HSBC Cash Fund is an open-ended liquid scheme offered by HSBC Mutual Fund. Since this is an open-ended scheme, investors can purchase units or redeem them on any business day at the Net Asset Value, subject to exit load.
Investment Objective of HSBC Cash Fund – Growth
The investment objective of HSBC Cash Fund – Growth is to generate reasonable returns that correspond with low risk and high liquidity via investment in a portfolio that comprises of money market and debt instruments.
Key Features of HSBC Cash Fund – Growth
Here are some of the key features of HSBC Cash Fund – Growth:
|Type of Fund||Open-ended liquid scheme|
|Plans Available||Growth and Dividend|
|Options Under Each Plan||
|Systematic Investment Plan||Available|
|Systematic Transfer Plan||Available|
|Systematic Withdrawal Plan||Available|
Investment Amount for HSBC Cash Fund – Growth
|Minimum Application Amount (for Growth option)||Rs.5,000 and in multiples of Re.1 thereafter|
|Minimum Additional Investment (for Growth option)||Rs.1,000 and in multiples of Re.1 thereafter|
|Minimum Instalment for Systematic Investment Plans||Rs.2 lakh for daily SIP, Rs.1,000 for monthly SIP, and Rs.3,000 for quarterly SIP. The minimum number of instalments for daily SIP is 20, 12 for monthly SIP, and four for a quarterly SIP.|
|Minimum Instalment for Systematic Withdrawal Plan||-|
Asset Allocation for HSBC Cash Fund – Growth
|Instruments||Allocations (Percentage of total assets)||Risk Profile|
|Debt securities with average maturity / residual maturity up to 91 days||0% to 50%||Low to Medium|
|Money market securities (including money at call and cash) with average maturity / residual maturity up to 91 days||0% to 10%||Low to Medium|
Who can Invest in HSBC Cash Fund – Growth?
Investment in HSBC Cash Fund – Growth can be made by the following entities:
- Adult Indian residents
- Legal guardians or parents on behalf of minors
- Hindu Undivided Families through their Kartas
- Charitable and religious trusts, and endowments or wakfs of private trusts provided they are authorised to make investments in mutual fund schemes
- Public Sector Undertakings, companies, Body of Individuals, corporate bodies, Association of Persons, and societies registered under the Societies Registration Act, 1860
- Partnership firms
- Financial institutions and banks (Regional Rural Banks and Co-operative Banks)
- Foreign Portfolio Investors and Foreign Institutional Investors registered with the Securities and Exchange Board of India
- Persons of Indian Origin and Non-resident Indians
- Industrial and scientific research organisations
- Army, navy, air force and other eligible institutions and para-military funds
- International Multilateral Agencies with the approval of the Reserve Bank of India or the Government of India
- The Asset Management Company, the trustees, the sponsor or their associates
- Gratuity or Pension or Provident and other such funds provided they have the permission to make investments in the scheme
- Other schemes of HSBC Mutual Fund provided they meet the terms and conditions of the regulations established by the Securities and Exchange Board of India
- Qualified Foreign Investors provided they meet the KYC requirements of the Financial Action Task Force and the Prevention of Money Laundering Act, 2002
NAV Disclosure and Benchmark for HSBC Cash Fund – Growth
The NAV of HSBC Cash Fund – Growth will be calculated on a daily basis and will be disclosed at the end of each business day. The Net Asset Value must be available at all Investor Service Centres of the Asset Management Company. The NAV will also be published in a minimum of two daily newspapers with circulation across the country. The NAV will also be updated on the website of the company as well as the website of the Association of Mutual Funds in India by 9:00 p.m. every working day.
The formula used for the computation of NAV is as follows:
Fair Value or Market Value of the Scheme’s investment + Current Assets – Current Liabilities and Provisions / Number of units outstanding under the scheme
The computation of the scheme’s NAV is calculated throughout the year and disclosed at the end of each business day.
Benchmark Index of HSBC Cash Fund – Growth: CRISIL Liquid Fund Index
HSBC Cash Fund – Growth Fund Manager
HSBC Cash Fund – Growth is managed by Mr. Kapil Punjabi who has around 13 years of experience when it comes to research and fixed income fund management. Mr. Punjabi has been managing HSBC Cash Fund – Growth for over four years now, and previously worked at companies such as Edelweiss Asset Management Limited, Taurus Asset Management Company Limited, and Trans Market Group Research (India) Private Limited.
Investment Restrictions of HSBC Cash Fund – Growth
The following are the major investment restrictions of HSBC Cash Fund – Growth:
- The mutual fund cannot advance any loans.
- The mutual fund cannot make investments in excess of 10% of its NAV in debt instruments consisting of non-money market and money market securities made available by an insurer if a credit rating agency rates the said securities as not below investment grade. The investment cap can increase to 12% of the scheme’s NAV if prior approval has been received from the asset management company’s Board of Directors and Board of Trustees.
- Investments can be transferred from one fund to another in the same mutual fund provided that such transfers are made at the current market price for quoted instruments on spot basis, or if the transferred securities comply with the investment objective of the fund to which the transfer is made.
- The scheme cannot invest in unlisted securities of group or associate companies of the sponsor.
- The scheme must conform with the regulations established for investing in mutual funds.
- The mutual fund cannot invest in excess of 20% of its net assets in a group (not including investments in instruments issued by public sector banks, public financial institutions, and public sector units).
Dividend Policy of HSBC Cash Fund – Growth
The declaration of dividends and the frequency of distribution will be determined by the Trustees. The frequency at which dividends can be declared include monthly, weekly and daily.
Other Facilities Offered by HSBC Cash Fund – Growth
The following is one of the key facilities offered by HSBC Cash Fund – Growth:
- Stock Exchange Purchase/Redemption Facility: Investors can use an alternative transaction platform to purchase or sell units of the scheme. This platform, BSE StAR MF (BSE Stock Exchange Platform for Allotment and Repurchase of Mutual Funds), allows investors to purchase or sell units via the stock brokers registered with the Bombay Stock Exchange and/or National Stock Exchange provided they adhere to the guidelines established by the Securities and Exchange Board of India.
Why you should invest in HSBC Cash Fund – Growth
Investment in HSBC Cash Fund – Growth is a good option for those who want overnight liquidity over the short term through investment in money market instruments.
Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.
GST rate of 18% applicable for all financial services effective July 1, 2017.