March 27, 2024
mayank
HSBC Low Duration Fund details, NAV, Portfolio, Returns, Peer Comparison, Fund Managers & Guidance by Chanakyamfguidance.com
NAV Growth: Rs 27.0365
Yearly NAV IDCW: Rs 11.3270
Monthly NAV IDCW: Rs 11.1204
Suitable For Which Investors?
“Low Duration debt funds invest in bonds maturing in six months to a year. They aim to earn slightly better returns than what you can get from a bank account or a short duration fixed deposit. The risk of incurring a loss in these funds is negligible but they do not guarantee returns or safety of capital.
Retail investors can avoid these funds altogether. Here’s why. Debt funds are very finely classified depending upon the maturity of the bonds they invest in. For instance, there’s a different category of funds that invests in bonds of up to three months maturity, from the one that invests in bonds maturing in three to six months, and so on. We believe that such a nuanced classification adds little value to retail investors. They can avoid this complexity and simply invest the money they don’t need for up to a year in a Liquid fund.”
Fund’s Investment Strategy:
The scheme seeks provide liquidity and reasonable returns by investing primarily in a mix of short term debt and money market instruments such that the Macaulay duration of the portfolio is between 6 months to 12 months.
Fund Manager:
1) Asif Rizwi
Education: Mr. Rizwi has done B.Tech and PGDM from IIM-C
Experience: Prior to joining HSBC MF, he has worked with L&T MF, Yes Bank, ICICI Bank, Nomura International plc and Deutsche Bank
2) Shriram Ramanathan
Education: Shriram is a B.E. (Electrical), PGDBM from XLRI Jamshedpur and CFA.
Experience: Prior to joining HSBC Mutual Fund, he has worked with L&T MF, FIL Fund Management Pvt. Ltd., ING Investment Management, Zurich Asset Management Co., ICICI Ltd., and L&T Ltd.
Investment Details
| Min. Investment (Rs) | 5,000 |
| Min. Addl Investment (Rs) | 1,000 |
| Min. SIP Investment (Rs) | 500 |
| Min. Withdrawal (Rs) | 500 |
| Min. No of Cheques | 12 |
| Min. Balance (Rs) | 500 |
| Lock-in Period | NA |
| Exit Load | 0 |
Basic Details
| Fund House | HSBC Mutual Fund |
| Launch Date | 01-Jan-13 |
| Return Since Launch | 7.40% |
| Benchmark | NIFTY Low Duration Debt Index A-I |
| Riskometer | Low to Moderate |
| Type | Open-ended |
| Assets | Rs 477 Cr |
| (As on 29-Feb-2024) | |
| Expense | 0.25% |
| (As on 29-Feb-2024) | |
| Risk Grade | Below Average |
| Return Grade | Average |
Trailing Returns (%) of HSBC Low Duration Fund
| Fund name | YTD | 1D | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| HSBC Low Duration Dir | 1.81 | 0.07 | 0.64 | 1.90 | 3.61 | 7.81 | 5.72 | 5.98 | 6.49 | 7.30 |
| CCIL T Bill Liquidity Weight | 1.05 | 0.01 | 0.39 | 1.13 | 2.29 | 4.70 | 3.23 | 3.28 | 3.53 | 4.01 |
| Debt: Low Duration | 1.80 | 0.06 | 0.61 | 1.88 | 3.58 | 7.58 | 5.88 | 6.05 | 6.47 | 7.13 |
| Rank within category | 9 | 2 | 5 | 6 | 7 | 3 | 9 | 13 | 12 | 7 |
| Number of funds in category | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 20 | 17 |
Peer Comparison of HSBC Low Duration Fund
| Rating | 1 Year Returns | 3 Year Returns | 5 Year Returns | Expense Ratio (%) | Net Assets (Rs Cr) | Return Since Launch (%) | Exit Load (Days) | Fund Age | |
| HSBC Low Duration Dir | 4 star | 7.81 | 5.72 | 5.98 | 0.25 | 477 | 7.40 | — | 11Y 2M |
| ABSL Low Duration Dir | 4 star | 7.79 | 6.05 | 6.86 | 0.39 | 12,058 | 7.98 | — | 11Y 2M |
| Nippon India Low Duration Dir | 4 star | 7.63 | 5.97 | 6.38 | 0.37 | 5,960 | 7.63 | — | 11Y 2M |
| Axis Treasury Advantage Dir | 4 star | 7.64 | 5.76 | 6.50 | 0.29 | 4,760 | 7.68 | — | 11Y 2M |
| UTI Low Duration Dir | 5 star | 7.43 | 7.32 | 4.71 | 0.36 | 3,151 | 6.85 | — | 11Y 2M |
Portfolio Breakup
| Fund | Category | |
| Number of Securities | 25 | 66 |
| Macaulay Duration (yrs) | 0.96 | 0.94 |
| Average Maturity (yrs) | 1.41 | 1.27 |
| Yield to Maturity (%) | 8.02 | 7.87 |
| Avg Credit Rating | AAA | — |
How to Invest in HSBC Low Duration Fund?
Chanakya’s Mutual Fund Guidance For HSBC Low Duration Fund
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