Abridged Schemewise Annual Reports 2016 - 2017 · The Trustees of HSBC Mutual Fund (“Fund”)...

Filename: Annual Report Cover_2016-17.ai Size (cm): 13 (W) x 20.5 (H) Job No.: 17-0972

Abridged SchemewiseAnnual Reports 2016 - 2017

► INDEX HSBC Equity Fund 1 HSBC India Opportunities Fund 23 HSBC Midcap Equity Fund 45 HSBC Infrastructure Equity Fund 67 HSBC Tax Saver Equity Fund 89 HSBC Dynamic Fund 111 HSBC Dividend Yield Fund 133 HSBC Emerging Markets Fund 155 HSBC Asia Pacific (Ex Japan) Dividend Yield Fund 177 HSBC Brazil Fund 199 HSBC Managed Solutions 221 HSBC Global Consumer Opportunities Fund 262 HSBC MIP 284 HSBC Income Fund 308 HSBC Ultra Short Term Bond Fund 344 HSBC Cash Fund 370 HSBC Flexi Debt Fund 395 HSBC Capital Protection Oriented Fund 421 HSBC Fixed Term Series 454

HSBC Equity Fund 1

HSBC Equity FundAn Open-ended Diversified Equity Scheme

Abridged Annual Report 2016 - 2017

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HSBC Equity Fund 1

Dear Investor,

We are living in interesting times of great changes. Some of these changes are transformative and we believe provide the foundations of a strong growth phase for our economy.

Post the global fi nancial crisis of 2007, global economic activity is picking up after almost a decade with a long-awaited cyclical recovery in investment, manufacturing and trade. It may surprise you that even during this very diffi cult period equity markets have produced signifi cant returns, with the US markets generating returns in excess of 15% and the Indian markets even higher. IMF forecasts world growth to rise from 3.1 percent in 2016 to 3.5 percent in 2017 and 3.6 percent in 2018.

The cumulative impact of demonetisation, digitisation and GST will lead to far reaching positive outcomes. And this is perhaps just the beginning. To our mind, the most signifi cant change will be the formalisation of economic activities leading to greater transparency.

This formalisation besides leading to greater tax revenues and transparency will also lead to a shift from savings from physical assets such as gold and real estate into fi nancial assets. At present, fi nancial savings are 40 per cent of the Gross Domestic Savings and within fi nancial savings, equity and equity mutual funds constitute only 8 per cent. The proportion of fi nancial savings is likely to rise which will provide support to the markets and also bring down the reliance on external fl ows. The domestic mutual fund industry is today at its infl ection point. SIP investments from retail investors has touched a new high. This along with fl ows from the NPS, EPFO and insurance companies today provides a pool of domestic liquidity which we haven’t seen in the past.

Whilst our highly experienced fund managers bring their strong personal investment capabilities, I would like to emphasise that HSBC investment philosophy is effectively embedded in this process. Our proprietary fund management framework helps us take consistent investment decisions while mitigating risks to help you realise your goals.

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1 HSBC Equity Fund

We at HSBC Global Asset Management, always believe that it is your dreams we care for by nurturing your investments. Thank you for the trust you have bestowed upon us.

Warm regards,

Ravi Menon

Chief Executive Offi cer,

HSBC Global Asset Management, India

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HSBC Equity Fund 1

SPONSORHSBC Securities and Capital Markets (India) Private LimitedRegd. Offi ce: 52/60, Mahatma Gandhi Road, Fort, Mumbai - 400 001.

TRUSTEEBoard of TrusteesOffi ce: 16, Veer Nariman Road, Fort, Mumbai 400 001.

ASSET MANAGEMENT COMPANYHSBC Asset Management (India) Private LimitedCorp. & Regd. Offi ce: 16, Veer Nariman Road, Fort, Mumbai 400 001.

CUSTODIANStandard Chartered Bank (SCB)Corp. & Regd. Offi ce: Crescenzo, Securities Services, 3rd Floor, C-38/39, G-Block, Bandra Kurla Complex, Bandra East, Mumbai – 400051.

AUDITORS TO THE SCHEMEBSR & Co. LLPChartered Accountants5th Floor, Lodha Excelus, Apollo Mills Compound, N.M. Joshi Marg, Mahalaxmi, Mumbai 400 011.

LEGAL ADVISORSBharucha & PartnersBharucha & Partners, Hague Building, Sprott Road, Ballard Estate, Mumbai - 400 001.

REGISTRAR & TRANSFER AGENTSComputer Age Management Services (P) Ltd. (CAMS)No. 4. Nehru Nagar West, Kalapatti Main Road, Civil Aerodrome Post, Coimbatore - 641 014

BOARD OF TRUSTEESMr. N. P. Gidwani - Chairman

Mr. Nasser MunjeeMr. Manu TandonMr. Mehli MistriMr. Dilip J. ThakkarMs. Glenn Berry

BOARD OF DIRECTORSMs. Kishori J. Udeshi - Chairperson

Mr. S. P. MustafaMr. Dinesh MittalMr. Ravi Menon - Chief Executive Offi cer

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1 HSBC Equity Fund

Trustees’ ReportFor the year ended March 31, 2017

The Trustees of HSBC Mutual Fund (“Fund”) present the Fifteenth Annual Report and the audited abridged fi nancial statements of the schemes of the Fund for the year ended March 31, 2017.

As at March 31, 2017, the Fund offered 25 schemes across asset classes to meet the varying investment needs of the investors. Notably, three Schemes of HSBC Mutual Fund viz. HSBC Equity Fund, HSBC Income Fund and HSBC Cash Fund have completed 14 years of operations during the year.

During the year, the Fund has launched Plan(s) under Fixed Term Series and carried out mergers of the existing schemes viz. HSBC Floating Rate Fund – Long Term Plan merged into HSBC Ultra Short Term Bond Fund and HSBC MIP – Regular Plan merged into HSBC MIP – Savings Plan and renamed as HSBC Monthly Income Plan. The objective of these mergers were to avoid offering of similar schemes and to ensure that the name of the scheme is refl ective of its strategy and asset allocation.

The Fund continues its focus on delivering consistent long term returns. The comments on the performance of the Scheme(s) is provided hereinafter. Dividends were declared under various schemes as per the provisions contained in the respective Scheme Information Documents after considering the distributable surplus available under the respective Schemes. Details of dividends declared can be viewed on our website at www.assetmanagement.hsbc.com/in.

1. SCHEME PERFORMANCE, FUTURE OUTLOOK AND OPERATIONS OF THE SCHEMES

a. Operations and Performance of the Schemes

HSBC Equity Fund (HEF) – an open-ended diversifi ed Equity Scheme HEF seeks to generate long-term capital growth from an actively managed portfolio of equity and equity related securities.

The net assets of HEF amounted to Rs. 598.66 crores as at March 31, 2017 as against Rs. 567.22 crores as at March 31, 2016. Around 98.32% of the net assets were invested in equities, 1.46% of the net assets were invested in reverse repos / CBLO and 0.22% in net current assets as at March 31, 2017.

HEF is a true large cap fund and we remained invested in a diversifi ed portfolio across large capitalization stocks. It has outperformed its benchmark Nifty 50 over the FY 2016-17 by 670bps primarily due to superior stock selection. Selections in sectors like Financials, Materials, Energy, and Consumer Discretionary contributed to the outperformance during this period. In terms of allocation, being overweight in Financials and underweight in Telecom have been positive contributors to outperformance.

Date of Inception : 10 December 2002 Absolute Returns

(%)

Compounded Annualized Returns (%)

Scheme Name & Benchmarks 1 Year 3 Years 5 Years Since Inception

HSBC Equity Fund – Growth 25.25 14.58 13.04 22.23

Nifty 50 (Scheme Benchmark) 18.55 11.01 11.60 16.24

S&P BSE 200 (Standard Benchmark) 22.47 14.17 13.08 17.75

Rs. 10,000, if invested in HEF, would have become 12,525 15,043 18,453 177,911

Rs. 10,000, if invested in Nifty 50, would have become 11,855 13,680 17,313 86,601

Rs. 10,000, if invested in S&P BSE 200, would have become

12,247 14,882 18,487 104,155

Past performance may or may not be sustained in future. Returns data as on March 31, 2017 for Growth Option has been provided. Different plans shall have a different expense structure.

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HSBC Equity Fund 1

Trustees’ ReportFor the year ended March 31, 2017 (Contd...)

b. Market Overview & Outlook (as furnished by HSBC Asset Management (India) Private Limited)

EQUITY OUTLOOKAfter a weak performance in the preceding year, Indian equity markets rebounded strongly during fi scal year 2016-17 and posted gains of 18.5% by S&P CNX Nifty and 32.7% by BSE Midcap index. The markets weathered the storm of several path breaking events such as Demonetization domestically and external ones such as a noisy US presidential election, Brexit and the start of US rate hike cycle and delivered a strong performance.

Normal Monsoon season after two below normal years, implementation of seventh pay commission and OROP provided tailwinds to consumption and the passage of the landmark tax legislation of GST provided further impetus to the reforms roadmap. The domestic Mutual Fund segment brought in ~USD 8.4 bn of net infl ows in equities during the year. Even after witnessing ~USD 3.9 bn of net outfl ows from the domestic insurers, the net DII tally was an impressive ~USD 4.5 bn of net infl ows. There were positive global cues as well and the Foreign Institutional Investors (FIIs) net bought Indian equities worth USD 8.3 bn. Strong fl ows by both FIIs / FPIs and domestic MFs acted as a factor in the strong market performance.

Indices Returns (April 1, 2016 to March 31, 2017) 1 Year (%)

S&P BSE Sensex 16.9%

NSE CNX Nifty 18.5%

S&P BSE 100 21.2%

S&P BSE 200 22.5%

S&P BSE 500 24.0%

S&P BSE Midcap 32.7%

Source: Bloomberg

Our view on the key aspects related to equity markets are presented below -

The impressive performance in equity markets during FY 2016-17 has come on the back of strong liquidity driven by both FIIs & domestic MFs, positive global cues and expectation of the continuation of favorable policy environment domestically especially after the state electoral wins for the ruling party at the centre. However, after this strong performance, the equity markets are currently trading above their historical averages.

Moving into FY 2017-18, we expect a continuation of the economic recovery process domestically, led early by better margins – due to lower input and interest costs and followed by a volume recovery. Government led investment spending and urban consumption are likely to lead with private sector investments contributing later. On the policy front, Government has done its fair bit to improve the investment environment and the GST, a mega tax reform is now closer to reality. The ruling party at the centre has done well in the recent state assembly elections, especially in the key state of Uttar Pradesh and this is likely to provide them with political capital to pursue and implement economic reforms more aggressively.

The budget document that was presented in early February provides a good medium term policy direction for the economy. Occasionally the policy actions can serve up a few bumps and jolts but over the medium term, across different governments, there is a thread of continuity connecting many key economic policies such as in the case of this year’s union budget. We, in our investment process, prefer to take comfort in these threads of continuity and remain constructive on the India growth story. This makes us positive on the Indian equity markets over the medium to long term.

Risks are in the form of market valuations trending above historical averages and weaker than expected delivery in corporate earnings going forward. External news fl ows related to geopolitical tensions and other eco-political events would also infl uence market performance going forward, as the recent rally in the markets was supported by strong FII infl ows.

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DEBT OUTLOOKFixed Income in Financial Year 2016-17 has seen volatility on various counts starting from Brexit effect, US election, effects of demonetization, change of governor and Change in monetary policy stance by new monetary policy committee in February, 2017.

Infl ation has followed the glide path to lower numbers towards 5% RBI target. RBI saw a change of guard and change in decision making process through implementation of monetary policy committee. The repo rate was cut twice with gap of 6 months. The rate cuts were not fully passed through in lending rates by similar quantum. Banks passed on the rate cuts after the deposit deluge after demonetization.

Deposit growth shot up during the period due to demonetization. However, credit growth nosedived and remained single digit number towards the close of the year. RBI changed its stance on liquidity at the start of the year and created liquidity surplus. Further, there were pressure to handle surplus liquidity created by demonetization. CRR was adopted as a measure initially and later short duration T bills were issued to manage the liquidity. Still the system liquidity remained surplus to the extent of 3% of deposits for the last quarter. Credit growth remained subdued due to lower commodity prices, lower trade activity and slower economic growth and demonetization. Currency (INR) appreciated during the year especially given the strong political outlook that came out in March 2017 and the after effect of demonetization and hawkish monetary stance.

UDAY bond issuances continued in FY 2016-17 as well and in the second half along with the hawkish monetary policy it put huge pressure on the bond yields and spreads. Global factors like Brexit and US elections which had potential for large volatility passed on smoothly without large ramifi cations for Indian market.

In the coming year apart from the global factors, following domestic factors will play a key role in fi xed income markets:

• Liquidity: Liquidity will drive short end rates and eventually drive decisions leading to market interventions and CRR cuts. RBI has focused now on neutral liquidity stance and providing liquidity to system, which will bode well short end rates.

• Infl ation: Infl ation numbers will determine future course of action for RBI and remains a critical variable for policy. We expect infl ation to pick up to 4.5% level in the ease in second half of FY 2017-18.

• Growth: GDP growth numbers as well as industrial activity will also determine the decision on policy.

• Fiscal defi cit: Fiscal defi cit and government spending will determine the government borrowing and crowding out in interest rate curve. We expect prudence in government spending and prospect of spending on infrastructure to pick up which will crowd in private investment as well.

• Current Account Defi cit: Current Account Defi cit determines how the pressure on currency works and effective management of forex reserves.

• Currency levels: Level of INR will determine how the central bank reacts to the situation on the global crisis etc.

2. BRIEF BACKGROUND OF SPONSORS, BOARD OF TRUSTEES AND ASSET MANAGEMENT COMPANY

a. Sponsor

HSBC Mutual Fund is sponsored by HSBC Securities and Capital Markets (India) Private Limited (HSCI). The Sponsor is the Settler of the Mutual Fund Trust. The Sponsor has entrusted a sum of Rs. 1,00,000/- (Rupees One Lakh only) to the Trustee as the initial contribution towards the corpus of the Mutual Fund.

HSCI offers integrated investment banking services, securities and corporate fi nance & advisory. HSCI is a member of the Bombay Stock Exchange Limited and National Stock Exchange (capital and derivative market segments). HSCI holds 100% of the paid up equity share capital of HSBC Asset Management (India) Private Limited.

b. HSBC Mutual Fund

HSBC Mutual Fund (“the Mutual Fund” or “the Fund”) has been constituted as a Trust in accordance with the provisions of the Indian Trusts Act, 1882 (2 of 1882) vide a Trust Deed dated February 7, 2002 with

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HSBC Equity Fund 1


HSBC Securities and Capital Markets (India) Private Limited, as the Sponsor and the Board of Individual Trustees. The Trustee has entered into an Investment Management Agreement dated February 7, 2002 with HSBC Asset Management (India) Private Limited (AMC) to function as the Investment Manager for all the schemes of the Fund. The Fund was registered with SEBI vide registration number MF/046/02/5 dated May 27, 2002.

The Trust has been formed for the purpose of pooling of capital from the public for collective investment in securities for the purpose of providing facilities for participation by persons as benefi ciaries in such investments and in the profi ts / income arising therefrom.

c. Board of Trustees (the Trustees)

The Board of Trustees is the exclusive owner of the Trust Fund and holds the same in trust for the benefi t of the unit holders. The Trustees have been discharging their duties and carrying out the responsibilities as provided in the SEBI (Mutual Funds) Regulations, 1996 and the Trust Deed. The Trustees seek to ensure that the Fund and the schemes fl oated there under are managed by the AMC in accordance with the Trust Deed, the said Regulations, directions and guidelines issued by the SEBI, the Stock Exchanges, the Association of Mutual Funds in India and other regulatory agencies.

d. Asset Management Company (the AMC)

HSBC Asset Management (India) Private Limited (the Investment Manager or the AMC) is a private limited company incorporated under the Companies Act, 1956 on December 12, 2001 having its Registered Offi ce at 16, V. N. Road, Fort, Mumbai 400 001. HSBC Asset Management (India) Private Limited has been appointed as the Asset Management Company of HSBC Mutual Fund by the Trustee vide Investment Management Agreement (IMA) dated February 7, 2002 and executed between the Trustees and the AMC. SEBI approved the AMC to act as the Investment Manager of the Fund vide its letter No. MFD/BC/163/2002 dated May 27, 2002. The paid-up equity share capital of the AMC is Rs. 61.59 crores. The AMC is registered as a Portfolio Manager under the SEBI (Portfolio Managers) Regulations, 1993 vide registration no. INP000001322. The AMC also offers non-binding Advisory services to offshore funds under the mutual fund license.

HSBC Securities and Capital Markets (India) Private Limited holds 100% of the paid up equity share capital of the AMC.

3. INVESTMENT OBJECTIVE OF THE SCHEMES The investment objective of the respective schemes has been provided above under the heading “Scheme

Performance, Future Outlook and Operation of the Scheme” (Refer Section 1).

4. SIGNIFICANT ACCOUNTING POLICIES The Signifi cant Accounting Policies form part of the Notes to the Accounts annexed to the Balance Sheet

of the Schemes in the Full Annual Report. The accounting policies are in accordance with Securities Exchange Board of India (Mutual Funds) Regulations 1996.

5. UNCLAIMED DIVIDENDS & REDEMPTIONS Summary of number of investors & corresponding amount Scheme-wise as on March 31, 2017:

Scheme

Unclaimed Dividend Unclaimed Redemption

Amount (Rs.) No. of Investors


HSBC Equity Fund 12801781.29 1,077 7672580.56 198

6. INVESTOR SERVICESThe number of offi cial points of acceptance of transactions is 197 locations. In addition to the offi ces of the Registrar & Transfer agents, the AMC has Investor Service Centres in 8 locations at its own offi ces - namely Mumbai, New Delhi, Kolkata, Bangaluru, Pune, Ahmedabad, Hyderabad and Chennai. With a view to enhance

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1 HSBC Equity Fund


customer convenience, the AMC has the facility of priority based servicing to key distributors through the enhancement of the Interactive Voice Reponses. The AMC has a single Toll Free number which can be dialed from anywhere in India. The call centre service is being managed by the Registrar and Transfer Agents.

On the distribution front, the number of empanelled distributors was 370 as on March 31, 2017. During the year, the AMC initiated tie-ups for online distribution of the Mutual Fund’s schemes with several channel partners taking the total number of such tie-ups to 40.

7. DETAILS OF INVESTOR GRIEVANCE REDRESSALThe details of the redressal of investor complaints received against HSBC Mutual Fund during April 2016 - March 2017 are as follows:

2016-2017

Com-plaintCode

Type of complaint (a) No. of complaints pending at the

beginning of the year

(b) No. of com-plaints

receivedduring

theyear

Action on (a) and (b)

Resolved Non Actiona-

ble*

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months

I A Non receipt of Dividend on Units

0 6 4 2 0 0 0 0 0 0 0

I B Interest on delayed payment of Dividend

0 0 0 0 0 0 0 0 0 0 0

I C Non receipt of Redemption Proceeds

0 6 5 0 0 0 0 1 0 0 0

I D Interest on delayed payment of Redemption

0 0 0 0 0 0 0 0 0 0 0

II A Non receipt of Statement of Account/Unit Certifi cate

0 0 0 0 0 0 0 0 0 0 0

II B Discrepancy in Statement of Account

0 0 0 0 0 0 0 0 0 0 0

II C Data corrections in Investor details**

1 34 35 0 0 0 0 0 0 0 0

II D Non receipt of Annual Report / Abridged Summary

0 0 0 0 0 0 0 0 0 0 0

III A Wrong switch between Schemes

0 0 0 0 0 0 0 0 0 0 0

III B Unauthorized switch between Schemes

0 0 0 0 0 0 0 0 0 0 0

III C Deviation from Scheme attributes

0 0 0 0 0 0 0 0 0 0 0

III D Wrong or excess charges / load

0 0 0 0 0 0 0 0 0 0 0

III E Non updation of changes viz. address, PAN, bank details, nomination, etc

0 6 6 0 0 0 0 0 0 0 0

IV Others 0 21 20 0 0 0 0 1 0 0 0

Total 1 73 70 2 0 0 0 2 0 0 0

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HSBC Equity Fund 1


Summary of Complaints for FY 2016-17

Particulars Count

Total complaints received 73

Total number of folios 156459

% of complaints against the folio 0.046%

# active folios** As per AMFI Best Practice Guidelines Circular No.25/2011-12 for Revisions in the Guidelines on

Standardization of Complaints / Grievances Reporting Procedure. If “Others” include a type of complaint which is more than 10% of overall complaints, then such a reason should be provided separately. Hence data corrections in Investor Details is included as a separate category

* Non actionable means the complaint is incomplete / outside the scope of the mutual fund

8. INVESTOR EDUCATION INITIATIVESThe Fund undertook various investor education and awareness initiatives related to investments in mutual funds throughout India in English / Hindi and Regional languages via mass media. The Fund conducted roadshows in various cities i.e. Jaipur, Chennai, Bangaluru, Hyderabad, Ludhiana and Mumbai to help investors understand Asset Allocation and benefi ts of investing in equity, published investor awareness advertorial in magazines like Outlook Money, Outlook, Mutual Funds Insights, India Today, Open magazine and Caravan magazine.

9. PROXY VOTING POLICYIn terms of SEBI Circular no. SEBI/IMD/CIR No. 18/198647/2010 dated March 15, 2010, the Fund has adopted Proxy Voting Policy and Procedures for exercising voting rights in respect of securities held by the Schemes.

The summary of the votes casted in the general meetings of the Investee companies,by the AMC for and on behalf of the Schemes of the Fund, for the fi nancial year 2016-17 is provided below:

Quarter Total no. of resolutions

Break-up of vote decision

For Against Abstained

June 2016 124 101 0 23

September 2016 1,005 880 27 98

December 2016 58 42 9 7

March 2017 39 33 3 3

Total 1,226 1,056 39 131

In terms of the requirement of SEBI Circular no. CIR/IMD/DF/05/2014 dated March 24, 2014 and SEBI/HO/IMD/DF2/CIR/P/2016/68 dated August 10, 2016; the AMC has obtained certifi cate from M/s. M. P. Chitale & Co., Chartered Accountants, who is acting as a Scrutinizer, on the voting report for the FY 2016-17. The certifi cate dated April 20, 2017 issued by M/s. M. P. Chitale & Co., is available on the website of the AMC as part of the full Annual Report.

Unit holders can refer to the full Annual Report for complete details of actual exercise of votes in the general meetings of the investee companies for the fi nancial year 2016-17 or log on to our website at www.assetmanagement.hsbc.com/in.

10. STATUTORY DETAILSa) The Sponsors are not responsible or liable for any loss resulting from the operation of the Schemes of

the Fund beyond initial contribution of Rs. 1 lakh for setting up the Fund.

b) The price and redemption value of the units, and income from them, can go up as well as down with fl uctuations in the market value of its underlying investments.

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c) Full Annual Report shall be disclosed on the website at www.assetmanagement.hsbc.com/in and shall be available for inspection at the Head Offi ce of the Mutual Fund. Present and prospective unit holders can obtain copy of the Trust Deed, the full Annual Report of the Scheme(s), the Annual Report of HSBC Asset Management (India) Private Limited and the text of the relevant Scheme(s) at a price.

11. ACKNOWLEDGEMENTSThe Trustees wish to thank the Unit holders of the Schemes for their support throughout the year and also thank the Government of India, the Securities and Exchange Board of India (SEBI), the Reserve Bank of India (RBI) and the Association of Mutual Funds in India (AMFI) for the guidance provided by them. The Trustees also appreciate the services provided by the Registrar and Transfer Agent, Fund Accountant, Custodian, Bankers, Distributors and Brokers. The guidance and services provided by the Auditors and advocates and the ebullience, sincerity and dedication of the employees of HSBC Asset Management (India) Private Limited is also appreciated.

The Trustees look forward to the continued support of everyone.

For and on behalf of the Board of Trustees of HSBC Mutual Fund

Sd/-

N. P. Gidwani

Chairman

MumbaiJuly 18, 2017.


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HSBC Equity Fund 1

To the Board of Trustees of

HSBC Mutual Fund - HSBC Equity Fund

Report on the Financial StatementsWe have audited the accompanying fi nancial statements of HSBC Equity Fund (the ‘Scheme’), which comprise the balance sheet as at 31 March 2017, the related revenue account and the cash fl ow statement for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, annexed thereto.

Management’s responsibility for the Financial StatementsThe Board of Trustees to the HSBC Mutual Fund (the ‘Board of Trustees’) and HSBC Asset Management (India) Private Limited (the ‘AMC’), being the investment manager to HSBC Mutual Fund (the ‘Fund’) (collectively referred as ‘Management’), are responsible for the preparation of these fi nancial statements that give a true and fair view of the fi nancial position and fi nancial performance of the Scheme in accordance with the accounting policies and standards specifi ed in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, as amended (the ‘Regulations’) and the accounting standards issued by the Institute of Chartered Accountants of India (the ‘ICAI’), to the extent applicable. This responsibility includes maintenance of adequate accounting records for safeguarding of the assets of the Scheme and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal fi nancial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the fi nancial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor’s ResponsibilityOur responsibility is to express an opinion on these fi nancial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the ICAI. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the fi nancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fi nancial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the fi nancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to preparation and fair presentation of the fi nancial statements, of the Scheme, in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Scheme’s internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Management, as well as evaluating the overall presentation of the fi nancial statements.

We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, and to the best of our information and according to the explanations given to us, the aforesaid fi nancial statements give the information required by the Regulations in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(i) in the case of the balance sheet, of the state of affairs of the Scheme as at 31 March 2017;

(ii) in the case of the revenue account, of the net surplus for the year ended on that date; and

(iii) in the case of the cash fl ow statement, of the cash fl ows of the Scheme for the year ended on that date.

Independent Auditors’ Report

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1 HSBC Equity Fund

Independent Auditors’ Report (Contd...)

Report on other Legal and Regulatory Requirements1) As required by Regulation 55(4) to the Regulations, we report that:

(a) We have obtained all information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of the audit;

(b) The balance sheet and revenue account have been prepared in accordance with the accounting policies and standards specifi ed in the Ninth Schedule of the Regulations.

2) As required by Clause 5(ii)(2) of the Eleventh Schedule of the Regulations, we report that the balance sheet, revenue account and cash fl ow statement are in agreement with the books of account of the Scheme.

For B S R & Co. LLPChartered AccountantsFirm’s Registration No: 101248W/W-100022

Sd/-

Milind RanadePartnerMembership No: 100564

Place : MumbaiDate : July 18, 2017.

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HSBC Equity Fund 1

Rs. in Lakhs

HSBC EQUITY FUNDAs at

March 31, 2017As at

March 31, 2016

LIABILITIES1 Unit Capital 7,764.84 9,085.47 2 Reserves & Surplus2.1 Unit Premium Reserves (10,081.39) (10,382.19)2.2 Unrealised Appreciation Reserve 13,606.79 8,498.63 2.3 Other Reserves 48,607.04 49,509.44 3 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income/Deposits – –4.2 Other Current Liabilities & Provisions 461.94 416.69

TOTAL 60,359.22 57,128.04

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares 58,869.22 55,571.881.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – –1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –

Total Investments 58,869.22 55,571.88 2 Deposits 5.25 9.80 3 Other Current Assets3.1 Cash & Bank Balance 24.07 10.37 3.2 CBLO / Reverse Repo Lending 873.25 1,169.00 3.3 Others 587.43 366.99 4 Deferred Revenue Expenditure

(to the extent not written off)– –

TOTAL 60,359.22 57,128.04

Notes to Accounts – Annexure I

Abridged Balance Sheet as at March 31, 2017

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Abridged Revenue Account for the year ended March 31, 2017

Rs. in Lakhs

HSBC EQUITY FUNDCurrent

Year ended March 31, 2017

Previous Year ended

March 31, 2016

1 INCOME1.1 Dividend 672.09 792.42

1.2 Interest 77.17 112.61

1.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –

1.4 Realised Gains / (Losses) on Interscheme sale of investments – –

1.5 Realised Gains / (Losses) on External sale / redemption of investments

8,574.14 7,095.46

1.6 Realised Gains / (Losses) on Derivative Transactions – –

1.7 Other Income 0.35 0.51

(A) 9,323.75 8,001.00

2 EXPENSES2.1 Management fees 931.59 971.22

2.2 Service tax on Management fees 138.93 135.46

2.3 Transfer agents fees and expenses 72.29 77.90

2.4 Custodian fees 7.08 8.15

2.5 Trusteeship fees 1.27 1.35

2.6 Commission to Agents 222.89 314.83

2.7 Marketing & Distribution expenses – –

2.8 Audit fees 3.47 2.23

2.9 Investor Education Expenses 11.74 12.93

2.10 Other operating expenses 15.75 21.66

2.11 Less: Expenses to be Reimbursed by the Investment Manager – –

(B) 1,405.01 1,545.73

3 NET REALISED GAINS / (LOSSES) FOR THE YEAR (A - B = C) 7,918.74 6,455.27

4 Change in Unrealised Depreciation in value of investments and derivatives (D) – –

5 NET GAINS / (LOSSES) FOR THE YEAR [E = (C+D)] 7,918.74 6,455.27

6 Change in unrealised appreciation in the value of investments and derivatives (F) 5,108.16 (10,735.37)

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 13,026.90 (4,280.10)

7.1 Add: Balance transfer from Unrealised Appreciation Reserve – 10,735.37

7.2 Less: Balance transfer to Unrealised Appreciation Reserve 5,108.16 –

7.3 Add / (Less) : Equalisation (6,696.89) (2,162.44)

7.4 Transfer from Reserve Fund 49,509.44 48,780.52

8 Total 50,731.29 53,073.35

9 Dividend appropriation

9.1 Income Distributed during the year 2,124.25 3,563.91

9.2 Tax on income distributed during the year – –

10 Retained Surplus / (Defi cit) carried forward to Balance sheet

48,607.04 49,509.44


15

HSBC Equity Fund 1

Key Statistics for the year ended March 31, 2017

HSBC EQUITY FUND Current


Previous Year ended

March 31, 2016

1. NAV per unit (Rs.):

Open

Regular Plan Growth Option 141.2682 150.8367

Regular Plan Dividend Option 25.8480 31.5714

Direct Plan - Growth Option 144.7545 153.4636

Direct Plan - Dividend Option 26.6029 32.1591

High





Low





End





2. Closing Assets Under Management (Rs. in Lakhs)

End 59,866 56,722

Average (AAuM)1 58,719 64,633

3. Gross income as % of AAuM2 15.88% 12.38%

4. Expense Ratio:

a. Total Expense as % of AAuM (Including service tax on Management fees) (planwise)

Regular Plan 2.66% 2.61%

Direct Plan 1.95% 1.90%

b. Management Fee as % of AAuM (planwise)



5. Net Income as a percentage of AAuM3 13.49% 9.99%

6. Portfolio turnover ratio4 0.82 1.03

16

1 HSBC Equity Fund

HSBC EQUITY FUND Current


Previous Year ended

March 31, 2016

7. Total Dividend per unit distributed during the year (planwise)

Retail



Corporate



8. Returns (%):

a. Last One Year

Scheme

Regular Plan Growth Option 25.2479 (6.3268)

Direct Plan - Growth Option 26.1425 (5.6600)

Benchmark

Nifty 50** 18.5484 N.A.

S&P BSE 200 N.A. (7.8430)

b. Since Inception

Scheme



Benchmark

Nifty 50** 16.2430 N.A.

S&P BSE 200 N.A. 17.4012

1. AAuM=Average daily net assets

2. Gross income = amount against (A) in the Revenue Account i.e. Income

3. Net income = amount against (C) in the Revenue Account i.e. Net Realised Gains / (Losses) for the year

4. Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year

** Benchmark Changed from S&B BSE 200 to Nifty 50 w.e.f. November,11 2016

Key Statistics for the year ended March 31, 2017 (Contd...)

17

HSBC Equity Fund 1

Notes to Accounts – Annexure ITo the Abridged Balance Sheet and Revenue Account for the Year ended March 31, 2017

HSBC EQUITY FUND

1 Investments: 1.1. It is confi rmed that investments of the Schemes are registered in the name of the Trustees for the

benefi t of the Scheme’s unitholders.

1.2. Open Positions of derivatives as of years ended March 31, 2017 and March 31, 2016 are NIL.

1.3. Investments in Associates and Group Companies:

(Rupees)

Issuer Instrument Type

Amount Aggregate Investments

by all schemes


by all schemes

2017 2016

Shriram Transport Finance Company Ltd.

Corporate Bonds / Debentures

– 1,452,436,300 – 402,773,900

Equities 94,659,583 94,659,583 – 47,680,367

Bharti Airtel Ltd. Equities – 1,025,985 272,462,600 421,271,947

1.4. Open positions of Securities Borrowed and / or Lent by the Scheme as of the years ended March 31, 2017 and March 31, 2016 are NIL.

1.5. NPAs as at years ended March 31, 2017 and March 31, 2016 are NIL.

1.6. Aggregate Unrealised Gain / Loss as at the end of the Financial Years March 31, 2017 and March 31, 2016 and percentage to net assets are as under :

Company Name Amount (Rs.) Percentage to Net Assets

Amount (Rs.) Percentage to Net Assets

2017 2016

Equity Shares

– Appreciation 1,420,865,440 23.73 933,315,831 16.45

– Depreciation 60,186,043 1.01 83,452,629 1.47

1.7. The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2016-2017 (excluding accretion of discount) is Rs. 4,817,105,443 and Rs. 5,855,659,764 respectively being 82.04% and 99.72% of the average daily net assets.

The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2015-2016 (excluding accretion of discount) is Rs. 6,640,530,266 and Rs. 7,262,948,262 respectively being 102.74% and 112.37% of the average daily net assets.

1.8. Non-Traded securities in the portfolio of the Scheme as of the Years ended March 31, 2017 and March 31, 2016 are NIL.

2 Disclosure Under Regulation 25(8) of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 as amended

During the year 2016-17, The Hongkong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid collection/bank charges amounting to Rs. Nil and clearing member charges on derivative transactions amounting to Rs. Nil.

During the year 2015-16, The Hongkong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid collection/bank charges amounting to Rs. Nil and clearing member charges on derivative transactions amounting to Rs. Nil.

18

1 HSBC Equity Fund

Commission paid to Sponsor/AMC and its associates/related parties/group companies

Name of Sponsor / AMC and its associates / related parties / group companies

Nature of Association / Nature of

Relation

Period Covered

Business Given [Rs. In Crores]

% of Total Business

received by the Fund

Commission paid [Rs.]

% of Total commission paid by the

Fund

The Hongkong and Shanghai Banking Corporation Limited

Associate of Investment Manager

2016-2017 10.69 9.47 4,202,846 19.88



Relation

Period Covered


% of Total Business




Fund



2015-2016 13.16 6.52 4,961,813 16.50

Brokerage paid to Sponsor/AMC and its associates/related parties/group companies



relation

Period Covered

Value of Transactions

[Rs. In Crores]

% of total value of

transactions of the fund

Brokerage paid [Rs.]

% of total brokerage

paid by the fund

HSBC Securities and Capital Market (India) Private Limited

Sponsor 2016-2017 18.76 1.76 225,076 1.87



relation

Period Covered


[Rs. In Crores]

% of total value of




paid by the fund


Sponsor 2015-2016 53.37 3.84 640,335 4.03

The brokerage paid was at rates similar to those offered to other brokers / distributors and the Commission / Brokerage paid to related party includes both upfront and trail and hence not comparable with the % of business brought and % of commission paid.

Further, The Hongkong and Shanghai Banking Corporation Limited, an associate of the Sponsor, is on the panel of bankers with whom HSBC Mutual Fund places money on fi xed deposits and enters into reverse repo transactions from time to time at competitive rates.

(i) Any underwriting obligations undertaken by the schemes of the mutual funds with respect to issue of securities associate companies - Nil. (Previous year also Nil)

(ii) Devolvement - Nil. (Previous year also Nil)

(iii) Subscription by the schemes in the issues lead managed by associate companies - Nil. (Previous year also Nil)

(iv) Subscription to any issue of equity or debt on private placement basis where the sponsor or its associate companies have acted as arranger or manager - Nil. (Previous year also Nil)

3 None of the Investors held more than 25% of the total net assets of the Scheme at the years ended March 31, 2017 and March 31, 2016.

Notes to Accounts - Annexure I (Contd...)To the Abridged Balance Sheet and Revenue Account for the Year ended March 31, 2017

19

HSBC Equity Fund 1

4 Unit Capital movement during the years ended March 31, 2017 and March 31, 2016** :

Description 2016-2017Opening Units Subscription Redemption Closing Units Face Value

per unit (Rupees)

Regular Plan Growth Option

14,054,147.391 667,074.951 2,441,971.049 12,279,251.293 10

Regular Plan Dividend Option

61,896,207.796 22,504,997.170 32,158,319.074 52,242,885.892 10

Direct Plan - Growth Option

14,298,056.590 1,803,272.765 3,640,190.810 12,461,138.545 10

Direct Plan - Dividend Option

606,276.584 230,021.500 171,170.707 665,127.377 10

Description 2015–2016Opening Units Subscription Redemption Closing Units Face Value

per unit (Rupees)


16,585,344.452 1,047,143.153 3,578,340.214 14,054,147.391 10


67,296,181.727 40,274,879.752 45,674,853.683 61,896,207.796 10


12,801,065.001 4,328,936.741 2,831,945.152 14,298,056.590 10


499,987.238 162,287.394 55,998.048 606,276.584 10

**Units held by the AMC (Seed Capital) in Direct Plan Growth Option as on 31/03/2017 is 33,261.112 & as on 31/03/2016 is 33,261.112.

5 Previous year fi gures have been re-grouped/re-arranged where necessary.

6 No contingent liabilities for the years ended March 31, 2017 and March 31, 2016.

7 Expenses other than Management Fees are Inclusive of Service Tax where applicable.

8 Other income of Rs. 35,081 represents Exit load (net of service tax) credited to the scheme. (2016: Rs. 51,153 represents Exit load (net of service tax) credited to the scheme & an Old Balance in Redemption Recon written off)

9 Investor Education Awareness In view of the AMFI Best Practices Guidelines Circular No. 56/2015-16, the IEF (Investor Education Fund)

accrual is set aside in a separate bank account and the consolidated balance across all schemes as on March 31, 2017. The break-up of which is as under:

Particulars Amount (Rs. in Lakhs)Opening Balance as on April 01, 2016 –Add: Accrual during FY 2016-17 182Less: Transferred to AMFI 83Less: Payable to AMFI (March 2017 accrual) 8Add: Investment Income FY 2016-17 11Less: Spent during FY 2016-17 58Closing Balance as on March 31, 2017 44

10 The Annual Accounts of the Schemes prepared in accordance with the accounting policies and standards specifi ed in the Ninth Schedule of The Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 has been approved by the Board of Directors of HSBC Asset Management (India) Private Limited and The Board of Trustees of HSBC Mutual Fund at their meetings held on July 17, 2017 and July 18, 2017 respectively. The audit report attached herewith refers to the said Annual Accounts. The aforesaid abridged accounts are an extract of the Annual Accounts and are prepared in accordance with SEBI Circular No. IMD/Cir8/132968/2008 dated July 24, 2008.

Notes to Accounts – Annexure I (Contd...)To the Abridged Balance Sheet and Revenue Account for the Year ended March 31, 2017

20

1 HSBC Equity Fund

Voting Policy and Procedures

In view of SEBI guidelines related to “Role of Mutual Funds in Corporate Governance of Public Listed Companies”, AMIN has formulated its “Policy for Proxy Voting in Public Listed Companies”. The said policy and details of actual exercise of proxy votes along with the summary of votes cast and the auditors certifi cation during the Financial Year 2016–17 is available on its website – http://www.assetmanagement.hsbc.com/in and in full Annual Report for the Financial Year 2016–17.

HSBC Equity Fund 1

Statutory Details & DisclaimersAll returns have been sourced from Mutual Funds India 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 verifi ed 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 specifi c investment objectives, fi nancial situation and the particular needs of any specifi c person who may receive this document. Investors should seek fi nancial 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.

Investors should not invest in the Scheme solely based on the information provided in this document and should read the 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, without 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 INDIA OPPORTUNITIES FUND 3

HSBC India Opportunities FundAn Open-ended Flexi-cap Equity Scheme


1


Dear Investor,






2

3 HSBC INDIA OPPORTUNITIES FUND


Warm regards,

Ravi Menon



3













4








HSBC India Opportunities Fund (HIOF) – an open-ended Flexi-cap Equity Scheme HIOF seeks to generate long term capital growth through investments across all market capitalizations, including small, mid and large cap stocks. It aims to be predominantly invested in equity and equity related securities. However, it could move a signifi cant portion of its assets towards fi xed income securities if the fund manager becomes negative on equity markets.

The net assets of HIOF amounted to Rs. 454.14 crores as at March 31, 2017 as compared to Rs. 464.85 crores as at March 31, 2016. Around 97.51% of the net assets were invested in equities, 3.50% of the net assets were invested in reverse repos / CBLO and (-1.01%) in net current assets as at March 31, 2017.

HIOF is a multi-cap fund with a large-cap bias and we remained invested in a diversifi ed portfolio across capitalization stocks. HIOF outperformed its benchmark S&P BSE200 over the FY 2016-17 by 404bps primarily due to superior stock selection. Selections in sectors like Financials, Materials and Industrials contributed to the outperformance during this period. In terms of allocation, being overweight in Financials and underweight in Telecom have been positive contributors to outperformance.

Date of Inception : 24 February 2004 Absolute Returns

(%)



HSBC India Opportunities Fund - Growth 26.51 19.99 17.56 16.88

S&P BSE 200 (Scheme Benchmark) 22.47 14.17 13.08 13.79

Nifty 50 (Standard Benchmark) 18.55 11.01 11.60 13.13

Rs. 10,000, if invested in HIOF, would have become 12,651 17,276 22,452 77,263


12,247 14,882 18,487 54,407




5







NSE CNX Nifty 18.5%

S&P BSE 100 21.2%

S&P BSE 200 22.5%

S&P BSE 500 24.0%


Source: Bloomberg







6














a. Sponsor



b. HSBC Mutual Fund



7














Scheme




HSBC India Opportunities Fund 3679066.84 349 3213967.36 71



8





2016-2017

Com-plaintCode




receivedduring

theyear



ble*

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 6 4 2 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 6 5 0 0 0 0 1 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


1 34 35 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 6 6 0 0 0 0 0 0 0 0

IV Others 0 21 20 0 0 0 0 1 0 0 0

Total 1 73 70 2 0 0 0 2 0 0 0


9



Particulars Count













June 2016 124 101 0 23

September 2016 1,005 880 27 98

December 2016 58 42 9 7

March 2017 39 33 3 3

Total 1,226 1,056 39 131







10






Sd/-

N. P. Gidwani

Chairman



11


To the Board of Trustees ofHSBC Mutual Fund - HSBC India Opportunities Fund

Report on the Financial StatementsWe have audited the accompanying fi nancial statements of HSBC India Opportunities Fund (the ‘Scheme’), which comprise the balance sheet as at 31 March 2017 and the related revenue account for the year then ended, and a summary of signifi cant accounting policies and other expl anatory information, annexed thereto.





OpinionIn our opinion, and to the best of our information and according to the explanations given to us, the aforesaid fi nancial statements give the information required by the Regulations in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:(i) in the case of the balance sheet, of the state of affairs of the Scheme as at 31 March 2017; and(ii) in the case of the revenue account, of the net surplus for the year ended on that date.

Report on other Legal and Regulatory Requirements1) As required by Regulation 55(4) to the Regulations, we report that: (a) We have obtained all information and explanations which, to the best of our knowledge and belief, were

necessary for the purposes of the audit; (b) The balance sheet and revenue account have been prepared in accordance with the accounting policies

and standards specifi ed in the Ninth Schedule of the Regulations.2) As required by Clause 5(ii)(2) of the Eleventh Schedule of the Regulations, we report that the balance sheet

and revenue account are in agreement with the books of account of the Scheme.


Sd/-




12


Rs. in Lakhs

HSBC INDIA OPPORTUNITIES FUNDAs at

March 31, 2017As at

March 31, 2016

LIABILITIES1 Unit Capital 11,251.70 14,161.06 2 Reserves & Surplus2.1 Unit Premium Reserves (8,846.95) (8,635.72)2.2 Unrealised Appreciation Reserve 11,663.27 5,539.94 2.3 Other Reserves 31,397.19 35,448.45 3 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income/Deposits – –4.2 Other Current Liabilities & Provisions 837.86 370.14

TOTAL 46,303.07 46,883.87

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares 44,273.21 45,491.19 1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – –1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –

Total Investments 44,273.21 45,491.19 2 Deposits 3.11 4.73 3 Other Current Assets3.1 Cash & Bank Balance 86.72 28.37 3.2 CBLO / Reverse Repo Lending 1,591.39 1,121.00 3.3 Others 348.64 238.58 4 Deferred Revenue Expenditure

(to the extent not written off)– –

TOTAL 46,303.07 46,883.87



13



Rs. in Lakhs

HSBC INDIA OPPORTUNITIES FUNDCurrent


Previous Year ended

March 31, 2016


1.2 Interest 71.50 106.99




5,778.90 3,517.99



(A) 6,245.98 4,196.28







2.7 Marketing & Distribution expenses 0.56 0.84

2.8 Audit fees 2.68 1.73



2.11 Less: Expenses to be Reimbursed by the Investment Manager (18.15) –

(B) 1,244.92 1,332.11





7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 11,124.39 (3,487.12)

7.1 Add: Balance transfer from Unrealised Appreciation Reserve – 6,351.29

7.2 Less: Balance transfer to Unrealised Appreciation Reserve 6,123.33 –

7.3 Add / (Less): Equalisation (7,886.42) 3,952.76


8 Total 32,563.09 37,271.91


9.1 Income Distributed during the year 1,165.90 1,823.46

9.2 Tax on income distributed during the year – –


31,397.19 35,448.45


14



HSBC INDIA OPPORTUNITIES FUND Current


Previous Year ended

March 31, 2016


Open





High





Low





End






End 45,414 46,485

Average (AAuM)1 46,588 50,689


4. Expense Ratio:









15



HSBC INDIA OPPORTUNITIES FUND Current


Previous Year ended

March 31, 2016


Retail



Corporate



8. Returns (%):

a. Last One Year

Scheme



Benchmark

S&P BSE 200** 22.4731 N.A.

S&P BSE 500 N.A. (7.7960)

b. Since Inception

Scheme



Benchmark

S&P BSE 200** 13.7930 N.A.

S&P BSE 500 N.A. 13.2641

1. AAuM=Average daily net assets2. Gross income = amount against (A) in the Revenue Account i.e. Income3. Net income = amount against (C) in the Revenue Account i.e. Net Realised Gains / (Losses) for the year4. Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year

** Change in Benchmark from S&P BSE 500 to S&P BSE 200 wef 11 Nov 2016

16



HSBC INDIA OPPORTUNITIES FUND1 Investments:

1.1. It is confi rmed that investments of the Schemes are registered in the name of the Trustees for the benefi t of the Scheme’s unitholders.


1.3. Investments in Associates and Group Companies.

(Rupees)



by all schemes


by all schemes

2017 2016



– 1,452,436,300 – 402,773,900

Equities – 94,659,583 – 47,680,367

Bharti Airtel Ltd. Equities – 1,025,985 141,238,418 421,271,947

1.4. Open position of Securities Borrowed and / or Lent by the Scheme as of fi nancial years ended 2017 and 2016 are NIL.

1.5. The NPAs as on March 31, 2017 and March 31, 2016 are NIL.

1.6. Aggregate Unrealised Gain / Loss as at the end of the Financial Years March 31, 2017 and March 31, 2016 are as under :

Security Category Amount (Rs.) Percentage to Net Assets


2017 2016

Equity Shares

– Appreciation 1,237,575,093 27.25 676,595,912 14.56

– Depreciation 71,248,018 1.57 122,601,583 2.64

1.7. The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2016-17 (excluding accretion of discount) is Rs. 1,681,371,410 and Rs. 2,993,446,387 respectively being 36.09% and 65.25% of the average daily net assets.

The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2015-16 (excluding accretion of discount) is Rs. 4,037,913,895 and Rs. 3,585,156,360 respectively being 79.66% and 70.73% of the average daily net assets.

1.8. Non-Traded securities in the portfolio as on March 31, 2017 and March 31, 2016 are Nil.

17



Details of amounts paid to associates in terms of Regulation 25 (8) are as follows :




Relation

Period Covered


% of Total Business




Fund


Associate of the InvestmentManager

2016-2017 53.50 43.32 19,197,398 54.44



Relation

Period Covered


% of Total Business




Fund


Associate of the InvestmentManager

2015-2016 83.08 31.50 20,274,528 40.70

Brokerage paid to Sponsor / AMC and its associates / related parties / group companies



relation

Period Covered


[Rs. In Crores]

% of total value of



% of total brokerage paid by the

fund


Sponsor 2016-2017 2.21 0.47 26,515 0.50



relation

Period Covered


[Rs. In Crores]

% of total value of




fund


Sponsor 2015-2016 6.40 0.84 76,971 0.90




18







4 Unit Capital movement during the years ended March 31, 2017 and March 31, 2016 :

Description

2016-2017

Opening Units Subscription Redemption Closing Units Face Value per unit (Rupees)


41,711,714.841 11,489,195.576 20,855,342.557 32,345,567.860 10


98,605,873.865 11,164,695.313 31,302,013.300 78,468,555.878 10


1,019,631.010 690,362.046 330,702.177 1,379,290.879 10


273,348.554 112,451.027 62,184.309 323,615.272 10

Description

2015–2016



38,777,910.214 19,254,153.636 16,320,349.009 41,711,714.841 10


86,641,081.099 57,066,737.471 45,101,944.705 98,605,873.865 10


250,484.953 924,391.961 155,245.904 1,019,631.010 10


426,947.991 133,649.270 287,248.707 273,348.554 10

** Units held by the AMC (Seed Capital) in Direct Plan Growth Option as on 31/03/2017 is 76,942.845 & as on 31/03/2016 is 76,942.845.

5 Previous years fi gures have been re-grouped/re-arranged where appropriate.



8 Other income of Rs. 3,529.34 represents Exit load (net of service tax) credited to the scheme. (2016:Rs. 9,925.82 represents Exit load (net of service tax) credited to the scheme.)


19


9 Merger of HSBC Dividend Yield Equity Fund (HDYEF) into HSBC India Opportunities Fund (HIOF)

The Board of Directors of HSBC Asset Management (India) Private limited and Board of Trustees of HSBC Mutual Fund have approved the merger of HDYEF into HIOF in their meetings held on February 01, 2017 and February 02, 2017 respectively. SEBI has also granted it’s no objection to the aforesaid merger vide its letter dated April 03, 2017. Accordingly, a notice was published on May, 24, 2017 giving an option to the unitholders of HDYEF to exit during the period from May 31, 2017 to June 30, 2017 at the applicable NAV, without payment of exit load, if any and sale of units in the HDYEF was suspended effective from May 31, 2017. The HDYEF was merged into HIOF and ceased to exists from July 01, 2017. The unit holders of HDYEF who have not exercised the exit option during the aforesaid exit window have been allotted units of HIOF at the NAV declared as on the close of business hours on June 30, 2017.

10 Investor Education Awareness

In view of the AMFI Best Practices Guidelines Circular No. 56/2015-16, the IEF (Investor Education Fund) accrual is set aside in a separate bank account and the consolidated balance across all schemes as on March 31, 2017. The break-up of which is as under:

Particulars Amount (Rs. in Lakhs)

Opening Balance as on April 01, 2016 –

Add: Accrual during FY 2016-17 182

Less: Transferred to AMFI 83

Less: Payable to AMFI (March 2017 accrual) 8

Add: Investment Income FY 2016-17 11

Less: Spent during FY 2016-17 58

Closing Balance as on March 31, 2017 44



20





Statutory Details & Disclaimers

All returns have been sourced from Mutual Funds India 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 verifi ed 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 specifi c investment objectives, fi nancial situation and the particular needs of any specifi c person who may receive this document. Investors should seek fi nancial 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.




HSBC MIDCAP EQUITY FUND 16

HSBC Midcap Equity FundAn Open-ended Diversified Equity Scheme


1


Dear Investor,






2

16 HSBC MIDCAP EQUITY FUND


Warm regards,

Ravi Menon



3













4








HSBC Midcap Equity Fund (HMEF) – an open-ended diversifi ed Equity SchemeHMEF 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 fi xed income securities if the fund manager becomes negative on the Indian equity markets.

The net assets of HMEF amounted to Rs. 429.86 crores as at March 31, 2017 as compared to Rs. 360.31 crores as at March 31, 2016. Around 99.16 % of the net assets were invested in equities, 1.13% of the net assets were invested in reverse repos / CBLO and (-0.29%) in net current assets as at March 31, 2017.

HMEF has done well in terms of outperformance v/s its benchmark due to stock selection across various sectors for long term periods. The focus on reasonable growth oriented companies available at attractive valuations (price to book ratio / return on equity) paid off over longer periods of outperformance v/s benchmark. HMEF continues to be overweight in Auto Ancillary, Agro & Specialty Chemicals, Capital Goods, Financials, Industrials and underweight in FMCG sector.

Date of Inception : 19 May 2005 Absolute Returns

(%)



HSBC Midcap Equity Fund - Growth 35.35 30.08 21.82 14.39

S&P BSE Midcap (Scheme Benchmark) 32.75 25.76 17.29 NA


Rs. 10,000, if invested in HMEF, would have become 13,535 22,011 26,823 47,213

Rs. 10,000, if invested in S&P BSE Midcap, would have become

13,275 19,890 22,193 NA




5


NA means not available. BSE vide its notifi cation dated April 10, 2015 have notifi ed change in the index composition of S&P BSE Midcap Index. As a result returns for the said benchmark are different when compared to the historically published returns. The corresponding benchmark returns for inception of the scheme has not been provided, as the historical index data for S&P BSE Midcap Index is available only from September 16, 2005 whereas the inception date of the scheme is May 19, 2005.






NSE CNX Nifty 18.5%

S&P BSE 100 21.2%

S&P BSE 200 22.5%

S&P BSE 500 24.0%


Source: Bloomberg




The budget document that was presented in early February provides a good medium term policy direction for the economy. Occasionally the policy actions can serve up a few bumps and jolts but over the medium term, across different governments, there is a thread of continuity connecting many key economic policies such as in the case of this year’s union budget. We, in our investment process, prefer to take comfort in


6


these threads of continuity and remain constructive on the India growth story. This makes us positive on the Indian equity markets over the medium to long term.














a. Sponsor



7



b. HSBC Mutual Fund

HSBC Mutual Fund (“the Mutual Fund” or “the Fund”) has been constituted as a Trust in accordance with the provisions of the Indian Trusts Act, 1882 (2 of 1882) vide a Trust Deed dated February 7, 2002 with HSBC Securities and Capital Markets (India) Private Limited, as the Sponsor and the Board of Individual Trustees. The Trustee has entered into an Investment Management Agreement dated February 7, 2002 with HSBC Asset Management (India) Private Limited (AMC) to function as the Investment Manager for all the schemes of the Fund. The Fund was registered with SEBI vide registration number MF/046/02/5 dated May 27, 2002.












SchemeUnclaimed Dividend Unclaimed Redemption



HSBC Midcap Equity Fund 2730524.06 390 2218703.18 81


8


6. INVESTOR SERVICESThe number of offi cial points of acceptance of transactions is 197 locations. In addition to the offi ces of the Registrar & Transfer agents, the AMC has Investor Service Centres in 8 locations at its own offi ces - namely Mumbai, New Delhi, Kolkata, Bangaluru, Pune, Ahmedabad, Hyderabad and Chennai. With a view to enhance customer convenience, the AMC has the facility of priority based servicing to key distributors through the enhancement of the Interactive Voice Reponses. The AMC has a single Toll Free number which can be dialed from anywhere in India. The call centre service is being managed by the Registrar and Transfer Agents.



2016-2017

Com-plaintCode




receivedduring

theyear



ble*

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 6 4 2 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 6 5 0 0 0 0 1 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


1 34 35 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


9


2016-2017

Com-plaintCode




receivedduring

theyear



ble*

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 6 6 0 0 0 0 0 0 0 0

IV Others 0 21 20 0 0 0 0 1 0 0 0

Total 1 73 70 2 0 0 0 2 0 0 0


Particulars Count













June 2016 124 101 0 23

September 2016 1,005 880 27 98

December 2016 58 42 9 7

March 2017 39 33 3 3

Total 1,226 1,056 39 131


10











Sd/-

N. P. Gidwani

Chairman



11



HSBC Mutual Fund - HSBC Midcap Equity Fund

Report on the Financial StatementsWe have audited the accompanying fi nancial statements of HSBC Midcap Equity Fund (the ‘Scheme’), which comprise the balance sheet as at 31 March 2017, the related revenue account and the cash fl ow statement for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, annexed thereto.










12








Sd/-



13


Rs. in Lakhs

HSBC MIDCAP EQUITY FUNDAs at

March 31, 2017As at

March 31, 2016

LIABILITIES1 Unit Capital 11,170.04 12,380.692 Reserves & Surplus2.1 Unit Premium Reserves 2,213.63 3,485.442.2 Unrealised Appreciation Reserve 11,514.23 3,568.262.3 Other Reserves 18,146.21 16,555.573 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income/Deposits – –4.2 Other Current Liabilities & Provisions 200.11 401.14

TOTAL 43,244.22 36,391.10

ASSETS – –1 Investments1.1 Listed Securities:1.1.1 Equity Shares 42,631.61 35,839.471.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – –1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –

Total Investments 42,631.61 35,839.472 Deposits 1.40 3.023 Other Current Assets3.1 Cash & Bank Balance 23.21 1.613.2 CBLO / Reverse Repo Lending – 181.593.3 Others 588.00 365.414 Deferred Revenue Expenditure – –

(to the extent not written off)

TOTAL 43,244.22 36,391.10



14



Rs. in Lakhs

HSBC MIDCAP EQUITY FUNDCurrent


Previous Year ended

March 31, 2016

1 INCOME1.1 Dividend 368.14 673.891.2 Interest 31.99 39.961.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of

investments4,792.45 4,694.89

1.6 Realised Gains / (Losses) on Derivative Transactions – –1.7 Other Income 0.11 0.15

(A) 5,192.69 5,408.892 EXPENSES2.1 Management fees 593.92 533.252.2 Service tax on Management fees 88.68 74.692.3 Transfer agents fees and expenses 48.64 46.312.4 Custodian fees 4.81 4.892.5 Trusteeship fees 0.81 0.802.6 Commission to Agents 309.18 324.902.7 Marketing & Distribution expenses – 1.812.8 Audit fees 2.37 1.202.9 Investor Education Expenses 7.86 7.642.10 Other operating expenses 8.34 12.642.11 Less: Expenses to be Reimbursed by the Investment Manager (29.96) –

(B) 1,034.65 1,008.13

3 NET REALISED GAINS / (LOSSES) FOR THE YEAR (A – B = C) 4,158.04 4,400.76

4 Change in Unrealised Depreciation invalue of investments and derivatives (D) – –

5 NET GAINS / (LOSSES) FOR THE YEAR [E = (C + D)] 4,158.04 4,400.76

6 Change in unrealised appreciation inthe value of investments and derivatives (F) (7,945.97) 5,370.88

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) (3,787.93) 9,771.64

7.1 Add: Balance transfer from Unrealised Appreciation Reserve 7,945.97 –7.2 Less: Balance transfer to Unrealised Appreciation Reserve – 5,370.887.3 Add / (Less): Equalisation (1,804.50) 1,098.567.4 Transfer from Reserve Fund 16,555.57 12,412.07

8 Total 18,909.11 17,911.39

9 Dividend appropriation9.1 Income Distributed during the year 762.90 1,355.829.2 Tax on income distributed during the year – –10 Retained Surplus / (Defi cit) carried forward to

Balance sheet18,146.21 16,555.57


15



HSBC MIDCAP EQUITY FUND Current


Previous Year ended

March 31, 2016


Open

Growth Option 36.4435 37.4445

Dividend Option 17.0700 20.0184



High





Low





End






End 42,986 36,031

Average (AAuM)1 39,287 38,330


4. Expense Ratio:

a. Total Expense as % of AAuM (including service tax on Management fees ) (planwise)








16



HSBC MIDCAP EQUITY FUND Current


Previous Year ended

March 31, 2016


Retail


Direct Plan - Dividend Option 1.75 –

Corporate


Direct Plan - Dividend Option 1.75 –

8. Returns (%):

a. Last One Year

Scheme

Growth Option 35.3539 (2.6661)


Benchmark

S&P BSE Midcap Index 32.7499 0.2517

b. Since Inception

Scheme



Benchmark

S&P BSE Midcap Index 10.8077 8.9255

1. AAuM=Average daily net assets.2. Gross income = amount against (A) in the Revenue account i.e. Income.3. Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the year.4. Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year.

17



HSBC MIDCAP EQUITY FUND

1 Investments: 1.1. It is confi rmed that investments of the Schemes are registered in the name of the Trustees for the

benefi t of the Scheme’s unitholders.


1.3. Investments in Associates and Group Companies as of years ended March 31, 2017 and March 31, 2016 are NIL.


1.5. NPAs as at Years ended March 31, 2017 and March 31, 2016 are NIL.

1.6. Aggregate Unrealised Gain / Loss as at the end of the Financial years March 31, 2017 and March 31, 2016 are as under :

Security Category Amount (Rupees)

Percentage to Net Assets

Amount (Rupees)


2017 2016

Equity Shares

– Appreciation 1,409,769,112 32.80 779,701,441 21.64

– Depreciation 258,346,442 6.01 422,875,480 11.74

1.7. The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2016 - 2017 (excluding accretion of discount) is Rs. 1,176,145,124 and Rs. 1,770,798,009 respectively being 29.94% and 45.07% of the average daily net assets.

The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2015 - 2016 (excluding accretion of discount) is Rs. 2,165,688,524 and Rs. 2,089,384,566 respectively being 56.50% and 54.51% of the average daily net assets.

1.8. Non-Traded securities in the portfolio of the Scheme as of the years ended March 31, 2017 and March 31, 2016 are NIL.




Name of Sponsor/AMC and its associates / related parties / group companies


Relation

Period Covered


% of Total Business received by the Fund



Fund



2016-2017 100.28 67.62 15,132,500 54.27



Relation

Period Covered


% of Total Business




Fund



2015-2016 69.62 40.43 13,033,279 42.16

18



Name of Sponsor /AMC and its associates / related parties / group companies

Nature of Association /Nature of

relation

Period Covered


[Rs. In Crores]

% of total value of




paid by the fund


Sponsor 2016-2017 – – – –



relation

Period Covered


[Rs. In Crores]

% of total value of


"Brokerage paid

[Rs.]“(on accrual basis)“"


paid by the fund


Sponsor 2015-2016 – – – –







3 None of the Investors held more than 25% of the total net assets of the Scheme at the year ended March 31, 2017 and March 31, 2016.


Description

2016-2017


Growth Option 60,015,072.936 24,366,468.574 30,262,335.299 54,119,206.211 10

Dividend Option 47,674,873.624 11,627,491.175 15,843,977.997 43,458,386.802 10


15,888,452.518 2,423,946.434 4,432,792.649 13,879,606.303 10


228,462.529 368,903.382 354,122.150 243,243.761 10


19


Description

2015-2016


Growth Option 53,719,887.361 26,870,376.822 20,575,191.247 60,015,072.936 10

Dividend Option 46,725,476.045 19,022,459.117 18,073,061.538 47,674,873.624 10


17,397,033.394 6,942,729.095 8,451,309.971 15,888,452.518 10


124,796.316 213,403.953 109,737.740 228,462.529 10

** Units held by the AMC (Seed Capital) in Direct Plan Growth Option as on 31/03/2017 is 129,937.630 and as on 31/03/2016 is 129,937.630

5 Previous year’s fi gures have been re–grouped/re-arranged where appropriate.

6 No contingent liabilities for the year ended March 31, 2017 and March 31, 2016.


8 Other Income of Rs. 11,196 (2016: Rs. 14,542) represents Exit load (net of service tax) credited to the scheme .



Particulars Amount (in Rs. Lacs)










20










HSBC INFRASTRUCTURE FUND 14

HSBC Infrastructure Equity Fund(Formerly HSBC Progressive Themes Fund)An Open-ended Equity Scheme


1


Dear Investor,






2

14 HSBC INFRASTRUCTURE FUND


Warm regards,

Ravi Menon



3













4








HSBC Infrastructure Equity Fund (HIEF) – an open-ended equity SchemeHIEF seeks to generate long term capital appreciation from an actively managed portfolio of equity and equity related securities by investing predominantly in equity and equity related securities of companies engaged in or expected to benefi t from growth and development of Infrastructure in India.

The net assets of HIEF amounted to Rs. 126.90 crores as at March 31, 2017 as compared to Rs. 105.88 crores as at March 31, 2016. Around 99.67% of the net assets were invested in equities, 1.06% of the net assets were invested in reverse repos / CBLO and (-0.73%) in net current assets as at March 31, 2017.

HIEF is a theme based fund with focus on infrastructure segment. During the FY 2016-17, the fund performed better than diversifi ed benchmark like Nifty while underperformed BSE Infrastructure Index. With government focus on roads, railways, power, defence, housing, infrastructure theme fund like HIEF is expected to do well going forward.


(%)



HSBC Infrastructure Equity Fund - Growth 32.76 23.80 12.80 6.76

S&P BSE India Infrastructure (Scheme Benchmark) 40.59 NA NA NA


Rs. 10,000, if invested in HIEF, would have become 13,276 18,975 18,261 12,048

Rs. 10,000, if invested S&P BSE India Infrastructure, would have become

14,059 NA NA NA



NA – Not available. The benchmark of the scheme was changed from S&P BSE 200 to S&P BSE India Infrastructure Index with effect from 11th November, 2016 as a more suitable benchmark was identifi ed which better matched the portfolio strategy. There has been no change to investment management of the scheme. Since, S&P BSE India Infrastructure Index was launched on May 19, 2014 and the historic index data prior to the said date is not available, wherever scheme’s corresponding benchmark returns are not available, the same has not been provided.


5







NSE CNX Nifty 18.5%

S&P BSE 100 21.2%

S&P BSE 200 22.5%

S&P BSE 500 24.0%


Source: Bloomberg








6













a. Sponsor HSBC Mutual Fund is sponsored by HSBC Securities and Capital Markets (India) Private Limited (HSCI).

The Sponsor is the Settler of the Mutual Fund Trust. The Sponsor has entrusted a sum of Rs. 1,00,000/- (Rupees One Lakh only) to the Trustee as the initial contribution towards the corpus of the Mutual Fund.


b. HSBC Mutual Fund HSBC Mutual Fund (“the Mutual Fund” or “the Fund”) has been constituted as a Trust in accordance with

the provisions of the Indian Trusts Act, 1882 (2 of 1882) vide a Trust Deed dated February 7, 2002 with HSBC Securities and Capital Markets (India) Private Limited, as the Sponsor and the Board of Individual Trustees. The Trustee has entered into an Investment Management Agreement dated February 7, 2002 with HSBC Asset Management (India) Private Limited (AMC) to function as the Investment Manager for all the schemes of the Fund. The Fund was registered with SEBI vide registration number MF/046/02/5 dated May 27, 2002.



7












Scheme




HSBC Infrastructure Equity Fund 1064123.00 287 7819277.56 389





8


2016-2017

Com-plaintCode

Type of complaint (a) No. of complaints

pending at the


(b) No. of complaintsreceivedduring

theyear



ble*

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 6 4 2 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 6 5 0 0 0 0 1 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


1 34 35 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 6 6 0 0 0 0 0 0 0 0

IV Others 0 21 20 0 0 0 0 1 0 0 0

Total 1 73 70 2 0 0 0 2 0 0 0


Particulars Count








9






Break-up of vote decisionFor Against Abstained

June 2016 124 101 0 23

September 2016 1,005 880 27 98

December 2016 58 42 9 7

March 2017 39 33 3 3

Total 1,226 1,056 39 131




the Fund beyond initial contribution of Rs. 1 lakh for setting up the Fund. b) The price and redemption value of the units, and income from them, can go up as well as down with

fl uctuations in the market value of its underlying investments.c) Full Annual Report shall be disclosed on the website at www.assetmanagement.hsbc.com/in and shall

be available for inspection at the Head Offi ce of the Mutual Fund. Present and prospective unit holders can obtain copy of the Trust Deed, the full Annual Report of the Scheme(s), the Annual Report of HSBC Asset Management (India) Private Limited and the text of the relevant Scheme(s) at a price.




Sd/-

N. P. GidwaniChairman



10



HSBC Mutual Fund - HSBC Infrastructure Equity Fund (formerly HSBC Progressive Themes Fund)

Report on the Financial StatementsWe have audited the accompanying fi nancial statements of HSBC Infrastructure Equity Fund (formerly HSBC Progressive Themes Fund) (the ‘Scheme’), which comprise the balance sheet as at 31 March 2017 and the related revenue account for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, annexed thereto.






(i) in the case of the balance sheet, of the state of affairs of the Scheme as at 31 March 2017; and

(ii) in the case of the revenue account, of the net surplus for the year ended on that date.


11






2) As required by Clause 5(ii)(2) of the Eleventh Schedule of the Regulations, we report that the balance sheet and revenue account are in agreement with the books of account of the Scheme.


Sd/-



12


Rs. in Lakhs

HSBC INFRASTRUCTURE EQUITY FUND

As at March 31, 2017


LIABILITIES1 Unit Capital 6,543.54 7,286.82 2 Reserves & Surplus2.1 Unit Premium Reserves (9,893.78) (10,956.68)2.2 Unrealised Appreciation Reserve 2,369.12 848.50 2.3 Other Reserves 13,668.51 13,407.67 3 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income/Deposits – –4.2 Other Current Liabilities & Provisions 162.15 141.17

TOTAL 12,849.54 10,727.48

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares 12,643.60 10,528.43 1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – –1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –

Total Investments 12,643.60 10,528.43

2 Deposits 0.52 0.52 3 Other Current Assets3.1 Cash & Bank Balance 3.69 1.87 3.2 CBLO / Reverse Repo Lending 134.08 132.70 3.3 Others 67.65 63.96 4 Deferred Revenue Expenditure – –


TOTAL 12,849.54 10,727.48



13



Rs. in Lakhs


Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016

1 INCOME1.1 Dividend 236.43 218.73 1.2 Interest 8.56 14.90 1.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of

investments1,832.61 2,264.91


(A) 2,077.62 2,498.57 2 EXPENSES2.1 Management fees 204.55 227.59 2.2 Service tax on Management fees 30.51 31.68 2.3 Transfer agents fees and expenses 13.99 14.90 2.4 Custodian fees 1.38 1.59 2.5 Trusteeship fees 0.22 0.26 2.6 Commission to Agents 69.66 71.77 2.7 Marketing & Distribution expenses 2.71 4.68 2.8 Audit fees 0.71 0.35 2.9 Investor Education Expenses 2.26 2.51 2.10 Other operating expenses 4.71 6.58 2.11 Less: Expenses to be Reimbursed by the Investment Manager – –

(B) 330.70 361.91




6 Change in unrealised appreciation in the value of investments and derivatives (F) (1,520.62) 4,506.34

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 226.30 6,643.00

7.1 Add: Balance transfer from Unrealised Appreciation Reserve 1,520.62 –7.2 Less: Balance transfer to Unrealised Appreciation Reserve – 4,506.34 7.3 Add / (Less): Equalisation (1,486.08) (1,758.11)7.4 Transfer from Reserve Fund 13,407.67 13,029.12 8 Total 13,668.51 13,407.67 9 Dividend appropriation9.1 Income Distributed during the year – –9.2 Tax on income distributed during the year – –10 Retained Surplus / (Defi cit) carried forward

to Balance sheet13,668.51 13,407.67


14




Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016


Open





High





Low





End






End 12,690 10,588

Average (AAuM)1 11,304 12,555


4. Expense Ratio:

a. Total Expense as % of AAuM (including service tax on Management fees) (planwise)

Regular Plan (Continue) 2.93% 2.89%







15




Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016


Retail

Dividend Option – –

Direct Plan - Dividend Option – –

Corporate

Dividend Option – –


8. Returns (%):

a. Last One Year

Scheme

Growth Option 32.7613 (17.6432)


Benchmark

S&P BSE India Infrastructure Index** 40.5861 NA

S&P BSE 200 NA (7.8430)

b. Since Inception

Scheme



Benchmark

S&P BSE India Infrastructure Index** 8.3138 NA

S&P BSE 200 NA 9.6934

1. AAuM=Average daily net assets2. Gross income = amount against (A) in the Revenue account i.e. Income3. Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the year4. Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year

** Benchmark changed from 11 November, 2016,

16


Notes to Accounts – Annexure ITo the Abridged Balance Sheet and Revenue Account for the year ended March 31, 2017


1 Investments:



1.3. Investments in Associates and Group Companies as of year ended March 31, 2017 is NIL.



1.6. Aggregate Unrealised Gain / Loss as at the end of the Financial Year 2016 -2017 and percentage to net assets are as under :

Company Name Amount (Rupees)


Amount (Rupees)


2017 2016

Equity Shares

– Appreciation 439,260,333 34.61 339,553,176 32.07

– Depreciation 202,348,275 15.95 254,702,792 24.06

1.7. The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2016-2017 (excluding accretion of discount) is Rs. 246,487,792 and Rs. 376,074,513 respectively being 21.80% and 33.27% of the average daily net assets.

The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2015-2016 (excluding accretion of discount) is Rs. 263,841,696 and Rs. 433,083,514 respectively being 21.02% and 34.50% of the average daily net assets.




Commission paid to Sponsor / AMC and its associates / related parties / group companies

Name of Sponsor /AMC and its associate / related parties / group companies


Relation

Period Covered


% of Total Business




Fund



2016-2017 0.50 5.48 736,714 11.68

17


Name of Sponsor /AMC and its associate / related parties / group companies


Relation

Period Covered





Fund



2015-2016 0.27 4.55 809,773 12.16


Name of Sponsor/AMC and its associates/related parties/group companies


relation

Period Covered


[Rs. In Crores]

% of total value of


Brokerage paid [Rs. ]


fund


Sponsor 2016-2017 _ _ _ _



relation

Period Covered


[Rs. In Crores]

% of total value of




fund


Sponsor 2015-2016 – – – –

The brokerage paid was at rates similar to those offered to other brokers / distributors and the Commission/Brokerage paid to related party includes both upfront and trail and hence not comparable with the % of business brought and % of commission paid.







Notes to Accounts – Annexure I (Contd...)To the Abridged Balance Sheet and Revenue Account for the year ended March 31, 2017

18



Description

2016 – 2017


Growth Option 39,294,611.140 4,331,669.941 6,259,790.829 37,366,490.252 10

Dividend Option 33,013,292.954 115,442.339 5,591,659.447 27,537,075.846 10


517,609.397 167,762.524 179,812.708 505,559.213 10


42,685.343 314,665.324 331,125.073 26,225.594 10

Description

2015 – 2016

Opening Units Subscription Redemption Closing Units Face Value

per unit (Rupees)

Growth Option 43,406,482.885 1,812,066.499 5,923,938.244 39,294,611.140 10

Dividend Option 39,166,088.472 542,512.816 6,695,308.334 33,013,292.954 10


228,501.368 560,493.708 271,385.679 517,609.397 10


45,059.572 181,552.523 183,926.752 42,685.343 10

** Units held by the AMC (Seed Capital) in Direct Plan Growth Option as on 31/03/2017 is 274,726.784 and as on 31/03/2016 is 274,726.784.

5 Previous year’s fi gures have been re-grouped / re-arranged where appropriate.



8 Other Income of Rs. 2,264 represents Exit load (net of service tax) credited to the Scheme. (2016: Rs. 2,585 represents Exit load (net of service tax) credited to the Scheme)












19


10 Change in Fundamental Attribute - HSBC Infrastructure Equity Fund (Formerly HSBC Progressive Themes Fund) (“HIEF”)

In accordance with regulation 18(15A) of SEBI (Mutual Funds) Regulations, 1996, HSBC Progressive Themes Fund had undergone change in its fundamental attributes i.e. changes in its asset allocation and investment objective and it was renamed as HSBC Infrastructure Equity Fund with effect from September 14, 2015. A written communication was sent to the unit holders and a Notice-cum-addendum was published in newspapers, informing the investors about these changes with an option to exit for those unit holders who did not wish to continue to hold units in view of the said changes.



20










HSBC TAX SAVER EQUITY FUND 13

HSBC Tax Saver Equity FundAn open-ended Equity Linked Savings Scheme


1


Dear Investor,






2

13 HSBC TAX SAVER EQUITY FUND


Warm regards,

Ravi Menon



3













4








HSBC Tax Saver Equity Fund (HTSF) - an open ended Equity linked Savings SchemeHTSF seeks to provide long term capital appreciation by investing in a diversifi ed portfolio of equity & equity related instruments of companies across various sectors and industries, with no capitalization bias. The Fund may also invest in fi xed income securities.

The net assets of HTSF amounted to Rs. 181.97 crores as at March 31, 2017 compared to Rs 161.21 crores as at March 31, 2016. Around 97.18% of the net assets were invested in equities, 0.87% of the net assets were invested in reverse repos / CBLO and 1.95% in net current assets as at March 31, 2017.

HTSF outperformed its benchmark during most of the time periods due to reasonable stock selection and the approach of creating a stable and quality portfolio. Going forward, the portfolio would be managed in a similar fashion of bottom up stock picking approach following our valuation - profi tability framework of price to book/return on equity balanced by adequate risk management.

Date of Inception : 5 January 2007 Absolute Returns

(%)



HSBC Tax Saver Equity Fund - Growth 30.64 19.76 18.91 12.43



Rs. 10,000, if invested in HTSF, would have become 13,064 17,177 23,773 33,196


12,247 14,882 18,487 24,003




5







NSE CNX Nifty 18.5%

S&P BSE 100 21.2%

S&P BSE 200 22.5%

S&P BSE 500 24.0%


Source: Bloomberg








6




















7












Scheme




HSBC Tax Saver Equity Fund 4929034.13 992 4527953.10 162





8


2016-2017

Com-plaintCode


pending at the



theyear



ble*

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 6 4 2 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 6 5 0 0 0 0 1 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


1 34 35 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 6 6 0 0 0 0 0 0 0 0

IV Others 0 21 20 0 0 0 0 1 0 0 0

Total 1 73 70 2 0 0 0 2 0 0 0


Particulars Count








9







June 2016 124 101 0 23

September 2016 1,005 880 27 98

December 2016 58 42 9 7

March 2017 39 33 3 3

Total 1,226 1,056 39 131










Sd/-




10



HSBC Mutual Fund - HSBC Tax Saver Equity Fund

Report on the Financial StatementsReport on the fi nancial statements

We have audited the accompanying fi nancial statements of HSBC Tax Saver Equity Fund (the ‘Scheme’), which comprise the balance sheet as at 31 March 2017, the related revenue account and the cash fl ow statement for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, annexed thereto.










11








Sd/-



12


Rs. in Lakhs

HSBC TAX SAVER EQUITY FUNDAs at

March 31, 2017As at

March 31, 2016

LIABILITIES1 Unit Capital 6,257.44 7,105.082 Reserves & Surplus2.1 Unit Premium Reserves (3,138.29) (3,122.45)2.2 Unrealised Appreciation Reserve 4,371.93 2,113.002.3 Other Reserves 10,699.03 10,027.603 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income/Deposits – –4.2 Other Current Liabilities & Provisions 197.22 234.31

TOTAL 18,387.33 16,357.54

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares 17,684.68 15,927.941.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – –1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –


2 Deposits 1.59 0.763 Other Current Assets3.1 Cash & Bank Balance 14.60 11.363.2 CBLO / Reverse Repo Lending 157.53 160.973.3 Others 528.93 256.514 Deferred Revenue Expenditure – –


TOTAL 18,387.33 16,357.54



13



Rs. in Lakhs

HSBC TAX SAVER EQUITY FUNDCurrent


Previous Year ended

March 31, 2016

1 INCOME1.1 Dividend 153.43 222.381.2 Interest 23.62 24.561.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of

investments2,698.24 2,903.43

1.6 Realised Gains / (Losses) on Derivative Transactions – –1.7 Other Income – –

(A) 2,875.29 3,150.37

2 EXPENSES2.1 Management fees 295.43 302.002.2 Service tax on Management fees 44.06 42.102.3 Transfer agents fees and expenses 21.31 21.092.4 Custodian fees 2.07 2.222.5 Trusteeship fees 0.37 0.472.6 Commission to Agents 114.45 116.582.7 Marketing & Distribution expenses 0.49 –2.8 Audit fees 1.06 0.552.9 Investor Education Expenses 3.44 3.522.10 Other operating expenses 6.30 8.282.11 Less: Expenses to be Reimbursed by the Investment Manager – (1.35)

(B) 488.98 495.46

3 NET REALISED GAINS / (LOSSES) FOR THE YEAR (A – B = C) 2,386.31 2,654.91

4 Change in Unrealised Depreciation invalue of investments and derivatives (D) – –

5 NET GAINS / (LOSSES) FOR THE YEAR [E = (C + D)] 2,386.31 2,654.91

6 Change in unrealised appreciation in thevalue of investments and derivatives (F) 2,258.93 (3,571.51)

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 4,645.24 (916.60)

7.1 Add: Balance transfer from Unrealised Appreciation Reserve – 3,571.517.2 Less: Balance transfer to Unrealised Appreciation Reserve 2,258.93 –7.3 Add / (Less): Equalisation (1,366.65) (899.48)7.4 Transfer from Reserve Fund 10,027.60 8,666.50

8 Total 11,047.26 10,421.93

9 Dividend appropriation9.1 Income Distributed during the year 348.23 394.339.2 Tax on income distributed during the year – –10 Retained Surplus / (Defi cit) carried forward to

Balance sheet 10,699.03 10,027.60

Notes to Accounts - Annexure I

14



HSBC TAX SAVER EQUITY FUND Current


Previous Year ended

March 31, 2016


Open





High





Low





End






End 18,197 16,121

Average (AAuM)1 17,217 17,617


4. Expense Ratio:









15


HSBC TAX SAVER EQUITY FUND Current


Previous Year ended

March 31, 2016


Retail



Corporate



8. Returns (%):

a. Last One Year

Scheme

Regular Plan - Growth Option 30.6383 (5.1230)


Benchmark

BSE 200 22.4731 (7.8430)

b. Since Inception

Scheme



Benchmark

S&P BSE 200 8.9235 7.5503

1 AAuM=Average daily net assets.2 Gross income = amount against (A) in the Revenue Account i.e. Income.3 Net income = amount against (C) in the Revenue Account i.e. Net Realised Gains / (Losses) for the year.4 Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year.


16



HSBC TAX SAVER EQUITY FUND

1 Investments:



1.3. Investments in Associates and Group Companies are as under :

(Rupees)



by all schemes


by all schemes

2017 2016



– 1,452,436,300 – 402,773,900

Equities – 94,659,583 34,045,924 47,680,367

Bharti Airtel Ltd. Equities – 1,025,985 – 421,271,947

1.4. Open position of Securities Borrowed and / or Lent by the Scheme as of the year ended 31 March, 2016 is NIL.


1.6. Aggregate Unrealised Gain / Loss as at the end of the Financial years and their percentages to net assets are as under:



2017 2016

Equity Shares

– Appreciation 474,804,951 26.09 282,011,859 17.49

– Depreciation 37,612,098 2.07 70,711,755 4.39

1.7. The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2015-16 (excluding accretion of discount) is Rs. 1,086,271,967 and Rs. 1,406,333,513 respectively being 63.09% and 81.69% of the average daily net assets.

The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2014-15 (excluding accretion of discount) is Rs. 913,780,521 and Rs. 1,486,412,318 respectively being 46.58% and 75.77% of the average daily net assets.

1.8. Non-Traded securities

Aggregate fair value of non-traded (including private placement) investments as determined by HSBC Asset Management (India) Private Limited under the procedures approved by the Board of Trustees as at March 31, 2017 are as follows:

17


Non-Traded securities in the portfolio as on March 31, 2017 are NIL

Name of Scheme

March 31, 2016

Company Name Fair Value (Rupees)

% to Net Assets

HTSF Crompton Greaves Consumer Electrical Ltd 23,239,440 1.44%






Relation

Period Covered


% of Total Business




Fund



2016-2017 0.96 18.38 390,163 3.79



Relation

Period Covered


% of Total Business




Fund



2015-2016 0.48 12.24 359,237 3.32




relation

Period Covered


[Rs. In Crores]

% of total value of




fund


Sponsor 2016-2017 2.63 1.05 31,545 1.06



relation

Period Covered


[Rs. In Crores]

% of total value of




fund


Sponsor 2015-2016 4.54 2.05 54,646 2.07


18


The brokerage paid was at rates similar to those offered to other brokers / distributors. And the Commission/Brokerage paid to related party includes both upfront and trail and hence not comparable with the % of business brought and % of commission paid.






3 None of the Investors held more than 25% of the total net assets of the scheme at the years ended March 31, 2017 and March 31, 2016.

4 Unit Capital movement during the years ended March 31, 2017 and March 31, 2016.

Description

2016-2017

Opening Units Subscription Redemption Closing UnitsFace Value

per unit (Rupees)

Growth Option

44,160,495.610 863,365.911 6,378,858.358 38,645,003.163 10

Dividend Option

26,079,028.181 379,489.487 3,448,724.749 23,009,792.919 10


646,815.360 163,110.181 84,112.404 725,813.137 10


164,419.463 41,924.891 12,547.092 193,797.262 10

Description

2015-2016


per unit (Rupees)

Growth Option

48,473,903.152 544,751.743 4,858,159.285 44,160,495.610 10

Dividend Option

28,501,783.448 285,677.670 2,708,432.937 26,079,028.181 10


368,064.984 294,476.543 15,726.167 646,815.360 10


126,180.031 38,307.796 68.364 164,419.463 10

** Units held by the AMC (Seed Capital) in Direct Plan Growth Option as on 31/03/2017 is 187,801.892 and as on 31/03/2016 is 187,801.892


19






8 Other income for the years ended March 31, 2017 and March 31, 2016 NIL .



Particulars Amount (in Rs. Lacs)









20










HSBC DYNAMIC FUND 2

HSBC Dynamic FundAn open-ended Scheme


1

HSBC DYNAMIC FUND 2

Dear Investor,






2

2 HSBC DYNAMIC FUND


Warm regards,

Ravi Menon



3

HSBC DYNAMIC FUND 2












4

2 HSBC DYNAMIC FUND








HSBC Dynamic Fund (HDF) - an open-ended SchemeHDF seeks to provide long term capital appreciation by allocating funds in equity and equity related instruments. It also has the fl exibility to move, entirely if required, into debt instruments in times that the view on equity markets seems negative.

The net assets of HDF amounted to Rs. 46.22 crores as at March 31, 2017 compared to Rs. 53.41 crores as at March 31, 2016. Around 81.59% of the net assets were invested in equities, 18.31% of the net assets were invested in reverse repos / CBLO and 0.10% in net current assets as at March 31, 2017.

HDF has underperformed its benchmark S&P BSE200 over the FY 2016-17 by 569 bps primarily due to high cash balance. The scheme allocates capital across equity and debt securities dynamically. In a year when equity market was up by 22.5%, approximately 18% allocation to cash (full year average) had a negative impact on attribution. Selections in sectors like Financials, Consumer Discretionary, and Industrials contributed to reducing the underperformance during FY 2016-17.

Date of Inception : 24 September 2007 Absolute Returns

(%)



HSBC Dynamic Fund - Growth 16.78 11.75 10.14 4.76



Rs. 10,000, if invested in HDF, would have become 11,678 13,954 16,209 15,578


12,247 14,882 18,487 19,280



5

HSBC DYNAMIC FUND 2







NSE CNX Nifty 18.5%

S&P BSE 100 21.2%

S&P BSE 200 22.5%

S&P BSE 500 24.0%


Source: Bloomberg







6

2 HSBC DYNAMIC FUND



















7

HSBC DYNAMIC FUND 2












Scheme




HSBC Dynamic Fund – – 2412057.37 82




8

2 HSBC DYNAMIC FUND

2016-2017

Com-plaintCode


pending at the



theyear



ble*

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 6 4 2 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 6 5 0 0 0 0 1 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


1 34 35 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 6 6 0 0 0 0 0 0 0 0

IV Others 0 21 20 0 0 0 0 1 0 0 0

Total 1 73 70 2 0 0 0 2 0 0 0


Particulars Count








9

HSBC DYNAMIC FUND 2






June 2016 124 101 0 23

September 2016 1,005 880 27 98

December 2016 58 42 9 7

March 2017 39 33 3 3

Total 1,226 1,056 39 131










Sd/-




10

2 HSBC DYNAMIC FUND


HSBC Mutual Fund - HSBC Dynamic Fund

Report on the Financial StatementsWe have audited the accompanying fi nancial statements of HSBC Dynamic Fund (the ‘Scheme’), which comprise the balance sheet as at 31 March 2017 and the related revenue account for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, annexed thereto.









11

HSBC DYNAMIC FUND 2







Sd/-



12

2 HSBC DYNAMIC FUND

Rs. in Lakhs

HSBC DYNAMIC FUNDAs at

March 31, 2017As at

March 31, 2016

LIABILITIES1 Unit Capital 2,965.34 4,005.92 2 Reserves & Surplus2.1 Unit Premium Reserves (2,675.16) (3,525.40)2.2 Unrealised Appreciation Reserve 747.99 356.89 2.3 Other Reserves 3,582.61 4,507.05 3 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income/Deposits – –4.2 Other Current Liabilities & Provisions 90.62 85.85

TOTAL 4,711.40 5,430.31


Total Investments 3,772.02 4,314.97 2 Deposits 2.53 4.06 3 Other Current Assets3.1 Cash & Bank Balance 21.16 5.96 3.2 CBLO / Reverse Repo Lending 846.13 1,080.43 3.3 Others 69.56 24.89 4 Deferred Revenue Expenditure – –


TOTAL 4,711.40 5,430.31



13

HSBC DYNAMIC FUND 2


Rs. in Lakhs

HSBC DYNAMIC FUNDCurrent


Previous Year ended

March 31, 2016


1.2 Interest 57.29 96.37




430.94 486.85



(A) 544.62 636.00

2 EXPENSES2.1 Management fees 85.50 102.30 2.2 Service tax on Management fees 12.74 14.23 2.3 Transfer agents fees and expenses 5.98 6.94 2.4 Custodian fees 0.50 0.59 2.5 Trusteeship fees 0.10 0.12 2.6 Commission to Agents 34.66 41.01 2.7 Marketing & Distribution expenses 0.11 –2.8 Audit fees 0.27 0.20 2.9 Investor Education Expenses 0.97 1.16 2.10 Other operating expenses 1.87 2.86 2.11 Less: Expenses to be Reimbursed by the Investment Manager – –

(B) 142.70 169.41

3 NET REALISED GAINS / (LOSSES) FOR THE YEAR (A - B = C) 401.92 466.59


5 NET GAINS / (LOSSES) FOR THE YEAR [E = (C+D)] 401.92 466.59

6 Change in unrealised appreciation in the value of investments and derivatives (F) 391.10 (670.33)

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 793.02 (203.74)

7.1 Add: Balance transfer from Unrealised Appreciation Reserve – 670.33

7.2 Less: Balance transfer to Unrealised Appreciation Reserve 391.10 –

7.3 Add / (Less): Equalisation (1,326.36) (640.60)


8 Total 3,582.61 4,507.05

9 Dividend appropriation9.1 Income Distributed during the year – –9.2 Tax on income distributed during the year – –


3,582.61 4,507.05


14

2 HSBC DYNAMIC FUND


HSBC DYNAMIC FUND Current


Previous Year ended

March 31, 2016


Open





High





Low





End






End 4,622 5,341

Average (AAuM)1 4,867 5,799


4. Expense Ratio:









15

HSBC DYNAMIC FUND 2

HSBC DYNAMIC FUND Current


Previous Year ended

March 31, 2016


Retail

Regular Plan Dividend Option – –


Corporate



8. Returns (%):

a. Last One Year

Scheme



Benchmark

S&P BSE 200 22.4731 (7.8430)

b. Since Inception

Scheme



Benchmark

S&P BSE 200 7.1347 5.4659



16

2 HSBC DYNAMIC FUND


HSBC DYNAMIC FUND

1 Investments:

1.1. It is confi rmed that investments of the schemes are registered in the name of the Trustees for the benefi t of the Scheme’s unitholders.

1.2. Open Positions of derivatives amount as of years ended March 31, 2017 and March 31, 2016 are NIL.

1.3. Investments in Associates and Group Companies :

(Rupees)



by all schemes


by all schemes

2017 2016



– 1,452,436,300 – 402,773,900

Equities – 94,659,583 – 47,680,367

Bharti Airtel Ltd. Equities 1,025,985 1,025,985 7,570,930 421,271,947

1.4. Open position of Securities Borrowed and / or Lent by the Scheme as of the years ended March 31, 2017 and March 31, 2016 are NIL.


1.6. Aggregate Unrealised Gain / Loss as at the end of the Financial Years and percentage to net assets.



2017 2016

Equity Shares

– Appreciation 76,542,575 16.56 40,220,736 7.53

– Depreciation 1,743,430 0.38 4,531,408 0.85

1.7. The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2016 - 2017 (excluding accretion of discount) is Rs. 318,875,139 and Rs. 455,418,228 respectively being 65.52% and 93.57% of the average daily net assets.

The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2015 - 2016 (excluding accretion of discount) is Rs. 526,956,230 and Rs. 516,964,736 respectively being 90.86% and 89.14% of the average daily net assets.

1.8. Non-Traded securities in the portfolio of the Scheme as of the Years ended March 31, 2017 and March 31, 2016 are NIL.

17

HSBC DYNAMIC FUND 2




Name of Sponsor / AMC and its associate / related parties / group companies


Relation

Period Covered


% of Total Business




Fund



2016-2017 4.64 90.33 1,084,039 34.14



Relation

Period Covered


% of Total Business




Fund



2015-2016 3.49 68.58 1,602,589 41.04




relation

Period Covered


[Rs. In Crores]

% of total value of




fund


Sponsor 2016-2017 – – – –



relation

Period Covered


[Rs. In Crores]

% of total value of




fund


Sponsor 2015-2016 0.32 0.31 3,816 0.32


Further, The Hong Kong and Shanghai Banking Corporation Limited, an associate of the Sponsor, is on the panel of bankers with whom HSBC Mutual Fund places money on fi xed deposits and enters into reverse repo transactions from time to time at competitive rates.



18

2 HSBC DYNAMIC FUND






Description

2016-2017



21,838,405.104 3,055,782.763 5,761,102.519 19,133,085.348 10


17,759,428.505 420,688.114 8,058,316.625 10,121,799.994 10


456,848.648 15,258.393 78,994.438 393,112.603 10


4,528.200 2,148.166 1,256.964 5,419.402 10

Description

2015–2016



24,741,200.315 1,165,810.374 4,068,605.585 21,838,405.104 10


20,918,533.869 1,859,487.241 5,018,592.605 17,759,428.505 10


96,070.412 373,274.415 12,496.179 456,848.648 10


2,394.352 2,133.848 – 4,528.200 10

** Units held by the AMC (Seed Capital) in Direct Plan Growth Option as on 31/03/2017 is 360,147.516 & as on 31/03/2016 is 360,147.516




8 Other income of Rs. 1,148.06 represents Exit load (net of service tax) credited to the scheme. (2016: Rs. 1,115 represents Exit load (net of service tax) credited to the scheme.)


19

HSBC DYNAMIC FUND 2













20

2 HSBC DYNAMIC FUND



HSBC DYNAMIC FUND 2






HSBC DIVIDEND YIELD EQUITY FUND 5

HSBC Dividend Yield Equity FundAn open-ended Equity Scheme


1


Dear Investor,






2

5 HSBC DIVIDEND YIELD EQUITY FUND


Warm regards,

Ravi Menon



3













4








HSBC Dividend Yield Equity Fund (HDYEF) - an open ended equity SchemeHDYEF aims to generate dividend yield and capital appreciation by primarily investing into equities and equity related securities of domestic Indian companies.

The net assets of HDYEF amounted to Rs. 42.49 crores as at March 31, 2017 compared to Rs. 38.52 crores as at March 31, 2016. Around 99.49 % of the net assets were invested in equities, 0.63% of the net assets were invested in reverse repos / CBLO and (-0.12%) in net current assets as at March 31, 2017.

The scheme out-performed its benchmark during FY 2016-17 due to overweight position in Industrial and Consumer discretionary. We will maintain the current positing and will continue to be invested in companies offering attractive dividend yields along with profi tability and valuation framework.

Date of Inception : 21 March 2007 Absolute Returns

(%)



HSBC Dividend Yield Equity Fund - Growth 25.93 15.53 13.80 6.82



Rs. 10,000, if invested in HDYEF, would have become 12,593 15,422 19,088 19,398


12,247 14,882 18,487 25,938




5







NSE CNX Nifty 18.5%

S&P BSE 100 21.2%

S&P BSE 200 22.5%

S&P BSE 500 24.0%


Source: Bloomberg








6




















7












Scheme




HSBC Dividend Yield Equity Fund – – 2846464.52 79





8


2016-2017

Com-plaintCode


pending at the



theyear



ble*

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 6 4 2 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 6 5 0 0 0 0 1 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


1 34 35 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 6 6 0 0 0 0 0 0 0 0

IV Others 0 21 20 0 0 0 0 1 0 0 0

Total 1 73 70 2 0 0 0 2 0 0 0


Particulars Count








9







June 2016 124 101 0 23

September 2016 1,005 880 27 98

December 2016 58 42 9 7

March 2017 39 33 3 3

Total 1,226 1,056 39 131










Sd/-




10




HSBC Mutual Fund - HSBC Dividend Yield Equity Fund

Report on the Financial StatementsWe have audited the accompanying fi nancial statements of HSBC Dividend Yield Equity Fund (the ‘Scheme’), which comprise the balance sheet as at 31 March 2017 and the related revenue account for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, annexed thereto.








11








Sd/-



12


Rs. in Lakhs

HSBC DIVIDEND YIELD EQUITY FUNDAs at

March 31, 2017As at

March 31, 2016

LIABILITIES1 Unit Capital 2,189.49 2,500.18 2 Reserves & Surplus2.1 Unit Premium Reserves (2,965.73) (3,295.69)2.2 Unrealised Appreciation Reserve 1,379.55 628.41 2.3 Other Reserves 3,644.97 4,018.55 3 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income/Deposits – –4.2 Other Current Liabilities & Provisions 44.25 48.51

TOTAL 4,292.53 3,899.96





TOTAL 4,292.53 3,899.96



13


Rs. in Lakhs

HSBC DIVIDEND YIELD EQUITY FUNDCurrent


Previous Year ended

March 31, 2016

1 INCOME1.1 Dividend 101.77 104.55 1.2 Interest 2.79 7.80 1.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of

investments– –


171.69 598.86

1.6 Realised Gains / (Losses) on Derivative Transactions – –1.7 Other Income 0.01 –

(A) 276.26 711.21 2 EXPENSES2.1 Management fees 57.46 60.24 2.2 Service tax on Management fees 8.58 8.38 2.3 Transfer agents fees and expenses 4.92 5.04 2.4 Custodian fees 0.49 0.53 2.5 Trusteeship fees 0.08 0.09 2.6 Commission to Agents 26.63 28.72 2.7 Marketing & Distribution expenses 0.10 0.05 2.8 Audit fees 0.24 0.20 2.9 Investor Education Expenses 0.80 0.85 2.10 Other operating expenses 1.80 2.34 2.11 Less: Expenses to be Reimbursed by the Investment Manager – –

(B) 101.10 106.44 3 NET REALISED GAINS / (LOSSES)

FOR THE YEAR (A - B = C) 175.16 604.77





7.1 Add: Balance transfer from Unrealised Appreciation Reserve

– 976.00

7.2 Less: Balance transfer to Unrealised Appreciation Reserve 751.14 –7.3 Add / (Less): Equalisation (548.74) (651.14)7.4 Transfer from Reserve Fund 4,018.55 4,064.92 8 Total 3,644.97 4,018.55 9 Dividend appropriation9.1 Income Distributed during the year – –9.2 Tax on income distributed during the year – –10 Retained Surplus / (Defi cit) carried forward

to Balance sheet3,644.97 4,018.55



14



HSBC DIVIDEND YIELD EQUITY FUND Current


Previous Year ended

March 31, 2016


Open





High





Low





End






End 4,249 3,852



4. Expense Ratio:









15


HSBC DIVIDEND YIELD EQUITY FUND Current


Previous Year ended

March 31, 2016


Retail



Corporate



8. Returns (%):

a. Last One Year

Scheme



Benchmark

S&P BSE 200 22.4731 (7.8430)

b. Since Inception

Scheme



Benchmark

S&P BSE 200 9.9600 8.6562



16



HSBC DIVIDEND YIELD EQUITY FUND

1 Investments:

1.1 It is confi rmed that Investments of the Schemes are registered in the name of the Trustees for the benefi ts of the Scheme’s Unitholders.



1.4. Open position of Securities Borrowed and / or Lent by the Scheme as of the years ended 31 March, 2017 and March 31, 2016 are NIL.


1.6. Aggregate Unrealised Gain / Loss as at the end of the Financial Year and their percentages to net assets are as under:



2017 2016

Equity Shares

– Appreciation 145,634,412 34.27 78,927,411 20.49

– Depreciation 7,679,573 1.81 16,086,285 4.18

1.7. The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2016-2017(excluding accretion of discount) is Rs. 49,446,523 and Rs. 100,283,656 respectively being 12.42% and 25.19% of the average daily net assets.




During the year 2016-17, The Hongkong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid clearing member charges on derivative transactions amounting to Rs. Nil.

During the year 2015-16, The Hongkong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid clearing member charges on derivative transactions amounting to Rs. Nil.


17





Relation

Period Covered





Fund



2016-2017 0.48 40.24 266,688.51 11.06



Relation

Period Covered


% of Total Business




Fund



2015-2016 0.10 9.26 288,081.28 10.86




relation

Period Covered


[Rs. In Crores]

% of total value of




fund


Sponsor 2016-2017 – – – –



relation

Period Covered


[Rs. In Crores]

% of total value of




fund


Sponsor 2015-2016 3.63 11.66 43,546 11.64







18





Description

2016 – 2017



14,150,858.974 337,312.496 1,617,290.352 12,870,881.118 10


10,542,612.806 81,107.080 1,933,306.229 8,690,413.657 10


291,333.281 43,489.704 15,221.777 319,601.208 10


17,041.599 – 2,989.443 14,052.156 10

Description

2015 – 2016



16,162,975.017 159,218.729 2,171,334.772 14,150,858.974 10


12,635,870.043 83,091.551 2,176,348.788 10,542,612.806 10


8,450.150 284,199.625 1,316.494 291,333.281 10


4,801.778 12,239.821 – 17,041.599 10





8 Other income of Rs. 765.73 represents Exit load (net of service tax) credited to the Scheme (2016: Rs. 190 represents Exit load (net of service tax) credited to the scheme).


In view of the AMFI Best Practices Guidelines Circular No. 56/2015-16, the IEF (Investor Education Fund) accrual is set aside in a separate bank account and the consolidated balance across all schemes as on


19



March 31, 2017. The break-up of which is as under:









10 Merger of HSBC Dividend Yield Equity Fund (HDYEF) into HSBC India Opportunities Fund (HIOF)

The Board of Directors of HSBC Asset Management (India) Private limited and Board of Trustees of HSBC Mutual Fund have approved the merger of HDYEF into HIOF in their meetings held on February 01, 2017 and February 02, 2017 respectively. SEBI has also granted it’s no objection to the aforesaid merger vide its letter dated April 03, 2017. Accordingly, a notice was published on May, 24, 2017 giving an option to the unitholders of HDYEF to exit during the period from May 31, 2017 to June 30, 2017 at the applicable NAV, without payment of exit load, if any and sale of units in the HDYEF was suspended effective from May 31, 2017. The HDYEF was merged into HIOF and ceased to exists from July 01, 2017. The unit holders of HDYEF who have not exercised the exit option during the aforesaid exit window have been allotted units of HIOF at the NAV declared as on the close of business hours on June 30, 2017.


20










EMERGING MARKETS FUND 15

HSBC Emerging Markets FundAn Open-ended Scheme


1


Dear Investor,






2

15 EMERGING MARKETS FUND


Warm regards,

Ravi Menon



3













4









HSBC Emerging Markets Fund (HEMF) - an open-ended SchemeHEMF seeks 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 debt and money market instruments.

The net assets of HEMF amounted to Rs. 9.28 crores as at March 31, 2017 compared to Rs. 8.76 crores as at March 31, 2016. Around 96.55% of the net assets were invested in HSBC GEM Equity Fund (overseas mutual fund), 3.79% of the net assets were invested in reverse repos / CBLO and (-0.34%) in net current assets as at March 31, 2017.

HEMF outperformed its benchmark during 2016-17 on account of the performance of its underlying fund as well as appreciation in INR vis-à-vis the USD.

Date of Inception : 17 March 2008 Absolute Returns

(%)



HSBC Emerging Markets Fund - Growth 16.28 3.28 3.72 2.00

MSCI Emerging Market Index (Scheme Benchmark) 12.42 3.09 2.62 1.83


Rs. 10,000, if invested in HEMF, would have become 11,628 11,018 12,002 11,962

Rs. 10,000, if invested in MSCI Emerging Market Index, would have become

11,242 10,957 11,381 11,785



5








NSE CNX Nifty 18.5%

S&P BSE 100 21.2%

S&P BSE 200 22.5%

S&P BSE 500 24.0%


Source: Bloomberg






6















a. Sponsor



b. HSBC Mutual Fund


7















Scheme




HSBC Emerging Market Fund 8688.49 13 1076796.75 26


8






2016-2017

Com-plaintCode




receivedduring

theyear



ble*

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 6 4 2 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 6 5 0 0 0 0 1 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


1 34 35 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 6 6 0 0 0 0 0 0 0 0

IV Others 0 21 20 0 0 0 0 1 0 0 0

Total 1 73 70 2 0 0 0 2 0 0 0


9




Particulars Count













June 2016 124 101 0 23

September 2016 1,005 880 27 98

December 2016 58 42 9 7

March 2017 39 33 3 3

Total 1,226 1,056 39 131






10






Sd/-

N. P. Gidwani

Chairman



11



HSBC Mutual Fund - HSBC Emerging Markets Fund

Report on the Financial StatementsWe have audited the accompanying fi nancial statements of HSBC Emerging Markets Fund (the ‘Scheme’), which comprise the balance sheet as at 31 March 2017 and the related revenue account for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, annexed thereto.









12


Report on other Legal and Regulatory Requirements1 As required by Regulation 55(4) to the Regulations, we report that:



2 As required by Clause 5(ii)(2) of the Eleventh Schedule of the Regulations, we report that the balance sheet and revenue account are in agreement with the books of account of the Scheme.


Sd/-




13


Rs. in Lakhs

HSBC EMERGING MARKETS FUNDAs at

March 31, 2017As at

March 31, 2016

LIABILITIES1 Unit Capital 784.53 861.762 Reserves & Surplus2.1 Unit Premium Reserves (456.13) (457.00)2.2 Unrealised Appreciation Reserve 136.85 14.902.3 Other Reserves 463.22 456.663 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 12.75 16.48

TOTAL 941.22 892.80

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – –1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities 896.36 854.11

Total Investments 896.36 854.11

2 Deposits 0.07 0.073 Other Current Assets3.1 Cash & Bank Balance 1.00 0.363.2 CBLO/Reverse Repo Lending 35.17 29.713.3 Others 8.62 8.554 Deferred Revenue Expenditure – –


TOTAL 941.22 892.80



14



Rs. in Lakhs

HSBC EMERGING MARKETS FUNDCurrent


Previous Year ended

March 31, 2016


1.2 Interest 1.39 1.72

1.3 Realised Gain / (Loss) on Foreign Exchange Transactions (0.36) (0.38)



12.64 (1.11)


1.7 Other Income – 0.01

(A) 32.45 23.97







2.7 Marketing & Distribution expenses 0.02 –

2.8 Audit fees 0.20 0.20



2.11 Less: Expenses to be Reimbursed by the Investment Manager – (0.43)

(B) 16.59 18.213 NET REALISED GAINS / (LOSSES)

FOR THE YEAR (A - B = C) 15.86 5.77

4 Change in Unrealised Depreciation invalue of investments*** (D) (0.07) –




7.2 Less: Balance transfer to Unrealised Appreciation Reserve 121.95 –

7.3 Add / (Less): Equalisation (9.23) (10.38)

7.4 Transfer from Reserve Fund 456.66 461.27

8 Total 463.22 456.66


10 Retained Surplus / (Defi cit) carried forward toBalance sheet 463.22 456.66


15



HSBC EMERGING MARKETS FUND Current


Previous Year ended

March 31, 2016


Open





High





Low





End






End 928 876

Average (AAuM)1 906 945


4. Expense Ratio:

a. Total Expense as % of AAuM (including service tax on Management fees) (planwise5)








16


HSBC EMERGING MARKETS FUND Current


Previous Year ended

March 31, 2016


Retail



Corporate



8. Returns (%):

a. Last One Year

Scheme



Benchmark

MSCI Emerging Markets Index 12.4242 (9.8927)

b. Since Inception

Scheme



Benchmark

MSCI Emerging Markets Index 1.8320 0.5870

1. AAuM=Average daily net assets2. Gross income = amount against (A) in the Revenue account i.e. Income3. Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the year4. Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year5 The Total management fees and other expenses charged by the underlying fund along with the

management fee and recurring expenses charged by the domestic Mutual Fund is as follows:

Scheme TER charged by underlying Fund

***

TER of the domestic Fund***

Total TER *** Maximum TER Cap as per circular ***

2016-17

HSBC Emerging Markets Fund

0.85% 1.77% 2.62% 2.70%

2015-16

HSBC Emerging Markets Fund

0.85% 1.84% 2.69% 2.70%

*** The TER excludes service Tax on Management fees


17



HSBC EMERGING MARKETS FUND1 Investments:-

1.1. It is confi rmed that investments of the Scheme are registered in the name of the Trustees for the benefi t of the Scheme’s unitholders.


1.3. Investments in Associates and Group Companies as of years ended March 31, 2017 & March 31, 2016 are NIL.



1.6. Aggregate Unrealised Gain / Loss as at the end of the fi nancial years end and their percentages to net assets are as under:



Amount (Rupees)


2017 2016Foreign Securities

– Appreciation 13,684,634 14.74 1,489,911 1.70

– Depreciation – – – –

1.7 The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2016-2017 (excluding accretion of discount) is Rs. 1877656 and 11,112,687 respectively being 2.07% and 11.26% of the average daily net assets.

The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2015-2016 (excluding accretion of discount) is Rs. 2,372,666 and 11,260,298 respectively being 2.51% and 11.92% of the average daily net assets.

1.8. Non -Traded securities in the portfolios as at March 31, 2017 and March 31, 2016 are NIL.





Relation

Period Covered


% of Total Business




Fund



2016-2017 0.13 30.24 101,711.63 22.21



Relation

Period Covered


% of Total Business




Fund



2015-2016 0.09 15.10 109,516.09 22.71

18










Description

2016-2017



5,569,323.787 319,549.456 840,327.611 5,048,545.632 10


2,547,371.707 34,037.579 298,558.919 2,282,850.367 10


497,559.401 28,559.337 15,582.705 510,536.033 10


3,374.592 – – 3,374.592 10

Description

2015-2016



6,230,264.050 278,218.982 939,159.245 5,569,323.787 10


2,942,879.435 156,376.205 551,883.933 2,547,371.707 10


390,143.904 127,368.781 19,953.284 497,559.401 10


3,374.592 – – 3,374.592 10

** Units held by the AMC (Seed Capital) in Direct Plan Growth Option as on 31/03/2017 is 113,484.384 & as on March 31, 2016 is 113,484.384


19






8 Other income of Rs. 497 represents Exit load (net of service tax) credited to the scheme (2016: Rs. 1,356 represents Exit load (net of service tax) credited to the scheme).



Particulars Amount(in Rs. Lacs)


Add: Accrual during FY 2016-17 182.34

Less: Transferred to AMFI 83.24

Less: Payable to AMFI (March 2017 accrual) 7.93

Add: Investment Income FY 2016-17 11.24

Less: Spent during FY 2016-17 58.41

Closing Balance as on March 31, 2017 44.00


20









HSBC ASIA PACIFIC (EX JAPAN) DIVIDEND YIELD FUND 20

HSBC Asia Pacifi c (Ex Japan) Dividend Yield FundAn Open-ended Fund of Funds Scheme


1


Dear Investor,






2

20 HSBC ASIA PACIFIC (EX JAPAN) DIVIDEND YIELD FUND


Warm regards,

Ravi Menon



3













4








HSBC Asia Pacifi c (Ex Japan) Dividend Yield Fund (HAPDF) – an open ended Fund of Funds SchemeHAPDF seeks to provide long term capital appreciation by investing predominantly in units of HSBC Global Investment Funds (HGIF) Asia Pacifi c Ex Japan Equity High Dividend Fund. 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. However, there is no assurance that the investment objective of the Scheme will be achieved.

The net assets of HAPDF amounted to Rs. 9.79 crores as on March 31, 2017 as compared to 14.88 crores as at March 31, 2016. Around 97.97 % of the net assets were invested in HSBC Global Investment Funds (HGIF) Asia Pacifi c Ex Japan Equity High Dividend Fund (overseas mutual fund), 2.94% of the net assets were invested in reverse repos / CBLO and (-0.91%) in net current assets as at March 31, 2017.

HAPDF outperformed its benchmark on account of the performance of its underlying fund as well as appreciation in INR vis-à-vis the USD.


(%)

Compounded Annualized Returns

(%)

Scheme Name & Benchmarks 1 Year 3 Years Since Inception

HSBC Asia Pacifi c (Ex Japan) Dividend Yield Fund - Growth 17.47 5.82 5.04

MSCI AC Asia Pacifi c ex Japan (Scheme Benchmark) 14.92 0.65 1.46

Nifty 50 (Standard Benchmark) 18.55 11.01 13.56

Rs. 10,000, if invested in HAPDF, would have become 11,747 11,850 11,647

`Rs. 10,000, if invested in MSCI AC Asia Pacifi c ex Japan, would have become

11,492 10,196 10,459

Rs. 10,000, if invested in Nifty 50, would have become 11,855 13,680 14,835



5







NSE CNX Nifty 18.5%

S&P BSE 100 21.2%

S&P BSE 200 22.5%

S&P BSE 500 24.0%


Source: Bloomberg







6














a. Sponsor



b. HSBC Mutual Fund



7













5. UNCLAIMED DIVIDENDS & REDEMPTIONS Summary of number of investors & corresponding amount Scheme-wise as on March 31, 2017:NIL




8



2016-2017

Com-plaintCode




receivedduring

theyear



ble*

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 6 4 2 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 6 5 0 0 0 0 1 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


1 34 35 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 6 6 0 0 0 0 0 0 0 0

IV Others 0 21 20 0 0 0 0 1 0 0 0

Total 1 73 70 2 0 0 0 2 0 0 0


9



Particulars Count













June 2016 124 101 0 23

September 2016 1,005 880 27 98

December 2016 58 42 9 7

March 2017 39 33 3 3

Total 1,226 1,056 39 131







10







Sd/-

N. P. Gidwani

Chairman


11



HSBC Mutual Fund - HSBC Asia Pacifi c (Ex Japan) Dividend Yield Fund

Report on the Financial StatementsWe have audited the accompanying fi nancial statements of HSBC Asia Pacifi c (Ex Japan) Dividend Yield Fund (the ‘Scheme’), which comprise the balance sheet as at 31 March 2017 and the related revenue account for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, annexed thereto.


Auditor’s responsibilityOur responsibility is to express an opinion on these fi nancial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the ICAI. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the fi nancial statements are free from material misstatement.







12








Sd/-



13



Rs. in Lakhs

HSBC ASIA PACIFIC (EX JAPAN)DIVIDEND YIELD FUND



LIABILITIES1 Unit Capital 839.16 1,500.33 2 Reserves & Surplus2.1 Unit Premium Reserves (46.83) (52.45)2.2 Unrealised Appreciation Reserve 100.07 - 2.3 Other Reserves 86.23 40.28 3 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income/Deposits – –4.2 Other Current Liabilities & Provisions 9.67 21.95

TOTAL 988.30 1,510.11

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – –1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities 958.72 1,474.82

Total Investments 958.72 1,474.82

2 Deposits 0.05 0.13 3 Other Current Assets3.1 Cash & Bank Balance 0.72 0.08 3.2 CBLO/Reverse Repo Lending 28.79 34.50 3.3 Others 0.02 0.58 4 Deferred Revenue Expenditure – –


TOTAL 988.30 1,510.11


14



Rs. in Lakhs


Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016

1 INCOME1.1 Dividend 35.40 78.78 1.2 Interest 1.52 3.71 1.3 Realised Gain / (Loss) on Foreign Exchange Transactions (1.44) (0.50)1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of

investments6.88 (37.90)


(A) 42.36 44.09 2 EXPENSES2.1 Management fees 6.13 15.11 2.2 Service tax on Management fees 0.91 2.08 2.3 Transfer agents fees and expenses 0.59 1.09 2.4 Custodian fees 1.82 1.91 2.5 Trusteeship fees 0.03 0.05 2.6 Commission to Agents 8.04 16.87 2.7 Marketing & Distribution expenses 0.02 0.02 2.8 Audit fees 0.20 0.20 2.9 Investor Education Expenses 0.22 0.45 2.10 Other operating expenses 0.58 1.04 2.11 Less: Expenses to be Reimbursed by the Investment Manager (0.02) (0.59)

(B) 18.52 38.23


4 Change in Unrealised Depreciation in value of investments*** (D) 57.07 (57.07)

5 NET GAINS / (LOSSES) FOR THE YEAR [E = (C+D)] 80.91 (51.21)6 Change in unrealised appreciation in the

value of investments and derivatives (F) 100.07 (133.31)7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 180.98 (184.52)7.2 Less: Balance transfer to Unrealised Appreciation Reserve 100.07 - 7.3 Add / (Less): Equalisation (34.96) (4.74)7.4 Transfer from Reserve Fund 40.28 96.23 8 Total 86.23 40.28 9 Dividend appropriation9.1 Income Distributed during the year – –9.2 Tax on income distributed during the year – –10 Retained Surplus / (Defi cit) carried forward

to Balance sheet86.23 40.28

Notes to Accounts – Annexure I*** Includes Unrealised Depreciation in the value of Foreign Currency Transactions.

15




Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016


Open





High





Low





End






End 979 1,488


4. Expense Ratio:










Retail



16



Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016

Corporate



8. Returns (%):

a. Last One Year

Scheme



Benchmark

MSCI AC Asia Pacifi c ex Japan 14.9176 (14.0840)

b. Since Inception

Scheme



Benchmark

MSCI AC Asia Pacifi c ex Japan 1.4566 (4.3910)

1. AAuM=Average daily net assets2. Gross income = amount against (A) in the Revenue account i.e. Income3. Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the year4. Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year5 The Total management fees and other expenses charged by the mutual fund(s) in foreign countries along

with the management fee and recurring expenses charged to the domestic mutual fund is as follows:

Scheme TER charged by underlying Fund ***


TotalTER ***

Maximum TER Cap as per

circular ***

2016-17

HSBC Asia Pacifi c (Ex Japan) Dividend Yield Fund 0.65% 1.63% 2.28% 2.70%

2015-16

HSBC Asia Pacifi c (Ex Japan) Dividend Yield Fund 0.65% 1.64% 2.29% 2.70%



17



HSBC ASIA PACIFIC (EX JAPAN) DIVIDEND YIELD FUND1 Investments:









Amount (Rupees)


2017 2016

Foreign Securities

– Appreciation 10,002,325 10.22% – –

– Depreciation – – 5,707,146 3.84

1.7 The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial period 2016-2017 (excluding accretion of discount) is Rs. 3,540,439 and 71,549,666 respectively being 3.18% and 64.28% of the average daily net assets.

The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial period 2015-2016 (excluding accretion of discount) is Rs. 7,877,857 and 134,458,824 respectively being 3.53% and 60.30% of the average daily net assets.






Relation

Period Covered





Fund



2016-2017 0.09 24.06 656,195.93 88.14



Relation

Period Covered





Fund



2015-2016 0.08 4.45 1,471,404.52 92.60

18






(iii) Subscription by the schemes in the issues lead managed by associate companies - Nil. (Previous year also Nil).


3 None of the Investors held more than 25% of the total net assets of the Scheme at the year ended March 31, 2017 and March 31, 2016.


Description

2016-2017


per unit (Rupees)


12,889,012.163 99,915.980 6,081,538.955 6,907,389.188 10


1,571,468.652 88,688.074 726,158.095 933,998.631 10


530,176.617 8,920.761 – 539,097.378 10


12,640.880 – 1,500.000 11,140.880 10

Description

2015–2016


per unit (Rupees)


25,408,964.288 121,388.531 12,641,340.656 12,889,012.163 10


2,812,657.917 26,575.657 1,267,764.922 1,571,468.652 10


97,412.408 436,478.403 3,714.194 530,176.617 10


11,596.101 2,085.427 1,040.648 12,640.880 10



19





7 Other income credited to the Scheme is Nil.( 2016 :- NIL)












20









HSBC BRAZIL FUND 17

HSBC Brazil FundAn Open-ended Fund of Funds Scheme


1

HSBC BRAZIL FUND 17

Dear Investor,






2

17 HSBC BRAZIL FUND


Warm regards,

Ravi Menon



3

HSBC BRAZIL FUND 17












4

17 HSBC BRAZIL FUND







HSBC Brazil Fund (HBF) - an open ended Fund of Funds SchemeHBF seeks to provide long term capital appreciation by investing predominantly in units/shares of HSBC Global Investments 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 signifi cant 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.

The net assets of HBF amounted to Rs. 29.17 crores as at March 31, 2017 compared to Rs. 26.20 crores as at March 31, 2016. Around 98.21 % of the net assets were invested in HSBC Brazil Equity Fund (overseas mutual fund), 2.91% of the net assets were invested in reverse repos / CBLO and (-1.12%) in the net current assets as at March 31, 2017.

The performance of the underlying fund led to the underperformance in HBF relative to its benchmark.

Date of Inception : 6 May 2011 Absolute Returns

(%)



HSBC Brazil Fund - Growth 33.46 -6.69 -6.70 -5.81

MSCI Brazil 10/40 Index (Scheme Benchmark) 37.56 -5.73 -9.31 -9.57


Rs. 10,000, if invested in HBF, would have become 13,346 8,124 7,072 7,019

Rs. 10,000, if invested in MSCI Brazil 10/40 Index, would have become

13,756 8,379 6,136 5,519




5

HSBC BRAZIL FUND 17






NSE CNX Nifty 18.5%

S&P BSE 100 21.2%

S&P BSE 200 22.5%

S&P BSE 500 24.0%


Source: Bloomberg







6

17 HSBC BRAZIL FUND













a. Sponsor



b. HSBC Mutual Fund



7

HSBC BRAZIL FUND 17













Scheme




HSBC Brazil Fund – – 47643.65 3



8

17 HSBC BRAZIL FUND




2016-2017

Com-plaintCode




receivedduring

theyear



ble*

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 6 4 2 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 6 5 0 0 0 0 1 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


1 34 35 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 6 6 0 0 0 0 0 0 0 0

IV Others 0 21 20 0 0 0 0 1 0 0 0

Total 1 73 70 2 0 0 0 2 0 0 0


9

HSBC BRAZIL FUND 17


Particulars Count













June 2016 124 101 0 23

September 2016 1,005 880 27 98

December 2016 58 42 9 7

March 2017 39 33 3 3

Total 1,226 1,056 39 131







10

17 HSBC BRAZIL FUND






Sd/-

N. P. Gidwani

Chairman


11

HSBC BRAZIL FUND 17


HSBC Mutual Fund - HSBC Brazil Fund

Report on the Financial StatementsWe have audited the accompanying fi nancial statements of HSBC Brazil Fund (the ‘Scheme’), which comprise the balance sheet as at 31 March 2017 and the related revenue account for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, annexed thereto.









12

17 HSBC BRAZIL FUND







Sd/-



13

HSBC BRAZIL FUND 17


Rs. in Lakhs

HSBC BRAZIL FUNDAs at

March 31, 2017As at

March 31, 2016

LIABILITIES1 Unit Capital 4,151.33 5,666.63 2 Reserves & Surplus2.1 Unit Premium Reserves (13.11) (26.28)2.2 Unrealised Appreciation Reserve – –2.3 Other Reserves (1,220.34) (2,657.93)3 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income/Deposits – –4.2 Other Current Liabilities & Provisions 42.99 61.35

TOTAL 2,960.87 3,043.77

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – –1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities 2,864.69 2,611.87




TOTAL 2,960.87 3,043.77


14

17 HSBC BRAZIL FUND


Rs. in Lakhs

HSBC BRAZIL FUNDCurrent


Previous Year ended

March 31, 2016

1 INCOME1.1 Dividend 58.49 154.10 1.2 Interest 7.42 5.87 1.3 Realised Gain / (Loss) on Foreign Exchange Transactions (5.86) (2.90)1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of

investments(639.97) (483.77)


(A) (579.89) (326.65)2 EXPENSES2.1 Management fees 28.23 27.04 2.2 Service tax on Management fees 4.21 3.73 2.3 Transfer agents fees and expenses 1.67 1.42 2.4 Custodian fees 1.96 1.75 2.5 Trusteeship fees 0.06 0.06 2.6 Commission to Agents 19.25 19.16 2.7 Marketing & Distribution expenses 0.41 0.38 2.8 Audit fees 0.20 0.20 2.9 Investor Education Expenses 0.60 0.57 2.10 Other operating expenses 1.78 1.39 2.11 Less: Expenses to be Reimbursed by the Investment Manager – –


FOR THE YEAR (A - B = C) (638.26) (382.35)4 Change in Unrealised Depreciation

in value of investments*** (D) 1,456.69 (114.18)5 NET GAINS / (LOSSES) FOR THE YEAR [E = (C+D)] 818.43 (496.53)6 Change in unrealised appreciation in the

value of investments and derivatives (F) – –7 NET SURPLUS / (DEFICIT) FOR THE YEA (E + F = G) 818.43 (496.53)7.1 Add: Balance transfer from Unrealised Appreciation Reserve – –7.2 Less: Balance transfer to Unrealised Appreciation Reserve – –7.3 Add / (Less): Equalisation 619.16 125.57 7.4 Transfer from Reserve Fund (2,657.93) (2,286.97)8 Total (1,220.34) (2,657.93)9 Dividend appropriation9.1 Income Distributed during the year – –9.2 Tax on income distributed during the year – –10 Retained Surplus / (Defi cit) carried forward

to Balance sheet(1,220.34) (2,657.93)


*** Includes Unrealised Depreciation in the value of Foreign Currency Transactions.

15

HSBC BRAZIL FUND 17




Previous Year ended

March 31, 2016


Open





High





Low





End






End 2,917 2,620


3. Gross income as % of AAuM2 -19.39% -11.44%

4. Expense Ratio:







5. Net Income as a percentage of AAuM3 -21.35% -13.39%


16

17 HSBC BRAZIL FUND



Previous Year ended

March 31, 2016


Retail



Corporate



8. Returns (%):

a. Last One Year

Scheme



Benchmark

MSCI Brazil 10/40 Index 37.5570 (0.1334)

b. Since Inception

Scheme

Regular Plan Growth Option (5.8139) (12.2717)

Direct Plan - Growth Option (7.3859) (17.4296)

Benchmark

MSCI Brazil 10/40 Index (9.5690) (16.9781)

1 AAuM=Average daily net assets

2 Gross income = amount against (A) in the Revenue account i.e. Income

3 Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the year

4 Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year

5 The Total management fees and other expenses charged by the underlying fund along with the management fee and recurring expenses charged by the domestic Mutual Fund is as follows:




2016-17

HSBC Brazil Fund 0.85% 1.83% 2.68% 2.70%

2015-16

HSBC Brazil Fund 0.85% 1.84% 2.69% 2.70%



17

HSBC BRAZIL FUND 17

Notes to Accounts - Annexure ITo the Abridged Balance Sheet and Revenue Account for the Year ended March 31, 2017

HSBC BRAZIL FUND1 Investments:







Security Category Amount (Rs.) Percentage to Net Assets (%)

Amount (Rs.) Percentage to Net Assets (%)

2017 2016

Foreign Securities

– Appreciation – – – –

– Depreciation 92,603,581 31.75 238,286,090 90.93

1.7 The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2016-2017 (excluding accretion of discount) is Rs. 64,376,138 and Rs. 120,785,705 respectively being 5.40% and 18.73% of the average daily net assets.







Relation

Period Covered


% of Total Business




Fund



2016-2017 3.46 35.12 940,613 54.54



Relation

Period Covered


% of Total Business




Fund



2015-2016 3.88 46.88 1,076,718 59.93

18

17 HSBC BRAZIL FUND









Description

2016-2017

Opening Units Subscription Redemption Closing Units Face Value per unit (Rs.)


43,145,354.299 10,976,827.343 22,789,514.596 31,332,667.046 10


12,155,653.078 626,765.345 4,251,912.562 8,530,505.861 10


1,352,163.735 1,869,262.627 1,682,393.117 1,539,033.245 10


13,156.078 97,934.473 – 111,090.551 10

Description

2015–2016

Opening Units Subscription Redemption Closing Units Face Value per unit (Rs.)


43,311,723.043 12,227,698.514 12,394,067.258 43,145,354.299 10


15,562,865.843 604,070.144 4,011,282.909 12,155,653.078 10


553,248.887 1,253,292.775 454,377.927 1,352,163.735 10


23,605.294 1,274.942 11,724.158 13,156.078 10



19

HSBC BRAZIL FUND 17




7 Other income of Rs. 2,839 represents Exit load (net of service tax) credited to the Scheme. (2016: Rs. 4,630 represents Exit load (net of service tax) credited to the scheme.)











9. The Annual Accounts of the Schemes prepared in accordance with the accounting policies and standards specifi ed in the Ninth Schedule of The Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 has been approved by the Board of Directors of HSBC Asset Management (India) Private Limited and The Board of Trustees of HSBC Mutual Fund at their meetings held on July 17, 2017 and July 18, 2017 respectively. The audit report attached herewith refers to the said Annual Accounts. The aforesaid abridged accounts are an extract of the Annual Accounts and are prepared in accordance with SEBI Circular No. IMD/Cir8/132968/2008 dated July 24, 2008.

20

17 HSBC BRAZIL FUND



HSBC BRAZIL FUND 17





HSBC MANAGED SOLUTIONS 12

HSBC Managed SolutionsAn Open-ended Fund of Funds Scheme


1


Dear Investor,






2

12 HSBC MANAGED SOLUTIONS


Warm regards,

Ravi Menon



3













4








HSBC Managed Solutions (HMS) – an open ended Fund of Funds SchemeHMS seeks to provide long term total return primarily by seeking capital appreciation through an active asset allocation with diversifi cation commensurate with the risk profi le of investments by investing predominantly in units of equity mutual funds as well as in a basket of debt mutual funds, gold exchange traded funds (ETFs) and other ETFs, offshore mutual funds and money market instruments.

The Scheme has three plans – Conservative Plan, Growth Plan and the Moderate Plan. The plans under the Scheme will invest predominantly in the existing and / or prospective schemes of HSBC Mutual Fund, units of third party domestic mutual funds, units of offshore equity oriented funds managed by HSBC Global Asset Management, gold ETFs and other ETFs of third parties until such time that the Fund doesn’t have such scheme offerings.

The net assets of HMS – Conservative Plan amounted to Rs. 344.32 crores as at March 31, 2017 as compared to Rs. 311.75 crores as at March 31, 2016. Around 98.64% of the net assets was invested in mutual fund schemes, 1.05% of the net assets was invested in reverse repos / CBLO and 0.31% in net current assets as at March 31, 2017. The net assets of HMS – Growth Plan amounted to Rs. 140.90 crores as at March 31, 2017 as compared to Rs. 125.16 crores as at March 31, 2016. Around 98.95% of the net assets were invested in Mutual fund schemes, 0.92% of the net assets were invested in reverse repos / CBLO and 0.13% in net current assets as at March 31, 2017. The net assets of HMS – Moderate Plan amounted to Rs. 215.58 crores as at March 31, 2017 as compared to Rs. 192.80 crores as at March 31, 2016. Around 98.47% of the net assets were invested in mutual fund schemes, 0.84% of the net assets were invested in reverse repos / CBLO and 0.69% in net current assets as at March 31, 2017.

The performance of HMS – Growth Plan is benchmarked against Composite Index constituting 80% of BSE 200 Index and 20% of CRISIL Composite Bond Index while the performance of HMS – Moderate Plan is benchmarked against CRISIL Balanced Fund Index. The performance of HMS – Conservative Plan is benchmarked against Composite Index constituting of 90% into CRISIL Composite Bond Index and 10% of BSE 200 Index. HMS Growth Plan and Moderate Plan outperformed the benchmark index due to allocation effect. HMS Conservative underperformed due to allocation to fi xed income which remained volatile during the year and also, equity asset class underperformed.


5


HMS - Growth Plan

Date of Inception : 30 April 2014 Absolute Returns

(%)


Scheme Name & Benchmarks 1 Year Since Inception

HSBC Managed Solutions - Growth Plan - Growth 24.68 16.62

Customised Benchmark Index Fund (Scheme Benchmark)* 20.20 13.84

Nifty 50 (Standard Benchmark) 18.55 11.38

CRISIL 10 Year Gilt Index (Standard Benchmark) 11.87 11.55

Rs. 10,000, if invested in HMS - Growth, would have become 12,468 15,674

Rs. 10,000, if invested in Customised Benchmark Index, would have become 12,020 14,126

Rs. 10,000, if invested in Nifty 50, would have become 11,855 13,704

Rs. 10,000, if invested in CRISIL 10 Year Gilt Index, would have become 11,187 13,765

*Composite index of S&P BSE 200 (80%) and CRISIL Composite Bond Fund Index (20%).

HMS - Conservative Plan


(%)



HSBC Managed Solutions - Conservative Plan - Growth 10.40 10.21

Customised Benchmark Index Fund (Scheme Benchmark)* 12.23 11.55



Rs. 10,000, if invested in HMS - Conservative, would have become 11,040 13,286

Rs. 10,000, if invested in Customised Benchmark Index, would have become 11,223 12,464



*Composite index of S&P BSE 200 (80%) and CRISIL Composite Bond Fund Index (20%).

HMS - Moderate Plan


(%)

Compounded Annualized

(%)


HSBC Managed Solutions - Moderate Plan - Growth 21.52 14.97

CRISIL Balanced Fund Index (Scheme Benchmark) 16.10 11.59



6



(%)

Compounded Annualized

(%)



Rs. 10,000, if invested in HMS - Moderate, would have become 12,152 15,035

Rs. 10,000, if invested in CRISIL Balanced Fund Index, would have become 11,610 13,778









NSE CNX Nifty 18.5%

S&P BSE 100 21.2%

S&P BSE 200 22.5%

S&P BSE 500 24.0%


Source: Bloomberg



Moving into FY 2017-18, we expect a continuation of the economic recovery process domestically, led early by better margins – due to lower input and interest costs and followed by a volume recovery. Government led


7


investment spending and urban consumption are likely to lead with private sector investments contributing later. On the policy front, Government has done its fair bit to improve the investment environment and the GST, a mega tax reform is now closer to reality. The ruling party at the centre has done well in the recent state assembly elections, especially in the key state of Uttar Pradesh and this is likely to provide them with political capital to pursue and implement economic reforms more aggressively.















8



a. Sponsor



b. HSBC Mutual Fund













9


5. UNCLAIMED DIVIDENDS & REDEMPTIONS Summary of number of investors & corresponding amount Scheme-wise as on March 31, 2017: NIL




2016-2017

Com-plaintCode




receivedduring

theyear



ble*

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 6 4 2 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 6 5 0 0 0 0 1 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


1 34 35 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


10


2016-2017

Com-plaintCode




receivedduring

theyear



ble*

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 6 6 0 0 0 0 0 0 0 0

IV Others 0 21 20 0 0 0 0 1 0 0 0

Total 1 73 70 2 0 0 0 2 0 0 0


Particulars Count













June 2016 124 101 0 23

September 2016 1,005 880 27 98

December 2016 58 42 9 7

March 2017 39 33 3 3

Total 1,226 1,056 39 131


11











Sd/-

N. P. Gidwani

Chairman



12




HSBC Mutual Fund - HSBC Managed Solutions India - Growth

Report on the Financial StatementsWe have audited the accompanying fi nancial statements of HSBC Managed Solutions India - Growth (the ‘Scheme’), which comprise the balance sheet as at 31 March 2017 and the related revenue account for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, annexed thereto.








13








Sd/-



14




HSBC Mutual Fund - HSBC Managed Solutions India - Moderate

Report on the Financial StatementsWe have audited the accompanying fi nancial statements of HSBC Managed Solutions India - Moderate (the ‘Scheme’), which comprise the balance sheet as at 31 March 2017 and the related revenue account for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, annexed thereto.








15








Sd/-



16




HSBC Mutual Fund – HSBC Managed Solutions India - Conservative

Report on the Financial StatementsWe have audited the accompanying fi nancial statements of HSBC Managed Solutions India - Conservative (the ‘Scheme’), which comprise the balance sheet as at 31 March 2017 and the related revenue account for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, annexed thereto.








17








Sd/-



18



Rs. in Lakhs

HSBC MANAGED SOLUTIONS INDIA – GROWTH



LIABILITIES1 Unit Capital 8,992.86 9,958.642 Reserves & Surplus2.1 Unit Premium Reserves 690.56 961.262.2 Unrealised Appreciation Reserve 3,398.81 1,032.602.3 Other Reserves 1,011.08 563.623 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income/Deposits – –4.2 Other Current Liabilities & Provisions 38.46 71.22

TOTAL 14,131.77 12,587.34

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Other Debentures & Bonds – –1.2.4 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – –1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund 13,965.28 12,363.601.10 Foreign Securities – –


2 Deposits 0.44 0.783 Other Current Assets3.1 Cash & Bank Balance 3.22 0.213.2 CBLO / Reverse Repo Lending 129.42 142.473.3 Others 33.41 80.284 Deferred Revenue Expenditure – –


TOTAL 14,131.77 12,587.34


19


Abridged Revenue Account For the Year Ended March 31, 2017

Rs. in Lakhs


Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016

1 INCOME1.1 Dividend – 5.971.2 Interest 9.70 14.391.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of

investments585.37 480.95


(A) 595.07 501.31

2 EXPENSES2.1 Management fees – –2.2 Service tax on Management fees – –2.3 Transfer agents fees and expenses 7.18 6.832.4 Custodian fees 1.65 1.832.5 Trusteeship fees 0.26 0.262.6 Commission to Agents 100.57 98.272.7 Marketing & Distribution expenses 0.32 1.082.8 Audit fees 0.79 0.432.9 Investor Education Expenses 2.61 2.592.10 Other operating expenses 3.27 3.762.11 Less: Expenses to be Reimbursed by the Investment Manager (33.37) (30.25)

(B) 83.28 84.80

3 NET REALISED GAINS / (LOSSES)FOR THE YEAR (A - B = C) 511.79 416.51

4 Change in Unrealised Depreciation in value of investments*** (D) – –


6 Change in unrealised appreciation in the value of investments and derivatives (F) 2,366.22 (653.76)

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 2,878.01 (237.25)

7.1 Add: Balance transfer from Unrealised Appreciation Reserve – 653.767.2 Less: Balance transfer to Unrealised Appreciation Reserve 2,366.22 –7.3 Add / (Less): Equalisation (64.33) (7.51)7.4 Transfer from Reserve Fund 563.62 154.628 Total 1,011.08 563.62


10 Retained Surplus / (Defi cit) carried forward to Balance sheet 1,011.08 563.62


20




Current Period ended

March 31, 2017

Previous Period ended

March 31, 2016


Open





High





Low





End






End 14,090 12,516

Average (AAuM)1 13,066 12,947


4. Expense Ratio:







5. Net Income as a percentage of AAuM3 * 3.92% 3.22%


21





March 31, 2017


March 31, 2016

7. Total Dividend per unit distributed during the period (planwise)

Retail



Corporate



8. Returns (%):

a. Last One Period

Scheme



Benchmark

Composite Index constituting 80% of BSE 200 Index and 20% of CRISIL Composite Bond Index

20.1964 (4.6313)

b. Since Inception

Scheme



Benchmark

Composite Index constituting 80% of BSE 200 Index and 20% of CRISIL Composite Bond Index

13.8434 10.7017

1. AAuM=Average daily net assets2. Gross income = amount against (A) in the Revenue account i.e. Income3. Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the period4. Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the period5. The Total management fees and other expenses charged by the mutual fund(s) in foreign countries along

with the management fee and recurring expenses charged to the domestic Mutual Fund is as follows:




2016-17

HSBC Managed Solutions India - Growth

1.73% 0.65% 2.38% 2.70%

2015-16

HSBC Managed Solutions India - Growth

1.65% 0.66% 2.31% 2.70%

*** The TER excludes service Tax on Management fees.

22




1 Investments:


1.2. Open Positions of derivatives as of years ended March 31, 2017 & March 31, 2016 are NIL


1.4. Open positions of Securities Borrowed and / or Lent by the Scheme as of the years ended March 31, 2017 & March 31, 2016 are NIL.

1.5. NPA as at years ended March 31, 2017 & March 31, 2016 are NIL.

1.6. Aggregate Unrealised Gain / Loss as at the end of the fi nancial period and percentage to net assets are as under :



Amount (Rupees)


2017 2016Units in Domestic Mutual Fund– Appreciation 339,881,440 24.12 103,259,933 8.25– Depreciation – – – –Foreign Securities– Appreciation – – – –– Depreciation – – – –



1.8. Non-Traded securities in the portfolios as at March 31, 2017 & March 31, 2016 are NIL.





Relation

Period Covered





Fund


Associate of the Investment Manager

2016-2017 17.04 65.34 8,221,960 93.31



Relation

Period Covered





Fund



2015-2016 23.92 73.92 8,336,982 89.19

23


Brokerage paid to Sponsor /AMC and its associates / related parties / group companies



relation

Period Covered

Value ofTransac-

tions[Rs. InCrores]

% of totalvalue oftransac-tions ofthe fund



fund


Sponsor 2016-2017 – – – –



relation

Period Covered

Value ofTransac-

tions[Rs. InCrores]




fund


Sponsor 2015-2016 12.74 100.00 127,503 100.00

The brokerage paid was at rates similar to those offered to other brokers / distributors. The brokerage paid was at rates similar to those offered to other brokers / distributors and the Commission/Brokerage paid to related party includes both upfront and trail and hence not comparable with the % of business brought and % of commission paid.

Further, The Hong kong and Shanghai Banking Corporation Limited, an associate of the Sponsor, is on the panel of bankers with whom HSBC Mutual Fund places money on fi xed deposits and enters into reverse repo transactions from time to time at competitive rates.





3 None of the Investors held more than 25% of the total net assets of the Scheme at the years ended March 31, 2017 & March 31, 2016.

4 Unit Capital movement during the years ended March 31, 2017 & March 31, 2016** :

Description Opening Units Subscription Redemption Closing Units Face Value per unit (Rupees)

2016-2017


89,592,289.575 9,936,465.585 18,684,802.258 80,843,952.902 10


7,354,500.200 2,401,422.284 3,696,500.693 6,059,421.791 10


2,571,059.034 558,645.425 201,530.170 2,928,174.289 10


68,543.396 28,529.536 – 97,072.932 10


24




2015-2016


91,938,819.705 19,107,106.092 21,453,636.222 89,592,289.575 10


6,487,461.214 2,171,631.960 1,304,592.974 7,354,500.200 10


771,332.789 1,801,944.498 2,218.253 2,571,059.034 10


115,919.599 786.969 48,163.172 68,543.396 10




7 Other income credited to the Scheme is Nil. (2016 : Nil)












25



Rs. in Lakhs

HSBC MANAGED SOLUTIONS INDIA – MODERATE



LIABILITIES1 Unit Capital 14,413.72 15,569.812 Reserves & Surplus2.1 Unit Premium Reserves 895.11 1,114.092.2 Unrealised Appreciation Reserve 4,617.66 1,387.502.3 Other Reserves 1,736.30 1,185.483 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income/Deposits – –4.2 Other Current Liabilities & Provisions 60.16 319.96

TOTAL 21,722.95 19,576.84

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Other Debentures & Bonds – –1.2.4 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – –1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund 21,401.69 19,186.841.10 Foreign Securities – –


2 Deposits 0.73 1.373.1 Cash & Bank Balance 104.46 0.483.2 CBLO / Reverse Repo Lending 181.73 300.593.3 Others 34.34 87.564 Deferred Revenue Expenditure – –


TOTAL 21,722.95 19,576.84


26



Rs. in Lakhs


Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016

1 INCOME1.1 Dividend – 8.611.2 Interest 13.59 32.551.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of

investments794.55 1,407.42


(A) 808.14 1,448.58

2 EXPENSES2.1 Management fees 20.54 –2.2 Service tax on Management fees 3.08 –2.3 Transfer agents fees and expenses 10.92 11.982.4 Custodian fees 1.71 1.942.5 Trusteeship fees 0.39 0.472.6 Commission to Agents 154.99 169.812.7 Marketing & Distribution expenses 0.48 2.142.8 Audit fees 1.21 0.702.9 Investor Education Expenses 3.99 4.612.10 Other operating expenses 4.68 6.322.11 Less: Expenses to be Reimbursed by the Investment Manager (34.28) (12.49)

(B) 167.71 185.48

3 NET REALISED GAINS / (LOSSES)FOR THE YEAR (A - B = C) 640.43 1,263.10


5 NET GAINS / (LOSSES) FOR THE YEAR [E = (C+D)] 640.43 1,263.10


7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 3,870.59 88.67

7.1 Add: Balance transfer from Unrealised Appreciation Reserve – 1,174.437.2 Less: Balance transfer to Unrealised Appreciation Reserve 3,230.16 –7.3 Add / (Less): Equalisation (89.61) (229.62)7.4 Transfer from Reserve Fund 1,185.48 152.00

8 Total 1,736.30 1,185.48

9 Dividend appropriation9.1 Income Distributed during the year – –9.2 Tax on income distributed during the year – –10 Retained Surplus / (Defi cit) carried forward to

Balance sheet 1,736.30 1,185.48

Notes to Accounts - Annexure I*** Includes Unrealised Depreciation in the value of Foreign Currency Transactions.

27


Key Statistics for the period ended March 31, 2017



March 31, 2017


March 31, 2016


Open





High




Direct Plan - Dividend Option – 12.5897

Low





End






End 21,558 19,280

Average (AAuM)1 19,934 23,028


4. Expense Ratio:

a. Total Expense as % of AAuM (including service tax on Management fees) (planwise)5








28





March 31, 2017


March 31, 2016


Retail



Corporate



8. Returns (%):

a. Last One Period

Scheme



Benchmark

CRISIL Balanced Fund Index 16.0998 (2.8954)

b. Since Inception

Scheme



Benchmark

CRISIL Balanced Fund Index 11.5860 12.2949

1. AAuM=Average daily net assets2. Gross income = amount against (A) in the Revenue account i.e. Income3. Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the period4. Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the period5. The Total management fees and other expenses charged by the mutual fund(s) in foreign countries along with

the management fee and recurring expenses charged to the domestic Mutual Fund is as follows:




2016-17

HSBC Managed Solutions India - Moderate

1.52% 0.83% 2.34% 2.70%

2015-16

HSBC Managed Solutions India - Moderate

1.34% 0.81% 2.15% 2.70%


29




1 Investments:






1.6. Aggregate Unrealised Gain / Loss as at the end of the fi nancial period and percentage to net assets :



Amount (Rupees)


2017 2016Units in Domestic Mutual Fund

– Appreciation 461,765,968 21.42 138,750,201 6.03– Depreciation – – – –Foreign Securities– Appreciation – – – –– Depreciation – – – –


The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial period 2015-2016 (excluding accretion of discount) is Rs. 1,289,500,000 and 1,753,135,863 respectively being 56.00% and 76.13% of the average daily net assets.

1.8. Non -Traded securities in the portfolios as at March 31, 2017 & March 31, 2016 are NIL.





Relation

Period Covered


% of Total Business




Fund


Associate of theI n v e s t m e n t Manager

2016-2017 22.77 69.67 12,888,744.86 98.28



Relation

Period Covered


% of Total Business




Fund


Associate of theI n v e s t m e n t Manager

2015-2016 50.62 74.93 15,305,238.21 92.31

30






relation

Period Covered

Value ofTransac-

tions[Rs. InCrores]




fund


Sponsor 2016-2017 – – – –



relation

Period Covered

Value ofTransac-

tions[Rs. InCrores]




fund


Sponsor 2015-2016 18.36 100.00 183,823 100.00

The brokerage paid was at rates similar to those offered to other brokers / distributors. The brokerage paid was at rates similar to those offered to other brokers / distributors and the Commission/Brokerage paid to related party includes both upfront and trail and hence not comparable with the % of business brought and % of commission paid.







4 Unit Capital movement during the years ended March 31, 2017 & March 31, 2016** :


2016-2017


139,432,622.243 16,279,365.089 25,282,235.344 130,429,751.988 10


15,794,573.484 1,286,409.291 3,864,524.009 13,216,458.766 10


470,909.044 20,905.676 801.205 491,013.515 10


– – – – 10

31




2015-2016


172,897,071.121 38,243,715.567 71,708,164.445 139,432,622.243 10


23,049,762.765 7,604,136.997 14,859,326.278 15,794,573.484 10


53,692.431 424,256.108 7,039.495 470,909.044 10


53,177.964 – 53,177.964 – 10
















32



Rs. in Lakhs

HSBC MANAGED SOLUTIONS INDIA – CONSERVATIVE



LIABILITIES1 Unit Capital 26,010.07 26,012.082 Reserves & Surplus2.1 Unit Premium Reserves (196.59) (217.41)2.2 Unrealised Appreciation Reserve 6,104.48 3,852.962.3 Other Reserves 2,634.00 1,651.55

3 Loans & Borrowings – –

4 Current Liabilities & Provisions4.1 Provision for doubtful Income/Deposits – –4.2 Other Current Liabilities & Provisions 60.97 139.93

TOTAL 34,612.93 31,439.11

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt securities – –

1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –

1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – –1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund 34,191.95 30,774.221.10 Foreign Securities – –


2 Deposits 1.46 3.05

3.1 Cash & Bank Balance 8.78 0.413.2 CBLO/Reverse Repo Lending 360.66 657.613.3 Others 50.08 3.824 Deferred Revenue Expenditure – –


TOTAL 34,612.93 31,439.11


33



Rs. in Lakhs


Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016

1 INCOME1.1 Dividend – –1.2 Interest 26.82 37.761.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of

investments1,275.99 1,226.03


(A) 1,302.80 1,263.79

2 EXPENSES2.1 Management fees 80.83 48.232.2 Service tax on Management fees 11.98 7.002.3 Transfer agents fees and expenses 18.07 16.522.4 Custodian fees 1.81 1.962.5 Trusteeship fees 0.66 0.632.6 Commission to Agents 193.80 186.552.7 Marketing & Distribution expenses 0.80 0.782.8 Audit fees 1.97 1.142.9 Investor Education Expenses 6.59 6.212.10 Other operating expenses 7.51 8.792.11 Less: Expenses to be Reimbursed by the Investment Manager – (3.68)

(B) 324.02 274.13




6 Change in unrealised appreciation in the value of investments and derivatives (F) 2,251.52 517.17

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 3,230.30 1,506.83

7.1 Add: Balance transfer from Unrealised Appreciation Reserve – –7.2 Less: Balance transfer to Unrealised Appreciation Reserve 2,251.52 517.177.3 Add / (Less): Equalisation 3.67 (14.76)7.4 Transfer from Reserve Fund 1,651.55 676.658 Total 2,634.00 1,651.55


10 Retained Surplus / (Defi cit) carried forward toBalance sheet 2,634.00 1,651.55

Notes to Accounts - Annexure I*** Includes Unrealised Depreciation in the value of Foreign Currency Transactions.

34


Key Statistics for the period ended March 31, 2017



March 31, 2017


March 31, 2016


Open





High





Low





End






End 34,432 31,175

Average (AAuM)1 32,958 31,052


4. Expense Ratio:









35





March 31, 2017


March 31, 2016


Retail



Corporate



8. Returns (%):

a. Last One Period

Scheme



Benchmark

Composite Index constituting of 90% into CRISIL Composite Bond Index and 10% of BSE 200 Index

12.2280 6.6095

b. Since Inception

Scheme



Benchmark

Composite Index constituting of 90% into CRISIL Composite Bond Index and 10% of BSE 200 Index

11.5476 11.2100

1. AAuM=Average daily net assets2. Gross income = amount against (A) in the Revenue account i.e. Income3. Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the period4. Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the period5. The Total management fees and other expenses charged by the mutual fund(s) in foreign countries along with

the management fee and recurring expenses charged to the domestic Mutual Fund is as follows :




2016-17

HSBC Managed Solution India - Conservative

0.69% 0.95% 1.64% 2.70%

2015-16

HSBC Managed Solution India - Conservative

0.75% 0.86% 1.62% 2.70%


36




1 Investments:



1.3. Investments in Associates and Group Companies as of the years ended March 31, 2017 & March 31, 2016 are NIL.

1.4. Open positions of Securities Borrowed and / or Lent by the Scheme as of the years ended March 31,2017 & March 31, 2016 are NIL.


1.6. Aggregate Unrealised Gain / Loss as at the end of the fi nancial period and percentage to net assets :



Amount (Rupees)


2017 2016

Units in Domestic Mutual Fund

– Appreciation 611,501,023 17.76 385,295,932 12.36




1.8. Non -Traded securities in the portfolios as at March 31, 2017 & March 31, 2016 are NIL.





Relation

Period Covered


% of Total Business




Fund



2016-2017 87.89 82.13 16,160,689 91.08

37





Relation

Period Covered


% of Total Business




Fund



2015-2016 105.43 89.70 15,633,720 91.55








4 Unit Capital movement during the years ended March 31, 2017 & March 31, 2016:


2016-2017


221,619,118.875 54,135,724.841 52,833,051.017 222,921,792.699 10


34,635,446.213 15,624,642.889 16,760,049.120 33,500,039.982 10


3,866,256.910 226.521 187,599.618 3,678,883.813 10

38




2015-2016


221,730,386.712 73,573,878.332 73,685,146.169 221,619,118.875 10


37,109,518.207 18,148,017.371 20,622,089.365 34,635,446.213 10


99,503.863 3,887,006.078 120,253.031 3,866,256.910 10






In view of the AMFI Best Practices Guidelines Circular No. 56/2015-16, the IEF ( Investor Education Fund) accrual is set aside in a separate bank account and the consolidated balance across all schemes as on March 31, 2017. The break-up of which is as under:










39




40







HSBC Global Consumer Opportunities Fund 4

HSBC Global Consumer Opportunities Fund –Benefiting From China’s Growing Consumption PowerAn Open-ended Fund of Funds Scheme


1


Dear Investor,






2

4 HSBC Global Consumer Opportunities Fund


Warm regards,

Ravi Menon



3













4








HSBC Global Consumer Opportunities Fund (HGCOF) - an open ended Fund of Funds Scheme (Benefi ting from China’s Growing Consumption Power)HGCOF seeks to provide long term capital appreciation by investing predominantly in units of HSBC Global Investment Funds (HGIF) China Consumer Opportunities Fund. 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.

The net assets of HGCOF amounted to Rs. 5.20 crores as at March 31, 2017 as compared to 10.51 crores as on March 31, 2016. Around 98.22 % of the net assets were invested in HSBC Global Consumer Opportunities Fund (overseas mutual fund) 3% of the net assets were invested in reverse repos / CBLO and (-1.22%) in net current assets as at March 31, 2017.

The performance of the underlying fund led to the underperformance in HGCOF relative to its benchmark.


(%)



HSBC Global Consumer Opportunities Fund - Growth 8.46 1.29

MSCI AC World Index (Scheme Benchmark) 12.71 1.88


Rs. 10,000, if invested in HGCOF, would have become 10,846 10,274

Rs. 10,000, if invested in MSCI AC World Index, would have become 11,271 10,400




5







NSE CNX Nifty 18.5%

S&P BSE 100 21.2%

S&P BSE 200 22.5%

S&P BSE 500 24.0%


Source: Bloomberg







6














a. Sponsor



b. HSBC Mutual Fund



7













5. UNCLAIMED DIVIDENDS & REDEMPTIONS Summary of number of investors & corresponding amount Scheme-wise as on March 31, 2017: Nil




8



2016-2017

Com-plaintCode




receivedduring

theyear



ble*

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 6 4 2 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 6 5 0 0 0 0 1 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


1 34 35 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 6 6 0 0 0 0 0 0 0 0

IV Others 0 21 20 0 0 0 0 1 0 0 0

Total 1 73 70 2 0 0 0 2 0 0 0


9



Particulars Count













June 2016 124 101 0 23

September 2016 1,005 880 27 98

December 2016 58 42 9 7

March 2017 39 33 3 3

Total 1,226 1,056 39 131







10






Sd/-

N. P. Gidwani

Chairman



11



HSBC Mutual Fund - HSBC Global Consumer Opportunities Fund - Benefi ting from China’s Growing Consumption Power

Report on the Financial StatementsWe have audited the accompanying fi nancial statements of HSBC Global Consumer Opportunities Fund - Benefi ting from China’s Growing Consumption Power (the ‘Scheme’), which comprise the balance sheet as at 31 March 2017 and the related revenue account for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, annexed thereto.

Management’s Responsibility for the Financial StatementsThe Board of Trustees to the HSBC Mutual Fund (the ‘Board of Trustees’) and HSBC Asset Management (India) Private Limited (the ‘AMC’), being the investment manager to HSBC Mutual Fund (the ‘Fund’) (collectively referred as ‘Management’), are responsible for the preparation of these fi nancial statements that give a true and fair view of the fi nancial position and fi nancial performance of the Scheme in accordance with the accounting policies and standards specifi ed in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, as amended (the ‘Regulations’) and the accounting standards issued by the Institute of Chartered Accountants of India (the ‘ICAI’), to the extent applicable. This responsibility includes maintenance of adequate accounting records for safeguarding of the assets of the Scheme and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal fi nancial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the fi nancial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.


An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fi nancial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the fi nancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to preparation and fair presentation of the fi nancial statements, of the Scheme, in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Scheme’s internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Management, as well as evaluating the overall presentation of the fi nancial statements.






12








Sd/-



13


Rs. in Lakhs

HSBC GLOBAL CONSUMER OPPORTUNITIES FUND – BENEFITING FROM CHINA’S GROWING

CONSUMPTION POWERAs at As at

March 31, 2017 March 31, 2016

LIABILITIES1 Unit Capital 505.85 1,109.532 Reserves & Surplus2.1 Unit Premium Reserves (6.49) (1.48)2.2 Unrealised Appreciation Reserve 28.07 –2.3 Other Reserves (7.35) (56.92)3 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income/Deposits – –4.2 Other Current Liabilities & Provisions 6.82 14.15

TOTAL 526.90 1,065.28

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – –1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities 510.82 1,037.28

Total Investments 510.82 1,037.282 Deposits 0.05 0.163 Other Current Assets3.1 Cash & Bank Balance 0.40 0.073.2 CBLO / Reverse Repo Lending 15.61 12.703.3 Others 0.02 15.074 Deferred Revenue Expenditure – –


TOTAL 526.90 1,065.28



14



Rs. in Lakhs

HSBC GLOBAL CONSUMER OPPORTUNITIES FUND

– BENEFITING FROM CHINA’S GROWING CONSUMPTION POWER

Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016

1 INCOME1.1 Dividend – –1.2 Interest 1.25 2.431.3 Realised Gain / (Loss) on Foreign Exchange Transactions (1.37) 1.531.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of

investments(9.33) (40.66)


(A) (9.45) (36.70)

2 EXPENSES2.1 Management fees 3.81 11.232.2 Service tax on Management fees 0.57 1.552.3 Transfer agents fees and expenses 0.38 0.812.4 Custodian fees 1.84 1.862.5 Trusteeship fees 0.02 0.042.6 Commission to Agents 4.82 11.692.7 Marketing & Distribution expenses 0.01 0.022.8 Audit fees 0.20 0.202.9 Investor Education Expenses 0.15 0.332.10 Other operating expenses 0.52 0.772.11 Less: Expenses to be Reimbursed by the Investment Manager – (0.03)

(B) 12.32 28.47

3 NET REALISED GAINS / (LOSSES)FOR THE YEAR (A - B = C) (21.77) (65.17)

5 NET GAINS / (LOSSES) FOR THE YEAR [E = (C+D)] 26.59 (72.88)

6 Change in unrealised appreciation inthe value of investments and derivatives (F) 28.07 –


7.2 Less: Balance transfer to Unrealised Appreciation Reserve 28.07 –7.3 Add / (Less): Equalisation 22.98 43.897.4 Transfer from Reserve Fund (56.92) (27.93)8 Total (7.35) (56.92)


10 Retained Surplus / (Defi cit) carried forward toBalance sheet (7.35) (56.92)


15





Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016


Open





High





Low





End






End 520 1,051

Average (AAuM)1 731 1,652

3. Gross income as % of AAuM2 -1.29% -2.22%

4. Expense Ratio:







5. Net Income as a percentage of AAuM3 -2.98% -3.94%

6. Portfolio turnover ratio4 – –

16





Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016


Retail



Corporate



8. Returns (%):

a. Last One Year Scheme



Benchmark

MSCI AC World Index 12.7078 (6.2223)

b. Since Inception

Scheme



Benchmark

MSCI AC World Index 1.8824 (7.0433)

1. AAuM=Average daily net assets

2. Gross income = amount against (A) in the Revenue account i.e. Income3. Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the year4. Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year5 The Total management fees and other expenses charged by the underlying fund along with the management

fee and recurring expenses charged by the domestic Mutual Fund is as follows:



Total TER ***

Maximum TER Cap as per

circular***

2016-17

HSBC Global Consumer Opportunities Fund – Benefi ting From China’s Growing Consumption Power

0.70% 1.63% 2.33% 2.70%

2015-16

HSBC Global Consumer Opportunities Fund – Benefi ting From China’s Growing Consumption Power

0.70% 1.64% 2.34% 2.70%


17



HSBC GLOBAL CONSUMER OPPORTUNITIES FUND – BENEFITING FROM CHINA’S GROWING CONSUMPTION POWER

1 Investments:-






1.6. Aggregate Unrealised Gain / Loss as at the end of the fi nancial year and percentage to net assets :



Amount (Rupees)


2017 2016

Foreign Securities

– Appreciation 2,806,628 5.40 – –

– Depreciation – – 4,842,133 4.61

1.7 The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial period 2016-2017 (excluding accretion of discount) is Nil and 59,362,253 respectively being Nil and 81.16% of the average daily net assets.

The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial period 2015-2016 (excluding accretion of discount) is Nil and 113,180,304 respectively being Nil and 68.52% of the average daily net assets.

1.8. Non-Traded securities in the portfolios as at March 31, 2017 & March 31, 2016 are NIL.





Relation

Period Covered





Fund



2016-2017 0.01 3.56 385,884.60 85.37

18




Relation

Period Covered


% of Total Business




Fund



2015-2016 0.14 18.01 969,338 87.60








4 Unit Capital movement during the year ended March 31, 2017 :

Description 2016-2017



10,825,774.705 43,032.929 6,065,616.450 4,803,191.184 10


269,518.254 3,012.443 17,229.812 255,300.885 10




22,300,744.780 202,602.005 11,677,572.080 10,825,774.705 10


250,472.037 20,141.375 1,095.158 269,518.254 10



19



5 No contingent liabilities for the years ended March 31, 2017 & March 31, 2016.


7 Other income credited to the Scheme is Nil.












20










HSBC Monthly Income Plan(Formerly known as HSBC MIP Fund – Savings Plan)An Open-ended Fund*

Abridged Annual Report 2016 - 2017*Monthly income is not assured and is subject to the availability of distributable surplus.

HSBC MIP 6

1

HSBC MIP 6

Dear Investor,






2

6 HSBC MIP


Warm regards,

Ravi Menon



3

HSBC MIP 6












4

6 HSBC MIP







HSBC Monthly Income Plan (HMIP) – an open-ended Fund (Monthly income is not assured and is subject to availability of distributable surplus.)HMIP is an open-ended fund which 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.

The net assets of HSBC Monthly Income Plan amounted to Rs. 290.82 crores as at March 31, 2017 as compared to Rs. 213.78 crores as at March 31, 2016. Around 73.53% of the net assets were invested in debt and money market instruments, 23.72% of the net assets were invested in equities and 2.75% were in net current assets as at March 31, 2017.

HMIP outperformed the index due to equity market outperformance during the period. Fixed income portion was volatile in wake of demonetization during the year.


(%)



HSBC Monthly Income Plan – Growth 12.99 11.06 10.67 9.70

Crisil MIP Blended Index (Scheme Benchmark) 12.30 11.37 9.92 8.08

Crisil 1 Year T-Bill Index (Standard Benchmark) 7.15 7.85 7.54 5.99

Crisil 10 Year Gilt Index (Standard Benchmark) 11.87 11.43 8.79 5.82

Rs. 10,000, if invested in HMIP, would have become 11,299 13,699 16,599 33,655

Rs. 10,000, if invested in Crisil MIP Blended Index, would have become

11,230 13,814 16,045 27,703

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

10,715 12,546 14,382 21,446

Rs. 10,000, if invested in Crisil 10 Year Gilt Index, would have become

11,187 13,835 15,242 20,995



5

HSBC MIP 6






NSE CNX Nifty 18.5%

S&P BSE 100 21.2%

S&P BSE 200 22.5%

S&P BSE 500 24.0%


Source: Bloomberg







6

6 HSBC MIP













a. Sponsor



b. HSBC Mutual Fund



7

HSBC MIP 6
















HSBC MIP Regular Plan 693604.31 219 410476.27 15

HSBC Monthly Income Plan Saving 1259854.40 293 572953.79 17

6. INVESTOR SERVICESThe number of offi cial points of acceptance of transactions is 197 locations. In addition to the offi ces of the Registrar & Transfer agents, the AMC has Investor Service Centres in 8 locations at its own offi ces - namely


8

6 HSBC MIP

Mumbai, New Delhi, Kolkata, Bangaluru, Pune, Ahmedabad, Hyderabad and Chennai. With a view to enhance customer convenience, the AMC has the facility of priority based servicing to key distributors through the enhancement of the Interactive Voice Reponses. The AMC has a single Toll Free number which can be dialed from anywhere in India. The call centre service is being managed by the Registrar and Transfer Agents.



2016-2017

Com-plaintCode




receivedduring

theyear



ble*

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 6 4 2 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 6 5 0 0 0 0 1 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


1 34 35 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 6 6 0 0 0 0 0 0 0 0


9

HSBC MIP 6

2016-2017

Com-plaintCode




receivedduring

theyear



ble*

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months

IV Others 0 21 20 0 0 0 0 1 0 0 0

Total 1 73 70 2 0 0 0 2 0 0 0


Particulars Count




# active folios

** As per AMFI Best Practice Guidelines Circular No.25/2011-12 for Revisions in the Guidelines on Standardization of Complaints / Grievances Reporting Procedure. If “Others” include a type of complaint which is more than 10% of overall complaints, then such a reason should be provided separately. Hence data corrections in Investor Details is included as a separate category








June 2016 124 101 0 23

September 2016 1,005 880 27 98

December 2016 58 42 9 7

March 2017 39 33 3 3

Total 1,226 1,056 39 131

In terms of the requirement of SEBI Circular no. CIR/IMD/DF/05/2014 dated March 24, 2014 and SEBI/HO/IMD/DF2/CIR/P/2016/68 dated August 10, 2016; the AMC has obtained certifi cate from M/s. M. P. Chitale & Co., Chartered Accountants, who is acting as a Scrutinizer, on the voting report for the FY 2016-17. The


10

6 HSBC MIP

certifi cate dated April 20, 2017 issued by M/s. M. P. Chitale & Co., is available on the website of the AMC as part of the full Annual Report.









Sd/-

N. P. Gidwani

Chairman



11

HSBC MIP 6



HSBC Mutual Fund – HSBC Monthly Income Plan (Formerly known as HSBC MIP Fund – Savings Plan)

Report on the Financial StatementsWe have audited the accompanying fi nancial statements of HSBC Monthly Income Plan (formerly known as HSBC MIP Fund - Savings Plan) (the ‘Scheme’), which comprise the balance sheet as at 31 March 2017 and the related revenue account for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, annexed thereto.








12

6 HSBC MIP

Report on other legal and regulatory requirements1) As required by Regulation 55(4) to the Regulations, we report that:




3) In our opinion and on the basis of information and explanations given to us, the methods used to value non - traded securities, as at 31 March 2017, as determined by the Board of Directors of AMC, are in accordance with the Regulations and other guidelines issued by the Securities and Exchange Board of India as applicable and approved by the Board of Trustees are fair and reasonable.


Sd/-




13

HSBC MIP 6


Rs. in Lakhs

HSBC MONTHLY INCOME PLANAs at

March 31, 2017As at

March 31, 2016

LIABILITIES1 Unit Capital 14,259.77 11,247.70 2 Reserves & Surplus2.1 Unit Premium Reserves 1,560.89 927.41 2.2 Unrealised Appreciation Reserve 1,320.48 594.07 2.3 Other Reserves 11,954.22 8,692.30 3 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 188.05 161.95

TOTAL 29,283.41 21,623.43

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares 6,898.66 5,343.35 1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds 8,740.90 4,648.60 1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds 501.70 - 1.3.5 Securitised Debt securities – –1.4 Government Securities 11,455.68 10,092.46 1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – 790.35 1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –

Total Investments 27,596.94 20,874.76 2 Deposits 12.59 9.37 3 Other Current Assets3.1 Cash & Bank Balance 47.66 80.41 3.2 CBLO / Reverse Repo Lending 679.16 208.17 3.3 Others 947.06 450.72 4 Deferred Revenue Expenditure (to the extent not written off) – –

TOTAL 29,283.41 21,623.43


14

6 HSBC MIP

Rs. in Lakhs

HSBC MONTHLY INCOME PLANCurrent


Previous Year ended

March 31, 2016

1 INCOME1.1 Dividend 51.91 63.90 1.2 Interest 1,398.85 1,312.47 1.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of

investments– –


1,226.78 609.15


(A) 2,677.54 1,985.52 2 EXPENSES2.1 Management fees 317.32 233.85 2.2 Service tax on Management fees 47.60 32.39 2.3 Transfer agents fees and expenses 10.59 10.36 2.4 Custodian fees 0.84 0.84 2.5 Trusteeship fees 0.89 0.59 2.6 Commission to Agents 231.64 231.98 2.7 Marketing & Distribution expenses 1.02 1.35 2.8 Audit fees 1.66 0.79 2.9 Investor Education Expenses 4.89 4.31 2.10 Other operating expenses 6.47 4.45 2.11 Expenses to be Reimbursed by the Investment Manager (8.17) –


FOR THE YEAR (A – B = C) 2,062.79 1,464.61 4 Change in Unrealised Depreciation in

value of investments (D) – –

5 NET GAINS / (LOSSES) FOR THE YEAR [E = (C+D)] 2,062.79 1,464.61 6 Change in unrealised appreciation in the

value of investments (F) 726.40 (965.69)7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 2,789.19 498.92

7.1 Add: Balance transfer from Unrealised Appreciation Reserve

– 965.69

7.2 Less: Balance transfer to Unrealised Appreciation Reserve 726.40 –7.3 Add / (Less): Equalisation 2,128.79 1,070.69 7.4 Transfer from Reserve Fund 8,692.30 6,978.27 7.5 Transfer from Unit Premium Reserve – –8 Total 12,883.88 9,513.57 9 Dividend appropriation9.1 Income Distributed during the year (670.63) (592.09)9.2 Tax on income distributed during the year (259.03) (229.18)10 Retained Surplus / (Defi cit) carried forward

to Balance sheet 11,954.22 8,692.30



15

HSBC MIP 6




Previous Year ended

March 31, 2016


Open


Monthly Dividend Option 12.9427 13.7738

Quarterly Dividend Option 12.8672 13.6843


Direct Plan - Monthly Dividend Option 14.0813 14.6259

Direct Plan - Quarterly Dividend Option 13.5589 14.3110

High







Low







End








End 29,082 21,378

Average (AAuM)1 24,456 21,563


4. Expense Ratio:


Growth Option 2.52% 2.42%

Direct Plan - Growth Option 1.98% 1.92%

16

6 HSBC MIP




Previous Year ended

March 31, 2016


Growth Option 1.30% 1.08%



6. Portfolio turnover ratio – –


Retail



Direct Plan - Monthly Dividend Option – 0.6789


Corporate





8. Returns (%):

a. Last One Year

Scheme



Benchmark

CRISIL MIP Blended Index 12.2956 5.6525

b. Since Inception

Scheme



Benchmark


1. AAuM = Average daily net assets.2. Gross income = amount against (A) in the Revenue account i.e. Income.3. Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the year.

17

HSBC MIP 6


HSBC Monthly Income Plan

1 Investments:


1.2. Open Positions of derivatives as of year ended March 31, 2017 is NIL. Open Positions of derivatives as of year ended March 31, 2016 is NIL.

1.3. Investments in Associates and Group Companies as of years ended March 31, 2017 and March 31, 2016.

(Rupees)



by all schemes

Amount Aggregate Investments by

all schemes

March 31, 2017 March 31, 2016



50,270,700 1,452,436,300 35,169,750 402,773,900

Equities – 94,659,583 21,456,037 47,680,367


1.4. Open position of Securities Borrowed and / or Lent by the Scheme as of fi nancial years ended March 31, 2017 and March 31, 2016 are NIL.

1.5. NPAs as on March 31, 2017 and March 31, 2016 are NIL.

1.6. Aggregate Unrealised Gain / Loss as at the end of the fi nancial years 2017 and 2016 and their percentage to net assets are as under :

Security Category March 31, 2017 March 31, 2016

Amount(Rs.)

Percentage to Net Assets (%)

Amount(Rs.)


Equity Shares

– Appreciation 165,536,178 5.69 98,225,972 4.59

– Depreciation 40,313,592 1.39 47,270,146 2.21

Non-Convertible Debentures and Bonds Listed / Awaiting Listing

– Appreciation 7,847,368 0.27 1,695,200 0.08

– Depreciation 2,197,380 0.08 675,570 0.02

Government Securities

– Appreciation 4,791,783.72 0.16 7,383,643 0.35

– Depreciation 3,616,778.14 0.12 – –

Commercial Paper / Certifi cate of Deposit

– Appreciation – – 48,225 0.00 ~


~ Indicates less than 0.01

18

6 HSBC MIP

1.7. The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2016-17 (excluding accretion of discount) are Rs. 4,635,146,230 and Rs. 4,917,390,745 being 189.53% and 201.07% of the average daily net assets.

The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2015-16 (excluding accretion of discount) are Rs. 4,227,968,397 and Rs. 3,953,877,417 being 196.08% and 183.37% of the average daily net assets.

1.8. Non-Traded securities in the portfolio: Aggregate Value of Equity, Debt & Money Market Instruments and percentage to net assets is as under :

Security Category Amount(Rs.)


Amount(Rs.)


2017 2016

Equities – – 9,716,490 0.45%

Debt Instruments 753,503,467 25.91% 464,859,520 21.74%

Money Market Instruments – – 79,035,440 3.70%

Total 753,503,467 25.91% 553,611,450 25.90%






Relation

Period Covered


% of Total Business


Commission paid [Rupees]


Fund



2016-2017 88.04 43.24 6,549,074 31.81



Relation

Period Covered


% of Total Business




Fund



2015-2016 34.62 24.13 5,327,497 24.42




relation

Period Covered


[Rs. In Crores]

% of total value of

transaction of the fund



paid by the fund


Sponsor 2016-2017 – – – –


19

HSBC MIP 6



relation

Period Covered


[Rs. In Crores]

% of total value of

transaction of the fund


(on accrual basis)


paid by the fund


Sponsor 2015-2016 1.90 1.71 22,884.65 3.65







3 None of the Investors held more than 25% of the total net assets of the schemes at the years ended March 31, 2017 and March 31, 2016.


Description Opening Units Subscription Redemption Closing Units Face Value per unit (Rs.)

2016–2017

Growth Option 40,691,714.524 33,559,634.111 25,389,297.275 48,862,051.360 10

Monthly Dividend Option

52,399,045.765 57,771,010.165 39,561,685.766 70,608,370.164 10

Quarterly Dividend Option

18,925,865.373 9,776,699.579 6,188,874.837 22,513,690.115 10


386,315.422 233,932.920 102,681.192 517,567.150 10

Direct Plan - Monthly Dividend Option

62,168.782 51,861.554 28,870.000 85,160.336 10

Direct Plan - Quarterly Dividend Option

11,885.441 693.583 1,681.759 10,897.265 10


20

6 HSBC MIP

Description Opening Units Subscription Redemption Closing Units Face Value per unit (Rs.)

2015-2016

Growth Option 35,459,516.375 27,745,170.014 22,512,971.865 40,691,714.524 10

Monthly Dividend Option

46,100,913.211 34,955,758.224 28,657,625.670 52,399,045.765 10

Quarterly Dividend Option

17,755,316.260 6,410,299.745 5,239,750.632 18,925,865.373 10


153,726.932 237,121.310 4,532.820 386,315.422 10


78,733.760 6,223.524 22,788.502 62,168.782 10


14,163.025 1,687.508 3,965.092 11,885.441 10


5 Prior year amounts have been re-grouped / re-arranged where necessary.



8 Other income NIL (2016: Rs. 140 /- represents Fractional amount received on bonus shares of Mothersons Sumi.)











10 Garnishee Notices :

An Income tax demand of Rs. 32.58 crores was purported to be recovered under garnishee proceedings, by Income Tax Authorities in respect of investments made in Pass through Certifi cates (PTC) by some of the debt schemes (including matured schemes) of HSBC Mutual Fund (HSBC MF), for A.Y. 2009-2010.The said demand, impacting various mutual fund players in the industry, raised originally on the trusts sponsored by IL&FS Trust Company Ltd., (Appellants) was sought to be also recovered u/s 177(3) of the Income Tax Act, from HSBC MF. Against the demand an appeal was fi led by the Appellant with the fi rst Appellate Authority CIT(A)] and thereafter with ITAT. ITAT decided the issue in favour of the Appelant.


21

HSBC MIP 6

Similar to AY 2009-10, HSBC MF had received a demand notice from the Income Tax authorities for AY 2010-11 for Rs. 6.95 crores. ITAT has passed an order in favour of the appellant for this year as well.

Assessment for the A.Y. 2007-2008 has also been reopened by the Income Tax Authorities and demand has been made of Rs. 2.04 Crores on the trust sponsored by IL&FS Trust Company Ltd. HSBC MF has not received any demand notice from the Income Tax authorities for this assessment year. ITAT has passed an order in favour of the appellant for this year as well No intimation of tax department fi ling further appeal has been received by the appellate or HSBC MF.

11 Merger

Merger of HSBC MIP Regular Plan (MIPR) in to HSBC MIP Savings Plan (MIPS) and to rename it as HSBC Monthly Income Plan

The Board of Directors of HSBC Asset Management (India) Private limited and Board of Trustees of HSBC Mutual Fund have approved the merger of MIPR into MIPS in their meetings held on May 18, 2016 and May 20, 2016 respectively. SEBI has also granted it’s no objection to the aforesaid merger vide its letter dated July 28, 2016. Accordingly, a notice was published on August 29, 2016 giving an option to the unit holders of MIPR to exit during the period from September 8, 2016 to October 7, 2016 at the applicable NAV, without payment of exit load, if any and sale of units in the MIPR was suspended effective from September 8, 2016. The MIPR was merged into MIPS and MIPS was renamed as HSBC Monthly Income Plan effective from October 8, 2016. Accordingly, the MIPR ceased to exist from October 8, 2016. The unit holders of MIPR who have not exercised the exit option during the aforesaid exit window have been allotted units of MIPS at the NAV declared as on the close of business hours on the Effective Date i.e. October 8, 2016.

Details of scheme merged are as follows :-

Transferor Scheme Surviving Scheme Net assets taken over

Face value of units issued

Unit premium of units issued

HSBC MIP Regular Plan HSBC Monthly Income Plan

785,403,968 370,943,771 414,460,197



22

6 HSBC MIP



23

HSBC MIP 6






HSBC INCOME FUND 18

HSBC Income FundAn Open-ended Income Scheme


1

HSBC INCOME FUND 18

Dear Investor,






2

18 HSBC INCOME FUND


Warm regards,

Ravi Menon



3

HSBC INCOME FUND 18












4

18 HSBC INCOME FUND







HSBC Income Fund (HIF) – an open-ended Income Scheme HIF seeks to generate reasonable income through a diversifi ed portfolio of fi xed income securities. The AMC’s view of interest rate trends and the nature of the plans will be refl ected in the type and maturities of securities in which the Short Term and Investment Plans are invested.

The Scheme has two plans – the Investment Plan and the Short Term Plan. The net assets of HSBC Income Fund – Investment Plan (HIF – IP) amounted to Rs. 56.72 crores as at March 31, 2017 as compared to Rs. 77.65 crores as at March 31, 2016. Around 92.68% of the net assets was invested in debt and money market instruments, 3.55% of the net assets was invested in reverse repos / CBLO and 3.77 % in net current assets as at March 31, 2017. The net assets of HSBC Income Fund – Short Term Plan (HIF – STP) amounted to Rs. 1990.87 crores as at March 31, 2017 as compared to Rs. 1453.82 crores as at March 31, 2016. Around 97.18% of the net assets were invested in debt and money market instruments, 0.45% of the net assets were invested in reverse repos / CBLO and 2.37% in net current assets as at March 31, 2017.

HIF - IP

HIF-IP underperformed its scheme’s benchmark due to volatility in the G-sec segment due to demonetization.


(%)



HSBC Income Fund - Investment Plan - Regular - Growth 9.17 9.56 8.27 7.26

CRISIL Composite Bond Fund Index (Scheme Benchmark) 11.09 11.26 9.45 6.86

CRISIL 10 Year Gilt Index (Standard Benchmark) 11.87 11.43 8.79 6.34

Rs. 10,000, if invested in HIF - IP, would have become 10,917 13,151 14,876 27,260

Rs. 10,000, if invested in CRISIL Composite Bond Fund Index, would have become

11,109 13,774 15,705 25,859

Rs. 10,000, if invested in CRISIL10 Year Gilt Index, would have become

11,187 13,835 15,242 24,124


5

HSBC INCOME FUND 18

HIF - STP

HIF-STP underperformed its scheme’s benchmark due to volatility caused by demonetization during the year. However, the direct plan outperformed the index by 20 bps.


(%)



HSBC Income Fund - Short Term Plan- Regular Plan - Growth

8.26 8.54 8.45 7.16

CRISIL Short Term Bond Fund Index (Scheme Benchmark) 9.10 9.29 9.15 7.19

CRISIL 1 Year T-Bill Index (Standard Benchmark) 7.15 7.85 7.54 5.94

Rs. 10,000, if invested in HIF -ST, would have become 10,826 12,785 15,002 26,913

Rs. 10,000, if invested in CRISIL Short Term Bond Fund Index, would have become

10,910 13,053 15,492 27,015

Rs. 10,000, if invested in CRISIL 1 Year T-Bill Index, would have become

10,715 12,546 14,382 22,845







NSE CNX Nifty 18.5%

S&P BSE 100 21.2%

S&P BSE 200 22.5%

S&P BSE 500 24.0%


Source: Bloomberg


6

18 HSBC INCOME FUND















7

HSBC INCOME FUND 18





a. Sponsor



b. HSBC Mutual Fund









8

18 HSBC INCOME FUND









HSBC Income Fund Investment Plan 790795.94 336 1691635.26 33

HSBC Income Fund Short Term Plan 462686.69 24 1100746.88 3




2016-2017

Com-plaintCode




receivedduring

theyear



ble*

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 6 4 2 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 6 5 0 0 0 0 1 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


9

HSBC INCOME FUND 18

2016-2017

Com-plaintCode




receivedduring

theyear



ble*

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 0 0 0 0 0 0 0 0 0 0


1 34 35 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 6 6 0 0 0 0 0 0 0 0

IV Others 0 21 20 0 0 0 0 1 0 0 0

Total 1 73 70 2 0 0 0 2 0 0 0


Particulars Count









10

18 HSBC INCOME FUND






June 2016 124 101 0 23

September 2016 1,005 880 27 98

December 2016 58 42 9 7

March 2017 39 33 3 3

Total 1,226 1,056 39 131










Sd/-

N. P. Gidwani

Chairman



11

HSBC INCOME FUND 18



HSBC Mutual Fund - HSBC Income Fund - Investment Plan

Report on the Financial StatementsWe have audited the accompanying fi nancial statements of HSBC Income Fund - Investment Plan (the ‘Scheme’), which comprise the balance sheet as at 31 March 2017 and the related revenue account for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, annexed thereto.








12

18 HSBC INCOME FUND








Sd/-



13

HSBC INCOME FUND 18



HSBC Mutual Fund - HSBC Income Fund - Short Term Plan

Report on the Financial StatementsWe have audited the accompanying fi nancial statements of HSBC Income Fund - Short Term Plan (the ‘Scheme’), which comprise the balance sheet as at 31 March 2017, the related revenue account and the cash fl ow statement for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, annexed thereto.









14

18 HSBC INCOME FUND








Sd/-



15

HSBC INCOME FUND 18

Rs. in Lakhs

HSBC INCOME FUND – INVESTMENT PLAN

As atMarch 31, 2017

As atMarch 31, 2016

LIABILITIES1 Unit Capital 2,327.77 3,246.74 2 Reserves & Surplus2.1 Unit Premium Reserves (493.80) (405.90)2.2 Unrealised Appreciation Reserve 53.72 109.38 2.3 Other Reserves 3,783.83 4,814.37 3 Loans & Borrowings – – 4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – – 4.2 Other Current Liabilities & Provisions 34.18 26.49

TOTAL 5,705.70 7,791.08

ASSETS1 Investments1.1 Listed Securities: – – 1.1.1 Equity Shares – – 1.1.2 Preference Shares – – 1.1.3 Equity Linked Debentures – – 1.1.4 Other Debentures & Bonds 1,975.42 1,728.35 1.1.5 Securitised Debt securities – 6.82 1.2 Securities Awaited Listing:1.2.1 Equity Shares – – 1.2.2 Preference Shares – – 1.2.3 Equity Linked Debentures – – 1.2.4 Other Debentures & Bonds – – 1.2.5 Securitised Debt securities – – 1.3 Unlisted Securities – – 1.3.1 Equity Shares – – 1.3.2 Preference Shares – – 1.3.3 Equity Linked Debentures – – 1.3.4 Other Debentures & Bonds 301.02 –1.3.5 Securitised Debt securities – – 1.4 Government Securities 2,978.67 5,518.14 1.5 Treasury Bills – – 1.6 Commercial Paper – –1.7 Certifi cate of Deposits – 148.19 1.8 Bill Rediscounting – – 1.9 Units of Domestic Mutual Fund – – 1.10 Foreign Securities – –


TOTAL 5,705.70 7,791.08



16

18 HSBC INCOME FUND

Rs. in Lakhs

HSBC INCOME FUND – SHORT TERM PLAN

As atMarch 31, 2017

As atMarch 31, 2016

LIABILITIES1 Unit Capital 97,385.88 76,226.55 2 Reserves & Surplus2.1 Unit Premium Reserves 10,515.38 7,499.56 2.2 Unrealised Appreciation Reserve 632.32 244.53 2.3 Other Reserves 91,533.26 63,340.81 3 Loans & Borrowings – – 4 Current Liabilities & Provisions4.1 Provision for doubtful Income/Deposits – – 4.2 Other Current Liabilities & Provisions 564.14 1,733.99

TOTAL 200,630.98 149,045.44

ASSETS1 Investments1.1 Listed Securities: – – 1.1.1 Equity Shares – – 1.1.2 Preference Shares – – 1.1.3 Equity Linked Debentures – – 1.1.4 Other Debentures & Bonds 169,323.14 100,786.84 1.1.5 Securitised Debt securities – – 1.2 Securities Awaited Listing:1.2.1 Equity Shares – – 1.2.2 Preference Shares – – 1.2.3 Equity Linked Debentures – – 1.2.4 Other Debentures & Bonds – – 1.2.5 Securitised Debt securities – – 1.3 Unlisted Securities – – 1.3.1 Equity Shares – – 1.3.2 Preference Shares – – 1.3.3 Equity Linked Debentures – – 1.3.4 Other Debentures & Bonds 4,034.72 2,012.68 1.3.5 Securitised Debt securities – – 1.4 Government Securities 19,564.90 19,539.05 1.5 Treasury Bills – – 1.6 Commercial Paper 494.35 7,865.61 1.7 Certifi cate of Deposits – 12,319.05 1.8 Bill Rediscounting – – 1.9 Units of Domestic Mutual Fund – – 1.10 Foreign Securities – –


2 Deposits 93.40 24.40 3 Other Current Assets3.1 Cash & Bank Balance 138.63 1,482.48 3.2 CBLO/Reverse Repo Lending 901.92 1,534.71 3.3 Others 6,079.92 3,480.62 4 Deferred Revenue Expenditure (to the extent not written off) – –

TOTAL 200,630.98 149,045.44



17

HSBC INCOME FUND 18


Rs. in Lakhs

HSBC INCOME FUND – INVESTMENT PLAN

Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016

1 INCOME1.1 Dividend – –1.2 Interest 498.91 795.00 1.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of

investments– –


316.75 86.25


(A) 815.66 881.25 2 EXPENSES2.1 Management fees 71.22 104.57 2.2 Service tax on Management fees 10.62 14.55 2.3 Transfer agents fees and expenses 2.36 4.38 2.4 Custodian fees 0.11 0.14 2.5 Trusteeship fees 0.09 0.13 2.6 Commission to Agents 23.01 35.30 2.7 Marketing & Distribution expenses 0.04 - 2.8 Audit fees 0.20 0.20 2.9 Investor Education Expenses 1.34 2.02 2.10 Other operating expenses 0.64 2.07 2.11 Less : Expenses to be Reimbursed by the Investment Manager – (0.63)


FOR THE YEAR (A – B = C) 706.03 718.52 4 Change in Unrealised Depreciation

in value of investments (D) (1.36) 0.22 5 NET GAINS / (LOSSES) FOR THE YEAR [E = (C+D)] 704.67 718.74 6 Change in unrealised appreciation

in the value of investments (F) (55.66) (225.73)7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 649.01 493.01 7.1 Add : Balance transfer from Unrealised

Appreciation Reserve 55.66 225.73 7.2 Less : Balance transfer to Unrealised Appreciation Reserve – –7.3 Add / (Less): Equalisation (1,698.18) (1,761.90)7.4 Transfer from Reserve Fund 4,814.37 5,890.22 7.5 Transfer from Unit Premium Reserve – –8 Total 3,820.86 4,847.06 9 Dividend Appropriation9.1 Income Distributed during the year (26.73) (23.59)9.2 Tax on income distributed during the year (10.30) (9.10)10 Retained Surplus / (Defi cit) carried forward to

Balance Sheet 3,783.83 4,814.37


18

18 HSBC INCOME FUND


Rs. in Lakhs


Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016

1 INCOME1.1 Dividend – –1.2 Interest 18,228.70 13,342.98 1.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of

investments 1,723.64 527.71

1.6 Realised Gains / (Losses) on Derivative Transactions – –1.7 Other Income – 0.01

(A) 19,952.34 13,870.70 2 EXPENSES2.1 Management fees 897.08 709.38 2.2 Service tax on Management fees 133.50 100.62 2.3 Transfer agents fees and expenses 85.23 79.04 2.4 Custodian fees 11.80 8.98 2.5 Trusteeship fees 1.73 1.48 2.6 Commission to Agents 875.82 565.52 2.7 Marketing & Distribution expenses 1.74 2.91 2.8 Audit fees 3.26 3.66 2.9 Investor Education Expenses 46.49 31.53 2.10 Other operating expenses 16.61 23.52 2.11 Less : Expenses to be Reimbursed by the

Investment Manager– –

(B) 2,073.26 1,526.64 3 NET REALISED GAINS / (LOSSES)

FOR THE YEAR (A – B = C) 17,879.08 12,344.06 4 Change in Unrealised Depreciation

in value of investments (D) (69.64) –5 NET GAINS / (LOSSES) FOR THE YEAR [E = (C+D)] 17,809.44 12,344.06 6 Change in unrealised appreciation

in the value of investments (F) 387.79 (533.45)7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 18,197.23 11,810.61

7.1 Add : Balance transfer from Unrealised Appreciation Reserve – 533.45

7.2 Less : Balance transfer to Unrealised Appreciation Reserve 387.79 –7.3 Add / (Less): Equalisation 13,220.02 4,695.02 7.4 Transfer from Reserve Fund 63,340.81 48,977.66 7.5 Transfer from Unit Premium Reserve – –8 Total 94,370.27 66,016.74 9 Dividend Appropriation9.1 Income Distributed during the year (2,036.71) (1,916.23)9.2 Tax on income distributed during the year (800.30) (759.70)10 Retained Surplus / (Defi cit) carried forward to

Balance Sheet 91,533.26 63,340.81


19

HSBC INCOME FUND 18


HSBC INCOME FUND –INVESTMENT PLAN

CurrentYear ended

March 31, 2017

PreviousYear ended

March 31, 2016


Open

Regular Growth Option 24.9657 23.7966

Regular Dividend Option – –

Regular Quarterly Dividend Option 10.9417 11.3683

Regular Weekly Dividend Option – –

Regular Monthly Dividend Option – –

Institutional Growth Option – –

Institutional Dividend Option – –

Institutional Weekly Dividend Option – –

Institutional Monthly Dividend Option – –

Institutional Plus Growth Option – –

Institutional Plus Weekly Dividend Option – –

Institutional Plus Monthly Dividend Option – –



Direct Plan - Weekly Dividend Option – –

Direct Plan - Monthly Dividend Option – –

Direct Plan - Quarterly Dividend Option – 10.0000

High

















Direct Plan - Quarterly Dividend Option – –

20

18 HSBC INCOME FUND



CurrentYear ended

March 31, 2017

PreviousYear ended

March 31, 2016

Low


















End


















21

HSBC INCOME FUND 18



CurrentYear ended

March 31, 2017

PreviousYear ended

March 31, 2016


End 5,672 7,765

Average (AAuM)1 6,677 10,093


4. Expense Ratio:


Regular Growth Option 1.99% 1.98%












Retail









Corporate









22

18 HSBC INCOME FUND



CurrentYear ended

March 31, 2017

PreviousYear ended

March 31, 2016

8. Returns (%):

a. Last One Year

Scheme


Institutional Growth Option N.A. N.A.

Institutional Plus Growth Option N.A. N.A.


Benchmark

CRISIL Composite Bond Fund Index 11.0896 8.2153

b. Since Inception

Scheme



Benchmark



23

HSBC INCOME FUND 18



CurrentYear ended

March 31, 2017

PreviousYear ended

March 31, 2016


Open



Regular Quarterly Dividend Option – –

Regular Weekly Dividend Option 10.2169 10.2245

Regular Monthly Dividend Option – 11.1550

Institutional Growth Option – 10.0000


Institutional Weekly Dividend Option 13.2695 13.3113

Institutional Monthly Dividend Option 11.9946

Institutional Plus Growth Option 14.6519 13.5486

Institutional Plus Weekly Dividend Option 10.1875 10.2186

Institutional Plus Monthly Dividend Option – 10.0000



Direct Plan - Weekly Dividend Option 10.2424 10.2514



High



Regular Quarterly Dividend Option 10.0419 –


Regular Monthly Dividend Option 11.4221 11.2210




Institutional Monthly Dividend Option – 12.0705









24

18 HSBC INCOME FUND



CurrentYear ended

March 31, 2017

PreviousYear ended

March 31, 2016

Low


















End











Institutional Plus Weekly Dividend Option – 10.1875







25

HSBC INCOME FUND 18



CurrentYear ended

March 31, 2017

PreviousYear ended

March 31, 2016


End 199,087 145,382

Average (AAuM)1 232,457 157,670


4. Expense Ratio:



Institutional Growth Option 0.75% 0.74%

Institutional Plus Growth Option 0.65% 0.66%










Retail









Corporate









26

18 HSBC INCOME FUND



CurrentYear ended

March 31, 2017

PreviousYear ended

March 31, 2016

8. Returns (%):

a. Last One Year

Scheme





Benchmark

CRISIL Short-Term Bond Fund Index 9.1042 8.4419

b. Since Inception

Scheme





Benchmark



27

HSBC INCOME FUND 18

HSBC INCOME FUND – INVESTMENT PLAN AND SHORT TERM PLAN

1 Investments:


1.2. Open Positions of derivatives as of years ended March 31, 2017 and March 31, 2016 is NIL.

1.3. Investments in Associates and Group Companies:(Rupees)



by all schemes


all schemes

2017 2016

INVESTMENT PLAN



40,216,560 1,452,436,300 50,242,500 402,773,900

Equities – 94,659,583 – 47,680,367




by all schemes


all schemes

2017 2016

SHORT TERM PLAN



850,000,000 1,452,436,300 – 402,773,900

Equities – 94,659,583 – 47,680,367


1.4. Open position of Securities Borrowed and / or Lent by the Scheme as of the years ended March 31, 2017 and March 31, 2016 are NIL.

1.5. NPAs for the Scheme for the years ended March 31, 2017 and March 31, 2016 are NIL.

1.6. Aggregate Unrealised Gain / Loss as at the end of the fi nancial years 2017 and 2016 and their percentages to net assets are as under :

Security Type Amount (Rupees)


Amount (Rupees)


INVESTMENT PLAN

March 31, 2017 March 31, 2016

Non Convertible Debentures and Bonds Listed / Awaiting Listing

– Appreciation 5,988,462 1.06 4,788,940 0.62

– Depreciation 616,080 0.11 – –

Certifi cate of Deposits

– Appreciation – – 9,042 0.00~



28

18 HSBC INCOME FUND



Amount (Rupees)


INVESTMENT PLAN

March 31, 2017 March 31, 2016

Asset Backed Securities


– Depreciation – – 18,181 0.00~


– Appreciation 1,193,193 0.21 6,140,266 0.79

– Depreciation 1,347,573 0.24 106 0.00~




Amount (Rupees)


SHORT TERM PLAN

March 31, 2017 March 31, 2016


– Appreciation 96,328,988 0.48 20,496,617 0.14

– Depreciation 33,096,914 0.17 16,057,301 0.11

Certifi cate of Deposits

– Appreciation – – 5,451,999 0.04


Asset Backed Securities




– Appreciation 6,446,313 0.03 14,322,479 0.10

– Depreciation 13,410,769 0.07 – 0.00~


1.7. The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2016-17 (excluding accretion of discount) are Rs. 1,974,710,593 and Rs. 2,214,714,439 respectively being 295.73% and 331.68% of the average daily net assets for Investment Plan and Rs. 47,429,622,469 and Rs. 42,609,787,503 respectively being 204.04% and 183.30% of the average daily net assets for Short Term Plan.

The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2015-16 (excluding accretion of discount) are Rs. 3,070,375,805 and Rs. 3,318,712,507 respectively being 304.22% and 328.83% of the average daily net assets for Investment Plan and Rs. 28,966,534,828 and Rs. 27,721,277,711 respectively being 183.72% and 175.82% of the average daily net assets for Short Term Plan.

1.8. Non-Traded securities in the portfolio:

Aggregate Value of Equity, Debt & Money Market Instruments and percentage to net assets are as under:


29

HSBC INCOME FUND 18


Security Category INVESTMENT PLAN

2017 2016

Fair Value (Rupees)


Fair Value (Rupees)


Debt Instruments 207,918,917 36.66 173,517,330 22.35

Money Market Instruments – – 14,819,145 1.91

Total 207,918,917 36.66 188,336,475 24.26

Security Category SHORT TERM PLAN

2017 2016

Fair Value (Rupees)


Fair Value (Rupees)


Debt Instruments 17,093,785,708 85.86 9,120,693,070 62.74

Money Market Instruments 49,434,645 0.25 2,018,466,400 13.88

Total 17,143,220,353 86 11,139,159,470 76.62


During the year 2016-17, The Hong Kong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid collection/bank charges are Nil for Short Term Plan and Investment Plan.

During the year 2015-16, The Hong Kong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid collection/bank charges are Nil for Short Term Plan and Investment Plan.





Relation

Period Covered





Fund

INVESTMENT PLAN


Associate 2016-2017 12.79 65.50 797,837.46 37.38


Associate 2015-2016 6.27 41.00 919,352.86 28.64

30

18 HSBC INCOME FUND



Relation

Period Covered


% of Total Business




Fund

SHORT TERM PLAN


Associate 2016-2017 772.05 19.00 33,482,489.32 39.08


Associate 2015-2016 697.56 40.40 26,139,711.23 55.90

The brokerage paid was at rates similar to those offered to other brokers / distributors and the Commission/Brokerage paid to related party includes both upfront and trial and hence not comparable with the % of business brought and % of commission paid.





(iv) Subscription to any issue of equity or debt on private placement basis where the sponsor or its associate companies have acted as arranger or manager.- Nil. ( Previous year also Nil)

3 None of the Investors held more than 25% of the total net assets of Investment Plan and Short Term Plan as at the years ended on March 31, 2017 and March 31, 2016.


INVESTMENT PLAN


2016–2017

Regular Dividend Option

3,024,737.783 6,311,517.880 4,588,207.038 4,748,048.625 10

Regular Growth Option

16,780,873.098 3,294,869.957 12,223,227.544 7,852,515.511 10


12,661,792.774 257,390.970 2,242,033.177 10,677,150.567 10

2015–2016


3,506,118.794 1,284,648.595 1,766,029.606 3,024,737.783 10


20,867,744.911 5,104,186.952 9,191,058.765 16,780,873.098 10


21,505,643.851 613,125.413 9,456,976.490 12,661,792.774 10


31

HSBC INCOME FUND 18

SHORT TERM PLAN

Description Opening Units Subscription Redemption Closing Units Face Value

per unit (Rupees)

2016–2017


173,185,872.078 283,174,133.999 218,559,680.051 237,800,326.026 10


283,130,329.022 391,286,628.634 277,487,853.881 396,929,103.775 10

Regular Quarterly Option

– 305,000.000 5,000.000 300,000.000 10

Regular Weekly Dividend Option

96,697,381.334 167,480,793.308 123,142,298.088 141,035,876.554 10

Institutional Dividend Option

– – – – 10

Institutional Growth Option

– – – – 10

Institutional Weekly Dividend Option

599,442.020 – – 599,442.020 10

Institutional Plus Growth Option

20,431,475.616 – – 20,431,475.616 10

Institutional Plus Weekly Dividend Option

20,163,437.936 – 20,163,437.936 – 10


166,478,621.239 935,406,401.448 927,672,998.960 174,212,023.727 10


87,619.808 424,628.523 420,058.455 92,189.876 10

Direct Plan - Weekly Dividend Option

1,491,346.402 3,161,391.362 2,194,404.965 2,458,332.799 10

2015–2016


217,742,895.128 220,394,907.268 264,951,930.318 173,185,872.078 10


233,120,466.473 319,630,309.211 269,620,446.662 283,130,329.022 10


88,445,213.028 147,542,903.285 139,290,734.979 96,697,381.334 10

Institutional Dividend Option

574,716.029 – 574,716.029 – 10


– – – – 10


599,442.020 – – 599,442.020 10


20,431,475.616 – – 20,431,475.616 10


32

18 HSBC INCOME FUND

SHORT TERM PLAN

Description Opening Units Subscription Redemption Closing Units Face Value

per unit (Rupees)


20,163,437.936 – – 20,163,437.936 10


168,843,411.730 211,122,139.806 213,486,930.297 166,478,621.239 10


105,576.224 9,236,357.705 9,254,314.121 87,619.808 10


385,640.464 2,061,568.540 955,862.602 1,491,346.402 10

** Units held by the AMC (Seed Capital) in Direct Plan Growth Option as on 31/03/2017 is 206,147.313 & as on 31/03/2016 is 206,147.313 for investment plan and Units held by the AMC (Seed Capital) in Direct Plan Growth Option as on 31/03/2017 is 210,860.141 & as on 31/03/2016 is 210,860.141 for short term plan.


6 No contingent liabilities for Investment Plan and Short Term Plan for the years ended March 31, 2017 and March 31, 2016.


8 Other Income is Rs. 4 Exit load credited to the Scheme in Investment Plan (2016: Nil) and Rs. 19 in Short Term Plan represents Exit load (net of service tax) credited to the scheme (2016: Rs. 963 represents Exit load (net of service tax) credited to the scheme).












An Income tax demand of Rs. 32.58 crores was purported to be recovered under garnishee proceedings, by Income Tax Authorities in respect of investments made in Pass through Certifi cates (PTC) by some of the debt schemes (including matured schemes) of HSBC Mutual Fund (HSBC MF), for A.Y. 2009-2010. The said demand, impacting various mutual fund players in the industry, raised originally on the trusts sponsored by IL&FS Trust Company Ltd., (Appellants) was sought to be also recovered u/s 177(3) of the Income Tax Act, from HSBC MF. Against the demand an appeal was fi led by the Appellant with the fi rst


33

HSBC INCOME FUND 18

Appellate Authority CIT(A)] and thereafter with ITAT. ITAT decided the issue in favour of the Appelant. Similar to AY 2009-10, HSBC MF had received a demand notice from the Income Tax authorities for AY 2010-11 for Rs. 6.95 crores. ITAT has passed an order in favour of the appellant for this year as well.


11 Change in Fundamental Attributes of HSBC Income Fund –Short Term Plan

During the year, the Scheme has changed its asset allocation and modifi ed duration with effect from January 15, 2014 in accordance with regulation 18(15A) of SEBI Regulations. The Change in Fundamental Attribute of the Scheme was approved by the Board of Directors of the AMC and Board of Trustees of the Fund. The change was effected in line with the relevant provisions of SEBI (Mutual Funds) Regulations, 1996.



34

18 HSBC INCOME FUND



35

HSBC INCOME FUND 18






HSBC Ultra Short Term Bond FundAn Open-ended Debt Scheme


HSBC ULTRA SHORT TERM BOND FUND 10

1


Dear Investor,






2

10 HSBC ULTRA SHORT TERM BOND FUND


Warm regards,

Ravi Menon



3













4








HSBC Ultra Short Term Bond Fund (HUSTF) – an open ended debt scheme HUSTF seeks to provide liquidity and reasonable returns by investing primarily in a mix of short term debt and money market instruments.

The net assets of HUSTF amounted to Rs. 392.65 crores as at March 31, 2017 compared to Rs. 432.41 crores as at March 31, 2016. Around 96.47% of the net assets were invested in debt and money market instruments, 2.65% was invested in reverse repos / CBLO and 0.88% in the net current assets as at March 31, 2017.

HUSTF outperformed the index on back of overweight in the duration and liquidity easing in the period following demonetization. However, the direct plan outperformed the index by 0.96% as compared to mere 9 bps.

Date of Inception : 17 October 2006 Absolute Returns

(%)

Compounded Annualized Returns

(%)

Scheme Name & Benchmarks 1 Year 3 Years Since Inception#

HSBC Ultra Short Term Bond Fund - Growth 7.40 8.10 8.37

Customised Benchmark Index Fund (Scheme Benchmark)* 7.31 8.16 8.42

CRISIL1 Year T-Bill Index (Standard Benchmark) 7.15 7.85 7.43

Rs. 10,000, if invested in HUSBF, would have become 10,740 12,633 14,360

Rs. 10,000, if invested in Customised Benchmark Index, would have become

10,731 12,333 14,392

Rs. 10,000, if invested in CRISIL 1 Year T-Bill Index, would have become

10,715 12,546 13,809


#Pursuant to SEBI circular dated September 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.


5







NSE CNX Nifty 18.5%

S&P BSE 100 21.2%

S&P BSE 200 22.5%

S&P BSE 500 24.0%


Source: Bloomberg







6














a. Sponsor



b. HSBC Mutual Fund



7

















HSBC Ultra Short Term Bond Fund 1380.12 1 561835.85 8



8





2016-2017

Com-plaintCode




receivedduring

theyear



ble*

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 6 4 2 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 6 5 0 0 0 0 1 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


1 34 35 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 6 6 0 0 0 0 0 0 0 0

IV Others 0 21 20 0 0 0 0 1 0 0 0


9


2016-2017

Com-plaintCode




receivedduring

theyear



ble*

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months

Total 1 73 70 2 0 0 0 2 0 0 0


Particulars Count




# active folios









June 2016 124 101 0 23

September 2016 1,005 880 27 98

December 2016 58 42 9 7

March 2017 39 33 3 3

Total 1,226 1,056 39 131



10










Sd/-

N. P. Gidwani

Chairman



11




HSBC Mutual Fund – HSBC Ultra Short Term Bond Fund

Report on the fi nancial statementsWe have audited the accompanying fi nancial statements of HSBC Ultra Short Term Bond Fund (the ‘Scheme’), which comprise the balance sheet as at 31 March 2017 and the related revenue account for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, annexed thereto.








12









Sd/-



13


Rs. in Lakhs

HSBC ULTRA SHORT TERM BOND FUNDAs at

March 31, 2017As at

March 31, 2016

LIABILITIES1 Unit Capital 34,479.19 40,799.25 2 Reserves & Surplus2.1 Unit Premium Reserves (27.37) (15.35)2.2 Unrealised Appreciation Reserve 55.53 110.37 2.3 Other Reserves 5,394.45 4,730.13 3 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income/Deposits – –4.2 Other Current Liabilities & Provisions 104.67 786.57

TOTAL 40,006.47 46,410.97

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds 20,863.03 15,089.31 1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds 2,518.94 503.17 1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper 4,951.36 5,707.62 1.7 Certifi cate of Deposits 9,542.56 22,034.77 1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –


2 Deposits 5.82 16.75 3 Other Current Assets3.1 Cash & Bank Balance 349.69 613.32 3.2 CBLO / Reverse Repo Lending 1,040.28 2,248.62 3.3 Others 734.79 197.41 4 Deferred Revenue Expenditure (to the extent not written off) – –

TOTAL 40,006.47 46,410.97



14



Rs. in Lakhs

HSBC ULTRA SHORT TERM BOND FUNDCurrent


Previous Year ended

March 31, 2016


investments120.75 64.24


(A) 3,911.31 3,189.82 2 EXPENSES2.1 Management fees 191.37 144.63 2.2 Service tax on Management fees 28.57 20.77 2.3 Transfer agents fees and expenses 16.96 15.16 2.4 Custodian fees 2.93 2.42 2.5 Trusteeship fees 0.44 0.35 2.6 Commission to Agents 187.91 161.37 2.7 Marketing & Distribution expenses 0.46 - 2.8 Audit fees 0.49 1.20 2.9 Investor Education Expenses 9.46 7.41 2.10 Other operating expenses 4.11 7.38 2.11 Expenses to be Reimbursed by the Investment Manager – –

(B) 442.70 360.69


4 Change in Unrealised Depreciation in value of investments (D) 26.25 (26.25)


6 Change in unrealised appreciation in the value of investments (F) (54.84) 36.50

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 3,440.02 2,839.38

7.1 Add: Balance transfer from Unrealised Appreciation Reserve 54.84 –7.2 Less: Balance transfer to Unrealised Appreciation Reserve – 36.50 7.3 Add / (Less): Equalisation (880.90) 1,565.70 7.4 Transfer from Reserve Fund 4,730.13 2,097.96 7.5 Transfer from Unit Premium Reserve – –8 Total 7,344.10 6,466.55 9 Dividend appropriation9.1 Income Distributed during the year (1,381.79) (1,242.02)9.2 Tax on income distributed during the year (567.86) (494.40)10 Retained Surplus / (Defi cit) carried forward to Balance sheet 5,394.45 4,730.13


15





Previous Year ended

March 31, 2016


Open


Regular Daily Dividend Option 10.0021 10.0021



Institutional Growth Option 13.3679 12.3892

Institutional Daily Dividend Option 10.0207 10.0207


Institutional Monthly Dividend Option 10.1658 10.1576


Institutional Plus Daily Dividend Option 14.9294 13.7326




Direct Plan - Daily Dividend Option 10.0840 10.0840



High
















Direct Plan - Monthly Dividend Option 10.4266 –

16





Previous Year ended

March 31, 2016

Low

















End


















End 39,265 43,241

Average (AAuM)1 47,310 37,057

17




Previous Year ended

March 31, 2016


4. Expense Ratio:














Retail






Institutional Plus Daily Dividend Option – –






Corporate






Institutional Plus Daily Dividend Option – –





18




Previous Year ended

March 31, 2016



8. Returns (%):

a. Last One Year

Scheme





Benchmark

CRISIL Composite Index ^^ 7.3100 8.0764

b. Since Inception

Scheme





Benchmark

CRISIL Composite Index ^^ 8.4248 8.7449


^^ Composite Index of CRISIL Liquid Fund Index (90%) and CRISIL Short Term Bond Fund Index (10%)


19



HSBC ULTRA SHORT TERM BOND FUND

1 Investments:


1.2. Open Positions of derivatives as of year ended March 31, 2017 is NIL. Open Positions of derivatives as of year ended March 31, 2016 is NIL.

1.3. Investments in Associates and Group Companies as of years ended March 31, 2017 and March 31, 2016.

(Rupees)



by all schemes


by all schemes

2017 2016



250,541,400 1,452,436,300 – 402,773,900

Equities – 94,659,583 – 47,680,367


1.4. Open position of Securities Borrowed and / or Lent by the Scheme as of fi nancial years ended 2017 and 2016 are NIL.


1.6. Aggregate Unrealised Gain / Loss as at the end of the Financial years March 31, 2017 and March 31, 2016 are as under :



2017 2016

Certifi cate of Deposit / Commercial Paper

- Appreciation 1,726,265 0.04 10,976,971 0.25

- Depreciation – – 239 0.00~


- Appreciation 6,190,502 0.16 641,250 0.01

- Depreciation 2,363,865 0.06 3,265,934 0.08

Privately Placed Non Convertible Debentures / Bonds

- Appreciation – – 59,800 0.00~

- Depreciation – – – –


1.7 The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2016-17 (excluding accretion of discount) are Rs. 10,745,558,804 and Rs. 11,624,406,923 respectively being 227.13% and 245.71% of the average daily net assets.

20


The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2015-16 (excluding accretion of discount) are Rs. 13,692,412,086 and Rs. 11,498,956,112 respectively being 369.50% and 310.31% of the average daily net assets.

1.8. Non-Traded securities in the portfolio :

Aggregate Value of Equity, Debt & Money Market Instruments and their percentages to Net assets are as under :

Security Category Fair Value (Rupees)

% to Net Assets

Fair Value (Rupees)

% to Net Assets

2017 2016

Debt Instruments 2,338,197,145 59.55% 1,559,247,774 36.06%

Money market Instruments 1,449,392,388 36.91% 2,774,239,457 64.16%

Total 3,787,589,533 80.06% 4,333,487,231 100.22%






Relation

Period Covered


% of Total Business




Fund



2016-2017 489.62 41.49 10,249,921 58.08



Relation

Period Covered


% of Total Business




Fund



2015-2016 902.41 60.64 9,546,685 67.08

The brokerage paid was at rates similar to those offered to other distributors and the Commission/Brokerage paid to related party includes both upfront and trail and hence not comparable with the % of business brought and % of commission paid.





21





4 Unit Capital movement during the years ended March 31, 2017 and March 31, 2016.**

Description

2016–2017

Opening Units Subscription Redemption Closing Units FaceValue per Unit (Rs.)


846,977.339 – 46,870.593 800,106.746 10

Regular Daily Dividend Option

6,160,703.281 – 933,676.380 5,227,026.901 10


2,376,252.883 – 215,626.504 2,160,626.379 10


126,662,073.067 262,996,266.57 274,389,168.547 115,269,171.092 10

Institutional Daily Dividend Option

185,128,859.528 389,622,561.38 420,910,021.222 153,841,399.682 10


29,814,574.060 54,946,443.00 59,537,967.842 25,223,049.222 10

Institutional Monthly Dividend Option

32,992,083.649 40,097,580.49 55,936,675.673 17,152,988.461 10

Institutional Plus Daily Dividend Option

200,543.261 – 166,600.804 33,942.457 10


9,351,701.85 168,725,510.56 174,618,816.046 3,458,396.362 10

Direct Plan - Daily Dividend Option

4,058,074.29 53,231,912.31 47,638,616.500 9,651,370.098 10


10,400,628.52 9,404,324.19 10,313,168.159 9,491,784.548 10


– 8,405,500.57 5,923,478.282 2,482,022.29 10

Description

2015–2016


Regular Growth Option 1,123,000.353 – 276,023.014 846,977.339 10


6,723,622.530 – 562,919.249 6,160,703.281 10


2,537,348.577 – 161,095.694 2,376,252.883 10


22


Description

2015–2016



81,734,103.370 356,913,386.543 311,985,416.846 126,662,073.067 10


59,697,802.669 672,742,602.720 547,311,545.861 185,128,859.528 10


13,744,625.534 73,848,382.474 57,778,433.948 29,814,574.060 10


13,388,094.775 88,070,853.261 68,466,864.387 32,992,083.649 10


200,543.261 – – 200,543.261 10


459,743.404 – 459,743.40 0.000 10


1,599,682.319 114,659,305.67 106,907,286.14 9,351,701.852 10


2,161,990.857 14,724,685.99 12,828,602.561 4,058,074.286 10


271,737.092 10,128,891.43 – 10,400,628.520 10


5 Prior year amounts have been re-grouped / re-arranged where necessary.



8 Other Income of Rs. NIL (2016: NIL)












23



An Income tax demand of Rs. 32.58 crores was purported to be recovered under garnishee proceedings, by Income Tax Authorities in respect of investments made in Pass through Certifi cates (PTC) by some of the debt schemes (including matured schemes) of HSBC Mutual Fund (HSBC MF), for A.Y. 2009-2010.The said demand, impacting various mutual fund players in the industry, raised originally on the trusts sponsored by IL&FS Trust Company Ltd., (Appellants) was sought to be also recovered u/s 177(3) of the Income Tax Act, from HSBC MF. Against the demand an appeal was fi led by the Appellant with the fi rst Appellate Authority CIT(A)] and thereafter with ITAT. ITAT decided the issue in favour of the Appelant. Similar to AY 2009-10, HSBC MF had received a demand notice from the Income Tax authorities for AY 2010-11 for Rs. 6.95 crores. ITAT has passed an order in favour of the appellant for this year as well.




24










HSBC CASH FUND 8

HSBC Cash FundAn Open-ended Liquid Scheme


1

HSBC Cash Fund 8

Dear Investor,






2

8 HSBC Cash Fund


Warm regards,

Ravi Menon



3

HSBC Cash Fund 8












4

8 HSBC Cash Fund








HSBC Cash Fund (HCF) – an open-ended Liquid SchemeHCF 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.

The net assets of HCF amounted to Rs. 1,850.07 crores as at March 31, 2017 as compared to Rs. 1359.41 crores as at March 31, 2016. The entire net asset remains invested in debt and money market instruments including reverse repos / CBLO as at March 31, 2017.

HCF performed in line with its benchmark for FY 2016-2017 due to conservative investments in line with the internal group guidelines and the focus being on accruals and credit.

Date of Inception : 4 December 2002

Simple Annualized Returns (%)

Absolute Returns

(%)


Scheme Name & Benchmarks

Last 7 Days as on 31 March 2017



1 Year 3 Years 5 Years Since Inception

HSBC Cash Fund - Growth 7.00 6.91 6.66 7.21 8.10 8.53 8.53

CRISIL Liquid Fund Index (Scheme Benchmark)

7.21 7.18 6.68 7.11 8.04 8.36 8.39

CRISIL 91 Day T-Bill Index (Standard Benchmark)

6.41 6.37 6.35 6.70 7.78 8.09 8.01

Rs. 10,000, if invested in HCF, would have become

10,013 10,028 10,055 10,721 12,630 15,057 16,173

Rs. 10,000, if invested in CRISIL Liquid Fund Index, would have become

10,014 10,030 10,055 10,711 12,611 14,939 16,053

Rs. 10,000, if invested in CRISIL 91 Day T-Bill Index, would have become

10,012 10,026 10,052 10,670 12,521 14,753 15,721

5

HSBC Cash Fund 8








NSE CNX Nifty 18.5%

S&P BSE 100 21.2%

S&P BSE 200 22.5%

S&P BSE 500 24.0%


Source: Bloomberg





Risks are in the form of market valuations trending above historical averages and weaker than expected delivery in corporate earnings going forward. External news fl ows related to geopolitical tensions and other

6

8 HSBC Cash Fund


eco-political events would also infl uence market performance going forward, as the recent rally in the markets was supported by strong FII infl ows.













a. Sponsor



7

HSBC Cash Fund 8


b. HSBC Mutual Fund













Scheme




HSBC Cash Fund – – 215969.59 13

8

8 HSBC Cash Fund





2016-2017

Com-plaintCode




receivedduring

theyear



ble*

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 6 4 2 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 6 5 0 0 0 0 1 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


1 34 35 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0

9

HSBC Cash Fund 8

2016-2017

Com-plaintCode




receivedduring

theyear



ble*

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 6 6 0 0 0 0 0 0 0 0

IV Others 0 21 20 0 0 0 0 1 0 0 0

Total 1 73 70 2 0 0 0 2 0 0 0


Particulars Count













June 2016 124 101 0 23

September 2016 1,005 880 27 98

December 2016 58 42 9 7

March 2017 39 33 3 3

Total 1,226 1,056 39 131


10

8 HSBC Cash Fund










Sd/-

N. P. Gidwani

Chairman



11

HSBC Cash Fund 8



HSBC Mutual Fund - HSBC Cash Fund

Report on the Financial StatementsWe have audited the accompanying fi nancial statements of HSBC Cash Fund (the ‘Scheme’), which comprise the balance sheet as at 31 March 2017, the related revenue account and the cash fl ow statement for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, annexed thereto.









12

8 HSBC Cash Fund







Sd/-




13

HSBC Cash Fund 8

Rs. in Lakhs

HSBC CASH FUNDAs at

March 31, 2017As at

March 31, 2016

LIABILITIES1 Unit Capital 150,672.19 115,527.48 2 Reserves & Surplus2.1 Unit Premium Reserves 1,787.34 1,763.13 2.2 Unrealised Appreciation Reserve 24.05 75.91 2.3 Other Reserves 32,540.35 18,613.00 3 Loans & Borrowings 21,500.00 –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 10,256.48 205.29

TOTAL 216,780.41 136,184.81

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds – –1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper 123,266.91 68,324.26 1.7 Certifi cate of Deposits 81,765.90 46,963.33 1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –

Total Investments 205,032.81 115,287.59 2 Deposits 10,309.81 20,055.67 3 Other Current Assets3.1 Cash & Bank Balance 1,421.76 38.10 3.2 CBLO / Reverse Repo Lending – 707.66 3.3 Others 16.03 95.79 4 Deferred Revenue Expenditure (to the extent not written off) – –

TOTAL 216,780.41 136,184.81



14

8 HSBC Cash Fund


Rs. in Lakhs

HSBC CASH FUNDCurrent


Previous Year ended

March 31, 2016


investments 14.18 27.06

1.6 Realised Gains / (Losses) on Derivative Transactions – –1.7 Other Income 0.66 –

(A) 15,881.14 15,444.64

2 EXPENSES2.1 Management fees 50.04 –2.2 Service tax on Management fees 7.51 –2.3 Transfer agents fees and expenses 40.92 37.45 2.4 Custodian fees 6.34 6.27 2.5 Trusteeship fees 2.28 1.93 2.6 Commission to Agents 45.87 48.22 2.7 Marketing & Distribution expenses 2.47 1.22 2.8 Audit fees 4.82 4.70 2.9 Investor Education Expenses 66.48 39.00 2.10 Interest on Borrowing 11.86 –2.11 Other operating expenses 24.27 30.81 2.12 Expenses to be Reimbursed by the Investment Manager – (18.27)


FOR THE YEAR (A – B = C) 15,618.28 15,293.31 4 Change in Unrealised Depreciation

in value of investments (D) – 5.22 5 NET GAINS / (LOSSES) FOR THE YEAR [E = (C + D)] 15,618.28 15,298.53 6 Change in unrealised appreciation in the

value of investments (F) (51.86) 27.32 7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 15,566.42 15,325.85

7.1 Add: Balance transfer from Unrealised Appreciation Reserve 51.86 –7.2 Less: Balance transfer to Unrealised Appreciation Reserve – 27.32 7.3 Add / (Less): Equalisation 3,978.09 (9,797.78)7.4 Transfer from Reserve Fund 18,613.00 20,954.53 7.5 Transfer from Unit Premium Reserve – –

8 Total 38,209.37 26,455.28 9 Dividend appropriation9.1 Income Distributed during the year (3,847.54) (5,321.24)9.2 Tax on income distributed during the year (1,821.48) (2,521.04)10 Retained Surplus / (Defi cit) carried forward to Balance sheet 32,540.35 18,613.00


15

HSBC Cash Fund 8




Previous Year ended

March 31, 2016

1. NAV per unit (Rs.): Open Regular Growth Option 2,298.8714 2,144.7901 Regular Daily Dividend Option 1,019.3000 1,019.3000 Regular Weekly Dividend Option 1,002.5519 1,003.4059 Institutional Growth Option 2,388.1672 2,213.6653 Institutional Daily Dividend Option 1,124.4110 1,097.9635 Institutional Weekly Dividend Option – – Institutional Monthly Dividend Option – – Institutional Plus Growth Option 1,508.3028 1,394.5179 Institutional Plus Daily Dividend Option 1,000.5600 1,000.5600 Institutional Plus Weekly Dividend Option 1,111.6391 1,112.7323 Institutional Plus Monthly Dividend Option 1,001.3295 1,001.8485 Direct Plan - Growth Option 1,510.3819 1,395.7229 Direct Plan - Daily Dividend Option 1,000.5600 1,000.5600 Direct Plan - Weekly Dividend Option 1,111.6463 1,112.7280 Direct Plan - Monthly Dividend Option 1,001.5205 1,001.8039 Unclaimed Dividend less than 3 yrs ### – – Unclaimed Dividend more than 3 yrs ### – – Unclaimed Redemption less than 3 yrs ### – – Unclaimed Redemption more than 3 yrs ### – – High Regular Growth Option 2,443.1533 2,298.8714 Regular Daily Dividend Option 1,019.3000 1,019.3000 Regular Weekly Dividend Option 1,003.6299 1,003.2184 Institutional Growth Option 2,554.6040 2,388.1672 Institutional Daily Dividend Option 1,202.8387 1,124.4110 Institutional Weekly Dividend Option – – Institutional Monthly Dividend Option – – Institutional Plus Growth Option 1,616.9837 1,508.3028 Institutional Plus Daily Dividend Option 1,000.5600 1,000.5600 Institutional Plus Weekly Dividend Option 1,112.9701 – Institutional Plus Monthly Dividend Option 1,006.9700 1,008.2273 Direct Plan - Growth Option 1,620.1903 1,510.3819 Direct Plan - Daily Dividend Option 1,000.5600 1,000.5600 Direct Plan - Weekly Dividend Option 1,112.9925 1,112.5165 Direct Plan - Monthly Dividend Option 1,013.4196 1,008.2196 Unclaimed Dividend less than 3 yrs ### 1,067.3816 – Unclaimed Dividend more than 3 yrs ### 1,000.0000 – Unclaimed Redemption less than 3 yrs ### 1,067.3816 – Unclaimed Redemption more than 3 yrs ### 1,000.0000 – Low Regular Growth Option 2,300.2996 2,147.2106 Regular Daily Dividend Option 1,019.3000 1,019.3000 Regular Weekly Dividend Option 1,001.6255 1,001.7309 Institutional Growth Option 2,389.7785 2,216.3603 Institutional Daily Dividend Option 1,125.1698 1,097.9691

16

8 HSBC Cash Fund




Previous Year ended

March 31, 2016

Institutional Weekly Dividend Option – – Institutional Monthly Dividend Option – – Institutional Plus Growth Option 1,509.3503 1,396.2709 Institutional Plus Daily Dividend Option 1,000.5600 1,000.5600 Institutional Plus Weekly Dividend Option 1,110.5845 – Institutional Plus Monthly Dividend Option 1,000.4252 1,000.2366 Direct Plan - Growth Option 1,511.4432 1,397.4870 Direct Plan - Daily Dividend Option 1,000.5600 1,000.5600 Direct Plan - Weekly Dividend Option 1,110.5876 1,110.7063 Direct Plan - Monthly Dividend Option 1,000.7940 1,000.4205 Unclaimed Dividend less than 3 yrs ### 1,010.2729 – Unclaimed Dividend more than 3 yrs ### 1,000.0000 – Unclaimed Redemption less than 3 yrs ### 1,010.2729 – Unclaimed Redemption more than 3 yrs ### 1,000.0000 – End Regular Growth Option 2,443.1533 2,298.8714 Regular Daily Dividend Option 1,019.3000 1,019.3000 Regular Weekly Dividend Option 1,001.9877 1,002.5519 Institutional Growth Option 2,554.6040 2,388.1672 Institutional Daily Dividend Option 1,202.8387 1,124.4110 Institutional Weekly Dividend Option – – Institutional Monthly Dividend Option – – Institutional Plus Growth Option 1,616.9837 1,508.3028 Institutional Plus Daily Dividend Option 1,000.5600 1,000.5600 Institutional Plus Weekly Dividend Option 1,111.0123 1,111.6391 Institutional Plus Monthly Dividend Option 1,001.0652 1,001.3295 Direct Plan - Growth Option 1,620.1903 1,510.3819 Direct Plan - Daily Dividend Option 1,000.5600 1,000.5600 Direct Plan - Weekly Dividend Option 1,111.0173 1,111.6463 Direct Plan - Monthly Dividend Option 1,009.1530 1,001.5205 Unclaimed Dividend less than 3 yrs ### 1,067.3816 – Unclaimed Dividend more than 3 yrs ### 1,000.0000 – Unclaimed Redemption less than 3 yrs ### 1,067.3816 – Unclaimed Redemption more than 3 yrs ### 1,000.0000 –2. Closing Assets Under Management (Rs. in Lakhs) End 185,007 135,941 Average (AAuM)1 224,522 194,971 3. Gross income as % of AAuM2 7.07% 7.92%4. Expense Ratio: a. Total Expense as % of AAuM (including service tax on Management fees) (planwise) Regular Plan 1.00% 1.00% Institutional Plan 0.35% 0.35% Institutional Plus Plan 0.13% 0.09% Direct Plan 0.07% 0.04% b. Management Fee as % of AAuM (planwise) Regular Plan 0.02% 0.00%

17

HSBC Cash Fund 8



Previous Year ended

March 31, 2016

Institutional Plan 0.02% 0.00% Institutional Plus Plan 0.02% 0.00% Direct Plan 0.02% 0.00%5. Net Income as a percentage of AAuM3 6.96% 7.84%6. Portfolio turnover ratio – –7. Total Dividend per unit distributed during the year (planwise) Retail Regular Daily Dividend Option 44.8188 51.0827 Regular Weekly Dividend Option 44.4765 49.5173 Institutional Daily Dividend Option – 41.4016 Institutional Plus Daily Dividend Option 50.2851 56.6850 Institutional Plus Weekly Dividend Option 56.2965 62.1281 Institutional Plus Monthly Dividend Option 50.6109 57.2279 Direct Plan - Daily Dividend Option 50.7074 57.0738 Direct Plan - Weekly Dividend Option 56.7886 62.6121 Direct Plan - Monthly Dividend Option 45.4206 57.4389 Corporate Regular Daily Dividend Option 41.5239 47.3271 Regular Weekly Dividend Option 41.2067 45.8769 Institutional Daily Dividend Option – 38.3578 Institutional Plus Daily Dividend Option 46.5882 52.5176 Institutional Plus Weekly Dividend Option 52.1577 57.5605 Institutional Plus Monthly Dividend Option 46.8900 53.0206 Direct Plan - Daily Dividend Option 46.9795 52.8778 Direct Plan - Weekly Dividend Option 52.6135 58.0089 Direct Plan - Monthly Dividend Option 42.0813 53.2161 8. Returns (%): a. Last One Year Scheme Regular Growth Option 6.2762 7.1637 Institutional Growth Option 6.6962 7.8606 Institutional Plus Growth Option 7.2055 8.1363 Direct Plan - Growth Option 7.2702 8.1917 Benchmark CRISIL Liquid Fund Index 7.1141 8.0358 b. Since Inception Scheme Regular Growth Option 6.4314 6.4431 Institutional Growth Option 3.8141 3.5326 Institutional Plus Growth Option 6.8293 6.8181 Direct Plan - Growth Option 8.5015 8.8836 Benchmark CRISIL Liquid Fund Index 8.3914 8.6555

1. AAuM=Average daily net assets2. Gross income = amount against (A) in the Revenue account i.e. Income3. Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the year

### Unclaimed Plan launch during the FY 2016-2017, as per circular - SEBI/HO/IMD/DF2/CIR/P/2016/37 dated 25 Feburary, 2016.


18

8 HSBC Cash Fund


HSBC CASH FUND

1 Investments:-


1.2. Open Positions of derivatives as of years ended March 31, 2017 and March 31, 2016 end are NIL.

1.3. Investments in Associates and Group Companies :

(Rupees)



by all schemes


by all schemes

2017 2016



– 1,452,436,300 – 402,773,900

Equities – 94,659,583 – 47,680,367


1.4. Open position of Securities Borrowed and / or Lent by the Scheme as of fi nancial years ended March 31, 2017 and March 31, 2016 are NIL.


1.6. Aggregate Unrealised Gain / Loss as at the end of the fi nancial years March 31, 2017 and March 31, 2016 are as under:



2017 2016

Certifi cates of Deposit / Commercial Paper

– Appreciation 2,462,234 0.01 7,955,746 0.06

– Depreciation 57,060 0.00~ 364,626 0.00~





1.7. The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2016-17 (excluding accretion of discount) are Rs. 166,800,296,469 and Rs. 159,116,416,187 respectively being 742.91% and 708.69% of the average daily net assets.

The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2015-16 (excluding accretion of discount) are Rs. 152,253,516,905 and Rs. 153,709,618,321 respectively being 780.90% and 788.37% of the average daily net assets.

19

HSBC Cash Fund 8

1.8. Non-Traded securities in the portfolio:

Aggregate Value of Equity, Debt & Money Market Instruments and percentage to net assets is as under



2017 2016

Money Market Instruments 19,761,843,935 106.82 11,528,758,815 84.81





Nature of Association /

Nature of Relation

Period Covered





Fund



2016-2017 1,241.42 1.28 2,473,015 61.25


Nature of Association /

Nature of Relation

Period Covered





Fund



2015-2016 1,164.99 2.39 2,906,504 65.95

The brokerage paid was at rates similar to those offered to other distributors and the Commission/Brokerage paid to related party includes both upfront and trial and hence not comparable with the % of business brought and % of commission paid.






Notes to Accounts - Annexure I (Contd...)To the Abridged Balance Sheet and Revenue Account for the year ended March 31, 2017

20

8 HSBC Cash Fund

3 Details of the Investors held more than 25% of the total net assets of the Scheme at the years ended March 31, 2017 and March 31, 2016 :

Scheme Name Number of investors

Percentage holdings

Number of investors

Percentage holdings

2017 2016

HSBC Cash Fund – – 1 30.22%


Description

2016–2017

Opening Units Subscription Redemption Closing Units

Face Value

per unit (Rupees)

Regular Growth Option 13,831.759 – 1,110.042 12,721.717 1,000


99,872.751 – 25,889.794 73,982.957 1,000


69,625.861 – 3,137.767 66,488.094 1,000

Institutional Growth Option 3,205.025 – – 3,205.025 1,000


38.218 – – 38.218 1,000


2,092,356.261 97,313,848.407 96,779,629.667 2,626,575.001 1,000


4,243,212.920 17,811,086.097 16,896,517.288 5,157,781.729 1,000


127,327.143 277,666.314 310,240.273 94,753.184 1,000

Institutional Plus Monthly Dividend Option

163,468.562 201,825.620 201,360.878 163,933.304 1,000

Direct Plan - Growth Option 1,835,687.400 479,353,982.910 478,334,791.227 2,854,879.083 1,000


2,883,139.976 44,383,321.281 43,333,881.945 3,932,579.312 1,000


16,097.054 1,719.957 8,581.860 9,235.151 1,000


4,885.062 842,451.733 843,365.186 3,971.609 1,000

Unclaimed Plan- Dividend less than 3 years

– 19,817.166 4,925.339 14,891.827 1,000

Unclaimed Plan- Dividend more than 3 years

– 14,747.640 2,148.727 12,598.913 1,000

Unclaimed Plan-Redemption less than 3 years

– 29,691.345 10,502.705 19,188.640 1,000

Unclaimed Plan-Redemption more than 3 years

– 22,706.642 2,311.260 20,395.382 1,000


21

HSBC Cash Fund 8

Description

2015–2016

Opening Units Subscription Redemption Closing Units

Face Value

per unit (Rupees)

Regular Growth Option 20,708.194 – 6,876.435 13,831.759 1,000


164,946.017 – 65,073.266 99,872.751 1,000


90,955.261 – 21,329.400 69,625.861 1,000


3,205.025 – – 3,205.025 1,000


8,355.716 – 8,317.498 38.218 1,000


– – – – 1,000


– – – – 1,000


2,105,588.055 23,807,597.354 23,820,829.148 2,092,356.261 1,000


4,290,550.132 24,353,297.185 24,400,634.397 4,243,212.920 1,000


193,506.562 434,359.059 500,538.478 127,327.143 1,000

Institutional Plus Monthly Dividend Option

279,930.027 284,449.884 400,911.349 163,468.562 1,000


3,514,400.682 204,719,971.504 206,398,684.786 1,835,687.400 1,000


903,520.697 129,826,354.639 127,846,735.360 2,883,139.976 1,000


11.354 17,337.301 1,251.601 16,097.054 1,000


9,213.988 25,839.307 30,168.233 4,885.062 1,000


5 Previous year’s fi gures have been re-grouped / re-arranged where appropriate



8 Other Income :– Rs. 65,971/- represents compensation paid by AMC (2016 : Nil).


22

8 HSBC Cash Fund












10 Borrowings

Details of Outstanding Borrowing Liability are as follows: -

March 31, 2017

Name of the Scheme

Date of Borrowing

Amount Borrowed

(INR crores)

Rate of Interest

Source

HCF 31-Mar-17 215 8% The amount was borrowed to meet the redemption requirement by pledging Certifi cate of Deposit of HSBC Cash Fund. The pledged securities were released and credited to the account of the Scheme on the date of repayment i.e. April 3, 2017

11 Garnishee Notices




23

HSBC Cash Fund 8



24

8 HSBC Cash Fund






HSBC FLEXI DEBT FUND 7

HSBC Flexi Debt FundAn Open-ended Debt Scheme


1

HSBC Cash Fund 7

Dear Investor,






2

7 HSBC FLEXI DEBT FUND


Warm regards,

Ravi Menon



3

HSBC Cash Fund 7












4








HSBC Flexi Debt Fund (HFDF) – an open ended Debt SchemeHFDF 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 investment in debt and money market instruments.

The net assets of HFDF amounted to Rs. 442.43 crores as at March 31, 2017 as compared to Rs. 456.19 crores as at March 31, 2016. Around 91.02% of the net assets was invested in debt and money market instruments, 5.64% was invested in reverse repos / CBLO and 3.34% in the net current assets as at March 31, 2017.

HFDF underperformed its scheme’s benchmark due to volatility caused by demonetization during the year.

Date of Inception : 5 October 2007 Absolute Returns

(%)



HSBC Flexi Debt Fund - Growth Option 9.85 9.73 8.79 8.81

CRISIL Composite Bond Fund Index (Scheme Benchmark) 11.09 11.26 9.45 8.02

CRISIL 10 Year Gilt Index (Standard Benchmark) 11.87 11.43 8.79 7.33

Rs. 10,000, if invested in HFDF, would have become 10,985 13,214 15,242 22,286

Rs. 10,000, if invested in CRISIL Composite Bond Fund Index, would have become

11,109 13,774 15,705 20,796

Rs. 10,000, if invested in CRISIL 10 Year Gilt Index, would have become

11,187 13,835 15,242 19,582



5

HSBC Cash Fund 7






NSE CNX Nifty 18.5%

S&P BSE 100 21.2%

S&P BSE 200 22.5%

S&P BSE 500 24.0%


Source: Bloomberg







6














a. Sponsor



b. HSBC Mutual Fund



7

HSBC Cash Fund 7













Scheme




HSBC Flexi Debt Fund 21509.87 2 152889.61 1

6. INVESTOR SERVICESThe number of offi cial points of acceptance of transactions is 197 locations. In addition to the offi ces of the Registrar & Transfer agents, the AMC has Investor Service Centres in 8 locations at its own offi ces - namely


8


Mumbai, New Delhi, Kolkata, Bangaluru, Pune, Ahmedabad, Hyderabad and Chennai. With a view to enhance customer convenience, the AMC has the facility of priority based servicing to key distributors through the enhancement of the Interactive Voice Reponses. The AMC has a single Toll Free number which can be dialed from anywhere in India. The call centre service is being managed by the Registrar and Transfer Agents.



2016-2017

Com-plaintCode




receivedduring

theyear



ble*

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 6 4 2 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 6 5 0 0 0 0 1 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


1 34 35 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 6 6 0 0 0 0 0 0 0 0


9

HSBC Cash Fund 7

2016-2017

Com-plaintCode




receivedduring

theyear



ble*

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months

IV Others 0 21 20 0 0 0 0 1 0 0 0

Total 1 73 70 2 0 0 0 2 0 0 0


Particulars Count




# active folios









June 2016 124 101 0 23

September 2016 1,005 880 27 98

December 2016 58 42 9 7

March 2017 39 33 3 3

Total 1,226 1,056 39 131

In terms of the requirement of SEBI Circular no. CIR/IMD/DF/05/2014 dated March 24, 2014 and SEBI/HO/IMD/DF2/CIR/P/2016/68 dated August 10, 2016; the AMC has obtained certifi cate from M/s. M. P. Chitale & Co., Chartered Accountants, who is acting as a Scrutinizer, on the voting report for the FY 2016-17. The


10


certifi cate dated April 20, 2017 issued by M/s. M. P. Chitale & Co., is available on the website of the AMC as part of the full Annual Report.









Sd/-

N. P. Gidwani

Chairman



11

HSBC Cash Fund 7



HSBC Mutual Fund - HSBC Flexi Debt Fund

Report on the Financial StatementsWe have audited the accompanying fi nancial statements of HSBC Flexi Debt Fund (the ‘Scheme’), which comprise the balance sheet as at 31 March 2017, the related revenue account and the cash fl ow statement for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, annexed thereto.









12







3) In our opinion and on the basis of information and explanations given to us, the methods used to value non-traded securities, as at 31 March 2017, as determined by the Board of Directors of AMC, are in accordance with the Regulations and other guidelines issued by the Securities and Exchange Board of India as applicable and approved by the Board of Trustees are fair and reasonable.


Sd/-



13

HSBC Cash Fund 7

Rs. in Lakhs

HSBC FLEXI DEBT FUNDAs at

March 31, 2017As at

March 31, 2016

LIABILITIES1 Unit Capital 20,597.67 23,475.85 2 Reserves & Surplus2.1 Unit Premium Reserves 1,545.69 1,870.75 2.2 Unrealised Appreciation Reserve 63.23 387.09 2.3 Other Reserves 22,087.06 19,897.01 3 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 138.67 171.84

TOTAL 44,432.32 45,802.54

ASSETS1 Investments1.1 Listed Securities: – –1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds 15,124.93 7,766.57 1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds 1,705.78 –1.3.5 Securitised Debt securities – –1.4 Government Securities 23,435.40 32,939.68 1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – 3,624.17 1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –


2 Deposits 140.21 30.29 3 Other Current Assets3.1 Cash & Bank Balance 160.78 0.15 3.2 CBLO / Reverse Repo Lending 2,495.26 55.74 3.3 Others 1,369.96 1,385.94 4 Deferred Revenue Expenditure (to the extent not written off) – –

TOTAL 44,432.32 45,802.54



14



Rs. in Lakhs

HSBC FLEXI DEBT FUNDCurrent


Previous Year ended

March 31, 2016

1 INCOME1.1 Dividend – –1.2 Interest 3,411.56 4,259.66 1.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption

of investments 2,079.09 95.65


(A) 5,490.65 4,355.31 2 EXPENSES2.1 Management fees 387.99 466.90 2.2 Service tax on Management fees 57.83 65.60 2.3 Transfer agents fees and expenses 16.59 20.75 2.4 Custodian fees 0.59 0.77 2.5 Trusteeship fees 0.60 0.71 2.6 Commission to Agents 212.46 202.49 2.7 Marketing & Distribution expenses 0.32 1.52 2.8 Audit fees 0.51 1.21 2.9 Investor Education Expenses 9.26 10.85 2.10 Other operating expenses 3.98 8.82 2.11 Less: Expenses to be Reimbursed by the Investment Manager (19.37) –


FOR THE YEAR (A – B = C) 4,819.89 3,575.70 4 Change in Unrealised Depreciation in value

of investments (D) (29.85) –5 NET GAINS / (LOSSES) FOR THE YEAR [E = (C + D)] 4,790.04 3,575.70 6 Change in unrealised appreciation in the value of

investments (F) (323.86) (893.08)

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) 4,466.18 2,682.62 7.1 Add: Balance transfer from Unrealised Appreciation Reserve 323.86 893.08 7.2 Less: Balance transfer to Unrealised Appreciation Reserve – –7.3 Add / (Less): Equalisation (2,370.44) (4,748.74)7.4 Transfer from Reserve Fund 19,897.01 21,334.22 7.5 Transfer from Unit Premium Reserve – –8 Total 22,316.61 20,161.18 9 Dividend Appropriation9.1 Income Distributed during the year (165.70) (189.83)9.2 Tax on income distributed during the year (63.85) (74.34)10 Retained Surplus / (Defi cit) carried forward to

Balance Sheet 22,087.06 19,897.01


15

HSBC Cash Fund 7




Previous Year ended

March 31, 2016


Open

Regular Plan - Growth Option 19.7448 18.8438

Regular Plan - Fortnightly Dividend Option 12.7068 12.1270

Regular Plan - Monthly Dividend Option 12.4854 11.9157

Regular Plan - Quarterly Dividend Option 12.0463 11.9924

Regular Plan - Half Yearly Dividend Option 13.9631 13.3253

Growth Option **** 20.2692 19.2952

Fortnightly Dividend Option **** 10.7645 11.1156

Monthly Dividend Option **** 10.6089 10.5973

Quarterly Dividend Option **** 11.5230 11.9465

Half Yearly Dividend Option **** 11.6594 12.0645


Direct Plan - Fortnightly Dividend Option – 10.1268



Direct Plan - Half Yearly Dividend Option 11.0590 11.4103

High






Growth Option **** 22.8466 20.2692










Low




16





Previous Year ended

March 31, 2016



Growth Option **** 20.3145 18.9996










End






Growth Option**** 22.2659 20.2692






Direct Plan - Fortnightly Dividend Option – –





End 44,243 45,619

Average (AAuM)1 46,288 54,254


4. Expense Ratio:


Regular Plan - Growth Option 1.97% 1.95%

Growth Option **** 1.72% 1.70%


17

HSBC Cash Fund 7



Previous Year ended

March 31, 2016


Regular Plan - Growth Option 0.84% 0.86%

Growth Option **** 0.84% 0.86%





Retail

Regular Plan - Fortnightly Dividend Option – –

Regular Plan - Monthly Dividend Option – –

Regular Plan - Quarterly Dividend Option – 0.3611









Corporate

Regular Plan - Fortnightly Dividend Option – –

Regular Plan - Monthly Dividend Option – –

Regular Plan - Quarterly Dividend Option – 0.3346









8. Returns (%):

a. Last One Year

Scheme


Growth Option **** 9.8509 5.0338



18





Previous Year ended

March 31, 2016

Benchmark


b. Since Inception

Scheme




Benchmark


1. AAUM=Average daily net assets2. Gross income = amount against (A) in the Revenue account i.e. Income3. Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the year4. Portfolio Turnover = Lower of sales or purchase divided by the Average AUM for the year

**** Earlier known as Institutional Plan

19

HSBC Cash Fund 7


HSBC FLEXI DEBT FUND

1 Investments:


1.2. Open Positions of derivatives as a % to Net Assets as of years ended March 31, 2017 and March 31, 2016 are NIL.

1.3. Investments in Associates and Group Companies:(Rupees)



by all schemes


by all schemes

2017 2016



241,299,360 1,452,436,300 251,212,500 402,773,900

Equities – 94,659,583 – 47,680,367




1.6. Aggregate Unrealised Gain / Loss as at the end of the fi nancial years and percentages to net assets are as under :



Amount (Rupees)


2017 2016


– Appreciation 12,769,868 0.29 2,939,840 0.06

– Depreciation 6,446,817 0.15 – –

Certifi cate of Deposit

– Appreciation – – 1,298,638 0.03



– Appreciation 9,473,501 0.21 34,470,469 0.76

– Depreciation 12,458,818 0.28 – –

1.7 The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2016-17 (excluding accretion of discount) are Rs. 14,606,682,662 and Rs. 15,186,637,563 respectively being 315.56% and 328.09% of the average daily net assets.

The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2015-16 (excluding accretion of discount) are

20


Rs. 21,291,657,158 and Rs. 22,283,708,745 respectively being 392.44% and 410.73% of the average daily net assets.

1.8. Non-Traded securities in the portfolio: Aggregate Value of Equity, Debt & Money Market Instruments and percentage to net assets is as under :

Security Category Fair Value (Rupees)


Fair Value (Rupees)


2017 2016

Debt Instruments 1,223,699,243 27.66 776,657,440 17.02


Total 1,223,699,243 27.66 1,139,074,530 24.97






Relation

Period Covered

Business Given[Rs. In Crores]

% of Total Business


Commission paid

[Rupees]


Fund



2016-2017 37.71 28.67 9,350,362.85 54.97



Relation

Period Covered


% of Total Business




Fund



2015-2016 87.22 40.09 10,412,353.62 49.37






(iv) Subscription to any issue of equity or debt on private placement basis where the sponsor or its associate companies have acted as arranger or manager - Nil.


21

HSBC Cash Fund 7

Name of Associates: Hongkong & Shanghai Banking Corporation Limited

Name of Scheme Name of Security Year Type of Security

Amount(Rs in Crores)

HSBC Flexi Debt Fund 8.30% REC M - 10-Apr-2025 March 31, 2016 Corporate Debt

50


4 Unit Capital movement during the years ended March 31, 2017 and March 31, 2016**.

Description

2016–2017


Regular Plan - Growth Option

7,109,564.906 – 3,251,059.044 3,858,505.862 10

Regular Plan - Monthly Dividend Option

2,407,266.489 – 527,507.867 1,879,758.622 10

Regular Plan - Fortnightly Dividend Option

92,654.868 – 92,277.381 377.487 10

Regular Plan - Quarterly Dividend Option

1,195,506.105 – 432,776.962 762,729.143 10

Regular Plan - Half Yearly Dividend Option

1,675.319 – – 1,675.319 10

Growth Option **** 120,332,741.286 33,976,967.615 52,162,883.598 102,146,825.303 10

Monthly Dividend Option ****

6,601,113.574 3,305,056.048 5,707,891.067 4,198,278.555 10

Fortnightly Dividend Option ****

2,510,660.003 9,774,904.203 11,034,898.698 1,250,665.508 10

Quarterly Dividend Option ****

12,404,532.442 197,277.681 821,950.384 11,779,859.739 10

Half Yearly Dividend Option ****

912,478.569 – 886,332.798 26,145.771 10


81,165,000.171 10,218,973.964 11,332,570.656 80,051,403.479 10

Direct Plan - Fortnightly Dividend Option

– – – – 10


10,771.073 7,793.709 13,546.686 5,018.096 10


– – – – 10

Direct Plan - Half Yearly Dividend Option

14,531.582 942.279 – 15,473.861 10


22


Description

2015–2016


per unit (Rupees)

Regular Plan - Growth Option

12,228,000.551 – 5,118,435.645 7,109,564.906 10

Regular Plan - Monthly Dividend Option

3,253,531.638 – 846,265.149 2,407,266.489 10

Regular Plan - Fortnightly Dividend Option

729,867.238 – 637,212.370 92,654.868 10

Regular Plan - Quarterly Dividend Option

3,166,359.604 – 1,970,853.499 1,195,506.105 10

Regular Plan - Half Yearly Dividend Option

1,675.319 – – 1,675.319 10

Growth Option **** 131,864,931.070 76,565,825.915 88,098,015.699 120,332,741.286 10

Monthly Dividend Option ****

19,180,693.285 9,820,368.662 22,399,948.373 6,601,113.574 10

Fortnightly Dividend Option ****

4,793,696.072 7,942,370.428 10,225,406.497 2,510,660.003 10

Quarterly Dividend Option ****

15,624,305.041 1,246,062.025 4,465,834.624 12,404,532.442 10

Half Yearly Dividend Option ****

450,142.531 1,823,808.489 1,361,472.451 912,478.569 10


117,190,185.166 20,841,387.082 56,866,572.077 81,165,000.171 10

Direct Plan - Fortnightly Dividend Option

1,779,077.056 55,621.698 1,834,698.754 – 10


8,012.503 7,104.029 4,345.459 10,771.073 10


19,922.544 19,147.836 39,070.380 – 10

Direct Plan - Half Yearly Dividend Option

13,630.963 900.619 – 14,531.582 10


**** Earlier known as Institutional Plan




8 Other Income for the year ended March 31, 2017 is Nil (2016: Nil)


23

HSBC Cash Fund 7

9 Investor Education Awareness In view of the AMFI Best Practices Guidelines Circular No. 56/2015-16, the IEF ( Investor Education Fund)




Add: Accrual during the year/period 182.34






10 Garnishee Notices





24




HSBC FLEXI DEBT FUND 7






HSBC Capital Protection Oriented Fund 11

HSBC Capital Protection Oriented FundA Close-ended Capital Protection Oriented Scheme


1


Dear Investor,






2

11 HSBC Capital Protection Oriented Fund


Warm regards,

Ravi Menon



3













4








HSBC Capital Protection Oriented Fund – a close ended Capital Protection Oriented Scheme The scheme seeks protection of capital by investing a portion of the portfolio in high quality debt securities and money market instruments and also to provide capital appreciation by investing in equities through NIFTY (Index) Call Options. Currently, the Fund has two capital protection oriented funds viz. HSBC Capital Protection Oriented Fund – Series II – Plan I and Plan II.

Being close ended fund, the performance of the scheme is not provided.






NSE CNX Nifty 18.5%

S&P BSE 100 21.2%


5



S&P BSE 200 22.5%

S&P BSE 500 24.0%


Source: Bloomberg











6










a. Sponsor



b. HSBC Mutual Fund






7










Scheme




HSBC Capital Protection Oriented Fund Series I Plan I

– – 2724584.40 1





8


2016-2017

Com-plaintCode




receivedduring

theyear



ble*

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 6 4 2 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 6 5 0 0 0 0 1 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


1 34 35 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 6 6 0 0 0 0 0 0 0 0

IV Others 0 21 20 0 0 0 0 1 0 0 0

Total 1 73 70 2 0 0 0 2 0 0 0


Particulars Count




# active folios


9










June 2016 124 101 0 23

September 2016 1,005 880 27 98

December 2016 58 42 9 7

March 2017 39 33 3 3

Total 1,226 1,056 39 131







11. ACKNOWLEDGEMENTSThe Trustees wish to thank the Unit holders of the Schemes for their support throughout the year and also thank the Government of India, the Securities and Exchange Board of India (SEBI), the Reserve Bank of India


10


(RBI) and the Association of Mutual Funds in India (AMFI) for the guidance provided by them. The Trustees also appreciate the services provided by the Registrar and Transfer Agent, Fund Accountant, Custodian, Bankers, Distributors and Brokers. The guidance and services provided by the Auditors and advocates and the ebullience, sincerity and dedication of the employees of HSBC Asset Management (India) Private Limited is also appreciated.



Sd/-

N. P. Gidwani

Chairman



11




HSBC Mutual Fund - HSBC Capital Protection Oriented Fund Series II – Plan I

Report on the Financial StatementsWe have audited the accompanying fi nancial statements of HSBC Capital Protection Oriented Fund Series II Plan I (the ‘Scheme’), which comprise the balance sheet as at 31 March 2017, the related revenue account and the cash fl ow statement for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, annexed thereto.









12







3 In our opinion and on the basis of information and explanations given to us, the methods used to value non - traded securities, as at 31 March 2017, as determined by the Board of Directors of AMC, are in accordance with the Regulations and other guidelines issued by the Securities and Exchange Board of India as applicable and approved by the Board of Trustees are fair and reasonable.


Sd/-



13




HSBC Mutual Fund – HSBC Capital Protection Oriented Fund Series II – Plan II

Report on the Financial StatementsWe have audited the accompanying fi nancial statements of HSBC Capital Protection Oriented Fund Series II Plan II (the ‘Scheme’), which comprise the balance sheet as at 31 March 2017, the related revenue account and the cash fl ow statement for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, annexed thereto.









14








Sd/-




15



Rs. in Lakhs

HSBC CAPITAL PROTECTIONORIENTED FUND SERIES II – PLAN I



LIABILITIES1 Unit Capital 6,967.57 6,967.57 2 Reserves & Surplus2.1 Unit Premium Reserves – –2.2 Unrealised Appreciation Reserve 94.48 36.87 2.3 Other Reserves 577.25 68.93 3 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – –4.2 Other Current Liabilities & Provisions 9.45 11.41

TOTAL 7,648.75 7,084.78 ASSETS

1 Investments1.1 Listed Securities:1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds 6,356.38 5,914.21 1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – –1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –


TOTAL 7,648.75 7,084.78


16


Abridged Balance Sheet as at March 31, 2017 (Contd...)

Rs. in Lakhs

HSBC CAPITAL PROTECTIONORIENTED FUND SERIES II – PLAN II



LIABILITIES1 Unit Capital 5,761.20 5,761.20 2 Reserves & Surplus2.1 Unit Premium Reserves – –2.2 Unrealised Appreciation Reserve 17.50 – 2.3 Other Reserves 442.03 8.67 3 Loans & Borrowings – –4 Current Liabilities & Provisions4.1 Provision for doubtful Income/Deposits – –4.2 Other Current Liabilities & Provisions 6.96 7.92

TOTAL 6,227.69 5,777.79

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – –1.1.2 Preference Shares – –1.1.3 Equity Linked Debentures – –1.1.4 Other Debentures & Bonds 5,308.68 4,828.41 1.1.5 Securitised Debt securities – –1.2 Securities Awaited Listing:1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – –1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –


2 Deposits 0.13 0.82 3 Other Current Assets3.1 Cash & Bank Balance 8.20 0.24 3.2 CBLO / Reverse Repo Lending 297.23 377.94 3.3 Others 613.45 570.38 4 Deferred Revenue Expenditure (to the extent not written off) – –

TOTAL 6,227.69 5,777.79


17



Rs. in Lakhs

HSBC CAPITAL PROTECTIONORIENTED FUND SERIES II – PLAN I

Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016

1 INCOME1.1 Dividend – –1.2 Interest 530.50 497.25 1.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of



(A) 530.46 497.20 2 EXPENSES2.1 Management fees 36.57 34.99 2.2 Service tax on Management fees 5.46 4.91 2.3 Transfer agents fees and expenses 1.67 1.59 2.4 Custodian fees 0.33 0.30 2.5 Trusteeship fees – –2.6 Commission to Agents 31.81 30.89 2.7 Marketing & Distribution expenses – –2.8 Audit fees 0.20 0.20 2.9 Investor Education Expenses 1.46 1.40 2.10 Other operating expenses 1.33 0.47 2.11 Less: Expenses to be Reimbursed by the Investment Manager (0.23) (0.06)


FOR THE PERIOD (A - B = C) 451.86 422.51 4 Change in Unrealised Depreciation

in value of investments (D) 56.46 (363.87)5 NET GAINS / (LOSSES) FOR THE PERIOD [E = (C+D)] 508.32 58.64 6 Change in unrealised appreciation

in the value of investments (F) 57.61 (61.38)

7 NET SURPLUS / (DEFICIT) FOR THE PERIOD (E + F = G) 565.93 (2.74)

7.1 Add: Balance transfer from Unrealised Appreciation Reserve – 61.38 7.2 Less: Balance transfer to Unrealised Appreciation Reserve 57.61 –7.3 Add / (Less): Equalisation – –7.4 Transfer from Reserve Fund 68.93 10.29 7.5 Transfer from Unit Premium Reserve – –

8 Total 577.25 68.93

9 Dividend Appropriation9.1 Income Distributed during the period – –9.2 Tax on income distributed during the period – –

10 Retained Surplus / (Defi cit) carried forward to Balance sheet 577.25 68.93


18


Abridged Revenue Account for the period ended March 31, 2017 (Contd...)

Rs. in Lakhs

HSBC CAPITAL PROTECTIONORIENTED FUND SERIES II – PLAN II

Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016

1 INCOME1.1 Dividend – –1.2 Interest 453.29 414.88 1.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –1.4 Realised Gains / (Losses) on Interscheme sale of investments – –1.5 Realised Gains / (Losses) on External sale / redemption of



(A) 453.25 414.78

2 EXPENSES2.1 Management fees 24.21 22.75 2.2 Service tax on Management fees 3.61 3.19 2.3 Transfer agents fees and expenses 1.36 1.29 2.4 Custodian fees 0.49 0.25 2.5 Trusteeship fees – –2.6 Commission to Agents 21.73 20.97 2.7 Marketing & Distribution expenses – –2.8 Audit fees 0.20 0.20 2.9 Investor Education Expenses 1.19 1.09 2.10 Other operating expenses 1.47 0.57 2.11 Less: Expenses to be Reimbursed by the Investment Manager – (1.01)


FOR THE PERIOD (A - B = C) 398.99 365.48 4 Change in Unrealised Depreciation

in value of investments (D) 34.37 (356.81)5 NET GAINS / (LOSSES) FOR THE PERIOD [E = (C+D)] 433.36 8.67 6 Change in unrealised appreciation

in the value of investments (F) 17.50 – 7 NET SURPLUS / (DEFICIT) FOR THE PERIOD (E + F = G) 450.86 8.67

7.1 Add: Balance transfer from Unrealised Appreciation Reserve – –7.2 Less: Balance transfer to Unrealised Appreciation Reserve 17.50 – 7.3 Add / (Less): Equalisation – – 7.4 Transfer from Reserve Fund 8.67 – 7.5 Transfer from Unit Premium Reserve – – 8 Total 442.03 8.67 9 Dividend Appropriation9.1 Income Distributed during the period – –9.2 Tax on income distributed during the period – –10 Retained Surplus / (Defi cit) carried forward

to Balance sheet442.03 8.67


19



HSBC CAPITAL PROTECTION ORIENTED FUND SERIES II – PLAN I

Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016


Open



Direct Plan - Growth Option – –


High





Low





End






End 7,639 7,073


3. Gross income as % of AAuM2* 7.25% 7.10%

4. Expense Ratio:

a. Total Expense as % of AAuM (including service tax on Management fees) (planwise)*


b. Management Fee as % of AAuM (planwise)*


5. Net Income as a percentage of AAuM3* 6.18% 6.03%



20



Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016

Retail


Corporate


8. Returns (%):

a. Last One Year

Scheme

Regular Growth Option 8.0015 (0.0393)

Direct Plan - Growth Option N.A. N.A.

Benchmark


b. Since Inception

Scheme



Benchnmark


1. AAuM = Average daily net assets2. Gross income = amount against (A) in the Revenue account i.e. Income3. Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the period4. Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the period

* Indicates annualised value


21


Key Statistics for the period ended March 31, 2017 (Contd...)

HSBC CAPITAL PROTECTION ORIENTED FUND SERIES II – PLAN II

Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016


Open

Growth Option 10.0150 N.A.

Dividend Option 10.0150 N.A.

Direct Plan - Growth Option – N.A.

Direct Plan - Dividend Option – N.A.

High





Low





End






End 6,221 5,770


3. Gross income as % of AAuM2* 7.60% 7.28%

4. Expense Ratio:

a. Total Expense as % of AAuM (including service tax on Management fees) (planwise)*


b. Management Fee as % of AAuM (planwise)*


5. Net Income as a percentage of AAuM3* 6.69% 6.42%


22




Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016


Retail


Corporate


8. Returns (%):

a. Last One Year

Scheme

Regular Growth Option 7.8143 N.A.

Regular Dividend Option 7.8143 N.A.


Benchmark

CRISIL MIP Blended Index 12.2956 N.A.

b. Since Inception

Scheme


Regular Dividend Option 4.0009 0.1500


Benchnmark


1. AAuM = Average daily net assets2. Gross income = amount against (A) in the Revenue account i.e. Income3. Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the period4. Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the period


23


Notes to Accounts - Annexure ITo the Abridged Balance Sheet and Revenue Account for the year ended March 31, 2017


1 Investments:


1.2. Open Positions of derivatives as of years ended March 31, 2017 and March 31, 2016 :

Hedging Positions through Options as on March 31, 2017 :

Scheme Name Underlying Number of contracts

Option Price when purchased

Current Price

NIL

Total Exposure through options as a percentage of net assets : NIL

For the Period ended March 31, 2017 specify the following for hedging transactions through options which have already been exercised/expired :

Total Number of contracts entered into : NIL

Gross Notional Value of contracts : NIL

Net Profi t/Loss on all contracts (premium paid treated as loss) : NIL

Hedging Positions through Options as on March 31, 2016:



Current Price

NIL


For the Period ended March 31, 2015 specify the following for hedging transactions through options which have already been exercised / expired :

Total Number of contracts entered into : NIL

Gross Notional Value of contracts : NIL

Net Profi t / Loss on all contracts (premium paid treated as loss) : NIL

Other than Hedging Positions through Options as on March 31, 2017:

Scheme Name Underlying Call / put Number of contracts


Current Price

HCPOF SII PI Nifty Index Call Option 576 2191.45 1480.45

Total Exposure through options as a percentage of net assets : 8.37%

For the Period ended March 31, 2017 following details specifi ed with regard to non-hedging transactions through options which have already been exercised/expired : NILTotal Number of contracts entered into : NILGross Notional Value of contracts : NILNet Profi t/Loss on all contracts (premium paid treated as loss) : NIL

24






Current Price

HCPOF SII PI Nifty Index Call Option 576 2191.45 1349.75


For the Period ended March 31, 2016 following details specifi ed with regard to non-hedging transactions through options which have already been exercised/expired : NIL

Total Number of contracts entered into : 576

Gross Notional Value of contracts : Rs. 94,696,560/-

Net Profi t/Loss on all contracts (premium paid treated as loss) : NIL

1.3. Investments in Associates and Group Companies as of year ended March 31, 2017 and March 31, 2016 are NIL.


1.5. NPA as at years ended March 31, 2017 and March 31, 2016 are NIL.

1.6. Aggregate Unrealised Gain / Loss as at the end of the fi nancial period and percentage to net assets:



Amount (Rupees)


2017 2016


– Appreciation 9,448,169 1.24 3,687,535 0.52


Derivatives (Options)


– Depreciation 30,741,120 4.02 36,387,360 5

1.7. The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2016-17 (excluding accretion of discount) are Rs. 45,157,832 and Rs. 7,000,000 respectively being 6.17% and 0.96% of the average daily net assets.

The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2015-2016 (excluding accretion of discount) is NIL.

1.8. Non -Traded securities in the portfolio: Aggregate Value of Equity, Debt & Money Market Instruments and percentages to net assets are as under :



Amount (Rupees)


2017 2016


Total 635,638,363 83.21 541,404,055 76.54

25







Relation

Period Covered



Commission paid

[Rupees]


Fund


Associate 2016-2017 – – 2,673,369.53 91.76



Relation

Period Covered



Commission paid

[Rupees]


Fund


Associate 2015-2016 0.06 6.93 2,630,698.73 91.52







3 None of the Investors held more than 25% of the total net assets of the Scheme at the year ended March 31, 2017.


Description 2016–2017


Growth Option 68,645,883.086 – – 68,645,883.086 10

Dividend Option 1,029,852.818 – – 1,029,852.818 10

26





Growth Option 68,645,883.086 – – 68,645,883.086 10

Dividend Option 1,029,852.818 – – 1,029,852.818 10

5 No contingent liabilities for the year ended March 31, 2017.













27


Notes to Accounts – Annexure I (Contd...)To the Abridged Balance Sheet and Revenue Account for the period ended March 31, 2017


1 Investments:


1.2. Open Positions of derivatives as of years ended March 31, 2017 and March 31, 2016 :




Current Price

NIL


For the Period ended March 31, 2017 specify the following for hedging transactions through options which have already been exercised / expired :Total Number of contracts entered into : NILGross Notional Value of contracts : NILNet Profi t/Loss on all contracts (premium paid treated as loss) : NIL




Current Price

HCPOF SII PII Nifty Index Call Option 460 2250.20 1316.20


For the Period ended March 31, 2017 following details specifi ed with regard to non-hedging transactions through options which have already been exercised/expired : NILTotal Number of contracts entered into : NILGross Notional Value of contracts : NIL Net Profi t/Loss on all contracts (premium paid treated as loss) : NIL




Current Price

NIL


For the Period ended March 31, 2016 specify the following for hedging transactions through options which have already been exercised / expired :Total Number of contracts entered into : NILGross Notional Value of contracts : NILNet Profi t/Loss on all contracts (premium paid treated as loss) : NIL

Other than Hedging Positions through Options as on March 31, 2016 :



Current Price

HCPOF SII PII Nifty Index Call Option 460 2250.20 1258.70


For the Period ended March 31, 2016 following details specifi ed with regard to non-hedging transactions through options which have already been exercised/expired : NILTotal Number of contracts entered into : 460Gross Notional Value of contracts :Rs. 77,652,600/-Net Profi t/Loss on all contracts (premium paid treated as loss) : NIL

28






1.6. Aggregate Unrealised Gain / Loss as at the end of the fi nancial period and percentage to net assets:



Amount (Rupees)


2017 2016


- Appreciation 2,874,083 0.46 347,500 0.06

- Depreciation 1,123,734 0.18 1,800,623 0.31

Derivetives (Options)

- Appreciation – – – –

- Depreciation 32,243,700 5.18 34,227,450 5.93

1.7. The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial period 2016-2017 (excluding accretion of discount) is Rs. 50,013,603 and Rs. 11,000,000 respectively being 8.38% and 1.84% of the average daily net assets.

The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial period 2015-2016 (excluding accretion of discount) is Rs. 479,246,488 being 84.15% of the average daily net assets.




Amount (Rupees)


2017 2016


Total 530,867,729 85.34 432,823,924 75.01





Relation

Period Covered



Commission paid

[Rupees]


Fund



2016-2017 – – 1,822,580.84 91.66

29





Relation

Period Covered



Commission paid

[Rupees]


Fund



2015-2016 57.61 97.35 1,699,644.33 91.12







3 None of the Investors held more than 25% of the total net assets of the Scheme at the year ended March 31, 2017.




Growth Option 56,437,012.044 – – 56,437,012.044 10

Dividend Option 1,175,000.000 – – 1,175,000.000 10



Growth Option – 56,437,012.044 – 56,437,012.044 10

Dividend Option – 1,175,000.000 – 1,175,000.000 10



30














31




32







HSBC Fixed Term Series (FTS) 21

HSBC Fixed Term SeriesA Close-ended Income Scheme


1


Dear Investor,






2

21 HSBC Fixed Term Series (FTS)


Warm regards,

Ravi Menon



3













4








HSBC Fixed Term Series – close ended income schemes The scheme seeks to generate returns by investing in a portfolio of fi xed income instruments which mature on or before the maturity date of the plans under the scheme.

Details of scheme launched since last annual report :

Scheme Name Date of Launch

HSBC Fixed Term Series 129 June 07, 2017

HSBC Fixed Term Series 128 April 20, 2017

Details of schemes rolled-over during the period :

Scheme Name Date of roll-over

HSBC Fixed Term Series 94October 26, 2016

HSBC Fixed Term Series 96

Being close ended fi xed maturity plans, the performance of these schemes are not provided.



Normal Monsoon season after two below normal years, implementation of seventh pay commission and OROP provided tailwinds to consumption and the passage of the landmark tax legislation of GST provided further impetus to the reforms roadmap. The domestic Mutual Fund segment brought in ~USD 8.4 bn of


5


net infl ows in equities during the year. Even after witnessing ~USD 3.9 bn of net outfl ows from the domestic insurers, the net DII tally was an impressive ~USD 4.5 bn of net infl ows. There were positive global cues as well and the Foreign Institutional Investors (FIIs) net bought Indian equities worth USD 8.3 bn. Strong fl ows by both FIIs / FPIs and domestic MFs acted as a factor in the strong market performance.



NSE CNX Nifty 18.5%

S&P BSE 100 21.2%

S&P BSE 200 22.5%

S&P BSE 500 24.0%


Source: Bloomberg








Deposit growth shot up during the period due to demonetization. However, credit growth nosedived and remained single digit number towards the close of the year. RBI changed its stance on liquidity at the start of the year and created liquidity surplus. Further, there were pressure to handle surplus liquidity created by


6


demonetization. CRR was adopted as a measure initially and later short duration T bills were issued to manage the liquidity. Still the system liquidity remained surplus to the extent of 3% of deposits for the last quarter. Credit growth remained subdued due to lower commodity prices, lower trade activity and slower economic growth and demonetization. Currency (INR) appreciated during the year especially given the strong political outlook that came out in March 2017 and the after effect of demonetization and hawkish monetary stance.










a. Sponsor



b. HSBC Mutual Fund




7















HSBC FTS 89 Plan – – 631006.12 1




8



2016-2017

Com-plaintCode




receivedduring

theyear



ble*

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months


0 6 4 2 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 6 5 0 0 0 0 1 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


1 34 35 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0 0 0


0 6 6 0 0 0 0 0 0 0 0

IV Others 0 21 20 0 0 0 0 1 0 0 0

Total 1 73 70 2 0 0 0 2 0 0 0


9



Particulars Count













June 2016 124 101 0 23

September 2016 1,005 880 27 98

December 2016 58 42 9 7

March 2017 39 33 3 3

Total 1,226 1,056 39 131







10






Sd/-

N. P. Gidwani

Chairman



11




HSBC Mutual Fund - HSBC Fixed Term Series 94

Report on the Financial StatementsWe have audited the accompanying fi nancial statements of HSBC Fixed Term Series 94 (the ‘Scheme’), which comprise the balance sheet as at 31 March 2017, the related revenue account and the cash fl ow statement for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, annexed thereto.









12





2 As required by Clause 5(ii)(2) of the Eleventh Schedule of the Regulations, we report that the balance sheet, revenue account and cash fl ow statement are in agreement with the books of account of the Scheme.



Sd/-




13














14








Sd/-




15














16








Sd/-




17














18








Sd/-




19














20









Sd/-



21














22









Sd/-



23














24









Sd/-



25





Report on the Financial StatementsWe have audited the accompanying fi nancial statements of HSBC Fixed Term Series 126 (the ‘Scheme’), which comprise the balance sheet as at 31 March 2017, the related revenue account and the cash fl ow statement for the period from 20 May 2016 (i.e. the date of allotment) to 31 March 2017 (the ‘Period’), and a summary of signifi cant accounting policies and other explanatory information, annexed thereto.







(ii) in the case of the revenue account, of the net surplus for the Period ended on that date; and

(iii) in the case of the cash fl ow statement, of the cash fl ows of the Scheme for the Period ended on that date.

26









Sd/-



27


Rs. in Lakhs

HSBC FIXED TERM SERIES 94As at

March 31, 2017As at

March 31, 2016

LIABILITIES1 Unit Capital 938.42 7,833.36 2 Reserves & Surplus2.1 Unit Premium Reserves (4,191.49) (1,967.56)2.2 Unrealised Appreciation Reserve – – 2.3 Other Reserves 4,527.23 4,068.52 3 Loans & Borrowings – – 4 Current Liabilities & Provisions4.1 Provision for doubtful Income/Deposits – – 4.2 Other Current Liabilities & Provisions 8.41 11.46

TOTAL 1,282.57 9,945.78

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – – 1.1.2 Preference Shares – – 1.1.3 Equity Linked Debentures – – 1.1.4 Other Debentures & Bonds 1,157.74 9,434.72 1.1.5 Securitised Debt securities – – 1.2 Securities Awaited Listing:1.2.1 Equity Shares – – 1.2.2 Preference Shares – – 1.2.3 Equity Linked Debentures – – 1.2.4 Other Debentures & Bonds – – 1.2.5 Securitised Debt securities – – 1.3 Unlisted Securities1.3.1 Equity Shares – – 1.3.2 Preference Shares – – 1.3.3 Equity Linked Debentures – – 1.3.4 Other Debentures & Bonds – – 1.3.5 Securitised Debt securities – – 1.4 Government Securities – – 1.5 Treasury Bills – – 1.6 Commercial Paper – – 1.7 Certifi cate of Deposits – – 1.8 Bill Rediscounting – – 1.9 Units of Domestic Mutual Fund – – 1.10 Foreign Securities – –



TOTAL 1,282.57 9,945.78



28



Rs. in Lakhs


March 31, 2017As at

March 31, 2016

LIABILITIES1 Unit Capital 96.24 4,122.48 2 Reserves & Surplus2.1 Unit Premium Reserves (2,295.40) (1,025.04)2.2 Unrealised Appreciation Reserve – 10.02 2.3 Other Reserves 2,329.08 2,094.88 3 Loans & Borrowings – – 4 Current Liabilities & Provisions4.1 Provision for doubtful Income/Deposits – – 4.2 Other Current Liabilities & Provisions 5.88 4.82

TOTAL 135.80 5,207.16

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – – 1.1.2 Preference Shares – – 1.1.3 Equity Linked Debentures – – 1.1.4 Other Debentures & Bonds 91.38 4,735.54 1.1.5 Securitised Debt securities – – 1.2 Securities Awaited Listing:1.2.1 Equity Shares – – 1.2.2 Preference Shares – – 1.2.3 Equity Linked Debentures – – 1.2.4 Other Debentures & Bonds – – 1.2.5 Securitised Debt securities – – 1.3 Unlisted Securities1.3.1 Equity Shares – – 1.3.2 Preference Shares – – 1.3.3 Equity Linked Debentures – – 1.3.4 Other Debentures & Bonds – – 1.3.5 Securitised Debt securities – – 1.4 Government Securities – – 1.5 Treasury Bills – – 1.6 Commercial Paper – – 1.7 Certifi cate of Deposits – – 1.8 Bill Rediscounting – – 1.9 Units of Domestic Mutual Fund – – 1.10 Foreign Securities – –



TOTAL 135.80 5,207.16


29


Rs. in Lakhs


March 31, 2017As at

March 31, 2016

LIABILITIES1 Unit Capital 313.95 4,659.26 2 Reserves & Surplus2.1 Unit Premium Reserves (2,186.84) (981.70)2.2 Unrealised Appreciation Reserve – 12.87 2.3 Other Reserves 2,285.66 2,029.52 3 Loans & Borrowings – – 4 Current Liabilities & Provisions4.1 Provision for doubtful Income/Deposits – – 4.2 Other Current Liabilities & Provisions 4.74 6.45

TOTAL 417.51 5,726.40

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – – 1.1.2 Preference Shares – – 1.1.3 Equity Linked Debentures – – 1.1.4 Other Debentures & Bonds 335.19 3,250.41 1.1.5 Securitised Debt securities – – 1.2 Securities Awaited Listing:1.2.1 Equity Shares – – 1.2.2 Preference Shares – – 1.2.3 Equity Linked Debentures – – 1.2.4 Other Debentures & Bonds – – 1.2.5 Securitised Debt securities – – 1.3 Unlisted Securities1.3.1 Equity Shares – – 1.3.2 Preference Shares – – 1.3.3 Equity Linked Debentures – – 1.3.4 Other Debentures & Bonds – – 1.3.5 Securitised Debt securities – – 1.4 Government Securities – 2,012.91 1.5 Treasury Bills – – 1.6 Commercial Paper – – 1.7 Certifi cate of Deposits – – 1.8 Bill Rediscounting – – 1.9 Units of Domestic Mutual Fund – – 1.10 Foreign Securities – –



TOTAL 417.51 5,726.40



30


Rs. in Lakhs


March 31, 2017As at

March 31, 2016

LIABILITIES1 Unit Capital 5,657.28 5,657.28 2 Reserves & Surplus2.1 Unit Premium Reserves (2,194.53) (2,194.53)2.2 Unrealised Appreciation Reserve 0.71 0.50 2.3 Other Reserves 3,786.17 3,280.73 3 Loans & Borrowings – – 4 Current Liabilities & Provisions4.1 Provision for doubtful Income/Deposits – – 4.2 Other Current Liabilities & Provisions 10.83 7.63

TOTAL 7,260.46 6,751.60

ASSETS – – 1 Investments1.1 Listed Securities:1.1.1 Equity Shares – – 1.1.2 Preference Shares – – 1.1.3 Equity Linked Debentures – – 1.1.4 Other Debentures & Bonds 3,174.06 5,370.68 1.1.5 Securitised Debt securities – – 1.2 Securities Awaited Listing:1.2.1 Equity Shares – – 1.2.2 Preference Shares – – 1.2.3 Equity Linked Debentures – – 1.2.4 Other Debentures & Bonds – – 1.2.5 Securitised Debt securities – – 1.3 Unlisted Securities1.3.1 Equity Shares – – 1.3.2 Preference Shares – – 1.3.3 Equity Linked Debentures – – 1.3.4 Other Debentures & Bonds – – 1.3.5 Securitised Debt securities – – 1.4 Government Securities – 866.79 1.5 Treasury Bills – – 1.6 Commercial Paper – – 1.7 Certifi cate of Deposits – – 1.8 Bill Rediscounting – – 1.9 Units of Domestic Mutual Fund – – 1.10 Foreign Securities – –


2 Deposits 5.55 0.48 3 Other Current Assets3.1 Cash & Bank Balance 90.80 0.19 3.2 CBLO / Reverse Repo Lending 3,732.50 291.44 3.3 Others 257.55 222.02 4 Deferred Revenue Expenditure (to the extent not written off) – –

TOTAL 7,260.46 6,751.60



31



Rs. in Lakhs


March 31, 2017As at

March 31, 2016


TOTAL 4,110.04 3,820.15

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares – – 1.1.2 Preference Shares – – 1.1.3 Equity Linked Debentures – – 1.1.4 Other Debentures & Bonds 1,794.39 3,035.58 1.1.5 Securitised Debt securities – – 1.2 Securities Awaited Listing:1.2.1 Equity Shares – – 1.2.2 Preference Shares – – 1.2.3 Equity Linked Debentures – – 1.2.4 Other Debentures & Bonds – – 1.2.5 Securitised Debt securities – – 1.3 Unlisted Securities1.3.1 Equity Shares – – 1.3.2 Preference Shares – – 1.3.3 Equity Linked Debentures – – 1.3.4 Other Debentures & Bonds – – 1.3.5 Securitised Debt securities – – 1.4 Government Securities – 488.83 1.5 Treasury Bills – – 1.6 Commercial Paper – – 1.7 Certifi cate of Deposits – – 1.8 Bill Rediscounting – – 1.9 Units of Domestic Mutual Fund – – 1.10 Foreign Securities – –



TOTAL 4,110.04 3,820.15


32



Rs. in Lakhs


March 31, 2017As at

March 31, 2016


TOTAL 9,779.05 9,092.56

ASSETS – 1 Investments1.1 Listed Securities:1.1.1 Equity Shares – – 1.1.2 Preference Shares – – 1.1.3 Equity Linked Debentures – – 1.1.4 Other Debentures & Bonds 4,262.70 7,228.34 1.1.5 Securitised Debt securities – – 1.2 Securities Awaited Listing:1.2.1 Equity Shares – – 1.2.2 Preference Shares – – 1.2.3 Equity Linked Debentures – – 1.2.4 Other Debentures & Bonds – – 1.2.5 Securitised Debt securities – – 1.3 Unlisted Securities1.3.1 Equity Shares – – 1.3.2 Preference Shares – – 1.3.3 Equity Linked Debentures – – 1.3.4 Other Debentures & Bonds – – 1.3.5 Securitised Debt securities – – 1.4 Government Securities – 1,164.12 1.5 Treasury Bills – – 1.6 Commercial Paper – – 1.7 Certifi cate of Deposits – – 1.8 Bill Rediscounting – – 1.9 Units of Domestic Mutual Fund – – 1.10 Foreign Securities – –



TOTAL 9,779.05 9,092.56


33



Rs. in Lakhs


March 31, 2017As at

March 31, 2016

LIABILITIES1 Unit Capital 11,855.35 11,855.35 2 Reserves & Surplus2.1 Unit Premium Reserves – – 2.2 Unrealised Appreciation Reserve 110.16 3.22 2.3 Other Reserves 970.84 7.78 3 Loans & Borrowings – –4 Current Liabilities & Provisions – –4.1 Provision for doubtful Income/Deposits – –4.2 Other Current Liabilities & Provisions 15.63 1,037.70

TOTAL 12,951.98 12,904.05

ASSETS 0.01 – 1 Investments1.1 Listed Securities:1.1.1 Equity Shares1.1.2 Preference Shares1.1.3 Equity Linked Debentures1.1.4 Other Debentures & Bonds 12,042.90 8,514.94 1.1.5 Securitised Debt securities1.2 Securities Awaited Listing: – –1.2.1 Equity Shares – –1.2.2 Preference Shares – –1.2.3 Equity Linked Debentures – –1.2.4 Other Debentures & Bonds – –1.2.5 Securitised Debt securities – –1.3 Unlisted Securities – –1.3.1 Equity Shares – –1.3.2 Preference Shares – –1.3.3 Equity Linked Debentures – –1.3.4 Other Debentures & Bonds – –1.3.5 Securitised Debt securities – –1.4 Government Securities – –1.5 Treasury Bills – –1.6 Commercial Paper – –1.7 Certifi cate of Deposits – 987.94 1.8 Bill Rediscounting – –1.9 Units of Domestic Mutual Fund – –1.10 Foreign Securities – –


2 Deposits 1.02 – 3 Other Current Assets3.1 Cash & Bank Balance 18.08 56.37 3.2 CBLO / Reverse Repo Lending 729.14 3,290.07 3.3 Others 160.84 54.73 4 Deferred Revenue Expenditure (to the extent not written off) – –

TOTAL 12,951.98 12,904.05


34



Rs. in Lakhs

HSBC FIXED TERM SERIES 126 #As at

March 31, 2017

LIABILITIES1 Unit Capital 3,101.93 2 Reserves & Surplus2.1 Unit Premium Reserves – 2.2 Unrealised Appreciation Reserve 27.84 2.3 Other Reserves 209.27 3 Loans & Borrowings – 4 Current Liabilities & Provisions4.1 Provision for doubtful Income/Deposits – 4.2 Other Current Liabilities & Provisions 4.66

TOTAL 3,343.70 ASSETS

1 Investments1.1 Listed Securities:1.1.1 Equity Shares – 1.1.2 Preference Shares – 1.1.3 Equity Linked Debentures – 1.1.4 Other Debentures & Bonds 3,044.13 1.1.5 Securitised Debt securities – 1.2 Securities Awaited Listing:1.2.1 Equity Shares – 1.2.2 Preference Shares – 1.2.3 Equity Linked Debentures – 1.2.4 Other Debentures & Bonds – 1.2.5 Securitised Debt securities – 1.3 Unlisted Securities1.3.1 Equity Shares – 1.3.2 Preference Shares – 1.3.3 Equity Linked Debentures – 1.3.4 Other Debentures & Bonds – 1.3.5 Securitised Debt securities – 1.4 Government Securities – 1.5 Treasury Bills – 1.6 Commercial Paper – 1.7 Certifi cate of Deposits – 1.8 Bill Rediscounting – 1.9 Units of Domestic Mutual Fund – 1.10 Foreign Securities –

Total Investments 3,044.13

2 Deposits 0.17 3 Other Current Assets3.1 Cash & Bank Balance 4.85 3.2 CBLO / Reverse Repo Lending 194.60 3.3 Others 99.95 4 Deferred Revenue Expenditure (to the extent not written off) –

TOTAL 3,343.70

Notes to Accounts - Annexure I# Scheme launched during the current fi nancial year

35


Abridged Revenue Account for the year ended March 31, 2017 (Contd...)

Rs. in Lakhs

HSBC FIXED TERM SERIES 94

Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016

1 INCOME1.1 Dividend – – 1.2 Interest 539.87 862.37 1.3 Realised Gain / (Loss) on Foreign Exchange Transactions – – 1.4 Realised Gains / (Losses) on Interscheme sale of

investments– –


(57.54) (0.05)

1.6 Realised Gains / (Losses) on Derivative Transactions – – 1.7 Other Income – –

(A) 482.33 862.32 2 EXPENSES2.1 Management fees 24.04 35.56 2.2 Service tax on Management fees 3.60 5.13 2.3 Transfer agents fees and expenses 0.72 1.08 2.4 Custodian fees 0.22 0.62 2.5 Trusteeship fees – – 2.6 Commission to Agents – – 2.7 Marketing & Distribution expenses 0.11 0.03 2.8 Audit fees 0.20 0.20 2.9 Investor Education Expenses 1.27 1.91 2.10 Other operating expenses 0.06 0.29 2.11 Less : Expenses to be Reimbursed by

the Investment Manager– –


FOR THE PERIOD (A - B = C) 452.11 817.50 4 Change in Unrealised Depreciation in

value of investments (D) 6.92 (11.72)5 NET GAINS / (LOSSES) FOR THE PERIOD [E = (C+D)] 459.03 805.78 6 Change in unrealised appreciation in the

value of investments (F) – (64.59)7 NET SURPLUS / (DEFICIT) FOR THE PERIOD (E + F = G) 459.03 741.19 7.1 Add: Balance transfer from Unrealised Appreciation

Reserve– 64.59

7.2 Less: Balance transfer to Unrealised Appreciation Reserve – – 7.3 Add / (Less): Equalisation – – 7.4 Transfer from Reserve Fund 4,068.52 3,262.74 7.5 Transfer from Unit Premium Reserve – – 8 TOTAL 4,527.55 4,068.52 9 Dividend appropriation9.1 Income Distributed during the period 0.23 – 9.2 Tax on income distributed during the period 0.09 –

10 Retained Surplus / (Defi cit) carried forwardto Balance sheet 4,527.23 4,068.52


36



Rs. in Lakhs


Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016

1 INCOME1.1 Dividend – –

1.2 Interest 255.56 435.80




(6.51) (0.07)


1.7 Other Income – – (A) 249.05 435.73

2 EXPENSES2.1 Management fees 7.06 13.14 2.2 Service tax on Management fees 1.06 1.89 2.3 Transfer agents fees and expenses 0.35 0.57 2.4 Custodian fees 0.11 0.42 2.5 Trusteeship fees – – 2.6 Commission to Agents 3.31 5.56 2.7 Marketing & Distribution expenses 0.11 0.03 2.8 Audit fees 0.20 0.20 2.9 Investor Education Expenses 0.62 1.00 2.10 Other operating expenses 1.51 0.21 2.11 Less : Expenses to be Reimbursed by the Investment Manager – –



value of investments (D) (0.37) –

5 NET GAINS / (LOSSES) FOR THE PERIOD [E = (C+D)] 234.35 412.71

6 Change in unrealised appreciation in the value of investments (F) (10.02) (26.72)

7 NET SURPLUS / (DEFICIT) FOR THE PERIOD (E + F = G) 224.33 385.99

7.1 Add: Balance transfer from Unrealised Appreciation Reserve 10.02 26.72 7.2 Less: Balance transfer to Unrealised Appreciation Reserve – – 7.3 Add / (Less): Equalisation – – 7.4 Transfer from Reserve Fund 2,094.88 1,682.17 7.5 Transfer from Unit Premium Reserve – –

8 TOTAL 2,329.23 2,094.88


9.1 Income Distributed during the period 0.11 –

9.2 Tax on income distributed during the period 0.04 –

10 Retained Surplus / (Defi cit) carried forwardto Balance sheet 2,329.08 2,094.88


37


Rs. in Lakhs


Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016


investments– –


(19.28) (0.07)


(A) 271.68 479.79 2 EXPENSES2.1 Management fees 10.80 16.44 2.2 Service tax on Management fees 1.62 2.36 2.3 Transfer agents fees and expenses 0.40 0.62 2.4 Custodian fees 0.08 0.35 2.5 Trusteeship fees – – 2.6 Commission to Agents 4.01 6.65 2.7 Marketing & Distribution expenses 0.11 0.03 2.8 Audit fees 0.20 0.20 2.9 Investor Education Expenses 0.70 1.10 2.10 Other operating expenses 0.07 0.25 2.11 Less : Expenses to be Reimbursed by the Investment Manager – –


FOR THE PERIOD (A -B = C) 253.69 451.79 4 Change in Unrealised Depreciation in

value of investments (D) 8.57 (9.98)

5 NET GAINS / (LOSSES) FOR THE PERIOD [E = (C+D)] 262.26 441.81 6 Change in unrealised appreciation in the

value of investments (F) (12.87) (14.14)

7 NET SURPLUS / (DEFICIT) FOR THE PERIOD (E + F = G) 249.39 427.67 7.1 Add: Balance transfer from Unrealised Appreciation

Reserve12.87 14.14

7.2 Less: Balance transfer to Unrealised Appreciation Reserve – – 7.3 Add / (Less): Equalisation – – 7.4 Transfer from Reserve Fund 2,029.52 1,587.71 7.5 Transfer from Unit Premium Reserve – – 8 TOTAL 2,291.78 2,029.52 9 Dividend appropriation9.1 Income Distributed during the period 4.42 – 9.2 Tax on income distributed during the period 1.70 –

10 Retained Surplus / (Defi cit) carried forward to Balance sheet 2,285.66 2,029.52



38


Rs. in Lakhs


Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016


investments– –


(58.98) (0.94)


(A) 518.51 581.96 2 EXPENSES2.1 Management fees 18.73 16.25 2.2 Service tax on Management fees 2.81 2.34 2.3 Transfer agents fees and expenses 0.80 0.78 2.4 Custodian fees 0.25 0.25 2.5 Trusteeship fees – – 2.6 Commission to Agents 13.01 12.98 2.7 Marketing & Distribution expenses 0.01 0.05 2.8 Audit fees 0.20 0.20 2.9 Investor Education Expenses 1.40 1.38 2.10 Other operating expenses 0.13 0.08 2.11 Less : Expenses to be Reimbursed by the Investment Manager (0.74) –



value of investments (D) 23.53 (22.59)


6 Change in unrealised appreciation inthe value of investments (F) 0.21 0.50

7 NET SURPLUS / (DEFICIT) FOR THE PERIOD (E + F = G) 505.65 525.56 7.1 Add: Balance transfer from Unrealised Appreciation

Reserve(0.21) (0.50)

7.2 Less: Balance transfer to Unrealised Appreciation Reserve – – 7.3 Add / (Less): Equalisation – – 7.4 Transfer from Reserve Fund 3,280.73 2,769.32 7.5 Transfer from Unit Premium Reserve – – 8 Total 3,786.17 3,294.38 9 Dividend appropriation9.1 Income Distributed during the period – 9.86 9.2 Tax on income distributed during the period – 3.79 10 Retained Surplus / (Defi cit) carried forward to

Balance sheet 3,786.17 3,280.73



39


Rs. in Lakhs


Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016


investments– –


(33.46) (1.22)





value of investments (D) 13.31 (12.22)5 NET GAINS / (LOSSES) FOR THE PERIOD [E = (C+D)] 285.94 296.60 6 Change in unrealised appreciation in

the value of investments (F) 0.12 0.28

7 NET SURPLUS / (DEFICIT) FOR THE PERIOD (E + F = G) 286.06 296.88

7.1 Add: Balance transfer from Unrealised Appreciation Reserve (0.12) (0.28)7.2 Less: Balance transfer to Unrealised Appreciation Reserve – – 7.3 Add / (Less): Equalisation – – 7.4 Transfer from Reserve Fund 1,762.45 1,473.58 7.5 Transfer from Unit Premium Reserve – – 8 TOTAL 2,048.39 1,770.18 9 Dividend appropriation9.1 Income Distributed during the period – 5.58 9.2 Tax on income distributed during the period – 2.15

10 Retained Surplus / (Defi cit) carried forward to Balance sheet 2,048.39 1,762.45



40


Rs. in Lakhs


Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016


investments– –


(82.19) (0.11)





value of investments (D) 34.32 (34.32)5 NET GAINS / (LOSSES) FOR THE PERIOD [E = (C+D)] 684.94 694.31 6 Change in unrealised appreciation in

the value of investments (F) 0.28 0.09

7 NET SURPLUS / (DEFICIT) FOR THE PERIOD (E + F = G) 685.22 694.40 7.1 Add: Balance transfer from Unrealised

Appreciation Reserve(0.28) (0.09)

7.2 Less: Balance transfer to Unrealised Appreciation Reserve – – 7.3 Add / (Less): Equalisation – – 7.4 Transfer from Reserve Fund 3,508.13 2,819.21 7.5 Transfer from Unit Premium Reserve – – 8 TOTAL 4,193.07 3,513.52 9 Dividend appropriation9.1 Income Distributed during the period – 3.89 9.2 Tax on income distributed during the period – 1.50 10 Retained Surplus / (Defi cit) carried forward to

Balance sheet 4,193.07 3,508.13



41



Rs. in Lakhs


CurrentPeriod ended

March 31, 2017

CurrentYear ended

March 31, 2016

1 INCOME1.1 Dividend – – 1.2 Interest 1,026.79 7.98 1.3 Realised Gain / (Loss) on Foreign Exchange Transactions – – 1.4 Realised Gains / (Losses) on Interscheme sale of investments – – 1.5 Realised Gains / (Losses) on External sale / redemption of

investments0.60 (0.04)

1.6 Realised Gains / (Losses) on Derivative Transactions 0.11 – 1.7 Other Income – –

(A) 1,027.50 7.94 2 EXPENSES2.1 Management fees 31.73 0.03 2.2 Service tax on Management fees 4.75 – 2.3 Transfer agents fees and expenses 1.42 0.11 2.4 Custodian fees 0.56 – 2.5 Trusteeship fees – – 2.6 Commission to Agents 25.03 0.07 2.7 Marketing & Distribution expenses 0.01 – 2.8 Audit fees 0.20 0.20 2.9 Investor Education Expenses 2.49 0.01 2.10 Other operating expenses 0.05 0.34 2.11 Less: Expenses to be Reimbursed by the Investment Manager (1.80) (0.60)

(B) 64.44 0.16

3 NET REALISED GAINS / (LOSSES)FOR THE PERIOD (A -B = C) 963.06 7.78

4 Change in Unrealised Depreciation in value of investments (D) – –


6 Change in unrealised appreciation inthe value of investments (F) 106.94 3.22

7 NET SURPLUS / (DEFICIT) FOR THE PERIOD (E + F = G) 1,070.00 11.00

7.1 Add: Balance transfer from Unrealised Appreciation Reserve – – 7.2 Less: Balance transfer to Unrealised Appreciation Reserve 106.94 3.22 7.3 Add / (Less): Equalisation – – 7.4 Transfer from Reserve Fund 7.78 – 7.5 Transfer from Unit Premium Reserve – –

8 TOTAL 970.84 7.78

9 Dividend appropriation9.1 Income Distributed during the period – – 9.2 Tax on income distributed during the period – –

10 Retained Surplus / (Defi cit) carried forward toBalance sheet 970.84 7.78


42


Abridged Revenue Account for the period ended March 31, 2017 (Contd...)

Rs. in Lakhs

HSBC FIXED TERM SERIES 126 #

Currentperiod ended

March 31, 2017

1 INCOME1.1 Dividend – 1.2 Interest 224.16 1.3 Realised Gain / (Loss) on Foreign Exchange Transactions – 1.4 Realised Gains / (Losses) on Interscheme sale of investments – 1.5 Realised Gains / (Losses) on External sale / redemption of

investments(0.05)

1.6 Realised Gains / (Losses) on Derivative Transactions – 1.7 Other Income –

(A) 224.11 2 EXPENSES2.1 Management fees 6.95 2.2 Service tax on Management fees 1.04 2.3 Transfer agents fees and expenses 0.34 2.4 Custodian fees 0.12 2.5 Trusteeship fees – 2.6 Commission to Agents 5.82 2.7 Marketing & Distribution expenses 0.01 2.8 Audit fees 0.20 2.9 Investor Education Expenses 0.56 2.10 Other operating expenses 0.10 2.11 Less : Expenses to be Reimbursed by the Investment Manager (0.30)

(B) 14.84

3 NET REALISED GAINS / (LOSSES) FOR THE PERIOD (A -B = C) 209.27

4 Change in Unrealised Depreciation in value of investments (D) –

5 NET GAINS / (LOSSES) FOR THE PERIOD [E = (C+D)] 209.27

6 Change in unrealised appreciation in the value of investments (F) 27.84

7 NET SURPLUS / (DEFICIT) FOR THE PERIOD (E + F = G) 237.11

7.1 Add: Balance transfer from Unrealised Appreciation Reserve – 7.2 Less: Balance transfer to Unrealised Appreciation Reserve 27.84 7.3 Add / (Less): Equalisation – 7.4 Transfer from Reserve Fund – 7.5 Transfer from Unit Premium Reserve – 8 TOTAL 209.27 9 Dividend appropriation9.1 Income Distributed during the period – 9.2 Tax on income distributed during the period – 10 Retained Surplus / (Defi cit) carried forward to

Balance sheet 209.27

Notes to Accounts - Annexure I# Scheme launched during the current fi nancial year

43




Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016


Open





High





Low





End


Dividend Option – 11.4599




End 1,274 9,934



4. Expense Ratio:










Retail

Regular Dividend Option 1.4063 –


44



Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016

Corporate



8. Returns (%):

a. Last One Year

Scheme



Benchmark


b. Since Inception

Scheme



Benchnmark


1. AAuM=Average daily net assets2. Gross income = amount against (A) in the Revenue account i.e. Income3. Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the

period4. Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the period


45




Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016


Open





High





Low





End


Dividend Option 11.4158




End 130 5,202



4. Expense Ratio:










Retail



46



Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016

Corporate



8. Returns (%):

a. Last One Year

Scheme



Benchmark


b. Since Inception

Scheme



Benchnmark


1. AAuM=Average daily net assets2. Gross income = amount against (A) in the Revenue account i.e. Income3. Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the period4. Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the period


47




Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016


Open





High





Low





End


Dividend Option – 11.2782

Direct Plan - Growth Option – 12.3863



End 413 5,720



4. Expense Ratio:










Retail



48



Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016

Corporate



8. Returns (%):

a. Last One Year

Scheme


Direct Plan - Growth Option N.A 8.4895

Benchmark


b. Since Inception

Scheme


Direct Plan - Growth Option N.A 9.1092

Benchnmark




49




Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016


Open





High





Low





End






End 7,250 6,744


3. Gross income as % of AAuM2 * 7.39% 8.41%

4. Expense Ratio:

a. Total Expense as % of AAuM (including service tax on Management fees) (planwise) *



b. Management Fee as % of AAuM (planwise) *





50



Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016


Retail

Regular Dividend Option – 0.7710

Corporate

Regular Dividend Option – 0.71 43

8. Returns (%):

a. Last One Year

Scheme



Benchmark


b. Since Inception

Scheme



Benchnmark





51




Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016


Open





High





Low





End






End 4,102 3,816



4. Expense Ratio:









52



Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016


Retail


Corporate


8. Returns (%):

a. Last One Year

Scheme



Benchmark


b. Since Inception

Scheme



Benchnmark





53




Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016


Open





High





Low





End






End 9,769 9,084



4. Expense Ratio:









54



Current Year ended

March 31, 2017

Previous Year ended

March 31, 2016


Retail


Corporate


8. Returns (%):

a. Last One Year

Scheme



Benchmark


b. Since Inception

Scheme



Benchnmark





55




Current Year ended

March 31, 2017


March 31, 2016


Open

Growth Option – N.A.

Dividend Option – N.A.

Direct Plan - Growth Option – N.A.

Direct Plan - Dividend Option – N.A.

High

Growth Option 10.9106 –

Dividend Option 10.9106 –

Direct Plan - Growth Option 10.9478 –


Low





End






End 12,936 11,866

Average (AAuM)1 12,449 11,866


4. Expense Ratio:









56




Current Year ended

March 31, 2017


March 31, 2016


Retail


Corporate


8. Returns (%):

a. Last One Year

Scheme

Regular Growth Option N.A N.A

Direct Plan - Growth Option N.A N.A

Benchmark

CRISIL Short-Term Bond Fund Index N.A N.A

b. Since Inception

Scheme

Regular Growth Option 9.1060 N.A

Direct Plan - Growth Option 9.4780 N.A

Benchnmark

CRISIL Short-Term Bond Fund Index 11.0896 N.A

1.AAuM=Average daily net assets

2.Gross income = amount against (A) in the Revenue account i.e. Income

3.Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the period

4.Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the period

5.HSBC Fixed Term Series 125 is computed NAV on March 31, 2016,the fi rst NAV is declared on 4th April 2016


57



HSBC FIXED TERM SERIES 126#


March 31, 2017


Open

Growth Option N.A.

Dividend Option N.A.

Direct Plan - Growth Option N.A.

Direct Plan - Dividend Option N.A.

High

Growth Option 10.7644


Direct Plan - Growth Option 10.7962


Low





End






End 3,339

Average (AAuM)1 3,235

3. Gross income as % of AAuM2 * 6.93%

4. Expense Ratio:


Regular Growth Option 0.53%

Direct Plan - Growth Option 0.19%


Regular Growth Option 0.21%

Direct Plan - Growth Option 0.21%

5. Net Income as a percentage of AAuM3 * 6.47%

6. Portfolio turnover ratio4 –

58



HSBC FIXED TERM SERIES 126#


March 31, 2017


Retail

Regular Dividend Option –

Corporate

Regular Dividend Option –

8. Returns (%):

a. Last One Year

Scheme

Regular Growth Option N.A

Direct Plan - Growth Option N.A

Benchmark

CRISIL Short-Term Bond Fund Index N.A

b. Since Inception

Scheme

Regular Growth Option 7.6440


Benchnmark

CRISIL Short-Term Bond Fund Index 9.6890

# Scheme launched during the current fi nancial year

1.AAuM=Average daily net assets

2.Gross income = amount against (A) in the Revenue account i.e. Income

3.Net income = amount against (C) in the Revenue account i.e. Net Realised Gains / (Losses) for the period

4. Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the period


59


Notes to Accounts - Annexure ITo the Abridged Balance Sheet and Revenue Account for the year ended March 31, 2017


1 Investments:-


1.2. Open Positions of derivatives as of years ended March 31, 2017 and March 31, 2016 are NIL

1.3. Investments in Associates and Group Companies as of period ended March 31, 2017 is NIL.



1.6. Aggregate Unrealised Gain / Loss as at the end of the fi nancial years and percentage to net assets.

(Rupees)

Security Category Amount Percentage to Net Assets

Amount Percentage to Net Assets

2017 2016


– Appreciation 18,227 0.01 1,167,036 0.12

– Depreciation 498,037 0.39 2,339,122.5000 0.2355

1.7. The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2016-2017 (excluding accretion of discount) is Rs. 124,046,481 and Rs. 950,789,335 respectively being 19.52% and 149.59% of the average daily net assets.

The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2015-2016 (excluding accretion of discount) is Rs. 73,704,817 and Rs. 5,000,000 respectively being 7.71% and 0.52% of the average daily net assets.


Aggregate Value of Equity, Debt & Money Market Instruments and their percentages to Net assets are as under :

(Rupees)

Security Category Fair Value % to Net Assets

Fair Value % to Net Assets

2017 2016

Debt Instruments 115,774,479 90.86 943,471,874.50 94.97

Total 943,471,874.50 0.95

60







Relation

Period Covered


% of Total Business


Commission paid

[Rupees]


Fund



2016-2017 – – – –



Relation

Period Covered


% of Total Business


Commission paid

[Rupees]


Fund



2015-2016 0.95 29.96 – –

The brokerage paid was at rates similar to those offered to other distributors and the Commission/Brokerage paid to related party includes both upfornt and trial and hence not comparable with the % of business brought and % of commission paid.






3 There is 1 investor who held more than 25% of the total net assets of the Scheme as on March 31, 2017. None of the investors held more than 25% of the net assets of the Scheme as on March 31, 2016.




per unit (Rupees)

Growth Option 70,871,574.397 – 61,488,367.621 9,383,206.776 10

Dividend Option 16,500.000 – 16,500.000 0.000 10

Direct Plan – Growth Option

7,445,500.471 – 7,444,500.471 1,000.000 10

61





per unit (Rupees)

Growth Option 70,871,574.397 – – 70,871,574.397 10

Dividend Option 16,500.000 – – 16,500.000 10


7,445,500.471 – – 7,445,500.471 10













8 Rollover of Schemes:

The HSBC Asset Management (India) Private Limited (AMC) has rolled over the following close ended schemes post receipt of no-objection from SEBI. The details of rollover are as under:

Scheme Name Existing Maturity date

Revised Maturity date

Period of Rollover

Units on Maturity date

Units Rolled over

HFTS94 26-Oct-16 16-Jul-18 628 days 78,333,574.868 9,384,206.776

A notice providing the rationale, terms and features of rollover of the aforesaid schemes have been published in the newspapers and is also available on the website of the AMC. All the unit holders who have not consented for the rollover in writing have been redeemed and payouts have been made.

Note: The Rollover of schemes resulted in material change in unit capital, investment activities by AMC etc.

Hence previous fi gures are strictly not comparable.


62




1 Investments:-






1.6. Aggregate Unrealised Gain / Loss as at the end of the fi nancial years and percentage to net assets:

(Rupees)

Security Category Amount Percentage to Net Assets

Amount Percentage to Net Assets

2017 2016


– Appreciation 1,657 0.01 2,025,798 0.39

– Depreciation 38,547 0.30 1,024,083.5000 0.1969


The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2015-2016 (excluding accretion of discount) is Rs. 20,127,585 and Rs. 5,000,000 respectively being 4.02% and 1.00% of the average daily net assets.




Amount (Rupees)


2017 2016

Debt Instruments 9,137,868 70.34 473,554,123.50 91.03

Total 9,137,868 70.34 473,554,124 91.03





Relation

Period Covered



Commission paid

[Rupees]


Fund



2016-2017 – – 329,132 99.68

63





Relation

Period Covered



Commission paid

[Rupees]


Fund



2015-2016 1.55 36.51 463,978.36 91.29







3 There is 1 investor who held more than 25% of the total net assets of the Scheme as on March 31, 2017. None of the investors held more than 25% of the net assets of the scheme as on March 31, 2016.

4 Unit Capital movement during the years ended March 31, 2017 and March 31, 2016:

2016-2017Description Opening Units Subscription Redemption Closing Units Face

Value per unit (Rupees)

Growth Option 36,103,440.433 – 35,154,377.918 949,062.515 10

Dividend Option 8,000.000 – 8,000.000 – 10


5,113,374.566 – 5,100,000.000 13,374.566 10

2015-2016Description Opening Units Subscription Redemption Closing Units Face

Value per unit (Rupees)

Growth Option 36,103,440.433 – – 36,103,440.433 10

Dividend Option 8,000.000 – – 8,000.000 10


5,113,374.566 – – 5,113,374.566 10


64


















Period of Rollover


Units Rolled over

HFTS96 26-Oct-16 16-Jul-18 628 days 41,224,814.999 962,437.081





65




1 Investments:-






1.6. Aggregate Unrealised Gain / Loss as at the end of the fi nancial years and percentage to net assets:



Amount (Rupees)


2017 2016


– Appreciation 4,971 0.01 80,150 0.01

– Depreciation 145,248 0.35 1,077,653 0.1884


– Appreciation – – 1,286,600 0.22


1.7. The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2016-2017 (excluding accretion of discount) is Rs. 49,243,698 and Rs.542,933,750 respectively being 13.98% and 154.18% of the average daily net assets.

The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2015-2016 (excluding accretion of discount) is Rs. 20,169,540 and Rs. 0 respectively being 3.66% and 0% of the average daily net assets.




Amount (Rupees)


2017 2016


Total 33,519,037 325,041,281 56.83





Relation

Period Covered



Commission paid

[Rupees]


Fund



2016-2017 – – 392,421 98.97

66





Relation

Period Covered



Commission paid

[Rupees]


Fund



2015-2016 0.11 4.81 555,878 91.37







3 There were 2 investors who held more than 25% of the total net assets of the Scheme as on March 31, 2017. None of the investors held more than 25% of the net assets of the Scheme as on March 31, 2016.




per unit (Rupees)

Growth Option 46,104,973.844 – 42,965,497.912 3,139,475.932 10

Dividend Option 350,000.000 – 350,000.000 – 10


137,650.888 – 137,650.888 – 10



per unit (Rupees)

Growth Option 46,104,973.844 – – 46,104,973.844 10

Dividend Option 350,000.000 – – 350,000.000 10


137,650.888 – – 137,650.888 10

67



















Period of Rollover


Units Rolled over

HFTS98 26-Oct-16 16-Jul-18 628 days 46,592,624.732 3,139,475.932





68




1 Investments:-









Amount (Rupees)


2017 2016


- Appreciation 71,006 0.01 61,264 0.01

- Depreciation – – 2,414,294 0.36


- Appreciation – – 50,052 0 .00~

- Depreciation – – – –



The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2015-2016 (excluding accretion of discount) is Rs. 620,445,061 and Rs. 3,288,614,860 respectively being 89.62% and 475.04% of the average daily net assets.




Amount (Rupees)


2017 2016


Total 317,406,402 43.78 537,068,097 79.64

69






Relation

Period Covered



Commission paid

[Rupees]


Fund


Associate ofInvestmentManager

2016-2017 – – 1,052,456 89.05



Relation

Period Covered



Commission paid

[Rupees]


Fund


Associate ofInvestmentManager

2015-2016 – – 1,051,926 88.52











per unit (Rupees)

Growth Option 56,457,813.243 – – 56,457,813.243 10

Dividend Option 5,000.000 – – 5,000.000 10


110,000.000 – – 110,000.000 10


70





per unit (Rupees)

Growth Option 196,431,734.063 – 139,973,920.820 56,457,813.243 10

Dividend Option 1,278,679.328 – 1,273,679.328 5,000.000 10


63,070,299.730 – 62,960,299.730 110,000.000 10






Opening Balance as on April 01, 2016 -









The AMC rolled over the following close ended schemes after requisite approvals from SEBI. The details of rollover are as under:

Scheme Name Existing Maturity date Revised Maturity date Period of Rollover

HFT105 07-Apr-15 11-Apr-17 735 days

HSBC Asset Management (India) Private Limited had published a notice in newspapers for each of the schemes proposing a rollover .The notice explained the rationale for proposed rollover and also time lines with in which written consents were to be submitted by the Investors for rolling over his units.

The details of Units on the date of maturity of the Scheme and units rolled over were as follows:

Scheme Units on Maturity date Rolled over units

HFT105 260,780,713.12 56,572,813.24

All the investors who did not consent for rollover in writing were redeemed and pay outs were made.

The Rollover of schemes resulted in material change in unit capital, investment activities by AMC etc. Hence previous fi gures are strictly not comparable.

71




72



1 Investments:-









Amount (Rupees)


2017 2016


– Appreciation 40,141 0.01 34,672 0.01

– Depreciation – – 1,365,921 0.36


The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2015-2016 (excluding accretion of discount) is Rs. 350,580,149 and Rs. 1,590,000,000 respectively being 89.41% and 405.50% of the average daily net assets.




Amount (Rupees)


2017 2016


Total 179,439,155 43.75 303,558,323 79.56





Relation

Period Covered



Commission paid

[Rupees]


Fund



2016-2017 – – 637,776 85.26


73




Relation

Period Covered



Commission paid

[Rupees]


Fund



2015-2016 – – 625,528 86.94











Growth Option 32,143,594.348 – – 32,143,594.348 10

Dividend Option 66,004.049 – – 66,004.049 10


19,000.000 – – 19,000.000 10



Growth Option 149,613,222.486 – 117,469,628.138 32,143,594.348 10

Dividend Option 777,591.591 – 711,587.542 66,004.049 10


310,525.697 – 291,525.697 19,000.000 10


74


















HFT107 07-Apr-15 11-Apr-17 735 days


The details of Units on the date of maturity of the scheme and units rolled over were as follows:


HFT107 150,701,339.77 32,228,598.40





75




1 Investments:









Amount (Rupees)


2017 2016


– Appreciation 95,358 0.01 82,474 0.01

– Depreciation – – 3,513,999 0.39


– Appreciation – – 67,221 0.01


1.7. The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2016-2017 (excluding accretion of discount) is Rs.56,161,188 and Rs. 472,500,000 respectively being 5.94% and 50.01% of the average daily net assets.

The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2015-2016 (excluding accretion of discount) is Rs.835,106,440 and Rs. 3,370,000,000 respectively being 91.18% and 367.95% of the average daily net assets.




Amount (Rupees)


2017 2016


Total 426,270,162 43.63 722,833,710 79.57

76







Relation

Period Covered



Commission paid

[Rupees]


Fund



2016-2017 – – 1,230,598 91.03



Relation

Period Covered



Commission paid

[Rupees]


Fund



2015-2016 – – 1,209,539.07 90.87











Growth Option 68,690,101.464 – – 68,690,101.464 10

Dividend Option 30,000.000 – – 30,000.000 10


8,514,000.000 – – 8,514,000.000 10

77




Growth Option 242,819,742.154 – 174,129,640.690 68,690,101.464 10

Dividend Option 589,877.197 – 559,877.197 30,000.000 10


67,570,860.474 – 59,056,860.474 8,514,000.000 10

















HFT109 06-Apr-15 11-Apr-17 736 days


The details of Units on the date of maturity of the scheme and units rolled over were as follows:


HFT109 310,980,479.83 77,234,101.46





78




1 Investments:


1.2. Open Positions of derivatives as of year ended March 31, 2017 and period ended March 31, 2016 are NIL


1.4. Open positions of Securities Borrowed and / or Lent by the Scheme as of the year ended March 31, 2017 and period ended March 31, 2016 are NIL.

1.5. NPAs as at year ended March 31, 2017 and period ended March 31, 2016 are NIL.




Amount (Rupees)


2017 2016


– Appreciation 11,023,586 0.85 541,207 0.05

– Depreciation 7,600 0.00 279,700 0.02

Certifi cates of Deposit/Commercial Paper

– Appreciation – – 60,281 0.01



The aggregate value of investments securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial period 2015-2016 (excluding accretion of discount) is Rs. 949,876,100 being 80.05% of the average daily net assets.




Amount (Rupees)


2017 2016

Debt Instruments 1,204,290,438 93.09 444,464,190 37.46


Total 1,204,290,438 93.09 543,258,490 45.78

79







Relation

Period Covered



Commission paid

[Rupees]


Fund



2016-2017 – – 2,035,442.46 89.11



Relation

Period Covered



Commission paid

[Rupees]


Fund



2015-2016 111.74 94.26 – –











Growth Option 113,940,623.092 – – 113,940,623.092 10

Dividend Option 602,259.015 – – 602,259.015 10


4,010,666.600 – – 4,010,666.600 10

80




Growth Option – 113,940,623.092 – 113,940,623.092 10

Dividend Option – 602,259.015 – 602,259.015 10


– 4,010,666.600 – 4,010,666.600 10















Notes to Accounts - Annexure I (Contd...)To the Abridged Balance Sheet and Revenue Account for the Period ended March 31, 2017

81



HSBC FIXED TERM SERIES 126 #

1 Investments:


1.2. Open Positions of derivatives as of period ended March 31, 2017 is NIL

1.3. Investments in Associates and Group Companies as of period ended March 31, 2017 is NIL.

1.4. Open positions of Securities Borrowed and / or Lent by the Scheme as of the period ended March 31, 2017 is NIL.

1.5. NPAs as at period ended March 31, 2017 is NIL.




2017


– Appreciation 2,817,169 0.84

– Depreciation 33,000 0.01



Security Category Amount (Rupees) Percentage to Net Assets

2017

Debt Instruments 304,413,275 91.17

Total 304,413,275 91.17





Relation

Period Covered



Commission paid

[Rupees]


Fund



2016-2017 30.64 97.40 464,888 88.86


82



(i) Any underwriting obligations undertaken by the schemes of the mutual funds with respect to issue of securities associate companies - Nil.

(ii) Devolvement - Nil.

(iii) Subscription by the schemes in the issues lead managed by associate companies - Nil.

(iv) Subscription to any issue of equity or debt on private placement basis where the sponsor or its associate companies have acted as arranger or manager - Nil.

3 None of the Investors held more than 25% of the total net assets of the Scheme at the period ended March 31, 2017.

4 Unit Capital movement during the period ended March 31, 2017:



Growth Option – 30,079,373.552 – 30,079,373.552 10

Dividend Option – 923,968.739 – 923,968.739 10


– 16,000.000 – 16,000.000 10

5 As these are the fi rst fi nancial statements of the schemes since the date of launch, there are no prior period comparatives.

6 No contingent liabilities for the period ended March 31, 2017.













# Scheme launched during the current fi nancial year


83




84







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