HSBC Equity Fund

HSBC Equity fund is an average performer in its category. This fund is being managed by Tushar Pradhan since September 2011. The fund’s performance has slowed down from the former better days and becoming worse. Existing investors can exit the fund to invest in best fund of this category. New investors have better funds to turn to.

Where does HSBC Equity Fund invest your money?

HSBC Equity Fund is a diversified large cap fund which means most of your money will be invested in giant and large companies.  And just to give kicker returns the fund has some exposure in mid cap companies as well. Large cap companies tend to be stable compared to mid cap and small cap companies. Close to 87.09% of portfolio allocation is in stocks of large cap companies  10.85% in stocks of mid cap companies and 2.06% in stock of small cap companies.

Suitable for what?
  • Child's marriage
  • Child's education
  • Retirement Planning
  • Home Purchase
Not Suitable for?
  • Creation of wealth
  • Short term needs
Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
Not Recommended
How has HSBC Equity Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in Dec 2002, your value of investments would be around Rs 10.53 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 1.07 lakhs. The performance has not been better than the best funds but has hovered around the category average. The fund has been giving at around 1.53% every year for those who stayed invested for last 5 years.

Assume you had invested Rs 10,000 every month in HSBC Equity Fund through SIP for the past 5 years today you would have around Rs 7.09 lakhs.

What charges apply?

A onetime fee of Rs 100 is charged on investments over Rs 10, 000 made through distributors. If you are a first time investor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from your investment and can be skipped if you buy directly from the mutual fund via their website or offices.

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 No exit load applies for units withdrawn post one year.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 Equity Fund is 2.53%. 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.

When to exit?

Withdraw when your goals are close to achievement. Do not remove the money when the markets go up or down. Do not panic. Stick to your goals.

What are the tax implications?

The returns in a mutual fund are absolutely tax free, provided you did not withdraw within 1 year. HSBC Equity Fund does not qualify for sec 80C ELSS benefits.

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