Review: HSBC Emerging Markets Fund NFO: Finance Trading Times

Review: HSBC Emerging Markets Fund NFO

The HSBC Emerging Markets Fund is currently open with it’s NFO or New Fund offer period. The purpose of this fund is to invest in the OVERSEAS emerging markets equity and mutual funds and generate capital appreciation. The concept of the fund is based upon the “Emerging Markets give better returns” – primarily targeted to 4 BRIC countries –namely Brazil, Russia, India and China. The fund, at its sole discretion, may also invest a part of money in domestic equities and money market financial instruments.

Claims of Benefits: HSBC claims that this kind of scheme gives overseas exposure to the domestic investors, who may not be able to invest overseas directly. However, the global picture looking highly bleak, who knows which markets perform in which way.

Here are the key features of this NFO from HSBC Emerging Markets Fund.

Type of Scheme :An open-ended scheme, meaning any number of units can be created and sold as and when required

Overseas Securities Exposure :Up to 100%

Benchmark Index :BSE 200 & MSCI Emerging Markets Index

Offer Period :28 Jan to 25 Feb 2008

Offer Price :Rs 10 per unit plus applicable load

Options :Dividend (Reinvestment/Payout) and Growth

Minimum Application Amount :Rs 10,000

Minimum Additional Investment :Rs 1,000 and in multiples of Re 1 thereafter

Liquidity :Daily redemption available at Repurchase NAV subject to entry/exit load, if any

SIP :Available during NFO and on an ongoing basis.
Entry Load** :2.5% for investments/switch in# below Rs 5 crores, otherwise Nil

Exit Load :1% for investments below Rs.5 crores, if redeemed/switched out# within 1 year from the date of investment, otherwise Nil

Cheques to be drawn in favour of : “HSBC Emerging Markets Fund” or “HEMF”

They have given a comparison graph with the existing funds of HSBC with that of the world standard Morgan Stanley Capital index (MSCI Index) of Emerging Markets. The graph is copied below.

However, no information is provided about how they have calculated the returns – whether it is before the fund administration and management charges and entry exit loads or after the charges.
No tax benefit is available with HSBC Emerging Markets Fund. Investors who firmly believe that HSBC fund management will be able to deliver better returns by managing and investing their money in the so called emerging markets can take a bet! Table of Contents
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3 Comments: Post your Comments

Curious said...(on 7 February 2008 at 22:29 )  

How do you get time to write all this down? Where do you currently work? As what?

Can you share with us your work experience? You mention your MBA from the Netherlands. How many years have you worked after that, and where?

Investment n Trading Advisor said...(on 8 February 2008 at 00:31 )  

Curious,

I have included sufficient info about myself on this blog.
Can you please quote a good reason for you trying to get so many details about my career and personal interests. :-)

Well Wisher said...(on 8 February 2008 at 20:57 )  

Curious,

What is your problem? It is very rude the way you asked.

Shhobit's blog is one of the best indian blog on investment.

If you have any facts to support your views better than Shhobit's then write a comment or even better - start your own blog.

Shhobit - thanks for your spot on analysis for HSBC fund.

Wish you all happy and fruitful trading and investing activities with safety! = = = Post a Comment

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