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Impact of Recession: HSBC Mutual Fund
19 February 2009
Group 5 Archit Chaurasiya 218
Rajiv Chaudhary 217
Ashish Dalmia 219Shubhanshu Gupta 226
Harshil Shah 245
Prashant Sukhwani 250
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Mutual Fund
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What is a Mutual Fund
y Form of trust that pools the funds of a whole lot of investors tomake more money by investing in an array of financialinstruments
y Advantages of a MF
± Professional Management
± Diversification
± Flexibility in choice - selection, redemption
± Low costs
± Transparency
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Mutual Fund Flow Chart
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Type of Funds
Equity: invest a major part of their
corpus in equities
Debt: invest in fixed income
securities such as bonds, corporate
debentures, Government securities
and money market instruments
Balanced Fund: invest 40-60% inequity and debt instruments.
Liquid: invest exclusively in safer
short-term instruments such as
treasury bills, certificates of deposit,
commercial paper and inter-bank call
money, government securities, etc.
Index: invest in securities in the
same weightage comprising of an
index
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HSBC AMC
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HSBC Mutual Fund
Category Scheme
Equity HSBC Advantage FundHSBC Dynamic Fund
HSBC Emerging Markets Fund
HSBC Equity Fund
HSBC Opportunities Fund
HSBC Midcap Equity Fund
HSBC Small Cap Fund
HSBC Tax Saver Equity FundHSBC Unique Opportunities Fund
Debt HSBC Flexi Debt Fund
HSBC FRF LTP
HSBC Gilt Fund STP
HSBC Income Fund Invt Plan
HSBC Income Fund S T P
HSBC Liquid Plus FundHSBC MIP Regular Plan
HSBC MIP Savings Plan
HSBC FTS
HSBC Interval Fund
Liquid HSBC FRF STP
HSBC Cash Fund
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HSBC ± U l i
± HSBC has lost 37% of it U from September 2008 to Januar 2009
± In rupee terms it amounts to a whopping Rs. 58 billion
Source: www.f as.usda.gov
1553282
975283
0
500000
1000000
1500000
2000000
um (Rs in lakhs)
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Recession: Impact on Investment by HSBC AMC
±Automobiles
±Steel
±Real Estate
±Cement
±Gems & Jewellery
±Banking
±Aviation
y Indian mutual fund unit head of equities, Mihir Vora, has resigned lastmonth.
y The fund house lost its head of fixed income Shailendra Jhingan inDecember .
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Sources
y http://news.moneycontrol.com/mf/glossary.php
y http://www.investopedia.com/university/mutualfunds/default.asp
y http://www.valueresearchonline.com
y http://www.amfiindia.com/
y http://www.mutualfundsindia.com/resourcecentre.asp
y http://www.assetmanagement.hsbc.co.in/site/home
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To be continued«
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A Chat with Mrs. Deepali Naair Vice President & Head of Mar keting HSBC
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Mar keting and Recession
y Marketing can work wonders in recession
± Price of media cheapest
± Brand Building easier
y BUT«
± Companies have no money to eat , so where is the question of advertisingand marketing
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Product
y New product launch / delays
± No new product development
± No launches lined up
± Concentration on current products
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Place
y Distribution channel changes
± Expansion of the channel in terms of additional sales officers and agentsstopped
± Contracts on quarterly / yearly basis ensures channel to operate at presetcost for atleast sometime before the price catches up
y Commission / Schemes
± Internal Sales Officer scheme: Meet set business targets, get nonmonetary benefits like gift items
± Distributor Contest: Commit a certain business and based on the level of
commitment get commission rates. (industry avg: 2 ±
2.5)
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Promotion - II
y Campaign delayed / Promotional Activities
± Yes, plans of relaunch of a fund cancelled
± Fund not giving returns
± Hence campaign was cancelled
± Bonus scheme explained in the place part as they are meant for channels
y Changes in Media / Media Planning
± No change whatsoever
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MIscellaneous
y Changes in compensation packages
± Technically a decrement across levels
± No increment
± Bonus pittance
y R ecruitment in your dept
± R ecruitment Freeze
± Denied permission to fill a vacant position in the dept
± People not meeting up their targets are laid off
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Future Outlook
± Marketing Depts have to ride and survive this cycle
± Good time to strengthen your business fundamentals in anticipationof tide to change
± Marketing needs to rethink its usefulness to the organisation byconcentrating less on media and advertising but more onimprovement of basic customer operations and on direct marketing
± Customer R elation Management is seen as the key to brand building
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Thank You
Group 5 Archit Chaurasiya 218
Rajiv Chaudhary 217
Ashish Dalmia 219
Shubhanshu Gupta 226
Harshil Shah 245
Prashant Sukhwani 250