HSBC Asset Management (India) has launched HSBC Equity Hybrid Fund, an open ended hybrid scheme, for investors seeking long-term capital growth and income through investments in equity and equity-related securities and fixed income instruments. However, there is no assurance that the investment objective of the scheme will be achieved.
The NFO period of the fund is from September 28, 2018 to October 12, 2018 during which the offer price will be Rs 10 per unit. The scheme will be re-opened for continuous sale and repurchase on October 26, 2018 and will offer for purchase, switch-in and redemption and switch-out of units at NAV based prices on every business day on an ongoing basis. The redemption proceeds will be dispatched within 10 business days from the date of acceptance of the redemption request.
The minimum amount for lump sum investment will be Rs 5,000 per application and in multiples of Re 1 thereafter and for SIP it will be Rs 1,000 for monthly SIP and Rs 3,000 for quarterly. The minimum SIP installments will be 12 for monthly SIP and 4 for quarterly one.
There will be no entry load, but 1 per cent exit load will be charged if more than 10 per cent of the units are either redeemed or switched out within one year from the date of investment. The will be no exit load on redemption or switching out after one year.
The minimum amount for redemption or additional purchase will be Rs 1,000 per application and in multiples of Re 1 thereafter.
As the scheme is a equity-oriented hybrid fund, the asset allocation in equities and equity-related securities will range from 65 per cent to 80 per cent, while the allocation in debt instruments and money market instruments (including cash and cash equivalents) will be from 20 per cent to 35 per cent. Depending upon market conditions and opportunity, asset allocation up to 10 per cent may also be made in units issued by REITs and InvITs,
For benchmarking of performance of the scheme, there will be a customised index with 70 per cent weight to S&P BSE 200 and 30 per cent weight to CRISIL Composite Bond Fund Index.
As the asset allocation in equities has been restricted to maximum 80 per cent, the risk factor of the scheme will be moderately high with flexibility in switching assets from equity to debt and vice versa within the given limit.
As the minimum asset allocation in equity is 65 per cent, the investors in the scheme will enjoy the tax benefits of equity investments.