HSBC Emerging Markets Fund

Joining the bandwagon of AMCs that had recently launched mutual funds targeting investment in equities of foreign countries such as South East Asia, China etc, HSBC has launched a Mutual Fund called HSBC Emerging Markets Fund.

HSBC Emerging Markets Fund (HEMF) is an open-ended scheme seeking to provide long-term capital appreciation. The scheme will invest in units / securities issued by overseas mutual funds or unit trusts which will primarily be in equity and equity related instruments of emerging economies like Brazil, China, Russia, India, etc. The fund may also invest a limited proportion in domestic debt and money market instruments.

80 - 100% Units/securities issued by overseas mutual funds or unit High trusts of emerging markets. Currently HSBC GEM Equity Fund is envisaged to be used for investing in the emerging markets however; HEMF could use any other global fund of HSBC Group to invest in emerging markets.

0 - 20% Domestic Debt, Money Market instruments (including CBLO Medium & reverse repo) and units of domestic mutual funds.

Scheme Details
Issue Opens: January 28, 2008
Issue Closes: February 25, 2008
Type: Open-ended, equity scheme
Plan : Dividend Option,Dividend Reinvestment, Growth Option
Minimum Investment: Rs. 10,000. Additional amount in multiples of 1 thereafter
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.
Benchmark : BSE 200 & MSCI Emerging Markets Index
Liquidity : The Units of the Scheme shall be available for subscription at Applicable NAV based prices, subject to prevalent load provisions, if any on every business day not later than 30 days after the close of the New Fund Offer Period.