October 2013 - HSBC · Market indices BSE Sensex and Nifty surged during the month of October 2013, gaining 9.2% and 9.8% respectively. Amongst the BSE sectoral indices, Bankex &

October 2013

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 October 2013

2

Equity & MIP

Market UpdateEquity market experienced renewed optimism as the market indices BSE Sensex and Nifty inched closer to their historical highs. The Foreign Institutional Investor (FII) flows continued to be strong for the month and this trend helped to sustain the optimism. The second quarter FY 2013 - 14 corporate results have been a mixed bag till now, while some sectors like IT & Financials reported better than expected numbers. Inflation concerns were a top priority in the Reserve Bank of India’s (RBI) scheme of things as they raised the repo rate by 25 bps, the second consecutive rate hike though on expected lines. On the other hand, the RBI continued to unwind the measures adopted earlier to support INR, as the currency seemed to have found a stable level in the INR61-62/ USD range. The arrival of weaker data points from the US may provide credence to the delay expected in the US Federal Reserve’s Quantitative Easing(QE) tapering plans. India was a key beneficiary of fund flows during October 2013 as the global investors were buoyed by the fact that Fed Reserve’s liquidity tap may not see an abrupt end in the near term.

Market indices BSE Sensex and Nifty surged during the month of October 2013, gaining 9.2% and 9.8% respectively. Amongst the BSE sectoral indices, Bankex & Capgoods were the notable outperformers delivering monthly gains of 19.4% and 18.8% respectively, while the defensive sectors like FMCG & Healthcare underperformed the market.Strong FII flows were one of the reasons for the renewed optimism seen in the equity market during October 2013. FIIs continued to be net buyers for the month with net inflows of USD 2.9 bn (cash segment) and the YTD FII net inflow tally now stands at USD 16.3 bn. The Domestic Institutional Investors (DIIs) remained firmly on the other side of the trade net selling equities worth USD 2 bn during the month. On a YTD basis, DIIs have so far net sold equities worth USD 10.3 bn.The trade deficit data for September 2013 came in better at ~ USD 6.76 bn versus ~ USD 10.91 bn reported in August 2013. India’s imports for the month of September 2013 fell 18% Year on Year (YoY) due to sharp decline in the Gold & Silver imports as well as 5.9% YoY decline in the Oil imports. Exports on the other hand rose 11% YoY to USD 27.68 bn. The trends of a reduction in trade deficit is a key positive as under the present run rate, the Current Account Deficit (CAD) may well be managed more efficiently and also likely to be significantly lower than the estimates at the start of the fiscal. The INR, which had provided pain points to the economy during August -September 2013, seemed to stabilize around the USD 61/62 mark and that supported the RBI to reverse some of the tightening measures announced earlier aimed at arresting the currency depreciation.

Equities saw renewed optimism

Source: Bloomberg ; Central Statistical Organization (CSO) India

Source: Bombay Stock Exchange (BSE)

FII flows continued to be strong

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

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Sensex BSE100 BSE200 BSE500 BSEMidCap

BSESmallCap

Indices Performance - October 2013

Inflation & Industrial Growth

No respite on the Inflation front

The headline inflation as reported under the Wholesale Price Index (WPI) continued to remain elevated as it increased further at 6.5% for September 2013 (vs. 6.1% YoY for August). Food inflation remained the main contributor to the price rise at 18%, due to runaway vegetable prices. The core inflation however remained within a comfortable range at 2%. The Consumer Price Index (CPI) inflation also bore the brunt of the higher vegetable prices as it inched up to record 9.8% for Sep (YoY vs. 9.5% in August).

IIP growth disappoints

India’s factory output data measured using the Index of Industrial production (IIP) reported a sluggish growth of 0.6% for August 2013 (YoY vs. 2.8% in July). The expectations of a decent rise in growth were high given the rebound seen in July 2013, however de-growth in the manufacturing segment impacted the overall reading negatively. The mining segment reduced further and didn’t show signs of growth returning anytime soon there.

Global Economic Scenario

Weak USD data hint at a delayed Fed tapering plan

The Federal government shutdown in the US was resolved closer to the deadline date but that couldn’t avoid 16 days of uncertainty. The resolution included key provisions such as funding window for the government till mid-January 2014, while the debt ceiling limit was extended till first week of February 2014. It also provided flexibility to the US treasury to utilize extraordinary financing measures and that would be handy during the treasury outflow season in 1Q Calendar Year (CY) 2014. On the other hand sluggish October 2013 data releases in the US supported the opinion of a likely delay in the QE tapering plans by the Federal Reserve. The US industrial growth data was subdued, while the pay-rolls data also appeared weak and this somewhat supported the arguments in favour of a delayed tapering decision by the Federal Reserve. Overall, a tapering delay assumes positive significance for emerging markets such as India as the global liquidity is expected to remain strong in the near term.

Going ForwardOctober 2013 saw the market indices of BSE Sensex & Nifty trading near their all-time highs, while the broader market is yet to reach the levels seen more than 5 years ago. The market indices may be trading at higher levels scaled during 2008 on an absolute basis, but on a time and earnings adjusted basis we may be some time away from the real peak. Market participants were buoyed by the likely Fed tapering delay and the FII flows continued to support these sentiments. These aspects coupled with relative improvement in domestic factors such as better than expected delivery on the CAD front added to the overall optimism. Also, on the other hand the inflation over growth commentary of the RBI and the recent repo hikes failed to dent the optimism of the investors. Equity market may remain range bound in the near term provided there are no adverse news flows globally and domestic factors remain as anticipated. Five Indian states are going into assembly polls between November and December 2013. The poll outcome in these states may be perceived as a strong indication of the voter preferences ahead of the Lok Sabha election in May 2014. So the assembly polls may be looked at as electoral mood monitor ahead of the general elections in 2014, the eventual outcome of which may determine the direction of the market for some time. As stated earlier, despite the market indices at all time high levels, there is still a gap in valuations across stocks and sectors. An efficient bottom up stock picking strategy may help to identify those profitable companies trading at reasonable valuations. HSBC’s investment process seeks to identify those companies that fall in this valuation mis-match territory. We urge investors to remain invested in equities and employ the systematic investment plan (SIP) route to invest in a disciplined and regular manner. We remain firm believers in India’s growth story with a long term perspective and should not be overly perturbed by the near term volatility.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)


4

Review: HSBC Progressive Themes FundCurrently focusing on the following themes; 1.Economic Reforms (38.7%) which includes Financial sector reform- 31.7% and Oil & Gas Sector deregulation sub theme- 6.9%2.Infrastructure (33.9%) which includes Power- 14.4%, Construction– 11% and Logistics- 8.5%. 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 14.94% in HMIP Regular and 25.09%, in HMIP Savings. Currently it is more biased towards large caps than mid or small caps.

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

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

Debt

Market Assessment

Domestic bond markets were largely range bound during the month and were minimally impacted by repo hike announcement in recently concluded Monetary policy review Onset of a month which will see large supply of Government securities (G-Secs) and higher than expected core sector numbers (comprising eight infrastructure industries) led to a weak closing. After being trading in a tight range at 8.55% – 8.60% levels, benchmark ten year G-Sec yields opened the week at 8.70% in the new month.

RBI’s Monetary Policy, Economic Events and Data

Policy in line with market expectation

Second Quarter Review of Monetary Policy • Repo rate (rate at which the RBI lends to banks), increased by 25 bps to 7.75% • Marginal Standing Facility rate (MSF) – rate at which banks can borrow from RBI over and above the repo rate - reduced by 25 bps to 8.75%.

In line with market expectations, the RBI hiked the repo rates by 25 bps. In order to curb volatility in domestic currency (INR), the RBI had announced series of measures over the past few months. Recent stability in the INR seem to have contributed to the roll-back of these measures. These include reduction in marginal standing facility (MSF) rate by 25 basis points from 9.00% to 8.75% with immediate effect.

Domestic Markets: Industrial activity has weakened, with a reduction in consumer durables and –slow growth in capital goods reflecting the ongoing decline in both consumption and investment demand. Strengthening export growth and signs of revival in some services, along with the expected pick-up in agriculture, could support an increase in growth in the second half of financial year (FY) 2013-14 relative to the first half, raising real GDP growth from 4.4% in the first quarter to a central estimate of 5.0% for the year as a whole.

IIP continues to remain volatile

Inflation inches up further

Index of Industrial Production (IIP) surprised sharply on the downside, registering 0.6% growth in August 2013 after registering a growth of 2.8% in July 2013. Even excluding the volatile capital goods, IIP grew only 1.0% in August 2013.

Headline wholesale inflation came in at 6.46% Year on Year (YoY) in September 2013, versus previous month’s 6.10% YoY. Primary inflation increased on account of elevated food inflation at 18.4%. While supply disruptions have led to the sharp rise, impact of good monsoon is yet to be seen. Fuel inflation declined to 10.1% as against prior reading of 11.3% amidst a favorable base effect. Manufactured products inflation increased to 2.0%. Consumer Price Index (CPI) was higher than expectations at 9.84%. Higher index was contributed by higher service costs apart from increase in food pricesThe RBI expects Wholesale Price Index (WPI) inflation and CPI inflation to remain range-bound around current levels (of ~6.5% and 9.8% respectively), above its comfort zone, over the next six months.

Market Activity

Repo hike was largely priced in

G-Sec market remained range bound during the month as bond related data presented mixed signals. Higher inflation resulted in a rapid selling of securities as the market started expecting another rate hike in 2nd quarter monetary policy review. However the levels were contained on the back of limited supply during the month. Rate hike announcement in the policy didn’t impact the market as cut in MSF rate and increase in term repo limit resulted in overall reduction in borrowing cost.

Limited supply in corporate bonds

Corporate bond yields also remained largely range bound as limited supply took off the pressure created by rate hike. Further, higher inflow through Foreign Currency Non Resident (FCNR) deposits and overseas borrowing kept the short term yields supported.

Liquidity eases further

Money market rates continued to drift lower expecting further relaxation in liquidity measures. The RBI reduced MSF rate by 50 bps to 9% on 8 October 2013 and induced liquidity into the market by introducing 7 day & 14 day term repo to the tune of 0.25% of Net Demand and Time Liabilities (NDTL). Money market rates continued to remain buoyant on back of further liquidity measures announced in the policy.

Global Economic Scenario

Global economy

The US congress was finally able to extend the debt-ceiling deadline to 7 February 2014. This removes the threat of default and reopens the US government, after a 16 day partial shutdown. The agreement provides spending authority through January 15, 2014 at the spending level that was in effect prior to the shutdown.Economic data releases post re-opening of the government continued to remain below consensus and cumulative weakness over the past couple of months has resulted in market expectation of further delay in liquidity tapering process. Foreign Open Market Committee (FOMC) statement released during the month was largely a replica of the statement released in the month of September 2013. Overall assessment of the economy was largely unchanged and future of tapering continues to remain dependent upon improvement in labor market conditions and inflation.

Going ForwardRecent stability in the foreign exchange markets has been derived from the postponement of tapering in debt ceiling, calm in the Middle East region coupled with the policy responses on the external front; ensuing favorable implications on the current account deficit (CAD). As early signs of stability surfaced in the foreign exchange markets, the RBI has gradually restored the exceptional measures introduced earlier this month.

As overnight rates are lowered, short term yields might get positively impacted. Short end of the curve may also gain to benefit from the increased inflows received vide the swap facility introduced by the RBI. As the outlook for the inflation continues to remain elevated, further measures to anchor inflation expectations cannot be ruled out. This might thwart a significant downside move in the longer term yields especially considering the heavy supply of G-Secs scheduled in the month of November 2013.

Easing liquidity conditions may provide further support to the short term yields whilst protecting the upside risk to long term yields. As we embark on a busy election season following the festive season, measures to ease liquidity conditions might provide much needed comfort.

As upside risks to inflation persist in the near term and considering the RBI’s re-iteration to safeguard the economy by anchoring inflation expectations, we endeavor to remain neutral on duration whilst favoring the short – medium term segment.

Source: Bloomberg, for all data except where mentioned otherwise


5

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

Issuer Market Value(` in Lacs)

% to NetAssets

Auto Tata Motors 1,524.60 3.23%Bajaj Auto 596.37 1.26%Auto AncillariesMotherson Sumi Systems 809.55 1.71%Banks ICICI Bank 3,643.09 7.71%Axis Bank 2,445.40 5.17%HDFC Bank 2,212.60 4.68%Yes Bank 1,198.60 2.54%ING Vysya Bank 871.86 1.84%CementShree Cement 1,264.07 2.67%Construction ProjectLarsen & Toubro 730.28 1.55%Consumer Non DurablesI T C 3,350.00 7.09%Colgate Palmolive (India) 495.62 1.05%Ferrous MetalsTata Steel 1,004.70 2.13%Fertilisers Coromandel International 917.94 1.94%Finance HDFC 2,265.88 4.79%Media & EntertainmentSun TV Network 1,134.41 2.40%Minerals/Mining Sesa Sterlite 1,313.00 2.78%NMDC 555.20 1.17%Oil Oil & Natural Gas Corporation 2,349.60 4.97%Petroleum Products Reliance Industries 2,881.31 6.10%Pharmaceuticals Dr Reddy’s Laboratories 1,842.30 3.90%Sun Pharmaceutical Industries 913.20 1.93%Lupin 710.32 1.50%Software Infosys 3,309.90 7.00%HCL Technologies 2,738.38 5.79%Tata Consultancy Services 2,112.05 4.47%Tech Mahindra 1,163.29 2.46%Telecom - Services Bharti Airtel 1,505.11 3.18%Total 97.01%

HSBC Equity Fund (HEF) October 2013

6


% to NetAssets

Other Equity Investments 415.68 0.88%CBLOs 1,386.75 2.93%Net Current Assets -403.70 -0.82%Total Net Assets as on 31 October 2013 47,257.34 100.00%

Asset AllocationAuto 4.49%Auto Ancillaries 1.71%Banks 21.94%Cement 2.67%Construction Project 1.55%Consumer Non Durables 8.14%Ferrous Metals 2.13%Fertilisers 1.94%Finance 4.79%Media & Entertainment 2.40%Minerals/Mining 3.95%Oil 4.97%Petroleum Products 6.10%Pharmaceuticals 7.33%Software 19.72%Telecom - Services 3.18%Other Equity Investments 0.88%Reverse Repos/CBLOs 2.93%Net Current Assets -0.82%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 31.10.13)

` 108.8336

Fund Managers Tushar Pradhan & Neelotpal Sahai

SIP AvailableMinimumApplicationAmount

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

Exit Load@ NilStatistical Ratios

Standard Deviation 0.92%R-Squared 0.9614Beta (Slope) 0.9212Sharpe Ratio** -0.0232Total Expense Ratio as on October 31, 2013

Regular 2.46% Direct Plan 1.76% Excludes service tax on Investment Management fees of 0.17% of Total Net Assets. Annualised Expense Ratio from 1st April 2013 onwards

Regular 2.47% Direct Plan 1.76% Excludes service tax on Investment Management fees of 0.18% of Total Net Assets. Portfolio Turnover 0.59

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: 8.70% as on October 31, 2013.

HSBC Equity Fund (HEF) October 2013

7

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

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

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


% to NetAssets

Auto Tata Motors 762.30 4.37%Eicher Motors 593.68 3.40%Auto AncillariesBalkrishna Industries 414.98 2.38%Banks ICICI Bank 1,289.09 7.38%Axis Bank 794.76 4.55%HDFC Bank 748.88 4.29%Yes Bank 553.20 3.17%Cement The Ramco Cements 357.30 2.05%Construction ProjectsLarsen & Toubro 535.54 3.07%Consumer Non Durables I T C 1,105.50 6.33%Britannia Industries 375.82 2.15%Ferrous MetalsTata Steel 502.35 2.88%Finance HDFC 769.55 4.41%Industrial ProductsSupreme Industries 546.07 3.13%Minerals/MiningSesa Sterlite 454.50 2.60%Oil Oil & Natural Gas Corporation 660.83 3.79%Petroleum Products Reliance Industries 823.23 4.72%Pharmaceuticals Glenmark Pharmaceuticals 563.60 3.23%Dr Reddy’s Laboratories 368.46 2.11%Divi's Laboratories 291.75 1.67%Software Infosys 1,158.47 6.64%HCL Technologies 711.98 4.08%Tech Mahindra 465.32 2.67%Tata Consultancy Services 422.41 2.42%Eclerx Services 350.79 2.01%Mindtree 346.06 1.98%Telecom - ServicesBharti Airtel 477.23 2.73%Textile ProductArvind 530.75 3.04%Textile CottonVardhman Textiles 354.95 2.03%Total 99.28%

HSBC India Opportunities Fund (HIOF) October 2013

8


% to NetAssets

CBLOs 312.43 1.79%Net Current Assets -184.35 -1.07%Total Net Assets as on 31 October 2013 17,457.40 100.00%

Asset AllocationAuto 7.77%Auto Ancillaries 2.38%Banks 19.39%Cement 2.05%Construction Project 3.07%Consumer Non Durables 8.48%Ferrous Metals 2.88%Finance 4.41%Industrial Products 3.13%Minerals/Mining 2.60%Oil 3.79%Petroleum Products 4.72%Pharmaceuticals 7.01%Software 19.80%Telecom - Services 2.73%Textile Products 3.04%Textile Cotton 2.03%Reverse Repos/CBLOs 1.79%Net Current Assets -1.07%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 31.10.13)

` 38.9137

Fund Manager Tushar Pradhan & Neelotpal Sahai

SIP 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: 8.70% as on October 31, 2013.

HSBC India Opportunities Fund (HIOF) October 2013

9


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

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


% to NetAssets

Auto Ancillaries Apollo Tyres 318.71 4.46%Balkrishna Industries 152.95 2.14%Banks The Jammu & Kashmir Bank 260.79 3.65%Dena Bank 259.59 3.64%Allahabad Bank 229.38 3.21%Development Credit Bank 194.37 2.72%State Bank of Bikaner and Jaipur 143.22 2.01%State Bank of Travancore 119.22 1.67%CementEverest Industries 170.15 2.38%ConstructionBF Utilities 92.00 1.29%Consumer Durables Bata India 319.90 4.48%Consumer Non DurablesGodfrey Phillips India 142.48 2.00%Venky’s (India) 138.45 1.94%FinanceCholamandalam Investment & Fin. Co. 198.24 2.78%Industrial Capital GoodsBEML 118.97 1.67%Swelect Energy System 99.35 1.39%Industrial Products Diamond Power Infrastructure 134.26 1.88%Minerals/Mining Gujarat Mineral Development Corporation 211.76 2.97%PesticidesPI Industries 549.87 7.70%UPL 429.35 6.01%Bayer Cropscience 143.94 2.02%PharmaceuticalsAlembic Pharmaceuticals 309.07 4.33%Aurobindo Pharma 229.70 3.22%Biocon 105.55 1.48%PowerJSW Energy 136.86 1.92%Software Tech Mahindra 325.72 4.56%Persistent Systems 217.10 3.04%Polaris Financial Technology 170.70 2.39%Nucleus Software Exports 146.89 2.06%Textile - CottonVardhman Textiles 284.65 3.99%Textile ProductsArvind 132.69 1.86%Siyaram Silk Mills 86.34 1.21%Textile SyntheticBombay Dyeing & Manufacturing Co. 83.60 1.17%Transportation Adani Ports and Special Economic Zone 145.50 2.04%Gateway Distriparks 112.65 1.58%Total 96.86%

HSBC Midcap Equity Fund (HMEF) October 2013

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% to NetAssets

Other Equity Investments 140.52 1.97%CBLOs 56.40 0.79%Net Current Assets 27.22 0.38%Total Net Assets as on 31 October 2013 7,138.08 100.00%

Asset AllocationAuto Ancillaries 6.60%Banks 16.90%Cement 2.38%Construction 1.29%Consumer Durables 4.48%Consumer Non Durables 3.94%Finance 2.78%Industrial Capital Goods 3.06%Industrial Products 1.88%Minerals/Mining 2.97%Pesticides 15.73%Pharmaceuticals 9.03%Power 1.92%Software 12.05%Textile Products 3.07%Textiles - Cotton 3.99%Textiles - Synthetic 1.17%Transportation 3.62%Other Equity Investments 1.97%Reverse Repos/Cblos 0.79%Net Current Assets 0.38%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 31.10.13)

` 16.6844

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: 8.70% as on October 31, 2013.

HSBC Midcap Equity Fund (HMEF) October 2013

11


Our exposure to midcap stocks in HSBC Midcap Equity Fund (HMEF) is 91.3500%

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 311.70 3.17%Auto Ancillaries Apollo Tyres 440.61 4.48%Banks The Jammu & Kashmir Bank 644.41 6.56%ICICI Bank 560.48 5.70%Dena Bank 390.05 3.97%The Karnataka Bank 339.36 3.45%Allahabad Bank 223.18 2.27%Indian Bank 221.63 2.25%Union Bank of India 160.62 1.63%United Bank of India 113.40 1.15%CementEverest Industries 252.70 2.57%HIL 118.51 1.21%JK Cement 117.94 1.20%ConstructionIRB Infrastructure Developers 199.50 2.03%National Buildings Construction Corporation 118.76 1.21%Construction ProjectsGammon Infrastructure Projects 114.43 1.16%Finance Rural Electrification Corporation 466.20 4.74%GasGujarat State Petronet 111.80 1.14%Industrial Capital GoodsBEML 129.17 1.31%Industrial Products FAG Bearings India 381.34 3.88%Diamond Power Infrastructure 163.44 1.66%Minerals/MiningGujarat Mineral Development Corporation 301.04 3.06%Petroleum Products Hindustan Petroleum Corporation 434.92 4.42%Indian Oil Corporation 135.78 1.38%Power JSW Energy 451.54 4.59%Reliance Infrastructure 377.83 3.84%Power Grid Corporation of India 278.58 2.83%ServicesAditya Birla Nuvo 521.82 5.31%Textile - Cotton Vardhman Textiles 354.95 3.61%Textile - Synthetic Bombay Dyeing & Manufacturing Company 226.25 2.30%TransportationGateway Distriparks 460.43 4.68%Adani Ports And Special Economic Zone 327.38 3.33%Total 96.09%

HSBC Progressive Themes Fund (HPTF) October 2013

12


% to NetAssets

Other Equity Investments 328.35 3.35%CBLOs 197.41 2.01%Net Current Assets -145.67 -1.45%Total Net Assets as on 31 October 2013 9,829.80 100.00%

Asset AllocationAuto 3.17%Auto Ancillaries 4.48%Banks 26.98%Cement 4.98%Construction 3.24%Construction Project 1.16%Finance 4.74%Gas 1.14%Industrial Capital Goods 1.31%Industrial Products 5.54%Minerals/Mining 3.06%Petroleum Products 5.80%Power 11.26%Services 5.31%Textiles - Cotton 3.61%Textiles - Synthetic 2.30%Transportation 8.01%Other Equity Investments 3.35%Reverse Repos/CBLOs 2.01%Net Current Assets -1.45%Total Net Assets 100.00%





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

Date of Allotment 23-Feb-06Benchmark S&P BSE 200NAV (Growth) per unit(as on 31.10.13)

` 8.7940


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






HSBC Progressive Themes Fund (HPTF) October 2013

13


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

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


% to NetAssets

Auto Maruti Suzuki India 529.03 3.09%Auto Ancillaries Amara Raja Batteries 579.49 3.39%MRF 519.47 3.04%Motherson Sumi Systems 463.89 2.71%Banks ICICI Bank 874.34 5.11%HDFC Bank 808.45 4.72%Federal Bank 337.07 1.97%ING Vysya Bank 296.67 1.73%Karur Vysya Bank 272.11 1.59%Cement Shree Cements 1,034.28 6.04%The Ramco Cements 451.32 2.64%Construction ProjectLarsen & Toubro 491.72 2.87%Consumer DurablesHavells India 373.25 2.18%Consumer Non DurablesI T C 1,144.02 6.69%McLeod Russel India 514.97 3.01%Nestle India 464.55 2.71%Fertilisers Coromandel International 308.03 1.80%Finance HDFC 814.01 4.76%LIC Housing Finance 508.44 2.97%GasPetronet LNG 306.90 1.79%Industrial Capital GoodsCrompton Greaves 429.79 2.51%Industrial ProductsSupreme Industries 648.01 3.79%OilOil & Natural Gas Corporation 396.50 2.32%Pharmaceuticals Divi's Laboratories 368.22 2.15%Lupin 350.72 2.05%Ipca Laboratories 305.28 1.78%Wockhardt 184.49 1.08%Software Tata Consultancy Services 804.69 4.70%Infosys 777.83 4.55%Tech Mahindra 514.95 3.01%Telecom - Services Bharti Airtel 482.37 2.82%Total 95.57%

HSBC Tax Saver Equity Fund (HTSF) October 2013

14

Date of Allotment 05-Jan-07Benchmark S&P BSE 200NAV (Growth) per unit(as on 31.10.13)

` 16.6299

Fund Manager Aditya KhemaniSIP AvailableMinimumApplicationAmount

` 500(Lumpsum & SIP)



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


Asset AllocationAuto 3.09%Auto Ancillaries 9.14%Banks 15.12%Cement 8.68%Construction Project 2.87%Consumer Durables 2.18%Consumer Non Durables 12.41%Fertilisers 1.80%Finance 7.73%Gas 1.79%Industrial Capital Goods 2.51%Industrial Products 3.79%Oil 2.32%Pharmaceuticals 7.06%Software 12.26%Telecom - Services 2.82%Other Equity Investments 2.71%Reverse Repos/CBLOs 2.38%Net Current Assets -0.66%Total Net Assets 100.00%





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

HSBC Tax Saver Equity Fund (HTSF) October 2013

15


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

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

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


% to NetAssets

Auto Bajaj Auto 132.05 2.77%Maruti Suzuki India 106.35 2.23%Auto Ancillaries Amara Raja Batteries 125.54 2.64%Motherson Sumi System 111.46 2.34%Banks ICICI Bank 298.17 6.26%HDFC Bank 220.58 4.63%Karur Vysya Bank 113.92 2.39%Bank of Baroda 105.44 2.21%Federal Bank 90.31 1.90%The Jammu & Kashmir Bank 73.97 1.55%CementShree Cements 110.88 2.33%Grasim Industries 94.59 1.99%Construction ProjectsLarsen & Toubro 142.40 2.99%Consumer Non DurablesI T C 333.93 7.01%McLeod Russel India 97.34 2.04%Nestle 55.97 1.18%Ferrous MetalsTata Steel 68.99 1.45%FertilisersCoromandel International 83.58 1.76%FinanceHDFC 190.51 4.00%IDFC 137.48 2.89%LIC Housing Finance 116.77 2.45%Industrial Products Supreme Industries 117.02 2.46%Minerals/MiningNMDC 83.28 1.75%Non - Ferrous Metals Hindustan Zinc 70.94 1.49%Oil Oil & Natural Gas Corporation 183.56 3.86%Petroleum Products Reliance Industries 142.69 3.00%Pharmaceuticals Lupin 130.52 2.74%Divi's Laboratories 129.34 2.72%Torrent Pharmaceuticals 115.58 2.43%Software Infosys 345.06 7.25%Tata Consultancy Services 201.70 4.24%HCL Technologies 133.47 2.80%Tech Mahindra 79.88 1.68%Telecom - Services Bharti Airtel 113.80 2.39%Total 97.82%

HSBC Unique Opportunities Fund (HUOF) October 2013

16


% to NetAssets


Asset AllocationAuto 5.00%Auto Ancillaries 4.98%Banks 18.94%Cement 4.32%Construction Projects 2.99%Consumer Non Durables 10.23%Ferrous Metals 1.45%Fertilisers 1.76%Finance 9.34%Industrial Products 2.46%Minerals/Mining 1.75%Non - Ferrous Metals 1.49%Oil 3.86%Petroleum Products 3.00%Pharmaceuticals 7.89%Software 15.97%Telecom - Services 2.39%Other Equity Investments 0.75%Reverse Repos/CBLOs 1.92%Net Current Assets -0.49%Total Net Assets 100.00%

Date of Allotment 21-Mar-07Benchmark S&P BSE 200NAV (Growth) per unit(as on 31.10.13)

` 11.2685

Fund Manager Gaurav Mehrotra & Amaresh Mishra


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


Standard Deviation 0.91%R-Squared,m 0.9400Beta (Slope) 0.9039Sharpe Ratio** -0.0377Total Expense Ratio as on October 31, 2013

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 0.45


HSBC Unique Opportunities Fund (HUOF) October 2013

17

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

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


% to NetAssets

AutoTata Motors 343.04 3.63%

Mahindra & Mahindra 142.06 1.50%

Hero Motocorp 135.10 1.43%

Bajaj Auto 106.50 1.13%

Banks ICICI Bank 672.57 7.12%

HDFC Bank 442.52 4.68%

Axis Bank 427.95 4.53%

CementGrasim Industries 211.13 2.23%

Construction ProjectsLarsen & Toubro 277.50 2.94%

Consumer Non DurablesI T C 670.00 7.09%

Hindustan Unilever 152.46 1.61%

Ferrous Metals Tata Steel 167.45 1.77%

Finance HDFC 470.28 4.98%

Minerals/Mining NMDC 173.50 1.84%

Sesa Sterlite 151.50 1.60%

Oil Oil & Natural Gas Corporation 293.70 3.11%

Petroleum Products Reliance Industries 548.82 5.81%

Pharmaceuticals Dr Reddy’s Laboratories 270.20 2.86%

Sun Pharmaceutical Industries 182.64 1.93%

PowerPower Grid Corporation of India 227.93 2.41%

Services Aditya Birla Nuvo 184.17 1.95%

Software Infosys 496.49 5.25%

HCL Technologies 328.61 3.48%

Tata Consultancy Services 316.81 3.35%

Telecom - Services Bharti Airtel 168.87 1.79%

Total 80.02%

HSBC Dynamic Fund (HDF) October 2013

18


% to NetAssets

Other Equity Investments 298.96 3.17%CBLOs 1,724.05 18.24%Net Current Assets -132.72 -1.43%Total Net Assets as on 31 October 2013 9,452.05 100.00%

Asset AllocationAuto 7.69%Banks 16.33%Cement 2.23%Construction Projects 2.94%Consumer Non Durables 8.70%Ferrous Metals 1.77%Finance 4.98%Minerals/Mining 3.44%Oil 3.11%Petroleum Products 5.81%Pharmaceuticals 4.79%Power 2.41%Services 1.95%Software 12.08%Telecom - Services 1.79%Other Equity Investments 3.17%Reverse Repos/CBLOs 18.24%Net Current Assets -1.43%Total Net Assets 100.00%

Date of Allotment 24-Sep-07Benchmark S&P BSE 200NAV (Growth) per unit(as on 31.10.13)

` 10.4999

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


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






HSBC Dynamic Fund (HDF) October 2013

19

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

Date of Allotment 17-Mar-08Benchmark MSCI Emerging

Markets IndexNAV (Growth) per unit(as on 31.10.13)

` 11.9137

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


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


Standard Deviation 1.55%R-Squared 0.226Beta (Slope) 0.974Sharpe Ratio** 0.016Total Expense Ratio as on October 31, 2013

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 0.37


Asset AllocationOverseas Mutual Fund 98.82%Reverse Repos/CBLOs 1.82%Net Current Assets -0.64%Total Net Assets 100.00%


% to NetAssets

Overseas Mutual FundHSBC GIF Glob Emerg Mkts Eq S1 Dis 1,781.31 98.82%CBLOs 32.83 1.82%Net Current Assets -11.58 -0.64%Total Net Assets as on 31 October 2013 1,802.56 100.00%

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) October 2013

20

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


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


% to NetAssets

Auto Ancillaries Balkrishna Industries 40.11 3.24%Suprajit Engineering 32.37 2.61%Majestic Auto 24.41 1.97%Banks State Bank of Travancore 63.66 5.14%State Bank of Bikaner and Jaipur 51.98 4.20%The Karnataka Bank 43.56 3.52%Dena Bank 41.96 3.39%Development Credit Bank 38.36 3.10%Cement Orient Cement 80.31 6.48%Orient Paper & Industries 16.70 1.35%Chemicals India Glycols 32.23 2.60%Consumer Durables IFB Industries 46.37 3.74%Hitachi Home & Life Solutions (India) 28.73 2.32%Bata India 24.68 1.99%Greenply Industries 17.30 1.40%Consumer Non DurablesGlobus Spirits 60.42 4.88%Godfrey Phillips India 39.39 3.18%Lakshmi Energy and Foods 22.00 1.78%FinanceCholamandalam Investment Finance Co. 28.38 2.29%Industrial Capital GoodsSanghvi Movers 25.76 2.08%TIL 21.87 1.77%Indo Tech Transformers 20.95 1.69%Industrial Products Ador Welding 15.26 1.23%Minerals/MiningGujarat Mineral Development Corporation 22.75 1.84%PesticidesPI Industries 31.83 2.57%PharmaceuticalsAurobindo Pharma 32.51 2.62%Alembic Pharmaceuticals 31.90 2.58%Software Nucleus Software Exports 103.70 8.37%Tech Mahindra 27.92 2.25%Textile - Products SRF 23.00 1.86%Textile - Cotton RSWM 102.99 8.31%Transportation Adani Ports and Special Economic Zone 29.10 2.35%Total 98.70%

HSBC Small Cap Fund (HSCF) October 2013

21


% to NetAssets


Asset AllocationAuto Ancillaries 7.82%Banks 19.35%Cement 7.83%Chemicals 2.60%Consumer Durables 9.45%Consumer Non Durables 9.84%Finance 2.29%Industrial Capital Goods 5.54%Industrial Products 1.23%Minerals/Mining 1.84%Pesticides 2.57%Pharmaceuticals 5.20%Software 10.62%Textile - Products 1.86%Textile - Cotton 8.31%Transportation 2.35%Other Equity Investments 0.75%Reverse Repos/CBLOs 5.83%Net Current Assets -5.28%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 31.10.13)

` 8.6325


` 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: 8.70% as on October 31, 2013.

HSBC Small Cap Fund (HSCF) October 2013

22


Our exposure to small cap stocks in HSBC Small Cap Fund (HSCF) is 90.2400%

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 31.10.13)

` 9.8637

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 99.97%Reverse Repos/CBLOs 1.36%Net Current Assets -1.33%Total Net Assets 100.00%


% to NetAssets

Overseas Mutual FundHSBC GIF BRAZIL EQUITY S3D 12,934.65 99.97%CBLOs 175.65 1.36%

Net Current Assets -171.99 -1.33%

Total Net Assets as on 31 October 2013 12,938.31 100.00%

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) October 2013

23

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

Name of Scheme Fund Manager

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

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

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

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

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

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

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

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

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

HSBC Brazil Fund Piyush Harlalka (from 02 July 2012)

Fund Manager’s Experience

Tushar Pradhan Chief Investment Officer and Fund ManagerMBA (USA), B. Com.Experience: Over 17 years of experience in Fund Management l HSBC Asset Management (India) Private Ltd Chief Investment Officer since June 2009 onwards l AIG Global Asset Management Company (India) Private Ltd Chief Investment Officer – Equities from December 2006 to June 2009 l HDFC Asset Management Company Private Ltd Senior Fund Manager from July 2000 to Dec. 2006 l HDFC Ltd Manager – Treasury from April 1995 to June 2000

Dhiraj Sachdev 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

Fund Managers - Equity October 2013

24

l

l

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 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 2005Amaresh 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 2002Piyush 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 October 2013

25

l

l

l

Funds Managed by Tushar Pradhan & Neelotpal Sahai.

Comparative Performance of Equity Schemes October 2013

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

Sept 13Oct 11 - Sept 12

Oct 10 - Sept 11

Since Inception

HSBC Equity Fund - Growth -3.13% 14.01% -18.77% 23.66%S&P BSE 200 (Scheme Benchmark) -1.54% 15.82% -20.33% 17.89%CNX Nifty (Standard Benchmark) 0.29% 17.61% -19.54% 16.86%`10,000, if invested in HEF, would have become `9,687 `11,401 `8,123 `99,969

`10,000, if invested in S&P BSE 200, would have become `9,846 `11,582 `7,967 `59,551

`10,000, if invested in CNX Nifty, would have become `10,029 `11,761 `8,046 `54,147

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


Oct 10 - Sept 11

Since Inception

HSBC India Opportunities Fund - Growth -5.84% 15.56% -13.79% 13.87%S&P BSE 500 (Scheme Benchmark) -3.06% 14.85% -20.54% 12.55%CNX Nifty (Standard Benchmark) 0.29% 17.61% -19.54% 12.68%`10,000, if invested in HIOF, would have become `9,416 `11,556 `8,621 `34,833



26

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

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



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


Oct 10 - Sept 11

Since Inception

HSBC Dynamic Fund - Growth -5.21% 13.69% -17.62% -0.40%S&P BSE 200 (Scheme Benchmark) -1.54% 15.82% -20.33% 1.63%CNX Nifty (Standard Benchmark) 0.29% 17.61% -19.54% 2.54%`10,000, if invested in HDF, would have become `9,479 `11,369 `8,238 `9,761



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


27


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


Since Inception

HSBC Brazil Fund - Growth 5.10% 20.29% -1.16%MSCI Brazil 10/40 Index (Scheme Benchmark) -9.86% 8.94% -14.60%CNX Nifty (Standard Benchmark) 0.29% 17.61% 1.36%`10,000, if invested in HBF, would have become `10,510 `12,029 `9,723

`10,000, if invested in MSCI Brazil 10/40 Index, would have become `9,014 `10,894 `6,838

`10,000, if invested in CNX Nifty, would have become `10,029 `11,761 `10,331


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


Oct 10 - Sept 11

Since Inception

HSBC Emerging Markets Fund - Growth 18.01% 29.82% -17.15% 2.77%MSCI Emerging Market Index (Scheme Benchmark) 4.57% 16.32% -14.52% 1.24%

CNX Nifty (Standard Benchmark) 0.29% 17.61% -19.54% 4.46%`10,000, if invested in HMEF, would have become `11,801 `12,982 `8,285 `11,636

`10,000, if invested in MSCI Emerging Market Index, would have become `10,457 `11,632 `8,548 `10,707



Funds Managed by - Piyush Harlalka.

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


Oct 10 - Sept 11

Since Inception

HSBC Unique Opportunities Fund - Growth -8.23% 18.66% -22.08% 0.33%S&P BSE 200 (Scheme Benchmark) -1.54% 15.82% -20.33% 6.21%CNX Nifty (Standard Benchmark) 0.29% 17.61% -19.54% 6.66%`10,000, if invested in HUOF, would have become `9,177 `11,866 `7,792 `10,218




Fund Managed by Gaurav Mehrotra and Amaresh Mishra.

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


Oct 10 - Sept 11

Since Inception

HSBC Tax Saver Equity Fund - Growth -3.84% 22.94% -19.48% 6.29%S&P BSE 200 (Scheme Benchmark) -1.54% 15.82% -20.33% 4.80%CNX Nifty (Standard Benchmark) 0.29% 17.61% -19.54% 5.56%`10,000, if invested in HTSF, would have become `9,616 `12,294 `8,052 `15,088




Fund Managed by - Aditya Khemani.


28


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


Oct 10 - Sept 11

Since Inception

HSBC Small Cap Fund - Growth -20.39% 5.53% -37.09% -4.08%S&P BSE Small Cap (Scheme Benchmark) -23.20% 3.52% -33.27% -4.26%CNX Nifty (Standard Benchmark) 0.29% 17.61% -19.54% 4.03%`10,000, if invested in HSCF, would have become `7,961 `10,553 `6,291 `7,944

`10,000, if invested in S&P BSE Smallcap, would have become `7,680 `10,352 `6,673 `7,862



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


Oct 10 - Sept 11

Since Inception

HSBC Progressive Themes Fund - Growth -30.25% 16.83% -33.98% -2.86%S&P BSE 200 (Scheme Benchmark) -1.54% 15.82% -20.33% 7.90%CNX Nifty (Standard Benchmark) 0.29% 17.61% -19.54% 8.60%`10,000, if invested in HPTF, would have become `6,975 `11,683 `6,602 `8,019




Funds Managed by - Dhiraj Sachdev.

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


Oct 10 - Sept 11

Since Inception

HSBC Midcap Equity Fund - Growth -25.23% 17.52% -36.47% 4.76%S&P BSE Midcap (Scheme Benchmark) -15.90% 9.88% -24.94% 6.74%CNX Nifty (Standard Benchmark) 0.29% 17.61% -19.54% 13.47%`10,000, if invested in HMEF, would have become `7,477 `11,752 `6,353 `14,762

`10,000, if invested in S&P BSE Midcap, would have become `8,410 `10,988 `7,506 `17,268



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 DepositState Bank of Patiala 1,489.50 5.91% [ICRA]A1+Oriental Bank of Commerce 739.85 2.93% CRISIL A1+Corporate/PSU DebtCorporate Bonds / DebenturesBajaj Finance 1,497.12 5.94% [ICRA]AA+HDFC 1,179.41 4.68% CRISIL AAARural Electrification Corporation 1,169.54 4.64% CARE AAAPower Finance Corporation 978.46 3.88% CRISIL AAAPower Finance Corporation 830.44 3.29% CRISIL AAAHDFC 501.01 1.99% CRISIL AAAPower Finance Corporation 495.91 1.97% CRISIL AAALIC Housing Finance 489.75 1.94% CRISIL AAAPower Finance Corporation 317.55 1.26% CRISIL AAANABARD 200.04 0.79% CRISIL AAAEquitiesListed EquityShree Cements 620.86 2.46%ITC 430.48 1.71%ICICI Bank 383.93 1.52%HDFC Bank 373.28 1.48%Amara Raja Batteries 331.84 1.32%HDFC 328.34 1.30%Grasim Industries 253.35 1.00%Mcleod Russel India 224.41 0.89%Nestle India 223.88 0.89%Supreme Industries 210.63 0.84%MRF 204.76 0.81%Tata Consultancy Services 199.06 0.79%LIC Housing Finance 195.36 0.77%Motherson Sumi Systems 188.49 0.75%Crompton Greaves 168.96 0.67%Bharti Airtel 164.46 0.65% N.ATech Mahindra 162.86 0.65%Havells India 162.72 0.65%Oil & Natural Gas Corporation 161.54 0.64%Larsen & Toubro 160.66 0.64%Karur Vysya Bank 160.18 0.64%Divi's Laboratories 155.72 0.62%Coromandel International 155.72 0.62%Petronet LNG 140.30 0.56%IPCA Laboratories 127.79 0.51%Maruti Suzuki India 126.81 0.50%Orient Cement 106.87 0.42%Punjab National Bank 86.56 0.34%Sanghvi Movers 63.48 0.25%Hindustan Dorr-Oliver 27.11 0.11%Orient Paper & Industries 22.23 0.09%Government Securities7.16% GOVT OF INDIA RED 20-05-2023 2,391.58 9.49% Sovereign7.28% GOVT OF INDIA RED 03-06-2019 1,824.76 7.24% Sovereign8.28% GOVT OF INDIA RED 21-09-2027 1,341.07 5.32% Sovereign8.12% GOVT OF INDIA RED 10-12-2020 1,113.40 4.42% Sovereign8.07% GOVT OF INDIA RED 03-07-2017 593.75 2.36% Sovereign8.30% GOVT OF INDIA RED 31-12-2042 484.92 1.92% Sovereign7.40% GOVT OF INDIA RED 09-09-2035 76.06 0.30% SovereignZero Coupon BondsHDFC 294.53 1.17% CRISIL AAATotal 96.53%

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

29

Date of Allotment 24-Feb-04Benchmark CRISIL MIP

Blended IndexNAV (Growth) per unit(as on 31.10.13)

` 23.2577

Average Maturity of Portfolio

69.11 months

Modified Durationof Portfolio

44.27 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 October 31, 2013


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 AllocationCorporate/ PSU Debt 31.55%Government Securities 31.05%Equity 25.09%Money Market Instruments 8.84%Cash Equivalents 0.44%Net Current Assets 3.03%Total Net Assets 100.00%

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Cash EquivalentsCBLOs 110.70 0.44%Net Current Assets 768.96 3.03%Total Net Assets as on 31 October 2013 25,210.93 100.00%

Rating ProfileAAA and equivalents 34.45%Sovereign 31.05%Equity 25.09%AA+/ AA-/ AA and equivalents 5.94%Reverse Repos/ CBLOs 0.44%Net Current Assets 3.03%Total Net Assets 100.00%

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

30





HSBC MIP - Savings Plan - Monthly Dividend30-Aug-13 0.05065 0.04851 11.560127-Sep-13 0.05065 0.04851 11.834625-Oct-13 0.05065 0.04851 12.0879HSBC MIP - Savings Plan - Monthly Dividend - Direct Plan28-Jun-13 0.05065 0.04851 12.327626-Jul-13 0.05065 0.04851 11.994725-Oct-13 0.05065 0.04851 12.2924HSBC MIP - Savings Plan - Quarterly Dividend15-Mar-13 0.17618 0.15101 12.380314-Jun-13 0.17144 0.16419 12.473213-Sep-13 0.15585 0.14926 11.9150HSBC MIP - Savings Plan - Quarterly Dividend - Direct Plan14-Jun-13 0.17144 0.16419 12.6154


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

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

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Money Market InstrumentsCertificate of DepositOriental Bank of Commerce 369.93 2.45% CRISIL A1+Corporate/PSU DebtCorporate Bonds / DebenturesBajaj Finance 998.08 6.61% [ICRA]AA+NABARD 800.16 5.30% CRISIL AAAHDFC 786.27 5.21% CRISIL AAARural Electrification Corporation 779.69 5.16% CARE AAAPower Finance Corporation 684.92 4.53% CRISIL AAAPower Finance Corporation 495.91 3.28% CRISIL AAALIC Housing Finance 489.75 3.24% CRISIL AAAPower Finance Corporation 390.80 2.59% CRISIL AAAPower Finance Corporation 221.32 1.47% CRISIL AAAEquitiesListed EquityITC 162.47 1.08%Shree Cements 157.68 1.04%HDFC Bank 144.81 0.96%ICICI Bank 142.92 0.95%HDFC 128.26 0.85%Amara Raja Batteries 116.49 0.77%Supreme Industries 109.65 0.73%MRF 92.93 0.62%Bharti Airtel 90.31 0.60%Nestle India 82.83 0.55%Motherson Sumi Systems 81.38 0.54%Crompton Greaves 79.20 0.52%Havells India 77.66 0.51%McLeod Russel India 75.68 0.50%Petronet LNG 73.80 0.49% N.A.Tech Mahindra 72.90 0.48%Tata Consultancy Services 71.81 0.48%LIC Housing Finance 67.37 0.45%Grasim Industries 59.12 0.39%Divi's Laboratories 51.91 0.34%Larsen & Toubro 51.61 0.34%Oil & Natural Gas Corporation 49.93 0.33%Karur Vysya Bank 49.72 0.33%Maruti Suzuki India 48.55 0.32%IPCA Laboratories 45.78 0.30%Orient Cement 27.03 0.18%Punjab National Bank 24.50 0.16%Hindustan Dorr-Oliver 8.13 0.05%Sanghvi Movers 5.83 0.04%Orient Paper & Industries 5.62 0.04%Government Securities7.16% GOVT OF INDIA RED 20-05-2023 1,395.09 9.24% Sovereign7.28% GOVT OF INDIA RED 03-06-2019 1,246.30 8.25% Sovereign8.28% GOVT OF INDIA RED 21-09-2027 1,140.63 7.55% Sovereign8.12% GOVT OF INDIA RED 10-12-2020 653.52 4.33% Sovereign8.07% GOVT OF INDIA RED 03-07-2017 395.83 2.62% Sovereign8.30% GOVT OF INDIA RED 31-12-2042 337.13 2.23% Sovereign7.40% GOVT OF INDIA RED 09-09-2035 50.71 0.34% SovereignZero Coupon BondsHDFC 589.06 3.90% CRISIL AAATotal 93.24%

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

31

Date of Allotment 24-Feb-04Benchmark CRISIL MIP

Blended IndexNAV (Growth) per unit(as on 31.10.13)

` 20.2900


72.73 months


46.75 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 October 31, 2013


Regular 2.39% Direct Plan 1.84% Excludes service tax on Investment Management fees of 0.18% of Total Net Assets.@ Effective from March 1, 2013 for prospective investments.

Asset AllocationCorporate/ PSU Debt 41.29%Government Securities 34.56%Equity 14.94%Cash Equivalents 3.77%Money Market Instruments 2.45%Net Current Assets 2.99%Total Net Assets 100.00%

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Cash EquivalentsCBLOs 569.58 3.77%Net Current Assets 454.63 2.99%Total Net Assets as on 31 October 2013 15,105.18 100.00%

Rating ProfileAAA and equivalents 37.13%Sovereign 34.56%Equity 14.94%AA+/ AA-/ AA and equivalents 6.61%Reverse Repo/CBLOs 3.77%Net Current Assets 2.99%Total Net Assets 100.00%

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

32





HSBC MIP - Regular Plan - Monthly Dividend30-Aug-13 0.05065 0.04851 10.714627-Sep-13 0.05065 0.04851 10.889525-Oct-13 0.05065 0.04851 11.0677HSBC MIP - Regular Plan - Quarterly Dividend15-Mar-13 0.17618 0.15101 11.688314-Jun-13 0.17144 0.16419 11.784813-Sep-13 0.15585 0.14926 11.2322


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 23.23 0.21% CRISIL AAA (SO)

Money Market InstrumentsCertificate of DepositOriental Bank of Commerce 277.45 2.55% CRISIL A1+Syndicate Bank 193.93 1.78% CARE A1+Corporate/PSU DebtCorporate Bonds / DebenturesIndian Railway Finance Corporation 1,093.07 10.06% CRISIL AAAState Bank of India 690.73 6.36% CRISIL AAARural Electrification Corporation 633.50 5.83% CARE AAAHDFC 491.42 4.52% CRISIL AAAHDFC 480.30 4.42% CRISIL AAARural Electrification Corporation 447.64 4.12% CRISIL AAAPower Finance Corporation 303.17 2.79% CRISIL AAAPower Finance Corporation 294.70 2.71% CRISIL AAAPower Finance Corporation 195.40 1.80% CRISIL AAAPower Finance Corporation 144.34 1.33% CRISIL AAARural Electrification Corporation 136.23 1.25% CRISIL AAAGovernment Securities8.12% GOVT OF INDIA RED 10-12-2020 1,490.99 13.72% Sovereign8.28% GOVT OF INDIA RED 21-09-2027 1,231.31 11.33% Sovereign7.16% GOVT OF INDIA RED 20-05-2023 1,173.14 10.80% Sovereign7.28% GOVT OF INDIA RED 03-06-2019 804.21 7.40% Sovereign8.30% GOVT OF INDIA RED 31-12-2042 147.78 1.36% Sovereign5.59% GOVT OF INDIA RED 04-06-2016 0.37 0.00% SovereignTotal 94.34%Cash EquivalentsCBLOs 315.59 2.90%Net Current Assets 297.11 2.76%Total Net Assets as on 31 October 2013 10,865.61 100.00%

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

33

Date of Allotment 10-Dec-02Benchmark CRISIL Composite

Bond Fund IndexNAV (Growth) per unit(as on 31.10.13)

` 20.4555


83.56 months


53.87 months

Yield To Maturity* 9.12%Fund Manager Ruchir Parekh &

Sanjay ShahSIP AvailableMinimumApplicationAmount

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

Exit Load@ NilTotal Expense Ratio as on October 31, 2013 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 0.80%Excludes service tax on Investment Management fees of 0.11% of Total Net Assets.

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

Asset AllocationCorporate / PSU Debt 45.19%Government Securities 44.61%Money Market Instruments 4.33%Cash Equivalents 2.90%Net Current Assets 2.76%Securitised Debt 0.21%





HSBC Income Fund - Investment Plan - Regular Option - Quarterly Dividend15-Mar-13 0.22023 0.18876 11.610014-Jun-13 0.19482 0.18658 11.801813-Sep-13 0.19482 0.18658 11.0394HSBC Income Fund - Investment Plan - Institutional Option - Quarterly Dividend12-Jun-09 0.11387 0.10598 11.029411-Sep-09 0.11387 0.10598 10.996011-Dec-09 0.11387 0.10598 11.0973

Rating ProfileAAA and equivalents 49.73%Sovereign 44.61%Reverse Repos/ CBLOs 2.90%Net Current Assets 2.76%

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

34


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

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

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Money Market InstrumentsCertificate of DepositPunjab National Bank 2,472.99 2.31% CARE A1+Andhra Bank 2,426.05 2.27% CARE A1+UCO Bank 2,423.76 2.26% CRISIL A1+Punjab & Sind Bank 2,418.58 2.26% [ICRA]A1+Punjab & Sind Bank 2,373.54 2.22% [ICRA]A1+United Bank of India 2,367.63 2.21% CARE A1+Oriental Bank of Commerce 2,315.79 2.16% CRISIL A1+Bank of Maharashtra 2,038.91 1.91% CRISIL A1+United Bank of India 1,849.48 1.73% CARE A1+Central Bank of India 1,747.81 1.63% CARE A1+Andhra Bank 1,697.04 1.59% CARE A1+State Bank of Patiala 1,404.02 1.31% [ICRA]A1+Canara Bank 994.81 0.93% CRISIL A1+Kotak Mahindra Bank 952.92 0.89% CRISIL A1+Central Bank of India 793.70 0.74% CRISIL A1+Corporation Bank 485.63 0.45% CRISIL A1+Punjab National Bank 485.49 0.45% CARE A1+Oriental Bank of Commerce 438.46 0.41% CRISIL A1+ICICI Bank 176.38 0.16% [ICRA]A1+Kotak Mahindra Bank 158.21 0.15% CRISIL A1+State Bank of Patiala 144.01 0.13% [ICRA]A1+IndusInd Bank 93.04 0.09% CRISIL A1+ICICI Bank 91.74 0.09% [ICRA]A1+ING Vysya Bank 91.71 0.09% CRISIL A1+Yes Bank 91.70 0.09% [ICRA]A1+ICICI Bank 77.26 0.07% [ICRA]A1+Yes Bank 67.58 0.06% [ICRA]A1+Indian Bank 48.98 0.05% Fitch A1+Commercial PaperMagma Fincorp 2,467.88 2.31% CARE A1+IL & FS 1,932.73 1.81% Fitch A1+Mahindra & Mahindra Financial Serv 1,698.37 1.59% CRISIL A1+Kotak Mahindra Prime 268.63 0.25% CRISIL A1+Corporate/PSU Debt

Corporate Bonds / DebenturesRural Electrification Corporation 4,580.69 4.28% CARE AAARural Electrification Corporation 4,010.38 3.75% CRISIL AAAPower Finance Corporation 3,967.26 3.71% CRISIL AAALIC Housing Finance 3,918.03 3.66% CRISIL AAAShriram Transport Finance Company 2,994.49 2.80% CRISIL AAShriram Transport Finance Company 2,992.06 2.80% CRISIL AALIC Housing Finance 2,816.33 2.63% CRISIL AAAPower Finance Corporation 2,728.52 2.55% CRISIL AAALIC Housing Finance 2,556.42 2.39% CRISIL AAAHDFC 2,505.05 2.34% CRISIL AAAHDFC 2,499.21 2.34% CRISIL AAAHDFC 2,496.86 2.33% CRISIL AAABajaj Finance 2,496.79 2.33% [ICRA]AA+HDFC 2,496.42 2.33% CRISIL AAABajaj Finance 2,495.20 2.33% [ICRA]AA+Rural Electrification Corporation 2,486.89 2.32% CRISIL AAAExport Import Bank of India 2,448.35 2.29% CRISIL AAAPower Finance Corporation 2,435.95 2.28% CRISIL AAAPower Finance Corporation 2,298.16 2.15% CRISIL AAAExport Import Bank of India 1,482.48 1.39% CRISIL AAAPower Grid Corporation of India 1,463.01 1.37% CRISIL AAAPower Grid Corporation of India 988.98 0.92% CRISIL AAAHDFC 982.84 0.92% CRISIL AAAPower Finance Corporation 782.77 0.73% CRISIL AAAShriram Transport Finance Company 498.44 0.47% CRISIL AA

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

35

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


` 20.3640


21.87 months


17.52 months



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

Exit Load@ NilTotal Expense Ratio as on October 31, 2013 Regular 1.25%Institutional # 0.70%Institutional Plus # 0.60%Direct Plan 0.50%Excludes service tax on Investment Management fees of 0.05% of Total Net Assets.

Annualised Expense Ratio from 1st April 2013 onwards Regular 1.25%Institutional # 0.70%Institutional Plus # 0.60%Direct Plan 0.48%Excludes service tax on Investment Management fees of 0.05% of Total Net Assets.

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

Asset AllocationCorporate / PSU Debt 60.23%Money Market Instruments 34.67%Cash Equivalents 3.86%Net Current Assets 1.24%

Rating ProfileAAA and equivalents 82.80%AA+/ AA-/ AA and equivalents 12.10%

Reverse Repos/ CBLOs 3.86%Net Current Assets 1.24%





HSBC Income Fund - Short Term Plan - Regular Option - Monthly Dividend28-Jun-13 0.05067 0.04853 11.096927-Sep-13 0.12012 0.11504 11.060825-Oct-13 0.08585 0.08222 11.0320HSBC Income Fund - Short Term Plan - Monthly Dividend - Direct Plan25-Oct-13 0.10352 0.09914 11.1375HSBC 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) October 2013

36

NABARD 360.62 0.34% CRISIL AAAHDFC 339.32 0.32% CRISIL AAATata Capital Financial Services 308.48 0.29% CRISIL AA+LIC Housing Finance 139.88 0.13% CRISIL AAAExport Import Bank of India 120.07 0.11% CRISIL AAAZero Coupon BondsTata Capital Financial Services 1,153.78 1.08% [ICRA]AA+HDFC 589.06 0.55% CRISIL AAATotal 94.90%Cash EquivalentsCBLOs 4,126.58 3.86%Net Current Assets 1,366.09 1.24%Total Net Assets as on 31 October 2013 1,07,020.31 100.00%


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 DepositIndian Bank 2,400.23 12.12% Fitch A1+Punjab & Sind Bank 2,225.09 11.23% [ICRA]A1+Punjab National Bank 1,941.94 9.80% CARE A1+Central Bank of India 1,686.62 8.51% CRISIL A1+Corporation Bank 1,359.77 6.86% CRISIL A1+State Bank of Patiala 993.00 5.01% [ICRA]A1+United Bank of India 548.94 2.77% CARE A1+Commercial PaperChambal Fertilizers & Chemicals 1,974.54 9.97% CRISIL A1+Magma Fincorp 1,974.30 9.97% CARE A1+Bajaj Finance 1,927.68 9.73% CRISIL A1+Raymond 1,774.72 8.96% CARE A1+Mahindra & Mahindra Financial Serv 799.23 4.03% CRISIL A1+Total 98.96%Cash EquivalentsCBLOs 241.40 1.22%Net Current Assets -37.06 -0.18%Total Net Assets as on 31 October 2013 19,810.40 100.00%

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

October 2013

37

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

IndexNAV (Growth) per unit(as on 31.10.13)

` 19.3359


2.71 months


2.48 months

Yield To Maturity* 9.11%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 October 31, 2013 Regular # 1.30% Institutional 0.75%Direct Plan 0.20% Excludes service tax on Investment Management fees of 0.01% of Total Net Assets. Annualised Expense Ratio from 1st April 2013 onwards Regular # 1.30% Institutional 0.63%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 98.96%Cash Equivalents 1.22%Net Current Assets -0.18%





HSBC Floating Rate Fund - Long Term Plan - Regular Option - Monthly Dividend30-Aug-13 0.06948 0.06654 10.089227-Sep-13 0.07663 0.07339 10.098425-Oct-13 0.06088 0.05830 10.0781HSBC 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 Dividend24-Jan-13 0.05438 0.04661 10.196122-Feb-13 0.04970 0.04260 10.187630-Aug-13 0.13558 0.12985 10.5613

Rating ProfileAAA and equivalents 98.96%Reverse Repos/ CBLOs 1.22%Net Current Assets -0.18%

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

October 2013

38


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


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

IssuerMarketValue

(` in Lacs)

% toNet

AssetsRating

Money Market InstrumentsCertificate of DepositKarur Vysya Bank 10,000.00 3.73% CRISIL A1+Indian Bank 9,904.26 3.69% [ICRA]A1+United Bank of India 9,431.83 3.52% CARE A1+Axis Bank 7,479.22 2.79% CRISIL A1+Bank of Maharashtra 7,474.26 2.79% CRISIL A1+Oriental Bank of Commerce 7,463.47 2.78% CRISIL A1+IDBI Bank 4,993.91 1.86% CRISIL A1+Canara Bank 4,986.28 1.86% CRISIL A1+Dena Bank 4,986.24 1.86% CRISIL A1+Kotak Mahindra Bank 4,980.60 1.86% CRISIL A1+IndusInd Bank 4,980.51 1.86% CRISIL A1+Allahabad Bank 4,975.70 1.86% [ICRA]A1+Bank of Maharashtra 4,972.37 1.85% CRISIL A1+Syndicate Bank 4,972.17 1.85% CARE A1+Bank of India 4,968.48 1.85% CRISIL A1+UCO Bank 4,968.34 1.85% CRISIL A1+State Bank of Patiala 4,967.20 1.85% [ICRA]A1+Bank of Baroda 4,958.26 1.85% [ICRA]A1+IDBI Bank 4,941.76 1.84% CRISIL A1+State Bank of Hyderabad 4,500.00 1.68% [ICRA]A1+Canara Bank 3,979.26 1.48% CRISIL A1+Vijaya Bank 2,495.70 0.93% CARE A1+Oriental Bank of Commerce 2,478.85 0.92% CRISIL A1+Bank of Baroda 2,472.64 0.92% [ICRA]A1+Commercial PaperL&T Finance 9,925.62 3.70% CARE A1+Bajaj Finance 9,918.09 3.70% [ICRA]A1+Chambal Fertilizers & Chemicals 9,896.25 3.69% CRISIL A1+ICICI Securities Primary Dealership 9,874.76 3.68% CRISIL A1+Magma Fincorp 7,476.51 2.79% CARE A1+Godrej Industries 5,493.19 2.05% [ICRA]A1+Gruh Finance 4,980.53 1.86% CRISIL A1+Tata Capital Financial Services 4,975.36 1.86% [ICRA]A1+Aditya Birla Finance 4,975.03 1.86% [ICRA]A1+Tata Capital Financial Services 4,974.84 1.86% [ICRA]A1+Aditya Birla Finance 4,971.28 1.85% [ICRA]A1+Mahindra & Mahindra Financial Serv 4,969.68 1.85% CRISIL A1+Sundaram Finance 4,965.24 1.85% [ICRA]A1+Sundaram Finance 4,952.00 1.85% [ICRA]A1+Magma Fincorp 4,931.89 1.84% CARE A1+Shriram Equipment Finance Co 4,931.89 1.84% CRISIL A1+Gruh Finance 4,442.37 1.66% CRISIL A1+Bajaj Finance 2,491.23 0.93% CRISIL A1+Gruh Finance 2,482.72 0.93% CRISIL A1+Corporate/ PSU DebtFixed DepositYes Bank 4,385.00 1.64% UnratedState Bank of India 275.00 0.10% UnratedTotal 92.72%Cash EquivalentsCBLOs 20,019.15 7.47%Net Current Assets -529.29 -0.19%

Total Net Assets as on 31 October 2013 2,68,109.63 100.00%

HSBC Cash Fund (HCF) October 2013

39

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


` 1233.1859


0.75 months


0.69 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 October 31, 2013 Regular # 1.00% Institutional # 0.35%Institutional Plus 0.09%Direct Plan 0.07%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 Dividend30-Aug-13 8.33178 7.97952 1010.748327-Sep-13 6.53632 6.25997 1008.444225-Oct-13 6.06293 5.80659 1007.8368HSBC Cash Fund - Monthly Dividend - Direct Plan25-Oct-13 6.07244 5.81570 1007.7935HSBC 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

HSBC Cash Fund Average for the Month

Normal (erstwhile insti-plus) 0.09

Direct 0.07

Asset AllocationMoney Market Instruments 90.98%Cash Equivalents 7.47%Fixed Deposit 1.74%Net Current Assets -0.19%

Rating ProfileAAA and equivalents 90.98%Reverse Repos/ CBLOs 7.47%Fixed Deposit 1.74%Net Current Assets -0.19%

HSBC Cash Fund (HCF) October 2013

40


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


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


` 15.3202


94.78 months


54.86 months

Yield To Maturity* 8.73%Fund Manager Sanjay ShahSIP AvailableMinimum ` 10,000Application ` 1,000 p.m.(SIP)AmountExit Load@ Nil

Total Expense Ratio as on October 31, 2013 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 77.45 28.56% Sovereign7.28% GOVT OF INDIA RED 03-06-2019 61.14 22.55% Sovereign7.16% GOVT OF INDIA RED 20-05-2023 36.24 13.36% Sovereign8.30% GOVT OF INDIA RED 31-12-2042 23.09 8.52% Sovereign8.28% GOVT OF INDIA RED 21-09-2027 14.32 5.28% SovereignTotal 78.27%Cash EquivalentsCBLOs 51.55 19.01%Net Current Assets 7.38 2.72%Total Net Assets as on 31 October 2013 271.17 100.00%





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 78.27%Cash Equivalents 19.01%Net Current Assets 2.72%

Rating ProfileSovereign 78.27%Reverse Repos/ CBLOs 19.01%Net Current Assets 2.72%

HSBC Gilt Fund (HGF) October 2013

41


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


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

Issuer

MarketValue(` in

Lacs)

% toNet

AssetsRating

Money Market InstrumentsCertificate of DepositAndhra Bank 727.30 11.89% CARE A1+Central Bank of India 679.70 11.11% CARE A1+Corporation Bank 582.76 9.52% CRISIL A1+United Bank of India 462.37 7.56% CARE A1+Bank of Maharashtra 388.36 6.35% CRISIL A1+Punjab & Sind Bank 193.49 3.16% [ICRA]A1+Commercial PaperRaymond 690.17 11.28% CARE A1+Chambal Fertilizers & Chemicals 493.63 8.07% CRISIL A1+Magma Fincorp 493.58 8.07% CARE A1+Bajaj Finance 481.92 7.88% CRISIL A1+IL & FS 368.14 6.02% Fitch A1+Corporate/ PSU DebtZero Coupon BondsSundaram Finance 437.54 7.15% [ICRA]AA+Total 98.06%Cash EquivalentsCBLOs 1,104.02 18.04%Net Current Assets -983.79 -16.10%Total Net Assets as on 31 October 2013 6,119.17 100.00%

HSBC Ultra Short Term Bond Fund (HUSBF) October 2013

42

Date of Allotment 17-Oct-06Benchmark Customised

Benchmark Index**NAV (Growth) per unit(as on 31.10.13)

` 10.9559


5.36 months


4.90 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 October 31, 2013 Regular # 1.30% Institutional 0.75%Institutional Plus # 0.25%Direct Plan 0.25%Excludes service tax on Investment Management fees of 0.02% of Total Net Assets.

Annualised Expense Ratio from 1st April 2013 onwards Regular # 1.30% Institutional 0.71%Institutional Plus # 0.25%Direct Plan 0.24%Excludes service tax on Investment Management fees of 0.02% of Total Net Assets.

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

Asset AllocationMoney Market Instruments 90.91%Cash Equivalents 18.04%Corporate/ PSU Debt 7.15%Net Current Assets -16.10%

Rating ProfileAAA and equivalents 90.91%Reverse Repos/ CBLOs 18.04%AA+/ AA-/ AA and equivalents 7.15%

Net Current Assets -16.10%





HSBC Ultra Short Term Bond Fund - Institutional Option - Monthly Dividend30-Aug-13 0.05565 0.05330 10.198227-Sep-13 0.10462 0.10019 10.261125-Oct-13 0.07530 0.07211 10.2234HSBC 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) October 2013

43


HSBC Ultra Short Term Bond Fund

Average for the Month

Normal (erstwhile institutional plan) 0.75

Direct 0.25

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

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

IssuerMarketValue

(` in Lacs)

% toNet

AssetsRating

Money Market InstrumentsCertificate of DepositOriental Bank of Commerce 3,236.86 3.19% CRISIL A1+Syndicate Bank 2,230.24 2.20% CARE A1+Corporate/PSU DebtCorporate Bonds / DebenturesIndian Railway Finance Corporation 9,547.40 9.40% CRISIL AAARural Electrification Corporation 5,506.57 5.42% CARE AAAHDFC 4,322.67 4.26% CRISIL AAAState Bank of India 3,749.67 3.69% CRISIL AAARural Electrification Corporation 3,531.38 3.48% CRISIL AAAPower Finance Corporation 3,031.68 2.99% CRISIL AAAPower Finance Corporation 2,652.30 2.61% CRISIL AAAShriram Transport Finance Company 2,493.38 2.46% CRISIL AATata Sons 2,003.47 1.97% CRISIL AAAPower Finance Corporation 2,002.83 1.97% CRISIL AAAShriram Transport Finance Company 1,993.76 1.96% CRISIL AALIC Housing Finance 1,498.05 1.48% CRISIL AAAHDFC 1,474.26 1.45% CRISIL AAAShriram Transport Finance Company 998.16 0.98% CRISIL AARural Electrification Corporation 771.98 0.76% CRISIL AAAPower Finance Corporation 760.20 0.75% CRISIL AAAGovernment Securities7.16% GOVT OF INDIA RED 20-05-2023 13,574.91 13.37% Sovereign8.12% GOVT OF INDIA RED 10-12-2020 10,219.09 10.07% Sovereign7.28% GOVT OF INDIA RED 03-06-2019 9,231.99 9.09% Sovereign8.28% GOVT OF INDIA RED 21-09-2027 8,681.18 8.55% Sovereign8.30% GOVT OF INDIA RED 31-12-2042 2,239.86 2.21% Sovereign7.40% GOVT OF INDIA RED 09-09-2035 718.35 0.71% SovereignZero Coupon BondsHDFC 294.53 0.29% CRISIL AAATotal 95.31%Cash EquivalentsCBLOs 1,478.31 1.46%Net Current Assets 3,275.68 3.23%Total Net Assets as on 31 October 2013 1,01,518.77 100.00%

HSBC Flexi Debt Fund (HFDF) October 2013

44

Date of Allotment 05-Oct-07Benchmark CRISIL Composite


` 16.5627


81.14 months


51.40 months


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

Total Expense Ratio as on October 31, 2013 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 0.80%Excludes service tax on Investment Management fees of 0.07% 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 Dividend15-Mar-13 0.19821 0.16988 12.068614-Jun-13 0.19482 0.18658 12.285813-Sep-13 0.19482 0.18658 11.6710HSBC Flexi Debt Fund - Institutional Option - Quarterly Dividend15-Mar-13 0.19821 0.16988 11.973714-Jun-13 0.19482 0.18658 12.195013-Sep-13 0.19482 0.18658 11.5902HSBC Flexi Debt Fund - Quarterly Dividend - Direct Plan13-Sep-13 0.19482 0.18658 11.6677HSBC 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 AllocationCorporate / PSU Debt 45.92%Government Securities 44.00%Money Market Instruments 5.39%Cash Equivalents 1.46%Net Current Assets 3.23%

Rating ProfileAAA and equivalents 45.91%Sovereign 44.00%AA+/ AA-/ AA and equivalents 5.40%Reverse Repos/ CBLOs 1.46%Net Current Assets 3.23%

HSBC Flexi Debt Fund (HFDF) October 2013

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 October 2013

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 October 2013

47

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

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


Oct 10 - Sept 11

Since Inception

HSBC MIP - Regular Plan - Growth 3.43% 11.08% 1.35% 7.31%Crisil MIP Blended Index (Scheme Benchmark) 3.11% 11.00% 1.63% 6.77%Crisil 1 Year T-Bill Index (Standard Benchmark) 5.63% 8.13% 5.36% 5.29%Crisil 10 Year Gilt Index (Standard Benchmark) 2.45% 8.03% 3.56% 4.23%`10,000, if invested in HMIP - R, would have become `10,343 `11,108 `10,135 `19,697

`10,000, if invested in Crisil MIP Blended Index, would have become `10,311 `11,100 `10,163 `18,765

`10,000, if invested in Crisil 1 Year T-Bill Index, would have become `10,563 `10,813 `10,536 `16,410

`10,000, if invested in Crisil 10 Year Gilt Index, would have become `10,245 `10,803 `10,356 `14,889

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

- Sept 13Oct 11 - Sept 12

Oct 10 - Sept 11

Since Inception

HSBC MIP - Savings Plan - Growth 3.33% 13.64% -1.00% 8.78%Crisil MIP Blended Index (Scheme Benchmark) 3.11% 11.00% 1.63% 6.77%Crisil 1 Year T-Bill Index (Standard Benchmark) 5.63% 8.13% 5.36% 5.29%Crisil 10 Year Gilt Index (Standard Benchmark) 2.45% 8.03% 3.56% 4.23%`10,000, if invested in HMIP - S, would have become `10,333 `11,364 `9,900 `22,448

`10,000, if invested in Crisil MIP Blended Index, would have become `10,311 `11,100 `10,163 `18,765



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 Oct 12

- Sept 13Oct 11 - Sept 12

Oct 10 - Sept 11

Since Inception

HSBC Gilt Fund - Growth 4.96% 11.09% 7.56% 4.25%I-Sec Composite Index (Scheme Benchmark) 4.86% 10.07% 6.45% 6.35%Crisil 10 Year Gilt Index (Standard Benchmark) 2.45% 8.03% 3.56% 4.22%`10,000, if invested in HGF, would have become `10,496 `11,109 `10,756 `15,055

`10,000, if invested in I-Sec Composite Bond Fund Index, would have become `10,486 `11,007 `10,645 `18,316


Fund Managed by - Sanjay Shah.



48


47

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


Oct 10 - Sept 11

Since Inception

HSBC FRF - LTP - Growth 8.73% 8.97% 7.70% 7.58%Crisil Liquid Fund Index (Scheme Benchmark) 8.52% 8.68% 7.75% 6.80%Crisil 1 Year T-Bill Index (Standard Benchmark) 5.63% 8.13% 5.36% 5.51%

`10,000, if invested HFRF - LTP, would have become `10,873 `10,897 `10,770 `19,132

`10,000, if invested in Crisil Liquid Fund Index, would have become `10,852 `10,868 `10,775 `17,935


Funds Managed by - Sanjay Shah & Ruchir Parekh.


HSBC Ultra Short Term Bond Fund$ Date of Inception : 17 Oct 06Scheme Name & Benchmarks Oct 12 - Sept 13 Since InceptionHSBC Ultra Short Term Bond Fund - Growth 8.43% 8.43%Customised Benchmark Index (Scheme Benchmark)* 8.44% 8.44%

Crisil 1 Year T-Bill Index (Standard Benchmark) 5.63% 5.63%

`10,000, if invested in HUSTBF, would have become `10,843 `10,843

`10,000, if invested in Customised Benchmark Index, would have become `10,844 `10,844

`10,000, if invested in Crisil 1 Year T-Bill Index, would have become `10,563 `10,563


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


Oct 10 - Sept 11

Since Inception

HSBC Flexi Debt Fund - Growth 5.38% 10.57% 7.45% 8.48%Crisil Composite Bond Fund Index (Scheme Benchmark) 3.42% 9.56% 5.61% 6.22%

Crisil 10 Year Gilt Index (Standard Benchmark) 2.45% 8.03% 3.56% 5.63%`10,000, if invested in HFDF, would have become `10,538 `11,057 `10,745 `16,289

`10,000, if invested in Crisil Composite Bond Fund Index, would have become `10,342 `10,956 `10,561 `14,358



*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 Oct 12 -


Oct 10 - Sept 11

Since Inception

HSBC Income Fund - Investment Plan - Growth 3.95% 10.47% 7.37% 6.67%Crisil Composite Bond Fund Index (Scheme Benchmark) 3.42% 9.56% 5.61% 5.51%

Crisil 10 Year Gilt Index (Standard Benchmark) 2.45% 8.03% 3.56% 5.09%`10,000, if invested in HIF - IP, would have become `10,395 `11,047 `10,737 `20,106

`10,000, if invested in Crisil Composite Bond Fund Index, would have become `10,342 `10,956 `10,561 `17,863


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


Oct 10 - Sept 11

Since Inception

HSBC Income Fund - S T P - Growth 6.65% 9.35% 8.12% 6.68%Crisil Short Term Bond Fund Index (Scheme Benchmark) 7.66% 9.21% 6.79% 6.47%

Crisil 1 Year T-Bill Index (Standard Benchmark) 5.63% 8.13% 5.36% 5.30%

`10,000, if invested in HIF -ST, would have become `10,665 `10,935 `10,812 `20,126

`10,000, if invested in Crisil Short Term Bond Fund Index, would have become `10,766 `10,921 `10,679 `19,702


Funds Managed by - Ruchir Parekh & Sanjay Shah.



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

Last 7 Days as on 30

Sept 2013

Last 15 Days as on 30

Sept 2013

Last 30 Days as

on 30 Sept 2013

Oct 12 - Sept 13

Oct 11 - Sept 12

Since Inception

HSBC Cash Fund - Growth 10.34% 10.66% 10.87% 8.98% 8.41% 8.86%

Crisil Liquid Fund Index (Scheme Benchmark)

11.81% 14.53% 15.48% 8.52% 8.68% 8.53%

Crisil 91 Day T-Bill Index (Standard Benchmark)

11.33% 13.01% 11.26% 7.80% 8.73% 7.92%

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

`10,020 `10,044 `10,089 `10,898 `10,841 `12,231

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

`10,023 `10,060 `10,127 `10,852 `10,868 `12,144

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

`10,022 `10,053 `10,093 `10,780 `10,873 `11,982


@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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