HSBC Dynamic Fund

HSBC Dynamic Fund is being managed by Tushar Pradhan and Sanjay Shah. The fund proposes to allocate assets to both equity and debt markets based upon the market view. This allocation shall be steadily monitored and as and when the market movements demand, a switch would be made. The fund’s performance has been unimpressive. Existing investors should exit and new investors can skip this one.

Where does HSBC Dynamic Fund invest your money?

HSBC Dynamic Fund is a balanced fund which means most of your money will be invested in equity as well as debt. It has more than 69% allocation to equity and around 30% allocation to debt. Its equity portion has large cap bias which means most of your money will be allocated in stocks of lage cap companies. Presently it has around 80.18% allocation to large cap companies, 18.50% to mid cap companies and around 1.33% allocation to small cap companies. Large cap companies tend to be stable compared to mid-cap and small cap companies.

Suitable for what?

The following needs if occurring between 3 and 5 years:

  • Child's education
  • Marriage
  • Home Purchase
Not suitable for what?
  •  Long term needs
  •  Creation of wealth
How has HSBC Dynamic Fund performed in the past?

If you invested Rs 1 lakh when the fund was launched in Sep 2007, you would have around Rs 1.01 lakhs. The performance has not been similar to other funds in this category. 

Assume you had invested Rs 10,000 every month in HSBC Dynamic Fund through SIP since inception today you would have around Rs 6.77 lakhs.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
Not Recommended
What are the charges applicable?

If units are sold within a year an exit load of 1% is deducted from your total returns. No exit load applies for units withdrawn post one year. Expense ratio of HSBC Dynamic Fund is 2.74%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio.

 

What are the tax implications?

The returns in an equity mutual fund are absolutely tax free, provided you do not withdraw within 1 year.

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