HSBC Equity Fund Outperforms The Sensex Over All The Time - Dec 12, 2008

Background: HSBC Asset Management (India) Private Limited set up in May 2002 as a trust by HSBC Securities and Capital Markets (India) Pvt. Ltd. The fund manages assets worth Rs 11015.04 crore as on November 2008. HSBC Equity Fund (G) an open-ended scheme launched in November 2002.

The objective of the scheme is to seek to generate long term capital growth from an actively managed portfolio of equity and equity related securities. The minimum investment amount is Rs 10000 and in multiples of Re 1 thereafter. The unit NAV of the scheme was Rs 58.48 as on 11 December 2008.The total net assets of the scheme decreased by Rs 3.49 crore to Rs 952.94 crore in November 2008.

HSBC Equity Fund (G) took fresh exposure in three stocks in November 2008. The scheme has purchased 16.02 lakh units (2.38%) of Cairn India, 8.32 lakh units (1.75%) of Cipla and 7.77 lakh units (1.70%) of Ranbaxy Laboratories in November 2008.

The scheme completely exited Axis Bank by selling 6.91 lakh units (4.07%), United Spirits by selling 1.34 lakh units (1.25%) and Zee Entertainment Enterprises by selling 7.68 lakh units (1.23%)among others in November 2008.Sector-wise, the scheme took no fresh exposure to any sector in November 2008.

Sector-Wise, the scheme exited completely from Breweries & Distilleries at 1.25%, Cement - North India at 1.14% and Construction at 1.15% among others in November 2008.The scheme had highest exposure to Bharti Airtel with 10.16 lakh units (7.15% of Portfolio), Infosys Technologies with 4.46 lakh units (5.81%), ITC with 31.41 lakh units (5.72%) and State Bank of India with 4.50 lakh units (5.14%) among others in November 2008.

It reduced its exposure to Reliance Industries by selling 2.59 lakh units to 3.15 lakh units (by 4.49%), Housing Development Finance Corporation by selling 23086 units to 2.43 lakh units (by 1.18%) and Infosys Technologies by selling 1186 units to 4.46 lakh units (by 0.65%) among others in November 2008.

Sector-wise, the scheme had highest exposure to Telecommunications - Service Provider at 10.27% (from 9.64% in October 2008), followed by Oil Drilling / Allied Services at 7.19% (3.36%), Computers - Software – Large at 6.96% (7.80%) and Refineries at 6.79% (10.39%) among others in November 2008.

Sector wise, the scheme had reduced exposure to Banks - Private Sector to 3.06% (by 3.76%), Refineries to 6.79% (by 3.60%) and Finance - Housing to 3.75% (by 1.18%) among others in November 2008.The scheme outperformed the category average over all the time periods. It has outperformed the Sensex over all the time periods.

Over three-month period ended as on 11 December 2008, the scheme posted negative returns of 28.92% returns outperforming the category average that posted negative returns of 32.46%. It outperformed the Sensex that has posted negative returns of 34.15% during the same period.Since inception, the scheme posted 463.94% of returns outperforming the category average of 71.73%.