January 2014 · Wholesale Price Index (WPI) moderated to 6.2% in December 2013 (YoY vs. 7.5% in November), while the Consumer Price Index (CPI) print for December 2013 saw a sharp

January 2014

Index

1

In this Issue ...

Fund Manager Commentary Pg 2

HSBC Equity Fund Pg 6

HSBC India Opportunities Fund Pg 8

HSBC Midcap Equity Fund Pg 10

HSBC Progressive Themes Fund Pg 12

HSBC Tax Saver Equity Fund Pg 14

HSBC Unique Opportunities Fund Pg 16

HSBC Dynamic Fund Pg 18

HSBC Emerging Markets Fund Pg 20

HSBC Small Cap Fund Pg 21

HSBC Brazil Fund Pg 23

Fund Managers - Equity Pg 24

Comparative Performance of Equity Schemes Pg 26

HSBC MIP - Savings Plan Pg 29

HSBC MIP - Regular Plan Pg 31

HSBC Income Fund - Investment Plan Pg 33

HSBC Income Fund - Short Term Plan Pg 35

HSBC Floating Rate Fund - Long Term Plan Pg 37

HSBC Cash Fund Pg 39

HSBC Gilt Fund Pg 41

HSBC Ultra Short Term Bond Fund Pg 42

HSBC Flexi Debt Fund Pg 44

Fund Managers - MIP & Debt Pg 46

Comparative Performance of MIP & Debt Schemes Pg 47

Fund Manager Commentary January 2014

2

Equity & MIP

Market UpdateEquities marked a weak beginning to the calendar year 2014, as the global news flow adversely affected the investor sentiments in the Emerging Markets including India. The US Federal Reserve’s Quantitative Easing (QE) taper plan continued to influence emerging market flows as it was decided to bring down the liquidity tap by an additional USD 10 bn to USD 65 bn worth of bond buying every month going forward, though largely on expected lines. There were also concerns on the news flow that the China’s manufacturing may weaken for the first time in six months and this ignited fears that the global growth may be at a risk of losing its momentum. On the domestic front, the Reserve Bank of India (RBI) unexpectedly raised the Repo rate by 25 bps during the mid-quarter policy review, citing its resolve to rein in inflation. However, the RBI in the policy commentary guided that a further tightening in the near term is not anticipated if the inflation trajectory continues to trend down. The domestic political scenario remained vociferous ahead of slated May 2014 general elections and there were certain populist actions taken that suggested that any further fiscal policy reforms may need to wait till after the general elections. The central government decided to reinstate 12 LPG cylinders for domestic consumers while the newly formed AAP government at Delhi acted on its poll promise of power tariff cut, turning it against the power distribution firms operating in the region.

The market indices of BSE Sensex & Nifty were down 3.1% & 3.4% respectively during January 2014. The broader market indices were more impacted as they gave up gains in a weak market. The BSE Midcap & BSE Smallcap indices lost 5.9% & 4.4% respectively during the month. Amongst the BSE sectoral indices, IT outperformed the rest gaining 4.4% during the month, while Healthcare was the only other sector that gained during the month. Bankex, Metals & Capital goods were the worst performing sectors during the month.

The Foreign Institutional Investors (FIIs) took a pause during the month as they net sold Indian equities worth ~USD 23 mn (cash segment). This is after a strong net buying pattern shown by the segment over past few months and ending CY 2013 on a high. The Domestic Institutional Investors (DIIs) too ended as net sellers seeing outflows worth ~USD 235 mn during January 2014 led by Mutual Funds, while Insurance Companies ended as net buyers in a weak market.

Currencies across the emerging markets came under pressure during the month accentuated by the Federal Reserve taper & global growth concerns. The economies that were impacted most were the ones running higher external deficits like Argentina & Turkey. However, Indian Rupee (INR) held up well relative to other emerging market currencies and ended the month depreciating by just 1.4% as against the sharp fall seen in other comparable market currencies. The actions taken by the RBI & the government post the sharp depreciation of INR during the mid-2013 seem to have worked well in stabilising the currency during this bout of emerging market outflows.

Global news flows impacted investor sentiments

Source: Bloomberg ; Central Statistical Organization (CSO) India

Emerging market currencies under pressure but INR holds up relatively better

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

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Repo Rate Movement

Repo Rate

Source: Bombay Stock Exchange (BSE)

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Indices Performance - January 2014

Inflation & Industrial Growth

Moderation in Inflation data

Both headline & retail inflation softened during the month of December 2013, helped by correction in vegetable prices due to the winter effect. The headline Wholesale Price Index (WPI) moderated to 6.2% in December 2013 (YoY vs. 7.5% in November), while the Consumer Price Index (CPI) print for December 2013 saw a sharp fall to 9.9% (YoY vs. 11.2% in November). As part of the monetary policy framework revamp, the committee headed by Mr. Urjit Patel came out with its recommendations and envisaged lowering the CPI to below 6% levels by Jan 2016. The report also emphasizes the focus on CPI data while taking policy decisions going forward.

IIP continued on the contraction path

The factory output or the Index of Industrial Production (IIP) showed a contraction of 2.1% for November 2013 (YoY, vs. -1.6% in October), as against an expectation of a marginal growth. This weak reading was surprising given the lower base of the previous year but was largely explained by the sharp decline seen in the Consumer Durables segment.

Global Economic Scenario

China events may take centre stage

Emerging market currencies were in focus once again after a brief pause. Along with the US Federal Reserve’s additional USD 10 bn tapering plan, it was also the global growth concerns after the expectations of a soft China manufacturing data that spooked investor sentiments. The expectation of a softer growth trajectory in China has also given rise to renewed concerns on the ballooning debt scenario there. With a lower than expected GDP growth, the high levels of debt may trigger undesirable implications and also a likely contagion effect across the globe. On the other hand, the US Federal Reserve decided to further curtail the monthly bond purchase programme or QE by about USD 10 bn to USD 65 bn. This was largely on expected lines but the emerging markets may feel the impact of actual liquidity withdrawal from the system and the China news flows may accentuate the concerns further.

Going ForwardThe direction of the equity market in the near term is expected to be governed by the global news flows especially those related to China & other emerging markets. Equities may remain volatile in the near term and with no larger positive triggers expected from the domestic constituents till the general elections and hence may remain range bound in the medium term. The US Federal Reserve’s taper plan is a known factor now, however the actual impact of the liquidity withdrawal and its reverberations may continue to be felt across emerging markets especially those economies with higher Current Account Deficits (CAD). India may be better positioned at this juncture as the country’s external macro indicators have improved at the margin. But fundamentals of the domestic equity market may take a back seat for now and it may be the behavior of the FIIs that may influence the market performance in the medium term. Despite these near term headwinds, we still hold a constructive view on equities from a long term perspective. From a domestic point of view, we may be approaching the bottom of this economic cycle and given the significant advantages that India enjoy over other emerging markets viz favourable demographics, relatively lesser penetration of most goods & services and the under-investment in infrastructure, this may lead to sustained growth ahead. At HSBC, we employ a bottom up stock picking strategy aimed at identifying those profitable companies trading at reasonable valuations. We thus advise investors to remain invested in equities and buy into equities from a long term perspective. A systematic investment plan is the best bet during times of heightened volatility and it may also be prudent to increase equity allocation during the period of sharp corrections.Source: Bloomberg, for all data except where mentioned otherwise


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Wholesale Price Index Inflation (WPI)

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

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Index of Industrial Production (IIP)

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


4

Review: HSBC Progressive Themes FundCurrently focusing on the following themes; 1.Economic Reforms (36.8%) which includes Financial sector reform- 28.3% and Oil & Gas Sector deregulation sub theme- 8.5% and 2.Infrastructure (35.3%) which includes Power- 13.4%, Construction– 12% and Logistics- 9.9%. Well diversified exposure across sectors encompassing the above themes.Review: HSBC Dynamic FundThe cash levels and sector allocation in the fund are likely to change depending on the market conditions and technical factors. Review: HSBC MIP Regular and Savings PlansOur current exposure is 15.07% in HMIP Regular and 25.10%, in HMIP Savings. Currently it is more biased towards large caps than mid or small caps.

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

Sectors HSBC Equity Fund

HSBC India Opportunities

Fund

HSBCMidcap

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

Overweight Underweight = Neutral

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

Review: HSBC Equity FundBeing overweight information technology and underweight industrials, telecommunication, utilities helped performance while being overweight materials hurt performance.

DebtRBI's Monetary Policy, Economic Events and Data

Monetary policy delivers a surprise pause

Monetary Policy Framework

Contrary to the market expectations of pause in rates, the RBI hiked the repo rates by 25 bps followed by a guidance wherein further policy tightening in the near term is not anticipated. It may be noted that earlier the RBI had paused by reasoning to buy further time to assess further data prints on inflation. Flat readings on the core (ex – food and fuel) Consumer Price Index (CPI) and Wholesale Price Index (WPI) inflation outweighed substantial fall in the headline WPI inflation justifying the reason for the recent monetary action. Effects of recent fall in food prices, would contribute to softer prints on inflation justifying the pause as guided by the RBI.Industrial activity remained in contraction mode, mainly on account of manufacturing, which declined for the second month in succession during the third quarter (Q3). Wholesale price index (WPI), headline inflation eased to a four-month low with the sharp decline in vegetable and fruit prices. Retail inflation measured by the CPI declined significantly on account of the anticipated disinflation in vegetable and fruit prices, it still remains elevated at close to double digits. Inflation excluding food and fuel has also been high, especially in respect of services, indicative of wage pressures and other second round effects. As regards to external sector, the global recovery has been gaining traction, led by the strengthening of the US economy, but it is still uneven and subdued in the Eurozone area and Japan, and a slowdown in China seems to be underway.The RBI released much awaited report on monetary policy framework formalized by a committee headed by Urjit Patel, Deputy Governor, RBI. The report lays down a roadmap for bringing down inflation indicating a shift to CPI as the nominal anchor of inflation. The panel suggested adopting a longer-term target of 4 percent for CPI inflation with a band of +/- 2 percent. Given the current elevated level of CPI inflation, the panel recommended a 12-month target of 8 percent and 24-month target of 6 percent, before the long term inflation target is formally adopted.

Inflation prints slide downwards amidst benign IIP prints

India’s industrial production (IP) growth fell to -2.1% year-on-year YoY in November 2013 following a 1.6% decline in October, much worse than market expectation of 0.8%. Apart from weak demand, the loss in working days owing to the festival season is also responsible for the sharp slump. The weakness is not broad-based as except one; all use-based segments have registered positive growth this month Consumer durables, however, declined 21.5% YoY after falling by 12.1% in October 2013, suggesting a sharp slowdown in consumer discretionary demand owing to weak income growth, high inflation and high interest rates.WPI inflation moderated sharply to 6.2% YoY in December 2013 from 7.5% in November, led by a sharp reversal in vegetable prices (-29.7% month-on-month) and weak demand. Food inflation (primary + manufactured) eased to 9.5% YoY in December 2013 from 13.8% in November, while core WPI inflation rose to 2.8% from 2.7%.CPI inflation eased to 9.9% YoY in December 2013 down from 11.2% in November. Food price inflation also eased to 12.1% YoY in December 2013 from 14.7% in November, led by a reversal in vegetable prices. Core CPI inflation remained unchanged at 8.0% YoY in December 2013.India’s trade deficit widened to USD10.1bn in December from USD9.2bn in November 2013. Export growth moderated to 3.5% YoY in December 2013 from 5.9% YoY in November, driven by lower petroleum product exports and weak gems & jewellery and minerals exports. Import growth contracted again, but by less, easing to 15.3% YoY after a 16.4% decline in November 2013. Gold and silver imports rose to USD1.8bn in December 2013 from USD1.1bn in November. Oil imports contracted to -5.2% YoY in December (from -1.1%) and imports excluding oil and gold contract by -9.5% (from -9.8%).

Market Activity

Demand-supply turns favorable

Bond markets witnessed a steep rally in the first fortnight of the New Year. Rise in bond prices was on the back of onshore as well as offshore macro data prints. Following factors paved the bond rally• Lower than expected jobs data at US leading to softening of US Treasury yields• Lower than expected CPI and WPI prints• Announcement on deferring of the scheduled auction• Proposed reduction in fiscal deficit to 4.65%; which could result in cancellation of one auction• Surprise announcement of open market operations• Increase in term repo auctionsThe above factors in the span of one week led to a steep rally in the bond prices as the benchmark ten year yields traded as low as 8.51% levels as against last 8.90% levels witnessed in end December 2013.Monetary policy outcome led to a brief sell off in the rates which got accentuated by the offshore developments on the EM front. With just one scheduled auction (presuming the postponed auctions remains cancelled) yields will remain supported at elevated levels and bouts of volatility could be contributed by RBI actions on liquidity (OMO) and developments in INR on account of EM developments.

Expansion of corporate bond spreads

Contrary to the sovereign segment; supply of credit issuances and seasonal demand for deposits would keep credit yields elevated in the near term.

Global EconomyThis month witnessed aggressive moves from major Emerging Market (EM) central banks, to mitigate risk of a re-run of the scenario played out in the third quarter of 2013.Hawkish monetary stances adopted by Brazil, Turkey, South Africa and India seem to have been dictated by both, domestic inflationary pressures persisting despite sluggish growth, as well as the looming fear of US Fed tapering becoming more material in quantum. The Turkish central bank’s unprecedented hike in interest rates also signals desperation of EM economies to avoid loss of investor confidence. It is important to note that these rate hikes have happened despite slowing growth in most countries. Federal Reserve policy makers throw no surprise, reduce monthly purchase program by USD 10 bn (USD 5bn reduction each in Treasury and MBS purchases) to USD 65 bn.

Going ForwardWe expect demand supply of bonds to play a crucial role on respective yield curves. Sea-sonal demand for deposits from banks might keep credit yields elevated and may also lead to inversion in the credit yield curve. Corporate bond issuances have been relatively low in the recent past, which could lead to increased supply implying some pressure on the credit yield curve. On the contrary, supply schedule of sovereign bonds remains very thin ensur-ing the gilts would remain well bid at elevated levels. The RBI has provided much needed comfort on this process being non market disruptive providing further stability to the longer end yields. Considering the above, we expect markets to remain range bound in the near term. We expect period of pause on rates in the near term which leads to yield movements being determined more by demand supply of bonds. Key risks to our views on the rate front would include alteration in pace of US tapering and impact on INR in case the emerging market sell off accentuates. It may be noted that the recent mop up of forex reserves and outlook on CAD provide further comfort on the INR front unlike in the recent past. Hence, we would be biased towards a relatively lower duration whilst exploring the opportunities available in the G sec curve owing to reduced supply in the near termSource: Bloomberg, for all data except where mentioned otherwise


5

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

Issuer Market Value(` in Lacs)

% to NetAssets

Auto Tata Motors 1,677.84 3.92%Maruti Suzuki India 1,227.19 2.86%Auto AncillariesMotherson Sumi Systems 918.45 2.14%Banks ICICI Bank 3,012.49 7.03%Axis Bank 2,133.61 4.98%HDFC Bank 628.50 1.47%Yes Bank 615.30 1.44%Bank of Baroda 548.40 1.28%State Bank of India 457.16 1.07%Construction ProjectLarsen & Toubro 1,478.85 3.45%Consumer Non DurablesI T C 2,925.90 6.83%Ferrous MetalsTata Steel 1,068.15 2.49%Jindal Steel & Power 876.05 2.05%Fertilisers Coromandel International 812.40 1.90%Finance HDFC 565.92 1.32%Rural Electrification Corporation 449.38 1.05%Media & EntertainmentSun TV Network 432.60 1.01%Minerals/Mining Sesa Sterlite 1,224.60 2.86%NMDC 580.00 1.35%Oil Oil & Natural Gas Corporation 2,204.40 5.15%Cairn India 875.75 2.04%Petroleum Products Reliance Industries 1,246.73 2.91%Pharmaceuticals Dr Reddy’s Laboratories 1,826.69 4.26%Lupin 705.52 1.65%PowerNTPC 632.25 1.48%Software HCL Technologies 2,924.40 6.83%Infosys 2,775.83 6.48%Tata Consultancy Services 1,400.66 3.27%Tech Mahindra 1,340.21 3.13%Wipro 862.58 2.01%Telecom - Services Bharti Airtel 551.25 1.29%Total 91.00%

HSBC Equity Fund (HEF) January 2014

6


% to NetAssets

Other Equity Investments 2,238.55 5.23%CBLOs 1,914.68 4.47%Net Current Assets -298.05 -0.70%Total Net Assets as on 31 January 2014 42,834.19 100.00%

Asset AllocationAuto 6.78%Auto Ancillaries 2.14%Banks 17.27%Construction Project 3.45%Consumer Non Durables 6.83%Ferrous Metals 4.54%Fertilisers 1.90%Finance 2.37%Media & Entertainment 1.01%Minerals/Mining 4.21%Oil 7.19%Petroleum Products 2.91%Pharmaceuticals 5.91%Power 1.48%Software 21.72%Telecom - Services 1.29%Other Equity Investments 5.23%Reverse Repos/CBLOs 4.47%Net Current Assets -0.70%Total Net Assets 100.00%

Dividend DeclarationRecord Date / period of

dividend declaredDividend (` per unit)

Non-InstitutionalDividend (` per unit)

InstitutionalNAV (`) per unit(cum dividend)

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

Date of Allotment 10-Dec-02Benchmark S&P BSE 200NAV (Growth) per unit(as on 31.01.14)

` 105.8148

Fund Managers Neelotpal SahaiSIP AvailableMinimumApplicationAmount

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

Exit Load@ NilStatistical Ratios

Standard Deviation 0.89%R-Squared 0.9540Beta (Slope) 0.9208Sharpe Ratio** -0.0121Total Expense Ratio as on January 31, 2014

Regular 2.49% Direct Plan 1.79% Excludes service tax on Investment Management fees of 0.18% of Total Net Assets. Annualised Expense Ratio from 1st April 2013 onwards

Regular 2.47% Direct Plan 1.77% Excludes service tax on Investment Management fees of 0.18% of Total Net Assets. Portfolio Turnover 0.82

Statistical ratios disclosed as per daily returns of the last 3 years/since inception, whichever is later. @ Effective from March 1, 2013 for prospective investments. **Risk free rate: 10 yr Gsec: 8.78% as on January 31, 2014.

HSBC Equity Fund (HEF) January 2014

7

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

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

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


% to NetAssets

Auto Eicher Motors 580.76 3.55%Tata Motors 524.33 3.20%Auto AncillariesBalkrishna Industries 489.00 2.99%Banks ICICI Bank 1,086.47 6.64%Axis Bank 707.46 4.32%Yes Bank 384.56 2.35%HDFC Bank 345.68 2.11%ING Vysya Bank 314.40 1.92%Cement Shree Cement 443.67 2.71%Construction Prestige Estates Project 313.54 1.92%Construction ProjectsLarsen & Toubro 443.66 2.71%Consumer Non Durables I T C 975.30 5.96%Ferrous MetalsTata Steel 445.06 2.72%Finance HDFC 363.80 2.22%LIC Housing Finance 293.63 1.79%Industrial ProductsSupreme Industries 536.63 3.28%Media & EntertaintmentDish TV India 191.80 1.17%Sun TV Network 180.25 1.10%Minerals/MiningSesa Sterlite 423.90 2.59%Oil Oil & Natural Gas Corporation 619.99 3.79%Petroleum Products Reliance Industries 415.58 2.54%Pharmaceuticals Aurobindo Pharma 542.28 3.31%Glenmark Pharmaceuticals 419.44 2.56%Divi's Laboratories 394.65 2.41%PowerCESC 394.02 2.41%Software HCL Technologies 877.32 5.36%Infosys 740.22 4.52%Tech Mahindra 446.74 2.73%Mindtree 428.93 2.62%Eclerx Services 365.70 2.23%Wipro 230.02 1.41%Telecom - ServicesBharti Airtel 267.75 1.64%Textile ProductArvind 519.23 3.17%Textile CottonVardhman Textiles 359.70 2.20%Total 98.15%

HSBC India Opportunities Fund (HIOF) January 2014

8


% to NetAssets

CBLOs 499.39 3.05%Net Current Assets -201.75 -1.20%Total Net Assets as on 31 January 2014 16,363.07 100.00%

Asset AllocationAuto 6.75%Auto Ancillaries 2.99%Banks 17.34%Cement 2.71%Construction 1.92%Construction Project 2.71%Consumer Non Durables 5.96%Ferrous Metals 2.72%Finance 4.01%Industrial Products 3.28%Media & Entertaintment 2.27%Minerals/Mining 2.59%Oil 3.79%Petroleum Products 2.54%Pharmaceuticals 8.28%Power 2.41%Software 18.87%Telecom - Services 1.64%Textile Products 3.17%Textile Cotton 2.20%Reverse Repos/CBLOs 3.05%Net Current Assets -1.20%Total Net Assets 100.00%





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

Date of Allotment 24-Feb-04Benchmark S&P BSE 500NAV (Growth) per unit(as on 31.01.14)

` 39.6997

Fund Manager Neelotpal SahaiSIP AvailableMinimumApplication Amount

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





Statistical ratios disclosed as per daily returns of the last 3 years/since inception, whichever is later. @ Effective from March 1, 2013 for prospective investments.**Risk free rate: 10 yr Gsec: 8.78% as on January 31, 2014.

HSBC India Opportunities Fund (HIOF) January 2014

9


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

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


% to NetAssets

Auto Ancillaries Apollo Tyres 530.24 6.76%Balkrishna Industries 163.94 2.09%Banks Jammu & Kashmir Bank 277.24 3.53%Dena Bank 259.34 3.31%DCB Bank 208.28 2.65%State Bank of Bikaner and Jaipur 132.38 1.69%State Bank of Travancore 88.82 1.13%Allahabad Bank 79.45 1.01%CementEverest Industries 184.37 2.35%ConstructionBF Utilities 151.97 1.94%Construction ProjectKEC International 113.00 1.44%Consumer Durables Bata India 161.68 2.06%Consumer Non DurablesGodfrey Phillips India 138.09 1.76%Venky’s (India) 134.97 1.72%FinanceCholamandalam Investment & Fin. Co. 221.61 2.82%Industrial Capital GoodsBEML 120.11 1.53%Swelect Energy System 87.14 1.11%Industrial Products Diamond Power Infrastructure 156.77 2.00%Minerals/Mining Gujarat Mineral Development Corporation 235.52 3.00%PesticidesUPL 493.55 6.29%PI Industries 489.05 6.23%PharmaceuticalsAurobindo Pharma 499.84 6.37%Alembic Pharmaceuticals 378.25 4.82%PowerJSW Energy 112.01 1.43%Software Tech Mahindra 375.26 4.78%Nucleus Software Exports 346.72 4.42%Persistent Systems 286.66 3.65%Polaris Financial Technology 154.86 1.97%Eclerx Services 85.33 1.09%Textile - CottonVardhman Textiles 288.45 3.68%Textile ProductsArvind 185.44 2.36%Siyaram Silk Mills 102.61 1.31%Transportation Adani Ports and Special Economic Zone 146.95 1.87%Gateway Distriparks 124.39 1.59%Total 95.76%

HSBC Midcap Equity Fund (HMEF) January 2014

10


% to NetAssets

Other Equity Investments 173.77 2.21%CBLOs 83.13 1.06%Net Current Assets 74.68 0.97%Total Net Assets as on 31 January 2014 7,845.87 100.00%

Asset AllocationAuto Ancillaries 8.85%Banks 13.32%Cement 2.35%Construction 1.94%Construction Project 1.44%Consumer Durables 2.06%Consumer Non Durables 3.48%Finance 2.82%Industrial Capital Goods 2.64%Industrial Products 2.00%Minerals/Mining 3.00%Pesticides 12.52%Pharmaceuticals 11.19%Power 1.43%Software 15.91%Textiles - Cotton 3.68%Textile Products 3.67%Transportation 3.46%Other Equity Investments 2.21%Reverse Repos/Cblos 1.06%Net Current Assets 0.97%Total Net Assets 100.00%





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

Date of Allotment 19-May-05Benchmark S&P BSE MidcapNAV (Growth) per unit(as on 31.01.14)

` 19.3987

Fund Manager Dhiraj SachdevSIP AvailableMinimumApplicationAmount

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





Statistical ratios disclosed as per daily returns of the last 3 years/since inception, whichever is later. @ Effective from March 1, 2013 for prospective investments.**Risk free rate: 10 yr Gsec: 8.78% as on January 31, 2014.

HSBC Midcap Equity Fund (HMEF) January 2014

11


Our exposure to midcap stocks in HSBC Midcap Equity Fund (HMEF) is 90.4200%

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

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


% to NetAssets

Auto Tata Motors DVR 281.59 2.97%Auto Ancillaries Apollo Tyres 682.07 7.19%Banks Jammu & Kashmir Bank 560.30 5.90%ICICI Bank 479.03 5.05%Dena Bank 389.69 4.11%Karnataka Bank 320.43 3.38%Indian Bank 262.94 2.77%Union Bank of India 140.66 1.48%United Bank of India 99.46 1.05%CementEverest Industries 273.82 2.89%HIL 117.86 1.24%JK Cement 102.82 1.08%ConstructionIRB Infrastructure Developers 192.88 2.03%National Buildings Construction Corporation 168.88 1.78%Construction ProjectsGammon Infrastructure Projects 104.71 1.10%Finance Rural Electrification Corporation 431.40 4.55%GasGujarat State Petronet 111.10 1.17%Industrial Capital GoodsBEML 130.41 1.37%Industrial Products FAG Bearings India 439.86 4.63%Diamond Power Infrastructure 190.84 2.01%Minerals/MiningGujarat Mineral Development Corporation 334.82 3.53%Petroleum Products Hindustan Petroleum Corporation 527.58 5.56%Indian Oil Corporation 164.88 1.74%Power JSW Energy 330.75 3.48%Power Grid Corporation of India 262.63 2.77%Reliance Infrastructure 236.47 2.49%CESC 109.45 1.15%ServicesAditya Birla Nuvo 364.01 3.84%Textile - Cotton Vardhman Textiles 359.70 3.79%TransportationGateway Distriparks 508.41 5.36%Adani Ports And Special Economic Zone 330.64 3.48%Gujarat Pipavav Port 98.96 1.04%Total 95.98%

HSBC Progressive Themes Fund (HPTF) January 2014

12


% to NetAssets

Other Equity Investments 327.91 3.46%CBLOs 109.93 1.16%Net Current Assets -55.86 -0.60%Total Net Assets as on 31 January 2014 9,491.01 100.00%

Asset AllocationAuto 2.97%Auto Ancillaries 7.19%Banks 23.74%Cement 5.21%Construction 3.81%Construction Project 1.10%Finance 4.55%Gas 1.17%Industrial Capital Goods 1.37%Industrial Products 6.64%Minerals/Mining 3.53%Petroleum Products 7.30%Power 9.89%Services 3.84%Textiles - Cotton 3.79%Transportation 9.88%Other Equity Investments 3.46%Reverse Repos/CBLOs 1.16%Net Current Assets -0.60%Total Net Assets 100.00%





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

Date of Allotment 23-Feb-06Benchmark S&P BSE 200NAV (Growth) per unit(as on 31.01.14)

` 9.0806


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






HSBC Progressive Themes Fund (HPTF) January 2014

13


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

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


% to NetAssets

Auto Maruti Suzuki India 479.96 2.97%Auto Ancillaries MRF 640.93 3.97%Motherson Sumi Systems 581.40 3.60%Amara Raja Batteries 308.40 1.91%Banks ICICI Bank 923.50 5.72%HDFC Bank 746.34 4.62%Federal Bank 404.62 2.50%Indusind Bank 356.93 2.21%ING Vysya Bank 263.80 1.63%Jammu & Kashmir Bank 221.79 1.37%Cement Shree Cements 936.99 5.80%The Ramco Cements 392.94 2.43%Construction ProjectLarsen & Toubro 492.95 3.05%Consumer DurablesHavells India 308.86 1.91%Whirlpool of India 212.69 1.32%Consumer Non DurablesI T C 856.63 5.30%McLeod Russel India 449.43 2.78%United Spirits 336.38 2.08%Fertilisers Coromandel International 234.52 1.45%Finance HDFC 476.58 2.95%LIC Housing Finance 296.42 1.83%Sundaram Finance 281.44 1.74%GasPetronet LNG 203.50 1.26%Industrial Capital GoodsCrompton Greaves 448.15 2.77%Industrial ProductsSupreme Industries 549.88 3.40%OilOil & Natural Gas Corporation 371.99 2.30%Pharmaceuticals Aurobindo Pharma 499.84 3.09%Divi's Laboratories 399.43 2.47%Ipca Laboratories 370.37 2.29%Lupin 330.71 2.05%Software Tata Consultancy Services 761.96 4.72%Infosys 747.62 4.63%Tech Mahindra 409.21 2.53%Telecom - Services Bharti Airtel 413.91 2.56%Total 97.21%

HSBC Tax Saver Equity Fund (HTSF) January 2014

14

Date of Allotment 05-Jan-07Benchmark S&P BSE 200NAV (Growth) per unit(as on 31.01.14)

` 16.7912

Fund Manager Aditya KhemaniSIP AvailableMinimumApplicationAmount

` 500(Lumpsum & SIP)


Standard Deviation 0.83%R-Squared 0.9129Beta (Slope) 0.8477Sharpe Ratio** 0.0007Total Expense Ratio as on January 31, 2014

Regular 2.60% Direct Plan 1.90% Excludes service tax on Investment Management fees of 0.19% of Total Net Assets.Annualised Expense Ratio from 1st April 2013 onwards




% to NetAssets

Other Equity Investments 109.35 0.68%CBLOs 112.05 0.69%Net Current Assets 226.73 1.42%Total Net Assets as on 31 January 2014 16,158.19 100.00%

Asset AllocationAuto 2.97%Auto Ancillaries 9.48%Banks 18.05%Cement 8.23%Construction Project 3.05%Consumer Durables 3.23%Consumer Non Durables 10.16%Fertilisers 1.45%Finance 6.52%Gas 1.26%Industrial Capital Goods 2.77%Industrial Products 3.40%Oil 2.30%Pharmaceuticals 9.90%Software 11.88%Telecom - Services 2.56%Other Equity Investments 0.68%Reverse Repos/CBLOs 0.69%Net Current Assets 1.42%Total Net Assets 100.00%





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

HSBC Tax Saver Equity Fund (HTSF) January 2014

15


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

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

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


% to NetAssets

Auto Maruti Suzuki India 106.36 2.47%Bajaj Auto 90.89 2.11%Auto Ancillaries Motherson Sumi System 126.45 2.94%Amara Raja Batteries 119.18 2.77%Banks ICICI Bank 262.73 6.11%HDFC Bank 190.69 4.43%Karur Vysya Bank 107.13 2.49%Bank of Baroda 89.94 2.09%Federal Bank 87.18 2.03%Jammu & Kashmir Bank 78.64 1.83%CementShree Cements 110.92 2.58%Grasim Industries 86.19 2.00%Construction ProjectsLarsen & Toubro 144.19 3.35%Consumer Non DurablesI T C 288.31 6.71%McLeod Russel India 82.91 1.93%Ferrous MetalsTata Steel 64.71 1.51%FertilisersCoromandel International 76.31 1.77%FinanceIDFC 121.16 2.82%HDFC 112.21 2.61%LIC Housing Finance 101.79 2.37%Industrial Products Supreme Industries 128.79 3.00%Minerals/MiningNMDC 87.00 2.02%Non - Ferrous Metals Hindustan Zinc 68.74 1.60%Oil Oil & Natural Gas Corporation 172.22 4.01%Petroleum Products Reliance Industries 129.66 3.02%Pharmaceuticals Divi's Laboratories 154.57 3.59%Lupin 115.53 2.69%Software Infosys 289.61 6.74%Tata Consultancy Services 183.77 4.27%HCL Technologies 178.17 4.14%Tech Mahindra 92.03 2.14%Mindtree 43.61 1.01%Telecom - Services Bharti Airtel 97.65 2.27%Total 97.42%

HSBC Unique Opportunities Fund (HUOF) January 2014

16


% to NetAssets


Asset AllocationAuto 4.58%Auto Ancillaries 5.71%Banks 18.98%Cement 4.58%Construction Projects 3.35%Consumer Non Durables 8.64%Ferrous Metals 1.51%Fertilisers 1.77%Finance 7.80%Industrial Products 3.00%Minerals/Mining 2.02%Non - Ferrous Metals 1.60%Oil 4.01%Petroleum Products 3.02%Pharmaceuticals 6.28%Software 18.30%Telecom - Services 2.27%Other Equity Investments 0.75%Reverse Repos/CBLOs 2.36%Net Current Assets -0.53%Total Net Assets 100.00%

Date of Allotment 21-Mar-07Benchmark S&P BSE 200NAV (Growth) per unit(as on 31.01.14)

` 11.1667

Fund Manager Gaurav Mehrotra & Amaresh Mishra

SIP AvailableMinimumApplicationAmount

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


Standard Deviation 0.87%R-Squared,m 0.9355Beta (Slope) 0.8935Sharpe Ratio** -0.0199Total Expense Ratio as on January 31, 2014

Regular 2.70% Direct Plan 2.00% Excludes service tax on Investment Management fees of 0.20% of Total Net Assets.Annualised Expense Ratio from 1st April 2013 onwards

Regular 2.70% Direct Plan 2.00% Excludes service tax on Investment Management fees of 0.21% of Total Net Assets.Portfolio Turnover 0.44


HSBC Unique Opportunities Fund (HUOF) January 2014

17

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

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


% to NetAssets

AutoTata Motors 436.94 5.39%

Bajaj Auto 85.57 1.05%

Banks ICICI Bank 493.85 6.09%

Axis Bank 421.11 5.19%

HDFC Bank 282.83 3.49%

Bank of Baroda 82.26 1.01%

CementGrasim Industries 128.26 1.58%

Construction ProjectsLarsen & Toubro 256.33 3.16%

Consumer Non DurablesI T C 568.93 7.01%

Hindustan Unilever 114.02 1.41%

Ferrous Metals Tata Steel 178.03 2.19%

Finance HDFC 282.96 3.49%

Minerals/Mining Sesa Sterlite 141.30 1.74%

NMDC 116.00 1.43%

Oil Oil & Natural Gas Corporation 275.55 3.40%

Petroleum Products Reliance Industries 349.08 4.30%

Pharmaceuticals Aurobindo Pharma 235.78 2.91%

Sun Pharmaceutical Industries 147.18 1.81%

PowerNTPC 139.10 1.71%

Power Grid Corporation of India 105.05 1.29%

Services Aditya Birla Nuvo 110.31 1.36%

Software Infosys 555.17 6.84%

HCL Technologies 438.66 5.41%

Tata Consultancy Services 134.46 1.66%

Telecom - Services Bharti Airtel 116.55 1.44%

Total 76.36%

HSBC Dynamic Fund (HDF) January 2014

18


% to NetAssets

Other Equity Investments 326.72 4.03%CBLOs 1,688.49 20.81%Net Current Assets -97.08 -1.20%Total Net Assets as on 31 January 2014 8,113.36 100.00%

Asset AllocationAuto 6.44%Banks 15.78%Cement 1.58%Construction Projects 3.16%Consumer Non Durables 8.42%Ferrous Metals 2.19%Finance 3.49%Minerals/Mining 3.17%Oil 3.40%Petroleum Products 4.30%Pharmaceuticals 4.72%Power 3.00%Services 1.36%Software 13.91%Telecom - Services 1.44%Other Equity Investments 4.03%Reverse Repos/CBLOs 20.81%Net Current Assets -1.20%Total Net Assets 100.00%

Date of Allotment 24-Sep-07Benchmark S&P BSE 200NAV (Growth) per unit(as on 31.01.14)

` 10.2713

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


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






HSBC Dynamic Fund (HDF) January 2014

19

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

Date of Allotment 17-Mar-08Benchmark MSCI Emerging

Markets IndexNAV (Growth) per unit(as on 29.01.14)$

` 10.7492

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


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


Standard Deviation 1.55%R-Squared 0.2580Beta (Slope) 1.1090Sharpe Ratio** 0.0003Total Expense Ratio as on January 31, 2014

Regular 2.70% Direct Plan 2.00% (inclusive of underlying scheme’s expenses) Excludes service tax on Investment Management fees of 0.11% of Total Net Assets.Annualised Expense Ratio from 1st April 2013 onwards

Regular 2.71% Direct Plan 2.00% (inclusive of underlying scheme’s expenses) Excludes service tax on Investment Management fees of 0.11% of Total Net Assets. Portfolio Turnover 0.43

Statistical ratios disclosed as per daily returns of the last 3 years/since inception, whichever is later. @ Effective from March 1, 2013 for prospective investments. **Risk free rate: 10 yr Gsec: 8.78% as on January 31, 2014.$ January 30 and 31, 2014 was a non-business day for HSBC Emerging Fund.

Asset AllocationOverseas Mutual Fund 98.66%Reverse Repos/CBLOs 3.37%Net Current Assets -2.03%Total Net Assets 100.00%


% to NetAssets

Overseas Mutual FundHSBC GIF Glob Emerg Mkts Eq S1 Dis 1,516.46 98.66%CBLOs 51.81 3.37%Net Current Assets -31.19 -2.03%Total Net Assets as on 29 January 2014 1,537.09 100.00%

An Open Ended SchemeInvestment Objective: To provide long term capital appreciation by investing in India and in the emerging markets, in equity and equity related instruments, share classes and units/securities issued by overseas mutual funds or unit trusts. The fund may also invest a limited proportion in domestic debt and money market instruments.

HSBC Emerging Markets Fund (HEMF) January 2014

20

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


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


% to NetAssets

AutoVST Tillers Tractors 14.65 1.14%Auto Ancillaries Suprajit Engineering 79.63 6.18%Balkrishna Industries 66.83 5.18%Majestic Auto 32.15 2.49%Banks State Bank of Travancore 49.00 3.80%State Bank of Bikaner and Jaipur 48.05 3.73%Dena Bank 41.93 3.25%Karnataka Bank 41.13 3.19%DCB Bank 38.10 2.96%Cement Orient Cement 76.88 5.96%Chemicals India Glycols 28.84 2.24%Consumer Durables Orient Paper & Industries 30.19 2.34%Bata India 25.68 1.99%Consumer Non DurablesGodfrey Phillips India 38.17 2.96%Lakshmi Energy and Foods 19.35 1.50%Globus Spirits 18.32 1.42%FinanceCholamandalam Investment Finance Co. 39.42 3.06%Industrial Capital GoodsSanghvi Movers 25.54 1.98%TIL 23.13 1.79%Indo Tech Transformers 23.10 1.79%Industrial Products Ador Welding 18.31 1.42%Minerals/MiningGujarat Mineral Development Corporation 25.30 1.96%PesticidesPI Industries 29.16 2.26%PharmaceuticalsAurobindo Pharma 82.52 6.40%Alembic Pharmaceuticals 35.60 2.76%Software Nucleus Software Exports 122.71 9.52%Tech Mahindra 32.17 2.50%Textile - Products SRF 28.83 2.24%Textile - Cotton RSWM 83.73 6.49%Transportation Adani Ports and Special Economic Zone 29.39 2.28%Total 96.78%

HSBC Small Cap Fund (HSCF) January 2014

21


% to NetAssets


Asset AllocationAuto 1.14%Auto Ancillaries 13.85%Banks 16.93%Cement 5.96%Chemicals 2.24%Consumer Durables 4.33%Consumer Non Durables 5.88%Finance 3.06%Industrial Capital Goods 5.56%Industrial Products 1.42%Minerals/Mining 1.96%Pesticides 2.26%Pharmaceuticals 9.16%Software 12.02%Textile - Products 2.24%Textile - Cotton 6.49%Transportation 2.28%Other Equity Investments 1.56%Reverse Repos/CBLOs 5.49%Net Current Assets -3.83%Total Net Assets 100.00%





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

Date of Allotment 24-Mar-08

Benchmark S&P BSE Small Cap Index

NAV (Growth) per unit(as on 31.01.14)

` 9.9338


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





Statistical ratios disclosed as per returns of the last 3 years/since inception, whichever is later.@ Effective from March 1, 2013 for prospective investments.**Risk free rate: 10 yr Gsec: 8.78% as on January 31, 2014.

HSBC Small Cap Fund (HSCF) January 2014

22


Our exposure to small cap stocks in HSBC Small Cap Fund (HSCF) is 85.1700%

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


Date of Allotment 06-May-11Benchmark MSCI Brazil

10/40 IndexNAV (Growth) per unit(as on 31.01.14)

` 7.9000

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


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



Regular 2.70% Direct Plan 2.00% (inclusive of underlying scheme’s expenses) Excludes service tax on Investment Management fees of 0.11% of Total Net Assets.Annualised Expense Ratio from 1st April 2013 onwards

Regular 2.71% Direct Plan 2.00% (inclusive of underlying scheme’s expenses) Excludes service tax on Investment Managementfees of 0.11% of Total Net Assets. Portfolio Turnover 0.04


Asset AllocationOverseas Mutual Fund 98.42%Reverse Repos/CBLOs 2.82%Net Current Assets -1.24%Total Net Assets 100.00%


% to NetAssets

Overseas Mutual FundHSBC GIF BRAZIL EQUITY S3D 9,147.97 98.42%CBLOs 262.38 2.82%

Net Current Assets -115.68 -1.24%

Total Net Assets as on 31 January 2014 9,294.67 100.00%

An Open-Ended Fund of Funds SchemeInvestment Objective: The primary investment objective of the Scheme is to provide long term capital appreciation by investing predominantly in units/shares of HSBC Global Investment Funds (HGIF) Brazil Equity Fund. The Scheme may, at the discretion of the Investment Manager, also invest in the units of other similar overseas mutual fund schemes, which may constitute a significant part of its corpus. The Scheme may also invest a certain proportion of its corpus in money market instruments and/or units of liquid mutual fund schemes, in order to meet liquidity requirements from time to time.

HSBC Brazil Fund (HBF) January 2014

23

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

Name of Scheme Fund Manager

HSBC Equity Fund Neelotpal Sahai (from 27 May 2013)

HSBC India Opportunities Fund Neelotpal Sahai (from 27 May 2013)

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

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

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

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

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

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

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

HSBC Brazil Fund Piyush Harlalka (from 02 July 2012)

Fund Manager’s Experience

Dhiraj Sachdev Senior Vice President and Fund Manager - EquitiesB.Com., ACA, Grad CWA, Diploma in Foreign Trade Management (DFTM)Experience:Over 17 years experience in Equity Research and Fund Management. l HSBC Asset Management (India) Private Ltd Senior Vice President & Fund Manager, from October 2011 to present, Senior Fund Manager from 1 December 2009 to September 2011, Head of Equity-Portfolio Management Services from October 2005 to November 2009 l ASK Raymond James Securities India Private Ltd Portfolio Manager from October 2003 to September 2005 l HDFC Bank Ltd Senior Manager Equities from November 1999 to September 2003 l DSQ Software Ltd Business Analyst from June 1999 to November 1999 Probity Research & Services Ltd (India Infoline Ltd) Research Analyst from November 1998 to May 1999 Ford Brothers Capital Services (P) Ltd Manager Research from July 1996 to Sept 1998

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

Fund Managers - Equity January 2014

24

l

l

Gaurav MehrotraVice President & Assistant Fund ManagerPost Graduate Diploma in Business Management, Bachelor of EngineeringExperience: Over 8 years experience in research. HSBC Asset Management (India) Private Ltd Vice President & Assistant Fund Manager, from April 2012 to present, Associate Vice President, Investment Management from September 2007 to March 2012 JPMorgan Services India Private Ltd Equity Research from August 2005 to September 2007 Tata Consultancy Services Ltd Business Analyst from June 2004 to July 2005

Aditya KhemaniVice President & Fund Manager - EquitiesB.Com. (Hons.), Post Graduate Diploma in Business ManagementExperience: Over 8 years experience in research. l HSBC Asset Management (India) Private Ltd Vice President & Fund Manager (Equity), from April 2012 to present, Assistant Fund Manager, Equities from February 2009 to March 2012; Associate Vice President - Investment Management from October 2007 to February 2009. l SBI Funds Management India Private Ltd Senior Manager - Equity Research from March 2007 to September 2007 l Prudential ICICI Asset Management Company India Private Ltd Assistant Manager - Equity Research from December 2005 to February 2007 l Morgan Stanley Advantage Services India Private Ltd Research Associate from May 2005 to November 2005

Amaresh Mishra Vice President & Assistant Fund ManagerPost Graduate Diploma in Business Manager Management Bachelor of Engineering (Chemical) Experience: Over 8 years of experience in Equities & Sales l HSBC Asset Management (India) Private Ltd Vice President & Assistant Fund Manager, from April 2012 to present, Associate Vice President, Investment Management from April 2008 to March 2012, Associate Vice President, Equities from October 2007 to March 2008; Associate Vice President, Sales and Distribution from March 2005 to September 2007 l Centre for Science and Environment Trainee Researcher from July 2001 to July 2002

Piyush Harlalka Vice President - Fixed Income M.B.A, (Finance), C.A., C.S. Experience:Over 7 years of experience in Research l HSBC Asset Management (India) Private Ltd

Vice President - Fixed Income from April 2012 to present; Associate Vice President - Fixed Income, from October 2010 to March 2012; Assistant Vice President, Investment Management, PMS, from December 2008 to October 2010; Research Analyst, from, July 2007 to November 2008. l Batlivala & Karanai Securities Pvt. Ltd., Research Analyst from April 2006 to June 2007

Fund Managers - Equity January 2014

25

l

l

l

Funds Managed by Neelotpal Sahai.

Comparative Performance of Equity Schemes January 2014

HSBC Equity Fund Date of Inception : 10 Dec 02Scheme Name & Benchmarks Jan 13 -

Dec 13Jan 12 - Dec 12

Jan 11 - Dec 11

Since Inception

HSBC Equity Fund - Growth 2.45% 23.28% -22.68% 24.18%S&P BSE 200 (Scheme Benchmark) 3.45% 30.89% -26.95% 18.55%CNX Nifty (Standard Benchmark) 5.93% 27.43% -24.62% 17.45%`10,000, if invested in HEF, would have become `10,245 `12,328 `7,732 `1,10,492

`10,000, if invested in S&P BSE 200, would have become `10,345 `13,089 `7,305 `66,039

`10,000, if invested in CNX Nifty, would have become `10,593 `12,743 `7,538 `59,551

HSBC India Opportunities Fund Date of Inception : 24 Feb 04Scheme Name & Benchmarks Jan 13 -


Jan 11 - Dec 11

Since Inception

HSBC India Opportunities Fund - Growth 7.15% 25.07% -18.66% 15.39%S&P BSE 500 (Scheme Benchmark) 2.32% 31.12% -27.41% 13.46%CNX Nifty (Standard Benchmark) 5.93% 27.43% -24.62% 13.42%`10,000, if invested in HIOF, would have become `10,715 `12,507 `8,134 `41,020



26

Data for the period January to December has been considered in all cases, except for ‘Since Inception’ returns. ‘Since Inception’ (%) returns are compounded annualised, other % returns are absolute. ‘Since inception’ returns are calculated on 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 specific time period, invested at the start of the period. The returns provided above have been rounded off and hence there may be minor differences between point-to-point returns vis-a-vis returns indicated above.

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



HSBC Dynamic Fund Date of Inception : 24 Sep 07Scheme Name & Benchmarks Jan 13 -


Jan 11 - Dec 11

Since Inception

HSBC Dynamic Fund - Growth -1.92% 22.28% -22.02% 0.80%S&P BSE 200 (Scheme Benchmark) 3.45% 30.89% -26.95% 3.25%CNX Nifty (Standard Benchmark) 5.93% 27.43% -24.62% 3.99%`10,000, if invested in HDF, would have become `9,808 `12,228 `7,798 `10,513



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


27


HSBC Brazil Fund Date Of Inception : 06 May 11Scheme Name & Benchmarks Jan 13 -


Since Inception

HSBC Brazil Fund - Growth -10.57% 6.58% -4.02%MSCI Brazil 10/40 Index (Scheme Benchmark) -17.24% -2.15% -15.28%CNX Nifty (Standard Benchmark) 5.93% 27.43% 4.90%`10,000, if invested in HBF, would have become `8,943 `10,658 `8,966

`10,000, if invested in MSCI Brazil 10/40 Index, would have become `8,276 `9,785 `6,433

`10,000, if invested in CNX Nifty, would have become `10,593 `12,743 `11,357


HSBC Emerging Markets Fund Date of Inception : 17 Mar 08Scheme Name & Benchmarks Jan 13 -


Jan 11 - Dec 11

Since Inception

HSBC Emerging Markets Fund - Growth 1.35% 22.04% -14.10% 2.38%MSCI Emerging Market Index (Scheme Benchmark) 0.92% 13.92% -14.67% 1.42%

CNX Nifty (Standard Benchmark) 5.93% 27.43% -24.62% 5.98%`10,000, if invested in HMEF, would have become `10,135 `12,204 `8,590 `11,461

`10,000, if invested in MSCI Emerging Market Index, would have become `10,092 `11,392 `8,533 `10,852



Funds Managed by - Piyush Harlalka.

HSBC Unique Opportunities Fund Date of Inception : 21 Mar 07Scheme Name & Benchmarks Jan 13 -


Jan 11 - Dec 11

Since Inception

HSBC Unique Opportunities Fund - Growth -2.05% 31.77% -27.72% 2.14%S&P BSE 200 (Scheme Benchmark) 3.45% 30.89% -26.95% 7.60%CNX Nifty (Standard Benchmark) 5.93% 27.43% -24.62% 7.89%`10,000, if invested in HUOF, would have become `9,795 `13,177 `7,228 `11,546




Fund Managed by Gaurav Mehrotra and Amaresh Mishra.

HSBC Tax Saver Equity Fund Date of Inception : 05 Jan 07Scheme Name & Benchmarks Jan 13 -


Jan 11 - Dec 11

Since Inception

HSBC Tax Saver Equity Fund - Growth 2.14% 38.94% -24.24% 8.18%S&P BSE 200 (Scheme Benchmark) 3.45% 30.89% -26.95% 6.18%CNX Nifty (Standard Benchmark) 5.93% 27.43% -24.62% 6.79%`10,000, if invested in HTSF, would have become `10,214 `13,894 `7,576 `17,332




Fund Managed by - Aditya Khemani.


28


HSBC Small Cap Fund Date of Inception : 24 Mar 08Scheme Name & Benchmarks Jan 13 -


Jan 11 - Dec 11

Since Inception

HSBC Small Cap Fund - Growth -6.29% 44.91% -46.64% -0.06%S&P BSE Small Cap (Scheme Benchmark) -12.10% 32.91% -42.61% -1.02%CNX Nifty (Standard Benchmark) 5.93% 27.43% -24.62% 5.57%`10,000, if invested in HSCF, would have become `9,371 `14,491 `5,336 `9,965

`10,000, if invested in S&P BSE Smallcap, would have become `8,790 `13,291 `5,739 `9,425



HSBC Progressive Themes Fund Date of Inception : 23 Feb 06Scheme Name & Benchmarks Jan 13 -


Jan 11 - Dec 11

Since Inception

HSBC Progressive Themes Fund - Growth -20.30% 48.48% -40.51% -0.09%S&P BSE 200 (Scheme Benchmark) 3.45% 30.89% -26.95% 9.07%CNX Nifty (Standard Benchmark) 5.93% 27.43% -24.62% 9.63%`10,000, if invested in HPTF, would have become `7,970 `14,848 `5,949 `9,929




Funds Managed by - Dhiraj Sachdev.

HSBC Midcap Equity Fund Date of Inception : 19 May 05Scheme Name & Benchmarks Jan 13 -


Jan 11 - Dec 11

Since Inception

HSBC Midcap Equity Fund - Growth -4.44% 47.65% -43.47% 8.22%S&P BSE Midcap (Scheme Benchmark) -6.84% 38.72% -34.19% 8.77%CNX Nifty (Standard Benchmark) 5.93% 27.43% -24.62% 14.30%`10,000, if invested in HMEF, would have become `9,556 `14,765 `5,653 `19,769

`10,000, if invested in S&P BSE Midcap, would have become `9,316 `13,872 `6,581 `20,653



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

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Money Market InstrumentsCertificate of DepositIndusInd Bank 799.47 3.72% CRISIL A1+Corporate/PSU DebtCorporate Bonds / DebenturesHDFC 1,173.21 5.45% CRISIL AAARural Electrification Corporation 890.07 4.14% CARE AAAPower Finance Corporation 710.71 3.30% CRISIL AAAHDFC 498.22 2.32% CRISIL AAAPower Finance Corporation 493.12 2.29% CRISIL AAALIC Housing Finance 487.06 2.26% CRISIL AAAPower Finance Corporation 314.61 1.46% CRISIL AAABajaj Finance 298.86 1.39% [ICRA]AA+NABARD 198.09 0.92% CRISIL AAAPower Finance Corporation 136.03 0.63% CRISIL AAAEquityEquitiesShree Cements 500.55 2.33%ITC 368.99 1.72%HDFC Bank 344.60 1.60%ICICI Bank 281.99 1.31%Supreme Industries 231.83 1.08%Grasim Industries 230.86 1.07%Motherson Sumi Systems 213.84 0.99%MRF 213.77 0.99%Divi's Laboratories 210.64 0.98%McLeod Russel India 210.41 0.98%HDFC 179.48 0.83%Larsen & Toubro 162.67 0.76%Crompton Greaves 156.33 0.73%IPCA Laboratories 155.03 0.72%Oil & Natural Gas Corporation 151.55 0.70%Karur Vysya Bank 150.64 0.70% N.ABharti Airtel 141.12 0.66%Tata Consultancy Services 135.02 0.63%Maruti Suzuki India 126.81 0.59%Havells India 126.15 0.59%Petronet LNG 124.21 0.58%The Ramco Cements 121.46 0.56%Amara Raja Batteries 117.29 0.55%IndusInd Bank 117.06 0.54%United Spirits 113.77 0.53%Tech Mahindra 112.58 0.52%LIC Housing Finance 111.58 0.52%Orient Cement 102.31 0.48%Nestle India 100.94 0.47%Sanghvi Movers 62.93 0.29%Hindustan Dorr-Oliver 21.94 0.10%Government Securities8.83% GOVT OF INDIA RED 25-11-2023 2,900.70 13.48% Sovereign7.28% GOVT OF INDIA RED 03-06-2019 1,825.48 8.49% Sovereign8.12% GOVT OF INDIA RED 10-12-2020 1,516.03 7.05% Sovereign9.20% GOVT OF INDIA RED 30-09-2030 1,408.58 6.55% Sovereign8.30% GOVT OF INDIA RED 31-12-2042 271.80 1.26% Sovereign9.39% GUJARAT SDL RED 20-11-2023 175.21 0.81% Sovereign8.28% GOVT OF INDIA RED 21-09-2027 121.03 0.56% SovereignZero Coupon BondsHDFC 299.78 1.39% CRISIL AAATotal 92.57%

HSBC MIP - Savings Plan (HMIP-S) January 2014

29

Date of Allotment 24-Feb-04Benchmark CRISIL MIP

Blended IndexNAV (Growth) per unit(as on 31.01.14)

` 23.3237

Average Maturity of Portfolio

79.11 months

Modified Durationof Portfolio

49.24 months

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

SIP AvailableMinimum Application AmountGrowth `10,000Quarterly Dividend `10,000Monthly Dividend `25,000SIP `1,000 p.m.Exit Load@ NilTotal Expense Ratio as on January 31, 2014


Regular 2.31% Direct Plan 1.79% Excludes service tax on Investment Management fees of 0.18% of Total Net Assets. @ Effective from March 1, 2013 for prospective investments.

Asset AllocationGovernment Securities 38.20%Corporate/ PSU Debt 25.55%Equity 25.10%Cash Equivalents 5.02%Money Market Instrument 3.72%Net Current Assets 2.41%Total Net Assets 100.00%

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Cash EquivalentsCBLOs 1,079.74 5.02%Net Current Assets 515.30 2.41%Total Net Assets as on 31 January 2014 21,511.44 100.00%

Rating ProfileSovereign 38.20%AAA and equivalents 27.88%Equity 25.10%Reverse Repos/ CBLOs 5.02%Net Current Assets 2.41%AA+/ AA-/ AA and equivalents 1.39%Total Net Assets 100.00%

HSBC MIP - Savings Plan (HMIP-S) January 2014

30





HSBC MIP - Savings Plan - Monthly Dividend29-Nov-13 0.05065 0.04851 12.077827-Dec-13 0.05065 0.04851 12.086531-Jan-14 0.05065 0.04851 12.0037HSBC MIP - Savings Plan - Monthly Dividend - Direct Plan29-Nov-13 0.05065 0.04851 12.289127-Dec-13 0.05065 0.04851 12.303831-Jan-14 0.05065 0.04851 12.2266HSBC MIP - Savings Plan - Quarterly Dividend14-Jun-13 0.17144 0.16419 12.473213-Sep-13 0.15585 0.14926 11.915013-Dec-13 0.15585 0.14926 12.0933HSBC MIP - Savings Plan - Quarterly Dividend - Direct Plan13-Dec-13 0.11689 0.11195 12.4703


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

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

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Money Market InstrumentsCertificate of DepositIndusInd Bank 799.47 6.04% CRISIL A1+Corporate/PSU DebtCorporate Bonds / DebenturesNABARD 792.37 5.98% CRISIL AAAHDFC 782.14 5.91% CRISIL AAARural Electrification Corporation 580.48 4.38% CARE AAAPower Finance Corporation 493.12 3.72% CRISIL AAALIC Housing Finance 487.06 3.68% CRISIL AAAPower Finance Corporation 330.33 2.49% CRISIL AAAPower Finance Corporation 219.28 1.66% CRISIL AAABajaj Finance 199.24 1.50% [ICRA]AA+Power Finance Corporation 68.01 0.51% CRISIL AAAEquityEquitiesShree Cements 157.72 1.19%ITC 157.67 1.19%HDFC Bank 133.69 1.01%ICICI Bank 125.93 0.95%Supreme Industries 120.68 0.91%MRF 114.66 0.87%Motherson Sumi Systems 92.33 0.70%HDFC 90.95 0.69%Bharti Airtel 77.49 0.59%Tata Consultancy Services 76.20 0.58%McLeod Russel India 70.96 0.54%Divi's Laboratories 70.22 0.53% N.A.Petronet LNG 65.34 0.49%Crompton Greaves 63.69 0.48%Tech Mahindra 63.44 0.48%IPCA Laboratories 55.55 0.42%Grasim Industries 53.87 0.41%Larsen & Toubro 52.25 0.39%Maruti Suzuki India 48.55 0.37%Oil & Natural Gas Corporation 46.84 0.35%Karur Vysya Bank 46.76 0.35%Havells India 45.94 0.35%Amara Raja Batteries 45.33 0.34%Nestle India 39.37 0.30%LIC Housing Finance 39.15 0.30%Orient Cement 25.88 0.20%Hindustan Dorr-Oliver 6.58 0.05%Sanghvi Movers 5.78 0.04%Government Securities8.83% GOVT OF INDIA RED 25-11-2023 2,012.42 15.20% Sovereign7.28% GOVT OF INDIA RED 03-06-2019 1,078.48 8.15% Sovereign9.20% GOVT OF INDIA RED 30-09-2030 909.09 6.87% Sovereign8.12% GOVT OF INDIA RED 10-12-2020 815.22 6.16% Sovereign8.30% GOVT OF INDIA RED 31-12-2042 190.26 1.44% Sovereign8.28% GOVT OF INDIA RED 21-09-2027 88.44 0.67% Sovereign9.39% GUJARAT SDL RED 20-11-2023 60.07 0.45% SovereignZero Coupon BondsHDFC 599.55 4.53% CRISIL AAATotal 94.41%

HSBC MIP - Regular Plan (HMIP-R) January 2014

31

Date of Allotment 24-Feb-04Benchmark CRISIL MIP

Blended IndexNAV (Growth) per unit(as on 31.01.14)

` 20.3884


77.17 months


48.43 months

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

SIP AvailableMinimum Application AmountGrowth `10,000Quarterly Dividend `10,000Monthly Dividend `25,000SIP `1,000 p.m.Exit Load@ NilTotal Expense Ratio as on January 31, 2014


Regular 2.40% Direct Plan 1.88% Excludes service tax on Investment Management fees of 0.19% of Total Net Assets.@ Effective from March 1, 2013 for prospective investments.

Asset AllocationGovernment Securities 38.94%Corporate/ PSU Debt 34.36%Equity 15.07%Money Market Instrument 6.04%Cash Equivalents 3.07%Net Current Assets 2.52%Total Net Assets 100.00%

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Cash EquivalentsCBLOs 406.06 3.07%Net Current Assets 336.54 2.52%Total Net Assets as on 31 January 2014 13,240.44 100.00%

Rating ProfileSovereign 38.94%AAA and equivalents 38.90%Equity 15.07%Reverse Repos/ CBLOs 3.07%Net Current Assets 2.52%AA+/ AA-/ AA and equivalents 1.50%Total Net Assets 100.00%

HSBC MIP - Regular Plan (HMIP-R) January 2014

32





HSBC MIP - Regular Plan - Monthly Dividend29-Nov-13 0.05065 0.04851 11.033227-Dec-13 0.05065 0.04851 10.999931-Jan-14 0.05065 0.04851 10.9773HSBC MIP - Regular Plan - Monthly Dividend - Direct Plan31-Jan-14 0.05065 0.04851 10.9791HSBC MIP - Regular Plan - Quarterly Dividend14-Jun-13 0.17144 0.16419 11.784813-Sep-13 0.15585 0.14926 11.232213-Dec-13 0.15585 0.14926 11.3097


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

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

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Securitised DebtInvestments - Asset Back Security

India MBS 2002 Series I 21.71 0.25% CRISIL AAA (SO)

Corporate/PSU DebtCorporate Bonds / DebenturesIndian Railway Finance Corporation 878.06 9.97% CRISIL AAAState Bank of India 685.99 7.79% CRISIL AAARural Electrification Corporation 474.06 5.38% CARE AAARural Electrification Corporation 444.50 5.05% CRISIL AAAHDFC 391.07 4.44% CRISIL AAAHDFC 239.00 2.71% CRISIL AAAPower Finance Corporation 150.15 1.71% CRISIL AAAPower Finance Corporation 143.01 1.62% CRISIL AAAGovernment Securities8.12% GOVT OF INDIA RED 10-12-2020 1,578.00 17.92% Sovereign8.83% GOVT OF INDIA RED 25-11-2023 1,480.46 16.81% Sovereign9.20% GOVT OF INDIA RED 30-09-2030 699.30 7.94% Sovereign7.28% GOVT OF INDIA RED 03-06-2019 387.51 4.40% Sovereign9.39% GUJARAT SDL RED 20-11-2023 230.28 2.62% Sovereign8.28% GOVT OF INDIA RED 21-09-2027 97.75 1.11% Sovereign8.30% GOVT OF INDIA RED 31-12-2042 81.54 0.93% Sovereign5.59% GOVT OF INDIA RED 04-06-2016 0.37 0.00% SovereignTotal 90.65%Cash EquivalentsCBLOs 534.17 6.07%Net Current Assets 288.86 3.28%Total Net Assets as on 31 January 2014 8,805.79 100.00%

HSBC Income Fund - Investment Plan (HIF-IP) January 2014

33

Date of Allotment 10-Dec-02Benchmark CRISIL Composite

Bond Fund IndexNAV (Growth) per unit(as on 31.01.14)

` 20.5341


87.16 months


54.67 months

Yield To Maturity* 9.20%Fund Manager Ruchir Parekh &

Sanjay ShahSIP AvailableMinimumApplicationAmount

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

Exit Load@ NilTotal Expense Ratio as on January 31, 2014 Regular 1.85%Direct Plan 1.10%Excludes service tax on Investment Management fees of 0.12% of Total Net Assets.

Annualised Expense Ratio from 1st April 2013 onwards Regular 1.85%Direct Plan 0.85%Excludes service tax on Investment Management fees of 0.12% of Total Net Assets.

@ Effective from March 1, 2013 for prospective investments.* Based on invested Amount

Asset AllocationGovernment Securities 51.73%Corporate / PSU Debt 38.67%Cash Equivalents 6.07%Net Current Assets 3.28%Securitised Debt 0.25%





HSBC Income Fund - Investment Plan - Regular Option - Quarterly Dividend14-Jun-13 0.19482 0.18658 11.801813-Sep-13 0.19482 0.18658 11.039413-Dec-13 0.15585 0.14926 10.8194HSBC Income Fund - Investment Plan - Institutional Option - Quarterly Dividend12-Jun-09 0.11387 0.10598 11.029411-Sep-09 0.11387 0.10598 10.996011-Dec-09 0.11387 0.10598 11.0973

Rating ProfileSovereign 51.73%AAA and equivalents 38.92%Reverse Repos/ CBLOs 6.07%Net Current Assets 3.28%

HSBC Income Fund - Investment Plan (HIF-IP) January 2014

34


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

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

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Money Market InstrumentsCertificate of DepositSyndicate Bank 2,476.67 3.14% CARE A1+Punjab & Sind Bank 2,422.21 3.07% [ICRA]A1+Bank of Maharashtra 2,084.72 2.64% CRISIL A1+Axis Bank 1,987.51 2.52% CRISIL A1+UCO Bank 1,981.06 2.51% CRISIL A1+Central Bank of India 1,786.87 2.26% CARE A1+State Bank of Patiala 1,430.59 1.81% [ICRA]A1+Kotak Mahindra Bank 974.52 1.23% CRISIL A1+IndusInd Bank 899.41 1.14% CRISIL A1+Union Bank of India 893.64 1.13% CRISIL A1+State Bank of Hyderabad 693.61 0.88% [ICRA]A1+Indian Overseas Bank 496.25 0.63% [ICRA]A1+Bank of Baroda 495.75 0.63% [ICRA]A1+Karur Vysya Bank 449.78 0.57% [ICRA]A1+Oriental Bank of Commerce 447.95 0.57% CRISIL A1+Axis Bank 219.38 0.28% CRISIL A1+ICICI Bank 179.67 0.23% [ICRA]A1+Kotak Mahindra Bank 161.13 0.20% CRISIL A1+State Bank of Patiala 146.66 0.19% [ICRA]A1+State Bank of Patiala 120.37 0.15% [ICRA]A1+Oriental Bank of Commerce 120.33 0.15% CRISIL A1+IndusInd Bank 94.77 0.12% CRISIL A1+ICICI Bank 93.29 0.12% [ICRA]A1+ING Vysya Bank 93.26 0.12% CRISIL A1+Yes Bank 93.24 0.12% [ICRA]A1+ICICI Bank 79.01 0.10% [ICRA]A1+Yes Bank 69.11 0.09% [ICRA]A1+IDBI Bank 49.53 0.06% CRISIL A1+Kotak Mahindra Bank 49.41 0.06% CRISIL A1+Commercial PaperIL & FS 1,973.22 2.50% Fitch A1+Sundaram Finance 296.41 0.38% [ICRA]A1+Kotak Mahindra Prime 275.34 0.35% CRISIL A1+Corporate/PSU Debt

Corporate Bonds / DebenturesRural Electrification Corporation 3,975.14 5.03% CRISIL AAAPower Finance Corporation 3,944.94 5.00% CRISIL AAALIC Housing Finance 3,896.50 4.93% CRISIL AAAShriram Transport Finance Company 2,988.90 3.79% CRISIL AAShriram Transport Finance Company 2,981.29 3.78% CRISIL AALIC Housing Finance 2,533.45 3.21% CRISIL AAABajaj Finance 2,492.59 3.16% [ICRA]AA+HDFC 2,491.71 3.16% CRISIL AAAHDFC 2,491.10 3.15% CRISIL AAAHDFC 2,480.57 3.14% CRISIL AAAHDFC 2,480.36 3.14% CRISIL AAARural Electrification Corporation 2,469.45 3.13% CRISIL AAAExport Import Bank of India 2,425.39 3.07% CRISIL AAAPower Finance Corporation 2,422.16 3.07% CRISIL AAAPower Finance Corporation 1,993.33 2.52% CRISIL AAAPower Grid Corporation of India 1,449.37 1.84% CRISIL AAAPower Grid Corporation of India 976.79 1.24% CRISIL AAAShriram Transport Finance Company 498.04 0.63% CRISIL AANABARD 359.25 0.45% CRISIL AAAHDFC 338.56 0.43% CRISIL AAATata Capital Financial Services 309.30 0.39% CRISIL AA+Power Finance Corporation 299.03 0.38% CRISIL AAALIC Housing Finance 139.05 0.18% CRISIL AAAExport Import Bank of India 119.45 0.15% CRISIL AAA

HSBC Income Fund - Short Term Plan (HIF-STP) January 2014

35

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


` 20.6948


17.67 months


14.18 months



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

Exit Load@ NilTotal Expense Ratio as on January 31, 2014 Regular 1.25%Institutional # 0.70%Institutional Plus # 0.60%Direct Plan 0.50%Excludes service tax on Investment Management fees of 0.05% of Total Net Assets.

Annualised Expense Ratio from 1st April 2013 onwards Regular 1.25%Institutional # 0.70%Institutional Plus # 0.60%Direct Plan 0.49%Excludes service tax on Investment Management fees of 0.05% of Total Net Assets.

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

Asset AllocationCorporate / PSU Debt 61.23%Money Market Instruments 29.95%Cash Equivalents 6.92%Net Current Assets 1.90%

Rating ProfileAAA and equivalents 77.93%AA+/ AA-/ AA and equivalents 13.25%

Reverse Repos/ CBLOs 6.92%Net Current Assets 1.90%





HSBC Income Fund - Short Term Plan - Regular Option - Monthly Dividend29-Nov-13 0.05836 0.05589 10.981227-Dec-13 0.04864 0.04658 10.968731-Jan-14 0.04457 0.04268 10.9790HSBC Income Fund - Short Term Plan - Monthly Dividend - Direct Plan31-Jan-14 0.06340 0.06072 11.0860HSBC Income Fund - Short Term Plan - Institutional Option - Monthly Dividend28-Dec-12 0.06057 0.05192 10.615124-Jan-13 0.06312 0.05410 10.635922-Feb-13 0.06114 0.05240 10.5969HSBC Income Fund - Short Term Plan - Institutional Plus Option - Monthly Dividend30-Dec-11 0.08478 0.07266 10.120027-Jan-12 0.05533 0.04742 10.086624-Feb-12 0.05663 0.04854 10.0881

HSBC Income Fund - Short Term Plan (HIF-STP) January 2014

36

Zero Coupon BondsTata Capital Financial Services 1,181.92 1.50% [ICRA]AA+HDFC 599.55 0.76% CRISIL AAATotal 91.18%Cash EquivalentsCBLOs 5,463.03 6.92%Net Current Assets 1,527.41 1.90%Total Net Assets as on 31 January 2014 78,962.30 100.00%


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

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

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Money Market InstrumentsCertificate of DepositPunjab & Sind Bank 2,274.70 16.98% [ICRA]A1+State Bank of Hyderabad 1,288.13 9.62% [ICRA]A1+IDBI Bank 1,287.68 9.61% CRISIL A1+Union Bank of India 1,191.52 8.89% CRISIL A1+Indian Overseas Bank 1,190.99 8.89% [ICRA]A1+Axis Bank 496.88 3.71% CRISIL A1+Indian Bank 347.53 2.59% Fitch A1+Commercial PaperBajaj Finance 1,975.64 14.75% CRISIL A1+Sundaram Finance 1,679.66 12.54% [ICRA]A1+Raymond 396.06 2.96% CARE A1+Fixed DepositFixed Deposit8.85% JAMMU & KASHMIR BK FD RED 14-03-14

1,300.00 9.70% Fixed Deposit

Total 100.24%Cash EquivalentsCBLOs 172.87 1.29%Net Current Assets -205.47 -1.53%Total Net Assets as on 31 January 2014 13,396.21 100.00%

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

January 2014

37

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

IndexNAV (Growth) per unit(as on 31.01.14)

` 19.7472


1.45 months


1.34 months

Yield To Maturity* 8.56%Fund Manager Sanjay Shah &

Ruchir ParekhSIP AvailableMinimumApplicationAmount

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

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

Total Expense Ratio as on January 31, 2014 Regular # 1.29% Institutional 0.74%Direct Plan 0.19% Excludes service tax on Investment Management fees of 0.01% of Total Net Assets. Annualised Expense Ratio from 1st April 2013 onwards Regular # 1.30% Institutional 0.66%Direct Plan 0.19% Excludes service tax on Investment Management fees of 0.01% of Total Net Assets. @ Effective from March 1, 2013 for prospective investments.* Based on invested Amount# Plan(s) discontinued from accepting subscriptions w.e.f. October 01, 2012

Asset AllocationMoney Market Instruments 90.54%Fixed Deposit 9.70%Cash Equivalents 1.29%Net Current Assets -1.53%





HSBC Floating Rate Fund - Long Term Plan - Regular Option - Monthly Dividend29-Nov-13 0.05896 0.05647 10.075727-Dec-13 0.05035 0.04822 10.064631-Jan-14 0.05708 0.05467 10.0732HSBC Floating Rate Fund - Long Term Plan - Monthly Dividend - Direct Plan27-Sep-13 0.08216 0.07868 10.2424HSBC Floating Rate Fund - Long Term Plan - Institutional Option - Monthly Dividend29-Nov-13 0.03524 0.03375 10.665627-Dec-13 0.06547 0.06270 10.693431-Jan-14 0.07589 0.07268 10.6927

Rating ProfileAAA and equivalents 90.54%Fixed Deposit 9.70%Reverse Repos/ CBLOs 1.29%Net Current Assets -1.53%

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

January 2014

38


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


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

IssuerMarketValue

(` in Lacs)

% toNet

AssetsRating

Money Market InstrumentsCertificate of DepositThe Jammu & Kashmir Bank 9,985.70 3.13% CRISIL A1+IDBI Bank 9,914.39 3.11% CRISIL A1+Andhra Bank 9,593.00 3.01% CARE A1+Axis Bank 7,457.73 2.34% CRISIL A1+Karur Vysya Bank 7,415.03 2.32% CRISIL A1+Karur Vysya Bank 7,046.60 2.21% [ICRA]A1+Vijaya Bank 4,997.57 1.57% CRISIL A1+Allahabad Bank 4,997.53 1.57% [ICRA]A1+IndusInd Bank 4,996.72 1.57% CRISIL A1+Central Bank of India 4,992.79 1.57% CRISIL A1+State Bank of Patiala 4,984.82 1.56% [ICRA]A1+Bank of Baroda 4,981.37 1.56% [ICRA]A1+Punjab National Bank 4,980.29 1.56% CARE A1+Dena Bank 4,973.27 1.56% CRISIL A1+Bank of Baroda 4,972.19 1.56% [ICRA]A1+Indian Bank 4,962.54 1.56% Fitch A1+Indian Overseas Bank 4,962.47 1.56% [ICRA]A1+Allahabad Bank 4,962.22 1.56% [ICRA]A1+Bank of India 4,961.41 1.56% CRISIL A1+Oriental Bank of Commerce 4,955.42 1.55% CRISIL A1+Vijaya Bank 4,952.02 1.55% CARE A1+Yes Bank 4,947.13 1.55% [ICRA]A1+Andhra Bank 4,945.13 1.55% CARE A1+Bank of Maharashtra 4,922.56 1.54% CRISIL A1+Bank of Baroda 4,461.73 1.40% [ICRA]A1+Indian Bank 4,170.41 1.31% Fitch A1+Punjab National Bank 3,461.73 1.09% CRISIL A1+Kotak Mahindra Bank 2,498.80 0.78% CRISIL A1+Oriental Bank of Commerce 2,498.24 0.78% CRISIL A1+Canara Bank 2,486.06 0.78% CRISIL A1+Oriental Bank of Commerce 2,486.02 0.78% CRISIL A1+Indian Bank 2,482.99 0.78% Fitch A1+Punjab & Sind Bank 2,482.41 0.78% [ICRA]A1+Bank of India 2,482.09 0.78% CRISIL A1+Punjab National Bank 2,478.68 0.78% CARE A1+State Bank of Hyderabad 2,478.15 0.78% [ICRA]A1+Dena Bank 2,476.36 0.78% [ICRA]A1+Kotak Mahindra Bank 2,421.05 0.76% CRISIL A1+Commercial PaperTata Capital Financial Services 9,995.48 3.13% [ICRA]A1+ICICI Securities Primary Dealership 9,945.03 3.12% CRISIL A1+Magma Fincorp 9,377.48 2.94% CARE A1+Gruh Finance 7,464.53 2.34% CRISIL A1+Aditya Birla Finance 7,414.52 2.32% [ICRA]A1+Raymond 6,535.05 2.05% CARE A1+Raymond 5,995.46 1.88% CARE A1+Sundaram Finance 4,997.56 1.57% [ICRA]A1+Chambal Fertilizers & Chemicals 4,979.12 1.56% CRISIL A1+Chambal Fertilizers & Chemicals 4,975.97 1.56% CRISIL A1+Magma Fincorp 4,962.96 1.56% CARE A1+Gruh Finance 4,952.01 1.55% CRISIL A1+Berger Paints (I) 4,947.37 1.55% CRISIL A1+Redington (India) 4,943.72 1.55% [ICRA]A1+Tata Motors Finance 4,936.99 1.55% [ICRA]A1+Redington (India) 4,447.43 1.39% [ICRA]A1+Redington (India) 4,148.24 1.30% [ICRA]A1+National Housing Bank 2,498.89 0.78% [ICRA]A1+Tube Investments Of India 2,487.98 0.78% CRISIL A1+Chambal Fertilizers & Chemicals 2,480.14 0.78% CRISIL A1+Fixed DepositFixed Deposit8.60% YES BANK FD RED 03-03-2014 5,000.00 1.57% Fixed Deposit

HSBC Cash Fund (HCF) January 2014

39

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


` 1261.3278


0.91 months


0.84 months



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

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

Total Expense Ratio as on January 31, 2014 Regular # 1.00% Institutional # 0.35%Institutional Plus 0.02%Direct Plan 0.01%Currently there is no Service Tax levied due to nil Investment Management Fees being charged.Annualised Expense Ratio from 1st April 2013 onwards Regular # 1.00% Institutional # 0.35%Institutional Plus 0.05%Direct Plan 0.04%Currently there is no Service Tax levied due to nil Investment Management Fees being charged.@ Effective from March 1, 2013 for prospective investments.* Based on invested Amount# Plan(s) discontinued from accepting subscriptions w.e.f. October 01, 2012





HSBC Cash Fund - Institutional Option - Monthly Dividend29-Nov-13 6.99668 6.70087 1009.035027-Dec-13 5.32771 5.10245 1006.893331-Jan-14 6.57986 6.30166 1008.5001HSBC Cash Fund - Monthly Dividend - Direct Plan31-Jan-14 6.58727 6.30877 1008.4541HSBC Cash Fund - Institutional Plus Option - Monthly Dividend26-Aug-11 0.04886 0.04686 10.138329-Sep-11 0.05876 0.05636 10.150928-Oct-11 0.05244 0.05030 10.1428

Asset AllocationMoney Market Instruments 91.80%Cash Equivalents 4.23%Treasury Bill 2.49%Fixed Deposit 1.57%Net Current Assets -0.09%

Rating ProfileAAA and equivalents 91.80%Reverse Repos/ CBLOs 4.23%Sovereign 2.49%Fixed Deposit 1.57%Net Current Assets -0.09%

HSBC Cash Fund (HCF) January 2014

40


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

HSBC Cash Fund

01 Jan 2014 to 15 Jan 2014***

16 Jan 2014 to 31 Jan 2014***

Average for the Month

Normal (erstwhile insti-plus)

0.02 0.02 0.02

Direct 0.01 0.01 0.01

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


Treasury Bill91 DAYS TREASURY BILL RED 20-03-2014 5,440.57 1.71% Sovereign

182 DAYS TREASURY BILL RED 14-02-2014 2,492.66 0.78% Sovereign

Total 95.86%Cash EquivalentsCBLOs 13,482.89 4.23%Net Current Assets -170.13 -0.09%

Total Net Assets as on 31 January 2014 3,18,956.53 100.00%

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


` 15.3630


88.03 months


50.72 months

Yield To Maturity* 8.72%Fund Manager Sanjay ShahSIP AvailableMinimum ` 10,000Application ` 1,000 p.m.(SIP)AmountExit Load@ Nil

Total Expense Ratio as on January 31, 2014 Regular 1.00% Direct Plan 0.50% Excludes service tax on Investment Management fees of 0.06% of Total Net Assets. Annualised Expense Ratio from 1st April 2013 onwards Regular 1.00% Direct Plan 0.50% Excludes service tax on Investment Management fees of 0.05% of Total Net Assets. @ Effective from March 1, 2013 for prospective investments.* Based on invested Amount

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

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Government Securities8.12% GOVT OF INDIA RED 10-12-2020 61.98 24.38% Sovereign7.28% GOVT OF INDIA RED 03-06-2019 51.36 20.20% Sovereign9.20% GOVT OF INDIA RED 30-09-2030 29.97 11.79% Sovereign8.83% GOVT OF INDIA RED 25-11-2023 20.07 7.90% Sovereign8.30% GOVT OF INDIA RED 31-12-2042 13.59 5.35% Sovereign9.39% GUJARAT SDL RED 20-11-2023 5.01 1.97% SovereignTotal 71.59%Cash EquivalentsCBLOs 69.18 27.21%Net Current Assets 3.07 1.20%Total Net Assets as on 31 January 2014 254.22 100.00%





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

Asset AllocationGovernment Securities 71.59%Cash Equivalents 27.21%Net Current Assets 1.20%

Rating ProfileSovereign 71.59%Reverse Repos/ CBLOs 27.21%Net Current Assets 1.20%

HSBC Gilt Fund (HGF) January 2014

41


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


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

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Money Market InstrumentsCertificate of DepositIDBI Bank 1,139.10 10.50% CRISIL A1+Indian Overseas Bank 794.00 7.32% [ICRA]A1+Central Bank of India 694.89 6.40% CARE A1+State Bank of Hyderabad 495.43 4.57% [ICRA]A1+UCO Bank 495.26 4.56% CRISIL A1+Indian Bank 446.83 4.12% Fitch A1+Andhra Bank 399.71 3.68% CARE A1+Union Bank of India 397.17 3.66% CRISIL A1+Bank of Maharashtra 397.09 3.66% CRISIL A1+Punjab & Sind Bank 197.80 1.82% [ICRA]A1+Commercial PaperRedington (India) 790.14 7.28% [ICRA]A1+Sundaram Finance 494.02 4.55% [ICRA]A1+Bajaj Finance 493.91 4.55% CRISIL A1+Magma Fincorp 493.55 4.55% CARE A1+IL & FS 375.85 3.46% Fitch A1+Corporate/ PSU DebtCorporate Bonds / DebenturesHDFC 498.00 4.59% CRISIL AAAHDFC 496.07 4.57% CRISIL AAAZero Coupon BondsSundaram Finance 447.09 4.12% [ICRA]AA+Fixed DepositFixed Deposit8.85% JAMMU & KASHMIR BK FD RED 14-03-14 700.00 6.45% Fixed Deposit

Total 94.41%Cash EquivalentsCBLOs 799.59 7.37%Net Current Assets -193.27 -1.78%Total Net Assets as on 31 January 2014 10,852.25 100.00%

HSBC Ultra Short Term Bond Fund (HUSBF) January 2014

42

Date of Allotment 17-Oct-06Benchmark Customised

Benchmark Index**NAV (Growth) per unit(as on 31.01.14)

` 11.1779


3.84 months


3.39 months


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

Sub OptionsGrowth, Daily Dividend, Reinvestment Weekly Dividend, Reinvestment, Monthly Dividend (Payout & Reinvestment)Exit Load@ NilTotal Expense Ratio as on January 31, 2014 Regular # 1.28% Institutional 0.98%Institutional Plus # 0.23%Direct Plan 0.33%Excludes service tax on Investment Management fees of 0.03% of Total Net Assets.

Annualised Expense Ratio from 1st April 2013 onwards Regular # 1.30% Institutional 0.80%Institutional Plus # 0.25%Direct Plan 0.28%Excludes service tax on Investment Management fees of 0.02% of Total Net Assets.

@ Effective from March 1, 2013 for prospective investments.** Composite index of CRISIL Liquid Fund Index(90%) and CRISIL Short Term Bond Fund Index(10%).* Based on invested Amount# Plan(s) discontinued from accepting subscriptions w.e.f. October 01, 2012

Asset AllocationMoney Market Instruments 74.68%Corporate/ PSU Debt 13.28%Cash Equivalents 7.37%Fixed Deposit 6.45%Net Current Assets -1.78%

Rating ProfileAAA and equivalents 83.84%Reverse Repos/ CBLOs 7.37%Fixed Deposit 6.45%AA+/ AA-/ AA and equivalents 4.12%

Net Current Assets -1.78%





HSBC Ultra Short Term Bond Fund - Institutional Option - Monthly Dividend29-Nov-13 0.06108 0.05850 10.205227-Dec-13 0.05300 0.05076 10.194831-Jan-14 0.05864 0.05616 10.2020HSBC Ultra Short Term Bond Fund - Institutional Plus Option - Monthly Dividend28-Jan-11 0.04829 0.04501 10.382125-Feb-11 0.04125 0.03845 10.374125-Mar-11 0.05214 0.04859 10.3865

HSBC Ultra Short Term Bond Fund (HUSBF) January 2014

43


HSBC Ultra Short Term Bond Fund

01 Jan 2014 to 15 Jan 2014***

16 Jan 2014 to 31 Jan 2014***

Average for the Month

Normal (erstwhile institutional plan)

0.25 0.25 0.25

Direct 0.35 0.35 0.35

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

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

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

IssuerMarketValue

(` in Lacs)

% toNet

AssetsRating

Corporate/PSU DebtCorporate Bonds / DebenturesIndian Railway Finance Corporation 7,234.43 9.63% CRISIL AAA

Rural Electrification Corporation 3,860.21 5.14% CARE AAA

Power Finance Corporation 3,813.82 5.07% CRISIL AAA

State Bank of India 3,723.96 4.95% CRISIL AAA

Rural Electrification Corporation 3,506.62 4.67% CRISIL AAA

Shriram Transport Finance Company 2,484.41 3.31% CRISIL AA

HDFC 2,151.03 2.86% CRISIL AAA

Shriram Transport Finance Company 1,992.16 2.65% CRISIL AA

Shriram Transport Finance Company 996.30 1.33% CRISIL AA

HDFC 586.60 0.78% CRISIL AAA

Power Finance Corporation 281.77 0.37% CRISIL AAA

Power Finance Corporation 276.48 0.37% CRISIL AAA

Government Securities8.83% GOVT OF INDIA RED 25-11-2023 11,151.14 14.84% Sovereign

8.12% GOVT OF INDIA RED 10-12-2020 10,330.92 13.75% Sovereign




9.39% GUJARAT SDL RED 20-11-2023 1,031.25 1.37% Sovereign

8.28% GOVT OF INDIA RED 21-09-2027 623.76 0.83% Sovereign

Zero Coupon BondsHDFC 299.78 0.40% CRISIL AAA

Total 92.40%Cash EquivalentsCBLOs 3,395.08 4.52%Net Current Assets 2,327.02 3.08%Total Net Assets as on 31 January 2014 75,160.33 100.00%

HSBC Flexi Debt Fund (HFDF) January 2014

44

Date of Allotment 05-Oct-07Benchmark CRISIL Composite


` 16.6464


84.98 months


52.74 months


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

Total Expense Ratio as on January 31, 2014 Regular # 1.85%Institutional 1.60% Direct Plan 0.85%Excludes service tax on Investment Management fees of 0.00% of Total Net Assets.Annualised Expense Ratio from 1st April 2013 onwards Regular # 1.85%Institutional 1.60% Direct Plan 0.82%Excludes service tax on Investment Management fees of 0.06% of Total Net Assets.@ Effective from March 1, 2013 for prospective investments.* Based on invested Amount# Plan(s) discontinued from accepting subscriptions w.e.f. October 01, 2012





HSBC Flexi Debt Fund - Regular Option - Monthly Dividend26-Apr-13 0.05836 0.04973 10.494931-May-13 0.11214 0.10740 10.671828-Jun-13 0.03263 0.03125 10.4175HSBC Flexi Debt Fund - Institutional Option - Monthly Dividend26-Apr-13 0.07409 0.06313 10.750531-May-13 0.11686 0.11191 10.917828-Jun-13 0.03489 0.03342 10.6570HSBC Flexi Debt Fund - Monthly Dividend - Direct Plan31-May-13 0.12506 0.11977 10.9844HSBC Flexi Debt Fund - Regular Option - Quarterly Dividend14-Jun-13 0.19482 0.18658 12.285813-Sep-13 0.19482 0.18658 11.671013-Dec-13 0.15585 0.14926 11.4631HSBC Flexi Debt Fund - Institutional Option - Quarterly Dividend14-Jun-13 0.19482 0.18658 12.195013-Sep-13 0.19482 0.18658 11.590213-Dec-13 0.15585 0.14926 11.3891HSBC Flexi Debt Fund - Quarterly Dividend - Direct Plan13-Dec-13 0.15585 0.14926 11.4883HSBC Flexi Debt Fund - Regular Option - Half Yearly Dividend16-Mar-12 0.35236 0.30201 11.267214-Sep-12 0.35236 0.30201 11.431515-Mar-13 0.35236 0.30201 11.6629HSBC Flexi Debt Fund - Institutional Option - Half-yearly Dividend15-Mar-13 0.35236 0.30201 10.9757HSBC Flexi Debt Fund - Half-yearly Dividend - Direct Plan13-Sep-13 0.31171 0.29853 10.7220

Asset AllocationGovernment Securities 50.87%Corporate / PSU Debt 41.53%Cash Equivalents 4.52%Net Current Assets 3.08%

Rating ProfileSovereign 50.87%AAA and equivalents 34.24%AA+/ AA-/ AA and equivalents 7.29%Reverse Repos/ CBLOs 4.52%Net Current Assets 3.08%

HSBC Flexi Debt Fund (HFDF) January 2014

45


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

Name of Scheme Fund Manager

HSBC MIP - Savings & Regular Plan

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

HSBC Income Fund - Investment Plan

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

HSBC Income Fund - Short Term Plan

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

HSBC Floating Rate Fund Long Term Plan

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

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

HSBC Gilt Fund Sanjay Shah (from 09 January 2009)

HSBC Ultra Short Term Bond Fund

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

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

Fund Managers - MIP & Debt January 2014

46

Fund Manager’s ExperienceSanjay Shah Senior Vice President Head - Fixed IncomeB. Com, A.C.A., Post Graduate Diploma in ManagementExperience:Over 14 years of experience in research and risk l HSBC Asset Management (India) Private Ltd Senior Vice President & Fund Manager, Fixed Income since October 2011 to present, Vice President & Fund Manager, Fixed Income since December 2008 to September 2011. l FIL Fund Management Private Ltd Credit Analyst from September 2008 to December 2008 l Lehman Brothers Structured Financial Services Private Ltd Vice President, Convertible Products from September 2006 to Sep tember 2008 l Rabo India Finance Private Ltd Senior Manager – Credit Risk from July 2004 to September 2006 l ICICI Bank Ltd Manager, Credit Risk from January 2003 to June 2004 l SBI Funds Management Private Ltd Chief Manager, Debt Funds from June 1999 to January 2003

Ruchir ParekhSenior Vice President and Fund Manager - Fixed IncomeMBA, B.ComExperience:Over 16 years of experience in research and fixed income management l HSBC Asset Management (India) Private Ltd Senior Vice President & Fund Manager, Fixed Income since September 2011 to present, Vice President & Fund Manager, Fixed Income since January 2011 to September 2011. l AIG Global Asset Management (India) Private Ltd Fund Manager, Fixed Income from April 2007 - January 2011 l HDFC Asset Management Company Ltd Sr. Manager, Fixed Income Analyst from February 2003 - April 2007 l Bear Stearns & Co., New York, NY Fixed Income Analyst from October 2000 - March 2002 l Moodys Investors Service, New York, NY Senior Associate from June 1997 - October 2000

Comparative Performance of Debt Schemes January 2014

47

Data for the period January to December has been considered in all cases, except for ‘Since Inception’ returns. ‘Since Inception’ (%) returns are compounded annualised, other % returns are simple annualised. ‘Since inception’ returns are calculated on 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 specific time period, invested at the start of the period. The returns provided above have been rounded off and hence there may be minor differences between point-to-point returns vis-a-vis returns indicated above.

HSBC MIP - Regular Plan Date of Inception : 24 Feb 04Scheme Name & Benchmarks Jan 13 -


Jan 11 - Dec 11

Since Inception

HSBC MIP - Regular Plan - Growth 3.83% 13.16% 1.27% 7.48%Crisil MIP Blended Index (Scheme Benchmark) 4.13% 12.08% 1.73% 6.97%Crisil 1 Year T-Bill Index (Standard Benchmark) 5.83% 8.03% 6.44% 5.37%Crisil 10 Year Gilt Index (Standard Benchmark) -1.06% 9.41% 1.90% 4.08%`10,000, if invested in HMIP - R, would have become `10,383 `11,316 `10,127 `20,366

`10,000, if invested in Crisil MIP Blended Index, would have become `10,413 `11,208 `10,173 `19,433

`10,000, if invested in Crisil 1 Year T-Bill Index, would have become `10,583 `10,803 `10,644 `16,749

`10,000, if invested in Crisil 10 Year Gilt Index, would have become `9,894 `10,941 `10,190 `14,834

HSBC MIP - Savings Plan Date of Inception : 24 Feb 04Scheme Name & Benchmarks Jan 13 -


Jan 11 - Dec 11

Since Inception

HSBC MIP - Savings Plan - Growth 3.76% 17.70% -1.99% 9.02%Crisil MIP Blended Index (Scheme Benchmark) 4.13% 12.08% 1.73% 6.97%Crisil 1 Year T-Bill Index (Standard Benchmark) 5.83% 8.03% 6.44% 5.37%Crisil 10 Year Gilt Index (Standard Benchmark) -1.06% 9.41% 1.90% 4.08%`10,000, if invested in HMIP - S, would have become `10,376 `11,770 `9,801 `23,433

`10,000, if invested in Crisil MIP Blended Index, would have become `10,413 `11,208 `10,173 `19,433



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



HSBC Gilt Fund Date of Inception : 05 Dec 03Scheme Name & Benchmarks Jan 13 -


Jan 11 - Dec 11

Since Inception

HSBC Gilt Fund - Growth 2.98% 10.06% 8.93% 4.27%I-Sec Composite Index (Scheme Benchmark) 3.75% 11.06% 6.54% 6.40%Crisil 10 Year Gilt Index (Standard Benchmark) -1.06% 9.41% 1.90% 4.07%`10,000, if invested in HGF, would have become `10,298 `11,006 `10,893 `15,244

`10,000, if invested in I-Sec Composite Bond Fund Index, would have become `10,375 `11,106 `10,654 `18,691


Fund Managed by - Sanjay Shah.



48


47

HSBC FRF - LTP - Regular Plan Date of Inception : 16 Nov 04Scheme Name & Benchmarks Jan 13 -


Jan 11 - Dec 11

Since Inception

HSBC FRF - LTP - Growth 9.03% 9.64% 9.06% 7.64%Crisil Liquid Fund Index (Scheme Benchmark) 9.04% 8.50% 8.17% 6.88%Crisil 1 Year T-Bill Index (Standard Benchmark) 5.83% 8.03% 6.44% 5.59%

`10,000, if invested HFRF - LTP, would have become `10,903 `10,964 `10,906 `19,587

`10,000, if invested in Crisil Liquid Fund Index, would have become `10,904 `10,850 `10,817 `18,360


Funds Managed by - Sanjay Shah & Ruchir Parekh.


HSBC Ultra Short Term Bond Fund$ Date of Inception : 17 Oct 06Scheme Name & Benchmarks Jan 13 - Dec 13 Since InceptionHSBC Ultra Short Term Bond Fund - Growth 8.83% 8.76%Customised Benchmark Index (Scheme Benchmark)* 8.96% 8.74%

Crisil 1 Year T-Bill Index (Standard Benchmark) 5.83% 6.21%

`10,000, if invested in HUSTBF, would have become `10,883 `11,109

`10,000, if invested in Customised Benchmark Index, would have become `10,896 `11,106

`10,000, if invested in Crisil 1 Year T-Bill Index, would have become `10,583 `10,783


HSBC Flexi Debt Fund Date of Inception: 05 Oct 07Scheme Name & Benchmarks Jan 13 -


Jan 11 - Dec 11

Since Inception

HSBC Flexi Debt Fund - Growth 4.28% 10.07% 9.61% 8.40%Crisil Composite Bond Fund Index (Scheme Benchmark) 3.59% 9.34% 6.92% 6.37%

Crisil 10 Year Gilt Index (Standard Benchmark) -1.06% 9.41% 1.90% 5.33%`10,000, if invested in HFDF, would have become `10,428 `11,007 `10,961 `16,551

`10,000, if invested in Crisil Composite Bond Fund Index, would have become `10,359 `10,934 `10,692 `14,707



*Composite index of Crisil Liquid Fund Index(90%) and Crisil Short Term Bond Fund Index(10%).

$Pursuant to SEBI circular dated Sept 13, 2012, certain Plans/options within the schemes have been discontinued to comply with a single plan structure. Since there was no continuous NAV history available for the surviving Plan prior to 1 October 2012, returns since the said date have been considered for calculating performance. The inception date of HSBC Ultra Short Term Bond Fund however is 17 October 2006.


49


HSBC Income Fund - Investment Plan Date of Inception : 10 Dec 02Scheme Name & Benchmarks Jan 13 -


Jan 11 - Dec 11

Since Inception

HSBC Income Fund - Investment Plan - Growth 2.68% 9.73% 8.88% 6.65%Crisil Composite Bond Fund Index (Scheme Benchmark) 3.59% 9.34% 6.92% 5.61%

Crisil 10 Year Gilt Index (Standard Benchmark) -1.06% 9.41% 1.90% 4.93%`10,000, if invested in HIF - IP, would have become `10,268 `10,973 `10,888 `20,393

`10,000, if invested in Crisil Composite Bond Fund Index, would have become `10,359 `10,934 `10,692 `18,297


HSBC Income Fund - S T P Date of Inception : 10 Dec 02Scheme Name & Benchmarks Jan 13 -


Jan 11 - Dec 11

Since Inception

HSBC Income Fund - S T P - Growth 7.00% 9.13% 8.88% 6.74%Crisil Short Term Bond Fund Index (Scheme Benchmark) 8.25% 9.10% 7.87% 6.55%

Crisil 1 Year T-Bill Index (Standard Benchmark) 5.83% 8.03% 6.44% 5.37%

`10,000, if invested in HIF -ST, would have become `10,700 `10,913 `10,888 `20,584

`10,000, if invested in Crisil Short Term Bond Fund Index, would have become `10,825 `10,910 `10,787 `20,183


Funds Managed by - Ruchir Parekh & Sanjay Shah.



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

Last 7 Days as on 31 Dec

2013

Last 15 Days as on 31 Dec 2013

Last 30 Days as on 31

Dec 2013

Jan 13 - Dec 13

Jan 12 - Dec 12

Since Inception

HSBC Cash Fund - Growth 8.96% 8.99% 8.93% 9.30% 8.98% 8.95%

Crisil Liquid Fund Index (Scheme Benchmark)

6.40% 8.06% 8.98% 9.04% 8.50% 8.65%

Crisil 91 Day T-Bill Index (Standard Benchmark)

10.01% 9.22% 8.97% 8.27% 8.59% 8.12%

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

`10,017 `10,037 `10,073 `10,930 `10,898 `12,523

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

`10,012 `10,033 `10,074 `10,904 `10,850 `12,432

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

`10,019 `10,038 `10,074 `10,827 `10,859 `12,274


@Pursuant to SEBI circular dated Sept 13, 2012, certain Plans/options within the schemes have been discontinued to comply with a single plan structure. Since there was no continuous NAV history available for the surviving Plan prior to 19 May 2011, returns since the said date have been considered for calculating performance. The inception date of HSBC Cash Fund however is 4 December 2002.

Statutory Details & Disclaimers

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

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, with-out the prior written permission of HSBC Asset Management (India) Private Ltd.

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

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

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