HSBC - Recession_div C_group 5

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Impact of Recession: HSBC Mutual Fund

19 February 2009

Group 5 Archit Chaurasiya 218

Rajiv Chaudhary 217

Ashish Dalmia 219Shubhanshu Gupta 226

Harshil Shah 245

Prashant Sukhwani 250



Mutual Fund



What is a Mutual Fund

y Form of trust that pools the funds of a whole lot of investors tomake more money by investing in an array of financialinstruments

y Advantages of a MF

± Professional Management

± Diversification

± Flexibility in choice - selection, redemption

± Low costs

± Transparency



Mutual Fund Flow Chart



Type of Funds

Equity: invest a major part of their

corpus in equities

Debt: invest in fixed income

securities such as bonds, corporate

debentures, Government securities

and money market instruments

Balanced Fund: invest 40-60% inequity and debt instruments.

Liquid: invest exclusively in safer

short-term instruments such as

treasury bills, certificates of deposit,

commercial paper and inter-bank call

money, government securities, etc.

Index: invest in securities in the

same weightage comprising of an

index



HSBC AMC



HSBC Mutual Fund

Category Scheme

Equity HSBC Advantage FundHSBC Dynamic Fund

HSBC Emerging Markets Fund

HSBC Equity Fund

HSBC Opportunities Fund

HSBC Midcap Equity Fund

HSBC Small Cap Fund

HSBC Tax Saver Equity FundHSBC Unique Opportunities Fund

Debt HSBC Flexi Debt Fund

HSBC FRF LTP

HSBC Gilt Fund STP

HSBC Income Fund Invt Plan

HSBC Income Fund S T P

HSBC Liquid Plus FundHSBC MIP Regular Plan

HSBC MIP Savings Plan

HSBC FTS

HSBC Interval Fund

Liquid HSBC FRF STP

HSBC Cash Fund



HSBC ± U l i

± HSBC has lost 37% of it U from September 2008 to Januar 2009

± In rupee terms it amounts to a whopping Rs. 58 billion

Source: www.f as.usda.gov

1553282

975283

0

500000

1000000

1500000

2000000

um (Rs in lakhs)



Recession: Impact on Investment by HSBC AMC

±Automobiles

±Steel

±Real Estate

±Cement

±Gems & Jewellery

±Banking

±Aviation

y Indian mutual fund unit head of equities, Mihir Vora, has resigned lastmonth.

y The fund house lost its head of fixed income Shailendra Jhingan inDecember .



Sources

y http://news.moneycontrol.com/mf/glossary.php

y http://www.investopedia.com/university/mutualfunds/default.asp

y http://www.valueresearchonline.com

y http://www.amfiindia.com/

y http://www.mutualfundsindia.com/resourcecentre.asp

y http://www.assetmanagement.hsbc.co.in/site/home



To be continued«



A Chat with Mrs. Deepali Naair Vice President & Head of Mar keting HSBC



Mar keting and Recession

y Marketing can work wonders in recession

± Price of media cheapest

± Brand Building easier

y BUT«

± Companies have no money to eat , so where is the question of advertisingand marketing



Product

y New product launch / delays

± No new product development

± No launches lined up

± Concentration on current products



Place

y Distribution channel changes

± Expansion of the channel in terms of additional sales officers and agentsstopped

± Contracts on quarterly / yearly basis ensures channel to operate at presetcost for atleast sometime before the price catches up

y Commission / Schemes

± Internal Sales Officer scheme: Meet set business targets, get nonmonetary benefits like gift items

± Distributor Contest: Commit a certain business and based on the level of

commitment get commission rates. (industry avg: 2 ±

2.5)







Promotion - II

y Campaign delayed / Promotional Activities

± Yes, plans of relaunch of a fund cancelled

± Fund not giving returns

± Hence campaign was cancelled

± Bonus scheme explained in the place part as they are meant for channels

y Changes in Media / Media Planning

± No change whatsoever



MIscellaneous

y Changes in compensation packages

± Technically a decrement across levels

± No increment

± Bonus pittance

y R ecruitment in your dept

± R ecruitment Freeze

± Denied permission to fill a vacant position in the dept

± People not meeting up their targets are laid off



Future Outlook

± Marketing Depts have to ride and survive this cycle

± Good time to strengthen your business fundamentals in anticipationof tide to change

± Marketing needs to rethink its usefulness to the organisation byconcentrating less on media and advertising but more onimprovement of basic customer operations and on direct marketing

± Customer R elation Management is seen as the key to brand building



Thank You

Group 5 Archit Chaurasiya 218

Rajiv Chaudhary 217

Ashish Dalmia 219

Shubhanshu Gupta 226

Harshil Shah 245

Prashant Sukhwani 250

Documents

HSBC - Recession_div C_group 5