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 |
