,968.242 – 80,916.869 10

Description

2012-2013


per unit (Rupees)

Growth Option

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

Dividend Option

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


– 113,998.957 – 113,998.957 10


– 37,948.627 – 37,948.627 10







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Oth

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HSBC INDIA OPPORTUNITIES FUND

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


1


Dear Investor,









Market Outlook


2






In summary,






Yours sincerely,

Puneet Chaddha



3














4






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

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

The net assets of HIOF amounted to Rs. 177.60 crores as at March 31, 2014 as compared to Rs. 212.70 crores as at March 31, 2013. Around 98.47% of the net assets were invested in equities, 3.09% of the net assets were invested in reverse repos / CBLO and (-1.56%) were in the net current assets as at March 31, 2014.

HIOF outperformed its benchmark on a 1-year, 3-year basis and since its inception. The overweight in Technology resulted in outperformance against its benchmark for the period 2013-14. In addition, stock selections in sectors like Consumer Discretionary, Healthcare, Industrials, Materials and Utility contributed to the outperformance during this period.

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




Since Inception

HSBC India Opportunities Fund - Growth 27.93 0.21 -3.60 15.97



Rs. 10,000, if invested in HIOF, would have become 12,793 10,021 9,640 44,698


11,644 10,414 9,053 36,805




EQUITY OUTLOOK


5




NIFTY 18.0

Sensex 18.8

S&P BSE 100 18.1

S&P BSE 200 17.2

S&P BSE 500 17.1

CNX Midcap 15.3

Source: Bloomberg







DEBT OUTLOOK







6






















7








Amount (Rs)

No. of Investors

Amount (Rs)

No. of Investors

HSBC India Opportunities Fund 1,566,726.04 507 1,894,358.86 70





Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months



0 1 1 0 0 0 0 0 0 0 0


0 44 24 14 0 0 0 6 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 7 7 0 0 0 0 0 0 0 0

8



Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


1 2 3 0 0 0 0 0 0 0 0



0 0 0 0 0 0 0 0 0 0 0



0 0 0 0 0 0 0 0 0 0 0




0 13 12 0 0 0 0 1 0 0 0

IV Others 0 18 15 2 0 0 0 1 0 0 0

Total 1 224 200 17 0 0 0 8 0 0 0

Note:

* active folios









Sd/-

Dilip J. Thakkar

Trustee

MumbaiJuly 15, 2014

9



HSBC Mutual Fund

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
















10




Sd/-




11


Rs. in Lakhs

HSBC INDIA OPPORTUNITIES FUNDAs at

March 31, 2014As at

March 31, 2013


TOTAL 18,320.17 21,454.47



2 Deposits – –3 Other Current Assets3.1 Cash & Bank Balance 12.79 9.513.2 CBLO / Reverse Repo Lending 548.51 623.993.3 Others 267.46 33.934 Deferred Revenue Expenditure – –


TOTAL 18,320.17 21,454.47



12



Rs. in Lakhs

HSBC INDIA OPPORTUNITIES FUNDCurrent


Previous Year ended

March 31, 2013


investments2,100.49 1,964.86


(A) 2,452.87 2,466.432 EXPENSES2.1 Management fees 290.36 274.022.2 Service tax on Management fees 35.89 33.872.3 Transfer agents fees and expenses 26.11 37.092.4 Custodian fees 2.71 9.572.5 Trusteeship fees 0.74 0.072.6 Commission to Agents * – –2.7 Marketing & Distribution expenses 133.94 223.102.8 Audit fees 2.61 3.012.9 Investor Education Expenses 3.64 2.382.10 Other operating expenses 10.26 14.832.11 Less:Expenses to be Reimbursed by the Investment Manager – –

(B) 506.26 597.943 NET REALISED GAINS / (LOSSES) FOR

THE YEAR (A - B = C) 1,946.61 1,868.49



6 Change in unrealised appreciation inthe value of investments and derivatives (F) 2,493.22 (1,119.94)

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 4,439.83 748.557.1 Add: Balance transfer from Unrealised Appreciation Reserve – 1,119.947.2 Less: Balance transfer to Unrealised Appreciation Reserve 2,493.22 –7.3 Add / (Less): Equalisation (7,571.15) 3,661.297.4 Transfer from Reserve Fund 21,028.02 16,631.60

8 TOTAL 15,403.48 22,161.38

9 Dividend Appropriation9.1 Income Distributed during the year – 1,133.359.2 Tax on income distributed during the year – –

10 Retained Surplus / (Defi cit) carried forwardto Balance sheet 15,403.48 21,028.03



13



HSBC INDIA OPPORTUNITIES FUND Current


Previous Year ended

March 31, 2013


Open





High





Low





End






End 17,756 21,270

Average (AAuM)1 18,217 23,720


4. Expense Ratio:









14



HSBC INDIA OPPORTUNITIES FUND Current


Previous Year ended

March 31, 2013


Retail



Corporate



8. Returns (%):

a. Last One Year

Scheme



Benchmark

S&P BSE 500 16.4870 7.0700

b. Since Inception

Scheme



Benchmark

S&P BSE 500 13.7607 13.4100


15



HSBC INDIA OPPORTUNITIES FUND1 Investments:






by all schemes


by all schemes

2014 2013



– 555,832,950 – –



Commercial Paper

– 1,243,550,000 – –


Commercial Paper

– 492,702,500 – –

1.4 Open position of Securities Borrowed and / or Lent by the Scheme as of fi nancial years ended 2014 and 2013 are NIL.

1.5 The NPAs as on March 31, 2014 and March 31, 2013 is NIL.

1.6 Aggregate Unrealised Gain / Loss as at the end of the Financial years March 31, 2014 and March 31, 2013 are as under :



2014 2013

Equity Shares

– Appreciation 506,221,525 28.51 396,108,991 18.62

– Depreciation 2,558,061 0.14 141,767,777 6.67

1.7 The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2013-2014 (excluding accretion of discount) is Rs.1,530,778,108 and Rs. 2,319,712,274 respectively being 84.03% and 127.34% of the average daily net assets.

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

1.8 Non-Traded securities in the portfolio as on March 31, 2014 and March 31, 2013 are Nil.

16







Relation

Period Covered


% of Total Business




Fund


Associate 2013-2014 5.80 26.77 5,566,261 48.11


Associate 2013-2014 – – 15,679 0.14



Relation

Period Covered


% of Total Business




Fund


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


Associate 2012-2013 0.08 0.04 37,227 0.11




relation

Period Covered


[Rs. In Crores]

% of total value of




fund


Sponsor 2013-2014 11.46 3.02 137,287 3.06



relation

Period Covered


[Rs. In Crores]

% of total value of




fund


Sponsor 2012-2013 2.88 0.08 44,052 1.31


17






Description

2013-2014



28,672,213.039 3,888,068.582 17,709,613.678 14,850,667.943 10


76,009,239.085 2,217,961.655 20,851,869.135 57,375,331.605 10


21,869.368 110,598.896 7,023.675 125,444.589 10


8,011.816 80,894.093 12,627.837 76,278.072 10

Description

2012-2013



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


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


– 21,923.340 53.972 21,869.368 10


– 8,011.816 – 8,011.816 10

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



8 Other income of Rs. 1,898,871 (2013: Rs.3,519,620) represents Exit load (net of service tax) credited to the Scheme.




18


















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10

Oth

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esol

utio

ns






HSBC MIDCAP EQUITY FUND

HSBC Midcap Equity FundAn open-ended Diversifi ed Equity Scheme


1


Dear Investor,









Market Outlook


2






In summary,






Yours sincerely,

Puneet Chaddha



3














4






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

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

The net assets of HMEF amounted to Rs. 82.03 crores as at March 31, 2014 as compared to Rs. 82.29 crores as at March 31, 2013. Around 98.61% of the net assets were invested in equities, 2.12% of the net assets were invested in reverse repos / CBLO and (-0.73 %) were in the net current assets as at March 31, 2014.

HMEF has done well in terms of outperformance v/s benchmark due to stock selection across various sectors for the period 2013-14. The focus on reasonable growth oriented companies available at attractive valuations (PB/ROE) paid off. HMEF continues to be overweight in Auto Ancillary, Agro Chemicals, Capital Goods, Pharma and underweight in FMCG sector.

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




Since Inception

HSBC Midcap Equity Fund - Growth 28.40 -8.82 -8.51 9.51

S&P BSE Midcap (Scheme Benchmark) 13.86 -4.30 -9.14 9.19


Rs. 10,000, if invested in HMEF, would have become 12,840 9,118 9,149 22,400

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

11,386 9,570 9,086 21,818




EQUITY OUTLOOK


5




NIFTY 18.0

Sensex 18.8

S&P BSE 100 18.1

S&P BSE 200 17.2

S&P BSE 500 17.1

CNX Midcap 15.3

Source: Bloomberg







DEBT OUTLOOK







6






















7








Amount (Rs)

No. of Investors

Amount (Rs)

No. of Investors

HSBC Midcap Equity Fund 699,118.94 384 1,319,682.89 67





Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months



0 1 1 0 0 0 0 0 0 0 0


0 44 24 14 0 0 0 6 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 7 7 0 0 0 0 0 0 0 0

8



Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


1 2 3 0 0 0 0 0 0 0 0



0 0 0 0 0 0 0 0 0 0 0



0 0 0 0 0 0 0 0 0 0 0




0 13 12 0 0 0 0 1 0 0 0

IV Others 0 18 15 2 0 0 0 1 0 0 0

Total 1 224 200 17 0 0 0 8 0 0 0

Note:

* active folios









Sd/-

Dilip J. Thakkar

Trustee

MumbaiJuly 15, 2014

9



HSBC Mutual Fund

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
















10





Sd/-



11


Rs. in Lakhs

HSBC MIDCAP EQUITY FUNDAs at

March 31, 2014As at

March 31, 2013

LIABILITIES1 Unit Capital 4,957.91 6,497.062 Reserves & Surplus2.1 Unit Premium Reserves (2,252.20) (2,909.89)2.2 Unrealised Appreciation Reserve 1,362.05 –2.3 Other Reserves 4,174.38 4,642.233 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 106.80 129.33

TOTAL 8,348.94 8,358.73




TOTAL 8,348.94 8,358.73



12



Rs. in Lakhs

HSBC MIDCAP EQUITY FUNDCurrent


Previous Year ended

March 31, 2013


investments(1,534.62) 605.62


(A) (1,349.96) 903.05

2 EXPENSES2.1 Management fees 127.59 144.472.2 Service tax on Management fees 15.77 17.862.3 Transfer agents fees and expenses 10.76 15.852.4 Custodian fees 1.20 4.272.5 Trusteeship fees 0.30 0.032.6 Commission to Agents * – –2.7 Marketing & Distribution expenses 51.08 82.572.8 Audit fees 1.21 1.172.9 Investor Education Expenses 1.49 1.002.10 Other operating expenses 12.38 6.302.11 Less:Expenses to be Reimbursed by the Investment Manager (5.23) –

(B) 216.55 273.52

3 NET REALISED GAINS / (LOSSES) FORTHE YEAR (A - B = C) (1,566.51) 629.53

4 Change in Unrealised Depreciation invalue of investments and derivatives (D) 2,291.92 (1,216.06)

5 NET GAINS / (LOSSES) FOR THE YEAR [E = (C - D)] 725.41 (586.53)

6 Change in unrealised appreciation inthe value of investments and derivatives (F) (1,362.05) –

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) (636.64) (586.53)7.1 Add: Balance transfer from Unrealised Appreciation Reserve 1,362.05 –7.2 Less: Balance transfer to Unrealised Appreciation Reserve – –

7.3 Add / (Less): Equalisation (1,193.26) (1,282.04)


8 TOTAL 4,174.38 4,642.23


10 Retained Surplus / (Defi cit) carried forward toBalance Sheet 4,174.38 4,642.23



13



HSBC MIDCAP EQUITY FUND Current


Previous Year ended

March 31, 2013


Open





High





Low





End






End 8,242 8,229

Average (AAuM)1 7,435 10,266


4. Expense Ratio:









14



HSBC MIDCAP EQUITY FUND Current


Previous Year ended

March 31, 2013


Retail

Regular Plan Dividend – –


Corporate



8. Returns (%):

a. Last One Year

Scheme



Benchmark

S&P BSE Mid Cap 13.8967 (0.7900)

b. Since Inception

Scheme



Benchmark

S&P BSE Mid Cap 9.1895 8.4400


15



HSBC MIDCAP EQUITY FUND1 Investments:



1.3 Investments in Associates and Group Companies as of year ended March 31, 2014 is NIL.

1.4 Open positions of Securities Borrowed and / or Lent by the Scheme as of the year ended March 31, 2014 and March 31, 2013 are NIL.





2014 2013

Equity Shares

– Appreciation 238,178,364 28.90 75,367,764 9.16

– Depreciation 101,973,744 12.37 304,560,068 37.01

1.7 The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2013 - 2014 (excluding accretion of discount) is Rs. 474,013,676 and Rs. 696,560,504 respectively being 63.75% and 93.69% of the average daily net assets.

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







Relation

Period Covered


% of Total Business




Fund


Associate 2013-2014 1.74 26.77 923,486 21.14


Associate 2013-2014 – – 4,031 0.09

16




Relation

Period Covered


% of Total Business




Fund


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


Associate 2012-2013 0.03 0.16 10,363 0.15




relation

Period Covered


[Rs. In Crores]

% of total value of




paid by the fund


Sponsor 2013-2014 1.55 1.32 18,595 1.33



relation

Period Covered


[Rs. In Crores]

% of total value of



(on accrual basis)


fund


Sponsor 2012-2013 2.22 0.95 34,810 2.21





Description

2013-2014



29,433,413.197 2,499,255.878 9,890,097.589 22,042,571.486 10


35,498,219.471 725,397.190 8,797,415.087 27,426,201.574 10


30,411.628 147,858.915 93,134.338 85,136.205 10


8,570.423 31,592.214 14,927.493 25,235.144 10


17


Description

2012-2013



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


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


– 30,411.628 – 30,411.628 10


– 8,570.423 – 8,570.423 10




8 Other Income of Rs. 135,909 (2013: Rs.410,045) represents Exit load (net of service tax) credited to the scheme, Recovery from CAMS towards error in redemption processing, Written off of old reconciliation items, provision for expenses written back as no longer required and IPO expenses written back.

9 HSBC Small Cap Fund merged into HSBC Midcap Equity Fund, with effect from April 26, 2014 in accordance with applicable guidelines issued by SEBI. Accordingly, HSBC Small Cap Fund ceased to exist from this date. The merger was approved by the Board of Directors of the HSBC Asset Management India Private Limited and Board of Trustees of the Fund as well as SEBI.




18


















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10

Oth

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ns






HSBC UNIQUE OPPORTUNITIES FUND

HSBC Unique Opportunities FundAn open-ended Equity Scheme


1


Dear Investor,









Market Outlook


2






In summary,






Yours sincerely,

Puneet Chaddha



3














4






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

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

The net assets of HUOF amounted to Rs. 46.12 crores as at March 31, 2014 compared to Rs. 51.50 crores as at March 31, 2013. Around 98.93% of the net assets were invested in equities, 1.64% of the net assets were invested in reverse repos / CBLO and (-0.57%) were in net current assets as at March 31, 2014.

During the period 2013 - 2014, HUOF was slightly overweight in cyclical sectors like Financials and Materials and hence outperformed the Scheme benchmark driven by a cyclical rally towards the end of the fi nancial year.

Date of Inception : 21 March 2007 Absolute (%) Compounded Annualized (%)




Since Inception

HSBC Unique Opportunities Fund - Growth 17.03 4.82 -9.79 3.31



Rs. 10,000, if invested in HUOF, would have become 11,703 10,482 9,021 12,572


11,665 10,541 9,045 17,422



*HUOF is undergoing a change in its investment objective, investment strategy etc. and will be re-named as the HSBC Dividend Yield Equity Fund. The changes being in the nature of fundamental attribute changes, the investors have been notifi ed of the same giving then an option to redeem from the Fund. The change will be effective from July 18, 2014. Kindly refer the notice dated May 26, 2014 (published in Financial Express and Navshakti newspapers dated May 27, 2014 and available on www.assetmanagement.hsbc.com/in) for more details.


EQUITY OUTLOOK


5




NIFTY 18.0

Sensex 18.8

S&P BSE 100 18.1

S&P BSE 200 17.2

S&P BSE 500 17.1

CNX Midcap 15.3

Source: Bloomberg







DEBT OUTLOOK







6






















7








Amount (Rs)

No. of Investors

Amount (Rs)

No. of Investors

HSBC Unique Opportunities Fund – – 1,795,620.43 71





Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months



0 1 1 0 0 0 0 0 0 0 0


0 44 24 14 0 0 0 6 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 7 7 0 0 0 0 0 0 0 0

8



Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


1 2 3 0 0 0 0 0 0 0 0



0 0 0 0 0 0 0 0 0 0 0



0 0 0 0 0 0 0 0 0 0 0




0 13 12 0 0 0 0 1 0 0 0

IV Others 0 18 15 2 0 0 0 1 0 0 0

Total 1 224 200 17 0 0 0 8 0 0 0

Note:

* active folios









Sd/-

Dilip J. Thakkar

Trustee

MumbaiJuly 15, 2014

9




HSBC Mutual Fund

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

Opportunities Fund, (the “Scheme”), which comprise the Balance Sheet as at March 31, 2014 and the related Revenue Account for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.


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











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

10



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


Sd/-



11


Rs. in Lakhs

HSBC UNIQUE OPPORTUNITIES FUNDAs at

March 31, 2014As at

March 31, 2013

LIABILITIES1 Unit Capital 3,666.09 4,826.272 Reserves & Surplus2.1 Unit Premium Reserves (4,292.13) (5,333.72)2.2 Unrealised Appreciation Reserve 1,285.15 774.472.3 Other Reserves 3,949.46 4,883.483 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 52.71 59.80

TOTAL 4,661.28 5,210.30

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares 4,564.74 4,942.621.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – –1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –


2 Deposits – –3 Other Current Assets3.1 Cash & Bank Balance 1.63 1.793.2 CBLO / Reverse Repo Lending 75.65 249.783.3 Others 19.26 16.114 Deferred Revenue Expenditure – –


TOTAL 4,661.28 5,210.30



12



Rs. in Lakhs

HSBC UNIQUE OPPORTUNITIES FUNDCurrent


Previous Year ended

March 31, 2013




(A) 369.73 421.842 EXPENSES2.1 Management fees 79.27 87.262.2 Service tax on Management fees 9.80 10.792.3 Transfer agents fees and expenses 6.68 9.622.4 Custodian fees 0.70 2.542.5 Trusteeship fees 0.19 0.022.6 Commission to Agents * – –2.7 Marketing & Distribution expenses 33.57 50.812.8 Audit fees 0.68 0.732.9 Investor Education Expenses 0.93 0.602.10 Other operating expenses 3.13 3.912.11 Less:Expenses to be Reimbursed by the Investment Manager – –

(B) 134.95 166.28



5 NET GAINS / (LOSSES) FOR THE YEAR [E = (C - D)] 234.78 255.56

6 Change in unrealised appreciation inthe value of investments and derivatives (F) 510.67 131.97

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 745.45 387.537.1 Add: Balance transfer from Unrealised Appreciation Reserve – –7.2 Less: Balance transfer to Unrealised Appreciation Reserve 510.67 (131.97)7.3 Add / (Less): Equalisation (1,168.80) (1,891.17)7.4 Transfer from Reserve Fund 4,883.48 6,519.09

8 TOTAL 3,949.46 4,883.48





13



HSBC UNIQUE OPPORTUNITIES FUND Current


Previous Year ended

March 31, 2013


Open

Regular Plan - Growth Option 10.6718 10.1530

Regular Plan - Dividend Option 10.6718 10.1530



High





Low





End






End 4,609 5,151



4. Expense Ratio:









14


HSBC UNIQUE OPPORTUNITIES FUND Current


Previous Year ended

March 31, 2013


Retail

Regular Plan - Dividend Option – –


Corporate

Regular Plan - Dividend Option – –


8. Returns (%):

a. Last One Year

Scheme



Benchmark

S&P BSE200 16.6967 8.2600

b. Since Inception

Scheme



Benchmark

S&P BSE200 8.2099 6.8000



15




1 Investments:

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

1.2 Open Positions of derivatives as of years ended March 31, 2014 and March 31, 2013 is NIL

1.3 Investments in Associates and Group Companies as of years ended March 31, 2014 and March 31, 2013 are NIL

1.4 Open position of Securities Borrowed and / or Lent by the Scheme as of the year ended March 31, 2014 and March 31, 2013 are NIL.


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



2014 2013

Equity Shares

– Appreciation 134,340,015 29.13 106,022,228 20.58

– Depreciation 5,824,968 1.26 28,574,444 5.55




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





Relation

Period Covered


% of Total Business




Fund


Associate 2013 - 2014 0.04 5.49 368,858 11.85


Associate 2013 - 2014 – – 4,198 0.13

16




Relation

Period Covered


% of Total Business




Fund


Associate 2012 - 2013 1.72 67.68 637,405 14.52


Associate 2012 - 2013 – – 6,562 0.15




relation

Period Covered


[Rs. In Crores]

% of total value of




fund


Sponsor 2013 - 2014 1.39 2.21 16,754 2.22



relation

Period Covered


[Rs. In Crores]

% of total value of



(on accrual basis)


fund


Sponsor 2012 - 2013 1.94 0.33 39,019 4.42





Description

2013 - 2014



27,842,762.493 110,672.073 7,276,352.686 20,677,081.880 10


20,418,156.050 8,501.969 4,450,058.721 15,976,599.298 10


797.516 4,561.300 1,137.126 4,221.690 10


997.530 3,984.230 1,992.317 2,989.443 10


17


Description

2012 - 2013



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


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


– 1,240.502 442.986 797.516 10


– 997.530 – 997.530 10




8 Other income of Rs. 3,691 (2013: 88,547) represents Exit load (net of service tax) credited to the Scheme and provision for expenses written back since no longer required.




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HSBC SMALL CAP FUND

HSBC Small Cap FundAn open-ended Equity Scheme


1

HSBC SMALL CAP FUND

Dear Investor,









Market Outlook


2

HSBC SMALL CAP FUND





In summary,






Yours sincerely,

Puneet Chaddha



3

HSBC SMALL CAP FUND













4

HSBC SMALL CAP FUND





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

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

The net assets of HSCF amounted to Rs. 15.08 crores as at March 31, 2014 compared to Rs. 13.77 crores as at March 31, 2013. Around 98.21% of the net assets were invested in equities, 3.92% of the net assets were invested in reverse repos / CBLO and (-2.13%) were in the net current assets as at March 31, 2014.

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

Date of Inception : 24 March 2008 Absolute (%) Compounded Annualized (%)




Since Inception

HSBC Small Cap Fund - Growth 35.67 -6.02 -18.39 2.93

S&P BSE Small Cap (Scheme Benchmark) 19.09 -14.05 -20.74 0.29


Rs. 10,000, if invested in HSCF, would have become 13,567 9,398 8,161 11,903

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

11,909 8,595 7,926 10,175



* HSBC Small Cap Fund merged with HSBC Midcap Equity Fund with effect from April 26, 2014 and consequently ceases to exist.


EQUITY OUTLOOK


5

HSBC SMALL CAP FUND



NIFTY 18.0

Sensex 18.8

S&P BSE 100 18.1

S&P BSE 200 17.2

S&P BSE 500 17.1

CNX Midcap 15.3

Source: Bloomberg







DEBT OUTLOOK







6

HSBC SMALL CAP FUND





















7

HSBC SMALL CAP FUND







Amount (Rs)

No. of Investors

Amount (Rs)

No. of Investors

HSBC Small Cap Fund 17,500.00 9 583,203.78 23





Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months



0 1 1 0 0 0 0 0 0 0 0


0 44 24 14 0 0 0 6 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 7 7 0 0 0 0 0 0 0 0

8

HSBC SMALL CAP FUND


Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


1 2 3 0 0 0 0 0 0 0 0



0 0 0 0 0 0 0 0 0 0 0



0 0 0 0 0 0 0 0 0 0 0




0 13 12 0 0 0 0 1 0 0 0

IV Others 0 18 15 2 0 0 0 1 0 0 0

Total 1 224 200 17 0 0 0 8 0 0 0

Note:

* active folios









Sd/-

Dilip J. Thakkar

Trustee

MumbaiJuly 15, 2014

9

HSBC SMALL CAP FUND


HSBC Mutual Fund

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

(the “Scheme”), which comprise the Balance Sheet as at March 31, 2014 and the related Revenue Account for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.











Report on Other Legal and Regulatory Requirement

7. As required by section 55(4) of the Regulations, we report that:




10

HSBC SMALL CAP FUND




Sd/-



11

HSBC SMALL CAP FUND

Rs. in Lakhs

HSBC SMALL CAP FUNDAs at

March 31, 2014As at

March 31, 2013

LIABILITIES1 Unit Capital 1,297.32 1,639.022 Reserves & Surplus2.1 Unit Premium Reserves (269.25) (344.97)2.2 Unrealised Appreciation Reserve 30.24 –2.3 Other Reserves 447.91 83.273 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 46.11 84.69

TOTAL 1,552.33 1,462.01

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares 1,481.71 1,264.801.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – 112.471.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – –1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –



TOTAL 1,552.33 1,462.01Notes to Accounts - Annexure I


12

HSBC SMALL CAP FUND


Rs. in Lakhs

HSBC SMALL CAP FUNDCurrent


Previous Year ended

March 31, 2013


investments(549.91) 68.76


(A) (504.14) 117.36

2 EXPENSES2.1 Management fees 21.55 27.452.2 Service tax on Management fees 2.66 3.392.3 Transfer agents fees and expenses 1.88 2.902.4 Custodian fees 0.21 0.802.5 Trusteeship fees 0.05 0.012.6 Commission to Agents * – –2.7 Marketing & Distribution expenses 9.09 14.492.8 Audit fees 0.22 0.202.9 Investor Education Expenses 0.26 0.182.10 Other operating expenses 3.47 1.322.11 Less:Expenses to be Reimbursed by the Investment Manager (2.06) –

(B) 37.33 50.74

3 NET REALISED GAINS / (LOSSES) FORTHE YEAR (A - B = C) (541.47) 66.62

4 Change in Unrealised Depreciation in value ofinvestments and derivatives (D) 948.18 89.43

5 NET GAINS / (LOSSES) FOR THE YEAR [E = (C - D)] 406.71 (22.81)

6 Change in unrealised appreciation in the valueof investments and derivatives (F) (30.24) –

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 376.47 (22.81)

7.1 Add: Balance transfer from Unrealised Appreciation Reserve 30.24 –7.2 Less: Balance transfer to Unrealised Appreciation Reserve – –7.3 Add / (Less): Equalisation (42.07) (117.17)7.4 Transfer from Reserve Fund 83.27 223.25

8 TOTAL 447.91 83.27


10 Retained Surplus / (Defi cit) carried forward toBalance sheet 447.91 83.27



13

HSBC SMALL CAP FUND


HSBC SMALL CAP FUND Current


Previous Year ended

March 31, 2013


Open





High





Low





End






End 1,506 1,377



4. Expense Ratio:









14

HSBC SMALL CAP FUND


HSBC SMALL CAP FUND Current


Previous Year ended

March 31, 2013


Retail



Corporate



8. Returns (%):

a. Last One Year

Scheme



Benchmark

S&P BSE Small Cap 19.1457 (10.0300)

b. Since Inception

Scheme



Benchmark

S&P BSE Small Cap 0.2890 (3.5300)


15

HSBC SMALL CAP FUND


HSBC SMALL CAP FUND1 Investments:




1.4 Open position of Securities Borrowed and / or Lent by the scheme as of the years ended March 31, 2014 and March 31, 2013 are Nil.





2014 2013

Equity Shares

– Appreciation 39,555,058 26.26 7,606,417 5.52

– Depreciation 36,530,725 24.25 102,424,200 74.36



1.8. Non -Traded securities in the portfolio:

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

Security Category

Fair Value (Rs.)

Percentage to Net Assets

Fair Value (Rs.)


2014 2013

Equities – – 11,247,000 8.17

16

HSBC SMALL CAP FUND






Relation

Period Covered


% of Total Business




Fund


Associate 2013-2014 0.01 0.63 43,495 5.11


Associate 2013-2014 – – 220 0.03



Relation

Period Covered


% of Total Business




Fund


Associate 2012-2013 0.44 30.66 85,435 6.87


Associate 2012-2013 – – 453 0.04




relation

Period Covered


[Rs. In Crores]

% of total value of




fund


Sponsor 2013-2014 – – – –



relation

Period Covered


[Rs. In Crores]

% of total value of




fund


Sponsor 2012-2013 0.37 0.20 4,487 3.21




17

HSBC SMALL CAP FUND


4 Unit Capital movement during the years ended March 31, 2014 and March 31, 2013 :

Description2013-2014

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


10,813,156.446 399,721.540 2,867,126.176 8,345,751.810 10


5,556,091.299 362,561.366 1,397,083.279 4,521,569.386 10


9,719.687 71,781.161 9,989.629 71,511.219 10


11,277.109 37,556.380 14,421.386 34,412.103 10

Description2012-2013

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


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


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


– 9,719.687 – 9,719.687 10


– 12,257.347 980.238 11,277.109 10




8 Other income of Rs. 1,492 (2013: 83,754) represents Exit load (net of service tax) credited to the Scheme and provision for expenses written back since no longer required.

9 HSBC Small Cap Fund merged into HSBC Midcap Equity Fund, with effect from April 26, 2014 in accordance with applicable guidelines issued by SEBI. Accordingly, HSBC Small Cap Fund ceased to exist from this date. The merger was approved by the Board of Directors of the HSBC Asset Management India Private Limited and Board of Trustees of the Fund as well as SEBI.




18

HSBC SMALL CAP FUND

















19

HSBC SMALL CAP FUND
















20

HSBC SMALL CAP FUND

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HSBC SMALL CAP FUND


HSBC Asia Pacifi c (Ex Japan) Dividend Yield FundAn open ended Fund of Funds Scheme


1

HSBC ASIA PACIFIC (EX JAPAN) DIVIDEND YIELD FUND

Dear Investor,









Market Outlook


2






In summary,






Yours sincerely,

Puneet Chaddha



3














4






HSBC Asia Pacifi c (Ex Japan) Dividend Yield Fund (HAPDF)- an open ended Fund of Funds Scheme

HAPDF seeks to provide long term capital appreciation by investing predominantly in units of HSBC Global Investment Funds (HGIF) Asia Pacifi c Ex Japan Equity High Dividend Fund (HEHDF). 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. However, there is no assurance that the investment objective of the Scheme will be achieved.

The net assets of HADPF amounted to Rs. 56.26 crores as at March 31, 2014. Around 97.42% of the net assets were invested in HSBC Global Investment Funds (HGIF) Asia Pacifi c Ex Japan Equity High Dividend Fund (overseas mutual fund), 2.78% of the net assets were invested in reverse repos / CBLO and (-0.20%) were in the net current assets as at March 31, 2014.

The Scheme was launched on February 03, 2014. The performance of the Scheme is benchmarked against MSCI AC Asia Pacifi c Ex Japan. Performance data has not been provided as the Scheme has not completed 1 year period from its launch.


EQUITY OUTLOOK



NIFTY 18.0

Sensex 18.8

S&P BSE 100 18.1

S&P BSE 200 17.2

S&P BSE 500 17.1

CNX Midcap 15.3

Source: Bloomberg




5






DEBT OUTLOOK














6
















5. UNCLAIMED DIVIDENDS & REDEMPTIONSNil.

7







Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months

I A Non receipt of Dividend on Units 0 3 2 1 0 0 0 0 0 0 0I B Interest on delayed payment of

Dividend0 1 1 0 0 0 0 0 0 0 0


0 44 24 14 0 0 0 6 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 7 7 0 0 0 0 0 0 0 0


1 2 3 0 0 0 0 0 0 0 0


0 132 132 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


Schemes0 0 0 0 0 0 0 0 0 0 0



0 13 12 0 0 0 0 1 0 0 0

IV Others 0 18 15 2 0 0 0 1 0 0 0Total 1 224 200 17 0 0 0 8 0 0 0

Note:

* active folios


8










Sd/-

Dilip J. Thakkar

Trustee

MumbaiJuly 15, 2014

9



HSBC Mutual Fund

1. We have audited the accompanying fi nancial statements of HSBC Mutual Fund - HSBC Asia Pacifi c (Ex Japan) Dividend Yield Fund (the “Scheme”), which comprise the Balance Sheet as at March 31, 2014 and the related Revenue Account for the period February 03, 2014 to March 31, 2014, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.










(b) in the case of the Revenue Account, of the net defi cit for the period February 03, 2014 to March 31, 2014.





10





Sd/-



11


Rs. in Lakhs

HSBC ASIA PACIFIC (EX JAPAN)DIVIDEND YIELD FUND#

As at March 31, 2014

LIABILITIES1 Unit Capital 5,725.862 Reserves & Surplus2.1 Unit Premium Reserves 0.00~2.2 Unrealised Appreciation Reserve –2.3 Other Reserves (99.89)3 Loans & Borrowings –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits –4.2 Other Current Liabilities & Provisions 15.53

TOTAL 5,641.50

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares –1.1.2 Preference Shares –1.1.3 Equity Linked Debentures –1.1.4 Other Debentures & Bonds –1.1.5 Securitised Debt securities –1.2 Securities Awaited Listing:1.2.1 Equity Shares –1.2.2 Preference Shares –1.2.3 Equity Linked Debentures –1.2.4 Other Debentures & Bonds –1.2.5 Securitised Debt securities –1.3 Unlisted Securities1.3.1 Equity Shares –1.3.2 Preference Shares –1.3.3 Equity Linked Debentures –1.3.4 Other Debentures & Bonds –1.3.5 Securitised Debt securities –1.4 Government Securities –1.5 Treasury Bills –1.6 Commercial Paper –1.7 Certifi cate of Deposits –1.8 Bill Rediscounting –1.9 Units of Domestic Mutual Fund –1.10 Foreign Securities 5,480.58

Total Investments 5,480.582 Deposits –3 Other Current Assets3.1 Cash & Bank Balance 0.113.2 CBLO / Reverse Repo Lending 156.293.3 Others 4.524 Deferred Revenue Expenditure (to the extent not written off) –

TOTAL 5,641.50

~ Indicates less than 0.01Notes to Accounts - Annexure I# Scheme launched during the current fi nancial year


12


Abridged Revenue Account for the period ended March 31, 2014

Rs. in Lakhs

HSBC ASIA PACIFIC (EX JAPAN) DIVIDEND

YIELD FUND#Current Period ended

March 31, 2014

1 INCOME1.1 Dividend –1.2 Interest 11.251.3 Realised Gain / (Loss) on Foreign Exchange Transactions 8.701.4 Realised Gains / (Losses) on Interscheme sale of investments –1.5 Realised Gains / (Losses) on External sale / redemption of investments (0.04)1.6 Realised Gains / (Losses) on Derivative Transactions –1.7 Other Income

(A) 19.91

2 EXPENSES2.1 Management fees 3.832.2 Service tax on Management fees 0.472.3 Transfer agents fees and expenses 1.502.4 Custodian fees 0.372.5 Trusteeship fees –2.6 Commission to Agents * –2.7 Marketing & Distribution expenses 4.082.8 Audit fees 0.832.9 Investor Education Expenses 0.112.10 Other operating expenses 1.11

2.11 Less:Expenses to be Reimbursed by the Investment Manager (2.76)

(B) 9.54

3 NET REALISED GAINS / (LOSSES) FOR THE YEAR (A - B = C) 10.37

4 Change in Unrealised Depreciation in value of investments*** (D) (111.12)

5 NET GAINS / (LOSSES) FOR THE YEAR [E = (C - D)] (100.75)

6 Change in unrealised appreciation in the value ofinvestments and derivatives (F) –

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) (100.75)

7.1 Add: Balance transfer from Unrealised Appreciation Reserve –7.2 Less: Balance transfer to Unrealised Appreciation Reserve –7.3 Add / (Less): Equalisation 0.867.4 Transfer from Reserve Fund –

8 Total (99.89)

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

10 Retained Surplus / (Defi cit) carried forward to Balance sheet (99.89)

Notes to Accounts - Annexure I* Commission to Agents is included in Marketing & Distribution expenses# Scheme launched during the current fi nancial year*** Includes Unrealised Depreciation in the value of Foreign Currency Transactions

13


Key Statistics for the period ended March 31, 2014


YIELD FUND# Current Period ended

March 31, 2014


Open

Regular Plan Growth Option N.A.

Regular Plan Dividend Option N.A.

Direct Plan - Growth Option N.A.

Direct Plan - Dividend Option N.A.

High

Regular Plan Growth Option 9.9754

Regular Plan Dividend Option 9.9754

Direct Plan - Growth Option 9.9764

Direct Plan - Dividend Option 9.9764

Low





End






End 5,626

Average (AAuM)1 5,625

3. Gross income as % of AAuM2 * 3.59%

4. Expense Ratio:

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

Regular Plan 1.74%

Direct Plan 1.04%

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

Regular Plan 0.69%

Direct Plan 0.69%

5. Net Income as a percentage of AAuM3 * –

6. Portfolio turnover ratio4 –

14



YIELD FUND# Current Period ended

March 31, 2014


Retail

Regular Plan Dividend Option –

Direct Plan - Dividend Option –

Corporate

Regular Plan Dividend Option –


8. Returns (%):

a. Last One Year

Scheme

Regular Plan Growth Option N.A.


Benchmark

MSCI AC Asia Pacifi c ex Japan. N.A.

b. Since Inception

Scheme

Regular Plan Growth Option (1.7460)

Direct Plan - Growth Option (1.6780)

Benchmark

MSCI AC Asia Pacifi c ex Japan. 2.5746


# Scheme launched during the current fi nancial year.

* Indicates annualised value

Key Statistics for the period ended March 31, 2014 (Contd...)

15


Notes to Accounts - Annexure ITo the Abridged Balance Sheet and Revenue Account for the period ended March 31, 2014

HSBC ASIA PACIFIC (EX JAPAN) DIVIDEND YIELD FUND #1 Investments:


1.2 Open Positions of derivatives for the period ended March 31, 2014 is NIL

1.3 Investments in Associates and Group Companies for the period ended March 31, 2014 is NIL.

1.4 Open positions of Securities Borrowed and / or Lent by the Scheme for the period ended March 31, 2014 is NIL.

1.5 NPAs as at period ended March 31, 2014 is NIL.

1.6 Aggregate Unrealised Gain / Loss as at the end of the fi nancial period and percentage to net assets.

Security Category Amount (Rs.) Percentage toNet Assets (%)

2014


– Appreciation – –

– Depreciation 11,112,136 1.98

1.7 The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2013-2014 (excluding accretion of discount) is Rs. 559,174,226 and Nil respectively being 1007.94% and 0.00% of the average daily net assets.

1.8 Non-Traded securities in the portfolio as on March 31, 2014 is Nil.

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




Relation

Period Covered


% of Total Business




Fund


Associate 2013-2014 54.62 93.94 – –


Associate 2013-2014 – – – –



3 None of the Investors held more than 25% of the total net assets of the Scheme at the period ended March 31, 2014.

16


4 Unit Capital movement during the period ended March 31, 2014:

Description

2013-2014


per unit (Rupees)


49,434,979.211 182,487.621 850,000.092 48,767,466.740 10


7,286,076.401 112,156.749 30,000.000 7,368,233.150 10


1,095,969.256 21,443.152 – 1,117,412.408 10


– 25,500.000 20,000.000 5,500.000 10

5 No contingent liabilities for the period ended March 31, 2014.


7 Other income credited to the Scheme is Nil.




Notes to Accounts - Annexure I (Contd...)To the Abridged Balance Sheet and Revenue Account for the period ended March 31, 2014

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20






HSBC MIP FUND

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

Abridged Annual Report 2013 - 2014*Monthly income is not assured and is subject tothe availability of distributable surplus.

1

HSBC MIP

Dear Investor,









Market Outlook


2

HSBC MIP





In summary,






Yours sincerely,

Puneet Chaddha



3

HSBC MIP













4

HSBC MIP





HSBC MIP (HMIP) - an open-ended Fund

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

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

The Scheme offers two plans: Regular Plan and Savings Plan. The Regular Plan can have up to 15% of the corpus invested in equities while the Savings Plan can have up to 25% invested in equities. The net assets of HMIP - Regular Plan (HMIP - R) amounted to Rs. 111.44 crores as at March 31, 2014 as compared to Rs. 190.42 crores as at March 31, 2013. Around 82.16% of the net assets were invested in debt and money market instruments & 15.29% of the net assets were invested in equities as at March 31, 2014. The net assets of HMIP - Savings Plan (HMIP - S) amounted to Rs. 186.36 crores as at March 31, 2014 as compared to Rs. 317.36 crores as at March 31, 2013. Around 71.55% of the net assets were invested in debt and money market instruments & 26.60% of the net assets were invested in equities as at March 31, 2014.

HMIP-R and HMIP-S also faced higher volatility in rates during the year as RBI hiked the short end rates substantially in July 2013 to counter pressure on currency. Although the measures were gradually rolled back, long end of the curve remained anchored to 8.75-9% range due to supply and absence of open market operations.

HMIP - Regular Plan

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




Since Inception

HSBC MIP - Regular Plan - Growth 6.60 10.07 5.20 7.67

CRISIL MIP Blended Index (Scheme Benchmark) 6.42 9.09 5.26 7.12

CRISIL 1 Year T-Bill Index (Standard Benchmark) 5.78 8.37 6.59 5.45

CRISIL 10 Year Gilt Index (Standard Benchmark) -0.79 11.31 2.41 4.21

Rs. 10,000, if invested in HMIP - R, would have become 10,660 11,007 10,520 21,103

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

10,642 10,909 10,526 20,049

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

10,578 10,837 10,659 17,090

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

9,921 11,131 10,241 15,170

Past performance may or may not be sustained in future. Returns data as on March 31, 2014. Data for the period April to March has been considered in all cases, except for Since Inception. ‘Since Inception’ returns are calculated on Rs. 10 invested at inception. Standard benchmark is prescribed by SEBI and is used for comparison purposes. Returns on Rs. 10,000 are point-to-point returns for the specifi c time period, invested at the start of the period. The returns provided above have been rounded off and hence there may be a minor difference between point-to-point returns vis-à-vis returns indicated above. Calculations are based on Growth NAVs.

5

HSBC MIP


HMIP - Savings Plan

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




Since Inception

HSBC MIP - Savings Plan - Growth 8.99 10.74 4.94 9.30

CRISIL MIP Blended Index (Scheme Benchmark) 6.42 9.09 5.26 7.12



Rs. 10,000, if invested in HMIP - S, would have become 10,899 11,074 10,494 24,561

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

10,642 10,909 10,526 20,049


10,578 10,837 10,659 17,090


9,921 11,131 10,241 15,170



EQUITY OUTLOOK



NIFTY 18.0

Sensex 18.8

S&P BSE 100 18.1

S&P BSE 200 17.2

S&P BSE 500 17.1

CNX Midcap 15.3

Source: Bloomberg


� Macro: We expect improvement in all the macro parameters on YoY basis. GDP growth, Industrial production growth, and Capital formation growth are likely to see recovery from last year. Key risk to

6

HSBC MIP


our call on growth recovery is weak monsoons.





DEBT OUTLOOK












7

HSBC MIP

















8

HSBC MIP




Amount (Rs)

No. of Investors

Amount (Rs)

No. of Investors

HSBC MIP - Regular Plan 449,666.85 622 263,667.06 14

HSBC MIP - Savings Plan 621,985.96 751 91,953.03 14





Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months



0 1 1 0 0 0 0 0 0 0 0


0 44 24 14 0 0 0 6 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 7 7 0 0 0 0 0 0 0 0


1 2 3 0 0 0 0 0 0 0 0


0 132 132 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0



0 0 0 0 0 0 0 0 0 0 0


9

HSBC MIP

Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months



0 13 12 0 0 0 0 1 0 0 0

IV Others 0 18 15 2 0 0 0 1 0 0 0

Total 1 224 200 17 0 0 0 8 0 0 0

Note:

* active folios









Sd/-

Dilip J. Thakkar

Trustee

MumbaiJuly 15, 2014


10

HSBC MIP



HSBC Mutual Fund

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

which comprise the Balance Sheet as at March 31, 2014 and the related Revenue Account for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.









(a) in the case of the Balance Sheet, of the state of affairs of the scheme as at March 31, 2014; and





11

HSBC MIP


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

9. In our opinion, the methods used to value non-traded securities as at March 31, 2014, as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds as mentioned in the Eighth Schedule of the Regulations issued by the Securities and Exchange Board of India, are fair and reasonable.


Sd/-



12

HSBC MIP


Rs. in Lakhs

HSBC MIP - REGULAR PLANAs at

March 31, 2014As at

March 31, 2013

LIABILITIES1 Unit Capital 8,031.08 14,589.362 Reserves & Surplus2.1 Unit Premium Reserves 218.48 615.712.2 Unrealised Appreciation Reserve 524.81 336.922.3 Other Reserves 2,369.14 3,500.023 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 67.83 323.87

TOTAL 11,211.34 19,365.88

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares 1,704.99 2,678.891.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds 5,365.42 9,710.991.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – 37.861.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – 505.131.3.5 Securitised Debt securities – –1.4 Government Securities 963.531.5 Treasury Bills – 2,324.081.6 Commercial Paper – –1.7 Certifi cate of Deposits 2,829.75 477.951.8 Bill Rediscounting – 2,535.841.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –

Total Investments 10,863.69 18,270.742 Deposits 9.87 58.193 Other Current Assets3.1 Cash & Bank Balance 1.12 128.613.2 CBLO / Reverse Repo Lending 22.33 152.683.3 Others 314.33 755.664 Deferred Revenue Expenditure – –


TOTAL 11,211.34 19,365.88


13

HSBC MIP

Abridged Balance Sheet as at March 31, 2014 (Contd...)

Rs. in Lakhs

HSBC MIP - SAVINGS PLANAs at

March 31, 2014As at

March 31, 2013

LIABILITIES1 Unit Capital 11,402.41 21,284.722 Reserves & Surplus2.1 Unit Premium Reserves 961.11 2,211.512.2 Unrealised Appreciation Reserve 1,059.58 516.362.3 Other Reserves 5,213.17 7,723.533 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 163.37 429.50

TOTAL 18,799.64 32,165.62

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares 4,956.02 6,779.521.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds 7,116.17 14,288.291.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – 149.681.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – 505.131.3.5 Securitised Debt securities – –1.4 Government Securities 1,652.33 –1.5 Treasury Bills – 4,751.921.6 Commercial Paper – –1.7 Certifi cate of Deposits 4,563.56 –1.8 Bill Rediscounting – 4,068.841.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –

Total Investments 18,288.08 30,543.382 Deposits – 67.323 Other Current Assets3.1 Cash & Bank Balance 36.79 205.473.2 CBLO / Reverse Repo Lending 26.04 244.283.3 Others 448.73 1,105.174 Deferred Revenue Expenditure – –


TOTAL 18,799.64 32,165.62


14

HSBC MIP

Rs. in Lakhs

HSBC MIP - REGULAR PLANCurrent


Previous Year ended

March 31, 2013

1 INCOME1.1 Dividend 37.97 33.721.2 Interest 1,174.11 1,336.991.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of



(A) 1,156.22 1,789.872 EXPENSES2.1 Management fees 223.86 184.042.2 Service tax on Management fees 27.67 22.752.3 Transfer agents fees and expenses 12.95 18.342.4 Custodian fees 0.91 2.972.5 Trusteeship fees 0.85 0.162.6 Commission to Agents * – –2.7 Marketing & Distribution expenses 143.10 216.332.8 Audit fees 1.64 2.702.9 Investor Education Expenses 3.17 1.942.10 Other operating expenses 8.67 11.412.11 Expenses to be Reimbursed by the Investment Manager (14.30) (56.01)

(B) 408.52 404.64

3 NET REALISED GAINS / (LOSSES) FORTHE YEAR (A - B = C) 747.70 1,385.23

4 Change in Unrealised Depreciation invalue of investments (D) (26.80) (46.96)

5 NET GAINS / (LOSSES) FOR THE YEAR [E = (C - D)] 720.90 1,432.17

6 Change in Unrealised appreciation inthe value of investments (F) 187.89 278.16

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 908.79 1,710.33

7.1 Add: Balance transfer from Unrealised Appreciation Reserve – –7.2 Less: Balance transfer to Unrealised Appreciation Reserve 187.89 (278.16)7.3 Add / (Less): Equalisation (1,184.47) 618.467.4 Transfer from Reserve Fund 3,500.02 2,282.07

7.5 Transfer from Unit Premium Reserve – –

8 TOTAL 3,036.45 4,332.70

9 Dividend Appropriation9.1 Income Distributed during the year (523.95) 728.749.2 Tax on income distributed during the year (143.36) 104.0010 Retained Surplus / (Defi cit) carried forward to

Balance sheet 2,369.14 3,500.02




15

HSBC MIP

Abridged Revenue Account for the year ended March 31, 2014 (Contd...)

Rs. in Lakhs

HSBC MIP - SAVINGS PLANCurrent


Previous Year ended

March 31, 2013

1 INCOME1.1 Dividend 109.41 96.341.2 Interest 1,703.53 1,810.571.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of



(A) 2,186.90 2,813.452 EXPENSES2.1 Management fees 359.43 276.442.2 Service tax on Management fees 44.43 34.172.3 Transfer agents fees and expenses 21.34 28.452.4 Custodian fees 1.62 5.402.5 Trusteeship fees 1.40 0.242.6 Commission to Agents * – –2.7 Marketing & Distribution expenses 209.29 266.252.8 Audit fees 2.74 4.492.9 Investor Education Expenses 5.24 2.862.10 Other operating expenses 13.70 17.212.11 Expenses to be Reimbursed by the Investment Manager (12.75) (29.45)

(B) 646.44 606.06






7.1 Add: Balance transfer from Unrealised Appreciation Reserve – –7.2 Less: Balance transfer to Unrealised Appreciation Reserve 543.22 (472.74)7.3 Add / (Less): Equalisation (3,123.95) 1,320.627.4 Transfer from Reserve Fund 7,723.53 5,167.66


8 TOTAL 6,103.83 8,750.57

9 Dividend Appropriation9.1 Income Distributed during the year (699.70) 899.069.2 Tax on income distributed during the year (190.96) 127.97




16

HSBC MIP




Previous Year ended

March 31, 2013


Open


Monthly Dividend Option 11.2060 10.8567

Quarterly Dividend Option 11.4663 11.1707


Direct Plan - Monthly Dividend Option – N.A.

Direct Plan - Quarterly Dividend Option – N.A.

High





Direct Plan - Monthly Dividend Option 11.1174 N.A.


Low





Direct Plan - Monthly Dividend Option 10.9079 –

Direct Plan - Quarterly Dividend Option – –

End5





Direct Plan - Monthly Dividend Option – –



End 11,144 19,042

Average (AAuM)1 15,846 17,531


4. Expense Ratio:


Growth Option 2.58% 2.31%

Direct Plan - Growth Option 2.06% 1.31%

17

HSBC MIP




Previous Year ended

March 31, 2013







Retail





Corporate





8. Returns (%):

a. Last One Year

Scheme


Direct Plan - Growth Option 7.1936 –

Benchmark

CRISIL MIP Blended Index 6.4349% 9.4300%

b. Since Inception

Scheme



Benchnmark


1 AAuM = Average daily net assets.

2 Gross income = amount against (A) in the Revenue account i.e. Income.

3 Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the year.

4 Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year.

5 The net asset value disclosed represents the computed NAV on March 31, 2014 (Non-business Day), and not the last declared NAV.

18

HSBC MIP




Previous Year ended

March 31, 2013


Open






Direct Plan - Quarterly Dividend Option 12.2505 N.A.

High





Direct Plan - Monthly Dividend Option 12.7338 12.5391

Direct Plan - Quarterly Dividend Option 12.8546 12.5333

Low







End5








End 18,636 31,736

Average (AAuM)1 26,185 27,006


4. Expense Ratio:




19

HSBC MIP




Previous Year ended

March 31, 2013







Retail





Corporate





8. Returns (%):

a. Last One Year

Scheme



Benchmark


b. Since Inception

Scheme



Benchnmark


1 AAuM = Average daily net assets.

2 Gross income = amount against (A) in the Revenue account i.e. Income.

3 Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the year.

4 Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year.

5 The net asset value disclosed represents the computed NAV on March 31, 2014 (Non-business Day), and not the last declared NAV.

20

HSBC MIP


HSBC MIP

1 Investments:

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

1.2 Open Positions of derivatives in Regular Plan as at years ended March 31, 2014 and March 31, 2013 are NIL.

Open Positions of derivatives in Savings Plan as at years ended March 31, 2014 and March 31, 2013 are NIL.

1.3 Investments in Associates and Group Companies as of year ended March 31, 2014 and March 31, 2013 are NIL.

1.4 Open positions of Securities Borrowed and / or Lent by the Regular Plan as of fi nancial years March 31, 2014 and March 31, 2013 are NIL.

Open positions of Securities Borrowed and / or Lent by the Savings Plan as of fi nancial years March 31, 2014 and March 31, 2013 are NIL.

1.5 NPAs for Regular Plan as on March 31, 2014 and March 31, 2013 are NIL.

NPAs for Savings Plan as on March 31, 2014 and March 31, 2013 are NIL.

1.6 Aggregate Unrealised Gain / Loss as at the end of the fi nancial years 2014 and 2013 and their percentage to net assets are as under :

Security Category 2014

REGULAR PLAN SAVINGS PLAN

Amount(Rs.)

Percentage to Net Assets (%)

Amount(Rs.)


Equity Shares

– Appreciation 59,389,511 5.33 144,223,781 7.74

– Depreciation 8,162,567 0.73 40,632,343 2.18

Non Convertible Debentures and Bonds Listed / Awaiting Listing

– Appreciation 422,064 0.04 689,898 0.04

– Depreciation 4,822,519 0.43 7,138,757 0.38

Government of India Securities

– Appreciation 465,058 0.04 782,081 0.04

– Depreciation 127,658 0.01 242,756 0.01

Commercial Paper / Certifi cate of Deposit

– Appreciation 916,790 0.08 1,827,357 0.10


21

HSBC MIP


REGULAR PLAN SAVINGS PLAN

Amount(Rs.)


Amount(Rs.)


Equity Shares

– Appreciation 48,561,692 2.55 127,061,686 4.00

– Depreciation 20,598,243 1.08 81,373,606 2.56


– Appreciation 5,650,545 0.30 5,865,369 0.18



– Appreciation – – 189,898 0.01

– Depreciation 1,720,404 0.09 3,017,800 0.10

Commercial Paper / Certifi cate of Deposit

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

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


1.7 The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2013-2014 (excluding accretion of discount) are Rs. 3,750,015,905 and Rs. 451,1519,961 respectively being 236.66% and 284.72% of the average daily net assets for Regular Plan and Rs. 5,930,974,359 and Rs. 7,255,655,401 respectively being 226.50% and 277.09% of the average daily net assets for Savings Plan.

The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2012-2013 (excluding accretion of discount) are Rs. 10,122,146,971 and Rs. 9,540,484,450 respectively being 577.37% and 544.19% of the average daily net assets for Regular Plan and Rs. 14,268,398,507 and Rs. 13,673,132,468 respectively being 528.34% and 506.30% of the average daily net assets for Savings Plan.

1.8 Non-Traded securities in the portfolio: Aggregate Value of Equity, Debt & Money Market Instruments and percentage to net assets is as

under :

2014

REGULAR PLAN SAVINGS PLANSecurity Category Amount

(Rs.)Percentage to Net Assets (%)

Amount(Rs.)


Equities – – – –

Debt Instruments – – – –

Money Market Instruments 49,905,770 4.48 – –Total 49,905,770 4.48 – –

2013

REGULAR PLAN SAVINGS PLANSecurity Category Amount

(Rs.)Percentage to Net Assets (%)

Amount(Rs.)


Equities 3,785,589 0.20 14,967,937 0.47

Debt Instruments 1,021,612,127 53.65 1,479,342,102 46.61

Money Market Instruments 301,378,978 15.83 406,884,335 12.82Total 1,326,776,693 69.68 1,901,194,375 59.91


22

HSBC MIP






Relation

Period Covered


% of Total Business


Commission paid

[Rupees]


Fund

REGULAR PLAN


Associate 2013-2014 8.82 20.71 6,281,007 45.97

HSBC InvestDirect Securities (India) Limited Associate 2013-2014 – – 23,257 0.17

SAVINGS PLAN


Associate 2013-2014 21.37 33.51 9,287,870 49.06




Relation

Period Covered


% of Total Business


Commission paid

[Rupees]


Fund

REGULAR PLAN


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

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

SAVINGS PLAN


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





relation

Period Covered


[Rs. In Crores]

% of total value of




fund

REGULAR PLAN


Sponsor 2013-2014 0.96 0.44 11,546 2.70


23

HSBC MIP



relation

Period Covered


[Rs. In Crores]

% of total value of




fund

SAVINGS PLAN


Sponsor 2013-2014 2.14 0.60 25,682 2.07



relation

Period Covered


[Rs. In Crores]

% of total value of




paid by the fund

REGULAR PLAN


Sponsor 2012-2013 0.92 0.03 11,336 2.55

SAVINGS PLAN


Sponsor 2012-2013 1.37 0.03 21,363 1.82

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


3 None of the Investors held more than 25% of the total net assets of the Schemes at the years ended March 31, 2014 and March 31, 2013.


REGULAR PLAN

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

2013-2014

Growth Option 30,599,797.881 15,251,551.850 24,487,138.662 21,364,211.069 10

Monthly Dividend Option

85,184,893.885 5,590,854.544 49,365,485.930 41,410,262.499 10

Quarterly Dividend Option

30,107,808.250 1,277,319.049 13,849,930.728 17,535,196.571 10


1,102.368 – – 1,102.368 10

Direct Plan - Monthly Dividend Option

– 1,598,553.821 1,598,553.821 – –

Direct Plan - Quarterly Dividend Option

– – – – –


24

HSBC MIP

REGULAR PLAN


2012-2013

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


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


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


N.A 1,102.368 – 1,102.368 10


N.A – – – –


N.A – – – –

SAVINGS PLAN

Description Opening Units Subscription Redemption Closing Units Face Value

per Unit (Rs.)

2013-2014

Growth Option 57,181,395.711 18,492,745.290 39,327,285.898 36,346,855.103 10


107,809,474.513 8,196,425.002 68,836,307.105 47,169,592.410 10


47,537,058.894 3,262,495.214 20,827,301.445 29,972,252.663 10


253,338.899 201,592.190 144,315.268 310,615.821 10


31,718.984 203,143.415 10,357.349 224,505.050 10


34,214.030 469.870 34,442.262 241.638 10

2012-2013

Description Opening Units Subscription Redemption Closing Units Face Value

per Unit (Rs.)

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


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


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


25

HSBC MIP


N.A 253,338.899 – 253,338.899 10


N.A 31,718.984 – 31,718.984 10


N.A 34,214.030 – 34,214.030 10

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

6 No contingent liabilities for Regular Plan and Savings Plan for the years ended March 31, 2014 and March 31, 2013.


8 Other income of Rs. 1,041,659 in Regular Plan (2013: Rs.2,055,098) and 2,233,284 (2013: Rs.2,344,638) in Savings Plan represents Exit Load (net of service tax) credited to the Scheme and Provision for Expense written back since no longer required.

9 Garnishee Notice from Income Tax Authorities

An Income tax demand of Rs. 32.58 crore-s was purported to be recovered under garnishee proceedings, by Income Tax Authorities in respect of investments made in Pass through Certifi cates (PTC) by some of the debt schemes (including matured schemes) of HSBC Mutual Fund (HSBC MF), for A.Y. 2009-2010.The said demand, impacting various players in the industry, raised originally on the trusts sponsored by IL&FS Trust Company Ltd., (Appellants) was sought to be also recovered u/s 177(3) of the Income Tax Act, from HSBC MF. HSBC MF, through its trustees fi led Writ petitions before the Bombay High Court and obtained necessary reliefs for stay of the impugned demand till the adjudication of the appeal by the fi rst Appellate Authority and six weeks thereafter. During last week of April 2013, the fi rst Appellate Authority passed its order giving part relief to Appellant. Against the order granting part relief, the Appellant as well as the income-tax department has fi led an appeal before Income-tax Appellate Tribunal. The matter is scheduled for hearing on on July 14, 2014.

Similar to AY 2009-2010, HSBC MF has received a demand notice from the Income Tax Authorities for the A.Y. 2010-2011 for Rs. 6.95 crores. HSBC MF, through its trustees, fi led a writ petition before the Bombay High Court and obtained necessary reliefs for stay of the impugned demand till the adjudication of the appeal by the fi rst Appellate Authority and six weeks thereafter. The Appellate had fi led an appeal against the fi rst Appellate Authority who disposed of the same by passing an order granting part relief on similar lines of AY 2009-2010. The Appellant has preferred an appeal to Income-tax Appellate Tribunal against the fi rst appellate authority’s order.

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




26

HSBC MIP

















27

HSBC MIP
















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HSBC INCOME FUND

HSBC Income FundAn open-ended Income Scheme


1

HSBC INCOME FUND

Dear Investor,









Market Outlook


2

HSBC INCOME FUND





In summary,






Yours sincerely,

Puneet Chaddha



3

HSBC INCOME FUND













4

HSBC INCOME FUND





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

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

The Scheme has two plans - the Investment Plan and the Short Term Plan. The net assets of HSBC Income Fund - Investment Plan (HIF - IP) amounted to Rs. 61.65 crores as at March 31, 2014 as compared to Rs. 89.77 crores as at March 31, 2013. Around 94.86% of the net assets were invested in debt and money market instruments, 1.26% of the net assets were invested in reverse repos / CBLO and 3.88% were in net current assets as at March 31, 2014. The net assets of HSBC Income Fund - Short Term Plan (HIF - STP) amounted to Rs. 727.27 crores as at March 31, 2014 as compared to Rs. 1035.16 crores as at March 31, 2013. Around 96.70% of the net assets were invested in debt and money market instruments, 0.23% of the net assets were invested in reverse repos / CBLO and 3.07% were in net current assets as at March 31, 2014.

HIF-IP and HIF - STP underperformed their benchmark due to higher volatility in rates during the year as RBI hiked the short end rates substantially in July 2013 to counter pressure on currency. Although the measures were gradually rolled back, long end of the curve remained anchored to 8.75-9% range due to supply and absence of open market operations.

HIF - IP

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




Since Inception

HSBC Income Fund - Investment Plan - Growth 1.85 11.19 8.86 6.65

CRISIL Composite Bond Fund Index (Scheme Benchmark)

4.34 9.27 7.68 5.72


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

10,185 11,119 10,886 20,725

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

10,434 10,927 10,768 18,767


9,921 11,131 10,241 17,431

HIF - STP






Since Inception

HSBC Income Fund - S T P - Growth 7.23 9.26 8.41 6.80

5

HSBC INCOME FUND



CRISIL Short Term Bond Fund Index (Scheme Benchmark)

8.79 9.09 8.28 6.64


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

10,723 10,926 10,841 21,047

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

10,879 10,909 10,828 20,691


10,578 10,837 10,659 18,205



EQUITY OUTLOOK



NIFTY 18.0

Sensex 18.8

S&P BSE 100 18.1

S&P BSE 200 17.2

S&P BSE 500 17.1

CNX Midcap 15.3

Source: Bloomberg





6

HSBC INCOME FUND




DEBT OUTLOOK














7

HSBC INCOME FUND
















8

HSBC INCOME FUND



Amount (Rs)

No. of Investors

Amount (Rs)

No. of Investors

HSBC Income Fund - Investment Plan 451,115.42 863 256,393.67 26

HSBC Income Fund - Short Term Plan 57,619.92 43 – –





Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months



0 1 1 0 0 0 0 0 0 0 0


0 44 24 14 0 0 0 6 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 7 7 0 0 0 0 0 0 0 0


1 2 3 0 0 0 0 0 0 0 0


0 132 132 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0



0 0 0 0 0 0 0 0 0 0 0


9

HSBC INCOME FUND


Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months



0 13 12 0 0 0 0 1 0 0 0

IV Others 0 18 15 2 0 0 0 1 0 0 0

Total 1 224 200 17 0 0 0 8 0 0 0

Note:

* active folios









Sd/-

Dilip J. Thakkar

Trustee

MumbaiJuly 15, 2014

10

HSBC INCOME FUND



HSBC Mutual Fund

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

(the “Scheme”), which comprise the Balance Sheet as at March 31, 2014, the related Revenue Account and Cash Flow Statement for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.


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









(c) in the case of the Cash Flow Statement, of the cash fl ows for the year ended March 31, 2014.




11

HSBC INCOME FUND


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



Sd/-



12

HSBC INCOME FUND

Rs. in Lakhs

HSBC INCOME FUND – INVESTMENT PLANAs at

March 31, 2014As at

March 31, 2013

LIABILITIES1 Unit Capital 3,248.83 5,270.04

2 Reserves & Surplus2.1 Unit Premium Reserves (622.35) (700.59)2.2 Unrealised Appreciation Reserve 4.11 11.542.3 Other Reserves 3,534.24 4,396.633 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 21.60 315.83

TOTAL 6,186.43 9,293.45

ASSETS1 Investments1.1 Listed Securities: –1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds 2,977.66 4,260.571.1.5 Securitised Debt securities 20.06 –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – 28.201.4 Government Securities 1,827.14 2,164.571.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits 1,021.83 1,838.171.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –

Total Investments 5,846.69 8,291.512 Deposits 10.35 9.603 Other Current Assets3.1 Cash & Bank Balance 8.47 133.403.2 CBLO / Reverse Repo Lending 77.82 158.473.3 Others 243.10 700.474 Deferred Revenue Expenditure – –


TOTAL 6,186.43 9,293.45



13

HSBC INCOME FUND

Abridged Balance Sheet as at March 31, 2014 (Contd...)

Rs. in Lakhs

HSBC INCOME FUND – SHORT TERM PLANAs at

March 31, 2014As at

March 31, 2013

LIABILITIES1 Unit Capital 49,741.50 89,064.58

2 Reserves & Surplus2.1 Unit Premium Reserves 3,752.01 4,661.022.2 Unrealised Appreciation Reserve 51.93 300.802.3 Other Reserves 19,181.96 9,489.233 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 351.33 600.44

TOTAL 73,078.73 104,116.07

ASSETS1 Investments1.1 Listed Securities: –1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds 42,206.73 51,849.281.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – 2,834.951.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper 2,289.96 3,152.411.7 Certifi cate of Deposits 25,860.81 42,637.521.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –

Total Investments 70,357.50 100,474.162 Deposits 29.04 12.453 Other Current Assets3.1 Cash & Bank Balance 159.07 64.563.2 CBLO / Reverse Repo Lending 166.41 908.963.3 Others 2,366.71 2,655.944 Deferred Revenue Expenditure – –


TOTAL 73,078.73 104,116.07


14

HSBC INCOME FUND

Rs. in Lakhs

HSBC INCOME FUND – INVESTMENT PLANCurrent


Previous Year ended

March 31, 2013

1 INCOME1.1 Dividend – –1.2 Interest 878.88 408.331.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of



(A) 364.17 558.402 EXPENSES2.1 Management fees 99.08 43.582.2 Service tax on Management fees 12.25 5.392.3 Transfer agents fees and expenses 5.99 3.102.4 Custodian fees 0.41 0.482.5 Trusteeship fees 0.07 0.00~2.6 Commission to Agents* – –2.7 Marketing & Distribution expenses 83.74 49.322.8 Audit fees 0.20 0.202.9 Investor Education Expenses 2.08 0.582.10 Other operating expenses 1.52 0.772.11 Less:Expenses to be Reimbursed by the Investment Manager (0.74) (14.62)

(B) 204.60 88.803 NET REALISED GAINS / (LOSSES) FOR

THE YEAR (A - B = C) 159.57 469.60

4 Change in Unrealised Depreciation invalue of investments (D) (93.76) 4.65


6 Change in unrealised appreciation inthe value of investments (F) (7.42) (7.51)


7.1 Add: Balance transfer from Unrealised Appreciation Reserve 7.42 7.517.2 Less: Balance transfer to Unrealised Appreciation Reserve – –7.3 Add / (Less): Equalisation (816.33) 2,388.077.4 Transfer from Reserve Fund 4,396.63 1,727.75


8 TOTAL 3,646.11 4,580.77


10 Retained Surplus / (Defi cit) carried forward to Balance Sheet 3,534.24 4,396.64

~ Indicates less than 0.01Notes to Accounts - Annexure I* Commission to Agents is included in Marketing & Distribution expenses.


15

HSBC INCOME FUND


Rs. in Lakhs

HSBC INCOME FUND – SHORT TERM PLANCurrent


Previous Year ended

March 31, 2013

1 INCOME1.1 Dividend – –1.2 Interest 9,118.75 7,873.121.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of



(A) 8,463.01 8,181.512 EXPENSES2.1 Management fees 406.82 336.312.2 Service tax on Management fees 50.28 41.572.3 Transfer agents fees and expenses 50.72 42.312.4 Custodian fees 7.17 16.582.5 Trusteeship fees 0.57 0.032.6 Commission to Agents* – –2.7 Marketing & Distribution expenses 603.66 527.022.8 Audit fees 1.90 1.662.9 Investor Education Expenses 20.35 10.272.10 Other operating expenses 9.34 6.422.11 Less:Expenses to be Reimbursed by the Investment Manager – –

(B) 1,150.81 982.173 NET REALISED GAINS / (LOSSES) FOR

THE YEAR (A - B = C) 7,312.20 7,199.34



6 Change in unrealised appreciation inthe value of investments (F) (248.87) 300.80


7.1 Add: Balance transfer from Unrealised Appreciation Reserve 248.87 (300.80)7.2 Less: Balance transfer to Unrealised Appreciation Reserve – –7.3 Add / (Less): Equalisation 6,189.32 4,290.227.4 Transfer from Reserve Fund 9,489.23 3,092.03


8 TOTAL 22,725.92 14,670.63

9 Dividend Appropriation9.1 Income Distributed during the year (2,788.71) 4,480.329.2 Tax on income distributed during the year (755.25) 701.09

10 Retained Surplus / (Defi cit) carried forward toBalance Sheet 19,181.96 9,489.22



16

HSBC INCOME FUND


HSBC INCOME FUND –INVESTMENT PLAN

Current Year ended March 31,

2014

Previous Year ended March 31,

2013


Open

Regular Growth Option 20.3378 18.3173

Regular Dividend Option – –

Regular Quarterly Dividend Option 11.3637 11.1764

Regular Weekly Dividend Option – –

Regular Monthly Dividend Option – –

Institutional Growth Option – –

Institutional Dividend Option – –

Institutional Weekly Dividend Option – –

Institutional Monthly Dividend Option – –

Institutional Plus Growth Option – –

Institutional Plus Weekly Dividend Option – –

Institutional Plus Monthly Dividend Option – –


Direct Plan - Dividend Option – N.A.

Direct Plan - Weekly Dividend Option – N.A.

Direct Plan - Monthly Dividend Option – N.A.


High


Regular Dividend Option 11.9141 11.6100

Regular Quarterly Dividend Option – –



Institutional Growth Option 10.0000 –

Institutional Dividend Option 10.0000 –








Direct Plan - Weekly Dividend Option – –



17

HSBC INCOME FUND




2014


2013

Low






Institutional Growth Option 10.0000 –

Institutional Dividend Option 10.0000 –











End5


















18

HSBC INCOME FUND



2014


2013


End 6,165 8,978

Average (AAuM)1 10,404 4,647


4. Expense Ratio:


Regular Growth Option 1.97% 1.91%










6. Portfolio turnover ratio4 – –


Retail










Direct Plan - Growth Option – –





Corporate




19

HSBC INCOME FUND



2014


2013













8. Returns (%):

a. Last One Year

Scheme


Institutional Growth Option N.A. N.A.

Institutional Plus Growth Option N.A. N.A.


Benchmark

CRISIL Composite Bond Fund Index 4.3172 9.3000

b. Since Inception

Scheme


Institutional Growth Option N.A. N.A.

Institutional Plus Growth Option N.A. N.A.


Benchmark

CRISIL Composite Bond Fund Index 5.7214 5.8600

1 AAuM = Average daily net assets.2 Gross income = amount against (A) in the Revenue account i.e. Income.3 Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the year.4 Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year.5 The net asset value disclosed represents the computed NAV on March 31, 2014 (Non-business

Day), and not the last declared NAV.


20

HSBC INCOME FUND

HSBC INCOME FUND –SHORT TERM PLAN


2014


2013


Open




Regular Weekly Dividend Option 10.2024 10.1597


Institutional Growth Option 15.6467 14.2427

Institutional Dividend Option 10.6388 10.4851

Institutional Weekly Dividend Option 11.5522 10.5156

Institutional Monthly Dividend Option

Institutional Plus Growth Option 11.3291 10.3022

Institutional Plus Weekly Dividend Option 10.0164 10.0577




Direct Plan - Weekly Dividend Option 10.2032 N.A.

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

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

High


Regular Dividend Option – 11.0861



Regular Monthly Dividend Option 11.1843 –


Institutional Dividend Option – 10.6414


Institutional Monthly Dividend Option 11.4878 –



Institutional Plus Monthly Dividend Option 10.0000 –



Direct Plan - Weekly Dividend Option 10.3329 10.2172




21

HSBC INCOME FUND



2014


2013

Low












Institutional Plus Monthly Dividend Option 10.0000 –






End5



















22

HSBC INCOME FUND



2014


2013


End 72,727 103,516

Average (AAuM)1 101,742 86,024


4. Expense Ratio:



Institutional Growth Option 0.75% 0.72%

Institutional Plus Growth Option 0.65% 0.62%





Institutional Plus Growth Option 0.40% 0.39%





Retail















Corporate




23

HSBC INCOME FUND



2014


2013













8. Returns (%):

a. Last One Year

Scheme





Benchmark

CRISIL Short-Term Bond Fund Index 8.7808 9.10

b. Since Inception

Scheme





Benchmark

CRISIL Short-Term Bond Fund Index 6.6371 6.4300

1 AAuM = Average daily net assets.2 Gross income = amount against (A) in the Revenue account i.e. Income.3 Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the year.4 Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year.5 The net asset value disclosed represents the computed NAV on March 31, 2014 (Non-business

Day), and not the last declared NAV.


24

HSBC INCOME FUND


HSBC INCOME FUND

1 Investments:-






by all schemes

Amount Aggregate Investments by

all schemes

2014 2013



303,181,609 555,832,950 – –

Bharti Airtel Ltd. Equities – 76,306,283 – –


Commercial Paper

– 1,243,550,000 – –


Commercial Paper

– 492,702,500 – –

1.4 Open position of Securities Borrowed and / or Lent by the Scheme as of the years ended March 31, 2014 and March 31, 2013 are NIL.

1.5 NPAs for the Scheme for the years ended March 31, 2014 and March 31, 2013 are NIL.

1.6 Aggregate Unrealised Gain / Loss as at the end of the fi nancial years 2014 and 2013 and their percentages to net assets are as under :


INVESTMENT PLAN SHORT TERM PLAN

Amount (Rupees)


Amount (Rupees)



– Appreciation 115,305 0.02 7,233,573 0.10

– Depreciation 10,574,567 1.72 34,190,434 0.47

Certifi cate of Deposits

– Appreciation 411,394 0.07 5,648,608 0.08

– Depreciation – – 455,397 0.01

Asset Backed Securities


– Depreciation 96,818 0.02 – –


– Appreciation 166,829 0.03 – –

– Depreciation 419,959 0.07 – –

25

HSBC INCOME FUND



Amount (Rupees)


Amount (Rupees)



– Appreciation 1,063,680 0.12 29,555,616 0.29

– Depreciation 23,530 0.00~ 1,472,104 0.01


– Appreciation 196,778 0.02 2,017,844 0.02

– Depreciation 83,264 0.01 2,491,787 0.02

Asset Backed Securities


– Depreciation 144,464 0.02 – –


– Appreciation 14,545 0.00~ – –

– Depreciation 1,303,656 0.15 – –


1.7. The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2013-2014 (excluding accretion of discount) are Rs. 3,352,599,512 and Rs. 3,537,242,887 respectively being 322.24% and 339.98% of the average daily net assets for Investment Plan and Rs.23,614,085,753 and Rs. 26,833,445,848 respectively being 232.10% and 263.74% of the average daily net assets for Short Term Plan.

The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2012-2013 (excluding accretion of discount) are Rs. 4,706,833,538 and Rs. 4,208,469,888 respectively being 1,012.93% and 905.68% of the average daily net assets for Investment Plan and Rs.22,701,435,356 and Rs. 17,761,204,981 respectively being 263.90% and 206.47% of the average daily net assets for Short Term Plan.

1.8. Non-Traded securities in the portfolio:

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



Fair Value (Rupees)


Fair Value (Rupees)


Debt Instruments – – 151,127,906 2.08

Money market Instruments 9,981,154 1.62 163,212,843 2.24

Total 9,981,154 1.62 314,340,749 4.32



Fair Value (Rupees)


Fair Value (Rupees)


Debt Instruments 428,876,612 47.77 5,468,424,161 52.83

Money market Instruments 183,816,745 20.47 4,578,993,084 44.23

Total 612,693,357 68.25 10,047,417,245 97.06


26

HSBC INCOME FUND


During the year 2013-14, The Hong Kong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid collection / bank charges are Nil for Short Term Plan and Investment Plan.

During the year 2012-13, The Hong Kong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid collection / bank charges amounting to Rs. 14,400 for the Investment and Nil for Short Term Plan.





Relation

Period Covered


% of Total Business received by the Fund

Commission paid

[Rupees]


Fund

INVESTMENT PLAN


Associate 2013-2014 18.12 22.92 1,887,298 18.85


SHORT TERM PLAN


Associate 2013-2014 484.45 52.83 28,126,764 51.51




Relation

Period Covered



Commission paid

[Rupees]


Fund

INVESTMENT PLAN


Associate 2012-2013 7.04 7.53 1,443,592 16.80


SHORT TERM PLAN


Associate 2012-2013 926.80 70.41 38,057,492 79.93





27

HSBC INCOME FUND

3 None of the Investors held more than 25% of the total net assets of Investment Plan and Short Term as at the years ended on March 31, 2014 and March 31, 2013.


INVESTMENT PLAN

Description Opening Units Subscription Redemption Closing Units Face Value per unit

(Rs.)

2013-2014

Regular Dividend Option 19,394,182.657 4,321,548.694 17,830,108.388 5,885,622.963 10

Regular Growth Option 33,035,257.618 33,616,852.305 40,122,448.660 26,529,661.263 10


270,964.576 54,344.680 252,331.240 72,978.016 10

SHORT TERM PLAN


2013-2014

Regular Dividend Option

370,705,152.327 121,941,485.695 319,715,551.495 172,931,086.527 10

Regular Growth Option

62,296,842.748 278,038,211.224 174,685,689.266 165,649,364.706 10

Regular Weekly Dividend Option

229,344,801.286 140,614,152.923 273,918,246.045 96,040,708.164 10

Institutional Dividend Option

574,716.029 – – 574,716.029 10

Institutional Growth Option

1,150,179.747 – – 1,150,179.747 10

Institutional Weekly Dividend Option

599,442.020 – – 599,442.020 10

Institutional Plus Growth Option

187,486,390.279 – 167,054,914.663 20,431,475.616 10

Institutional Plus Weekly Dividend Option

20,163,437.936 – – 20,163,437.936 10

Institutional Plus Monthly Dividend Option

– – – – –


17,929,537.776 24,629,333.385 23,257,134.565 19,301,736.596 10


286,992.438 369,748.973 245,211.630 411,529.781 10

Direct Plan - Weekly Dividend Option

108,286.444 11,487,365.067 11,434,378.172 161,273.339 10


28

HSBC INCOME FUND

INVESTMENT PLAN


2012-2013

Regular Dividend Option 12,511,711.693 32,246,431.523 25,363,960.559 19,394,182.657 10



– 270,964.576 – 270,964.576 10

SHORT TERM PLAN

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

2012-2013

Regular Dividend Option

189,739,498.135 485,522,821.357 304,557,167.165 370,705,152.327 10


37,385,177.849 78,505,777.953 53,594,113.054 62,296,842.748 10


164,471,325.280 336,961,936.550 272,088,460.544 229,344,801.286 10

Institutional Dividend Option

5,802,837.692 2,537,627.329 7,765,748.992 574,716.029 10


5,567,054.565 421,884.758 4,838,759.576 1,150,179.747 10


599,442.020 – – 599,442.020 10


25,660,026.111 198,640,821.722 36,814,457.554 187,486,390.279 10


11,488,632.894 25,434,885.608 16,760,080.566 20,163,437.936 10


– – – – –


– 17,929,537.776 – 17,929,537.776 10


– 286,992.438 – 286,992.438 10


– 108,286.444 – 108,286.444 10


6 No contingent liabilities for Investment Plan and Short Term Plan for the years ended March 31, 2014 and March 31, 2013.



29

HSBC INCOME FUND

8 Other Income of Rs. 578,425 (2013: Rs.1,032,995) in Investment Plan and Rs. 105,952 (2013: Rs.2,726,345) in Short Term Plan represents Exit load (net of service tax) credited to the Scheme.





10 Change in Fundamental Attributes of HSBC Income Fund –Short Term Plan

During the year, the Scheme has changed its asset allocation and modifi ed duration with effect from January 15, 2014 in accordance with regulation 18(15A) of SEBI Regulations. The Change in Fundamental Attribute of the Scheme was approved by the Board of Directors of the AMC and Board of Trustees of the Fund. The change was effected in line with the relevant provisions of SEBI (Mutual Funds) Regulations, 1996.




30

HSBC INCOME FUND

















31

HSBC INCOME FUND
















32

HSBC INCOME FUND

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HSBC INCOME FUND

HSBC Floating Rate Fund - Long Term Plan An open-ended Income Scheme


HSBC FLOATING RATE FUND - LONG TERM PLAN

1


Dear Investor,









Market Outlook


2






In summary,






Yours sincerely,

Puneet Chaddha



3














4






HSBC Floating Rate Fund - Long Term Plan (HFRF - LTP) - an open-ended Income Scheme

HFRF seeks to generate reasonable return with commensurate risk from a portfolio comprised of fl oating rate debt instruments and fi xed rate debt instruments swapped for fl oating rate returns. The Scheme may also invest in fi xed rate money market and debt instruments.

The net assets of the HFRF - LTP amounted to Rs. 112.48 crores as at March 31, 2014 as compared to Rs. 232.34 crores as at March 31, 2013. Around 99.94% of the net assets were invested in money market instruments, 0.48% was invested in reverse repos / CBLO and (-0.42%) were in net current assets as at March 31, 2014.

HFRF-LTP performed close to its benchmark by focusing on accruals and investing in the shorter-end of the yield curve. Short end yield curve also faced higher volatility in rates during the year as RBI hiked the short end rates substantially in July 2013 to counter pressure on currency.

Date of Inception : 16 November 2004 Simple Annualized (%) Compounded Annualized

(%)




Since Inception

HSBC FRF - LTP - Growth 9.21 9.17 9.38 7.68

CRISIL Liquid Fund Index (Scheme Benchmark) 9.46 8.22 8.45 6.96


Rs. 10,000, if invested HFRF - LTP, would have become 10,921 10,917 10,938 20,014

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

10,946 10,822 10,845 18,798


10,578 10,837 10,659 16,776



EQUITY OUTLOOK


5




NIFTY 18.0

Sensex 18.8

S&P BSE 100 18.1

S&P BSE 200 17.2

S&P BSE 500 17.1

CNX Midcap 15.3

Source: Bloomberg







DEBT OUTLOOK







6






















7








Amount (Rs)

No. of Investors

Amount (Rs)

No. of Investors

HSBC Floating Rate Fund - Long Term Plan 41,940.78 60 14,800.65 5





Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months



0 1 1 0 0 0 0 0 0 0 0


0 44 24 14 0 0 0 6 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 7 7 0 0 0 0 0 0 0 0

8



Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


1 2 3 0 0 0 0 0 0 0 0

II C Data corrections in Investor details 0 132 132 0 0 0 0 0 0 0 0II D Non receipt of Annual Report /

Abridged Summary0 0 0 0 0 0 0 0 0 0 0


Schemes0 0 0 0 0 0 0 0 0 0 0



0 13 12 0 0 0 0 1 0 0 0

IV Others 0 18 15 2 0 0 0 1 0 0 0Total 1 224 200 17 0 0 0 8 0 0 0

Note:

* active folios









Sd/-

Dilip J. Thakkar

Trustee

MumbaiJuly 15, 2014

9




HSBC Mutual Fund

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

Fund - Long Term Plan (the “Scheme”), which comprise the Balance Sheet as at March 31, 2014 and the related Revenue Account for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.














10






Sd/-



11


Rs. in Lakhs

HSBC FLOATING RATE FUND – LONG TERM PLAN



LIABILITIES1 Unit Capital 8,827.33 18,381.342 Reserves & Surplus2.1 Unit Premium Reserves 570.86 1,518.782.2 Unrealised Appreciation Reserve 19.04 2.522.3 Other Reserves 1,830.83 3,331.193 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 64.14 2,545.87

TOTAL 11,312.20 25,779.70

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper 1,578.24 3,419.041.7 Certifi cate of Deposits 8,462.99 19,837.481.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –


2 Deposits 1,203.98 2.443 Other Current Assets3.1 Cash & Bank Balance 9.67 8.633.2 CBLO / Reverse Repo Lending 54.31 20.053.3 Others 3.01 2,492.064 Deferred Revenue Expenditure – –


TOTAL 11,312.20 25,779.70



12



Rs. in Lakhs

HSBC FLOATING RATE FUND – LONG TERM PLAN

Current Year ended

March 31, 2014

Previous Year ended

March 31, 2013

1 INCOME1.1 Dividend – –1.2 Interest 1,532.76 3,496.951.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of investments 38.62 (18.41)1.6 Realised Gains / (Losses) on Derivative Transactions – –1.7 Other Income – –

(A) 1,571.38 3,478.54

2 EXPENSES2.1 Management fees 57.79 82.272.2 Service tax on Management fees 7.14 10.172.3 Transfer agents fees and expenses 7.22 17.562.4 Custodian fees 1.17 7.312.5 Trusteeship fees 0.09 0.032.6 Commission to Agents * – –2.7 Marketing & Distribution expenses 37.06 45.132.8 Audit fees 0.29 0.372.9 Investor Education Expenses 3.34 3.282.10 Other operating expenses 1.76 2.682.11 Expenses to be Reimbursed by the Investment Manager – –

(B) 115.86 168.80


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


6 Change in unrealised appreciation inthe value of investments (F) 16.52 2.52


7.1 Add: Balance transfer from Unrealised Appreciation Reserve – –7.2 Less: Balance transfer to Unrealised Appreciation Reserve 16.52 2.527.3 Add / (Less): Equalisation (1,824.69) 1,370.577.4 Transfer from Reserve Fund 3,331.19 1,308.29


8 TOTAL 2,962.02 5,988.60

9 Dividend Appropriation9.1 Income Distributed during the year (860.06) 2,070.749.2 Tax on income distributed during the year (271.13) 586.67


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

13



HSBC FLOATING RATE FUND – LONG TERM PLANCurrent


Previous Year ended

March 31, 2013

1. NAV per unit (Rs.):Open


Regular Daily Dividend Option – 10.1111


Regular Monthly Dividend Option 10.0064 10.0028


Institutional Daily Dividend Option – –


Institutional Fortnightly Dividend Option – –

Institutional Monthly Dividend Option 10.2196 10.1380


Direct Plan - Weekly Dividend Option 10.0083 N.A.

Direct Plan - Fortnightly Dividend Option 11.2402 N.A.

Direct Plan - Monthly Dividend Option 10.1840 N.A.High






Institutional Daily Dividend Option 10.0255 –


Institutional Fortnightly Dividend Option 10.0319 10.0346




Direct Plan - Fortnightly Dividend Option 10.0459 10.0353

Direct Plan - Monthly Dividend Option 10.2558 10.2129Low














14





Previous Year ended

March 31, 2013

End5


Regular Daily Dividend Option – –






Institutional Fortnightly Dividend Option – –




Direct Plan - Fortnightly Dividend Option – 11.2402

Direct Plan - Monthly Dividend Option – 10.1840


End 11,248 23,234

Average (AAuM)1 16,707 37,932


4. Expense Ratio:












Retail

Regular Daily Dividend Option 0.4929 0.4204







15





Previous Year ended

March 31, 2013




Corporate











8. Returns (%):

a. Last One Year

Scheme




Benchmark

CRISIL Liquid Fund Index 9.4613 8.2300

b. Since Inception

Scheme




Benchmark

CRISIL Liquid Fund Index 6.9618 6.6600

1 AAuM = Average daily net assets.2 Gross income = amount against (A) in the Revenue account i.e. Income.3 Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the year.4 Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year.5 The net asset value disclosed represents the computed NAV on March 31, 2014 (Non-business Day),

and not the last declared NAV.

16



HSBC FLOATING RATE FUND – LONG TERM PLAN1 Investments:


1.2 Open Positions of derivatives as of years ended March 31, 2014 and year ended March 31, 2013 are NIL.




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

Company Name Amount(Rs.)


Amount(Rs.)


2014 2013

Certifi cate of Deposits / Commercial Papers

– Appreciation 1,904,102 0.17 434,216 0.02

– Depreciation – – 181,770 0.01

1.7 The aggregate value of investments (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the year 2013-2014 (excluding accretion of discount) are Rs. 10,945,217,531 and Rs. 12,411,736,363 respectively being 655.13% and 742.91% of the average daily net assets.

The aggregate value of investments (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the year 2012-2013 (excluding accretion of discount) are Rs. 23,256,068,971 and Rs. 24,089,451,720 respectively being 613.09% and 635.06% of the average daily net assets.

1.8 Non -Traded securities in the portfolio: Aggregate Value of Equity, Debt & Money Market Instruments and their percentages to Net assets are as under :

Security Category Fair Value Percentage to Net Assets

Fair Value Percentage to Net Assets

2013-2014 2012-2013

Money market Instruments 321,019,101 19.21 2,325,651,516 100.10

Total 321,019,101 19.21 2,325,651,516 100.10






Relation

Period Covered


% of Total Business




Fund


Associate 2013-2014 5.51 1.47 218,001 6.59


Associate 2013-2014 – – 440 0.01

17




Relation

Period Covered


% of Total Business




Fund


Associate 2012-2013 144.39 14.61 725,878 18.81


Associate 2012-2013 3.05 0.31 21,286 0.55



3 Large Holdings in the Scheme (i.e. in excess of 25% of the net assets) as at the years ended March 31, 2014 and March 31, 2013 are NIL


Description

2013-2014


Regular Growth Option 6,469,771.109 – 4,273,858.288 2,195,912.821 10

Regular Daily Dividend Option

– 51,932,441.619 39,830,554.648 12,101,886.971 10


11,007,140.947 – 8,257,597.171 2,749,543.776 10

Regular Monthly Dividend Option

4,579,516.848 15,525.507 1,671,052.496 2,923,989.859 10


32,761,712.353 67,181,598.871 85,065,005.379 14,878,305.845 10

Institutional Daily Dividend Option

– – – – 10

Institutional Fortnightly Dividend Option

– 2,958,669.938 2,958,669.938 – 10


114,074,209.503 120,349,751.242 201,493,460.111 32,930,500.634 10


1,945,183.690 2,170,933.262 2,983,029.286 1,133,087.666 10


671,514.944 5,563,700.242 5,538,618.178 696,597.008 10


12,233,819.948 37,615,998.934 31,186,330.803 18,663,488.079 10

Direct Plan - Fortnightly Dividend Option

2,032.230 41.796 2,074.026 – 10


68,515.829 2,800.084 71,315.913 – 10


18


Description

2012-2013




65,411.670 2,746.207 68,157.877 – 10


35,580,736.918 46,852,394.637 71,425,990.608 11,007,140.947 10

Regular Monthly Dividend Option

7,910,957.546 4,389,781.941 7,721,222.639 4,579,516.848 10


7,724,187.118 168,689,501.929 143,651,976.694 32,761,712.353 10


– – – – 10

Institutional Fortnightly Dividend Option

– 893,755.031 893,755.031 – 10


180,724,113.239 485,252,257.384 551,902,161.120 114,074,209.503 10


5,243,549.160 7,042,265.016 10,340,630.486 1,945,183.690 10


– 737,320.531 65,805.587 671,514.944 10


– 19,585,073.537 7,351,253.589 12,233,819.948 10


– 2,032.230 – 2,032.230 10


– 68,515.829 – 68,515.829 10

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






19




9. HSBC Mutual Fund has changed its Fund Accountant and Custodian from JPMorgan Chase Bank to Standard Chartered Bank, with effect from May 11, 2013.



20


















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23






HSBC ULTRA SHORT TERM BOND FUND

HSBC Ultra Short Term Bond FundAn open-ended Debt Scheme


1


Dear Investor,









Market Outlook


2






In summary,






Yours sincerely,

Puneet Chaddha



3














4






HSBC Ultra Short Term Bond Fund (HUSBF) - an open ended Debt Scheme

HUSBF seeks to provide liquidity and reasonable returns by investing primarily in a mix of short term debt and money market instruments.

The net assets of HUSBF amounted to Rs. 153.71 crores as at March 31, 2014 as compared to Rs. 45.73 crores as at March 31, 2013. Around 95.64% of the net assets were invested in debt and money market instruments, 4.38% were invested in reverse repos / CBLO and (-0.02%) were in net current assets as at March 31, 2014.

HUSBF outperformed its benchmark due to focus on better placed positions on the yield curve. HUSBF also faced higher volatility in rates during the year as RBI hiked the short end rates substantially in July 2013 to counter pressure on currency.

Date of Inception : 17 October 2006 Simple Annualized (%)

Compounded Annualized (%)


Since Inception

HSBC Ultra Short Term Bond Fund - Growth $ 9.04 8.91

Customized Benchmark Index (Scheme Benchmark)* 8.60 8.18

CRISIL 1 Year T-Bill Index (Standard Benchmark) 5.78 6.59

Rs. 10,000, if invested in HUSTBF, would have become 10,904 11,365

Rs. 10,000, if invested in Customized Benchmark Index, would have become

10,860 11,250

Rs. 10,000, if invested in CRISIL 1 Year T-Bill Index, would have become 10,578 11,004


$ Pursuant to SEBI circular dated September 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 ‘Since Inception’. The inception date of HSBC Ultra Short Term Bond Fund however is October 17, 2006.

*Composite index of CRISIL Liquid Fund Index (90%) and CRISIL Short Term Bond Fund Index (10%).


EQUITY OUTLOOK


5




NIFTY 18.0

Sensex 18.8

S&P BSE 100 18.1

S&P BSE 200 17.2

S&P BSE 500 17.1

CNX Midcap 15.3

Source: Bloomberg







DEBT OUTLOOK







6






















7








Amount (Rs)

No. of Investors

Amount (Rs)

No. of Investors

HSBC Ultra Short Term Bond Fund – – 74,903.12 8





Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months



0 1 1 0 0 0 0 0 0 0 0


0 44 24 14 0 0 0 6 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 7 7 0 0 0 0 0 0 0 0

8



Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


1 2 3 0 0 0 0 0 0 0 0


0 132 132 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


Schemes0 0 0 0 0 0 0 0 0 0 0



0 13 12 0 0 0 0 1 0 0 0

IV Others 0 18 15 2 0 0 0 1 0 0 0Total 1 224 200 17 0 0 0 8 0 0 0

Note:

* active folios









Sd/-

Dilip J. Thakkar

Trustee

MumbaiJuly 15, 2014

9




HSBC Mutual Fund

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

Bond Fund (the “Scheme”), which comprise the Balance Sheet as at March 31, 2014 and the related Revenue Account for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.














10




9. In our opinion, the methods used to value non-traded securities as at March 31, 2014, as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustee of HSBC Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds as mentioned in the Eighth Schedule of the Regulations issued by the Securities and Exchange Board of India, are fair and reasonable.


Sd/-



11


Rs. in Lakhs

HSBC ULTRA SHORT TERM BOND FUNDAs at

March 31, 2014As at

March 31, 2013

LIABILITIES1 Unit Capital 14,523.81 4,401.122 Reserves & Surplus2.1 Unit Premium Reserves (49.91) (47.00)2.2 Unrealised Appreciation Reserve 36.85 1.922.3 Other Reserves 860.37 217.033 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 424.84 21.32

TOTAL 15,795.96 4,594.39

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds 1,000.02 –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper 1,270.64 477.951.7 Certifi cate of Deposits 11,130.13 3,951.241.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –

Total Investments 13,400.79 4,429.192 Deposits 1,300.00 –3 Other Current Assets3.1 Cash & Bank Balance 374.95 0.743.2 CBLO / Reverse Repo Lending 672.79 162.383.3 Others 47.43 2.084 Deferred Revenue Expenditure – –


TOTAL 15,795.96 4,594.39



12



Rs. in Lakhs

HSBC ULTRA SHORT TERM BOND FUNDCurrent


Previous Year ended

March 31, 2013



1.6 Realised Gains / (Losses) on Derivative Transactions – –1.7 Other Income – 0.24

(A) 697.70 529.17

2 EXPENSES2.1 Management fees 37.70 37.562.2 Service tax on Management fees 4.66 4.642.3 Transfer agents fees and expenses 3.07 2.412.4 Custodian fees 0.46 0.792.5 Trusteeship fees 0.05 0.00 ~2.6 Commission to Agents * – –2.7 Marketing & Distribution expenses 24.01 14.272.8 Audit fees 0.40 0.202.9 Investor Education Expenses 1.49 0.622.10 Other operating expenses 1.58 0.74

2.11 Expenses to be Reimbursed by the Investment Manager (1.21) –

(B) 72.21 61.23


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


6 Change in Unrealised appreciation in the valueof investments (F) 34.93 1.92

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 660.42 469.857.1 Add: Balance transfer from Unrealised Appreciation Reserve – –7.2 Less: Balance transfer to Unrealised Appreciation Reserve 34.93 1.927.3 Add / (Less): Equalisation 459.06 (72.17)7.4 Transfer from Reserve Fund 217.03 248.17


8 TOTAL 1,301.58 643.93


10 Retained Surplus / (Defi cit) carried forward to Balance sheet 860.37 217.03

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

13





Previous Year ended

March 31, 2013






Institutional Daily Dividend Option 10.0077 10.0035



Institutional Plus Growth Option – ! – !

Institutional Plus Daily Dividend Option 11.3786 10.4233


Institutional Plus Monthly Dividend Option – ! – !


Direct Plan - Daily Dividend Option 10.0119 N.A.

Direct Plan - Weekly Dividend Option 10.0413 N.A.High








Institutional Plus Growth Option – – !





Direct Plan - Daily Dividend Option 10.0960 10.0150

Direct Plan - Weekly Dividend Option 10.0837 10.0628Low

Regular Growth Option 15.3583 14.1810Regular Daily Dividend Option 9.9400 9.9938Regular Weekly Dividend Option 9.9753 10.0331Institutional Growth Option 10.4251 10.0000Institutional Daily Dividend Option 9.9401 9.9933Institutional Weekly Dividend Option 9.9782 10.0342Institutional Monthly Dividend Option 10.1107 10.1385Institutional Plus Growth Option – – !Institutional Plus Daily Dividend Option 11.4061 10.4262Institutional Plus Weekly Dividend Option 10.1086 10.1637Institutional Plus Monthly Dividend Option – –

14





Previous Year ended

March 31, 2013




End5








Institutional Plus Growth Option – – !



Institutional Plus Monthly Dividend Option – – !





End 15,371 4,573


3.Gross income as % of AAuM2 9.37% 9.01%

4. Expense Ratio:




Institutional Plus Growth Option 0.27% –



Regular Growth Option 0.51% 0.64%Institutional Growth Option 0.51% 0.64%Institutional Plus Growth Option 0.51% 0.64%Direct Plan - Growth Option 0.51% 0.64%




Retail






15




Previous Year ended

March 31, 2013

Institutional Plus Daily Dividend Option – –

Institutional Plus Weekly Dividend Option 0.7636 0.4780Institutional Plus Monthly Dividend Option – –Direct Plan - Daily Dividend Option 0.6856 0.1634Direct Plan - Weekly Dividend Option 0.7302 0.1794Direct Plan - Monthly Dividend Option – –

Corporate

Regular Daily Dividend Option 0.6259 0.3691Regular Weekly Dividend Option 0.6516 0.3625Institutional Daily Dividend Option 0.6632 –Institutional Weekly Dividend Option 0.6741 0.6307Institutional Monthly Dividend Option 0.6833 0.6332Institutional Plus Daily Dividend Option – 0.6415Institutional Plus Weekly Dividend Option 0.7164 0.4097Institutional Plus Monthly Dividend Option – –Direct Plan - Daily Dividend Option 0.6491 0.1401Direct Plan - Weekly Dividend Option 0.6845 0.1538Direct Plan - Monthly Dividend Option – –

8. Returns (%):

a. Last One Year

SchemeRegular Growth Option 8.5009 8.2900Institutional Growth Option 9.0378 –Institutional Plus Growth Option – –Direct Plan - Growth Option 9.6206 N.A.

Benchmark

CRISIL Composite Index ^^ 8.6030 N.A.

b. Since Inception

SchemeRegular Growth Option 7.0823 6.8600Institutional Growth Option 1.7321 8.0600Institutional Plus Growth Option – –Direct Plan - Growth Option 9.8249 0.4700

Benchmark

CRISIL Composite Index ^^ 8.1777 7.8800


and not the last declared NAV.! No Units Outstnding.^^ Composite Index of CRISIL Liquid Find Index (90%) and CRISIL Short Term Bond Fund Index (10%).


16




1 Investments:




1.4 Open position of Securities Borrowed and / or Lent by the Scheme as of fi nancial years ended 2014 and 2013 are NIL.

1.5 NPAs as on March 31, 2014 and March 31, 2013 are NIL.




2014 2013

Certifi cate of Deposit / Commercial Paper

– Appreciation 3,368,791 0.22 383,341 0.08

– Depreciation – – 191,720 0.04


– Appreciation 316,150 0.02 – –


1.7 The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2013-2014 (excluding accretion of discount) are Rs. 4,722,715,370 and Rs. 3,888,897,110 respectively being 633.95% and 522.02% of the average daily net assets.

The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2012-2013 (excluding accretion of discount) are Rs. 3,653,270,169 and Rs. 3,636,083,139 respectively being 621.99% and 619.06% of the average daily net assets.

1.8 Non-Traded securities in the portfolio :

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

Security Category Fair Value (Rs.)

% to Net Assets

Fair Value (Rs.)

% to Net Assets

2014 2013

Money market Instruments 108,738,098 7.07 442,918,256 96.81

Total 108,738,098 7.07 442,918,256 96.81

17







Relation

Period Covered


% of Total Business




Fund


Associate 2013-2014 190.36 66.20 685,012 37.33


Associate 2013-2014 – – 563 0.03



Relation

Period Covered


% of Total Business




Fund


Associate 2012-2013 39.96 38.97 423,316 35.38


Associate 2012-2013 0.03 0.03 756 0.06






Description

2013-2014


Regular Growth Option 2,436,001.458 – 1,030,232.904 1,405,768.554 10

Regular Daily Dividend Option 15,390,605.713 – 6,766,181.721 8,624,423.992 10

Regular Weekly Dividend Option 6,645,619.910 – 2,738,031.292 3,907,588.618 10

Institutional Growth Option 7,082,404.822 96,722,173.398 53,628,950.563 50,175,627.657 10


5,271,465.429 119,928,894.674 72,451,018.234 52,749,341.869 10


3,516,678.792 28,051,043.465 14,733,586.912 16,834,135.345 10


812,072.786 15,211,105.152 9,429,623.277 6,593,554.661 10


18


Description

2013-2014


Institutional Plus Growth Option – – – – –

Institutional Plus Daily Dividend Option

200,543.261 – – 200,543.261 10


2,475,971.582 – 2,016,228.18 459,743.404 10


– – – – 10

Direct Plan - Growth Option 964.41 3,502,936.42 485,695.73 3,018,205.091 10

Direct Plan - Daily Dividend Option

156,334.81 1,410,995.77 553,639.420 1,013,691.156 10


22,508.55 303,254.88 70,298.42 255,465.010 10


– – – –

Description

2012-2013



Regular Daily Dividend Option 27,489,098.477 22,089,882.061 34,188,374.825 15,390,605.713 10

Regular Weekly Dividend Option 14,659,248.751 6,171,951.664 14,185,580.505 6,645,619.910 10

Institutional Growth Option 392,324.569 7,669,618.269 979,538.016 7,082,404.822 10


2,384,465.606 57,625,950.204 54,738,950.381 5,271,465.429 10


2,558,153.268 3,541,344.466 2,582,818.942 3,516,678.792 10


739,032.754 1,412,608.247 1,339,568.215 812,072.786 10

Institutional Plus Growth Option – – – – –


200,543.261 – – 200,543.261 10


2,362,320.532 113,651.050 – 2,475,971.582 10


– – – – 10

Direct Plan - Growth Option – 964.41 – 964.407 10


– 186,408.24 30,073.435 156,334.806 10


– 22,508.55 – 22,508.549 10


– – – – –


19


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



8 Other Income of Rs. NIL (2013: Rs. 23,667) represents Exit load ( net of service tax) credited to the Scheme.








20


















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23






HSBC Cash FundAn open-ended Liquid Scheme


HSBC Cash Fund

1

HSBC Cash Fund

Dear Investor,









Market Outlook


2

HSBC Cash Fund





In summary,






Yours sincerely,

Puneet Chaddha



3

HSBC Cash Fund













4

HSBC Cash Fund





HSBC Cash Fund (HCF) - an open-ended Liquid Scheme*

HCF aims to provide reasonable returns, commensurate with low risk while providing a high level of liquidity, through a portfolio of money market and debt securities.

The net assets of HCF amounted to Rs. 1394.74 crores as at March 31, 2014 as compared to Rs. 469.01 crores as at March 31, 2013. The entire net asset remains invested in debt and money market instruments including reverse repos / CBLO as at March 31, 2014.

HCF performed broadly in line with its benchmark for a year due to conservative investments in line with the internal guidelines alongwith focus on accruals and credits.

Date of Inception : 4 December 2002 Simple Annualized (%) Compounded Annualized

(%)

Scheme Name & Benchmarks Last 7 Days as on 31

March 2014

Last 15 Days as on 31

March 2014

Last 30 Days as on 31

March 2014


Since Inception

HSBC Cash Fund - Growth 10.31 9.92 9.44 9.42 8.98

CRISIL Liquid Fund Index (Scheme Benchmark)

13.20 12.94 11.69 9.46 8.76

CRISIL 91 Day T-Bill Index (Standard Benchmark)

12.05 11.69 10.15 8.55 8.24

Rs. 10,000, if invested in HCF, would have become

10,020 10,041 10,078 10,942 12,802

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

10,025 10,053 10,096 10,946 12,727

Rs. 10,000, if invested in CRISIL 91 Day T-Bill Index, would have become

10,023 10,048 10,083 10,855 12,554


* Pursuant to SEBI circular dated September 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 December 04, 2002.


EQUITY OUTLOOK

The Sensex returned 18.8% for the FY ended March 2014. It is the highest fi scal year return since FY10. While the rally looks strong on annual basis, it wasn’t without its share of ups and downs. In fact, Sensex

5

HSBC Cash Fund


gave negative returns over the fi rst fi ve months when hopes of economic recovery were completely negated by ballooning current account defi cit and depreciating currency. The market rebounded smartly over the next 7 months of the fi scal to post smart gains. The market gain was largely linked to hope of pro-reform government formation at the center as state election results and opinion poll results poured in through this period. Improvement in current account helped too.


NIFTY 18.0

Sensex 18.8

S&P BSE 100 18.1

S&P BSE 200 17.2

S&P BSE 500 17.1

CNX Midcap 15.3

Source: Bloomberg







DEBT OUTLOOK




6

HSBC Cash Fund



















7

HSBC Cash Fund









Scheme

Unclaimed Dividends Unclaimed Redemptions

Amount (Rs)

No. of Investors

Amount (Rs)

No. of Investors

HSBC Cash Fund – – 958,148.72 13




8

HSBC Cash Fund



Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months



0 1 1 0 0 0 0 0 0 0 0


0 44 24 14 0 0 0 6 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 7 7 0 0 0 0 0 0 0 0


1 2 3 0 0 0 0 0 0 0 0



0 0 0 0 0 0 0 0 0 0 0



0 0 0 0 0 0 0 0 0 0 0




0 13 12 0 0 0 0 1 0 0 0

IV Others 0 18 15 2 0 0 0 1 0 0 0

Total 1 224 200 17 0 0 0 8 0 0 0

Note:

* active folios# including against its authorized persons / distributors / employees etc.





9

HSBC Cash Fund





Sd/-

Dilip J. Thakkar

Trustee

MumbaiJuly 15, 2014

10

HSBC Cash Fund



HSBC Mutual Fund

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















11

HSBC Cash Fund


9. In our opinion, the methods used to value non-traded securities, where applicable, as at March 31, 2014, as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds as mentioned in the Eighth Schedule of the Regulations issued by the Securities and Exchange Board of India, are fair and reasonable.


Sd/-




12

HSBC Cash Fund

Rs. in Lakhs

HSBC CASH FUNDAs at

March 31, 2014As at

March 31, 2013

LIABILITIES1 Unit Capital 122,593.78 45,002.622 Reserves & Surplus2.1 Unit Premium Reserves 1,740.81 1,797.752.2 Unrealised Appreciation Reserve 18.68 0.782.3 Other Reserves 15,120.83 99.653 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 18,245.35 1,568.09

TOTAL 157,719.45 48,468.89

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills 7,423.92 –1.6 Commercial Paper 27,244.36 10,416.311.7 Certifi cate of Deposits 81,048.03 35,786.921.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –


2 Deposits 40,001.00 1,641.003 Other Current Assets3.1 Cash & Bank Balance 144.37 101.473.2 CBLO / Reverse Repo Lending 1,574.72 511.253.3 Others 283.05 11.944 Deferred Revenue Expenditure – –


TOTAL 157,719.45 48,468.89



13

HSBC Cash Fund


Rs. in Lakhs

HSBC CASH FUNDCurrent


Previous Year ended

March 31, 2013



1.6 Realised Gains / (Losses) on Derivative Transactions – –1.7 Other Income 0.22 –

(A) 17,467.76 3,403.48

2 EXPENSES2.1 Management fees – 33.222.2 Service tax on Management fees – 4.112.3 Transfer agents fees and expenses 43.73 17.572.4 Custodian fees 5.14 4.552.5 Trusteeship fees 1.08 0.022.6 Commission to Agents * – –2.7 Marketing & Distribution expenses 94.46 39.902.8 Audit fees 4.62 1.572.9 Investor Education Expenses 38.06 5.092.10 Other operating expenses 19.17 5.612.11 Expenses to be Reimbursed by the Investment Manager (90.41) (7.59)

(B) 115.85 104.05

3 NET REALISED GAINS / (LOSSES)FOR THE YEAR (A - B = C) 17,351.91 3,299.43

4 Change in Unrealised Depreciation invalue of investments (D) (1.85) –




7.1 Add: Balance transfer from Unrealised Appreciation Reserve – –

7.2 Less: Balance transfer to Unrealised Appreciation Reserve 17.90 0.78

7.3 Add / (Less): Equalisation 8,272.12 2,197.95

7.4 Transfer from Reserve Fund 99.65 (3,059.51)


8 TOTAL 25,721.83 2,437.87

9 Dividend Appropriation9.1 Income Distributed during the year (7,958.31) 1,786.629.2 Tax on income distributed during the year (2,642.69) 551.6010 Retained Surplus / (Defi cit) carried forward to Balance sheet 15,120.83 99.65



14

HSBC Cash Fund




Previous Year ended

March 31, 2013


Regular Growth Option 1,832.4527 16.9586

Regular Daily Dividend Option 1,020.0185 10.1958

Regular Weekly Dividend Option 1,002.3966 10.0197

Institutional Growth Option 1,866.8709 17.1827

Institutional Daily Dividend Option 1,086.0890 10.4430

Institutional Weekly Dividend Option – 10.8656

Institutional Monthly Dividend Option – 10.5243

Institutional Plus Growth Option 1,169.7318 10.7376

Institutional Plus Daily Dividend Option 1,001.3459 10.0085

Institutional Plus Weekly Dividend Option 1,111.3623 10.8389

Institutional Plus Monthly Dividend Option 1,000.7958 –

Direct Plan - Growth Option 1,169.7357 N.A.

Direct Plan - Daily Dividend Option 1,001.3457 N.A.

Direct Plan - Weekly Dividend Option 1,111.3632 N.A.

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

Regular Growth Option 1,984.2385 1,832.4454

Regular Daily Dividend Option 1,019.3000 1,020.0175

Regular Weekly Dividend Option 1,003.8159 1,003.3051

Institutional Growth Option 2,034.5807 1,866.8594

Institutional Daily Dividend Option 1,097.1197 1,086.0742



Institutional Plus Growth Option 1,278.7433 1,169.7357

Institutional Plus Daily Dividend Option 1,000.5600 1,001.3457

Institutional Plus Weekly Dividend Option 1,113.2171 1,112.5219

Institutional Plus Monthly Dividend Option 1,010.7483 1,008.0930

Direct Plan - Growth Option 1,278.8880 1,169.7357

Direct Plan - Daily Dividend Option 1,000.5600 1,001.3457

Direct Plan - Weekly Dividend Option 1,113.2216 1,112.5230

Direct Plan - Monthly Dividend Option 1,008.9963 1,006.2828Low

Regular Growth Option 1,832.8752 16.9636

Regular Daily Dividend Option 1,017.0751 10.1930

Regular Weekly Dividend Option 1,000.6227 10.0169

Institutional Growth Option 1,867.3306 17.1877

Institutional Daily Dividend Option 1,086.3483 10.4401



Institutional Plus Growth Option 1,170.0418 10.7408


15

HSBC Cash Fund




Previous Year ended

March 31, 2013

Institutional Plus Weekly Dividend Option 1,109.4241 10.8413

Institutional Plus Monthly Dividend Option 1,000.4834 10.0000


Direct Plan - Daily Dividend Option 998.9356 1,000.5600


Direct Plan - Monthly Dividend Option 1,000.0000 1,000.0000End

Regular Growth Option 1,985.7907 1,832.4527

Regular Daily Dividend Option 1,020.0973 1,020.0185

Regular Weekly Dividend Option 1,002.3480 1,002.3966

Institutional Growth Option 2,036.2810 1,866.8709

Institutional Daily Dividend Option 1,098.0366 1,086.0890



Institutional Plus Growth Option 1,279.8467 1,169.7318

Institutional Plus Daily Dividend Option 1,001.4233 1,001.3459

Institutional Plus Weekly Dividend Option 1,111.4480 1,111.3623

Institutional Plus Monthly Dividend Option 1,000.9211 1,000.7958


Direct Plan - Daily Dividend Option 1,001.4241 1,001.3457


Direct Plan - Monthly Dividend Option 1,000.8667 N.A.


End 139,474 46,901

Average (AAuM)1 190,295 39,362


4. Expense Ratio:


Regular Plan 1.00% 0.98%Institutional Plan 0.35% 0.39%Institutional Plus Plan 0.04% 0.11%Direct Plan 0.03% 0.01%



Institutional Plan 0.00% 0.08%

Institutional Plus Plan 0.00% 0.08%




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

Regular Daily Dividend Option 63.7781 37.6071Regular Weekly Dividend Option 62.8257 36.0313

16

HSBC Cash Fund



Previous Year ended

March 31, 2013Institutional Daily Dividend Option 64.9057 35.9359





Institutional Plus Monthly Dividend Option 70.2989 31.0377



Direct Plan - Monthly Dividend Option 45.0764 4.9433Corporate








Institutional Plus Monthly Dividend Option 67.3268 29.7705




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

SchemeRegular Growth Option 8.3712 8.0700Institutional Growth Option 9.0780 8.9500Institutional Plus Growth Option 9.4161 8.6600Direct Plan - Growth Option 9.4286 N.A.BenchmarkCRISIL Liquid Fund Index 9.4613% 8.2300%

b. Since InceptionSchemeRegular Growth Option 6.2436 6.0400Institutional Growth Option 6.5431 8.7300Institutional Plus Growth Option 2.5427 6.2800Direct Plan - Growth Option 9.3219 2.1000BenchmarkCRISIL Liquid Fund Index 8.7613% 6.5100%



17

HSBC Cash Fund


HSBC CASH FUND

1 Investments:-


1.2 Open Positions of derivatives as of years ended March 31, 2014 and March 31, 2013 end are NIL.

1.3 Investments in Associates and Group Companies:

(Rupees)


Amount Aggregate Investments by

all schemes


by all schemes

2014 2013



– 555,832,950 – –



Commercial Paper

1,243,550,000 1,243,550,000 – –


Commercial Paper

492,702,500 492,702,500 – –

1.4 Open position of Securities Borrowed and / or Lent by the Scheme as of fi nancial years ended March 31, 2014 and March 31, 2013 are NIL.


1.6 Aggregate Unrealised Gain / Loss as at the end of the fi nancial years March 31, 2014 and March 31, 2013 are as under:


(%)


(%)

2014 2013

Certifi cates of Deposit / Commercial Paper

– Appreciation 1,997,166 0.01 77,953 0.00~

– Depreciation 128,715 0.00~ – –




18

HSBC Cash Fund

1.8 Non-Traded securities in the portfolio:

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


(%)


(%)

2014 2013

Money market Instruments 10,586,567,433 75.90 4,620,323,377 98.51

Total 10,586,567,433 75.90 4,620,323,377 98.51






Relation

Period Covered


% of Total Business




Fund


Associate 2013-2014 1,009.56 2.09 2,095,639 24.44


Associate 2013-2014 – – 4,810 0.06



Relation

Period Covered


% of Total Business




Fund


Associate 2012-2013 661.49 4.58 1,479,963 48.26


Associate 2012-2013 1,225.00 8.48 123,911 4.04





19

HSBC Cash Fund


Description

2013-2014


per unit (Rupees)


44,875.018 – 16,627.341 28,247.677 1,000


287,455.100 – 49,320.250 238,134.850 1,000


143,127.096 – 50,904.919 92,222.177 1,000


3,205.031 – – 3,205.031 1,000


8,676.627 – 275.228 8,401.399 1,000


– – – – 1,000


– – – – 1,000


304,502.783 49,925,334.362 45,376,873.834 4,852,963.311 1,000


2,089,629.300 129,633,386.427 127,258,208.996 4,464,806.731 1,000


296,441.035 356,912.566 539,826.401 113,527.200 1,000


131,532.689 246,995.058 262,603.264 115,924.483 1,000


300,784.943 126,571,885.154 125,901,631.124 971,038.973 1,000


862,991.501 131,118,497.514 130,614,321.975 1,367,167.040 1,000


27,040.690 26,658.302 53,643.579 55.413 1,000


– 29,267.378 25,582.589 3,684.789 1,000


20

HSBC Cash Fund

Description

2012-2013

Opening Units

Subscription Redemption Closing UnitsFace Value

per unit (Rupees)

Regular Growth Option 109,317.863 487,742.491 552,185.336 44,875.018 1,000


344,224.272 416,928.998 473,698.170 287,455.100 1,000


172,201.535 258,641.809 287,716.247 143,127.096 1,000


19,372.826 54,051.284 70,219.079 3,205.031 1,000


246,775.055 230,471.699 468,570.127 8,676.627 1,000


4,748.391 369,417.671 374,166.061 – 1,000


3,181.374 – 3,181.374 – 1,000


65,030.584 16,995,102.624 16,755,630.425 304,502.783 1,000


884,909.549 96,040,425.912 94,835,706.161 2,089,629.300 1,000


567.587 745,690.344 449,816.897 296,441.035 1,000


– 209,370.663 77,837.974 131,532.689 1,000


– 3,060,288.687 2,759,503.744 300,784.943 1,000


– 16,845,387.408 15,982,395.907 862,991.501 1,000


– 62,295.874 35,255.184 27,040.690 1,000


– – – – 1,000




8 Other Income of Rs. 22,193 / - (2013: Rs. NIL) represents Reimbursement from Investment Manager for backdated transactions.

9 Garnishee Notice from Income Tax Authorities An Income tax demand of Rs. 32.58 crore-s was purported to be recovered under garnishee proceedings,

by Income Tax Authorities in respect of investments made in Pass through Certifi cates (PTC) by some of the debt schemes (including matured schemes) of HSBC Mutual Fund (HSBC MF), for A.Y. 2009-2010.


21

HSBC Cash Fund

The said demand, impacting various players in the industry, raised originally on the trusts sponsored by IL&FS Trust Company Ltd., (Appellants) was sought to be also recovered u/s 177(3) of the Income Tax Act, from HSBC MF. HSBC MF, through its trustees fi led Writ petitions before the Bombay High Court and obtained necessary reliefs for stay of the impugned demand till the adjudication of the appeal by the fi rst Appellate Authority and six weeks thereafter. During last week of April 2013, the fi rst Appellate Authority passed its order giving part relief to Appellant. Against the order granting part relief, the Appellant as well as the income-tax department has fi led an appeal before Income-tax Appellate Tribunal. The matter is scheduled for hearing on on July 14, 2014.



10 Change in the Face Value of Units of HSBC Cash Fund

Pursuant to approval from Board of Directors of HSBC Asset Management (India) Private Limited and Trustees of the Fund, the following changes were effected in HSBC Cash fund during the fi nancial year ended March 31, 2013. The Net Asset Value (NAV) per unit under all the Plans / Options of the Scheme was reset to refl ect the change in face value of units of the Scheme from Rs. 10/- to Rs. 1000/- and the balance unit holding of existing investors under all the Plans / Options of the Scheme was also adjusted with effect from December 30, 2012. The change did not impact the current value of the unit holder’s investments in the Scheme. Further, unit holders did not incur any tax liability due to change in face value of the units of the Scheme. As a result, the applicable NAV per unit of all the Plans / Options of the Scheme was based on Rs. 1000/- for all valid Purchases / Switch-in and valid Redemptions / Switch-out requests to be effected from NAV on December 30, 2012 and thereafter




22

HSBC Cash Fund

















23

HSBC Cash Fund
















24

HSBC Cash Fund

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HSBC Cash Fund





HSBC Gilt FundAn open-ended Gilt Scheme


HSBC GILT FUND

1

HSBC GILT FUND

Dear Investor,









Market Outlook


2

HSBC GILT FUND





In summary,






Yours sincerely,

Puneet Chaddha



3

HSBC GILT FUND













4

HSBC GILT FUND





HSBC Gilt Fund (HGF) - an open-ended Gilt Scheme

HGF seeks to generate reasonable returns through investments in Government Securities of various maturities. The AMC’s view of interest rate trends will be refl ected in the maturities of securities in which the scheme is invested.

The net assets of HGF amounted to Rs. 2.64 crores as at March 31, 2014 as compared to Rs. 2.20 crores as at March 31, 2013. Around 28.54% of the net assets were invested in reverse repos / CBLO and 69.24 % were invested in government securities and 2.22% were in net current assets as at March 31, 2014.

HGF underperformed its benchmark due to higher volatility in rates during the year as RBI hiked the short end rates substantially in July 2013 to counter pressure on currency. Although the measures were gradually rolled back, long end of the curve remained anchored to 8.75-9% range due to supply and absence of open market operations.

Date of Inception : 5 December 2003 Simple Annualized (%) Compounded Annualized

(%)




Since Inception

HSBC Gilt Fund - Growth 1.99 12.37 8.15 4.30

I-Sec Composite Bond Fund Index (Scheme Benchmark) 3.95 11.71 6.77 6.50


Rs. 10,000, if invested in HGF, would have become 10,199 11,237 10,815 15,453

Rs. 10,000, if invested in I-Sec Composite Bond Fund Index, would have become

10,395 11,171 10,677 19,156


9,921 11,131 10,241 15,295



EQUITY OUTLOOK


5

HSBC GILT FUND



NIFTY 18.0

Sensex 18.8

S&P BSE 100 18.1

S&P BSE 200 17.2

S&P BSE 500 17.1

CNX Midcap 15.3

Source: Bloomberg







DEBT OUTLOOK







6

HSBC GILT FUND





















7

HSBC GILT FUND







Amount (Rs)

No. of Investors

Amount (Rs)

No. of Investors

HSBC Gilt Fund 7,395.57 2 – –





Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months



0 1 1 0 0 0 0 0 0 0 0


0 44 24 14 0 0 0 6 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 7 7 0 0 0 0 0 0 0 0

8

HSBC GILT FUND


Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


1 2 3 0 0 0 0 0 0 0 0



0 0 0 0 0 0 0 0 0 0 0



0 0 0 0 0 0 0 0 0 0 0




0 13 12 0 0 0 0 1 0 0 0

IV Others 0 18 15 2 0 0 0 1 0 0 0

Total 1 224 200 17 0 0 0 8 0 0 0

Note:

* active folios









Sd/-

Dilip J. Thakkar

Trustee

MumbaiJuly 15, 2014

9

HSBC GILT FUND


HSBC Mutual Fund

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
















10

HSBC GILT FUND




Sd/-



11

HSBC GILT FUND

Rs. in Lakhs

HSBC GILT FUNDAs at

March 31, 2014As at

March 31, 2013

LIABILITIES1 Unit Capital 176.12 154.502 Reserves & Surplus2.1 Unit Premium Reserves 48.27 56.792.2 Unrealised Appreciation Reserve – –2.3 Other Reserves 39.38 9.543 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 0.99 6.04

TOTAL 264.76 226.87

ASSETS1 Investments1.1 Listed Securities: –1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities 182.62 116.411.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – –1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –

Total Investments 182.62 116.41

2 Deposits 0.59 –3 Other Current Assets3.1 Cash & Bank Balance 0.68 0.623.2 CBLO / Reverse Repo Lending 75.27 82.083.3 Others 5.60 27.764 Deferred Revenue Expenditure – –


TOTAL 264.76 226.87



12

HSBC GILT FUND


Rs. in Lakhs

HSBC GILT FUNDCurrent


Previous Year ended

March 31, 2013

1 INCOME1.1 Dividend – –1.2 Interest 22.76 14.511.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of investments (15.04) 7.391.6 Realised Gains / (Losses) on Derivative Transactions – –1.7 Other Income 0.02 0.06

(A) 7.74 21.96

2 EXPENSES2.1 Management fees 1.23 0.752.2 Service tax on Management fees 0.15 0.092.3 Transfer agents fees and expenses 0.16 0.122.4 Custodian fees 0.00~ –2.5 Trusteeship fees 0.00 0.00~2.6 Commission to Agents* – –2.7 Marketing & Distribution expenses 0.99 0.552.8 Audit fees 0.20 0.202.9 Investor Education Expenses 0.06 0.022.10 Other operating expenses 0.28 0.222.11 Less:Expenses to be Reimbursed by the Investment Manager (0.17) (0.31)

(B) 2.90 1.64


4 Change in Unrealised Depreciation in value ofinvestments (D) 0.31 0.36


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


7.1 Add: Balance transfer from Unrealised Appreciation Reserve – –7.2 Less: Balance transfer to Unrealised Appreciation Reserve – –7.3 Add / (Less): Equalisation 25.11 (22.42)7.4 Transfer from Reserve Fund 9.54 13.21


8 TOTAL 39.80 10.74


10 Retained Surplus / (Defi cit) carried forward toBalance Sheet 39.38 9.54

~ Indicates less than 0.01Notes to Accounts - Annexure I* Commission to Agents is included in Marketing & Distribution expenses.

13

HSBC GILT FUND




Previous Year ended

March 31, 2013


Open



Weekly Dividend Option 9.9928 9.9259


Direct Plan - Dividend Option – N.A.

Direct Plan - Weekly Dividend Option – N.A.

High





Direct Plan - Dividend Option 15.6888 –

Direct Plan - Weekly Dividend Option 10.0603 –

Low





Direct Plan - Dividend Option 15.1754 –


End5








End 264 221

Average (AAuM)1 277 179


4. Expense Ratio:



Dividend Option 1.05% 0.92%

Weekly Dividend Option 1.05% 0.84%



Direct Plan - Weekly Dividend Option 0.55% –

14

HSBC GILT FUND




Previous Year ended

March 31, 2013



Dividend Option 0.44% 0.42%

Weekly Dividend Option 0.44% 0.42%







Retail



Corporate



8. Returns (%):

a. Last One Year

Scheme


Direct Plan - Growth Option 2.5166 –

Benchmark

I-Sec Composite Index 3.9054 11.6600

b. Since Inception

Scheme



Benchmark

I-Sec Composite Index 6.4959 6.7800



15

HSBC GILT FUND


HSBC GILT FUND1 Investments: 1.1 It is confi rmed that investments of the Scheme are registered in the name of the Trustees for the

benefi t of the Scheme’s unitholders.


1.3 Investments in Associates and Group Companies as of period ended March 31, 2014 is NIL.



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

Security Category Amount (Rupees)


Amount (Rupees)


2014 2013


– Appreciation 1,188 0.00~ 3,662 0.0166

– Depreciation 36,311 0.14 70,126 0.3176


1.7 The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2013-2014 (excluding accretion of discount) are Rs. 112,384,923 and Rs. 104,295,237 respectively being 405.94% and 376.72% of the average daily net assets.

The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2012-2013 (excluding accretion of discount) are Rs. 339,031,566 and Rs. 3,30,124,445 respectively being 1,894.03% and 1,844.28% of the average daily net assets.

1.8 Non-Traded securities in the portfolios as at March 31, 2014 and March 31, 2013 are NIL.






Relation

Period Covered


% of Total Business


Commission paid

[Rupees]


Fund


Associate 2013-2014 2.72 62.95 32,642 33.78


Associate 2013-2014 – – – –

16

HSBC GILT FUND

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


Relation

Period Covered


% of Total Business


Commission paid

[Rupees]


Fund


Associate 2012-2013 0.51 27.08 12,593 27.74


Associate 2012-2013 – – – –



3 None of the Investors held more than 25% of the total net assets of the Scheme at the year ended March 31, 2014 and March 31, 2013.


Description

2013-2014

Opening Units

Subscription Redemption Closing Units Face Value per unit (Rupees)

Growth Option 929,165.878 1,516,449.358 1,170,921.396 1,274,693.840 10

Dividend Option 531,932.957 1,329,212.240 1,412,272.688 448,872.509 10

Weekly Dividend Option 75,352.097 3,436.528 47,942.547 30,846.078 10


8,522.373 24,012.255 25,780.655 6,753.973 10


– 55,055.903 55,055.903 – 10

Description

2012-2013

Opening Units

Subscription Redemption Closing Units Face Value per unit (Rupees)

Growth Option 647,560.833 735,836.637 454,231.592 929,165.878 10

Dividend Option 198,080.264 574,592.200 240,739.507 531,932.957 10

Weekly Dividend Option 111,306.586 72,850.739 108,805.228 75,352.097 10


– 8,522.373 – 8,522.373 10


– – – – 10


17

HSBC GILT FUND




8 Other Income of Rs. 1,796 (2013: 6,320) represents Exit load (net of service tax) credited to the scheme.





10 Litigations Pending

Pursuant to a complaint fi led by certain investors, SEBI had issued a Show Cause notice dated August 7, 2009 to the Board of Trustees of the Fund, the Fund, HSBC Asset Management (India) Private Limited and the then CEO of the HSBC Asset Management (India) Private Limited, (together the “respondents”) pertaining to changes made in the Scheme Information Document of HSBC Gilt Fund via Addendums dated January 05, 2009 and March 02, 2009. However, after considering the submissions made by the respondents, SEBI, vide its order dated April 23, 2010 disposed off the Show Cause Notice dated August 7, 2009. Aggrieved by this Order, two appeals were fi led with the Securities Appellate Tribunal (SAT) by certain investors (the “appellant”) of HSBC Gilt Fund. SAT issued Orders dated May 03, 2011 and July 05, 2012 in response to these appeals, directing the respondents to comply with Regulation 18(15A) of the SEBI (Mutual Funds) Regulations, 1996 and provide an exit option to the appellants of the case at the then prevailing Net Asset Value. An appeal was fi led against these Orders by the respondents before the Supreme Court. . During the year, the Supreme Court upheld the Order of SAT and dismissed the appeal of the respondents through its Order dated January 15, 2014. Accordingly, HSBC Asset Management India Private Limited has complied with the Order of the Supreme Court read with the SAT Order by making the required payment to the investors.




18

HSBC GILT FUND

















19

HSBC GILT FUND
















20

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HSBC GILT FUND





HSBC FLEXI DEBT FUND

HSBC Flexi Debt FundAn open-ended Debt Scheme


1


Dear Investor,









Market Outlook


2






In summary,






Yours sincerely,

Puneet Chaddha



3














4






HSBC Flexi Debt Fund (HFDF) - an open ended Debt Scheme

HFDF seeks to deliver returns in the form of interest income and capital gains, along with high liquidity, commensurate with the current view on the markets and the interest rate cycle, through active investment in debt and money market instruments.

The net assets of HFDF amounted to Rs. 540.42 crores as at March 31, 2014 as compared to Rs. 792.49 crores as at March 31, 2013. Around 97.11% of the net assets were invested in debt and money market instruments, 0.18% was invested in reverse repos / CBLO and 2.71% were in the net current assets as at March 31, 2014.

HFDF underperformed its benchmark due to higher volatility in rates during the year as RBI hiked the short end rates substantially in July 2013 to counter pressure on currency. Although the measures were gradually rolled back, long end of the curve remained anchored to 8.75-9% range due to supply and absence of open market operations.

Date of Inception : 5 October 2007 Simple Annualized (%) Compounded Annualized

(%)




Since Inception

HSBC Flexi Debt Fund - Growth 3.69 11.26 9.54 8.38

CRISIL Composite Bond Fund Index (Scheme Benchmark) 4.34 9.27 7.68 6.54


Rs. 10,000, if invested in HFDF, would have become 10,369 11,126 10,954 16,862

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

10,434 10,927 10,768 15,091


9,921 11,131 10,241 14,147



EQUITY OUTLOOK


5




NIFTY 18.0

Sensex 18.8

S&P BSE 100 18.1

S&P BSE 200 17.2

S&P BSE 500 17.1

CNX Midcap 15.3

Source: Bloomberg







DEBT OUTLOOK







6






















7








Amount (Rs)

No. of Investors

Amount (Rs)

No. of Investors

HSBC Flexi Debt Fund 17 1 – –





Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months



0 1 1 0 0 0 0 0 0 0 0


0 44 24 14 0 0 0 6 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 7 7 0 0 0 0 0 0 0 0

8



Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


1 2 3 0 0 0 0 0 0 0 0



0 0 0 0 0 0 0 0 0 0 0



0 0 0 0 0 0 0 0 0 0 0




0 13 12 0 0 0 0 1 0 0 0

IV Others 0 18 15 2 0 0 0 1 0 0 0

Total 1 224 200 17 0 0 0 8 0 0 0

Note:

* active folios









Sd/-

Dilip J. Thakkar

Trustee

MumbaiJuly 15, 2014

9


Auditors’ Report


HSBC Mutual Fund

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

(the “Scheme”), which comprise the Balance Sheet as at March 31, 2014, the related Revenue Account and Cash Flow for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.


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













10






Sd/-



11


Rs. in Lakhs

HSBC FLEXI DEBT FUNDAs at

March 31, 2014As at

March 31, 2013

LIABILITIES1 Unit Capital 34,546.76 58,640.482 Reserves & Surplus2.1 Unit Premium Reserves 2,191.00 2,731.382.2 Unrealised Appreciation Reserve 58.16 156.892.3 Other Reserves 17,245.94 17,720.273 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 295.96 2,727.75

TOTAL 54,337.82 81,976.77

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds 25,937.05 33,416.531.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities 8,559.04 14,444.111.5 Treasury Bills – –1.6 Commercial Paper – 2,944.991.7 Certifi cate of Deposits 17,985.74 22,216.251.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –

Total Investments 52,481.83 73,021.882 Deposits 66.16 –3 Other Current Assets3.1 Cash & Bank Balance 5.25 1,326.463.2 CBLO / Reverse Repo Lending 94.91 2,521.393.3 Others 1,689.67 5,107.044 Deferred Revenue Expenditure – –


TOTAL 54,337.83 81,976.77Notes to Accounts - Annexure I


12



Rs. in Lakhs

HSBC FLEXI DEBT FUNDCurrent


Previous Year ended

March 31, 2013


investments(4,805.31) 1,502.56


(A) 4,096.59 5,571.73

2 EXPENSES2.1 Management fees 590.99 351.652.2 Service tax on Management fees 73.05 43.462.3 Transfer agents fees and expenses 44.49 24.722.4 Custodian fees 4.12 5.042.5 Trusteeship fees 0.68 0.032.6 Commission to Agents* – –2.7 Marketing & Distribution expenses 951.35 809.062.8 Audit fees 1.41 1.272.9 Investor Education Expenses 21.02 6.222.10 Other operating expenses 7.79 4.712.11 Less:Expenses to be Reimbursed by the Investment Manager – (420.59)

(B) 1,694.90 825.57


4 Change in Unrealised Depreciationin value of investments (D) (573.76) 70.02


6 Change in unrealised appreciation in the value ofinvestments (F) (98.73) 134.68


7.1 Add: Balance transfer from Unrealised Appreciation Reserve 98.73 –7.2 Less: Balance transfer to Unrealised Appreciation Reserve – 134.687.3 Add / (Less): Equalisation (1,189.46) 12,089.80



8 TOTAL 18,358.74 20,130.07

9 Dividend Appropriation9.1 Income Distributed during the year (874.30) 2,057.739.2 Tax on income distributed during the year (238.50) 352.0710 Retained Surplus / (Defi cit) carried forward to Balance Sheet 17,245.94 17,720.27



13





Previous Year ended

March 31, 2013


OpenRegular Plan - Growth Option 15.9387 14.3775

Regular Plan - Fortnightly Dividend Option 10.7422 10.7344

Regular Plan - Monthly Dividend Option 10.3235 10.3039

Regular Plan - Quarterly Dividend Option 11.8526 11.4909

Regular Plan - Half Yearly Dividend Option 11.2716 10.9104

Growth Option **** 16.2393 14.6048

Fortnightly Dividend Option **** 10.0451 10.0045

Monthly Dividend Option **** 10.5732 10.5337

Quarterly Dividend Option **** 11.7590 11.3730

Half Yearly Dividend Option **** 10.5850 –


Direct Plan - Fortnightly Dividend Option 10.1531 N.A.


Direct Plan - Quarterly Dividend Option 11.7912 N.A.

Direct Plan - Half Yearly Dividend Option 10.6143 N.A.

HighRegular Plan - Growth Option 16.6673 15.9387Regular Plan - Fortnightly Dividend Option 11.1136 10.9839Regular Plan - Monthly Dividend Option 10.7269 10.5988Regular Plan - Quarterly Dividend Option 12.3945 12.0686Regular Plan - Half Yearly Dividend Option 11.7869 11.6629Growth Option **** 16.9888 16.2393Fortnightly Dividend Option **** 10.3899 10.2695Monthly Dividend Option **** 10.9739 10.8407Quarterly Dividend Option **** 12.3015 11.9737Half Yearly Dividend Option **** 11.0733 10.9757Direct Plan - Growth Option 17.0550 16.2765Direct Plan - Fortnightly Dividend Option 10.5076 10.2727Direct Plan - Monthly Dividend Option 11.0403 10.7117Direct Plan - Quarterly Dividend Option 12.3551 12.0001Direct Plan - Half Yearly Dividend Option 11.1220 10.9999

LowRegular Plan - Growth Option 15.4727 14.3848

Regular Plan - Fortnightly Dividend Option 10.1785 10.7201



Regular Plan - Half Yearly Dividend Option 10.9421 10.9159

Growth Option **** 15.7801 14.6126




14





Previous Year ended

March 31, 2013

Half Yearly Dividend Option **** 10.2855 10.0050Direct Plan - Growth Option 15.8687 16.0200Direct Plan - Fortnightly Dividend Option 9.6559 10.1196Direct Plan - Monthly Dividend Option 10.1222 10.5984Direct Plan - Quarterly Dividend Option 11.2612 11.7072Direct Plan - Half Yearly Dividend Option 10.2296 10.5893

End5


Regular Plan - Fortnightly Dividend Option 10.8766 10.7422Regular Plan - Monthly Dividend Option 10.4554 10.3235Regular Plan - Quarterly Dividend Option 11.3803 11.8526Regular Plan - Half Yearly Dividend Option 11.6926 11.2716Growth Option **** 16.8883 16.2393Fortnightly Dividend Option **** 10.1042 10.0451Monthly Dividend Option **** 10.5917 10.5732Quarterly Dividend Option **** 11.3127 11.7590Half Yearly Dividend Option **** 11.0077 10.5850Direct Plan - Growth Option 17.0615 10.6297Direct Plan - Fortnightly Dividend Option 10.0000 10.1531Direct Plan - Monthly Dividend Option 10.7214 16.2765Direct Plan - Quarterly Dividend Option 11.4404 11.7912Direct Plan - Half Yearly Dividend Option 10.7112 10.6143


End 54,042 79,249

Average (AAuM)1 105,078 46,775


4. Expense Ratio:


Regular Plan - Growth Option 1.90% 1.90%

Growth Option **** 1.65% 1.62%



Regular Plan - Growth Option 0.56% 0.75%

Growth Option **** 0.56% 0.75%





RetailRegular Plan - Fortnightly Dividend Option 0.2251 0.5297Regular Plan - Monthly Dividend Option 0.2031 0.9257Regular Plan - Quarterly Dividend Option 0.7013 0.7488Regular Plan - Half Yearly Dividend Option – 0.7047

15




Previous Year ended

March 31, 2013




Half Yearly Dividend Option **** – 0.3524




Direct Plan - Half Yearly Dividend Option 0.3117 0.3524

CorporateRegular Plan - Fortnightly Dividend Option 0.1981 0.4540



Regular Plan - Half Yearly Dividend Option – 0.6040




Half Yearly Dividend Option **** – 0.3020




Direct Plan - Half Yearly Dividend Option 0.2985 0.3020

8. Returns (%):

a. Last One YearSchemeRegular Plan - Growth Option 3.4293 10.9000Growth Option **** 3.6875 11.2300Direct Plan - Growth Option 4.5093 N.A.BenchmarkCRISIL Composite Bond Fund Index 4.3172% 9.3000%

b. Since InceptionSchemeRegular Plan - Growth Option 8.0258 8.8900Growth Option **** 8.3792 9.2600Direct Plan - Growth Option 4.6538 1.0900BenchmarkCRISIL Composite Bond Fund Index 6.5428% 6.9500%

1 AAuM = Average daily net asets.2 Gross income = amount against (A) in the Revenue account i.e. Income.3 Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the year.4 Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year.5 The net asset value disclosed represents the computed NAV on March 31, 2014 (Non-business Day),


**** Earlier known as Institutional Plan


16



HSBC FLEXI DEBT FUND1 Investments:


1.2 Open Positions of derivatives as a % to Net Assets as of years ended March 31, 2014 and March 31, 2013 are NIL.




by all schemes


by all schemes

2014 2013



252,651,341 555,832,950 – –



Commercial Paper

– 1,243,550,000 – –


Commercial Paper

– 492,702,500 – –



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



2014 2013


– Appreciation 2,927,225 0.05 12,581,202 0.16

– Depreciation 68,900,964 1.27 211,766 0.00~

Non Convertible Debentures and Bonds Privately Placed



Certifi cate of Deposit

– Appreciation 5,235,263 0.10 3,636,945 0.05

– Depreciation – – 317,282 0.00~


– Appreciation 2,045,089 0.04 313,987 0.00~

– Depreciation 1,464,589 0.03 8,911,694 0.11


17





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

Security Category Fair Value (Rupees)


Fair Value (Rupees)


2014 2013

Debt Instruments – – 3,341,653,270 42.17

Money Market Instruments 89,830,386 1.66 2,516,124,243 31.75

Total 89,830,386 1.66 5,857,777,513 73.92






Relation

Period Covered


% of Total Business


Commission paid

[Rupees]


Fund


Associate 2013-2014 297.38 27.97 31,556,246 34.05


Associate 2013-2014 – – 23,251 0.03



Relation

Period Covered


% of Total Business


Commission paid

[Rupees]


Fund


Associate 2012-2013 362.94 38.09 19,097,181 30.25


Associate 2012-2013 0.02 0.00~ 4,948 0.01



18





4 Unit Capital movement during the years ended March 31, 2014 and March 31, 2013.

Description

2013-2014


(Rs.)

Regular Plan - Growth Option

65,550,202.718 – 48,149,879.892 17,400,322.826 10

Regular Plan - Monthly Dividend Option

67,912,782.802 – 53,878,054.464 14,034,728.338 10

Regular Plan - Fortnightly Dividend Option

16,150,700.868 – 10,370,425.019 5,780,275.849 10

Regular Plan - Quarterly Dividend Option

25,435,688.203 – 18,700,932.718 6,734,755.485 10

Regular Plan - Half Yearly Dividend Option

874,336.267 – 828,076.773 46,259.494 10

Growth Option **** 212,292,099.227 491,625,691.718 475,972,525.260 227,945,265.685 10

Monthly Dividend Option ****

101,601,051.426 66,083,490.823 147,671,376.378 20,013,165.871 10

Fortnightly Dividend Option ****

34,411,242.042 18,380,618.830 48,381,122.120 4,410,738.752 10

Quarterly Dividend Option ****

35,941,878.775 18,439,493.351 34,753,913.652 19,627,458.474 10

Half Yearly Dividend Option ****

3,719,886.542 131,534.539 3,810,134.695 41,286.386 10


22,230,898.287 31,587,272.973 24,570,157.447 29,248,013.813 10


154,753.120 10,241,538.107 10,396,291.227 – 10


8,545.110 117,524.960 63,002.444 63,067.626 10


108,228.854 33,183,915.848 33,182,781.376 109,363.326 10

Direct Plan - Half Yearly Dividend Option

12,479.863 376.874 – 12,856.737 10


19


Description

2012-2013

Opening Units Subscription Redemption Closing UnitsFace

Value per Unit (Rs.)

Regular Plan - Growth Option

22,165,759.599 76,320,520.241 32,936,077.122 65,550,202.718 10

Regular Plan - Monthly Dividend Option

19,722,985.322 107,176,907.191 58,987,109.711 67,912,782.802 10

Regular Plan - Fortnightly Dividend Option

2,787,007.878 29,621,933.552 16,258,240.562 16,150,700.868 10

Regular Plan - Quarterly Dividend Option

11,437,491.825 40,099,905.687 26,101,709.309 25,435,688.203 10

Regular Plan - Half Yearly Dividend Option

266,406.608 4,659,124.666 4,051,195.007 874,336.267 10

Growth Option **** 47,962,900.448 215,412,026.659 51,082,827.880 212,292,099.227 10

Monthly Dividend Option ****

1,912,701.096 141,587,681.216 41,899,330.886 101,601,051.426 10

Fortnightly Dividend Option ****

4,613,865.180 41,226,710.907 11,429,334.045 34,411,242.042 10

Quarterly Dividend Option ****

17,412,594.071 53,685,359.523 35,156,074.819 35,941,878.775 10

Half Yearly Dividend Option ****

– 3,722,657.623 2,771.081 3,719,886.542 10


– 22,230,898.287 – 22,230,898.287 10


– 154,753.120 – 154,753.120 10


– 8,545.110 – 8,545.110 10


– 108,228.854 – 108,228.854 10

Direct Plan - Half Yearly Dividend Option

– 12,479.863 – 12,479.863 10

**** Earlier known as Institutional Plan




8 Other Income of Rs. 276,161 (2013: Rs. 1,899,886) represents Exit load (net of service tax) credited to the scheme & Rs. 110,708 (2013: NIL) represents Excess interest received on settlement of trade now written off.


20









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24






HSBC Capital Protection Oriented FundA Close ended Capital Protection Oriented Scheme


HSBC Capital Protection Oriented Fund

1


Dear Investor,









Market Outlook


2






In summary,






Yours sincerely,

Puneet Chaddha



3














4






HSBC Capital Protection Oriented Fund - a close ended Capital Protection Oriented Scheme

The Scheme seeks protection of capital by investing a portion of the portfolio in high quality debt securities and money market instruments and also to provide capital appreciation by investing in equities through NIFTY (Index) Call Options.

The Scheme launched one plan namely, HSBC Capital Protection Oriented Fund - Series I - Plan I having a tenure of 790 days. HSBC Capital Oriented Protection Fund - Series I - Plan I was launched on April 18, 2013. The performance of the Scheme is benchmarked against CRISIL MIP Blended Index. Being a close ended Scheme, the performance of the Scheme is not provided.


EQUITY OUTLOOK



NIFTY 18.0

Sensex 18.8

S&P BSE 100 18.1

S&P BSE 200 17.2

S&P BSE 500 17.1

CNX Midcap 15.3

Source: Bloomberg





� Reforms: The seminal event of FY14 is the General Election and its mandate. We believe, the mandate, which exceeded most optimistic expectations, underlines nation’s desire to shun identity based politics and parochial considerations for development and economic growth. Expectations from the government

5



are high but we are placing our faith in the government’s ability to deliver (albeit over 3-5 years).


DEBT OUTLOOK
















The Sponsor is the Settler of the Mutual Fund Trust. The Sponsor has entrusted a sum of Rs.1,00,000

6



(Rupees One Lakh only) to the Trustee as the initial contribution towards the corpus of the Mutual Fund.













7






Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months



0 1 1 0 0 0 0 0 0 0 0


0 44 24 14 0 0 0 6 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 7 7 0 0 0 0 0 0 0 0


1 2 3 0 0 0 0 0 0 0 0



0 0 0 0 0 0 0 0 0 0 0



0 0 0 0 0 0 0 0 0 0 0




0 13 12 0 0 0 0 1 0 0 0

IV Others 0 18 15 2 0 0 0 1 0 0 0

Total 1 224 200 17 0 0 0 8 0 0 0

Note:

* active folios






8






Sd/-

Dilip J. Thakkar

Trustee

MumbaiJuly 15, 2014

9



HSBC Mutual Fund

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

Oriented Fund (the “Scheme”), which comprise the Balance Sheet as at March 31, 2014, the related Revenue Account and Cash Flow Statement for the period April 18, 2013 to March 31, 2014, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.










(b) in the case of the Revenue Account, of the net surplus for the period April 18, 2013 to March 31, 2014; and

(c) in the case of the Cash Flow Statement, of the cash fl ows for the period April 18, 2013 to March 31, 2014.




10






Sd/-



11


Rs. in Lakhs

HSBC CAPITAL PROTECTION ORIENTED FUND #


LIABILITIES1 Unit Capital 8,877.522 Reserves & Surplus2.1 Unit Premium Reserves –2.2 Unrealised Appreciation Reserve 283.832.3 Other Reserves 383.633 Loans & Borrowings –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits –4.2 Other Current Liabilities & Provisions 22.05

TOTAL 9,567.03ASSETS

1 Investments1.1 Listed Securities:1.1.1 Equity Shares –1.1.2 Preference Shares –1.1.3 Equity Linked Debentures –1.1.4 Other Debentures & Bonds 7,363.181.1.5 Securitised Debt securities –1.2 Securities Awaited Listing:1.2.1 Equity Shares –1.2.2 Preference Shares –1.2.3 Equity Linked Debentures –1.2.4 Other Debentures & Bonds –1.2.5 Securitised Debt securities –1.3 Unlisted Securities1.3.1 Equity Shares –1.3.2 Preference Shares –1.3.3 Equity Linked Debentures –1.3.4 Other Debentures & Bonds 501.641.3.5 Securitised Debt securities –1.4 Government Securities –1.5 Treasury Bills –1.6 Commercial Paper –1.7 Certifi cate of Deposits 37.871.8 Bill Rediscounting –1.9 Units of Domestic Mutual Fund –1.10 Foreign Securities –

Total Investments 7,902.692 Deposits –3 Other Current Assets3.1 Cash & Bank Balance 45.163.2 CBLO / Reverse Repo Lending 63.803.3 Others 1,555.384 Deferred Revenue Expenditure (to the extent not written off) –

TOTAL 9,567.03

Notes to Accounts - Annexure I# Scheme launched during the current fi nancial year


12


Abridged Revenue Account for the period ended March 31, 2014

Rs. in Lakhs

HSBC CAPITAL PROTECTION

ORIENTED FUND #Current Period ended

March 31, 2014

1 INCOME1.1 Dividend –1.2 Interest 683.461.3 Realised Gain / (Loss) on Foreign Exchange Transactions –1.4 Realised Gains / (Losses) on Interscheme sale of investments –1.5 Realised Gains / (Losses) on External sale / redemption of investments –1.6 Realised Gains / (Losses) on Derivative Transactions –1.7 Other Income –

(A) 683.46

2 EXPENSES2.1 Management fees 72.222.2 Service tax on Management fees 8.932.3 Transfer agents fees and expenses 1.882.4 Custodian fees 0.772.5 Trusteeship fees –2.6 Commission to Agents * –2.7 Marketing & Distribution expenses 61.232.8 Audit fees 0.202.9 Investor Education Expenses 1.642.10 Other operating expenses 0.38

2.11 Less : Expenses to be Reimbursed by the Investment Manager (0.31)

(B) 146.94

3 NET REALISED GAINS / (LOSSES) FOR THE PERIOD (A - B = C) 536.52

4 Change in Unrealised Depreciation in value of investments (D) (152.89)

5 NET GAINS / (LOSSES) FOR THE PERIOD [E = (C - D)] 383.63

6 Change in unrealised appreciation in the value of investments (F) 283.83

7 NET SURPLUS / (DEFICIT) FOR THE PERIOD (E + F = G) 667.46

7.1 Add: Balance transfer from Unrealised Appreciation Reserve –7.2 Less: Balance transfer to Unrealised Appreciation Reserve 283.837.3 Add / (Less): Equalisation –7.4 Transfer from Reserve Fund –7.5 Transfer from Unit Premium Reserve –

8 Total 383.63

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

10 Retained Surplus / (Defi cit) carried forward to Balance sheet 383.63

Notes to Accounts - Annexure I* Commission to Agents is included in Marketing & Distribution expenses.# Scheme launched during the current fi nancial year

13


Key Statistics for the period ended March 31, 2014


ORIENTED FUND # Current Period ended

March 31, 2014


Open

Growth Option N.A.

Dividend Option N.A.



High

Growth Option 10.7462

Dividend Option 10.7462



Low





End






End 9,545



4. Expense Ratio:


Regular Plan 1.80%

Direct Plan 1.10%


Regular Plan 0.88%

Direct Plan 0.88%

5. Net Income as a percentage of AAuM3 * 6.57%


14



ORIENTED FUND # Current Period ended

March 31, 2014


Retail

Regular Dividend Option N.A

Direct Plan - Dividend Option N.A

Corporate



8. Returns (%):

a. Last One Year

Scheme

Regular Growth Option N.A

Direct Plan - Growth Option N.A

Benchmark

CRISIL MIP Blended Index N.A

b. Since Inception

Scheme

Regular Growth Option 7.5576%

Direct Plan - Growth Option 8.2345%

Benchmark

CRISIL MIP Blended Index 8.0044%

1 AAuM=Average daily net assets.2 Gross income = amount against (A) in the Revenue account i.e. Income.3 Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the period.4 Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the period.




15


Notes to Accounts - Annexure ITo the Abridged Balance Sheet and Revenue Account for the period ended March 31, 2014

HSBC CAPITAL PROTECTION ORIENTED FUND #

1 Investments:


1.2 Open Positions of derivatives for the period ended March 31, 2014 are as given below:-

Hedging Positions through Options as on March 31, 2014

Scheme Name Underlying Number of contracts

Option Price when purchased

Current Price

NIL

Total Exposure through options as a percentage of net assets : NIL

For the year ended March 31, 2014 specify the following for hedging transactions through options which have already been exercised / expired :Total Number of contracts entered into : NILGross Notional Value of contracts : NILNet Profi t / Loss on all contracts (premium paid treated as loss) : NIL”

Other than Hedging Positions through Options as on March 31, 2014

Scheme Name

Underlying Call / put Number of contracts

Option Price when purchased

Current Price

HCPOF Nifty Index Call Option 1496 946.25 1325.70

Total Exposure through options as a percentage of net assets : 10.39%

For the year ended March 31, 2014 following details specifi ed with regard to non-hedging transactions through options which have already been exercised / expired : NILTotal Number of contracts entered into : 1496Gross Notional Value of contracts : Rs. 70,779,500 / -Net Profi t / Loss on all contracts (premium paid treated as loss) : NIL

1.3 Investments in Associates and Group Companies for the period ended March 31, 2014 is NIL.

1.4 Open position of Securities Borrowed and / or Lent by the Scheme for the fi nancial period ended March 31, 2014 is NIL.

1.5 NPAs as on March 31, 2014 is NIL.

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

Security Category Amount (Rs.) Percentage to Net Assets(%)2014




Privately Placed Non Convertible Debentures / Bonds


– Depreciation 916,150 0.10

Certifi cate of Deposit


– Depreciation 4,561 0.00~

Derivetives (Options)

– Appreciation 28,382,860 2.97

– Depreciation – –


16


1.7 The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2013-2014 (excluding accretion of discount) are Rs. 876,212,502 being 98.81% of the average daily net assets.

1.8 Non-Traded securities in the portfolio of the Scheme as of the period ended March 31, 2014 is NIL.





Relation

Period Covered


% of Total Business


Commission paid

[Rupees]


Fund


Associate of the Investment Manager

2013-2014 90.80 97.18 4,933,276 89.21





Description

2013-2014


per unit (Rupees)

Growth Option 83,605,660.321 – – 83,605,660.321 10

Dividend Option 4,550,697.931 – – 4,550,697.931 10


618,870.409 – – 618,870.409 10


– – – – 10

5 As these are the fi rst fi nancial statements of the Scheme since the date of launch, there are no prior period comparatives.







17


















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20

HSBC Capital Protection Oriented FundHSBC Capital Protection Oriented Fund





HSBC Fixed Term SeriesA close-ended Income Scheme


HSBC FTP Series

1

HSBC FTP Series

Dear Investor,









Market Outlook


2

HSBC FTP Series





In summary,






Yours sincerely,

Puneet Chaddha



3

HSBC FTP Series













4

HSBC FTP Series





HSBC Fixed Term Series - a close ended Income Scheme

The Scheme seeks to generate returns by investing in a portfolio of fi xed income instruments which mature on or before the maturity date of the plans under the Scheme.

Details of Schemes launched during the period are provided below -

Name of Scheme Date of Launch

HSBC Fixed Term Series 91 August 01, 2013



HSBC Fixed Term Series 98 October 14, 2013

HSBC Fixed Term Series 97 October 24, 2013

HSBC Fixed Term Series 99 November 08, 2013

HSBC Fixed Term Series 100 November 27, 2013

HSBC Fixed Term Series 101 January 15, 2014

HSBC Fixed Term Series 105 February 05, 2014

HSBC Fixed Term Series 106 February 24, 2014

HSBC Fixed Term Series 107 March 06, 2014

HSBC Fixed Term Series 109 March 24, 2014

HSBC Fixed Term Series 102 April 28, 2014

Being close ended fi xed maturity plans, the performance of these Schemes are not provided.


EQUITY OUTLOOK



NIFTY 18.0

Sensex 18.8

S&P BSE 100 18.1

S&P BSE 200 17.2

S&P BSE 500 17.1

CNX Midcap 15.3

Source: Bloomberg

5

HSBC FTP Series








DEBT OUTLOOK










6

HSBC FTP Series


















7

HSBC FTP Series








Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months



0 1 1 0 0 0 0 0 0 0 0


0 44 24 14 0 0 0 6 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 7 7 0 0 0 0 0 0 0 0


1 2 3 0 0 0 0 0 0 0 0



0 0 0 0 0 0 0 0 0 0 0



0 0 0 0 0 0 0 0 0 0 0



8

HSBC FTP Series


Com-plaintCode

Type of complaint#


pendingat the



receivedduring

theyear#



ble

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 13 12 0 0 0 0 1 0 0 0

IV Others 0 18 15 2 0 0 0 1 0 0 0

Total 1 224 200 17 0 0 0 8 0 0 0

Note:

* active folios









Sd/-

Dilip J. Thakkar

Trustee

MumbaiJuly 15, 2014

9

HSBC FTP Series



HSBC Mutual Fund

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

89 (the “Scheme”), which comprise the Balance Sheet as at March 31, 2014, the related Revenue Account and Cash Flow Statement for the year ended March 31, 2014, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.










(b) in the case of the Revenue Account, of the net surplus for the year ended March 31, 2014; and





10

HSBC FTP Series





Sd/-


Place : MumbaiDate : July 15, 2014.

11

HSBC FTP Series



HSBC Mutual Fund


90 (the “Scheme”), which comprise the Balance Sheet as at March 31, 2014, the related Revenue Account and Cash Flow Statement for the year ended March 31, 2014, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.










(b) in the case of the Revenue Account, of the net surplus for the year ended March 31, 2014; and





12

HSBC FTP Series




Sd/-




13

HSBC FTP Series


HSBC Mutual Fund

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

Series 91 (the “Scheme”), which comprise the Balance Sheet as at March 31, 2014, the related Revenue Account and Cash Flow Statement for the period August 01, 2013 to March 31, 2014, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.










(b) in the case of the Revenue Account, of the net surplus for the period August 01, 2013 to March 31, 2014; and

(c) in the case of the Cash Flow Statement, of the cash fl ows for the period August 01, 2013 to March 31, 2014.




14

HSBC FTP Series




Sd/-




15

HSBC FTP Series


HSBC Mutual Fund

















16

HSBC FTP Series




Sd/-




17

HSBC FTP Series


HSBC Mutual Fund















(a) We have obtained all the information and explanations which, to the best of our knowledge and


18

HSBC FTP Series

belief, were necessary for the purposes of our audit; and





Sd/-




19

HSBC FTP Series


HSBC Mutual Fund

















20

HSBC FTP Series





Sd/-




21

HSBC FTP Series


HSBC Mutual Fund


Series 97 (the “Scheme”), which comprise the Balance Sheet as at March 31, 2014, the related Revenue Account and Cash Flow Statement for the period October 24, 2013 to March 31, 2014, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.










(b) in the case of the Revenue Account, of the net surplus for the period October 24, 2013 to March 31, 2014; and

(c) in the case of the Cash Flow Statement, of the cash fl ows for the period October 24, 2013 to March 31, 2014.




22

HSBC FTP Series





Sd/-




23

HSBC FTP Series


HSBC Mutual Fund


Series 98 (the “Scheme”), which comprise the Balance Sheet as at March 31, 2014, the related Revenue Account and Cash Flow Statement for the period October 14, 2013 to March 31, 2014, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.










(b) in the case of the Revenue Account, of the net surplus for the period October 14, 2013 to March 31, 2014; and

(c) in the case of the Cash Flow Statement, of the cash fl ows for the period October 14, 2013 to March 31, 2014.




24

HSBC FTP Series




Sd/-




25

HSBC FTP Series


HSBC Mutual Fund


99 (the “Scheme”), which comprise the Balance Sheet as at March 31, 2014, the related Revenue Account and Cash Flow Statement for the period November 08, 2013 to March 31, 2014, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.










(b) in the case of the Revenue Account, of the net surplus for the period November 08, 2013 to March 31, 2014; and

(c) in the case of the Cash Flow Statement, of the cash fl ows for the period November 08, 2013 to March 31, 2014.




26

HSBC FTP Series




Sd/-




27

HSBC FTP Series


HSBC Mutual Fund


100 (the “Scheme”), which comprise the Balance Sheet as at March 31, 2014, the related Revenue Account and Cash Flow Statement for the period November 27, 2013 to March 31, 2014, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.










(b) in the case of the Revenue Account, of the net surplus for the period November 27, 2013 to March 31, 2014; and

(c) in the case of the Cash Flow Statement, of the cash fl ows for the period November 27, 2013 to March 31, 2014.




28

HSBC FTP Series




Sd/-




29

HSBC FTP Series


HSBC Mutual Fund


101 (the “Scheme”), which comprise the Balance Sheet as at March 31, 2014, the related Revenue Account and Cash Flow Statement for the period January 15, 2014 to March 31, 2014, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.










(b) in the case of the Revenue Account, of the net surplus for the period January 15, 2014 to March 31, 2014; and

(c) in the case of the Cash Flow Statement, of the cash fl ows for the period January 15, 2014 to March 31, 2014.




30

HSBC FTP Series




Sd/-




31

HSBC FTP Series


HSBC Mutual Fund


105 (the “Scheme”), which comprise the Balance Sheet as at March 31, 2014, the related Revenue Account and Cash Flow Statement for the period February 05, 2014 to March 31, 2014, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.










(b) in the case of the Revenue Account, of the net surplus for the period February 05, 2014 to March 31, 2014; and

(c) in the case of the Cash Flow Statement, of the cash fl ows for the period February 05, 2014 to March 31, 2014.




32

HSBC FTP Series


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


Sd/-




33

HSBC FTP Series


HSBC Mutual Fund


106 (the “Scheme”), which comprise the Balance Sheet as at March 31, 2014, the related Revenue Account and Cash Flow Statement for the period February 24, 2014 to March 31, 2014, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.










(b) in the case of the Revenue Account, of the net surplus for the period February 24, 2014 to March 31, 2014; and

(c) in the case of the Cash Flow Statement, of the cash fl ows for the period February 24, 2014 to March 31, 2014.




34

HSBC FTP Series




Sd/-




35

HSBC FTP Series


HSBC Mutual Fund


107 (the “Scheme”), which comprise the Balance Sheet as at March 31, 2014, the related Revenue Account and Cash Flow Statement for the period March 06, 2014 to March 31, 2014, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.










(b) in the case of the Revenue Account, of the net surplus for the period March 06, 2014to March 31, 2014; and

(c) in the case of the Cash Flow Statement, of the cash fl ows for the period March 06, 2014 to March 31, 2014.




36

HSBC FTP Series




Sd/-




37

HSBC FTP Series


HSBC Mutual Fund


109 (the “Scheme”), which comprise the Balance Sheet as at March 31, 2014, the related Revenue Account and Cash Flow Statement for the period March 24, 2014 to March 31, 2014, and a summary of signifi cant accounting policies and other explanatory information, which we have signed under reference to this report.










(b) in the case of the Revenue Account, of the net surplus for the period March 24, 2014 to March 31, 2014; and

(c) in the case of the Cash Flow Statement, of the cash fl ows for the period March 24, 2014 to March 31, 2014.




38

HSBC FTP Series





Sd/-




39

HSBC FTP Series

Rs. in Lakhs

HSBC FIXED TERM SERIES 89As at March

31, 2014As at March

31, 2013#

LIABILITIES1 Unit Capital 8,472.47 8,472.472 Reserves & Surplus2.1 Unit Premium Reserves – –2.2 Unrealised Appreciation Reserve – –2.3 Other Reserves 735.87 9.193 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 28.33 1,009.31

TOTAL 9,236.67 9,490.97

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds 689.95 –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – 688.441.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits 8,453.69 7,789.341.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –

Total Investments 9,143.64 8,477.782 Deposits – –3 Other Current Assets3.1 Cash & Bank Balance 12.85 0.00 ~3.2 CBLO / Reverse Repo Lending 79.37 3.783.3 Others 0.81 1,009.414 Deferred Revenue Expenditure (to the extent not written off) – –

TOTAL 9,236.67 9,490.97

Notes to Accounts - Annexure I # Scheme launched during the current fi nancial year.~ Indicates less than 0.01


40

HSBC FTP Series

Rs. in Lakhs

HSBC FIXED TERM SERIES 90As at

March 31, 2014As at

March 31, 2013

LIABILITIES1 Unit Capital 6,429.58 6,429.582 Reserves & Surplus2.1 Unit Premium Reserves – –2.2 Unrealised Appreciation Reserve – –2.3 Other Reserves 569.70 7.963 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 7.15 0.43

TOTAL 7,006.43 6,437.97

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits 6,990.73 6,424.851.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –

Total Investments 6,990.73 6,424.852 Deposits – –3 Other Current Assets3.1 Cash & Bank Balance 0.02 0.00 ~3.2 CBLO / Reverse Repo Lending 15.66 12.913.3 Others 0.02 0.214 Deferred Revenue Expenditure (to the extent not written off) – –

TOTAL 7,006.43 6,437.97Notes to Accounts - Annexure I ~ Indicates less than 0.01


41

HSBC FTP Series

Rs. in Lakhs

HSBC FIXED TERM SERIES 91#




LIABILITIES1 Unit Capital 19,207.30 26,394.492 Reserves & Surplus2.1 Unit Premium Reserves – –2.2 Unrealised Appreciation Reserve 7.80 140.112.3 Other Reserves 1,193.17 1,681.963 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 32.41 25.99

TOTAL 20,440.68 28,242.55

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – 3,157.071.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits 20,367.77 24,831.441.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –

Total Investments 20,367.77 27,988.512 Deposits – –3 Other Current Assets3.1 Cash & Bank Balance 0.05 0.053.2 CBLO / Reverse Repo Lending 72.73 58.183.3 Others 0.13 195.814 Deferred Revenue Expenditure (to the extent not written off) – –

TOTAL 20,440.68 28,242.55

Notes to Accounts - Annexure I# Scheme launched during the current fi nancial year.


42

HSBC FTP Series


Rs. in Lakhs





LIABILITIES1 Unit Capital 8,517.33 13,903.062 Reserves & Surplus2.1 Unit Premium Reserves – –2.2 Unrealised Appreciation Reserve 190.79 67.822.3 Other Reserves 465.87 838.843 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 10.82 13.47

TOTAL 9,184.81 14,823.19

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds 8,553.24 –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits 206.64 14,783.671.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –


TOTAL 9,184.81 14,823.19


43

HSBC FTP Series

Rs. in Lakhs





LIABILITIES1 Unit Capital 5,546.14 15,725.792 Reserves & Surplus2.1 Unit Premium Reserves – –2.2 Unrealised Appreciation Reserve – 7.582.3 Other Reserves 198.75 605.913 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 5.18 15.4

TOTAL 5,750.07 16,354.68

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds 999.66 2,988.501.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits 4,676.45 13,196.321.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –


TOTAL 5,750.07 16,354.68



44

HSBC FTP Series


Rs. in Lakhs


HSBC FIXEDTERM SERIES 100#




TOTAL 7,739.80 6,465.60

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds 2,995.25 1,000.961.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits 4,600.14 5,409.861.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –


TOTAL 7,739.80 6,465.60


45

HSBC FTP Series

Rs. in Lakhs






TOTAL 18,413.57 26,483.01



TOTAL 18,413.57 26,483.01



46

HSBC FTP Series


Rs. in Lakhs






TOTAL 12,309.43 15,185.52



TOTAL 12,309.43 15,185.52


47

HSBC FTP Series

Rs. in Lakhs



LIABILITIES1 Unit Capital 31,098.052 Reserves & Surplus2.1 Unit Premium Reserves – 2.2 Unrealised Appreciation Reserve 19.452.3 Other Reserves 45.973 Loans & Borrowings – 4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – 4.2 Other Current Liabilities & Provisions 1.84

TOTAL 31,165.31

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – 1.1.2 Preference Shares – 1.1.3 Equity Linked Debentures – 1.1.4 Other Debentures & Bonds – 1.1.5 Securitised Debt securities – 1.2 Securities Awaited Listing:1.2.1 Equity Shares – 1.2.2 Preference Shares – 1.2.3 Equity Linked Debentures – 1.2.4 Other Debentures & Bonds – 1.2.5 Securitised Debt securities – 1.3 Unlisted Securities1.3.1 Equity Shares – 1.3.2 Preference Shares – 1.3.3 Equity Linked Debentures – 1.3.4 Other Debentures & Bonds – 1.3.5 Securitised Debt securities – 1.4 Government Securities – 1.5 Treasury Bills – 1.6 Commercial Paper – 1.7 Certifi cate of Deposits 31,059.291.8 Bill Rediscounting – 1.9 Units of Domestic Mutual Fund – 1.1 Foreign Securities –

Total Investments 31,059.292 Deposits – 3 Other Current Assets3.1 Cash & Bank Balance 0.073.2 CBLO / Reverse Repo Lending 105.573.3 Others 0.384 Deferred Revenue Expenditure (to the extent not written off) –

TOTAL 31,165.31



48

HSBC FTP Series


Rs. in Lakhs

HSBC FIXED TERM SERIES 89Current



March 31, 2013#


investments0.14 –

1.6 Realised Gains / (Losses) on Derivative Transactions – –1.7 Other Income 0.06 –

(A) 759.21 13.062 EXPENSES2.1 Management fees 28.01 0.082.2 Service tax on Management fees 3.46 0.012.3 Transfer agents fees and expenses 0.99 0.082.4 Custodian fees 1.00 0.012.5 Trusteeship fees – –2.6 Commission to Agents * – –2.7 Marketing & Distribution expenses – –2.8 Audit fees 0.20 0.202.9 Investor Education Expenses 1.76 0.032.10 Other operating expenses 0.13 0.192.11 Less : Expenses to be Reimbursed by the Investment Manager – (0.01)

(B) 35.55 0.59

3 NET REALISED GAINS / (LOSSES)FOR THE YEAR / PERIOD (A - B = C) 723.66 12.47

4 Change in Unrealised Depreciation in value of investments (D) 3.02 3.28

5 NET GAINS / (LOSSES) FOR THEYEAR / PERIOD [E = (C - D)] 726.68 9.19

6 Change in unrealised appreciation in the value of investments (F) – –

7 NET SURPLUS / (DEFICIT) FOR THEYEAR / PERIOD (E + F = G) 726.68 9.19

7.1 Add: Balance transfer from Unrealised Appreciation Reserve – –7.2 Less: Balance transfer to Unrealised Appreciation Reserve – –7.3 Add / (Less): Equalisation – –7.4 Transfer from Reserve Fund 9.19 –


8 TOTAL 735.87 9.19

9 Dividend appropriation9.1 Income Distributed during the year – –9.2 Tax on income distributed during the year – –10 Retained Surplus / (Defi cit) carried forward to


Notes to Accounts - Annexure I* Commission to Agents is included in Marketing & Distribution expenses.# Scheme launched previous the current fi nancial year.

49

HSBC FTP Series


Rs. in Lakhs




March 31, 2013#


investments0.07 –

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

(A) 571.32 10.182 EXPENSES2.1 Management fees 7.28 0.052.2 Service tax on Management fees 0.90 0.012.3 Transfer agents fees and expenses 0.75 0.062.4 Custodian fees 0.90 0.012.5 Trusteeship fees – –2.6 Commission to Agents * – –2.7 Marketing & Distribution expenses – –2.8 Audit fees 0.20 0.202.9 Investor Education Expenses 1.34 0.022.10 Other operating expenses 0.14 0.092.11 Less : Expenses to be Reimbursed by the Investment Manager – (0.19)

(B) 11.51 0.25

3 NET REALISED GAINS / (LOSSES)FOR THE YEAR / PERIOD (A - B = C) 559.81 9.93

4 Change in Unrealised Depreciation in value of investments (D) 1.93 1.97

5 NET GAINS / (LOSSES) FOR THEYEAR / PERIOD [E = (C - D)] 561.74 7.96

6 Change in unrealised appreciation in the value of investments (F) – –

7 NET SURPLUS / (DEFICIT) FOR THEYEAR / PERIOD (E + F = G) 561.74 7.96

7.1 Add: Balance transfer from Unrealised Appreciation Reserve – –7.2 Less: Balance transfer to Unrealised Appreciation Reserve – –7.3 Add / (Less): Equalisation – –7.4 Transfer from Reserve Fund 7.96 –7.5 Transfer from Unit Premium Reserve – –

8 Total 569.70 7.96

9 Dividend appropriation9.1 Income Distributed during the period – –9.2 Tax on income distributed during the period – –10 Retained Surplus / (Defi cit) carried forward to


Notes to Accounts - Annexure I* Commission to Agents is included in Marketing & Distribution expenses.# Scheme launched during the previous fi nancial year.

50

HSBC FTP Series

Abridged Revenue Account for the period ended March 31, 2014 (Contd...)

Rs. in Lakhs

HSBC FIXED TERM SERIES 91 #


Current Period ended

March 31, 2014


March 31, 2014

1 INCOME1.1 Dividend – –1.2 Interest 1,245.70 1,729.621.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of investments – –1.6 Realised Gains / (Losses) on Derivative Transactions – –1.7 Other Income – –

(A) 1,245.70 1,729.622 EXPENSES2.1 Management fees 27.95 22.902.2 Service tax on Management fees 3.45 2.832.3 Transfer agents fees and expenses 1.48 2.052.4 Custodian fees 0.55 0.542.5 Trusteeship fees – –2.6 Commission to Agents * – –2.7 Marketing & Distribution expenses 15.88 15.352.8 Audit fees 0.20 0.202.9 Investor Education Expenses 2.62 3.362.10 Other operating expenses 0.40 0.432.11 Less : Expenses to be Reimbursed by the Investment Manager – –

(B) 52.53 47.66

3 NET REALISED GAINS / (LOSSES)FOR THE PERIOD (A - B = C) 1,193.17 1,681.96


5 NET GAINS / (LOSSES) FOR THE PERIOD [E = (C - D)] 1,193.17 1,681.96

6 Change in unrealised appreciation in thevalue of investments (F) 7.80 140.11

7 NET SURPLUS / (DEFICIT) FOR THE PERIOD (E + F = G) 1,200.97 1,822.077.1 Add: Balance transfer from Unrealised Appreciation Reserve – –7.2 Less: Balance transfer to Unrealised Appreciation Reserve 7.80 140.117.3 Add / (Less): Equalisation – –7.4 Transfer from Reserve Fund – –


8 TOTAL 1,193.17 1,681.96

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

Balance sheet 1,193.17 1,681.96

Notes to Accounts - Annexure I* Commission to Agents is included in Marketing & Distribution expenses.# Scheme launched during the current fi nancial year.

51

HSBC FTP Series


Rs. in Lakhs




March 31, 2014


March 31, 2014

1 INCOME1.1 Dividend – –1.2 Interest 484.62 862.791.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of investments – –1.6 Realised Gains / (Losses) on Derivative Transactions – –1.7 Other Income – –

(A) 484.62 862.792 EXPENSES2.1 Management fees 8.93 11.582.2 Service tax on Management fees 1.10 1.432.3 Transfer agents fees and expenses 0.66 0.942.4 Custodian fees 0.20 0.352.5 Trusteeship fees – –2.6 Commission to Agents * – –2.7 Marketing & Distribution expenses 6.39 7.552.8 Audit fees 0.20 0.202.9 Investor Education Expenses 1.05 1.662.10 Other operating expenses 0.21 0.242.11 Less : Expenses to be Reimbursed by the Investment Manager – –

(B) 18.74 23.95

3 NET REALISED GAINS / (LOSSES)FOR THE PERIOD (A - B = C) 465.88 838.84

4 Change in Unrealised Depreciation invalue of investments (D) -0.01 –

5 NET GAINS / (LOSSES) FOR THE PERIOD [E = (C - D)] 465.87 838.84


7 NET SURPLUS / (DEFICIT) FOR THE PERIOD (E + F = G) 656.66 906.667.1 Add: Balance transfer from Unrealised Appreciation Reserve – –7.2 Less: Balance transfer to Unrealised Appreciation Reserve 190.79 67.827.3 Add / (Less): Equalisation – –7.4 Transfer from Reserve Fund – –


8 TOTAL 465.87 838.84

9 Dividend Appropriation9.1 Income Distributed during the period – –9.2 Tax on income distributed during the period – –10 Retained Surplus / (Defi cit) carried forward to Balance sheet 465.87 838.84


52

HSBC FTP Series

Rs. in Lakhs




March 31, 2014


March 31, 2014



(B) 8.63 25.94


4 Change in Unrealised Depreciation invalue of investments (D) -12.26 -20.43


6 Change in unrealised appreciation in thevalue of investments (F) – 7.58

7 NET SURPLUS / (DEFICIT) FOR THE PERIOD (E + F = G) 198.75 613.497.1 Add: Balance transfer from Unrealised Appreciation Reserve – –7.2 Less: Balance transfer to Unrealised Appreciation Reserve – 7.587.3 Add / (Less): Equalisation – –7.4 Transfer from Reserve Fund – –


8 TOTAL 198.75 605.91





53

HSBC FTP Series

Rs. in Lakhs




March 31, 2014


March 31, 2014



(B) 10.31 7.63


4 Change in Unrealised Depreciation invalue of investments (D) -6.91 -3.73



7 NET SURPLUS / (DEFICIT) FOR THE PERIOD (E + F = G) 255.12 185.927.1 Add: Balance transfer from Unrealised Appreciation Reserve – -0.177.2 Less: Balance transfer to Unrealised Appreciation Reserve 6.17 –7.3 Add / (Less): Equalisation – –7.4 Transfer from Reserve Fund – –


8 TOTAL 248.95 185.75





54

HSBC FTP Series

Rs. in Lakhs




March 31, 2014


March 31, 2014



(B) 11.00 13.24







8 TOTAL 333.61 326.29





55

HSBC FTP Series

Rs. in Lakhs




March 31, 2014


March 31, 2014

1 INCOME1.1 Dividend – –1.2 Interest 108.87 79.591.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of investments 10.24 –1.6 Realised Gains / (Losses) on Derivative Transactions – –1.7 Other Income – –


(B) 4.59 3.42







8 TOTAL 114.52 76.17





56

HSBC FTP Series

Rs. in Lakhs



March 31, 2014

1 INCOME1.1 Dividend –1.2 Interest 47.581.3 Realised Gain / (Loss) on Foreign Exchange Transactions –1.4 Realised Gains / (Losses) on Interscheme sale of investments –1.5 Realised Gains / (Losses) on External sale / redemption of investments –1.6 Realised Gains / (Losses) on Derivative Transactions –1.7 Other Income –

(A) 47.58

2 EXPENSES2.1 Management fees 0.262.2 Service tax on Management fees 0.032.3 Transfer agents fees and expenses 0.292.4 Custodian fees 0.022.5 Trusteeship fees –2.6 Commission to Agents * –2.7 Marketing & Distribution expenses 0.512.8 Audit fees 0.202.9 Investor Education Expenses 0.102.10 Other operating expenses 0.432.11 Less : Expenses to be Reimbursed by the Investment Manager -0.23

(B) 1.61

3 NET REALISED GAINS / (LOSSES) FOR THE PERIOD (A - B = C) 45.97

4 Change in Unrealised Depreciation in value of investments (D) –

5 NET GAINS / (LOSSES) FOR THE PERIOD [E = (C - D)] 45.97

6 Change in unrealised appreciation in the value of investments (F) 19.45

7 NET SURPLUS / (DEFICIT) FOR THE PERIOD (E + F = G) 65.42

7.1 Add: Balance transfer from Unrealised Appreciation Reserve –7.2 Less: Balance transfer to Unrealised Appreciation Reserve 19.457.3 Add / (Less): Equalisation –7.4 Transfer from Reserve Fund –7.5 Transfer from Unit Premium Reserve –

8 TOTAL 45.97

9 Dividend Appropriation

9.1 Income Distributed during the period –9.2 Tax on income distributed during the period –

10 Retained Surplus / (Defi cit) carried forward to Balance sheet 45.97





57

HSBC FTP Series





March 31, 2013#


Open

Regular Growth Option 10.0108 –

Regular Dividend Option 10.0022 –

Direct Plan - Regular Growth Option 10.0554 –

Direct Plan - Regular Dividend Option – –

High



Direct Plan - Regular Growth Option 10.8921 10.0113


Low





End5






End 9,208 8,482



4. Expense Ratio:










Retail

Regular Dividend Option N.A N.A

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

58

HSBC FTP Series




March 31, 2013#

Corporate


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

8. Returns (%):

a. Last One Year

Scheme

Regular Growth Option 8.5508% N.A

Direct Plan - Regular Growth Option 8.8900% N.A

Benchmark

CRISIL Short-Term Bond Fund Index 8.7791% N.A

b. Since Inception

Scheme


Direct Plan - Regular Growth Option 8.8700% N.A

Benchmark

CRISIL Short-Term Bond Fund Index 8.7791% 0.0400%

1 AAuM = Average daily net assets.2 Gross income = amount against (A) in the Revenue account i.e. Income.3 Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the period.4 Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the period.5 The net asset value disclosed represents the computed NAV on March 31,2014 (Non-business Day),


# Scheme launched during the previous fi nancial year


59

HSBC FTP Series





March 31, 2013#


Open

Growth Option 10.0122 N.A

Dividend Option 10.0122 N.A

Direct Plan - Growth Option 10.0126 N.A

Direct Plan - Dividend Option – N.A

High





Low





End5






End 6,999 6,438


3. Gross income as % of AAuM2 * 8.52% 8.25%

4. Expense Ratio:







5. Net Income as a percentage of AAuM3 * 8.35% 8.04%



Retail


Direct Plan - Dividend Option N.A N.A

Corporate


Direct Plan - Dividend Option N.A N.A

60

HSBC FTP Series




March 31, 2013#

8. Returns (%):

a. Last One Year

Scheme

Regular Growth Option 8.6160% N.A

Direct Plan - Growth Option 8.8200% N.A

Benchmark

CRISIL Short-Term Bond Fund Index 8.7808% N.A

b. Since Inception

Scheme



Benchmark

CRISIL Short-Term Bond Fund Index 8.7628% 0.0500%

1 AAuM = Average daily net assets.2 Gross income = amount against (A) in the Revenue account i.e. Income.3 Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the period.4 Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the period.5. The net asset value disclosed represents the computed NAV on March 31, 2014 (Non-business Day),



# Scheme launched during the previous fi nancial year


61

HSBC FTP Series


HSBC FIXED TERM SERIES 91#Current Period ended

March 31, 2014


Open

Growth Option N.A.




High





Low





End5






End 20,408



4. Expense Ratio:










Retail



Corporate



62

HSBC FTP Series


March 31, 2014

8. Returns (%):

a. Last One Year Scheme

Regular Growth Option N.ADirect Plan - Growth Option N.A

BenchmarkCRISIL Short-Term Bond Fund Index N.A

b. Since Inception Scheme

Regular Growth Option 6.2174%Direct Plan - Growth Option 6.4356%

BenchmarkCRISIL Short-Term Bond Fund Index 6.9590%






63

HSBC FTP Series



March 31, 2014


Open

Growth Option N.A.




High





Low





End5






End 28,217



4. Expense Ratio:










Retail



64

HSBC FTP Series


March 31, 2014

Corporate



8. Returns (%):

a. Last One Year

Scheme



Benchmark

CRISIL Short-Term Bond Fund Index N.A

b. Since Inception

Scheme



Benchnmark

CRISIL Short-Term Bond Fund Index 7.4321%






65

HSBC FTP Series



Current Period endedMarch 31, 2014


Open

Growth Option N.A.




High





Low





End5






End 9,174



4. Expense Ratio:










Retail



66

HSBC FTP Series


Current Period endedMarch 31, 2014

Corporate



8. Returns (%):

a. Last One YearSchemeRegular Growth Option N.ADirect Plan - Growth Option N.A


b. Since InceptionSchemeRegular Growth Option 7.6043%Direct Plan - Growth Option 7.7697%

BenchnmarkCRISIL Short-Term Bond Fund Index 7.1127%






67

HSBC FTP Series



March 31, 2014


Open

Growth Option N.A.




High





Low





End5






End 14,810



4. Expense Ratio:










Retail



68

HSBC FTP Series


March 31, 2014

Corporate



8. Returns (%):










69

HSBC FTP Series



March 31, 2014


Open

Growth Option N.A.




High





Low





End5






End 5,745



4. Expense Ratio:










Retail



70

HSBC FTP Series


March 31, 2014

Corporate



8. Returns (%):










71

HSBC FTP Series



March 31, 2014


Open

Growth Option N.A.




High





Low





End5






End 16,339



4. Expense Ratio:










Retail



72

HSBC FTP Series


March 31, 2014

Corporate



8. Returns (%):

a. Last One Year

Scheme



Benchmark


b. Since Inception

Scheme



Benchnmark







73

HSBC FTP Series



March 31, 2014


Open

Growth Option N.A.




High





Low





End5






End 7,733



4. Expense Ratio:










Retail



74

HSBC FTP Series


March 31, 2014

Corporate



8. Returns (%):

a. Last One Year

Scheme



Benchmark


b. Since Inception

Scheme



Benchnmark







75

HSBC FTP Series



March 31, 2014


Open

Growth Option N.A.




High





Low





End5






End 6,461



4. Expense Ratio:










Retail



76

HSBC FTP Series


March 31, 2014

Corporate



8. Returns (%):

a. Last One Year

Scheme



Benchmark


b. Since Inception

Scheme



Benchnmark







77

HSBC FTP Series



March 31, 2014


Open

Growth Option N.A.




High





Low





End5






End 18,405



4. Expense Ratio:










Retail



Corporate



78

HSBC FTP Series


March 31, 2014

8. Returns (%):

a. Last One Year

Scheme



Benchmark


b. Since Inception

Scheme



Benchnmark


1 AAuM = Average daily net assets.2 Gross income = amount against (A) in the Revenue account i.e. Income.3 Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the period.4 Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the period.5 The net asset value disclosed represents the computed NAV on March 31, 2014 (Non-business Day),





79

HSBC FTP Series



March 31, 2014


Open

Growth Option N.A.




High





Low





End5






End 26,470



4. Expense Ratio:










Retail



80

HSBC FTP Series


March 31, 2014

Corporate



8. Returns (%):

a. Last One Year

Scheme



Benchmark


b. Since Inception

Scheme



Benchnmark







81

HSBC FTP Series



March 31, 2014


Open

Growth Option N.A.




High





Low





End5






End 12,305



4. Expense Ratio:










Retail



82

HSBC FTP Series


March 31, 2014

Corporate



8. Returns (%):

a. Last One Year

Scheme



Benchmark


b. Since Inception

Scheme



Benchnmark







83

HSBC FTP Series



March 31, 2014


Open

Growth Option N.A.




High





Low





End5






End 15,182



4. Expense Ratio:






Regular Dividend Option 0.14%





84

HSBC FTP Series


March 31, 2014


Retail



Corporate



8. Returns (%):

a. Last One Year

Scheme



Benchmark


b. Since Inception

Scheme



Benchnmark



and not the last declared NAV




85

HSBC FTP Series



March 31, 2014


Open

Growth Option N.A.




High





Low





End5






End 31,163



4. Expense Ratio:










Retail



86

HSBC FTP Series


March 31, 2014

Corporate



8. Returns (%):

a. Last One Year

Scheme



Benchmark


b. Since Inception

Scheme



Benchnmark







87

HSBC FTP Series


HSBC FIXED TERM SERIES 89

1 Investments:




1.4 Open position of Securities Borrowed and / or Lent by the Scheme as of fi nancial year ended March 31, 2014 and March 31, 2013 are NIL.


1.6 Aggregate Unrealised Gain / Loss as at the end of the fi nancial year and percentage to net assets is as under:



2014 2013


– Appreciation – – 737 0.00 ~

– Depreciation 20,864 0.00 ~ 172,761 0.02

Non Convertible Debentures and Bonds


– Depreciation 5,120 0.00 ~ 15,639 0.00 ~


1.7 The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial period 2013-14 (excluding accretion of discount) are Rs. 81,8048,782 and 821,072,928 respectively being 92.76% and 93.10% of the average daily net assets.

The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial period 2012-13 (excluding accretion of discount) are Rs. 847,136,141 and Nil respectively being 99.94% and 0.00% of the average daily net assets.





Amount (Rupees)


2014 2013

Debt Instruments 68,994,880 7.49 68,843,609 8.12

Money Market Instruments 845,368,664 91.80 778,934,346 91.84

Total 914,363,544 99.30 847,777,955 99.95

88

HSBC FTP Series

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




Relation

Period Covered



Commission paid

[Rupees]*


Fund


Associate 2013-2014 4.37 87.36 – –



Relation

Period Covered



Commission paid

[Rupees]*


Fund


Associate 2012-2013 42.05 49.63 – –

* Borne by HSBC Asset Management (India) Private Limited





2013-2014


Growth Option 83,045,723.689 – – 83,045,723.689 10

Dividend Option 1,394,000.000 – – 1,394,000.000 10

Direct Plan- Growth Option

285,000.000 – – 285,000.000 10

Direct Plan- Dividend Option

– – – – 10

2012-2013

Description Opening Units

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

Growth Option – 83,045,723.689 – 83,045,723.689 10

Dividend Option – 1,394,000.000 – 1,394,000.000 10

Direct Plan- Growth Option

– 285,000.000 – 285,000.000 10

Direct Plan- Dividend Option

– – – – 10


89

HSBC FTP Series


6 No contingent liabilities for the period ended March 31, 2014 and March 31, 2013.





90

HSBC FTP Series


HSBC FIXED TERM SERIES 90

1 Investments:




1.4 Open position of Securities Borrowed and / or Lent by the Scheme as of fi nancial years ended March 31, 2014 and March 31, 2013 are NIL.


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



2014 2013



– Depreciation 4,415 0.00~ 197,386 0.03


1.7 The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial period 2013-14 (excluding accretion of discount) are Rs. 687,855,986 and 688,495,018 respectively being 102.64% and 102.73% of the average daily net assets.

The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial period 2012-2013 (excluding accretion of discount) are Rs. 641,988,547 and Nil respectively being 99.76% and 0% of the average daily net assets.

1.8 Non -Traded securities in the portfolio:




Amount (Rupees)


2014 2013

Money Market Instruments 699,073,437 99.88 642,484,771 99.80

Total 699,073,437 99.88 642,484,771 99.80





Relation

Period Covered



Commission paid

[Rupees]*


Fund


Associate 2013-2014 0.15 100 – –

91

HSBC FTP Series




Relation

Period Covered



Commission paid

[Rupees]*


Fund


Associate 2012-2013 32.43 50.44 – –

* Borne by HSBC Asset Management (India) Private Limited





2013-2014


Growth Option 32,841,344.877 – – 32,841,344.877 10

Dividend Option 1,000.000 – – 1,000.000 10


31,453,409.939 – – 31,453,409.939 10


– – – – 10

2012-2013



Growth Option – 32,841,344.877 – 32,841,344.877 10

Dividend Option – 1,000.000 – 1,000.000 10

Direct Plan - Growth Option – 31,453,409.939 – 31,453,409.939 10

Direct Plan - Dividend Option – – – – 10


6 No contingent liabilities for the period ended March 31, 2014 and March 31, 2013.




92

HSBC FTP Series



1 Investments:


1.2 Open Positions of derivatives as of period ended March 31, 2014 is NIL.


1.4 Open position of Securities Borrowed and / or Lent by the Scheme as of fi nancial period ended March 31, 2014 is NIL.


1.6 Aggregate Unrealised Gain / Loss as at the end of the fi nancial period and percentage to net assets:


2014


– Appreciation 780,136 0.04


1.7 The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial period 2013-2014 (excluding accretion of discount) are Rs. 1,913,198,663 and NIL respectively being 96.70% and 0% of the average daily net assets.

1.8 Non-Traded securities in the portfolio of the Scheme as of the Years ended March 31, 2014 is NIL





Relation

Period Covered



Commission paid

[Rupees]


Fund


Associate 2013-2014 167.68 82.09 1,534,316 69.13

HSBC InvestDirect Securities (India) Limited Associate 2013-2014 – – 301 0.01




93

HSBC FTP Series



2013-2014



Growth Option – 185,198,156.484 – 185,198,156.484 10

Dividend Option – 3,187,563.377 – 3,187,563.377 10


– 3,187,241.341 – 3,187,241.341 10


– 500,000.000 – 500,000.000 10

5 As these are the fi rst fi nancial statements of the Schemes since the date of launch, there are no prior period comparatives.






94

HSBC FTP Series



1 Investments:








2014








1.8 Non-Traded securities in the portfolio of the Scheme as of the period ended March 31, 2014 is NIL





Relation

Period Covered



Commission paid

[Rupees]


Fund


Associate 2013-2014 188.83 70.04 1,358,248 81.82




95

HSBC FTP Series



2013-2014



Growth Option – 188,178,109.126 – 188,178,109.126 10

Dividend Option – 1,559,322.547 – 1,559,322.547 10


– 74,207,500.471 – 74,207,500.471 10


– – – – 10







96

HSBC FTP Series



1 Investments:








2014








1.7 The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial period 2013-2014 (excluding accretion of discount) are Rs.849,876,342 and NIL respectively being 95.44% and 0% of the average daily net assets.

1.8 Non -Traded securities in the portfolio:



2014

Money Market Instruments 20,663,828 2.25

Total 20,663,828 2.25





Relation

Period Covered



Commission paid

“[Rupees]


Fund


Associate 2013-2014 85.09 94.97 707,243 75.43

97

HSBC FTP Series






2013-2014



Growth Option – 843,762,006.970 – 843,762,006.970 10

Dividend Option – 5,280,183.210 – 5,280,183.210 10


– 2,690,938.200 – 2,690,938.200 10


– – – – 10







98

HSBC FTP Series



1 Investments:








2014




1.7 The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial period 2013-2014 (excluding accretion of discount) are Rs.1,386,170,280 and NIL respectively being 96.13% and 0% of the average daily net assets.

1.8 Non-Traded securities in the portfolio of the Scheme as of the Year ended March 31, 2014 is NIL





Relation

Period Covered



Commission paid

[Rupees]


Fund


Associate 2013-2014 97.26 68.24 589,076 73.43




99

HSBC FTP Series



2013-2014



Growth Option – 102,457,387.642 – 102,457,387.642 10

Dividend Option – 369,321.999 – 369,321.999 10


– 36,203,925.450 – 36,203,925.450 10


– – – – 10







100

HSBC FTP Series



1 Investments:








2014







1.7 The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial period 2013-2014 (excluding accretion of discount) are Rs. 551,659,532 and NIL respectively being 97.99% and 0% of the average daily net assets.






Relation

Period Covered



Commission paid

[Rupees]


Fund


Associate 2013-2014 53.90 97.10 206,806 74.00




101

HSBC FTP Series



2013-2014



Growth Option – 54,309,381.244 – 54,309,381.244 10

Dividend Option – 631,068.467 – 631,068.467 10


– 521,000.000 – 521,000.000 10


– – – – 10







102

HSBC FTP Series



1 Investments:








2014







1.7 The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial period 2013-2014 (excluding accretion of discount) are Rs.1,567,564,376 and NIL respectively being 97.96% and 0% of the average daily net assets.






Relation

Period Covered



Commission paid

[Rupees]


Fund


Associate 2013-2014 156.08 98.52 627,381 77.00




103

HSBC FTP Series



2013-2014



Growth Option – 156,156,762.928 – 156,156,762.928 10

Dividend Option – 923,500.000 – 923,500.000 10


– 177,650.888 – 177,650.888 10


– – – – 10







104

HSBC FTP Series



1 Investments:








2014













Relation

Period Covered



Commission paid

[Rupees]


Fund


Associate 2013-2014 73.90 98.51 234,682 72.59




105

HSBC FTP Series



2013-2014



Growth Option – 73,400,941.029 – 73,400,941.029 10

Dividend Option – 959,217.480 – 959,217.480 10


– 420,667.417 – 420,667.417 10


– – – – 10







106

HSBC FTP Series



1 Investments:








2014


– Appreciation 16,650 0.00~












Relation

Period Covered



Commission paid

[Rupees]


Fund


Associate 2013-2014 73.90 98.51 234,681.57 72.59




107

HSBC FTP Series



2013-2014



Growth Option – 60,945,076.515 – 60,945,076.515 10

Dividend Option – 1,800,000.000 – 1,800,000.000 10


– 1,000.000 – 1,000.000 10


– – – – 10







108

HSBC FTP Series



1 Investments:








2014


– Appreciation 63,300 0.00~












Relation

Period Covered



Commission paid

[Rupees]


Fund


Associate 2013-2014 139.53 76.98 86,438.99 33.57




109

HSBC FTP Series



2013-2014



Growth Option – 139,903,168.192 – 139,903,168.192 10

Dividend Option – 750,000.000 – 750,000.000 10


– 40,044,917.423 – 40,044,917.423 10


– – – – 10







110

HSBC FTP Series



1 Investments:








2014








1.7 The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial period 2013-2014 (excluding accretion of discount) are Rs. 2,598,936,840 and Nil respectively being 99.07% and 0% of the average daily net assets.






Relation

Period Covered



Commission paid

[Rupees]


Fund


Associate 2013-2014 144.46 95.67 – –




111

HSBC FTP Series



2013-2014



Growth Option – 196,431,734.063 – 196,431,734.063 10

Dividend Option – 1,278,679.328 – 1,278,679.328 10


– 63,070,299.730 – 63,070,299.730 10


– – – – 10







112

HSBC FTP Series



1 Investments:








2014







1.7 The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2013 - 2014 (excluding accretion of discount) is Rs. 1,441,440,791 and Rs. 230,418,750 respectively being 117.90% and 18.85% of the average daily net assets.






Relation

Period Covered



Commission paid

[Rupees]


Fund


Associate 2013-2014 116.00 94.63 – –




113

HSBC FTP Series



2013-2014



Growth Option – 118,914,782.784 – 118,914,782.784 10

Dividend Option – 1,569,092.562 – 1,569,092.562 10


– 1,095,000.000 – 1,095,000.000 10


– – – – 10







114

HSBC FTP Series



1 Investments:








2014







1.7 The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2013 - 2014 (excluding accretion of discount) is Rs. 1,500,952,688 and NIL respectively being 99.23% and 0% of the average daily net assets.






Relation

Period Covered



Commission paid

[Rupees]


Fund


Associate 2013-2014 116.00 94.63 – –




115

HSBC FTP Series



2013-2014



Growth Option – 149,613,222.486 – 149,613,222.486 10

Dividend Option – 777,591.591 – 777,591.591 10


– 310,525.697 – 310,525.697 10


– – – – 10







116

HSBC FTP Series



1 Investments:








2014






– Depreciation 470,580 –

1.7 The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2013 - 2014 (excluding accretion of discount) is Rs. 3,099,866,384 and NIL respectively being 99.55% and 0% of the average daily net assets.

1.8 Non -Traded securities in the portfolio: Aggregate Value of Equity, Debt & Money Market Instruments and percentages to net assets are as under :


2014

Money Market Instruments 122,824,023 3.94

Total 122,824,023 3.94





Relation

Period Covered



Commission paid

[Rupees]


Fund


Associate 2013-2014 240.60 77.37 – –

117

HSBC FTP Series






2013-2014



Growth Option – 247,819,742.154 – 247,819,742.154 10

Dividend Option – 589,877.197 – 589,877.197 10


– 62,570,860.474 – 62,570,860.474 10


– – – – 10







118

HSBC FTP Series

















119

HSBC FTP Series
















120

HSBC FTP Series

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Documents

Abridged Schemewise Annual Reports 201 - HSBCHEF seeks to generate long-term capital growth from an actively managed portfolio of equity and equity related securities. The net assets