Abridged 0910

Issued by HSBC Asset Management (India) Private Limited
INDEX
HSBC Equity Fund 3
HSBC Progressive Themes Fund 20
HSBC Emerging Markets Fund 37
HSBC Dynamic Fund 54
HSBC Tax Saver Equity Fund 75
HSBC India Opportunities Fund 92
HSBC Midcap Equity Fund 112
HSBC Unique Opportunities Fund 129
HSBC Small Cap Fund 149
HSBC MIP 169
HSBC Income Fund 196
HSBC Floating Rate Fund 225
HSBC Ultra Short Term Bond Fund 252
HSBC Cash Fund 273
HSBC Gilt Fund 294
HSBC Flexi Debt Fund 311
HSBC Fixed Term Series 332

HSBC Equity Fund
An open-ended diversified equity Scheme
Abridged Annual Report 2009 - 2010
Equity Fund.indd 1 24/07/2010 1:07:19 PM

Dear Investor,
We thank you for investing with HSBC Mutual Fund.
We are pleased to inform you that HSBC MIP – Savings Plan has been rated CPR1
by CRISIL, in the Open end MIP Aggressive Fund category, among 21 schemes, for its 2
year performance, ended March 31, 2010 (Monthly income is not assured and is subject
to availability of distributable surplus). We have also been rated the top performing fund
manager for a one year period, on the Employees’ Provident Fund Organisation (EPFO)
mandate, which is one of the largest provident funds in India, amongst the 4 fund
managers who have been provided with this mandate. (Past performance may or may not
be sustained in the future and is no guarantee of future results).
At the global level, HSBC Global Asset Management continues to be one of the leading
players in emerging markets with assets of USD 90 bn as at December 31, 2009.
The Group continues to be committed to our asset management business in India which is
a core market for the Group.
HSBC Asset Management (India) Private Limited through its mutual fund business as well
as Portfolio Management Services (PMS) business (including EPFO money deployed till
date) manages assets of about Rs. 40,161 Crores as at June 30, 2010.
HSBC Asset Management (India) also offers Portfolio Management Services (PMS)
which aims to provide long-term wealth creation for high net-worth individuals through
active portfolio management and manages mandates for large institutional clients.
The core to our winning strategy is our endeavour to deliver consistent performance over
the medium to long term for our investors in a risk controlled environment and aim for
consistent wealth creation under varying market conditions.
We remain committed to our philosophy of aiming for consistent wealth creation and
service excellence and look forward to your continued investments in HSBC Mutual Fund.
Yours sincerely,
Vikramaaditya
Chief Executive Officer
HSBC Asset Management (India) Private Limited
* Please refer Ranking methodology and disclaimers mentioned at the end of the Abridged
Annual Report for the year ended March 31, 2010.

SPONSOR
HSBC Securities and Capital Markets (India) Private Limited
Regd. Office: 52/60, Mahatma Gandhi Road, Fort, Mumbai 400 001.
TRUSTEE
Board of Trustees
Office: 314, D. N. Road, Fort, Mumbai 400 001.
ASSET MANAGEMENT COMPANY

Corp. & Regd. Office: 314, D. N. Road, Fort, Mumbai 400 001.
CUSTODIAN
JP Morgan Chase Bank N.A.
Corp. & Regd. Office: J.P. Morgan Tower, C.T.S. No. 5435, Off CST Road,
Kalina, Santacruz (East), Mumbai 400 098.
AUDITORS TO THE SCHEME

Price Waterhouse
Chartered Accountants
252, Veer Savarkar Marg, Shivaji Park, Dadar (West), Mumbai – 400 028.
LEGAL ADVISORS
Bharucha & Partners
Hague Building, Sprott Road, Ballard Estate, Mumbai – 400 001
REGISTRAR & TRANSFER AGENTS

Computer Age Management Services (P) Ltd. (CAMS)
Rayala Towers, Tower I, III Floor, 158 Anna Salai, Chennai – 600 002.
BOARD OF TRUSTEES
Mr. N. P. Gidwani – Chairman
Dr. Rudolf Apenbrink
Mr. Nasser Munjee
Mr. Manu Tandon
Mr. Mehli Mistri
Mr. Dilip J. Thakkar
BOARD OF DIRECTORS
Ms. Naina Lal Kidwai – Chairman
Mr. Ayaz Ebrahim
Mr. S. P. Mustafa
Mr. Ashok Jha*
Ms. Kishori J. Udeshi
Mr. Vikramaaditya – Chief Executive Officer
* Mr. Ashok Jha has been appointed as a Director with effect from August 20, 2009 and
Mr. Vithal Palekar has resigned as a Director with effect from August 10, 2009.

Trustees’ Report
For the year ended March 31, 2010
The Trustees present the eighth report and the audited abridged financial statements of the Scheme(s) of
HSBC Mutual Fund (the “Fund”), for the year ended March 31, 2010.
1. SCHEME PERFORMANCE, FUTURE OUTLOOK AND OPERATIONS OF THE SCHEME

a) Operations and Performance of the Scheme
HSBC Equity Fund (HEF) – an open-ended diversified Equity Scheme
To generate long-term capital growth from an actively managed portfolio of equity and equity related
securities. HEF offers investors two Options (1) Growth Option (2) Dividend Option. The Dividend Option
offers Dividend Payout and Dividend Reinvestment Facilities.
The net assets of HEF amounted to Rs. 1382.78 crores as at March 31, 2010 as against Rs.1092.07 crores
as at March 31, 2009. Around 98.30% of the net assets were invested in equities, 2.45% of the net assets
were invested in reverse repos / CBLO and (0.75)% were invested in net current assets as at March 31,
2010.
HEF’s approach is to invest across a range of market capitalizations with a preference for medium and large
companies. Income is not a primary consideration in the investment policies of HEF.
HEF underperformed over the past 1 year on a defensive portfolio and relatively higher level of cash in a
market that rose significantly. Longer term performance has been in line with benchmarks.
Date of Inception: 10 December, 2002 Compounded Annualized Returns (%)

Scheme & Benchmark 1 Year 3 Years 5 Years Since Inception
HSBC Equity Fund – Growth 58.42 11.97 21.37 36.13
BSE 200 92.87 12.19 20.44 26.92
Returns data as on March 31, 2010.
Past performance may or may not be sustained in future. ‘Since inception’ returns are calculated on Rs. 10
invested at inception. Calculations are based on Growth NAVs.
b) Market Overview & Outlook

MARKET OVERVIEW
(as furnished by HSBC Asset Management (India) Private Limited)
Equity Market Overview
The financial year ended 31st March, 2010 turned out to be equally eventful as last year. The main
difference between the two being that last year marked lot of negative events for the equity markets
globally while FY10 was a very positive one with positive events both at global and domestic level for
India. Globally, we saw the fiscal / monetary stimuli by various governments to take the credit crisis head
on continue thereby leading to economic improvement in most parts of the world. And domestically,
we saw the United Progressive Alliance (UPA) sweeping victory in the central elections thereby ensuring
stability, policy continuity, and a great degree of space to implement reforms. With the fragmented nature
of the opposition leaving it too weak to deter the reform process, everyone expected to see a boost to
investment growth and policy initiatives thereby leading to an upward bias to growth. The second budget
from the present government continues to underpin on its key focus areas of infrastructure and social
sector spending.
For the financial year 2009-2010, BSE SENSEX was up by 80.5%. The BSE Midcap was up by 130.2% and
the broader indices like BSE 200, 96.3% and BSE 500, 99.8% also reflected the sharp up move across the
markets.
Economic data points coming out globally remained positive thereby indicating the sustainability of the
global recovery process. This led to improving risk appetite globally and investors buying most of the riskier
asset classes hence lot of money flowed into the emerging markets and India benefited as it was one of
the few economies which grew very well even in the downturn thereby indicating the broad strength of
the country. The second half of last year saw improvement in most of the economic indicators leading to
good performance by equity markets globally. But over the last couple of months, we are seeing investor
focus globally shift to monetary and fiscal tightening by the Central Bank’s and Government’s around the

Trustees’ Report
For the year ended March 31, 2010 (Contd...)
world. And hence there is a fear that this might de-rail the recovery process what we are witnessing over
the last few months thereby leading to correction in most of the asset classes like commodities, equities
around the world.
In another important event, we saw S&P revise its outlook on India’s long-term sovereign credit rating to
stable from negative. It affirmed its ‘BBB-’ long-term and ‘A-3’ short-term sovereign credit ratings on India.
The outlook upgrade driven by consolidation in fiscal deficit and strong growth.
Debt Market Overview
Bond yields rose for most of the financial year 2009-2010 as market was hit by a huge borrowing calendar
of the government. This was a consequence of the fiscal expansion that was undertaken since 2008 to
enhance public expenditure in the face of the global crisis that had hit the economy. Supply fatigue soon set
into the market, leading to a gradual rise in bond yields over the year. Domestic economic data started to
improve towards late calendar year thus further curbing appetite for bonds. 10 year benchmark sovereign
yield rose approximately 80 bps over the fiscal.
System liquidity remained abundant for most of the year on the back of aggressive cuts in Cash Reserve
Ratio (CRR) undertaken by the RBI between October 2008 – January 2009. Liquidity was also aided by
the open market purchases of government bonds by the RBI done between December 2008 – September
2009. Consequently, system liquidity as measured by excess balances parked by banks under the RBI
liquidity adjustment facility (LAF) window averaged approximately INR 100,000 crores during the fiscal.
Consequently, short end rates rallied by 150 – 200 bps over the fiscal. Sentiment on short end rates was
further aided by the RBI’s stated intention of a ‘calibrated’ exit from the monetary policy accommodation
put in place late 2008. It hiked CRR by 75 bps in the policy review in January 2010 and repo, reverse repo
rates by 25 bps each in March 2010.
MARKET OUTLOOK
Equity Market Outlook
Financial Year (FY) 2009-10 was a year marked by most of the governments and Central banks around
their world doing their best to enable the economies to come out of the sub-prime crisis that had led
to credit market freezing and recessionary conditions in developed nations and slowdown in emerging
economies. And these efforts led to slow and gradual improvement in the economic recovery process with
growth in emerging economies picking up sharply even though the developed economies continued to
improve slowly. But over the last few months, we saw the Greek crisis become bigger which eventually
culminated in a ~1 trillion Euros headline package by the European Union and International Monetary Fund
to support fiscally strained Euro Area member countries, all of which comes with severe austerity measures,
has once again brought to the fore issues regarding deficits and debt sustainability. This led to enormous
uncertainty and nervousness in all the asset markets globally thereby leading to contraction in the investors
risk appetite. So now apart from concerns on China’s overheated property market focus shifted to the Euro
region uncertainty. So overall the next year is going to be very crucial with respect to the direction of the
economic environment amidst all this uncertainty.
In spite of the uncertainty in other parts of the globe, India continued to do very well with the GDP for
FY10 growing at 7.4%. Agriculture posted below trend growth rate of 0.2% due to bad monsoons and
industry grew 9.3% with services growing by 8.5%. IIP grew by a strong 10.4% versus 2.7% growth
in FY09. India remains a supply-constrained and capital-starved economy with significant latent unmet
demand. GDP growth is likely to accelerate to 8.0% and 8.5% in FY11 and FY12, respectively. Robust
domestic demand, driven by private consumption and investment, may be complemented by improving
external demand. The key to track will be the strength of the upturn in the investment cycle. Even though
there are concerns on monetary tightening, we feel RBI may not derail the growth upturn and adopt a more
gradual tightening process keeping in view the recovery is still fragile. We believe the RBI managed the
economic downturn exceptionally well, and is doing the right things to position growth at an elevated level
without either fuelling a sustained rise in inflation or pushing the banks to lend more aggressively. Fiscal
consolidation will be credible as the government has little choice but to begin the much-needed process
of fiscal consolidation. Overall, the broad themes that are driving domestic growth viz. capital expenditure,
infrastructure building and domestic consumption are still intact. The key concerns at this point stem
from the uncertainty in the developed economies and any fallout of the same on India and the domestic
inflations which seems to be very high.
The next financial year 2010-2011 is likely to be one where specific sectors and company performances
may be much better than broader market indices. The challenge will be to pick these stocks and sectors

Trustees’ Report
ahead of the market. Given that markets valuations have come off the trough seen in early March 2009
with the markets now trading at valuations of around 15-16X FY2011 earnings, in the near term we expect
markets to enter a phase of consolidation.
Debt Market Outlook
The interest rate view for the year ahead is set against the following backdrop:
l Domestic non agricultural growth has rebounded sharply led by manufacturing over last 2 quarters.
While this has been helped by the fiscal and monetary stimulus in place since early last year, the last
few months are showing definitive signs of pick up in private sector momentum as well.
l Inflation has surged largely on the back of rise in food prices. However, with a manufacturing rebound
underway demand side pressures are rapidly building. Recent fall in commodity prices, if sustained,
along with expectation of normal monsoons domestically may be incrementally beneficial for supply
side inflation.
l Even after 2 rate hikes of 25 bps each in March and April 2010, current real policy rates of the Reserve
Bank of India (RBI) are significantly negative. However, the central bank is showing a decided bias
towards ‘calibrated’ rate hikes.
l The recent European crisis has led to weakness in asset markets and a drop in commodity prices
globally. Even though domestic rebound remains strong, international linkages from trade, finance,
and portfolio flows have made policy makers more watchful in the near term.
l Gross market borrowing for FY 2010-11 is pegged at INR 4,57,000 crores versus INR 4,51,000 crores
in 2009-10. A few demand-supply dynamics for government securities are as follows:
l Demand for government bonds may not be as strong in the year ahead given rising inflation, lower
liquidity, expectations of policy rate rise and relatively better credit growth. However, demand may
improve if the European situation were to cause a significant change in market’s growth versus
inflation expectations.
l Absence of RBI OMO and MSS de-sequestering imply that net supply of government securities to
the market will be higher than last year by almost INR 1,00,000 crores.
l 3G + BWA auctions may result in more than 3 times budgeted proceeds for GoI. While prospects
of additional expenditures (particularly on subsidy) remain, there are tentative expectations of some
reduction in second half borrowing.
Overall, while sufficient risks remain to bond yields, some factors as discussed above have turned bond
positive. These, if sustained, could ensure against a very sharp rise in yields thus providing opportunities
for select duration plays. Moreover, if market were to get more comfort that the government’s fiscal deficit
would progressively reduce in the year ahead, some of the so-called ‘supply premium’ that has been built
on the curve since last year may begin to unwind thus leading to softening of yields later in the year. Also,
given that system liquidity is expected to progressively reduce going into the October – December 2009
quarter, we expect the curve to start to flatten thereon.
2. BRIEF BACKGROUND OF SPONSORS, BOARD OF TRUSTEES AND ASSET

MANAGEMENT COMPANY
a) Sponsor
HSBC Mutual Fund is sponsored by HSBC Securities and Capital Markets (India) Private Limited (HSCI). The
Sponsor is the Settlor of the Mutual Fund Trust. The Sponsor has entrusted a sum of Rs. 1,00,000 (Rupees
One Lakh only) to the Trustee as the initial contribution towards the corpus of the Mutual Fund.
HSCI is a member of the HSBC Group, one of the largest banking and financial services organisations,
in the world. Headquartered in London, HSBC operates through long-established businesses in five
regions: Europe, Asia-Pacific region, Middle East, America and Africa. Through its global network of
some 10,000 offices in 83 countries and territories, HSBC provides a comprehensive range of financial
services to personal, commercial, corporate, institutional and investment and private banking clients.
HSCI offers integrated investment banking services, securities and corporate finance & advisory. HSCI is
a member of The Bombay Stock Exchange Limited and National Stock Exchange (capital and derivative
market segments) and is also a category I merchant banker registered with Securities and Exchange
Board of India.
HSCI holds 100% of the paid-up equity share capital of the AMC.

Trustees’ Report
b) HSBC Mutual Fund

HSBC Mutual Fund (“the Mutual Fund” or “the Fund”) has been constituted as a Trust in accordance
with the provisions of the Indian Trusts Act, 1882 (2 of 1882) vide a Trust Deed dated February 7,
2002 with HSBC Securities and Capital Markets (India) Private Limited, as the Sponsor and the Board
of Individual Trustees. The Trustee has entered into an Investment Management Agreement dated
February 7, 2002 with HSBC Asset Management (India) Private Limited (the AMC) to function as
the Investment Manager for all the Schemes of the Fund. The Fund was registered with SEBI vide
registration number MF/046/02/5 dated May 27, 2002.
The Trust has been formed for the purpose of pooling of capital from the public for collective investment
in securities / any other property for the purpose of providing facilities for participation by persons as
beneficiaries in such properties / investments and in the profits / income arising therefrom.
c) Board of Trustees (the Trustees)

The Board of Trustees is the exclusive owner of the Trust Fund and holds the same in trust for the
benefit of the unitholders. The Trustees have been discharging their duties and carrying out the
responsibilities as provided in the SEBI (Mutual Funds) Regulations, 1996 and the Trust Deed. The
Trustees seek to ensure that the Fund and the Schemes floated thereunder are managed by the AMC
in accordance with the Trust Deed, the said Regulations, directions and guidelines issued by the SEBI,
the Stock Exchanges, the Association of Mutual Funds in India and other regulatory agencies.
d) Asset Management Company (the AMC)
HSBC Asset Management (India) Private Limited (the Investment Manager or the AMC) is a private
limited company incorporated under the Companies Act, 1956 on December 12, 2001 having its
Registered Office at 314, D. N. Road, Fort, Mumbai 400 001. HSBC Asset Management (India) Private
Limited has been appointed as the Asset Management Company of the HSBC Mutual Fund by the
Trustee vide Investment Management Agreement (IMA) dated February 7, 2002 and executed between
the Trustees and the AMC. SEBI approved the AMC to act as the Investment Manager of the Fund vide.
its letter No. MFD/BC/163/2002 dated May 27, 2002.
The paid-up equity share capital of the AMC is Rs. 9 crores. HSBC Securities and Capital Markets (India)
Private Limited holds 100% of the paid up equity share capital of the AMC.
3. INVESTMENT OBJECTIVE OF THE SCHEME

The investment objective of the Scheme has been provided above under the heading “Scheme Performance,
Future Outlook and Operation of the Scheme” (refer Section 1).
4. SIGNIFICANT ACCOUNTING POLICIES

The accounting policies are in accordance with Securities and Exchange Board of India (Mutual Funds)
Regulations, 1996.
5. UNCLAIMED DIVIDENDS & REDEMPTIONS

Summary of number of Investors & corresponding amount as on 31 March 2010
Unclaimed Dividends Unclaimed Redemptions
Scheme Amount No. of Amount No. of
(Rs.) Investors (Rs.) Investors
HSBC Equity Fund 2,779,078 617 1,696,434 50
6. INVESTOR SERVICES
During the year, the number of official points of acceptance of transactions increased significantly to
about 206 locations. In addition to the offices of the Registrar & Transfer agents, the Asset Management
Company has Investor Service Centres in 14 locations at its own offices - namely Mumbai, New Delhi,
Kolkata, Chennai, Bangalore, Hyderabad, Pune, Ahmedabad, Indore, Chandigarh, Kochi, Coimbatore,
Lucknow and Vadodara. With a view to enhancing customer convenience, the Asset Management
Company has extended the facility of crediting investor bank accounts directly by way of NEFT / RTGS (for
credit of redemption and dividend proceeds). Dividend payouts are normally done within 5 working days

Trustees’ Report
from the record date in all schemes. The internal standards on redemption payouts have been consistently
met, with very few exceptions. The number of locations for the ECS Auto Debit facility for investments
through Systematic Investment Plan also increased to about 87 by March 2010.
On the distribution front, the number of empanelled distributors increased from 8632 as on 31 March,
2009 to 8859 as of 31 March, 2010. During the year, the Asset Management Company initiated tie-ups
for online distribution of the Mutual Fund’s schemes with several channel partners taking the total number
of such tie-ups to 32 (Angel Capital & Dept Market Ltd, Bajaj Capital Ltd, Bonanza Portfolio Ltd., CITIBANK
NA, Citigroup Wealth Advisors India Private Limited, DawnayDay AV India Advisors Pvt.Ltd., HDFC Bank
Ltd., Hongkong & Shanghai Banking Corporation Ltd., HSBC Corporate Investment Solution Services,
ICICI Securities Limited, iFAST Financial India Pvt.Ltd., INDIA INFOLINE LTD., IndusInd Bank Limited, ING
Vysya Bank Ltd., Karvy Stock Broking Ltd., Kotak Mahindra Bank Limited, Kotak Securities Limited, Motilal
Oswal Securities Limited, NJ India Invest Pvt. Ltd., Reliance Securities Limited, Religare Securities Limited, RR
Investors Capital Services Pvt. Ltd., SBICAP Securities Ltd., Sharekhan Limited, Shriram Insight Share Brokers
Ltd., SMC Global Securities Limited, Standard Chartered - STCI Capital Markets Ltd., Standard Chartered
Bank, Tom Distribution Services Ltd., Yes Bank Limited, IDBI Capital Market Services Ltd., JRG Securities
Limited).
Call centre operations have been extended to cover the entire country. The Asset Management Company
has outsourced certain back office services including call Centre Services to HSBC Operations and Processing
Enterprise (India) Private Limited (HOPE).
7. DETAILS OF INVESTOR GRIEVANCE REDRESSAL

The details of the redressal of investor complaints received against HSBC Mutual Fund during 2009-2010
are as follows:
Total Number of Folios: 5,22,334
Comp- Type of (a) No. of (b) No. of Action on (a) and (b)
laint comp complaints complaints
Code laint # pending received Resolved Non Pending
at the during the Actio-
Within 30-60 60-180 Beyond nable* 0-3 3-6 6-9 9-12
beginning year 30 days days 180 months months months months
of the year days days
IA Dividend on 1 61 62 0 0 0 0 0 0 0 0
Units
IB Interest on 0 0 0 0 0 0 0 0 0 0 0
delayed
payment of
Dividend
IC Redemption 2 57 59 0 0 0 0 0 0 0 0
Proceeds
ID Interest on 0 0 0 0 0 0 0 0 0 0 0
delayed
payment of
Redemption
II A Non receipt of 0 101 101 0 0 0 0 0 0 0 0
statement of
account/ Unit
Certificate
II B Discrepancy in 0 0 0 0 0 0 0 0 0 0 0
Statement of
Account
II C Non receipt of 0 0 0 0 0 0 0 0 0 0 0
Annual Report/
Abridged
Summary
III A Wrong Switch 0 0 0 0 0 0 0 0 0 0 0
between
schemes
7

Trustees’ Report
III B Unauthorised 0 0 0 0 0 0 0 0 0 0 0
switch between
schemes
III C Deviation 0 3 3 0 0 0 0 0 0 0 0
from Scheme
attributes
III D Wrong or excess 0 1 1 0 0 0 0 0 0 0 0
charges/load
III E Non updation 0 2 2 0 0 0 0 0 0 0 0
of changes viz.
address, PAN,
bank details,
nomination etc.
IV Others** 10 1621 1631 0 0 0 0 0 0 0 0
TOTAL 13 1846 1859 0 0 0 0 0 0 0 0
Note:
# including against its authorised persons/distributors/employees, etc.
* Non actionable means the complaint which is pending/outside the scope of the mutual fund
**includes correction in investor details
8. STATUTORY DETAILS
a) The Sponsors are not responsible or liable for any loss resulting from the operation of the Schemes of
the Fund beyond initial contribution of Rs. 1 lakh for setting up the Fund.
b) The price and redemption value of the units, and income from them, can go up as well as down with
fluctuations in the market value of its underlying investments.
c) Full Annual Report shall be disclosed on the website at www.assetmanagement.hsbc.com/in and shall
be available for inspection at the Head Office of the mutual fund. Present and prospective unit holder
can obtain copy of the trust deed, the full Annual Report of the Scheme(s), the Annual Report of HSBC
Asset Management (India) Private Limited and the text of the relevant Scheme(s) at a price.
9. ACKNOWLEDGEMENTS
The Trustees wish to thank the Unit holders of the Schemes for their support throughout the year and also
thank the Government of India, the Securities and Exchange Board of India (SEBI), the Reserve Bank of India
(RBI) and the Association of Mutual Funds in India (AMFI) for the guidance provided by them. The Trustees
also appreciate the service provided by the Registrar and Transfer Agent, Fund Accountant, Custodian,
Bankers, Distributors and Brokers. The guidance and services provided by the Auditors and advocates
and the ebullience, sincerity and dedication of the employees of HSBC Asset Management (India) Private
Limited is also appreciated.
The Trustees look forward to the continued support of everyone.
For and on behalf of the Board of Trustees of HSBC Mutual Fund
Sd/-
N. P. Gidwani
Chairman
MUMBAI
July 20, 2010

Auditors’ Report
To the Board of Trustees of

HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Equity Fund (“The Scheme”) as at
March 31, 2010, the related Revenue Account for the year ended on that date and the Cash Flow
Statement for the year ended on that date which we have signed under reference to this report.
These financial statements are the responsibility of the Board of Trustees of HSBC Mutual Fund and
the Management of HSBC Asset Management (India) Private Limited (the “Management”). Our
responsibility is to express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards generally accepted in India. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned and unit capital balances as at March 31, 2010 by correspondence
with the custodian / others and registrar and transfer agent respectively. An audit also includes
assessing the accounting principles used and significant estimates made by the Management as well as
evaluating the overall financial statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. We have obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purpose of our audit. The Balance Sheet, Revenue Account and Cash Flow
Statement referred to above are in agreement with the books of account of the Scheme.
4. In our opinion and to the best of our information and according to the explanations given to us,
i. The Balance Sheet, Revenue Account and Cash Flow Statement together with the notes thereon
give the information required by the Securities and Exchange Board of India (Mutual Funds)
Regulations, 1996 and amendments thereto, as applicable, and also give respectively, a true and
fair view of the state of affairs of HSBC Mutual Fund – HSBC Equity Fund as at March 31, 2010, its
net surplus and its cash flows for the year ended on that date.
ii. The Balance Sheet as at March 31, 2010 and the Revenue Account for the year ended on that date,
together with the notes thereon have been prepared in all material respects in accordance with the
accounting policies and standards specified in the Ninth Schedule of the Securities and Exchange
Board of India (Mutual Funds) Regulations, 1996 and amendments thereto as applicable.
For PRICE WATERHOUSE

Firm Registration Number: 301112E
Sd/-
Vivek Prasad
Partner
Membership No. F-104941
Place : Mumbai
Date : July 20, 2010

Abridged Balance Sheet as at March 31, 2010
Rs. in Lakhs
HSBC EQUITY FUND
As at As at
March 31, 2010 March 31, 2009
LIABILITIES
1 Unit Capital 33,754.33 39,846.26
2 Reserves & Surplus
2.1 Unit Premium Reserves (4,983.57) 2,119.08
2.2 Unrealised Appreciation Reserve 33,567.40 22.03
2.3 Other Reserves 75,939.39 67,221.65
3 Loans & Borrowings – –
4 Current Liabilities & Provisions
4.1 Provision for doubtful Income / Deposits – –
4.2 Other Current Liabilities & Provisions 2,810.45 1,337.52
TOTAL 141,088.00 110,546.55
ASSETS
1 Investments
1.1. Listed Securities:
1.1.1 Equity Shares 131,631.74 85,046.83
1.1.2 Preference Shares – –
1.1.3 Equity Linked Debentures – –
1.1.4 Other Debentures & Bonds – –
1.1.5 Securitised Debt securities – –
1.2 Securities Awaited Listing:
1.2.1 Equity Shares – –
1.3 Unlisted Securities
1.4 Government Securities – –
1.5 Treasury Bills – –
1.6 Commercial Paper – –
1.7 Certificate of Deposits – –
1.8 Bill Rediscounting – –
1.9 Units of Domestic Mutual Fund – –
1.10 Foreign Securities – –
Total Investments 131,631.74 85,046.83
2 Deposits 4,506.03 6,256.03
3 Other Current Assets
3.1 Cash & Bank Balance 55.26 214.24
3.2 CBLO / Reverse Repo Lending 3,384.73 16,548.57
3.3 Others 1,510.24 2,480.88
4 Deferred Revenue Expenditure – –
(to the extent not written off)
TOTAL 141,088.00 110,546.55
Notes to Accounts – Annexure I
10

Abridged Revenue Account for the year ended March 31, 2010
Rs. in Lakhs
HSBC EQUITY FUND
Current Previous
Year ended Year ended
March 31, 2010 March 31, 2009
1 INCOME
1.1 Dividend 1,581.76 1,130.00
1.2 Interest 470.71 1,426.94
1.3 Realised Gain / (Loss) on Foreign Exchange Transactions (10.65) –
1.4 Realised Gains / (Losses) on Interscheme sale of investments – –
1.5 Realised Gains / (Losses) on External sale / redemption of 25,786.64 (28,846.88)
investments
1.6 Realised Gains / (Losses) on Derivative Transactions 56.53 1,828.55
1.7 Other Income 29.70 –
(A) 27,914.69 (24,461.39)
2 EXPENSES
2.1 Management fees 1,509.09 697.59
2.2 Service tax on Management fees** – –
2.3 Transfer agents fees and expenses 244.62 215.56
2.4 Custodian fees 62.63 58.33
2.5 Trusteeship fees 1.35 0.45
2.6 Commission to Agents * – –
2.7 Marketing & Distribution expenses 828.04 1,205.76
2.8 Audit fees 7.00 5.50
2.9 Other operating expenses 248.60 20.45
(B) 2,901.33 2,203.64
3 NET REALISED GAINS / (LOSSES)
FOR THE YEAR (A - B = C) 25,013.36 (26,665.03)
4 Change in Unrealised Depreciation in
value of investments (D) (4,894.10) 16,683.17
5 NET GAINS / (LOSSES)
FOR THE YEAR [E = (C - D)] 29,907.46 (43,348.20)
6 Change in unrealised appreciation in
the value of investments (F) 33,545.37 –
7 NET SURPLUS / (DEFICIT)
FOR THE YEAR (E + F = G) 63,452.83 (43,348.20)
7.1 Add: Balance transfer from
Unrealised Appreciation Reserve – –
7.2 Less: Balance transfer to
Unrealised Appreciation Reserve 33,545.37 –
7.3 Add / (Less): Equalisation (13,771.15) 31,164.97
8 TOTAL 16,136.31 (12,183.23)
9 Dividend appropriation
9.1 Income Distributed during the year 7,418.57 0.25
9.2 Tax on income distributed during the year – –
10 Retained Surplus / (Deficit)
carried forward to Balance Sheet 8,717.74 (12,183.48)
* Commission to Agents is included in Marketing & Distribution Expenses.
** Service Tax on Management Fees is included in Other Operating Expenses.
11

Key Statistics for the year ended March 31, 2010
HSBC EQUITY FUND

Current Previous
March 31, 2010 March 31, 2009
1. NAV per unit (Rs.):
Open
Regular Growth Option 60.1737 88.3814
Regular Dividend Option 18.8099 27.6286
High
Low
End
2. Closing Assets Under Management (Rs. in Lakhs)
End 138,278 109,209
Average (AAuM)1 148,727 108,793
3. Gross income as % of AAuM2 18.77% -22.48%
4. Expense Ratio:
a. Total Expense as % of AAuM (planwise)
Regular Growth Option 1.95% 2.03%
Regular Dividend Option 1.95% 2.03%
b. Management Fee as % of AAuM (planwise)
5. Net Income as a percentage of AAuM3 16.82% -24.51%
6. Portfolio turnover ratio4 1.28 1.10
7. Total Dividend per unit distributed
during the year (planwise)
Retail
Regular Dividend Option 2.50 –
Corporate
Regular Dividend Option 2.50 –
8. Returns (%):
a. Last One Year
Scheme
Regular Growth Option 58.4247 (31.9159)
Regular Dividend Option 58.4242 (31.9190)
Benchmark
BSE 200 92.8700 (40.9800)
b. Since Inception
Scheme
Benchmark
BSE 200 26.9200 18.7800
1
AAuM = Average daily net assets
2
Gross income = amount against (A) in the Revenue Account i.e. Income.
3
Net income = amount against (C) in the Revenue Account i.e. Net Realised Gains / (Losses) for the year.
4
Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year.
12

To the Abridged Balance Sheet and Revenue Account for the year ended March 31, 2010
HSBC EQUITY FUND

1 Investments:
1.1. It is confirmed that investments of the Schemes are registered in the name of the Trustees for the
benefit of the Scheme’s unitholders.
1.2. Open Positions of derivatives amount to Rs. 417,045,564 and is 3.02% to Net Assets as of year
ended March 31, 2010. Open Positions of derivatives amount to Rs. (123,697,400) and is 1.13%
to Net Assets as of year ended March 31, 2009.
1.3. Investments in Associates and Group Companies:
Issuer Instrument Amount Aggregate Amount Aggregate

Type (Rs.) Investments (Rs.) Investments
by all schemes by all
schemes
2010 2009
The Hongkong & Fixed deposits 430,000,000 1,018,000,000 – 43,000,000
Shanghai Banking
Corporation Limited
1.4. Open positions of Securities Borrowed and / or Lent by the Scheme as of the years ended March
31, 2010 and March 31, 2009 is NIL.
1.5. NPAs as at years ended March 31, 2010 and March 31, 2009 are NIL.
1.6. Aggregate Unrealised Gain / Loss as at the end of the Financial year 2009-2010 and percentage to
net assets are as under:
Company Name Amount Percentage to Amount Percentage to

(Rs.) Net Assets (Rs.) Net Assets
2010 2009
Equity Shares
– Appreciation 3,511,447,614 25.3942% 419,474,916 3.8410%
– Depreciation 154,707,444 1.1188% 921,216,805 8.4354%
Equity Futures
– Appreciation 4,260,464 0.0308% 2,218,589 0.0203%
– Depreciation 16,591,918 0.1200% 15,363 0.0001%
1.7. The aggregate value of investments securities purchased (excluding accretion of discount
of Rs. 710,496) and sold during the financial year 2009-2010 is Rs. 12,919,307,271 and
Rs. 14,698,914,601 respectively being 86.87% and 98.83% of the average daily net assets.
The aggregate value of investments securities purchased (excluding accretion of discount of
Rs. 14,024,158) and sold during the financial year 2008-2009 is Rs. 20,051,454,038 and
1.8. Non-Traded securities in the portfolio as on March 31, 2010 and March 31, 2009 is Nil.
2 Disclosure Under Regulation 25(8) of the Securities and Exchange Board of India (Mutual Funds)
Regulations, 1996 as amended.
During the year 2009-10, The Hongkong & Shanghai Banking Corporation Limited, an associate entity
of HSBC Asset Management (India) Private Limited was paid collection / bank charges amounting to
Rs. 118,354 and clearing member charges on derivative transactions amounting to Rs. 1,745,886.
Rs. 39,751 and clearing member charges on derivative transactions Rs. 2,429,235.
13

Notes to Accounts – Annexure I (Contd...)
Commission paid to Sponsor / AMC and its associates / related parties / group companies
Name of Sponsor / Nature of Period Business % of Total Commission % of Total

AMC and its Association / Covered Given Business paid commission
associates / related Nature of [Rs. in Crores] received by [Rs.] paid by the
parties / group Relation the Fund Fund
companies
The Hongkong and Associate 2009 - 2010 154.25 28.82 55,132,417 32.27
Shanghai Banking
Corporation Limited
HSBC InvestDirect Associate 2009 - 2010 1.01 0.19 526,980 0.31
Securities (India)
Limited

parties / group Relation the Fund (on accrual Fund
companies basis)
Shanghai Banking
Corporation Limited
Brokerage paid to Sponsor / AMC and its associates / related parties / group companies
Name of Sponsor / Nature of Period Value of % of total Brokerage % of total

AMC and its Association / Covered Transactions value of paid brokerage
associates / related Nature of [Rs. in Crores] transaction [Rs.] paid by the
parties / group relation of the Fund Fund
companies
HSBC Securities and Sponsor 2009 - 2010 123.77 2.70 922,708 1.63
Capital Market (India)
Private Limited
Name of Sponsor / Nature of Period Value of % of Total Brokerage % of Total

AMC and its Association / Covered Transactions Value of paid brokerage
associates / related Nature of [Rs. in Crores] Transactions [Rs.] paid by the
parties / group Relation of the Fund (on accrual Fund
companies basis)
Securities (India)
Limited
HSBC Securities and Sponsor 2008 - 2009 222.09 4.09 1,993,781 3.17
Private Limited
The brokerage paid was at rates similar to those offered to other brokers / distributors.
3 None of the Investors held more than 25% of the total net assets of the Scheme at the years ended
March 31, 2010 and March 31, 2009.
14

4 Unit Capital movement during the years ended March 31, 2010 and March 31, 2009.
2009-2010
Description
Opening Units Subscription Redemption Closing Units Face Value
Regular Growth 82,822,603.543 31,106,227.231 45,988,828.816 67,940,001.958 679,400,020
Option
Regular 315,640,026.026 105,492,570.593 151,529,305.054 269,603,291.565 2,696,032,916
Dividend Option
2008-2009
Description
Regular Growth 47,671,381.108 54,767,475.116 19,616,252.681 82,822,603.543 828,226,035
Option
Regular 230,018,561.715 146,706,869.491 61,085,405.180 315,640,026.026 3,156,400,260
Dividend Option
5 Previous years figures have been re-grouped / re-arranged where necessary.

6 No contingent liabilities for the years ended March 31, 2010 and March 31, 2009.
7 Expenses other than Management Fees are Inclusive of Service Tax where applicable.
8 Other income includes exit load collected in excess of 1% of redemption proceeds credited to the
Scheme and provision for expenses written back as no longer required.
9 The Annual Accounts of the Schemes prepared in accordance with the accounting policies and
standards specified in the Ninth Schedule of The Securities and Exchange Board of India (Mutual Funds)
Regulations, 1996 has been approved by the Board of Directors of HSBC Asset Management (India)
Private Limited and The Board of Trustees of HSBC Mutual Fund at their meeting held on July 20,
2010. The audit report attached herewith refers to the said Annual Accounts. The aforesaid abridged
accounts are an extract of the Annual Accounts and are prepared in accordance with SEBI Circular No.
IMD/Cir8/132968/2008 dated July 24, 2008.
15

DISCLAIMERS
This content of this report has been prepared by HSBC Asset Management (India) Private Limited (HSBC) for
information purposes only and should not be construed as an offer or solicitation of an offer for purchase
of any of the funds of HSBC Mutual Fund. The information is for general information only and does not
have regard to specific investment objectives, financial situation and the particular needs of any specific
person who may receive this information. Investments in mutual funds inherently involve risks and investors
should read the relevant documents / information for details and risk factors and consult their legal, tax
and financial advisors before investing. Investors should understand that statements made herein regarding
future prospects may not be realised. Neither this document nor the units of HSBC Mutual Fund have been
registered in any jurisdiction. The distribution of this document in certain jurisdictions may be restricted or
totally prohibited and accordingly, persons who come into possession of this document are required to
inform themselves about, and to observe, any such restrictions.
Investors may obtain Statement of Additional Information, Scheme Information Document and Key
Information Memorandums along with application forms from the office of HSBC Mutual Fund, 314 D. N.
Road, Fort, Mumbai 400 001. Tel: 022-6666 8819.
Statutory Details:
HSBC Mutual Fund has been set up as a trust by HSBC Securities and Capital Markets (India) Private Limited
(liability restricted to the corpus of Rs. 1 lakh). The Sponsor / associates of the Sponsor / Asset Management
Company (AMC) are not responsible or liable for any loss or shortfall resulting from the operation of the
Schemes. The Trustees of HSBC Mutual Fund have appointed HSBC Asset Management (India) Private
Limited as the Investment Manager.
Risk Factors:
All investments in mutual funds and securities are subject to market risks and the Net Asset
Value (NAV) of the Scheme(s) may go up or down depending on the factors and forces affecting
the securities markets. There can be no assurance that the objectives of the Scheme(s) will be
achieved. Past performance of the Sponsor, AMC, Mutual Fund or any associates of the Sponsor/
AMC does not indicate the future performance of the Scheme(s) of the Mutual Fund. HSBC Equity
Fund (HEF) is the name of the Scheme and does not in any manner indicate the quality of the
Scheme or its future prospects or returns.
Terms of Issue:
Units of the Scheme(s) are being offered at NAV based prices, subject to the prevailing loads. The AMC
calculates and publishes NAVs and offers for sale, redemption and switch outs, units of the Scheme(s)
on all Business Days, at the Applicable NAV for all Schemes (at least once a week, i.e., every Wednesday
and daily during the period of redemption in case of HSCF). HSCF & HFTS will not be open for ongoing
subscriptions / switch-ins. HSCF would be available for sale on an ongoing basis (after a period of 3 years
from the date of allotment). Conversion of HSCF to an open-ended scheme will be done only after the
balance unamortized amount has been fully recovered from the Scheme. Units can be redeemed / switched
out on every Business Day at NAV based prices, subject to prevailing exit loads. In case of HSCF, units can
be redeemed / switched-out on a monthly basis on the stipulated date i.e. last 3 Business Days of every
month at NAV based prices, subject to provisions of exit load, if any, and recovery of balance proportionate
unamortized NFO expenses.
Load Structure (includes SIP/STP, where applicable):
Exit: 1% - if redeemed / switched out* within 1 year from date of investment; Otherwise Nil.
*No load in case of switches between equity Schemes of HSBC Mutual Fund.
Consult the nearest investor service centre for details. The applicable exit loads (if any) at the time of
allotment of the Schemes of HSBC Mutual Fund shall also be charged on investments made by all investors.
Bonus units and units issued on reinvestment of dividends shall not be subject to exit load.
The exit load set forth above is subject to change at the discretion of the AMC and such changes shall be
implemented prospectively.
Mutual Fund investments are subject to market risks. Read the Scheme Information Document
and Scheme Additional Information carefully before investing.
CRISIL Ranking Methodology
CRISIL~CPR 1 Open End MIP Aggressive Schemes, March 2010 *CRISIL~CPR 1 – The composite performance
of HSBC MIP - Savings is “Very Good” in the Open End MIP Aggressive Fund Category, and ranks within the
top 10% of the 21 schemes ranked in this category. The criteria used in computing the CRISIL Composite
Performance Rank are Superior Return Score, based on NAVs over the 2-year period ended March 31,
2010, Concentration, Liquidity, Asset Quality and Average Maturity of the scheme. The methodology does
not take into account the entry and exit loads levied by the scheme. The CRISIL CPR is no indication of
the performance that can be expected from the scheme in future. Ranking Source: CRISIL FundServices,
CRISIL Limited.
16

HSBC Progressive Themes Fund
An open-ended flexi-theme equity Scheme
Progressive Themes Fund.indd 1 24/07/2010 1:10:06 PM

Dear Investor,
Yours sincerely,
Vikramaaditya

SPONSOR
TRUSTEE
Board of Trustees

CUSTODIAN

Price Waterhouse
LEGAL ADVISORS
Bharucha & Partners

BOARD OF TRUSTEES
Mr. Nasser Munjee
Mr. Manu Tandon
Mr. Mehli Mistri
BOARD OF DIRECTORS
Mr. Ayaz Ebrahim
Mr. S. P. Mustafa
Mr. Ashok Jha*

Trustees’ Report

HSBC Progressive Themes Fund (HPTF) – an open-ended flexi-theme Equity Scheme
HPTF seeks to generate long term capital growth from an actively managed portfolio of equity and equity
related securities by investing primarily in sectors, areas and themes that play an important role in, and / or
benefit from, India’s progress, reform process and economic development.
The net assets of HPTF amounted to Rs. 391.28 crores as at March 31, 2010 as compared to Rs. 357.55
crores as at March 31, 2009. Around 95.84% of the net assets were invested in equities, 1.74% of the
net assets were invested in reverse repos / CBLO were invested in reverse repos / CBLO and 2.42% were
invested in net current assets as at March 31, 2010.
HPTF underperformed last year on being invested in consumption oriented themes. This was changed w.e.f
August 2009 towards economic reforms and infrastructure oriented sectors post the electoral outcome.
Date of Inception: 23 February, 2006 Compounded Annualized Returns (%)

Scheme & Benchmark 1 Year 3 Years Since Inception
HSBC Progressive Themes Fund – Growth 55.85 3.38 6.55
BSE 200 92.87 12.19 14.12

MARKET OVERVIEW
sector spending.
markets.
around the world.

Trustees’ Report
MARKET OUTLOOK

Trustees’ Report
Debt Market Outlook

side inflation.

MANAGEMENT COMPANY
a) Sponsor
Board of India.

Trustees’ Report
b) HSBC Mutual Fund





Regulations, 1996.

HSBC Progressive Themes Fund 814,640 401 1,409,876 86

Trustees’ Report
Limited).

are as follows:
IA Dividend on 1 61 62 0 0 0 0 0 0 0 0
Units
IB Interest on 0 0 0 0 0 0 0 0 0 0 0
delayed
payment of
Dividend
IC Redemption 2 57 59 0 0 0 0 0 0 0 0
Proceeds
ID Interest on 0 0 0 0 0 0 0 0 0 0 0
delayed
payment of
Redemption
statement of
account/ Unit
Certificate
Statement of
Account
Annual Report/
Abridged
Summary
between
schemes

Trustees’ Report
switch between
schemes
III C Deviation 0 3 3 0 0 0 0 0 0 0 0
from Scheme
attributes
charges/load
of changes viz.
address, PAN,
bank details,
nomination etc.
IV Others** 10 1621 1631 0 0 0 0 0 0 0 0
TOTAL 13 1846 1859 0 0 0 0 0 0 0 0
Note:
9. ACKNOWLEDGEMENTS
Sd/-
N. P. Gidwani
Chairman
MUMBAI
July 20, 2010

Auditors’ Report

HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Progressive Themes Fund (Formerly
HSBC Advantage India Fund) (“The Scheme”) as at March 31, 2010, the related Revenue Account
for the year ended on that date and the Cash Flow Statement for the year ended on that date which
we have signed under reference to this report. These financial statements are the responsibility of the
Board of Trustees of HSBC Mutual Fund and the Management of HSBC Asset Management (India)
Private Limited (the “Management”). Our responsibility is to express an opinion on these financial
statements based on our audit.
with the custodian / others and registrar and transfer agent respectively. An audit also includes
assessing the accounting principles used and significant estimates made by the Management, as well as
4. In our opinion and to the best of our information and according to the explanations given to us;
(i) The Balance Sheet, Revenue Account and Cash Flow Statement together with the notes thereon
fair view of the state of affairs of HSBC Mutual Fund – HSBC Progressive Themes Fund as at March
31, 2010, its net surplus and its cash flows for the year ended on that date.
(ii) The Balance Sheet as at March 31, 2010 and the Revenue Account for the year ended on that date,

Sd/-
Vivek Prasad
Partner
Place : Mumbai

Rs. in Lakhs
HSBC PROGRESSIVE THEMES FUND
(Formerly, HSBC Advantage India Fund)
As at As at
March 31, 2010 March 31, 2009
LIABILITIES
1 Unit Capital 32,633.73 46,572.80
2.1 Unit Premium Reserves (24,803.48) (21,788.97)
2.3 Other Reserves 24,812.55 10,965.28
4.2 Other Current Liabilities & Provisions 719.06 656.75
TOTAL 39,879.01 36,411.92
ASSETS
1 Investments
1.1.1 Equity Shares 35,899.96 28,504.02
2 Deposits 1,650.00 3,162.50
3.2 CBLO / Reverse Repo Lending 680.08 3,291.64
3.3 Others 1,526.69 1,208.12
4 Deferred Revenue Expenditure 84.12 216.90
TOTAL 39,879.01 36,411.92
10

Rs. in Lakhs
Current Previous
March 31, 2010 March 31, 2009
1 INCOME
1.1 Dividend 429.59 483.28
1.2 Interest 131.86 453.63
1.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –
1.4 Realised Gains / (Losses) on Interscheme sale of investments – 0.18
investments
1.6 Realised Gains / (Losses) on Derivative Transactions 49.71 453.39
(A) 9,574.72 (20,445.09)
2 EXPENSES
2.1 Management fees 458.91 484.42
2.2 Service tax on Management fees ** – –
2.7 Marketing & Distribution expenses 338.76 384.25
2.8 Audit fees 6.60 5.50
(B) 1,102.42 1,257.02
FOR THE YEAR (A - B = C) 8,472.30 (21,702.11)
4 Change in Unrealised Depreciation
in value of investments (D) (4,115.64) 4,115.64
FOR THE YEAR [E = (C - D)] 12,587.94 (25,817.75)
the value of investments (F) 6,511.09 (2,088.22)
FOR THE YEAR (E + F = G) 19,099.03 (27,905.97)
Unrealised Appreciation Reserve – 2,088.22
7.2 Less: Balance transfer to Unrealised Appreciation Reserve 6,511.09 –
7.3 Add / (Less): Equalisation 1,259.33 (84.87)
7.4 Transfer from Reserve Fund – 17,246.54
7.5 Transfer from Unit Premium Reserve – –
8 TOTAL 13,847.27 (8,656.08)
9 Dividend Appropriation
9.1 Income Distributed during the year – 2,681.85
11


Current Year ended Previous Year ended

March 31, 2010 March 31, 2009
Open
High
Low
End
End 39,160 35,755
Average (AAuM)1 44,048 49,971
4. Expense Ratio:
7. Total Dividend per unit distributed during the year (planwise)
Retail
Regular Dividend Option – 1.00
Corporate
8. Returns (%):
a. Last One Year
Scheme
Benchmark
BSE 200 92.8700 (40.9800)
b. Since Inception
Scheme
Benchmark
BSE 200 14.1200 (3.6400)
1
2
3
4
12

HSBC PROGRESSIVE THEMES FUND (Formerly, HSBC Advantage India Fund)

1 Investments:
1.2. Open Positions of derivatives amount to Rs. 292,171,950 and 7.46% to Net Assets as of year
ended March 31, 2010. Open Positions of derivatives amount to Rs. (32,362,600) and 0.91% to
Net Assets as of year ended March 31, 2009.
1.3. Investments in Associates and Group Companies
(Rupees)
Type Investments Investments
schemes
2010 2009
Shanghai Banking
Corporation Limited
1.4. Open positions of Securities Borrowed and / or Lent by the scheme as of the years ended March
31, 2010 and March 31, 2009 is NIL.
1.6. Aggregate Unrealised Gain / Loss as at the end of the Financial year 2009-2010 and percentage to
net assets are as under:

2010 2009
Equity Shares
– Appreciation 698,236,771 17.8304% 78,574,286 2.1976%
– Depreciation 50,277,699 1.2839% 490,138,560 13.7082%
Equity Futures
– Appreciation 7,092,309 0.1811% 610,412 0.0171%
– Depreciation 3,336,168 0.0852% 3,982 0.0001%
1.7. The aggregate value of investments securities purchased and sold (including matured) during the
financial year 2009-2010 is Rs. 4,484,625,154 and Rs. 5,700,864,079 respectively being 101.81%
and 129.42% of the average daily net assets.
Rs. 667,794) and sold (including matured) during the financial year 2008-2009 is Rs. 7,016,898,573
and Rs. 7,575,919,895 respectively being 140.42% and 151.61% of the average daily net assets.
1.8. Non-Traded securities in the portfolio:
Aggregate Value of Equity, Debt & Money Market Instruments and percentage to net assets is Nil.
During the year 2009-2010, The Hongkong & Shanghai Banking Corporation Limited, an associate
entity of HSBC Asset Management (India) Private Limited was paid collection / bank charges amounting
to Rs.15,434 and clearing member charges on derivative transactions amounting to Rs. 328,519.
13

During the year 2008-2009, The Hongkong and Shanghai Banking Corporation Limited, an associate
to Rs. 1,220,316, and clearing member charges on derivative transactions Rs. 2,493.
Details of amounts paid to associates in terms of Regulation 25 (8) are as follows :

companies
The Hongkong and Associate 2009-2010 7.27 17.92 5,828,905 19.66
Shanghai Banking
Corporation Limited
HSBC InvestDirect Associate 2009-2010 – – 69,317 0.23
Securities (India)
Limited

associate / related Nature of [Rs. in Crores] received by [Rs.] paid by the
companies basis)
Shanghai Banking
Corporation Limited

associate / related Nature of [Rs. in Crores] transaction of [Rs.] paid by the
parties / group relation the Fund Fund
companies
HSBC Securities and Sponsor 2009-2010 50.35 3.62 642,935 3.07
Private Limited

associate / related Nature of [Rs. in Crores] transaction of [Rs.] paid by the
parties / group relation the Fund (on accrual Fund
companies basis)
HSBC InvestDirect Associate 2008-2009 3.70 0.14 73,827 0.24
Securities (India)
Limited
Private Limited
14

Further, The Hongkong and Shanghai Banking Corporation Limited, an associate of the Sponsor, is on
the panel of bankers with whom HSBC Mutual Fund places money on fixed deposits and enters into
reverse repo transactions from time to time at competitive rates.
3 None of the Investors held more than 25% of the total net assets of the scheme at the year ended
March 31, 2010 and March 31, 2009.
4 Unit Capital movement during the Years ended March 31, 2010 and March 31, 2009.
2009 – 2010
Description
Regular Growth 223,981,981.866 15,638,871.735 78,374,072.268 161,246,781.333 1,612,467,813
Option
Regular 241,745,992.961 21,340,849.708 97,996,318.076 165,090,524.593 1,650,905,245
Dividend Option
2008 – 2009
Description
Regular Growth 236,466,762.306 25,953,833.730 38,438,614.170 223,981,981.866 2,239,819,819
Option
Regular 275,824,146.002 19,656,412.037 53,734,565.078 241,745,992.961 2,417,459,930
Dividend Option
5 Previous year’s figures have been re-grouped / re-arranged where appropriate.
8 Other income represents exit load collected in excess of 1% of redemption proceeds and credited to
the Scheme.
standards specified in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds)
15

DISCLAIMERS
Statutory Details:
Risk Factors:
AMC does not indicate the future performance of the Scheme(s) of the Mutual Fund. HSBC
Progressive Themes Fund (HPTF) is the name of the Scheme and does not in any manner indicate
the quality of the Scheme or its future prospects or returns.
Terms of Issue:
CRISIL Limited.
16

HSBC Emerging Markets Fund
An open-ended Scheme
Emerging Markets Fund.indd 1 26/07/2010 4:03:40 PM

Dear Investor,
Yours sincerely,
Vikramaaditya

SPONSOR
TRUSTEE
Board of Trustees

CUSTODIAN

Price Waterhouse
LEGAL ADVISORS
Bharucha & Partners

BOARD OF TRUSTEES
Mr. Nasser Munjee
Mr. Manu Tandon
Mr. Mehli Mistri
BOARD OF DIRECTORS
Mr. Ayaz Ebrahim
Mr. S. P. Mustafa
Mr. Ashok Jha*

Trustees’ Report

HSBC Emerging Markets Fund (HEMF) - an open-ended Scheme
HEMF seeks to provide long term capital appreciation by investing in India and in the emerging markets, in
equity and equity related instruments, share classes and units / securities issued by overseas mutual funds or
unit trusts. The fund may also invest a limited proportion in debt and money market instruments.
The net assets of HEMF amounted to Rs. 87.09 crores as at March 31, 2010 compared to Rs. 84.59 crores
as at March 31, 2009. Around 98.70% of the net assets were invested in HSBC GEM Equity Fund (overseas
mutual fund), 3.57% of the net assets were invested in reverse repos / CBLO and (2.26)% were invested in
net current assets as at March 31, 2010.
HEMF underperformed its benchmark by about 500 bps over the past 1 year period.
Date of Inception: 17 March, 2008 Compounded Annualized Returns (%)

Scheme & Benchmark 1 Year Since Inception
HSBC Emerging Markets Fund – Growth 48.85 (3.44)
MSCI Emerging Markets Index 54.67 0.16


MARKET OVERVIEW
sector spending.
markets.
around the world.

Trustees’ Report
MARKET OUTLOOK

Trustees’ Report
Debt Market Outlook

side inflation.

MANAGEMENT COMPANY
a) Sponsor
Board of India.

Trustees’ Report
b) HSBC Mutual Fund





Regulations, 1996.

Nil.

Trustees’ Report
Limited).

are as follows:
IA Dividend on 1 61 62 0 0 0 0 0 0 0 0
Units
IB Interest on 0 0 0 0 0 0 0 0 0 0 0
delayed
payment of
Dividend
IC Redemption 2 57 59 0 0 0 0 0 0 0 0
Proceeds
ID Interest on 0 0 0 0 0 0 0 0 0 0 0
delayed
payment of
Redemption
statement of
account/ Unit
Certificate
Statement of
Account
Annual Report/
Abridged
Summary
between
schemes
switch between
schemes

Trustees’ Report
III C Deviation 0 3 3 0 0 0 0 0 0 0 0
from Scheme
attributes
charges/load
of changes viz.
address, PAN,
bank details,
nomination etc.
IV Others** 10 1621 1631 0 0 0 0 0 0 0 0
TOTAL 13 1846 1859 0 0 0 0 0 0 0 0
Note:
9. ACKNOWLEDGEMENTS
Sd/-
N. P. Gidwani
Chairman
MUMBAI
July 20, 2010

Auditors’ Report

HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Emerging Markets Fund (“The
Scheme”) as at March 31, 2010 and the related Revenue Account for the year ended March 31,
2010, both of which we have signed under reference to this report. These financial statements are
the responsibility of the Board of Trustees of HSBC Mutual Fund and the Management of HSBC Asset
Management (India) Private Limited (the “Management”). Our responsibility is to express an opinion
on these financial statements based on our audit.
with the custodian and registrar and transfer agent respectively. An audit also includes assessing the
accounting principles used and significant estimates made by the Management as well as evaluating
the overall financial statement presentation. We believe that our audit provides a reasonable basis for
our opinion.
were necessary for the purpose of our audit. The Balance Sheet and Revenue Account referred to above
are in agreement with the books of account of the Scheme.
4. In our opinion and to the best of our information and according to the explanations given to us;
(i) The Balance Sheet and Revenue Account together with the notes thereon give the information
required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and
amendments thereto, as applicable, and also give respectively, a true and fair view of the state of
affairs of HSBC Mutual Fund – HSBC Emerging Markets Fund as at March 31, 2010 and its net
surplus for the year ended on that date.
(ii) The Balance Sheet as at March 31, 2010 and Revenue Account for the year ended on that date,

Sd/-
Vivek Prasad
Partner
Place : Mumbai

Rs. in Lakhs
HSBC EMERGING MARKETS FUND
As at As at
March 31, 2010 March 31, 2009
LIABILITIES
1 Unit Capital 9,354.14 13,522.54
2.1 Unit Premium Reserves 135.71 259.27
2.2 Unrealised Appreciation Reserve – –
2.3 Other Reserves (780.52) (5,322.96)
TOTAL 8,917.92 8,515.08
ASSETS
1 Investments
1.10 Foreign Securities 8,595.69 8,095.42
2 Deposits – –
3.2 CBLO / Reverse Repo Lending 310.55 177.27
3.3 Others 5.22 43.15
TOTAL 8,917.92 8,515.08
Notes to Accounts - Annexure I
10

Rs. in Lakhs
Current Previous
March 31, 2010 March 31, 2009
1 INCOME
1.1 Dividend 58.11 –
1.2 Interest 10.90 57.39
1.3 Realised Gain / (Loss) on Foreign Exchange Transactions (37.26) (0.44)
1.5 Realised Gains / (Losses) on External sale / redemption of (513.85) (105.09)
investments
1.6 Realised Gains / (Losses) on Derivative Transactions – –
(A) (482.02) (48.14)
2 EXPENSES
2.2 Service tax on Management fees** – –
2.8 Audit fees 0.50 0.25
2.10 Expenses to be Reimbursed by the Investment Manager (5.03) (39.35)
(B) 76.98 75.23
FOR THE YEAR / PERIOD (A - B = C) (559.00) (123.37)
value of investments *** (D) (4,555.39) 4,975.85
FOR THE YEAR / PERIOD [E = (C - D)] 3,996.39 (5,099.22)
the value of investments (F) – –
FOR THE YEAR / PERIOD (E + F = G) 3,996.39 (5,099.22)
7.3 Add / (Less): Equalisation 546.05 (254.85)
7.4 Transfer from Reserve Fund – –
8 TOTAL 4,542.43 (5,354.07)
9.1 Income Distributed during the year / period – –
9.2 Tax on income distributed during the year / period – –
*** Includes Unrealised Depreciation in the value of Foreign Currency Transactions.
11


Current Previous
March 31, 2010 March 31, 2009
Open
High
Low
End

End 8,709 8,459
1
Average (AAuM) 10,264 10,030
3. Gross income as % of AAuM2 -4.70% -0.48%
4. Expense Ratio:
5. Net Income as a percentage of AAuM3 -5.45% -1.23%
6. Portfolio turnover ratio4 0.05 –
during the year / period (planwise)
Retail
Regular Dividend Option – –
Corporate
12

Key Statistics for the year ended March 31, 2010 (Contd...)

Current Previous
March 31, 2010 March 31, 2009
8. Returns (%):
a. Last One Year
Scheme
Benchmark
BSE 200 – –
MSCI Emerging Markets Index 54.6700 (38.7900)

b. Since Inception
Scheme
Regular Growth Option (3.4432) (36.3500)
Regular Dividend Option (3.4432) (38.7900)
Benchnmark
BSE 200 – –
MSCI Emerging Markets Index 0.1600 (34.5800)
1
2
3
Net income = amount against (C) in the Revenue Account i.e. Net Realised Gains / (Losses) for the year /
period
4
Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year / period.
13


1 Investments:
1.2. Open Positions of derivatives as a % to Net Assets as of 2009-10 and 2008-09 is NIL.

schemes
2010 2009
The Hongkong & Fixed deposits – 10,18,000,000 – 43,000,000
Shanghai Banking
Corporation Limited
1.4. Open positions of Securities Borrowed and / or Lent by the Scheme as of the year ended March 31,
2010 is NIL.
1.5. NPAs as at years ended March 31, 2010 and March 31, 2009 is NIL.
1.6. Aggregate Unrealised Gain / Loss as at the end of the Financial year ended 2009-2010 and their
percentages to net assets are as under:
Security Amount Percentage to Amount Percentage to

Category (Rs.) Net Assets (Rs.) Net Assets
2010 2009
Units in Mutual Fund
– Appreciation – – – –
– Depreciation 45,518,394 5.2264% 500,876,360 59.2140%
1.7. The aggregate value of investments securities purchased (including matured) and sold during the
financial year 2009-2010 is Rs. 48,569,303 and Rs. 402,515,128 respectively being 4.73% and
39.21% of the average daily net assets.
The aggregate value of investments securities purchased (including matured) and sold during the
financial year 2008-2009 is Rs. 870,578,912 and Rs. 51,463,615 respectively being 86.76% and
1.8. Non-Traded securities in the portfolio as on March 31, 2010 is NIL.
Regulations, 1996 as amended for the year ended March 31, 2010 is as under :
companies
Shanghai Banking
Corporation Limited
Securities (India) Limited
14


companies
The Hongkong and Associate 2008 - 09 47.05 3.83 1.56 25.40
Shanghai Banking
Corporation Limited
During the year 2009-2010 The Hongkong and Shanghai Banking Corporation Limited, an associate
to Rs. 300.
Rs. 3,612.
March 31, 2010 and year ended March 31, 2009.
2009-2010
Description
Regular Growth 84,302,484.733 13,367,388.355 35,253,521.112 62,416,351.976 624,163,520
Option
Regular Dividend 50,922,901.492 3,579,638.005 23,377,459.166 31,125,080.331 311,250,802
Option
2008-2009
Description
Regular Growth 61,213,343.633 42,092,615.754 19,003,474.654 84,302,484.733 843,024,847
Option
Option

the Scheme.
9. The Annual Accounts of the Schemes prepared in accordance with the accounting policies and
15

DISCLAIMERS
Statutory Details:
Risk Factors:
Emerging Markets Fund (HEMF) is the name of the Scheme and does not in any manner indicate
Terms of Issue:
CRISIL Limited.
16

HSBC Dynamic Fund
An open-ended Scheme
DYNAMIC FUND.indd 1 24/07/2010 2:06:38 PM

Dear Investor,
Yours sincerely,
Vikramaaditya

SPONSOR
TRUSTEE
Board of Trustees

CUSTODIAN

Price Waterhouse
LEGAL ADVISORS
Bharucha & Partners

BOARD OF TRUSTEES
Mr. Nasser Munjee
Mr. Manu Tandon
Mr. Mehli Mistri
BOARD OF DIRECTORS
Mr. Ayaz Ebrahim
Mr. S. P. Mustafa
Mr. Ashok Jha*

Trustees’ Report

HSBC Dynamic Fund (HDF) - an open-ended Scheme
HDF seeks to provide long term capital appreciation by allocating funds in equity and equity related
instruments. It also has the flexibility to move, entirely if required, into debt instruments in times that the
view on equity markets seems negative.
The net assets of HDF amounted to Rs. 238.73 crores as at March 31, 2010 compared to Rs. 234.13 crores
as at March 31, 2009. Around 95.17% of the net assets were invested in equities, 1.82% of the net assets
were invested in reverse repos / CBLO and 3.01% were invested in net current assets as at March 31, 2010.
HDF underperformed its benchmark on a higher cash call ahead of election results. This was changed in
the second half of last year.
Date of Inception: 24 Sepember, 2007 Compounded Annualized Returns (%)

HSBC Dynamic Fund – Growth 51.97 (1.66)
BSE 200 92.87 2.42


MARKET OVERVIEW
sector spending.
markets.

Trustees’ Report
around the world.
MARKET OUTLOOK

Trustees’ Report
Debt Market Outlook
side inflation.

MANAGEMENT COMPANY
a) Sponsor
HSBC Mutual Fund is sponsored by HSBC Securities and Capital Markets (India) Private Limited (HSCI).
The Sponsor is the Settlor of the Mutual Fund Trust. The Sponsor has entrusted a sum of Rs. 1,00,000
(Rupees One Lakh only) to the Trustee as the initial contribution towards the corpus of the Mutual
Fund.

Trustees’ Report
Board of India.
b) HSBC Mutual Fund





Regulations, 1996.

HSBC Dynamic Fund – – 263,052 10

Trustees’ Report
Limited).

are as follows:
IA Dividend on 1 61 62 0 0 0 0 0 0 0 0
Units
IB Interest on 0 0 0 0 0 0 0 0 0 0 0
delayed
payment of
Dividend
IC Redemption 2 57 59 0 0 0 0 0 0 0 0
Proceeds
ID Interest on 0 0 0 0 0 0 0 0 0 0 0
delayed
payment of
Redemption

Trustees’ Report
statement of
account/ Unit
Certificate
Statement of
Account
Annual Report/
Abridged
Summary
between
schemes
switch between
schemes
III C Deviation 0 3 3 0 0 0 0 0 0 0 0
from Scheme
attributes
charges/load
of changes viz.
address, PAN,
bank details,
nomination etc.
IV Others** 10 1621 1631 0 0 0 0 0 0 0 0
TOTAL 13 1846 1859 0 0 0 0 0 0 0 0
Note:

Trustees’ Report
9. ACKNOWLEDGEMENTS
Sd/-
N. P. Gidwani
Chairman
MUMBAI
July 20, 2010

Auditors’ Report

HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Dynamic Fund (“The Scheme”)
as at March 31, 2010, the related Revenue Account for the year ended on that date and the Cash
Flow Statement for the year ended on that date which we have signed under reference to this report.
with the custodian and others and registrar and transfer agent respectively. An audit also includes
i. The Balance Sheet, Revenue Account and Cash Flow Statement together with the notes thereon
fair view of the state of affairs of HSBC Mutual Fund – HSBC Dynamic Fund as at March 31, 2010,
its net surplus and its cash flows for the year ended on that date.
ii. The Balance Sheet as at March 31, 2010 and the Revenue Account for the year ended on that date,

Sd/-
Vivek Prasad
Partner
Place : Mumbai
10

Rs. in Lakhs
HSBC DYNAMIC FUND
As at As at
March 31, 2010 March 31, 2009
LIABILITIES
1 Unit Capital 24,899.69 37,112.01
2.1 Unit Premium Reserves (2,687.00) (437.55)
2.2 Unrealised Appreciation Reserve 5,548.39 –
2.3 Other Reserves (3,888.14) (13,261.07)
TOTAL 24,390.90 23,937.48
ASSETS
1 Investments
1.1.1 Equity Shares 21,260.01 16,557.67
1.1.4 Other Debentures & Bonds – 1,580.65
2 Deposits 1,460.00 2,610.00
3.3 Others 1,215.39 1,391.07
TOTAL 24,390.90 23,937.48
11

Rs. in Lakhs
HSBC DYNAMIC FUND
Current Previous
March 31, 2010 March 31, 2009
1 INCOME
1.1 Dividend 283.90 336.18
1.2 Interest 121.18 673.29
1.3 Realised Gain / (Loss) on Foreign Exchange Transactions (3.74) –
1.4 Realised Gains / (Losses) on Interscheme sale of investments – (76.49)
1.5 Realised Gains / (Losses) on External sale / redemption 5,255.18 (16,761.36)
of investments
1.6 Realised Gains / (Losses) on Derivative Transactions (363.83) 325.07
(A) 5,292.70 (15,503.31)
2 EXPENSES
2.8 Audit fees 2.50 1.00
(B) 630.54 729.85
FOR THE YEAR (A - B = C) 4,662.16 (16,233.16)
in value of investments (D) (968.84) (3,026.54)
FOR THE YEAR [E = (C - D)] 5,631.00 (13,206.62)
6 Change in unrealised appreciation
in the value of investments (F) 5,548.39 –
FOR THE YEAR (E + F = G) 11,179.39 (13,206.62)
7.2 Less: Balance transfer to Unrealised 5,548.39 –
Appreciation Reserve
7.3 Add / (Less): Equalisation 3,741.94 916.08
8 TOTAL 9,372.94 (12,290.55)
9.1 Income Distributed during the year – –
10 Retained Surplus / (Deficit) carried forward to
9,372.94 (12,290.55)
Balance Sheet
12

HSBC DYNAMIC FUND

Current Previous
March 31, 2010 March 31, 2009
Open
High
Low
End
End 23,873 23,413
Average (AAuM)1 26,914 31,327
4. Expense Ratio:
Retail
Corporate
13

HSBC DYNAMIC FUND

Current Previous
March 31, 2010 March 31, 2009
8. Returns (%):
a. Last One Year
Scheme
Benchmark
BSE200 92.8658 (40.9800)
b. Since Inception
Scheme
Regular Growth Option (1.6588) (26.1763)
Regular Dividend Option (1.6588) (26.1763)
Benchmark
BSE200 2.4233 (32.5000)
1
2
3
Net income = amount against (C) in the Revenue Account i.e. Net Realised Gains / (Losses) for the
year.
4
14

HSBC DYNAMIC FUND

1 Investments:
1.2. Open Positions of derivatives amount to Rs. 144,098,597 and is 6.04% to Net Assets for the year
ended March 31, 2010. Open Positions of derivatives amount to Rs. (47,034,850) and is 2.01% to
Net Assets for the year ended March 31, 2009.
(Rupees)
schemes
2010 2009
Shanghai Banking
Corporation Limited
1.4. Open position of Securities Borrowed and / or Lent by the scheme as of the year ended March 31,
2010 and March 31, 2009 are NIL.
1.6. Aggregate Unrealised Gain / Loss as at the end of the Financial year and percentage to net assets.

2010 2009
Equity Shares
– Appreciation 582,644,211 24.4061% 103,451,368 4.4185%
– Depreciation 30,122,536 1.2618% 198,113,243 8.4615%
Non Convertible Debentures and Bonds Listed / Awaiting Listing
– Appreciation – 384,760 0.0164%
– Depreciation – 1,741,120 0.0744%
Equity Futures
– Appreciation 2,622,855 0.1099% – –
– Depreciation 305,068 0.0128% 865,408 0.0370%
1.7. The aggregate value of investments securities purchased and sold during the financial year
2009-2010 is Rs. 2,745,924,605 and Rs. 3,607,759,880 respectively being 102.03% and
Rs. 11,758,508) and sold during the financial year 2008–2009 is Rs. 10,072,387,041 and
15


Aggregate Value of Equity, Debt & Money Market Instruments and percentages to net assets are
as under :
Security Fair Value Percentage to Fair Value Percentage to

2010 2009
Debt Instruments – – 77,003,317 3.2889%
Total – – 77,003,317 3.2889%
During the year, Hongkong & Shanghai Banking Corporation Limited, an associate entity of HSBC Asset
Management (India) Private Limited was paid collection / bank charges amounting to Rs. 168,872 and
clearing member charges on derivative transactions amounting to Rs. 530,800.
Rs. 3,131.

companies

Shanghai Banking
Corporation Limited

Securities (India)
Limited

companies basisi)

Shanghai Banking
Corporation Limited
16


associate / related Nature of [Rs. in Crores] transaction [Rs.] paid by the
companies
HSBC Securities Sponsor 2009-2010 42.48 3.52 341,708 2.51
and Capital Market
(India) Private
Limited

associate / related Nature of [Rs. in Crores] transaction [Rs.] paid by the
parties / group relation of the Fund (on accrual Fund
companies basis)
Securities (India)
Limited
and Capital Market
(India) Private
Limited
Further,The Hongkong and Shanghai Banking Corporation Limited, an associate of the Sponsor, is on
3 None of the Investors held more than 25% of the total net assets of the scheme at the years ended
March 31, 2010 and March 31, 2009.
2009–2010
Description
Regular Growth 190,248,100.865 7,916,961.708 59,160,416.082 139,004,646.491 1,390,046,465
Option
Regular Dividend 180,871,982.404 11,722,378.320 82,602,130.068 109,992,230.656 1,099,922,305
Option
2008–2009
Description
Regular Growth 205,008,927.831- 15,555,453.448 30,316,280.414 190,248,100.865 1,902,481,009
Option
Regular Dividend 214,284,442.273 12,615,611.127 46,028,070.996 180,871,982.404 1,808,719,824
Option
17


6 No contingent liabilities for the year ended March 31, 2010 and March 31, 2009.
8 Other income represents exit load collected in excess of 1% of redemption proceeds credited to the
Scheme.
18

DISCLAIMERS
Statutory Details:
Risk Factors:
Dynamic Fund (HDF) is the name of the Scheme and does not in any manner indicate the quality
of the Scheme or its future prospects or returns.
Terms of Issue:

19

CRISIL Limited.
20

HSBC Tax Saver Equity Fund
An open-ended Equity Linked Savings Scheme
Tax Saver Fund.indd 1 24/07/2010 2:04:27 PM

Dear Investor,
Yours sincerely,
Vikramaaditya

SPONSOR
TRUSTEE
Board of Trustees

CUSTODIAN

Price Waterhouse
LEGAL ADVISORS
Bharucha & Partners

BOARD OF TRUSTEES
Mr. Nasser Munjee
Mr. Manu Tandon
Mr. Mehli Mistri
BOARD OF DIRECTORS
Mr. Ayaz Ebrahim
Mr. S. P. Mustafa
Mr. Ashok Jha*

Trustees’ Report

HSBC Tax Saver Equity Fund (HTSF) - an open-ended Equity Linked Savings Scheme
HTSF seeks to provide long term capital appreciation by investing in a diversified portfolio of equity & equity
related instruments of companies across various sectors and industries, with no capitalisation bias. The
Fund may also invest in fixed income securities.
The net assets of HTSF amounted to Rs. 301.54 crores as at March 31, 2010 compared to Rs. 180.58
crores as at March 31, 2009. Around 96.73% of the net assets were invested in equities, 3.46% of the net
assets were invested in reverse repos / CBLO and (0.19)% were invested in net current assets as at March
31, 2010.
HTSF marginally underperformed its benchmark over the past 1 year on a marginal defensive positioning
ahead of election results. Longer term, the scheme has outperformed its benchmarks.
Date of Inception: 05 January, 2007 Compounded Annualized Returns (%)

HSBC Tax Saver Equity Fund – Growth 87.14 13.56 10.44
BSE 200 92.87 12.19 9.02


MARKET OVERVIEW
sector spending.
markets.

Trustees’ Report
around the world.
MARKET OUTLOOK

Trustees’ Report
Debt Market Outlook
side inflation.

MANAGEMENT COMPANY
a) Sponsor
Board of India.

Trustees’ Report
b) HSBC Mutual Fund




Regulations, 1996.

Nil

Trustees’ Report
Limited).

are as follows:
IA Dividend on 1 61 62 0 0 0 0 0 0 0 0
Units
IB Interest on 0 0 0 0 0 0 0 0 0 0 0
delayed
payment of
Dividend
IC Redemption 2 57 59 0 0 0 0 0 0 0 0
Proceeds
ID Interest on 0 0 0 0 0 0 0 0 0 0 0
delayed
payment of
Redemption
statement of
account/ Unit
Certificate
Statement of
Account
Annual Report/
Abridged
Summary
between
schemes

Trustees’ Report
switch between
schemes
III C Deviation 0 3 3 0 0 0 0 0 0 0 0
from Scheme
attributes
charges/load
of changes viz.
address, PAN,
bank details,
nomination etc.
IV Others** 10 1621 1631 0 0 0 0 0 0 0 0
TOTAL 13 1846 1859 0 0 0 0 0 0 0 0
Note:
9. ACKNOWLEDGEMENTS
Sd/-
N. P. Gidwani
Chairman
MUMBAI
July 20, 2010

Auditors’ Report

HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Tax Saver Equity Fund (“The
Scheme”) as at March 31, 2010, the related Revenue Account for the year ended on that date and the
Cash Flow Statement for the year ended on that date, which we have signed under reference to this
report. These financial statements are the responsibility of the Board of Trustees of HSBC Mutual Fund
and the Management of HSBC Asset Management (India) Private Limited (the “Management”). Our
with the custodian and others and registrar and transfer agents respectively. An audit also includes
fair view of the state of affairs of HSBC Mutual Fund – HSBC Tax Saver Equity Fund as at March 31,
2010, its net surplus and its cash flows for the year ended on that date.
(iii) The methods used to value equity shares awaiting listing as at March 31, 2010 as determined in
good faith by HSBC Asset Management (India) Private Limited under procedures approved by the
Board of Trustees of HSBC Mutual Fund are fair and reasonable.

Sd/-
Vivek Prasad
Partner
Place : Mumbai

Rs. in Lakhs
HSBC TAX SAVER EQUITY FUND
As at As at
March 31, 2010 March 31, 2009
LIABILITIES
1 Unit Capital 22,546.23 24,505.14
2.1 Unit Premium Reserves (127.95) 496.14
2.2 Unrealised Appreciation Reserve 5,394.07 –
2.3 Other Reserves 2,341.64 (6,942.74)
TOTAL 30,615.35 18,543.90
ASSETS
1 Investments
1.1.1 Equity Shares 29,138.00 14,385.62
1.2.1 Equity Shares 28.67 –
2 Deposits – 600.00
3.3 Others 292.80 406.87
TOTAL 30,615.35 18,543.90
10

Rs. in Lakhs
Current Previous
March 31, 2010 March 31, 2009
1 INCOME
1.1 Dividend 301.49 222.19
1.2 Interest 32.19 249.35
investments
1.6 Realised Gains / (Losses) on Derivative Transactions –
1.7 Other Income – –
(A) 9,617.48 (5,451.38)
2 EXPENSES
2.8 Audit fees 1.75 0.75
2.10 Expenses to be Reimbursed by the Investment Manager (19.24)
(B) 670.06 467.05
FOR THE YEAR (A - B = C) 8,947.42 (5,918.43)
5 NET GAINS / (LOSSES) FOR
THE YEAR [E = (C - D)] 10,481.28 (7,049.30)
the value of investments (F) 5,394.07 –
FOR THE YEAR (E + F = G) 15,875.35 (7,049.30)
Unrealised Appreciation Reserve 5,394.07 –
7.3 Add / (Less): Equalisation (294.10) (642.87)
8 TOTAL 10,187.18 (7,692.17)
9.1 Income Distributed during the year 902.79 –
11


Current Previous
March 31, 2010 March 31, 2009
Open
High
Low
End
End 30,154 18,059
Average (AAuM)1 28,703 19,647
4. Expense Ratio:
Retail
Dividend 1.00 –
Corporate
Dividend 1.00 –
8. Returns (%):
a. Last One Year
Scheme
Benchmark
BSE 200 92.8700 (40.9800)
b. Since Inception
Scheme
Benchmark
BSE 200 9.0200 (15.5400)
1
2
3
4
12


1 Investments:
1.2. Open Positions of derivatives as a % to Net Assets as of 2009-2010 and 2008-2009 is Nil.
1.3. Investments in Associates and Group Companies are as under :

schemes
2010 2009
Shanghai Banking
Corporation Ltd.
1.4. Open position of Securities Borrowed and / or Lent by the Scheme as of the year ended March 31,
2010 is NIL.
1.6. Aggregate Unrealised Gain / Loss as at the end of the Financial year ended and their percentages
to net assets are as under:

2010 2009
Equity Shares
– Appreciation 563,326,418 18.6817% 62,106,058 3.4392%
– Depreciation 23,919,419 0.7932% 215,491,836 11.9330%
1.7. The aggregate value of investments purchased and sold (including matured) during the financial
year 2009-2010 is Rs. 5,435,615,688 and Rs. 5,578,682,825 respectively being 189.38% and
The aggregate value of investments purchased (excluding accretion of discount of Rs. 5,489,967)
and sold (including matured) during the financial year 2008-2009 is Rs. 5,161,259,484 and
as under :

2010 2009
Equities 2,866,880 0.10% – –
Total 2,866,880 0.10% – –
13

entity of HSBC Asset Management (India) Private Limited was paid collection / bank charges amounting to
Rs. 298,444.
to Rs. 998.
Details of amounts paid to associates in terms of Regulation 25 (8) are as follows:
companies
The Hongkong and Associate 2009 - 2010 0.65 2.39 849,881 3.33
Shanghai Banking
Corporation Limited
Securities (India)
Limited

companies
Shanghai Banking
Corporation Limited
associates / related Nature of [Rs. In Crores] transaction of [Rs. ] paid by the
companies
Securities (India)
Limited
Private Limited
14


associates / related Nature of [Rs. In Crores] transaction of [Rs. ] paid by the
parties / group relation the Fund (on accrual Fund
companies basis)
Securities (India)
Limited
Private Limited
March 31, 2010 and March 31, 2009.
2009-2010
Description
Growth 150,646,655.461 12,786,096.898 25,556,593.410 137,876,158.949 1,378,761,588
Dividend 94,404,698.350 9,216,234.324 16,034,814.035 87,586,118.639 875,861,185
2008-2009
Description
Growth 132,777,868.108 18,336,034.648 467,247.295 150,646,655.461 1,506,466,555
Dividend 83,983,985.503 11,249,049.602 828,336.755 94,404,698.350 944,046,984

15

DISCLAIMERS
Statutory Details:
Risk Factors:
AMC does not indicate the future performance of the Scheme(s) of the Mutual Fund. HSBC Tax
Saver Equity Fund (HTSF) is the name of the Scheme and does not in any manner indicate the
quality of the Scheme or its future prospects or returns.
Terms of Issue:
Units of the Scheme(s) are being offered at NAV based prices, subject to the prevailing loads. The Units
purchased under the Scheme shall have a lock in period of three years from the date of allotment of Units.
Accordingly, the Units can be redeemed (i.e. sold back to the Fund) on every Business Day, at the Applicable
NAV (hereinafter defined), on expiry of lock-in period of three years from the date of allotment. The AMC
Exit: Nil.
CRISIL Limited.
16

HSBC India Opportunities Fund
An open-ended flexi-cap equity Scheme
INDIA OPPORTUNITIES FUND.indd 1 24/07/2010 1:10:35 PM

Dear Investor,
Yours sincerely,
Vikramaaditya

SPONSOR
TRUSTEE
Board of Trustees

CUSTODIAN

Price Waterhouse
LEGAL ADVISORS
Bharucha & Partners

BOARD OF TRUSTEES
Mr. Nasser Munjee
Mr. Manu Tandon
Mr. Mehli Mistri
BOARD OF DIRECTORS
Mr. Ayaz Ebrahim
Mr. S. P. Mustafa
Mr. Ashok Jha*

Trustees’ Report

HSBC India Opportunities Fund (HIOF) – an open-ended flexi-cap Equity Scheme
HIOF seeks long term capital growth through investments across all market capitalisations, including small,
mid and large cap stocks. It aims to be predominantly invested in equity and equity related securities.
However, it could move a significant portion of its assets towards fixed income securities if the fund
manager becomes negative on equity markets.
The net assets of HIOF amounted to Rs. 283.80 crores as at March 31, 2010 as compared to Rs. 279.93
net assets were invested in reverse repos / CBLO and 3.15% were invested in debt and money market
instruments as at March 31, 2010.
HIOF underperformed the market in the past 1 year on relatively larger proportion of large caps versus the
benchmark and higher levels of cash in the earlier part of the year. Longer term performance has been in
line with benchmarks.

HSBC India Opportunities Fund – Growth 62.24 6.11 19.69 20.98
BSE 500 96.38 11.75 20.39 20.18


MARKET OVERVIEW
sector spending.
markets.

Trustees’ Report
around the world.
MARKET OUTLOOK

Trustees’ Report
Debt Market Outlook
side inflation.

MANAGEMENT COMPANY
a) Sponsor
Fund.

Trustees’ Report
Board of India.
b) HSBC Mutual Fund





Regulations, 1996.

Trustees’ Report

HSBC India Opportunities Fund 990,245 241 363,145 14
Limited).

are as follows:
IA Dividend on 1 61 62 0 0 0 0 0 0 0 0
Units
IB Interest on 0 0 0 0 0 0 0 0 0 0 0
delayed
payment of
Dividend

Trustees’ Report
IC Redemption 2 57 59 0 0 0 0 0 0 0 0
Proceeds
ID Interest on 0 0 0 0 0 0 0 0 0 0 0
delayed
payment of
Redemption
statement of
account/ Unit
Certificate
Statement of
Account
Annual Report/
Abridged
Summary
between
schemes
switch between
schemes
III C Deviation 0 3 3 0 0 0 0 0 0 0 0
from Scheme
attributes
charges/load
of changes viz.
address, PAN,
bank details,
nomination etc.
IV Others** 10 1621 1631 0 0 0 0 0 0 0 0
TOTAL 13 1846 1859 0 0 0 0 0 0 0 0
Note:

Trustees’ Report
9. ACKNOWLEDGEMENTS
Sd/-
N. P. Gidwani
Chairman
MUMBAI
July 20, 2010

Auditors’ Report

HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC India Opportunities Fund (“The
Scheme”) as at March 31, 2010, the related Revenue Account for the year ended on that date and the
Cash Flow Statement for the year ended on that date which we have signed under reference to this
2. We have conducted our audit in accordance with auditing standards generally accepted in India. Those
with the custodian / others and registrar and transfer agents respectively. An audit also includes
fair view of the state of affairs of HSBC Mutual Fund – HSBC India Opportunities Fund as at March
31, 2010, its net surplus and its cash flows for the year ended on that date.
(iii) The method used to value equity shares awaiting listing as at March 31, 2010 as determined in
good faith by HSBC Asset Management (India) Private Limited under procedures approved by the
Board of Trustees of HSBC Mutual fund are fair and reasonable

Sd/-
Vivek Prasad
Partner
Place : Mumbai
10

Rs. in Lakhs
HSBC INDIA OPPORTUNITIES FUND
As at As at
March 31, 2010 March 31, 2009
LIABILITIES
1 Unit Capital 14,295.84 22,075.58
2.3 Other Reserves 16,377.13 10,872.37
TOTAL 28,925.05 28,493.13
ASSETS
1 Investments
1.1.1 Equity Shares 25,599.08 23,373.85
2 Deposits 1,349.02 2,661.52
3.3 Others 1,381.07 1,425.75
TOTAL 28,925.05 28,493.13
11

Rs. in Lakhs
Current Previous
March 31, 2010 March 31, 2009
1 INCOME
1.1 Dividend 319.36 320.06
1.2 Interest 90.81 367.98
of investments
1.6 Realised Gains / (Losses) on Derivative Transactions (295.25) 1,184.49
(A) 8,805.55 (9,757.87)
2 EXPENSES
2.8 Audit fees 5.00 5.00
(B) 744.02 877.45
FOR THE YEAR (A - B = C) 8,061.53 (10,635.32)
4 Change in Unrealised Depreciation in value
of investments (D) (1,967.69) 1,967.69
THE YEAR [E = (C - D)] 10,029.22 (12,603.01)
the value of investments (F) 6,016.99 (4,812.63)
FOR THE YEAR (E + F = G) 16,046.21 (17,415.64)
Unrealised Appreciation Reserve – 4,812.63
7.2 Less: Balance transfer to Unrealised
Appreciation Reserve 6,016.99 –
7.3 Add / (Less): Equalisation (3,301.93) (2,090.75)
7.4 Transfer from Reserve Fund 3,806.22 –
8 TOTAL 10,533.51 (14,693.76)
9.1 Income Distributed during the year 1,222.51 (0.02)
12


Current Previous
March 31, 2010 March 31, 2009
Open
High
Low
End

End 28,408 27,993
1
Average (AAuM) 33,032 38,254
4. Expense Ratio:
5. Net Income as a percentage of AAuM 3 24.42% -27.80%
7. Total Dividend per unit distributed during

the year (planwise)
Retail
Dividend 1.0000 –
Corporate
Dividend 1.0000 –
13


Current Previous
March 31, 2010 March 31, 2009
8. Returns (%):
a. Last One Year
Scheme
Benchmark
BSE 500 96.3800 (42.7700)
b. Since Inception
Scheme
Benchmark
BSE 500 20.1800 9.1500
1
2
3
period.
4
14


1 Investments:
1.2. Open Positions of derivatives as of March 31, 2010 is Rs. 193,993,801 and is 6.83% to the net
assets. Open Positions of derivatives as of March 31, 2009 is Rs. 61,203,450 and is 2.19% to the
net assets.
(Rupees)
schemes
2010 2009
Shanghai Banking
Corporation Ltd.
1.4. Open position of Securities Borrowed and / or Lent by the scheme as of financial years ended 2010
and 2009 are NIL.
1.5. The NPAs as on March 31, 2010 and March 31, 2009 are NIL.
1.6. Aggregate Unrealised Gain / Loss as at the end of the Financial years March 31, 2010 and March
31, 2009 are as under:

2010 2009
Equity Shares
– Appreciation 619,460,514 21.8061% 216,543,449 7.7357%
– Depreciation 20,612,129 0.7256% 413,312,313 14.7649%
Equity Futures
– Appreciation 4,487,301 0.1580% 2,252,115 0.0805%
– Depreciation 424,303 0.0149% 1,040,116 0.0372%
1.7. The aggregate value of investments purchased and sold during the financial year is
Rs. 2,446,418,500 and Rs. 3,886,879,848 respectively being 74.06% and 117.67% of the
average daily net assets.
The aggregate value of investments purchased and sold during the financial year 2008 - 2009
(excluding accretion of discount of Rs. 2,875,943) is Rs. 4,802,419,100 and Rs. 5,302,898,939
respectively being 125.54% and 138.62% of the average daily net assets.
Aggregate Value of Equity, Debt & Money Market Instruments and percentage to net assets are as under:
Security Category Amount Percentage to Amount Percentage to

2010 2009
Equities 1,643,930.00 0.06% – –
Money Market Instruments – – – –
15

Regulations, 1996 as amended for the year ended March 31, 2010 is as under:
entity of HSBC Asset Management (India) Private Limited was paid collection / bank charges Rs. 25,830
and Clearing member charges on derivative transactions amounting to Rs. 561,071.
to Rs. 23,153 and Clearing member charges on derivative transactions Rs. 445,071.
Commission paid to associates / related parties / group companies of Sponsor / AMC

Name of associate / Nature of Period Business % of Total Commission % of Total
related parties / Association / Covered Given Business paid commission
group companies of Nature of [Rs. in Crores] received by [Rs.] paid by the
Sponsor / AMC Relation the Fund Fund
Shanghai Banking
Corporation Limited
Securities (India)
Limited
Name of associate / Nature of Period Business % of Total Commission % of Total

related parties / Association / Covered Given Business paid commission
group companies of Nature of [Rs. in Crores] received by [Rs.] paid by the
Sponsor / AMC Relation the Fund (on accrual Fund
basis)
Shanghai Banking
Corporation Limited
Brokerage paid to associates / related parties / group companies of Sponsor / AMC

Name of Associate / Nature of Period Value of % of total Brokerage % of total
related parties / Association / Covered Transactions value of paid brokerage
group companies of Nature of [Rs. in Crores] transaction of [Rs.] paid by the
Sponsor / AMC relation the Fund Fund
Private Limited
Name of Associate / Nature of Period Value of % of total Brokerage % of total

related parties / Association / Covered Transactions value of paid brokerage
group companies of Nature of [Rs. in Crores] transaction of [Rs.] paid by the
Sponsor / AMC relation the Fund (on accrual Fund
basis)
Securities (India)
Limited
Private Limited
16

3 No investors held more than 25% of the Net Assets of the scheme for 2009 and 2010.
2009 - 2010
Description
Growth 53,478,209.207 5,215,347.572 23,715,936.535 34,977,620.244 349,776,202
Dividend 167,277,543.980 11,264,297.076 70,561,101.060 107,980,739.996 1,079,807,401
2008-2009
Description
Growth 61,844,387.233 8,005,235.991 16,371,414.017 53,478,209.207 534,782,092
Dividend 200,642,987.346 17,255,087.456 50,620,530.822 167,277,543.980 1,672,775,441

8 Other income represents exit load collected in excess of 1% of redemption proceeds credited to the
Scheme and provision for expenses written back as no longer required.
17

DISCLAIMERS
Statutory Details:
Risk Factors:
AMC does not indicate the future performance of the Scheme(s) of the Mutual Fund. HSBC India
Opportunities Fund (HIOF) is the name of the Scheme and does not in any manner indicate the
Terms of Issue:

18

CRISIL Limited.
19

HSBC Midcap Equity Fund
An open-ended diversified equity Scheme
Midcap Equity Fund.indd 1 24/07/2010 1:09:13 PM

Dear Investor,
Yours sincerely,
Vikramaaditya

SPONSOR
TRUSTEE
Board of Trustees

CUSTODIAN

Price Waterhouse
LEGAL ADVISORS
Bharucha & Partners

BOARD OF TRUSTEES
Mr. Nasser Munjee
Mr. Manu Tandon
Mr. Mehli Mistri
BOARD OF DIRECTORS
Mr. Ayaz Ebrahim
Mr. S. P. Mustafa
Mr. Ashok Jha*

Trustees’ Report

HSBC Midcap Equity Fund (HMEF) – an open-ended diversified Equity Scheme
HMEF seeks to generate long term capital growth from an actively managed portfolio of equity and equity
related securities primarily being midcap stocks. However, it could move a portion of its assets towards
fixed income securities if the fund manager becomes negative on the Indian equity markets.
The net assets of HMEF amounted to Rs. 177.24 crores as at March 31, 2010 as compared to Rs. 93.67
net assets were invested in reverse repos / CBLO and 2.61% were invested in debt and money market
instruments as at March 31, 2010.
HMEF underperformed the benchmark in the past 1 year on relatively defensive positioning in the earlier
part of the year. This was subsequently changed in the second half of the year.
Date of Inception: 19 May, 2005 Compounded Annualized Returns (%)

HSBC Midcap Equity Fund – Growth 116.01 6.29 17.40
BSE MID CAP 130.23 8.11 16.42


MARKET OVERVIEW
sector spending.
markets.

Trustees’ Report
around the world.
MARKET OUTLOOK

Trustees’ Report
Debt Market Outlook
side inflation.

MANAGEMENT COMPANY
a) Sponsor
Board of India.

Trustees’ Report
b) HSBC Mutual Fund





Regulations, 1996.

HSBC Midcap Equity Fund 366,033 263 584,647 17

Trustees’ Report
Limited).

are as follows:
IA Dividend on 1 61 62 0 0 0 0 0 0 0 0
Units
IB Interest on 0 0 0 0 0 0 0 0 0 0 0
delayed
payment of
Dividend
IC Redemption 2 57 59 0 0 0 0 0 0 0 0
Proceeds
ID Interest on 0 0 0 0 0 0 0 0 0 0 0
delayed
payment of
Redemption
statement of
account/ Unit
Certificate
Statement of
Account
Annual Report/
Abridged
Summary
between
schemes

Trustees’ Report
switch between
schemes
III C Deviation 0 3 3 0 0 0 0 0 0 0 0
from Scheme
attributes
charges/load
of changes viz.
address, PAN,
bank details,
nomination etc.
IV Others** 10 1621 1631 0 0 0 0 0 0 0 0
TOTAL 13 1846 1859 0 0 0 0 0 0 0 0
Note:
9. ACKNOWLEDGEMENTS
Sd/-
N. P. Gidwani
Chairman
MUMBAI
July 20, 2010

Auditors’ Report

HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Midcap Equity Fund (“The Scheme”)
Flow Statement for the year ended on that date which we have signed under reference to this report.
fair view of the state of affairs of HSBC Mutual Fund – HSBC Midcap Equity Fund as at March 31,
(iii) The method used to value equity shares awaiting listing and unlisted equity shares in good faith
as at March 31, 2010 as determined by HSBC Asset Management (India) Private Limited under
procedures approved by the Board of Trustees of HSBC Mutual fund are fair and reasonable.

Sd/-
Vivek Prasad
Partner
Place : Mumbai

Rs. in Lakhs
HSBC MIDCAP EQUITY FUND
As at As at
March 31, 2010 March 31, 2009
LIABILITIES
1 Unit Capital 10,725.81 11,837.90
2.2 Unrealised Appreciation Reserve 686.20 –
2.3 Other Reserves 10,649.36 1,565.75
TOTAL 17,952.98 9,522.67
ASSETS
1 Investments
1.1.1 Equity Shares 16,174.34 7,579.66
2 Deposits 432.13 932.13
3.3 Others 644.31 624.91
TOTAL 17,952.98 9,522.67
10

Rs. in Lakhs
Current Previous
March 31, 2010 March 31, 2009
1 INCOME
1.1 Dividend 184.67 170.95
1.2 Interest 49.16 171.66
investments
1.6 Realised Gains / (Losses) on Derivative Transactions 1,446.46 100.94
(A) 7,422.91 (9,207.03)
2 EXPENSES
2.8 Audit fees 1.00 3.00
(B) 367.60 364.95
FOR THE YEAR (A - B = C) 7,055.31 (9,571.98)
FOR THE YEAR [E = (C - D)] 9,611.82 (10,602.12)
the value of investments (F) 686.20 –
FOR THE YEAR (E + F = G) 10,298.02 (10,602.12)
Unrealised Appreciation Reserve 686.20 –
7.3 Add / (Less): Equalisation 129.19 (563.92)
7.4 Transfer from Reserve Fund 860.36 –
8 TOTAL 10,601.37 (11,166.04)
9.1 Income Distributed during the year 657.40 –
11


Current Previous
March 31, 2010 March 31, 2009
Open
Growth Option 10.1084 20.6339
Dividend Option 6.6851 13.6463
High
Low
End
End 17,724 9,367
Average (AAuM)1 15,277 15,190
4. Expense Ratio:
Growth Option 2.41% 2.15%
Dividend Option 2.41% 2.15%
Growth Option 1.16% 1.16%
Dividend Option 1.16% 1.16%
Retail
Dividend 1.00 –
Corporate
Dividend 1.00 –
8. Returns (%):
a. Last One Year
Scheme
Growth Option 116.0144 (51.0107)
Dividend Option 116.0027 (51.0116)
Benchmark
BSE MID CAP 130.2300 (54.0100)
b. Since Inception
Scheme
Benchmark
BSE MID CAP 16.4200 (2.4000)
1
2
3
4
12


1 Investments:
benefit of the Scheme’s Unitholders.
1.2. Open Positions of derivatives amount to Rs. 77,544,688 and is 4.38% to Net Assets as at 31
March, 2010. Open Positions of derivatives amount to Rs. 47,250,950 and is 5.04% to Net Assets
as at 31 March, 2009.

schemes
2010 2009
Shanghai Banking
Corporation Limited
1.4. Open position of Securities Borrowed and / or Lent by the Scheme as of financial years ended 2010
and 2009 are NIL.
31, 2009 are as under :

2010 2009
Equity Shares
– Appreciation 152,588,178 8.6090% 33,463,640 3.5725%
– Depreciation 86,632,744 4.8878% 288,443,961 30.7935%
Equity Futures
– Appreciation 3,298,026 0.1861% 575,550 0.0614%
– Depreciation 633,589 0.0357% 1,246,651 0.1331%
1.7. The aggregate value of investments purchased and sold (including matured) during the year
2009-2010 is Rs. 3,222,984,582 and Rs. 3,250,544,036 respectively being 210.97% and
The aggregate value of investments purchased (excluding accretion of discount of Rs.
1,777,294) and sold (including matured) during the year 2008-2009 is Rs. 2,819,476,499 and
Aggregate Value of Equity, Debt & Money Market Instruments and percentage to net assets is as
under:

2010 2009
Equities 8,160,759 0.4604% – –
Total 8,160,759 0.4604% – –
13

to Rs. 30,945 and clearing member charges on derivative transactions amounting to Rs. 552,472.
to Rs. 23,153 and clearing member charges on derivative transactions Rs. 445,071.

companies
Shanghai Banking
Corporation Limited
Securities (India)
Limited

companies basis)
Shanghai Banking
Corporation Limited

companies
Securities (India)
Limited
Private Limited
14

Name of Sponsor / Nature of Period Value of % of Total Brokerage % of Total

AMC and its Association / Covered Transactions Value of paid brokerage
associates / related Nature of [Rs. in Crores] Transactions [Rs.] paid by the
companies basis)
Securities (India)
Limited
Private Limited
March 31, 2010 and March 31, 2009.
2009-2010
Description
Growth 42,452,067.060 13,794,502.150 16,515,931.147 39,730,638.063 397,306,381
Dividend 75,926,965.375 17,092,673.068 25,492,181.250 67,527,457.193 675,274,572
2008-2009
Description
Growth 48,009,622.007 7,377,934.625 12,935,489.572 42,452,067.060 424,520,671
Dividend 100,054,854.569 6,038,463.722 30,166,352.916 75,926,965.375 759,269,654

8 Other income includes exit load collected in excess of 1% of redemption proceeds credited to the
Scheme and provision for expenses no longer required written back.
15

DISCLAIMERS
Statutory Details:
Risk Factors:
Midcap Equity Fund (HMEF) is the name of the Scheme and does not in any manner indicate the
Terms of Issue:
CRISIL Limited.
16

HSBC Unique Opportunities Fund
An open-ended equity Scheme*
HUOF was launched as a close-ended equity scheme with automatic conversion into open-ended equity
scheme at the end of three years from the date of allotment of units. In accordance with the terms of the
Offer Document of HUOF / Combined Scheme Information Document, the scheme was converted from a
close-ended equity scheme into open-ended equity scheme with effect from 22 March 2010.
Unique Opportunities Fund.indd 1 26/07/2010 4:12:29 PM

Dear Investor,
Yours sincerely,
Vikramaaditya

SPONSOR
TRUSTEE
Board of Trustees

CUSTODIAN

Price Waterhouse
LEGAL ADVISORS
Bharucha & Partners

BOARD OF TRUSTEES
Mr. Nasser Munjee
Mr. Manu Tandon
Mr. Mehli Mistri
BOARD OF DIRECTORS
Mr. Ayaz Ebrahim
Mr. S. P. Mustafa
Mr. Ashok Jha*

Trustees’ Report

HSBC Unique Opportunities Fund (HUOF) - an open-ended Equity Scheme
(HUOF was launched as a close-ended equity scheme with automatic conversion into open-ended equity
scheme at the end of three years from the date of allotment of units. In accordance with the terms of the
Offer Document of HUOF / Combined Scheme Information Document, the scheme was converted from a
close-ended equity scheme into open-ended equity scheme with effect from 22 March, 2010.)
HUOF seeks to provide long-term capital growth from a diversified portfolio of equity and equity related
instruments. The focus would be to invest in stocks of companies facing “out-of-ordinary” conditions.
The net assets of HUOF amounted to Rs. 214.98 crores as at March 31, 2010 compared to Rs. 219.50
net assets were invested in reverse repos / CBLO and 0.30% was invested in net current assets as at March
31, 2010.
HUOF underperformed its benchmark over the past 1 year on a relatively defensive posturing in the earlier
part of the year.

HSBC Unique Opportunities Fund – Growth 79.92 (0.02) 0.65
BSE 200 92.87 12.19 12.50


MARKET OVERVIEW
sector spending.
markets.

Trustees’ Report
around the world.
MARKET OUTLOOK

Trustees’ Report

Debt Market Outlook
side inflation.

MANAGEMENT COMPANY
a) Sponsor
Fund.

Trustees’ Report
Board of India.
b) HSBC Mutual Fund




The investment objective of the Scheme has been provided above under the heading “Scheme
Performance, Future Outlook and Operation of the Scheme” (refer Section 1).

Regulations, 1996.

HSBC Unique Opportunities Fund – – 178,696 5

Trustees’ Report
Limited).

are as follows:
IA Dividend on 1 61 62 0 0 0 0 0 0 0 0
Units
IB Interest on 0 0 0 0 0 0 0 0 0 0 0
delayed
payment of
Dividend
IC Redemption 2 57 59 0 0 0 0 0 0 0 0
Proceeds
ID Interest on 0 0 0 0 0 0 0 0 0 0 0
delayed
payment of
Redemption

Trustees’ Report

statement of
account/ Unit
Certificate
Statement of
Account
Annual Report/
Abridged
Summary
between
schemes
switch between
schemes
III C Deviation 0 3 3 0 0 0 0 0 0 0 0
from Scheme
attributes
charges/load
of changes viz.
address, PAN,
bank details,
nomination etc.
IV Others** 10 1621 1631 0 0 0 0 0 0 0 0
TOTAL 13 1846 1859 0 0 0 0 0 0 0 0
Note:

Trustees’ Report
9. ACKNOWLEDGEMENTS
Sd/-
N. P. Gidwani
Chairman
MUMBAI
July 20, 2010

Auditors’ Report

HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Unique Opportunities Fund (The
“Scheme”) as at March 31, 2010, the related Revenue Account for the year ended on that date and
the Cash Flow Statement for the year ended on that date which we have signed under reference to this
assessing the accounting principles used and significant estimates made by the Management, as
well as evaluating the overall financial statements presentation. We believe that our audit provides a
reasonable basis for our opinion.
3. We have obtained all the information and explanations which, to the best of our knowledge and belief,
were necessary for the purposes of our audit. The Balance Sheet, Revenue Account and Cash Flow
4. In our opinion and to the best of our information and according to the explanations given to us ;
Regulations, 1996 and the amendments thereto, as applicable, and also give respectively a true
and fair view of the state of affairs of HSBC Mutual Fund – HSBC Unique Opportunities Fund as at
March 31, 2010, its net surplus and its cash flows for the year ended on that date.
(ii) The Balance Sheet as at March 31, 2010, and Revenue Account for the year ended on that date,
together with the notes thereon, have been prepared in all material respects in accordance with the
Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable.

Sd/-
Vivek Prasad
Partner
Place : Mumbai
10

Rs. in Lakhs
HSBC UNIQUE OPPORTUNITIES FUND
As at As at
March 31, 2010 March 31, 2009
LIABILITIES
1 Unit Capital 21,084.45 38,724.49
2.3 Other Reserves (2,485.72) (14,444.07)
4.2 Other Current Liabilities & Provisions 849.67 1,065.63
TOTAL 22,294.47 23,015.64
ASSETS
1 Investments
1.1.1 Equity Shares 20,077.60 17,622.29
1.3 Unlisted Securities:
2 Deposits 900.00 1,650.00
3.3 Others 836.55 1,111.71
4 Deferred Revenue Expenditure – 502.55
TOTAL 22,294.47 23,015.64
11

Rs. in Lakhs
Current Previous
March 31, 2010 March 31, 2009
1 INCOME
1.1 Dividend 291.56 384.14
1.2 Interest 76.98 385.31
of investments
1.6 Realised Gains / (Losses) on Derivative Transactions – (575.58)
(A) 9,336.89 (24,230.92)
2 EXPENSES
2.8 Audit fees 6.00 0.75
2.10 Expenses to be Reimbursed by the Investment Manager – (6.60)
(B) 1,044.50 1,340.26
FOR THE YEAR / PERIOD (A - B = C) 8,292.39 (25,571.18)
in value of investments (D) (3,084.05) (3,561.30)
THE YEAR / PERIOD [E = (C - D)] 11,376.44 (22,009.88)
6 Change in unrealised appreciation in the
value of investments (F) 4,417.13 (4.72)
7 NET SURPLUS / (DEFICIT) FOR
THE YEAR / PERIOD (E + F = G) 15,793.57 (22,014.60)
Unrealised Appreciation Reserve – 4.72
7.2 Less: Balance transfer to Unrealised
Appreciation Reserve 4,417.13 –
7.3 Add / (Less): Equalisation 581.91 –
8 TOTAL 11,958.35 (22,009.88)
9.1 Income Distributed during the year / period – –
9.2 Tax on income distributed during the year / period – –
12


Current Previous
March 31, 2010 March 31, 2009
Open
High
Low
End

End 21,510 21,950
1
Average (AAuM) 27,706 34,924
4. Expense Ratio:
5. Net Income as a percentage of AAuM 3 29.93% -73.22%

the year / period (planwise)
Retail
Dividend – –
Corporate
Dividend – –
13


Current Previous
March 31, 2010 March 31, 2009
8. Returns (%):
a. Last One Year
Scheme
Benchmark
BSE 200 92.8700 (40.9800)
b. Since Inception
Scheme
Benchmark
BSE 200 12.5000 (13.7400)
1
2
3
period.
4
14


1 Investments:
1.1. It is confirmed that Investments of the Schemes are registered in the name of the Trustees for the
1.2. Open Positions of derivatives amount to Rs. 175,617,653 and is 8.16% to Net Assets as at March
31, 2010. Open Positions of derivatives amount to Rs. 10,647,000 and is 0.49% to Net Assets as
at March 31, 2009.
1.3. Investments in Associates and Group Companies :
(Rupees)
schemes
2010 2009
Shanghai Banking
Corporation Limited
1.4. Open position of Securities Borrowed and / or Lent by the scheme as of the year ended March 31,
2010 is NIL.
1.6. Aggregate Unrealised Gain / Loss as at the end of the Financial year ended and their percentages
to net assets are as under:

2010 2009
Equity Shares
– Appreciation 476,973,223 22.1704% 125,878,670 5.7348%
– Depreciation 34,850,114 1.6201% 435,753,845 19.8521%
Equity Futures
– Appreciation 636,898 0.0296% 410,269 0.0187%
– Depreciation 2,106,828 0.0979% – –
1.7. The aggregate value of investments securities purchased and sold (including matured) during the
financial period is Rs. 3,386,000,287 and Rs. 4,667,516,230 respectively being 122.21% and
The aggregate value of investments securities purchased and sold (including matured) during
the financial year end March 31, 2009 (excluding accretion of discount of Rs. 4,156,301) is
Aggregate Value of Equity, Debt & Money Market Instruments and percentage to net assets is Nil.
entity of HSBC Asset Management (India) Private Limited was paid collection/bank charges amounting
to Rs. 122,423 and Clearing member charges on derivative transactions amounting to Rs. 759,468.
15

entity of HSBC Asset Management (India) Private Limited was paid Clearing member charges on
derivative transactions amounting to Rs. 565,239.

companies
The Hongkong and Associate 2009 – 2010 2.12 18.54 4,502,804 21.67
Shanghai Banking
Corporation Limited
HSBC InvestDirect Associate 2009 – 2010 0.01 0.09 13,668 0.07
Securities (India)
Limited

companies
The Hongkong and Associate 2008 – 2009 0.92 19.66 6,184,249 8.19
Shanghai Banking
Corporation Limited

associates / related Nature of [Rs. in Crores] transaction of [Rs.] paid by the
companies
HSBC Securities and Sponsor 2009 – 2010 68.98 4.10 472,954 2.55
Private Limited

associates / related Nature of [Rs. in Crores] transaction of [Rs.] paid by the
companies
HSBC InvestDirect Associate 2008 – 2009 4.86 0.28 96,405 0.42
Securities (India)
Limited
HSBC Securities and Sponsor 2008 – 2009 47.47 2.76 460,976 2.00
Private Limited
16

March 31, 2010 and March 31, 2009.
2009 – 2010
Description
Growth 146,326,985.344 2,469,971.529 49,265,702.486 99,531,254.387 995,312,544
Dividend 240,917,869.036 9,473,289.843 139,077,906.666 111,313,252.213 1,113,132,523
2008 – 2009
Description
Growth 167,242,434.576 2,949,276.671 23,864,725.903 146,326,985.344 1,463,269,853
Dividend 315,868,063.747 5,267,633.300 80,217,828.011 240,917,869.036 2,409,178,690

17

DISCLAIMERS
Statutory Details:
Risk Factors:
Unique Opportunities Fund (HUOF) is the name of the Scheme and does not in any manner
indicate the quality of the Scheme or its future prospects or returns.
Terms of Issue:
Load Structure (includes SIP/STP/SIP Plus, where applicable):

18

CRISIL Limited.
19

HSBC Small Cap Fund
A close-ended equity Scheme*
Small Cap Fund.indd 1 24/07/2010 1:11:52 PM

Dear Investor,
Yours sincerely,
Vikramaaditya

SPONSOR
TRUSTEE
Board of Trustees

CUSTODIAN

Price Waterhouse
LEGAL ADVISORS
Bharucha & Partners

BOARD OF TRUSTEES
Mr. Nasser Munjee
Mr. Manu Tandon
Mr. Mehli Mistri
BOARD OF DIRECTORS
Mr. Ayaz Ebrahim
Mr. S. P. Mustafa
Mr. Ashok Jha*

Trustees’ Report

HSBC Small Cap Fund (HSCF) – a close ended equity Scheme with automatic conversion
into open–ended Equity Scheme at the end of three years from the date of allotment of
units.
HSCF seeks to provide long–term capital appreciation primarily from a diversified portfolio of equity and
equity related instruments of small cap companies.
The net assets of HSCF amounted to Rs. 60.91 crores as at March 31, 2010. Around 99.35% of the net
assets were invested in equities, 2.86% of the net assets were invested in reverse repos / CBLO and (2.21%)
were invested in net current assets as at March 31, 2010.
HSCF underperformed its benchmarks on a relatively defensive posturing in the earlier part of the year.

HSBC Small Cap Fund – Growth 123.83 4.05
BSE Small Cap 161.73 10.47


MARKET OVERVIEW
sector spending.
markets.

Trustees’ Report
around the world.
MARKET OUTLOOK

Trustees’ Report
Debt Market Outlook
side inflation.

MANAGEMENT COMPANY
a) Sponsor
Fund.

Trustees’ Report
Board of India.
b) HSBC Mutual Fund





Regulations, 1996.

Nil.

Trustees’ Report
Limited).

are as follows:
IA Dividend on 1 61 62 0 0 0 0 0 0 0 0
Units
IB Interest on 0 0 0 0 0 0 0 0 0 0 0
delayed
payment of
Dividend
IC Redemption 2 57 59 0 0 0 0 0 0 0 0
Proceeds
ID Interest on 0 0 0 0 0 0 0 0 0 0 0
delayed
payment of
Redemption
statement of
account/ Unit
Certificate

Trustees’ Report
Statement of
Account
Annual Report/
Abridged
Summary
between
schemes
switch between
schemes
III C Deviation 0 3 3 0 0 0 0 0 0 0 0
from Scheme
attributes
charges/load
of changes viz.
address, PAN,
bank details,
nomination etc.
IV Others** 10 1621 1631 0 0 0 0 0 0 0 0
TOTAL 13 1846 1859 0 0 0 0 0 0 0 0
Note:

Trustees’ Report
9. ACKNOWLEDGEMENTS
Sd/-
N. P. Gidwani
Chairman
MUMBAI
July 20, 2010

Auditors’ Report

HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Small Cap Fund (“The Scheme”) as
at March 31, 2010, and the related Revenue Account for the year ended on that date both of which
affairs of HSBC Mutual Fund – HSBC Small Cap Fund as at March 31, 2010 and its net surplus for
the year ended on that date.

Sd/-
Vivek Prasad
Partner
Place : Mumbai
10

Rs. in Lakhs
HSBC SMALL CAP FUND
As at As at
March 31, 2010 March 31, 2009
LIABILITIES
1 Unit Capital 5,621.17 7,333.95
2.2 Unrealised Appreciation Reserve 901.38 –
2.3 Other Reserves (910.97) (4,183.98)
TOTAL 6,456.17 3,734.74
ASSETS
1 Investments
1.1.1 Equity Shares 6,048.19 2,812.09
2 Deposits – 410.00
3.3 Others 111.36 49.35
TOTAL 6,456.17 3,734.74
11

Rs. in Lakhs
HSBC SMALL CAP FUND
Current Previous
March 31, 2010 March 31, 2009
1 INCOME
1.1 Dividend 98.38 95.70
1.2 Interest 10.42 92.65
investments
1.6 Realised Gains / (Losses) on Derivative Transactions 88.97 6.92
(A) 2,236.86 (2,590.31)
2 EXPENSES
2.8 Audit fees 1.00 0.50
(B) 280.12 311.72
FOR THE YEAR (A – B = C) 1,956.74 (2,902.03)
FOR THE YEAR [E = (C – D)] 3,273.01 (4,218.30)
the value of investments (F) 901.38 (78.87)
FOR THE YEAR (E + F = G) 4,174.39 (4,297.17)
Unrealised Appreciation Reserve – 78.87
Unrealised Appreciation Reserve 901.38 –
7.3 Add / (Less): Equalisation – –
8 TOTAL 3,273.01 (4,218.30)
9.1 Income Distributed during the year – –
12

HSBC SMALL CAP FUND

Current Previous
March 31, 2010 March 31, 2009
Open
High
Low
End

End 6,091 3,556
1
Average (AAuM) 5,821 6,119
4. Expense Ratio:
a. Total Expense as % of AAuM (Planwise)
b. Management Fee as % of AAuM (Planwise)
during the year (Planwise)
Retail
Dividend – –
Corporate
Dividend – –
13

HSBC SMALL CAP FUND

Current Previous
March 31, 2010 March 31, 2009
8. Returns (%):
a. Last One Year
Scheme
Benchmark
BSE Small Cap 161.7300 (58.6000)
b. Since Inception
Scheme
Benchnmark
BSE Small Cap 10.4700 (52.6100)
1
2
3
4
14

HSBC SMALL CAP FUND

1 Investments:
benefit of the scheme’s unitholders.
1.2. Open Positions of derivatives as of March 31, 2010 and March 31, 2009 is Nil.

schemes
2010 2009
Shanghai Banking
Corporation Ltd.
1.4. Open position of Securities Borrowed and / or Lent by the Scheme as of the year ended 31 March,
2010 is NIL.
1.6. Aggregate Unrealised Gain / Loss as at the end of the Financial year and their percentages to net
assets are as under:

2010 2009
Equity Shares
– Appreciation 116,064,144 19.0561% 11,913,805 3.3506%
– Depreciation 25,926,611 4.2568% 143,541,167 40.3690%
1.7. The aggregate value of investments purchased and sold during the financial year 2009-10 is
Rs. 816,768,026 and Rs. 917,819,629 respectively being 140.31% and 157.66% of the average
daily net assets.
The aggregate value of investments purchased and sold during the financial year 2008 – 2009 is
Rs. 1,000,285,806 and Rs. 458,524,246 respectively being 163.46% and 74.93% of the average
daily net assets.
as under :

2010 2009
Equities 312,790 0.05% – –
Total 312,790 0.05% – –
2 Disclosure Under Regulation 25(8) of the Securities And Exchange Board of India (Mutual Funds)
During the year, The Hongkong & Shanghai Banking Corporation Limited, an associate entity of HSBC
Asset Management (India) Private Limited was paid collection / bank charges amounting to Rs. 42,037
and clearing member charges on derivative transactions amounting to Rs. 63,638.
15

Rs. 2,001, and clearing member charges on derivative transactions Rs. 18,271.

companies
Shanghai Banking
Corporation Limited
HSBC InvestDirect Associate 2009 - 2010 – – 1,462 0.04
Securities (India)
Limited

companies basis)
The Hongkong and Associate 2008 - 2009 – – 298,873 2.39
Shanghai Banking
Corporation Limited
companies
Securities (India)
Limited
Private Limited

parties / group relation of the Fund (on accrual Fund
companies basis)
Securities (India)
Limited
Private Limited
16

March 31, 2010 and March 31, 2009.
4 Unit Capital movement during the years ended March 31, 2010 and March 31, 2009:
2009–2010
Description
Growth 44,079,840.395 12,466,410.552 18,032,765.900 38,513,485.047 385,134,850
Dividend 29,259,696.530 1,509,540.509 13,070,992.765 17,698,244.274 176,982,442
2008–2009
Description
Growth 48,849,646.818 53,550.878 4,823,357.301 44,079,840.395 440,798,404
Dividend 35,991,812.396 351,845.309 7,083,961.175 29,259,696.530 292,596,965

the Scheme.
17

DISCLAIMERS
Statutory Details:
Risk Factors:
AMC does not indicate the future performance of the Scheme(s) of the Mutual Fund. HSBC Small
Cap Fund (HSCF) is the name of the Scheme and does not in any manner indicate the quality of
the Scheme or its future prospects or returns.
Terms of Issue:

During close ended period:
Exit # : If the investments are redeemed / switched out* within: 1 year - 2%; 2 years - 1.5% and 3 years - 1%.
# Balance proportionate unamortized NFO expenses to be recovered in case of exit within close-ended
period.
Upon conversion into an open ended scheme:

Exit – Nil.
18


CRISIL Limited.
19

HSBC MIP*
*An open-ended fund. Monthly income is not assured and is subject to the
availability of distributable surplus.
MIP.indd 1 26/07/2010 5:07:32 PM

Dear Investor,
Yours sincerely,
Vikramaaditya
MIP.indd 3 26/07/2010 5:07:34 PM

SPONSOR
TRUSTEE
Board of Trustees

CUSTODIAN

Price Waterhouse
LEGAL ADVISORS
Bharucha & Partners

BOARD OF TRUSTEES
Mr. Nasser Munjee
Mr. Manu Tandon
Mr. Mehli Mistri
BOARD OF DIRECTORS
Mr. Ayaz Ebrahim
Mr. S. P. Mustafa
Mr. Ashok Jha*
MIP.indd 4 26/07/2010 5:07:34 PM

Trustees’ Report

HSBC MIP (HMIP) – an open-ended Fund
(Monthly income is not assured and is subject to availability of distributable surplus.)
HMIP an open-ended fund seeks to generate reasonable returns through investments in Debt and Money
Market Instruments. The secondary objective of the Scheme is to invest in equity and equity related
instruments to seek capital appreciation. The Scheme offers two Plans: Regular Plan and Savings Plan. The
Regular Plan can have up to 15 per cent of the corpus invested in equities while the Savings Plan can have
up to 25 per cent invested in equities.
The net assets of HMIP - Regular Plan (HMIP – R) amounted to Rs. 219.32 crores as at March 31, 2010
as compared to Rs. 57.26 crores as at March 31, 2009. Around 87.37% in debt and money market
instruments & 12.63% of the net assets were invested in equities as at March 31, 2010.
The net assets of HMIP - Savings Plan (HMIP – S) amounted to Rs. 358.31 crores as at March 31, 2010
as compared to Rs. 103.38 crores as at March 31, 2009. Around 79.44% in debt and money market
instruments & 20.56% of the net assets were invested in equities as at March 31, 2010.
The performance of HMIP – R and HMIP – S is benchmarked against CRISIL MIP Blended Index. Both the
Plans had higher equity allocation towards mid caps which has led to outperformance vis-a-vis the index
over the said period.
HMIP – Regular Plan

HSBC MIP - Regular Plan – Growth 15.23 10.02 9.21 8.38
CRISIL MIP Blended Index 14.27 8.48 8.42 7.39

HMIP – Savings Plan

HSBC MIP - Savings Plan – Growth 22.38 11.93 11.51 10.51
CRISIL MIP Blended Index 14.27 8.48 8.42 7.39


MARKET OVERVIEW
MIP.indd 5 26/07/2010 5:07:34 PM

Trustees’ Report
sector spending.
markets.
around the world.
MARKET OUTLOOK
MIP.indd 6 26/07/2010 5:07:34 PM

Trustees’ Report
Debt Market Outlook
side inflation.
MIP.indd 7 26/07/2010 5:07:34 PM

Trustees’ Report

MANAGEMENT COMPANY
a) Sponsor
Fund.
Board of India.
b) HSBC Mutual Fund



MIP.indd 8 26/07/2010 5:07:34 PM

Trustees’ Report


Regulations, 1996.

HSBC MIP - Regular Plan 157,299 246 58,400 3
HSBC MIP – Savings Plan 352,321 318 10,000 1
Limited).

are as follows:
MIP.indd 9 26/07/2010 5:07:34 PM

Trustees’ Report

IA Dividend on 1 61 62 0 0 0 0 0 0 0 0
Units
IB Interest on 0 0 0 0 0 0 0 0 0 0 0
delayed
payment of
Dividend
IC Redemption 2 57 59 0 0 0 0 0 0 0 0
Proceeds
ID Interest on 0 0 0 0 0 0 0 0 0 0 0
delayed
payment of
Redemption
statement of
account/ Unit
Certificate
Statement of
Account
Annual Report/
Abridged
Summary
between
schemes
switch between
schemes
III C Deviation 0 3 3 0 0 0 0 0 0 0 0
from Scheme
attributes
charges/load
of changes viz.
address, PAN,
bank details,
nomination etc.
IV Others** 10 1621 1631 0 0 0 0 0 0 0 0
TOTAL 13 1846 1859 0 0 0 0 0 0 0 0
Note:
MIP.indd 10 26/07/2010 5:07:34 PM

Trustees’ Report
9. ACKNOWLEDGEMENTS
Sd/-
N. P. Gidwani
Chairman
MUMBAI
July 20, 2010
MIP.indd 11 26/07/2010 5:07:34 PM

Auditors’ Report

HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC MIP (“The Scheme”) as at March 31,
2010 and the related Revenue Account for the year ended on that date, both of which we have signed
under reference to this report. These financial statements are the responsibility of the Board of Trustees
of HSBC Mutual Fund and the Management of HSBC Asset Management (India) Private Limited (the
“Management”). Our responsibility is to express an opinion on these financial statements based on our
audit.
amendments thereto, as applicable, and also give respectively, a true and fair view of the state
of affairs of HSBC Mutual Fund – HSBC MIP as at March 31, 2010 and its net surplus for the year
ended on that date.
(iii) The methods used to value non-traded / thinly traded / equity securities awaiting listing as at March
31, 2010, as determined by HSBC Asset Management (India) Private Limited under procedures
approved by the Board of Trustees of HSBC Mutual Fund in accordance with the guidelines for
valuation of securities for mutual funds issued by the Securities and Exchange Board of India are
fair and reasonable.

Sd/-
Vivek Prasad
Partner
Place : Mumbai
10
MIP.indd 12 26/07/2010 5:07:34 PM

Rs. in Lakhs
HSBC MIP - REGULAR PLAN
As at As at
March 31, 2010 March 31, 2009
LIABILITIES
1 Unit Capital 17,072.93 4,658.77
2.1 Unit Premium Reserves 685.38 (21.68)
2.2 Unrealised Appreciation Reserve 319.49 110.72
2.3 Other Reserves 3,854.25 978.05
TOTAL 22,367.39 5,790.17
ASSETS
1 Investments
1.1.1 Equity Shares 2,750.49 166.02
1.1.4 Other Debentures & Bonds 3,600.64 2,905.16
1.3.4 Other Debentures & Bonds 303.58 –
1.3.5 Securitised Debt securities 660.56 1,670.96
1.4 Government Securities 286.72 452.37
1.7 Certificate of Deposits 9,697.10 –
2 Deposits 352.04 182.04
3.2 CBLO / Reverse Repo Lending 4,111.46 219.29
3.3 Others 501.48 184.83
TOTAL 22,367.39 5,790.17
11
MIP.indd 13 26/07/2010 5:07:34 PM

Abridged Balance Sheet as at March 31, 2010 (Contd...)
Rs. in Lakhs
HSBC MIP - SAVINGS PLAN
As at As at
March 31, 2010 March 31, 2009
LIABILITIES
1 Unit Capital 26,134.05 8,545.07
2.1 Unit Premium Reserves 2,084.92 193.25
2.3 Other Reserves 6,771.99 1,343.32
TOTAL 36,256.14 10,465.69
ASSETS
1 Investments
1.1.1 Equity Shares 7,333.44 542.58
1.2.4 Other Debentures & Bonds –
1.3.4 Other Debentures & Bonds 746.21 497.82
1.3.5 Securitised Debt securities 911.56 2,076.63
1.4 Government Securities 122.88 1,168.78
2 Deposits 477.04 252.04
3.3 Others 719.57 349.33
TOTAL 36,256.14 10,465.69
12
MIP.indd 14 26/07/2010 5:07:34 PM

Rs. in Lakhs
HSBC MIP - REGULAR PLAN
Current Previous
March 31, 2010 March 31, 2009
1 INCOME
1.1 Dividend 12.06 6.96
1.2 Interest 556.78 569.57
1.4 Realised Gains / (Losses) on Interscheme – (7.54)
sale of investments
1.5 Realised Gains / (Losses) on External sale / redemption of 753.81 (310.48)
investments
1.6 Realised Gains / (Losses) on Derivative Transactions (8.15) (20.53)
(A) 1,314.50 237.98
2 EXPENSES
2.2 Service tax on Management fees – –
2.8 Audit fees 0.75 0.50
(B) 274.02 138.37
FOR THE YEAR (A - B = C) 1,040.48 99.61
in value of investments (D) (52.60) 34.90
FOR THE YEAR [E = (C - D)] 1,093.08 64.71
in the value of investments (F) 208.77 97.48
FOR THE YEAR (E+F=G) 1,301.85 162.19
Unrealised Appreciation Reserve 208.77 97.48
7.3 Add / (Less): Equalisation 2,427.36 167.47
7.4 Transfer from Reserve Fund 11.04 229.48
8 TOTAL 3,531.48 461.66
9.1 Income Distributed during the year 558.07 108.03
9.2 Tax on income distributed during the year 86.17 16.98
carried forward to Balance Sheet 2,887.24 336.65
13
MIP.indd 15 26/07/2010 5:07:34 PM

Abridged Revenue Account for the year ended
March 31, 2010 (Contd...)
Rs. in Lakhs
HSBC MIP - SAVINGS PLAN
Current Previous
March 31, 2010 March 31, 2009
1 INCOME
1.1 Dividend 34.67 23.83
1.2 Interest 816.30 1,042.31
1.4 Realised Gains / (Losses) on Interscheme – (11.03)
sale of investments
investments
1.6 Realised Gains / (Losses) on Derivative Transactions 19.74 (71.24)
(A) 2,817.12 (92.49)
2 EXPENSES
2.8 Audit fees 0.75 0.50
(B) 425.84 270.37
FOR THE YEAR (A - B = C) 2,391.28 (362.86)
THE YEAR [E = (C - D)] 2,516.21 (409.53)
in the value of investments (F) 583.39 255.95
7 NET SURPLUS / (DEFICIT) FOR
THE YEAR (E+F=G) 3,099.60 (153.58)
Unrealised Appreciation Reserve 583.39 255.95
7.3 Add / (Less): Equalisation 4,104.59 (430.86)
7.4 Transfer from Reserve Fund – 560.42
8 TOTAL 6,620.80 (279.97)
carried forward to Balance Sheet 5,428.67 (626.13)
14
MIP.indd 16 26/07/2010 5:07:34 PM

HSBC MIP – REGULAR PLAN

Current Previous
March 31, 2010 March 31, 2009
Open
Regular Monthly Dividend Option 10.7325 10.7999
Regular Quarterly Dividend Option 10.8919 10.9470
High
Low
End
Regular Dividend Option
End 21,932 5,726
Average (AAuM)1 12,657 6,671
3. Gross income as % of AAuM2 10.39% 3.57%
4. Expense Ratio:
Regular Monthly Dividend Option 2.16% 2.07%
Regular Quarterly Dividend Option 2.16% 2.07%
5. Net Income as a percentage of AAuM3 8.23% 1.49%
15
MIP.indd 17 26/07/2010 5:07:34 PM

HSBC MIP – REGULAR PLAN

Current Previous
March 31, 2010 March 31, 2009
Retail
Corporate
8. Returns (%):
a. Last One Year
Scheme
Regular Dividend Option N/A N/A
Benchmark
CRISIL MIP Blended Index 14.2700 0.1900
b. Since Inception
Scheme
Benchnmark
1
2
3
4
16
MIP.indd 18 26/07/2010 5:07:34 PM

HSBC MIP – SAVINGS PLAN

Current Previous
March 31, 2010 March 31, 2009
Open
Regular Monthly Dividend Option 10.7242 –
High
Low
End
End 35,831 10,338
Average (AAuM)1 20,112 13,157
4. Expense Ratio:
17
MIP.indd 19 26/07/2010 5:07:34 PM

HSBC MIP – SAVINGS PLAN

Current Previous
March 31, 2010 March 31, 2009
Retail
Corporate
8. Returns (%):
a. Last One Year
Scheme
Regular Monthly Dividend Option 21.1355 (0.7722)
Regular Quarterly Dividend Option 21.1925 (0.8031)
Benchmark
b. Since Inception
Scheme
Benchnmark
1
2
3
4
18
MIP.indd 20 26/07/2010 5:07:34 PM

HSBC MIP - REGULAR / SAVINGS PLAN

1 Investments:
1.2. Open Positions of derivatives in MIP Regular Plan as at March 31, 2010 is Rs. 24,075,176 and is
1.10% to net assets. Open Positions of derivatives in MIP Regular Plan as at March 31, 2009 is
Rs. 2,412,200 is 0.42% to net assets.
Open Positions of derivatives in MIP Savings Plan as at March 31, 2010 is Rs. 50,822,111 and is
1.42% to net assets. Open Positions of derivatives in MIP Savings Plan as at March 31, 2009 is
Rs. 6,935,075 and is 0.67% to net assets.
1.3. Investments in Associates and Group Companies are as under: (Rupees)
Issuer 2010
Instrument Regular Plan Savings Plan Aggregate
Type Investments
by all schemes
The Hongkong & Shanghai Fixed deposits 10,000,000 10,000,000 1,018,000,000
Banking Corporation Limited
Issuer 2009
Instrument Regular Plan Savings Plan Aggregate
Type Investments
by all schemes
The Hongkong & Shanghai Fixed deposits 10,000,000 10,000,000 43,000,000
Banking Corporation Limited
1.4. Open positions of Securities Borrowed and / or Lent by the MIP Regular Plan as of financial years
ended 2010 and 2009 are NIL.
Open positions of Securities Borrowed and / or Lent by the MIP Savings Plan as of financial years
ended 2010 and 2009 are NIL.
1.5. The NPAs for MIP Regular Plan as on March 31, 2010 and March 31, 2009 are NIL.
The NPAs for MIP Savings Plan as on March 31, 2010 and March 31, 2009 are NIL.
1.6. Aggregate Unrealised Gain / Loss as at the end of the Financial years 2009 and 2010 and their
percentage to net assets are as under :
March 31, 2010

Security Regular Plan Savings Plan
Category Amount Percentage to Amount Percentage to
Equity Shares
– Appreciation 35,159,577 1.6031% 243,422,390 6.7937%
– Depreciation 8,227,405 0.3751% 167,450,117 4.6733%
– Appreciation 3,093,155 0.1410% 4,437,820 0.1239%
– Depreciation 219,238 0.0100% 325,981 0.0091%
19
MIP.indd 21 26/07/2010 5:07:34 PM

March 31, 2010

Non Convertible Debentures and Bonds Privately Placed
– Appreciation – – 576,049 1.6077%
– Depreciation – – – –
Asset Backed Securities
– Appreciation 1,739,064 0.0793% 2,604,039 0.0727%
Government of India Securities
– Appreciation 32,116 0.0015% 13,687 0.0004%
Equity Futures
– Appreciation 485,963 0.0222% 983,230 0.0274%
– Depreciation 114,450 0.0052% 269,600 0.0075%
March 31, 2009

Equity Shares
– Appreciation 930,850 0.1626% 2,465,476 0.2385%
– Depreciation 2,615,775 0.4568% 9,075,936 0.8779%
– Appreciation 12,106,129 2.1143% 24,617,261 2.3812%
– Depreciation 2,573,566 0.4495% 419,690 0.0406%
– Depreciation – – 486,698 0.0471%
– Appreciation 1,988,647 0.3473% 2,586,070 0.2501%
– Depreciation 449,713 0.0785% 1,131,139 0.1094%
– Depreciation 3,575,402 0.6244% 5,394,921 0.5218%
Equity Futures
– Appreciation 779 0.0001% – –
– Depreciation – – 1,043 0.0001%
20
MIP.indd 22 26/07/2010 5:07:35 PM

1.7. The aggregate value of investment securities purchased and sold (including matured) during
the year 2009-2010 (excluding accretion of discount of Rs. 24,603,133 and Rs. 33,480,802 for
Regular and Savings Plan respectively) are:
March 31, 2010

Plan Aggregate Purchases Aggregate Sales
Rupees Percentage of Rupees Percentage of
Average Daily Average Daily
Net Assets Net Assets
Regular Plan 8,666,663,810 684.74% 7,579,938,462 598.88%
Savings Plan 13,374,285,652 664.99% 11,634,947,422 578.51%
March 31, 2009

Rupees Percentage of Rupees Percentage of
Average Daily Average Daily
Regular Plan 1,264,636,217 189.56% 1,360,346,341 203.91%
Savings Plan 3,297,754,997 250.65% 3,671,926,696 279.09%

under:
Amount Percentage to Amount Percentage to

Security Category
Regular Plan
2010 2009
Equities 2,018,410 0.0920% – –
Debt Instruments 381,375,038 17.3889% 439,709,739 76.7936%
Money Market Instruments 969,709,005 44.2142% – –
Total 1,353,102,453 61.6952% 439,709,739 76.7936%

Security Category
Savings Plan
2010 2009
Equities 3,205,710 0.0895% – –
Money Market Instruments 1,452,839,619 40.5472% – –
Total 2,094,575,835 58.4573% 670,139,321 64.8129%
21
MIP.indd 23 26/07/2010 5:07:35 PM

entity of HSBC Asset Management (India) Private Limited was paid Collection / Bank charges amounting
to Rs. 1,202 and Rs. 1,198 for the Regular Plan and Savings Plan respectively and clearing member
charges on derivative transactions amounting to Rs. 26,038 and Rs. 65,477 for the Regular Plan and
Savings Plan respectively.
entity of HSBC Asset Management (India) Private Limited was paid Collection/ Bank charges amounting
to Rs. 169,266 and Rs. 170,403 for the Regular Plan and Savings Plan respectively, and clearing
member charges on derivative transactions amounting to Rs. 33,705 and Rs. 95,235 for the Regular
Plan and Savings Plan respectively.

companies
Regular Plan
Shanghai Banking
Corporation
Limited
Securities (India)
Limited
Savings Plan
Shanghai Banking
Corporation
Limited
Securities (India)
Limited

associates / related Nature of [Rs. in received by [Rs.] paid by the
parties / group Relation Crores] the Fund (on accrual Fund
companies basis)
Regular Plan
Shanghai Banking
Corporation
Limited
Savings Plan
Shanghai Banking
Corporation
Limited
22
MIP.indd 24 26/07/2010 5:07:35 PM

companies
Regular Plan
Securities (India)
Limited
HSBC Securities Sponsor 2009 - 2010 1.75 0.35 30,556 1.40
and Capital Market
(India) Private
Limited
Savings Plan
Securities (India)
Limited
HSBC Securities Sponsor 2009 - 2010 4.16 0.44 70,290 1.29
and Capital Market
(India) Private
Limited

AMC and its associates / Association / Covered Transactions value of paid brokerage
related parties / group Nature of [Rs. in Crores] transaction [Rs.] paid by the
companies relation of the Fund (on Fund
accrual
basis)
Regular Plan
Securities (India)
Limited
and Capital Market
(India) Private Limited
Savings Plan
Securities (India)
Limited
and Capital Market
(India) Private Limited
The brokerage paid was at rates similar to those offered to other distributors.
3 None of the Investors held more than 25% of the total net assets of the schemes at the years ended
March 31, 2010 and March 31, 2009.
23
MIP.indd 25 26/07/2010 5:07:35 PM

Regular Plan
Description Opening Units Subscription Redemption Closing Units Face Value
2009-2010
Growth 20,343,046.918 36,509,108.348 9,986,763.268 46,865,391.998 468,653,919
Monthly 11,179,392.387 92,918,786.004 16,733,112.287 87,365,066.104 873,650,662
Dividend
Quarterly 15,065,276.417 27,233,449.862 5,799,857.089 36,498,869.190 364,988,692
Dividend
2008-2009
Description
Growth 14,987,074.518 11,250,934.216 5,894,961.816 20,343,046.918 203,430,469
Monthly 24,470,779.653 10,911,102.092 24,202,489.358 11,179,392.387 111,793,924
Dividend
Quarterly 15,012,077.635 6,136,651.026 6,083,452.244 15,065,276.417 150,652,764
Dividend
Savings Plan
2009-2010
Growth 27,263,343.045 55,702,716.349 16,283,865.161 66,682,194.233 666,821,943
Monthly 22,335,867.542 113,309,617.474 17,966,455.504 117,679,029.512 1,176,790,295
Dividend
Quarterly 35,851,537.631 50,500,233.466 9,372,525.432 76,979,245.665 769,792,456
Dividend
2008-2009
Description
Growth 38,287,542.486 17,735,574.480 28,759,773.921 27,263,343.045 272,633,430
Monthly 35,289,980.846 9,705,703.652 22,659,816.956 22,335,867.542 223,358,675
Dividend
Quarterly 36,071,998.339 14,430,684.202 14,651,144.910 35,851,537.631 358,515,376
Dividend
5 Prior year amounts have been re-grouped and reclassified, wherever applicable, to confirm to current
year’s presentation.
6 No contingent liabilities for MIP - Regular and MIP - Savings funds for the years ended March 31, 2010
and March 31, 2009.
8 Other income in Savings Plan represents exit load collected in excess of 1% of redemption proceeds
and credited to the Scheme.
24
MIP.indd 26 26/07/2010 5:07:35 PM

DISCLAIMERS
Statutory Details:
Risk Factors:
AMC does not indicate the future performance of the Scheme(s) of the Mutual Fund. HSBC MIP
(HMIP) is the name of the Scheme and does not in any manner indicate the quality of the Scheme
or its future prospects or returns.
Terms of Issue:

Regular Plan & Savings Plan -
Exit: 1% - if redeemed / switched out within 1 year from date of investment.
25
MIP.indd 27 26/07/2010 5:07:35 PM

CRISIL Limited.
26
MIP.indd 28 26/07/2010 5:07:35 PM

HSBC Income Fund
An open-ended income Scheme
Income Fund.indd 1 26/07/2010 6:12:48 PM

Dear Investor,
Yours sincerely,
Vikramaaditya

SPONSOR
TRUSTEE
Board of Trustees

CUSTODIAN

Price Waterhouse
LEGAL ADVISORS
Bharucha & Partners

BOARD OF TRUSTEES
Mr. Nasser Munjee
Mr. Manu Tandon
Mr. Mehli Mistri
BOARD OF DIRECTORS
Mr. Ayaz Ebrahim
Mr. S. P. Mustafa
Mr. Ashok Jha*

Trustees’ Report

HSBC Income Fund (HIF) – an open-ended Income Scheme
HIF seeks to generate reasonable income for the investor by investing in bonds, debentures, short-term
instruments like commercial papers, repos, etc. The Scheme has two Plans - the Investment Plan and the
Short Term Plan.
The investment objective of Scheme / Plan(s) is to generate reasonable income through a diversified
portfolio of fixed income securities. The AMC’s view of interest rate trends and the nature of the Plans
will be reflected in the type and maturities of securities in which the Short Term and Investment Plans are
invested.
The net assets of HSBC Income Fund - Investment Plan (HIF – IP) amounted to Rs. 32.66 crores as at March
31, 2010 as compared to Rs. 114.90 crores as at March 31, 2009. Around 61.29% in debt and money
market instruments, 37.49% of the net assets were invested in reverse repos / CBLO and 1.22% in net
current assets as at March 31, 2010.
The net assets of HSBC Income Fund - Short Term Plan (HIF – STP) amounted to Rs. 165.26 crores as at
March 31, 2010 as compared to Rs. 151.55 crores as at March 31, 2009. Around 93.86% in debt and
money market instruments, 5.91% of the net assets were invested in reverse repos / CBLO and 0.22% in
net current assets as at March 31, 2010.
HIF-IP has outperformed its benchmark through relatively active management of duration.
HIF – IP
Date of Inception: 10 Decembwr, 2002 Compounded Annualized Returns (%)
HSBC Income Fund - IP – Regular - Growth 7.39 8.91 7.01 6.58
CRISIL Composite Bond Fund Index 5.38 6.98 5.58 5.26
HIF-STP mostly ran a conservative duration bias on expectation of heightened volatility in short end rates.
HIF – STP
HSBC Income Fund - 5.10 8.03 6.82 6.30
STP – Regular – Growth
CRISIL Short-Term Bond Fund Index 5.85 8.14 6.78 6.00

MARKET OVERVIEW

Trustees’ Report
sector spending.
markets.
around the world.
MARKET OUTLOOK

Trustees’ Report
Debt Market Outlook
side inflation.

Trustees’ Report

MANAGEMENT COMPANY
a) Sponsor
Board of India.
b) HSBC Mutual Fund




Trustees’ Report


Regulations, 1996.

HSBC Income Fund - Investment Plan 203,423 476 238,624 16
HSBC Income Fund - Short Term Plan 57,414 23 – –
Limited).

are as follows:

Trustees’ Report

IA Dividend on 1 61 62 0 0 0 0 0 0 0 0
Units
IB Interest on 0 0 0 0 0 0 0 0 0 0 0
delayed
payment of
Dividend
IC Redemption 2 57 59 0 0 0 0 0 0 0 0
Proceeds
ID Interest on 0 0 0 0 0 0 0 0 0 0 0
delayed
payment of
Redemption
statement of
account/ Unit
Certificate
Statement of
Account
Annual Report/
Abridged
Summary
between
schemes
switch between
schemes
III C Deviation 0 3 3 0 0 0 0 0 0 0 0
from Scheme
attributes
charges/load
of changes viz.
address, PAN,
bank details,
nomination etc.
IV Others** 10 1621 1631 0 0 0 0 0 0 0 0
TOTAL 13 1846 1859 0 0 0 0 0 0 0 0
Note:

Trustees’ Report
9. ACKNOWLEDGEMENTS
Sd/-
N. P. Gidwani
Chairman
MUMBAI
July 20, 2010

Auditors’ Report

HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Income Fund (“The Scheme”) as
at March 31, 2010 and the related Revenue Account for the year ended on that date, both of which
affairs of HSBC Mutual Fund – HSBC Income Fund as at March 31, 2010 and its net surplus for the
year ended on that date.
(iii) The methods used to value non-traded / thinly traded securities as at March 31, 2010 as determined
by HSBC Asset Management (India) Private Limited under procedures approved by the Board of
Trustees of HSBC Mutual Fund in accordance with the guidelines for valuation of securities for
mutual funds issued by Securities and Exchange Board of India are fair and reasonable.

Sd/-
Vivek Prasad
Partner
Place : Mumbai
10

Rs. in Lakhs
HSBC INCOME FUND – INVESTMENT PLAN
As at As at
March 31, 2010 March 31, 2009
LIABILITIES
1 Unit Capital 2,418.14 9,489.00
2.1 Unit Premium Reserves (602.92) (99.56)
2.2 Unrealised Appreciation Reserve – 29.07
2.3 Other Reserves 1,451.25 2,071.49
TOTAL 3,478.72 11,681.18
ASSETS
1 Investments
1.1.4 Other Debentures & Bonds 813.04 6,139.30
1.3.5 Securitised Debt securities 63.92 72.67
1.4 Government Securities 627.68 4,533.40
1.6 Commercial Paper 497.34 –
2 Deposits 189.55 2.05
3.2 CBLO / Reverse Repo Lending 1,224.53 346.07
3.3 Others 48.42 542.89
TOTAL 3,478.72 11,681.18
11

Rs. in Lakhs
HSBC INCOME FUND – SHORT TERM PLAN
As at As at
March 31, 2010 March 31, 2009
LIABILITIES
1 Unit Capital 14,887.54 13,700.32
2.3 Other Reserves 1,266.30 953.81
TOTAL 16,614.09 15,208.47
ASSETS
1 Investments
1.6 Commercial Paper 2,394.53 –
1.7 Certificate of Deposits 12,616.23 6,021.53
2 Deposits 4.04 4.04
3.3 Others 67.43 510.51
TOTAL 16,614.09 15,208.47
12

Rs. in Lakhs
March 31, 2010 March 31, 2009
1 INCOME
1.1 Dividend – –
1.2 Interest 446.43 338.85
1.3 Realised Gain / (Loss) on Foreign Exchange – –
Transactions
1.4 Realised Gains / (Losses) on Interscheme sale of – (33.67)
investments
1.5 Realised Gains / (Losses) on External sale / 238.82 (61.70)
redemption of investments
(A) 685.63 243.48
2 EXPENSES
2.8 Audit fees 1.50 0.50
2.10 Expenses to be Reimbursed by the Investment – (58.80)
Manager
(B) 138.86 67.27
FOR THE YEAR (A - B = C) 546.77 176.21
FOR THE YEAR [E = (C - D)] 703.79 25.08
the value of investments (F) (29.07) 25.63
FOR THE YEAR (E + F = G) 674.72 50.71
Unrealised Appreciation Reserve (29.07) 25.63
8 TOTAL 53.66 1,173.98
carried forward to Balance Sheet (191.87) 1,054.69
13

Abridged Revenue Account for the year ended March 31, 2010 (Contd...)
Rs. in Lakhs
HSBC INCOME FUND - SHORT TERM PLAN
March 31, 2010 March 31, 2009
1 INCOME
1.2 Interest 1,868.40 459.89
1.3 Realised Gain / (Loss) on Foreign Exchange – –
Transactions
1.4 Realised Gains / (Losses) on Interscheme sale of – 2.75
investments
1.5 Realised Gains / (Losses) on External sale / 274.99 29.04
(A) 2,149.21 491.68
2 EXPENSES
2.8 Audit fees 1.00 0.50
2.10 Expenses to be Reimbursed by – (14.41)
the Investment Manager
(B) 395.37 46.51
FOR THE YEAR (A - B = C) 1,753.84 445.17
in value of investments (D) – –
FOR THE YEAR [E = (C - D)] 1,753.84 445.17
FOR THE YEAR (E + F = G) 1,707.90 494.03
7.3 Add / (Less): Equalisation (14.78) 573.65
8 TOTAL 1,749.25 1,067.45
carried forward to Balance Sheet 322.68 661.23
14


March 31, 2010 March 31, 2009
Open
Regular Weekly Dividend Option
Institutional Growth Option 9.5776 14.1338
Institutional Dividend Option 10.6682 –
Institutional Weekly Dividend Option – –
Institutional Plus Growth Option – –
Institutional Plus Weekly Dividend Option – –
Institutional Plus Monthly Dividend Option – –
High
Regular Weekly Dividend Option – –
Institutional Dividend Option 11.2616 11.6290
Low
End
Institutional Growth Option – 9.5776
Institutional Dividend Option – 10.6682
15


March 31, 2010 March 31, 2009
End 3,266 11,490
Average (AAuM)1 7,715 4,163
4. Expense Ratio:
Institutional Growth Option 1.50% 1.06%
Institutional Dividend Option 1.50% 1.06%
6. Portfolio turnover ratio4 – –
7. Total Dividend per unit distributed during the year (planwise)
Retail
16


March 31, 2010 March 31, 2009
Corporate
8. Returns (%):
a. Last One Year
Scheme
Regular Dividend Option 6.4429 N/A
Regular Weekly Dividend Option N/A N/A
Institutional Dividend Option N/A 8.4667
Institutional Weekly Dividend Option N/A N/A
Institutional Plus Growth Option N/A N/A
Institutional Plus Weekly Dividend Option N/A N/A
Institutional Plus Monthly Dividend Option N/A N/A
Benchmark
CRISIL Composite Bond Fund Index (Investment Plan) 5.3800 7.1600
b. Since Inception
Scheme
Regular Weekly Dividend Option N/A N/A
Institutional Dividend Option N/A 5.8927
Institutional Weekly Dividend Option N/A N/A
Institutional Plus Growth Option N/A N/A
Institutional Plus Monthly Dividend Option N/A N/A
Benchmark
CRISIL Composite Bond Fund Index (Investment Plan) 5.2600 5.2200
1
2
3
4
Portfolio Turnover = Lower of sales or pur)chase divided by the Average AuM for the year.
17


March 31, 2010 March 31, 2009
Open
Regular Weekly Dividend Option 10.0712 10.1026
Institutional Dividend Option 10.4456 –
Institutional Weekly Dividend Option 10.2542 –
Institutional Plus Growth Option 10.1070 –
Institutional Plus Monthly Dividend Option 10.0362 –
High
Institutional Weekly Dividend Option 10.4622 10.4660
Institutional Plus Growth Option 10.6740 10.1070
Institutional Plus Weekly Dividend Option 10.1031 10.0220
Institutional Plus Monthly Dividend Option 10.2315 10.0362
Low
End
Institutional Plus Growth Option – 10.1070
18


March 31, 2010 March 31, 2009
Institutional Plus Weekly Dividend Option 10.0558 –
End 16,530 13,614
Average (AAuM)1 38,875 5,472
4. Expense Ratio:
Regular Weekly Dividend Option 1.25% 1.10%
Institutional Weekly Dividend Option 0.80% 0.60%
Institutional Plus Growth Option 0.75% 0.55%
Institutional Plus Weekly Dividend Option 0.75% 0.55%
Institutional Plus Monthly Dividend Option 0.75% 0.55%
6. Portfolio turnover ratio4
Retail
19


March 31, 2010 March 31, 2009
Corporate
8. Returns (%):
a. Last One Year
Scheme
Institutional Dividend Option N/A N/A
Institutional Weekly Dividend Option 5.0891 N/A
Institutional Plus Growth Option 5.6258 N/A
Institutional Plus Monthly Dividend Option 4.5414 N/A
Benchmark
CRISIL Short-Term Bond Fund Index (Short Term Plan) 5.8500 6.8500
b. Since Inception
Scheme
Institutional Dividend Option – 3.8703
Benchmark
CRISIL Short-Term Bond Fund Index (Short Term Plan) 6.0000 6.0000
1
2
3
4
20

HSBC INCOME FUND - INVESTMENT PLAN / SHORT TERM PLAN

1 Investments:
1.2. Open Positions of derivatives for Income Fund - Investment Plan is Nil as at March 31, 2010 and as
at March 31, 2009.
Open Positions of derivatives for Income Fund - Short Term Plan is Nil as at March 31, 2010 and as
at March 31, 2009.

schemes
2010 2009
Shanghai Banking
Corporation Limited
1.4. Open position of Securities Borrowed and / or Lent by the Schemes as of the years ended March
31, 2010 and March 31, 2009 are NIL.
1.5. NPAs for the Schemes for the years ended March 31, 2010 and March 31, 2009 are NIL.
1.6. Aggregate Unrealised Gain / Loss as at the end of the Financial years 2009 and 2010 and their
percentages to net assets are as under :
March 31, 2010

Security INVESTMENT PLAN SHORT TERM PLAN
Type
– Appreciation 250,564 0.0767% 344,566 0.0208%
– Depreciation 306,366 0.0938% – –
– Depreciation 441,583 0.1352% – –
– Appreciation 10,873 0.0033% – –
– Depreciation 437,566 0.1340% – –
21

March 31, 2009

Security INVESTMENT PLAN SHORT TERM PLAN
Type
– Appreciation 6,317,746 0.5498% 5,080,372 0.3732%
– Depreciation 3,411,111 0.2969% 142,285 0.0105%
– Depreciation 781,228 0.0680% – –
– Depreciation 15,845,249 1.3790% – –
1.7. The aggregate value of investments purchased (excluding accretion of discount of Rs. 3,669,515
and Rs. 103,649,039 for HSBC Income Fund - Investment Plan and HSBC Income Fund - Short
Term Plan respectively) and sold (including matured) during the year are :
2009-2010
Amount Percentage of Amount Percentage of
(Rs.) Average Daily (Rs.) Average Daily
Investment Plan 9,142,476,843 1185.04% 10,057,164,104 1303.60%
Short Term Plan 23,963,152,456 616.42% 23,982,294,982 616.91%
The aggregate value of investments purchased (excluding accretion of discount of Rs. 1,815,499 and
Rs. 26,773,795 for HSBC Income Fund - Investment Plan and HSBC Income Fund - Short Term Plan
respectively) and sold (including matured) during the year 2008 - 2009 are :
2008-2009
Amount Percentage of Amount Percentage of
Investment Plan 3,159,143,552 762.83% 2,244,998,154 542.10%
Short Term Plan 3,827,871,811 710.63% 2,473,791,637 459.25%

Aggregate Value of Equity, Debt & Money Market Instruments and percentage to net assets are as
under:
22

Fair Value Percentage to Fair Value Percentage to

Security Category
INVESTMENT PLAN
2010 2009
Money market Instruments 49,732,940 15.2253% – –
Total 137,429,225 42.0726% 189,014,345 16.4503%

Security Category
SHORT TERM PLAN
2010 2009
Money market Instruments 1,501,075,589 90.8105% 602,153,291 44.2308%
Total 1,551,141,505 93.8393% 1,138,262,114 83.6103%
2 Disclosure Under Regulation 25(8) of the Securities nnd Exchange Board of India (Mutual Funds)
entity of HSBC Asset Management (India) Private Limited was paid collection/bank charges amounting
to Rs. 22,806 for the Investment Plan and Rs. 7,865 for the Short Term Plan.
to Rs. 41,395 for the Investment Plan and Rs. 3,854 for the Short Term Plan .
Name of Nature of Period Business % of Total Commission % of Total

Sponsor / Association / Covered Given Business paid commission
AMC and its Nature of [Rs. in received by [Rs.] paid by the
associates / Relation Crores] the Fund Fund
related
parties / group
companies
INVESTMENT PLAN
The Hongkong Associate 2009 - 2010 16.97 44.20 2,750,823 55.53
and Shanghai
Banking
Corporation
Limited
HSBC Associate 2009 - 2010 0.00~ 0.00~ 5,415 0.11
InvestDirect
Securities (India)
Limited
23


associates / Relation Crores] the Fund Fund
related
parties / group
companies
SHORT TERM PLAN
and Shanghai
Banking
Corporation
Limited
HSBC Associate 2009 - 2010 6.76 0.79 130,877 0.67
InvestDirect
Securities (India)
Limited

associates / Relation Crores] the Fund (on accrual Fund
related basis)
parties / group
companies
INVESTMENT PLAN
and Shanghai
Banking
Corporation
Limited
SHORT TERM PLAN
and Shanghai
Banking
Corporation
Limited
3 None of the Investors held more than 25% of the total net assets of Income Fund - Investment Plan and
Income Fund - Short Term Plan as at the years ended on March 31, 2010 and March 31, 2009.
24

4 Unit Capital movement during the years ended March 31, 2010 and March 31, 2009:
INVESTMENT PLAN
2009-2010
Regular Growth 25,707,313.077 6,885,022.408 20,732,282.697 11,860,052.788 118,600,528
Regular Weekly – – – – –
Dividend
Institutional 10,013,416.171 18,672.866 10,032,089.037 – –
Dividend
Institutional Growth 519,254.435 11,032,977.203 11,552,231.638 – –
Institutional Weekly – – – – –
Dividend
2008 - 2009
Regular Growth 11,671,564.647 24,482,272.058 10,446,523.628 25,707,313.077 257,073,131
Regular Weekly – – –
Dividend
Institutional – 19,998,982.155 9,985,565.984 10,013,416.171 100,134,162
Dividend
Institutional Growth 9,264,262.136 1,019,254.435 9,764,262.136 519,254.435 5,192,544
Institutional Weekly – – – – –
Dividend
SHORT TERM PLAN

2009-2010
Regular Growth 15,450,409.839 24,352,826.602 25,055,835.671 14,747,400.770 147,474,007
Regular Weekly 14,467,296.399 73,014,114.879 67,101,961.049 20,379,450.229 203,794,503
Dividend
Institutional 4,837,013.350 53,253,516.264 57,604,389.332 486,140.282 4,861,404
Dividend
Institutional Growth 8,845,986.502 37,282,068.211 34,489,082.752 11,638,971.961 116,389,719
Institutional Weekly 24,995,115.818 81,693,798.828 76,782,550.358 29,906,364.288 299,063,642
Dividend
Institutional Plus 14,250,000.000 65,758,134.542 80,008,134.542 – –
Option - Growth
Institutional Plus – 219,694,038.845 188,934,556.980 30,759,481.865 307,594,818
Option - Weekly
Dividend
Institutional Plus 1,000,000.000 84,875,537.437 84,856,733.909 1,018,803.528 10,188,035
Option - Monthly
Dividend
25

SHORT TERM PLAN

2008 - 2009
Regular 4,147,785.788 63,563,188.891 14,553,568.167 53,157,406.512 531,574,065
Dividend
Regular 4,652,173.505 19,603,247.004 8,805,010.670 15,450,409.839 154,504,098
Growth
Regular 505,339.613 17,883,545.155 3,921,588.369 14,467,296.399 144,672,964
Weekly
Dividend
Institutional – 17,532,762.612 12,695,749.262 4,837,013.350 48,370,134
Dividend
Institutional 500,000.000 11,411,840.508 3,065,854.006 8,845,986.502 88,459,865
Growth
Institutional – 83,021,402.762 58,026,286.944 24,995,115.818 249,951,158
Weekly
Dividend
Institutional – 14,250,000.000 – 14,250,000.000 142,500,000
Plus Option -
Growth
Institutional – 75,804,702.056 75,804,702.056 – –
Plus Option
- Weekly
Dividend
Institutional – 1,000,000.000 – 1,000,000.000 10,000,000
Plus Option
- Monthly
Dividend

6 No contingent liabilities for Investment Plan and Short Term Plan for the years ended March 31, 2010
and March 31, 2009.
8 Other income in Investment Plan represents provision for expenses written back as no longer required.
Other income in Short Term Plan represents provision for expenses written back as no longer required
and amount received from Investment Manager as compensation for an operational incident.
26

DISCLAIMERS
Statutory Details:
Risk Factors:
Income Fund (HIF) is the name of the Scheme and does not in any manner indicate the quality of
Terms of Issue:
Load Structure (includes SIP/STP where applicable):

Investment Plan:
Exit : Regular & Institutional Option - 0.5% if redeemed / switched outwithin 6 months from the date of
investment.
Short Term Plan:
Exit: Regular, Institutional & Institutional Plus Option - Nil.
27


CRISIL Limited.
28

HSBC Floating Rate Fund
An open-ended income Scheme
Floating Rate Fund.indd 1 27/07/2010 4:12:20 PM

Dear Investor,
Yours sincerely,
Vikramaaditya

SPONSOR
TRUSTEE
Board of Trustees

CUSTODIAN

Price Waterhouse
LEGAL ADVISORS
Bharucha & Partners

BOARD OF TRUSTEES
Mr. Nasser Munjee
Mr. Manu Tandon
Mr. Mehli Mistri
BOARD OF DIRECTORS
Mr. Ayaz Ebrahim
Mr. S. P. Mustafa
Mr. Ashok Jha*

Trustees’ Report

HSBC Floating Rate Fund (HFRF) – an open–ended Income Scheme

HFRF seeks to generate reasonable return with commensurate risk from a portfolio comprised of floating
rate debt instruments and fixed rate debt instruments swapped for floating rate returns. The Scheme may
also invest in fixed rate money market and debt instruments. There can be no assurance that the Scheme
objective can be realised. The Scheme has two Plans – Long Term Plan and Short Term Plan.
The net assets of HSBC Floating Rate Fund – Long Term Plan (HFRF – LTP) amounted to Rs. 597.50 crores as
at March 31, 2010 as compared to Rs. 454.44 crores as at March 31, 2009. Around 98.68% were invested
in money market instruments, 1.40% of the net assets were invested in reverse repos / CBLO and (0.02)%
in net current assets as at March 31, 2010.
The net assets of HSBC Floating Rate Fund - Short Term Plan (HFRF – STP) amounted to Rs. 72.22 crores
as at March 31, 2010 as compared to Rs. 87.85 crores as at March 31, 2009. Around 99.05% of the net
assets were invested in reverse repos/ CBLO and 0.95% in net current assets as at March 31, 2010.
HFRF - LTP has outperformed its benchmark index through active calls at the short end of the curve based
on outlook for liquidity and RBI policy rates, among other factors.
HFRF – LTP
Date of Inception: Compounded Annualized Returns (%)
16 November, 2004
Scheme & Benchmark 1 Year 3 Years Since
Inception
HSBC FRF – LTP – Regular Plan – Growth 4.52 7.38 6.70
CRISIL Liquid Fund Index 3.67 6.65 6.14

HFRF–STP has underperformed its benchmark as incremental investments have been made very
conservatively in line with the general risk environment.
HFRF – STP
Date of Inception: Simple Annualized Compounded Annualized Returns (%)
16 November, 2004 Returns (%)
Schemes (P2P) 3 Months 6 Months 1 Year 3 Years Since
Inception
HSBC FRF – STP – 2.49 2.36 2.24 5.98 5.99
Regular Plan – Growth
CRISIL Liquid Fund Index 3.69 3.18 3.68 6.65 6.14


Trustees’ Report

MARKET OVERVIEW
sector spending.
For the financial year 2009–2010, BSE SENSEX was up by 80.5%. The BSE Midcap was up by 130.2% and
markets.
world. And hence there is a fear that this might de–rail the recovery process what we are witnessing over
around the world.
In another important event, we saw S&P revise its outlook on India’s long–term sovereign credit rating to
stable from negative. It affirmed its ‘BBB–’ long–term and ‘A–3’ short–term sovereign credit ratings on
India. The outlook upgrade driven by consolidation in fiscal deficit and strong growth.

Bond yields rose for most of the financial year 2009–2010 as market was hit by a huge borrowing calendar

Trustees’ Report
MARKET OUTLOOK
in FY09. India remains a supply–constrained and capital–starved economy with significant latent unmet
consolidation will be credible as the government has little choice but to begin the much–needed process
The next financial year 2010–2011 is likely to be one where specific sectors and company performances
with the markets now trading at valuations of around 15–16X FY2011 earnings, in the near term we expect
Debt Market Outlook
side inflation.

Trustees’ Report
l Gross market borrowing for FY 2010–11 is pegged at INR 4,57,000 crores versus INR 4,51,000 crores
in 2009–10. A few demand–supply dynamics for government securities are as follows:
l Absence of RBI OMO and MSS de–sequestering imply that net supply of government securities to
would progressively reduce in the year ahead, some of the so–called ‘supply premium’ that has been built

MANAGEMENT COMPANY
a) Sponsor
in the world. Headquartered in London, HSBC operates through long–established businesses in five
regions: Europe, Asia–Pacific region, Middle East, America and Africa. Through its global network of
Board of India.
HSCI holds 100% of the paid–up equity share capital of the AMC.
b) HSBC Mutual Fund


Trustees’ Report


The paid–up equity share capital of the AMC is Rs. 9 crores. HSBC Securities and Capital Markets (India)


Regulations, 1996.

HSBC Floating Rate Fund – Long Term Plan 41,564 56 14,800 4
HSBC Floating Rate Fund – Short Term Plan – – – –
Company has Investor Service Centres in 14 locations at its own offices – namely Mumbai, New Delhi,
2009 to 8859 as of 31 March, 2010. During the year, the Asset Management Company initiated tie–ups

Trustees’ Report
of such tie–ups to 32 (Angel Capital & Dept Market Ltd, Bajaj Capital Ltd, Bonanza Portfolio Ltd., CITIBANK
Oswal Securities Limited, NJ India Invest Pvt. Ltd., Reliance Securities Limited, Religare Securities Limited,
RR Investors Capital Services Pvt. Ltd., SBICAP Securities Ltd., Sharekhan Limited, Shriram Insight Share
Brokers Ltd., SMC Global Securities Limited, Standard Chartered – STCI Capital Markets Ltd., Standard
Chartered Bank, Tom Distribution Services Ltd., Yes Bank Limited, IDBI Capital Market Services Ltd., JRG
Securities Limited).

The details of the redressal of investor complaints received against HSBC Mutual Fund during 2009–2010
are as follows:
IA Dividend on 1 61 62 0 0 0 0 0 0 0 0
Units
IB Interest on 0 0 0 0 0 0 0 0 0 0 0
delayed
payment of
Dividend
IC Redemption 2 57 59 0 0 0 0 0 0 0 0
Proceeds
ID Interest on 0 0 0 0 0 0 0 0 0 0 0
delayed
payment of
Redemption
statement of
account/ Unit
Certificate
Statement of
Account
Annual Report/
Abridged
Summary
between
schemes
switch between
schemes

Trustees’ Report
III C Deviation 0 3 3 0 0 0 0 0 0 0 0
from Scheme
attributes
charges/load
of changes viz.
address, PAN,
bank details,
nomination etc.
IV Others** 10 1621 1631 0 0 0 0 0 0 0 0
TOTAL 13 1846 1859 0 0 0 0 0 0 0 0
Note:
9. ACKNOWLEDGEMENTS
Sd/-
N. P. Gidwani
Chairman
MUMBAI
July 20, 2010

Auditors’ Report

HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Floating Rate Fund (“The Scheme”)
Flow Statement for the year ended on that date, which we have signed under reference to this report.
fair view of the state of affairs of HSBC Mutual Fund – HSBC Floating Rate Fund as at March 31,
(iii) The methods used to value non-traded / thinly traded securities as at March 31, 2010, as determined
mutual funds issued by the Securities and Exchange Board of India are fair and reasonable.

Sd/-
Vivek Prasad
Partner
Place : Mumbai
10

Rs. in Lakhs
HSBC FLOATING RATE FUND
– LONG TERM PLAN
As at As at
March 31, 2010 March 31, 2009
LIABILITIES
1 Unit Capital 51,992.65 39,160.20
2.1 Unit Premium Reserves 4,917.52 2,722.86
2.2 Unrealised Appreciation Reserve – 29.05
2.3 Other Reserves 2,866.22 3,532.21
TOTAL 62,353.37 48,839.68
ASSETS
1 Investments
1.1.4 Other Debentures & Bonds – 532.86
1.3.4 Other Debentures & Bonds – 348.16
1.3.5 Securitised Debt securities – 1,331.57
1.6 Commercial Paper 9,745.17 44,790.02
1.7 Certificate of Deposits 49,212.78 196.45
2 Deposits 56.10 25.10
3.3 Others 2,499.66 89.63
4 Deferred Revenue Expenditure
(to the extent not written off) – –
TOTAL 62,353.37 48,839.68
11

Rs. in Lakhs
– SHORT TERM PLAN
As at As at
March 31, 2010 March 31, 2009
LIABILITIES
1 Unit Capital 6,706.37 8,405.84
2.1 Unit Premium Reserves 4,186.98 (53.05)
2.3 Other Reserves (3,670.33) 431.74
TOTAL 7,233.55 8,829.35
ASSETS
1 Investments
Total Investments – –
2 Deposits 50.17 50.17
3.3 Others 4.35 1.24
(to the extent not written off) – –
TOTAL 7,233.55 8,829.35
12

Rs. in Lakhs
– LONG TERM PLAN
Current Previous
March 31, 2010 March 31, 2009
1 INCOME
1.2 Interest 5,815.31 2,223.76
1.5 Realised Gains / (Losses) on External sale / 1,198.53 155.87
1.7 Other Income 0.05 (0.74)
(A) 7,013.88 2,384.78
2 EXPENSES
2.8 Audit fees 0.25 0.25
2.10 Expenses to be Reimbursed by the Investment Manager – (10.63)
(B) 834.36 148.91
FOR THE YEAR (A – B = C) 6,179.52 2,235.87
value of investments (D) (6.64) 6.42
FOR THE YEAR [E = (C–D)] 6,186.16 2,229.45
FOR THE YEAR (E + F = G) 6,157.11 2,258.50
8 TOTAL 3,388.51 4,703.33
9.1 Income Distributed during the year 3,300.21 1,493.42
carried forward to Balance Sheet (594.37) 2,910.24
13

Rs. in Lakhs
– SHORT TERM PLAN
Current Previous
March 31, 2010 March 31, 2009
1 INCOME
1.2 Interest 212.63 1,091.08
1.4 Realised Gains / (Losses) on Interscheme – 12.08
sale of investments
1.5 Realised Gains / (Losses) on External sale / redemption of (2.72) 0.24
investments
1.7 Other Income 0.01 (0.01)
(A) 209.92 1,103.39
2 EXPENSES
2.8 Audit fees 0.12 1.50
2.10 Expenses to be Reimbursed by the Investment Manager – –
(B) 37.86 79.72
FOR THE YEAR (A – B = C) 172.06 1,023.67
value of investments (D) – –
FOR THE YEAR [E = (C – D)] 172.06 1,023.67
FOR THE YEAR (E + F = G) 172.06 1,023.67
7.3 Add / (Less): Equalisation (4,141.00) (225.10)
8 TOTAL (3,926.58) 847.28
carried forward to Balance Sheet (4,059.72) 89.42
14

LONG TERM PLAN SHORT TERM PLAN

Current Previous Current Previous
Year ended Year ended Year ended Year ended
March 31, March 31, March 31, March 31,
2010 2009 2010 2009
Open
Regular Growth Option 13.5781 12.4936 13.3675 12.4236
Regular Daily Dividend Option 10.0114 – 10.0000 10.0000
Regular Weekly Dividend Option 10.0066 – 10.0205 10.0079
Regular Monthly Dividend Option 10.0064 10.0069 – –
Institutional Growth Option 13.7348 12.5862 13.5003 12.5158
Institutional Daily Dividend Option 10.0980 – 10.0623 10.0368
Institutional Weekly Dividend Option 11.2348 11.2291 10.4999 10.0562
Institutional Fortnightly Dividend Option 10.2245 10.0332 – –
Institutional Monthly Dividend Option 10.0614 10.0346 10.1350 10.0658
Institutional Plus Growth Option – – 11.4592 10.6182
Institutional Plus Daily Dividend Option – – – 10.0262
Institutional Plus Weekly Dividend Option – – 10.0373 10.0098
Institutional Plus Monthly Dividend Option – – – –
High
Regular Daily Dividend Option 10.0136 10.0114 10.0000 10.0000
Regular Weekly Dividend Option 10.0240 10.0121 10.0222 10.0330
Institutional Daily Dividend Option 10.1799 10.0980 10.1360 10.0623
Low
15


2010 2009 2010 2009
End
Institutional Weekly Dividend Option 11.2299 11.2348 – 10.4999
Institutional Plus Daily Dividend Option – – – –
Institutional Plus Weekly Dividend Option – – – 10.0373
2. Closing Assets Under Management
(Rs. in Lakhs)
End 59,776 45,444 7,223 8,785
Average (AAuM)1 131,250 27,867 7,720 13,315
3. Gross income as % of AAuM2 5.34% 8.56% 2.72% 8.29%
4. Expense Ratio:
Regular Growth Option 1.00% 0.93% 0.51% 0.70%
Regular Daily Dividend Option 1.00% 0.93% 0.51% 0.70%
Regular Weekly Dividend Option 1.00% 0.93% 0.51% 0.70%
16


2010 2009 2010 2009
Regular Monthly Dividend Option 1.00% 0.93% – –
Institutional Growth Option 0.61% 0.45% 0.44% 0.45%
Institutional Daily Dividend Option 0.61% 0.45% 0.44% 0.45%
Institutional Weekly Dividend Option 0.61% 0.45% 0.44% 0.45%
Institutional Fortnightly Dividend Option 0.61% 0.45% – –
Institutional Monthly Dividend Option 0.61% 0.45% 0.44% 0.41%
Institutional Plus Growth Option – – 0.37% 0.41%
Institutional Plus Daily Dividend Option – – – –
Institutional Plus Weekly Dividend Option – – 0.37% 0.41%
Regular Daily Dividend Option 0.38% 0.26% 0.26% 0.33%
Regular Weekly Dividend Option 0.38% 0.26% 0.26% 0.33%
Regular Monthly Dividend Option 0.38% 0.26% – 0.33%
Institutional Daily Dividend Option 0.38% 0.23% 0.26% 0.33%
Institutional Weekly Dividend Option 0.38% 0.23% 0.26% 0.33%
Institutional Fortnightly Dividend Option 0.38% 0.23% – 0.33%
Institutional Monthly Dividend Option 0.38% 0.23% 0.26% 0.33%
Institutional Plus Growth Option – 0.23% 0.26% 0.27%
Institutional Plus Daily Dividend Option – 0.23% – 0.27%
Institutional Plus Weekly Dividend Option – 0.23% 0.26% 0.27%
Institutional Plus Monthly Dividend Option – 0.23% – 0.27%
5. Net Income as a percentage of AAuM3 4.71% 8.02% 2.23% 7.69%
6. Portfolio turnover ratio4 – – – –
the year (planwise)
Retail
17


2010 2009 2010 2009
Corporate
8. Returns (%):
a. Last One Year
Scheme
Regular Daily Dividend Option 3.9436 – 1.7359 5.8884
Regular Weekly Dividend Option 3.9506 – 1.7298 5.9603
Institutional Daily Dividend Option 4.4107 – 1.9645 6.1162
18


2010 2009 2010 2009
Benchmark
CRISIL Liquid Fund Index 3.6700 8.7800 3.6800 8.8000
b. Since Inception
Scheme
Benchmark
CRISIL Liquid Fund Index 6.1400 6.7000 6.1400 6.7000
1
2
3
4
19

HSBC FLOATING RATE FUND - LONG TERM PLAN / SHORT TERM PLAN
1 Investments:
1.2. Open Positions of derivatives for Floating Rate Fund - Long Term Plan and Floating Rate Fund -
Short Term Plan as of March 31, 2010 are NIL.
Open Positions of derivatives for Floating Rate Fund - Long Term Plan and Floating Rate Fund -
Short Term Plan as of March 31, 2009 are NIL.

schemes
2010 2009
Shanghai Banking
Corporation Ltd.
31, 2010 and March 31, 2009 are NIL.
1.6. Aggregate Unrealised Gain / Loss as at the end of the Financial year and percentage to net assets
are:
LONG TERM PLAN

Asset Class Amount Percentage to Amount Percentage to
2010 2009
Non-Convertible Debentures and Bonds Listed / Awaiting Listing

– Depreciation – – 663,800 0.0146%
Non-Convertible Debentures and Bonds Privately Placed
– Appreciation – – 837,077 0.0184%
– Appreciation – – 2,068,284 0.0455%
Aggregate Unrealised Gain / Loss at the end of the Financial years ended March 31, 2010 and March
31, 2009 for Floating Rate Fund - Short Term Plan are Nil.
1.7. The aggregate value of investments purchased and sold (including matured) during the year
(excluding accretion of discount of Rs. 523,693,413 and Rs. 2,730,000 for Long Term and Short
Term Plan respectively) are :
20

2009-2010
Aggregate Purchases Aggregate Sales
Plan Amount Percentage of Amount Percentage of

Long Term Plan 72,453,262,526 552.03% 71,918,677,941 547.95%
Short Term Plan 797,541,955 103.30% 800,000,000 103.62%
The aggregate value of investments purchased and sold (including matured) during the year (excluding
accretion of discount of Rs. 135,102,262 and Rs. 81,656,313 for Long Term and Short Term Plan
respectively)
2008-2009
Aggregate Purchases Aggregate Sales
Plan Amount Percentage of Amount Percentage of

Long Term Plan 27,141,086,721 794.97% 23,252,509,827 681.08%
Short Term Plan 2,241,718,740 167.79% 3,687,513,072 276.00%
1.8. Non -Traded securities in the portfolio:

Aggregate Value of Equity, Debt & Money Market Instruments and their percentages to Net assets
are as under :
2009-2010
Security Category (Rs.) Net Assets (Rs.) Net Assets
Money market 5,895,795,487 98.63% – –
Instruments
Total 5,895,795,487 98.63% – –
2008-2009
Security Category (Rs.) Net Assets (Rs.) Net Assets
Debt Instruments 167,973,620 3.70% – –
Money market 4,498,647,018 98.99% – –
Instruments
Total 4,666,620,638 102.69% – –
Regulations, 1996 as amended for the year ended March 31, 2010 is as under.
21

During the year 2009-10, The Hongkong and Shanghai Banking Corporation Limited, an associate entity of
HSBC Asset Management (India) Private Limited was paid collection / bank charges amounting to Rs. 3,831
and Rs. 6,386 in Long Term Plan and Short Term Plan respectively.
During the year 2008-09, The Hongkong and Shanghai Banking Corporation Limited, an associate entity
of HSBC Asset Management (India) Private Limited was paid collection / bank charges amounting to Rs. 12
and Rs. 1,385 in Long Term Plan and Short Term Plan respectively.

companies
LONG TERM PLAN
Shanghai Banking
Corporation Limited
Securities (India)
Limited
SHORT TERM PLAN

Shanghai Banking
Corporation Limited
Securities (India)
Limited

companies basis)
LONG TERM PLAN

Shanghai Banking
Corporation Limited
SHORT TERM PLAN

Shanghai Banking
Corporation Limited
The brokerage paid was at rates similar to those offered to other distributors. Further, The Hongkong
and Shanghai Banking Corporation Limited, an associate of the Sponsor, is on the panel of bankers with
whom HSBC Mutual Fund places money on fixed deposits and enters into reverse repo transactions
from time to time at competitive rates.
March 31, 2010 and March 31, 2009.
22

LONG TERM PLAN

Description 2009-2010
Regular Growth 7,361,353.037 29,072,069.318 27,104,318.750 9,329,103.605 93,291,035
Regular Daily 4,719,009.792 157,887.379 2,120,152.849 2,756,744.322 27,567,444
Dividend
Regular Weekly 5,869,893.642 69,964,899.678 56,312,448.831 19,522,344.489 195,223,446
Dividend
Regular Monthly 43,136,652.841 33,002,015.276 51,655,420.827 24,483,247.290 244,832,474
Dividend
Institutional 88,532,331.128 2,513,293,697.351 2,545,724,227.552 56,101,800.927 561,018,008
Growth
Institutional Daily 12,461,806.332 979,230.716 6,243,549.707 7,197,487.341 71,974,873
Dividend
Institutional 545,333.900 2,652,232.224 2,629,103.368 568,462.756 5,684,626
Fortnightly
Dividend
Institutional 217,865,967.972 2,158,763,676.331 1,978,538,269.640 398,091,374.663 3,980,913,748
Weekly Dividend
Institutional 11,109,646.396 4,073,334.085 13,307,006.495 1,875,973.986 18,759,739
Monthly Dividend
SHORT TERM PLAN

Description 2009-2010
Regular Growth 7,967,470.081 5,212,911.625 8,252,785.776 4,927,595.930 49,275,958
Regular Daily 25,849,979.215 37,428,733.365 42,935,124.056 20,343,588.524 203,435,885
Dividend
Regular Weekly 26,900,500.774 25,526,798.856 29,091,427.864 23,335,871.766 233,358,716
Dividend
Institutional Growth 97,055.445 4,049,696.111 1,634,480.410 2,512,271.146 25,122,711
Institutional Daily 6,894,975.853 4,840,621.594 11,635,817.106 99,780.341 997,806
Dividend
Institutional Weekly 3,440,995.435 9,778.962 3,450,774.397 – –
Dividend
Institutional 4,339,496.053 50,934.139 1,989,139.240 2,401,290.952 24,012,908
Monthly Dividend
Institutional Plus 4,987,332.184 8,737,217.855 281,296.358 13,443,253.681 134,432,537
Growth
Institutional Plus – – – – –
Daily Dividend
Institutional Plus 3,580,547.191 4,157.938 3,584,705.129 – –
Weekly Dividend
23

LONG TERM PLAN

2008-2009
Description
Opening Subscription Redemption Closing Units Face Value
Units
Regular Growth 7,471,705.625 14,683,385.964 14,793,738.552 7,361,353.037 73,613,530
Regular Daily – 13,574,854.752 8,855,844.960 4,719,009.792 47,190,098
Dividend
Regular Weekly – 5,879,912.477 10,018.835 5,869,893.642 58,698,936
Dividend
Regular Monthly 16,372,183.719 45,848,558.548 19,084,089.426 43,136,652.841 431,366,528
Dividend
Institutional 16,920,635.005 459,657,983.206 388,046,287.083 88,532,331.128 885,323,311
Growth
Institutional Daily – 1,113,238,427.088 1,100,776,620.756 12,461,806.332 124,618,063
Dividend
Institutional 881,553.972 110,709,121.493 111,045,341.565 545,333.900 5,453,339
Fortnightly
Dividend
Institutional Weekly 9,287,147.224 682,636,484.183 474,057,663.435 217,865,967.972 2,178,659,680
Dividend
Institutional 11,075,077.247 95,585,424.100 95,550,854.951 11,109,646.396 111,096,464
Monthly Dividend
SHORT TERM PLAN

2008-2009
Description
Opening Subscription Redemption Closing Units Face Value
Units
Regular Growth 11,316,444.277 20,562,687.385 23,911,661.581 7,967,470.081 79,674,701
Regular Daily 46,612,712.234 57,564,452.273 78,327,185.292 25,849,979.215 258,499,792
Dividend
Regular Weekly 21,330,117.806 45,296,245.444 39,725,862.476 26,900,500.774 269,005,008
Dividend
Institutional Growth 2,558,819.389 22,931,458.891 25,393,222.835 97,055.445 970,554
Institutional Daily 3,829,950.745 31,051,944.545 27,986,919.437 6,894,975.853 68,949,759
Dividend
Dividend
Institutional 4,094,365.416 1,730,610.437 1,485,479.800 4,339,496.053 43,394,961
Monthly Dividend
Growth
Institutional Plus 11,918,438.460 474,478,092.435 486,396,530.895 – –
Daily Dividend
Institutional Plus 17,920,513.941 531,043.585 14,871,010.335 3,580,547.191 35,805,472
Weekly Dividend
5 Prior year’s amounts have been re-grouped and re-classified, wherever applicable, to confirm to current
24

6 No contingent liabilities for Floating Rate Fund - Long Term Plan and Floating Rate Fund - Short Term
Plan for the years ended March 31, 2010 and March 31, 2009.
8 Miscellaneous income in Long Term Plan and Short Term Plan represents excess provision for brokerage
expenses of previous year written back as no longer required.
25

DISCLAIMERS
Statutory Details:
Risk Factors:
Floating Rate Fund (HFRF) is the name of the Scheme and does not in any manner indicate the
Terms of Issue:

Long Term Plan and Short Term Plan:
Exit: Nil.

CRISIL Limited.
26

HSBC Ultra Short Term Bond Fund
An open ended debt Scheme
Ultra Short Term Bond Fund.indd 1 26/07/2010 3:58:35 PM

Dear Investor,
Yours sincerely,
Vikramaaditya

SPONSOR
TRUSTEE
Board of Trustees

CUSTODIAN

Price Waterhouse
LEGAL ADVISORS
Bharucha & Partners

BOARD OF TRUSTEES
Mr. Nasser Munjee
Mr. Manu Tandon
Mr. Mehli Mistri
BOARD OF DIRECTORS
Mr. Ayaz Ebrahim
Mr. S. P. Mustafa
Mr. Ashok Jha*

Trustees’ Report

HSBC Ultra Short Term Bond Fund (HUSBF) - an open ended Debt Scheme
HUSBF seeks to provide liquidity and reasonable returns by investing primarily in a mix of short term debt
and money market instruments.
The net assets of HUSBF amounted to Rs. 512.32 crores as at March 31, 2010 as compared to Rs. 984.19
crores as at March 31, 2009. Around 63.87% of the net assets were invested in debt and money market
instruments, 29.01% were invested in reverse repos / CBLO and 7.12% was invested in net current assets
as at March 31, 2010.
HUSBF has underperformed its benchmark index as incremental investments have been made very
Date of Inception: 17 October, 2006 Compounded Annualized Returns (%)

HSBC Ultra Short Term Bond Fund - 3.74 6.65 6.85
Regular – Growth
CRISIL Liquid Fund Index 3.93 6.80 6.74


MARKET OVERVIEW
sector spending.
markets.
around the world.

Trustees’ Report
MARKET OUTLOOK

Trustees’ Report
Debt Market Outlook

side inflation.

MANAGEMENT COMPANY
a) Sponsor
Board of India.

Trustees’ Report
b) HSBC Mutual Fund





Regulations, 1996.

Nil

Trustees’ Report
Limited).

are as follows:
IA Dividend on 1 61 62 0 0 0 0 0 0 0 0
Units
IB Interest on 0 0 0 0 0 0 0 0 0 0 0
delayed
payment of
Dividend
IC Redemption 2 57 59 0 0 0 0 0 0 0 0
Proceeds
ID Interest on 0 0 0 0 0 0 0 0 0 0 0
delayed
payment of
Redemption
statement of
account/ Unit
Certificate
Statement of
Account
Annual Report/
Abridged
Summary
between
schemes

Trustees’ Report
switch between
schemes
III C Deviation 0 3 3 0 0 0 0 0 0 0 0
from Scheme
attributes
charges/load
of changes viz.
address, PAN,
bank details,
nomination etc.
IV Others** 10 1621 1631 0 0 0 0 0 0 0 0
TOTAL 13 1846 1859 0 0 0 0 0 0 0 0
Note:
9. ACKNOWLEDGEMENTS
Sd/-
N. P. Gidwani
Chairman
MUMBAI
July 20, 2010

Auditors’ Report

HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Ultra Short Term Bond Fund (The
“Scheme”) as at March 31, 2010, the related Revenue Account for the year ended on that date and
the Cash Flow Statement for the year ended on that date which we have signed under reference to this
and fair view of the state of affairs of HSBC Mutual Fund – HSBC Ultra Short Term Bond Fund as at
March 31, 2010, its net surplus and its cash flows for the year ended on that date.
(ii) The Balance Sheet as at March 31, 2010 and Revenue Account for the year ended on that date,

Sd/-
Vivek Prasad
Partner
Place : Mumbai

Rs. in Lakhs
HSBC ULTRA SHORT TERM BOND FUND
As at As at
March 31, 2010 March 31, 2009
LIABILITIES
1 Unit Capital 49,298.93 94,848.26
2.1 Unit Premium Reserves 16.00 (118.93)
2.3 Other Reserves 1,923.00 3,640.11
4.1 Provision for doubtful Income/Deposits – –
TOTAL 51,594.36 99,215.20
ASSETS
1 Investments
1.3 Unlisted Securities:
1.3.5 Securitised Debt securities 1,711.12 18,081.13
1.7 Certificate of Deposits – 1,588.05
2 Deposits 2,031.00 1,010.00
3.3 Others 1,889.30 3,148.31
TOTAL 51,594.36 99,215.20
10

Rs. in Lakhs
Current Previous
March 31, 2010 March 31, 2009
1 INCOME
1.2 Interest 4,070.88 26,997.42
1.4 Realised Gains / (Losses) on Interscheme sale of investments – (14.86)
1.5 Realised Gains / (Losses) on External sale / (54.71) (158.79)
1.7 Other Income 1.88 2.58
(A) 4,018.05 26,826.35
2 EXPENSES
2.8 Audit fees 0.50 1.50
(B) 856.21 1,426.53
FOR THE YEAR (A - B = C) 3,161.84 25,399.82
value of investments (D) – –
FOR THE YEAR [E = (C-D)] 3,161.84 25,399.82
FOR THE YEAR (E + F = G) 3,113.10 25,433.33
7.2 Less: Balance transfer to (48.74) 33.51
Unrealised Appreciation Reserve
7.5 Transfer from Unit Premium Reserve – 0.73
8 TOTAL 960.92 19,383.16
9.1 Income Distributed during the year 2,075.16 16,632.14
9.2 Tax on income distributed during the year 344.04 3,218.67
carried forward to Balance Sheet (1,458.28) (467.65)
11


Current Previous
March 31, 2010 March 31, 2009
Open
Regular Daily Dividend Option 10.0122 10.0122
Institutional Daily Dividend Option 10.0125 10.0125
Institutional Monthly Dividend Option 10.1476 10.0834
Institutional Plus Daily Dividend Option 10.0506 10.0126
High
Low
12


Current Previous
March 31, 2010 March 31, 2009
End
End 51,239 98,419
Average (AAuM)1 79,681 308,140
4. Expense Ratio:
Regular Daily Dividend Option 1.30% 0.84%
Institutional Daily Dividend Option 1.05% 0.60%
Institutional Monthly Dividend Option 1.05% 0.60%
Institutional Plus Daily Dividend Option 0.67% 0.31%
13


Current Previous
March 31, 2010 March 31, 2009
the year (planwise)
Retail
Corporate
8. Returns (%):
a. Last One Year
Scheme
14


Current Previous
March 31, 2010 March 31, 2009
Benchmark
CRISIL Liquid Fund Index 3.9300 8.7800
b. Since Inception
Scheme
Benchmark
1
2
3
4
15


1 Investments:
1.2. Open Positions of derivatives as of March 31, 2010 is NIL. Open Positions of derivatives as of March
31, 2009 end is NIL.
(Rupees)

schemes
2010 2009
Shanghai Banking
Corporation Limited
and 2009 are NIL.

2010 2009
– Appreciation 118,650 0.0023% 552,846 0.0056%
– Depreciation 10 0.0000% 7 0.0000%
– Appreciation 2,182 0.0000% 4,506,181 0.0458%
– Depreciation – – 64,584 0.0007%
1.7. The aggregate value of investment securities purchased (excluding accretion of discount of
Rs. 16,855,956) and sold (including matured) during the financial year 2009-2010 are Rs. Nil and
The aggregate value of investment purchased (excluding accretion of discount of Rs. 1,434,575,544)
and sold (including matured) during the financial year 2008-2009 is Rs. 215,473,358,101 and
Aggregate Value of Equity, Debt & Money Market Instruments and their percentages to Net assets
are as under:
16

Security Category Fair Value % to Net Fair Value % to Net

(Rs.) Assets (Rs.) Assets
2010 2009
Debt Instruments 3,272,062,567 63.8586 7,052,632,706 71.6590
Money market – – 158,805,411 1.6136
Instruments
Total 3,272,062,567 63.8586 7,211,438,117 73.2725
to Rs. 62,633.
Rs. 3,131.

companies
Shanghai Banking
Corporation Limited
Securities (India)
Limited

companies basis)
The Hongkong and Associate 2008-2009 2,226.38 20.00 12,246,089 11.01
Shanghai Banking
Corporation Limited
March 31, 2010 and March 31, 2009.
17

2009-2010
Description
Regular Growth 30,701,774.121 64,545,530.369 70,827,353.932 24,419,950.558 244,199,507
Regular Daily 325,722,386.273 407,087,307.877 548,342,613.864 184,467,080.286 1,844,670,802
Dividend
Regular Weekly 84,576,307.762 121,748,732.303 141,012,552.697 65,312,487.368 653,124,874
Dividend
Dividend
Dividend
Institutional Monthly 12,394,879.767 4,722,154.825 11,801,253.362 5,315,781.230 53,157,812
Dividend
Growth
Daily Dividend
Weekly Dividend
Monthly Dividend
2008-2009
Description
Regular Growth 12,947,562.502 99,469,516.553 81,715,304.934 30,701,774.121 307,017,741
Regular Daily 342,608,641.233 1,185,144,871.026 1,202,031,125.986 325,722,386.273 3,257,223,863
Dividend
Regular Weekly 80,326,610.335 315,343,532.080 311,093,834.653 84,576,307.762 845,763,078
Dividend
Institutional Daily 351,092,342.074 1,242,088,327.212 1,443,958,412.264 149,222,257.022 1,492,222,570
Dividend
Dividend
Dividend
Institutional Plus 258,473,165.696 3,733,880,271.611 3,890,907,629.989 101,445,807.318 1,014,458,073
Growth
Institutional Plus 1,273,900,193.819 7,653,158,455.898 8,789,205,449.593 137,853,200.124 1,378,532,001
Daily Dividend
Institutional Plus 235,516,908.995 1,262,013,895.241 1,458,058,925.723 39,471,878.513 394,718,785
Weekly Dividend
Monthly Dividend
18

5 Prior year amounts have been re-grouped and reclassified, wherever applicable, to confirm to current
8 Other income represents write back of excess provision of prior years as they are no longer required and
compensation from an external party for an operational accident.
19

DISCLAIMERS
Statutory Details:
Risk Factors:
AMC does not indicate the future performance of the Scheme(s) of the Mutual Fund. HSBC Ultra
Short Term Bond Fund (HUSBF) is the name of the Scheme and does not in any manner indicate
Terms of Issue:

Exit: Nil.
CRISIL Limited.
20

HSBC Cash Fund
An open-ended liquid Scheme
CASH FUND.indd 1 27/07/2010 3:19:30 PM

Dear Investor,
Yours sincerely,
Vikramaaditya
CASH FUND.indd 3 27/07/2010 3:19:31 PM

SPONSOR
TRUSTEE
Board of Trustees

CUSTODIAN

Price Waterhouse
LEGAL ADVISORS
Bharucha & Partners

BOARD OF TRUSTEES
Mr. Nasser Munjee
Mr. Manu Tandon
Mr. Mehli Mistri
BOARD OF DIRECTORS
Mr. Ayaz Ebrahim
Mr. S. P. Mustafa
Mr. Ashok Jha*
CASH FUND.indd 4 27/07/2010 3:19:31 PM

Trustees’ Report

HSBC Cash Fund (HCF) – an open-ended Liquid Scheme
HCF aims to provide reasonable returns, commensurate with low risk while providing a high level of
liquidity, through a portfolio of money market and debt securities. However, there can be no assurance
that the scheme objective can be realised.
The net assets of HCF amounted to Rs. 470.59 crores as at March 31, 2010 as compared to Rs. 492.65
crores as at March 31, 2009. Around 59.44% were invested in debt and money market instruments,
38.68% of the net assets were invested in reverse repos / CBLO and 1.88% in net current assets as at
March 31, 2010.
HCF has underperformed its benchmark index as incremental investments have been made very
Date of Inception: Simple Annualized Compounded Annualized Returns (%)

04 December, 2002 Returns (%)
Scheme & Benchmark 3 Months 6 Months 1 Year 3 Years 5 Years Since
Inception
HSBC Cash Fund – 2.66 2.36 2.16 5.68 5.86 5.58
Regular – Growth
CRISIL Liquid Fund Index 3.69 3.18 3.68 6.65 6.23 5.63


MARKET OVERVIEW
sector spending.
markets.
CASH FUND.indd 5 27/07/2010 3:19:31 PM

Trustees’ Report
around the world.
MARKET OUTLOOK
CASH FUND.indd 6 27/07/2010 3:19:31 PM

Trustees’ Report
Debt Market Outlook

side inflation.
CASH FUND.indd 7 27/07/2010 3:19:31 PM

Trustees’ Report

MANAGEMENT COMPANY
a) Sponsor
Board of India.
b) HSBC Mutual Fund




CASH FUND.indd 8 27/07/2010 3:19:31 PM

Trustees’ Report

Regulations, 1996.

Nil
Company has extended the facility of crediting investor bank accounts directly by way of NEFT / RTGS
(for credit of redemption and dividend proceeds). Dividend payouts are done within 5 working days from
the record date in all schemes. The internal standards on redemption payouts have been consistently met,
with very few exceptions. The number of locations for the ECS Auto Debit facility for investments through
Systematic Investment Plan also increased to about 87 by March 2010.
Limited).

are as follows:
IA Dividend on 1 61 62 0 0 0 0 0 0 0 0
Units
IB Interest on 0 0 0 0 0 0 0 0 0 0 0
delayed
payment of
Dividend
IC Redemption 2 57 59 0 0 0 0 0 0 0 0
Proceeds
CASH FUND.indd 9 27/07/2010 3:19:31 PM

Trustees’ Report
ID Interest on 0 0 0 0 0 0 0 0 0 0 0
delayed
payment of
Redemption
statement of
account/ Unit
Certificate
Statement of
Account
Annual Report/
Abridged
Summary
between
schemes
switch between
schemes
III C Deviation 0 3 3 0 0 0 0 0 0 0 0
from Scheme
attributes
charges/load
of changes viz.
address, PAN,
bank details,
nomination etc.
IV Others** 10 1621 1631 0 0 0 0 0 0 0 0
TOTAL 13 1846 1859 0 0 0 0 0 0 0 0
Note:
CASH FUND.indd 10 27/07/2010 3:19:32 PM

Trustees’ Report
9. ACKNOWLEDGEMENTS
Sd/-
N. P. Gidwani
Chairman
MUMBAI
July 20, 2010
CASH FUND.indd 11 27/07/2010 3:19:32 PM

Auditors’ Report

HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Cash Fund (The “Scheme”) as at
and fair view of the state of affairs of HSBC Mutual Fund – HSBC Cash Fund as at March 31, 2010,
its net surplus and its cash flows for the year ended on that date.
(ii) The Balance Sheet as at March 31, 2010, and Revenue Account for the year ended on that date,

Sd/-
Vivek Prasad
Partner
Place : Mumbai
10
CASH FUND.indd 12 27/07/2010 3:19:32 PM

Rs. in Lakhs
HSBC CASH FUND
As at As at
March 31, 2010 March 31, 2009
LIABILITIES
1 Unit Capital 45,365.60 46,008.96
2.3 Other Reserves 1,643.95 3,166.94
TOTAL 48,384.83 50,553.70
ASSETS
1 Investments
1.1.4 Other Debentures & Bonds – 1,483.33
1.6 Commercial Paper 4,995.27 2,259.19
1.7 Certificate of Deposits 22,656.56 193.28
2 Deposits 2,061.88 2,826.38
3.3 Others 20.74 99.52
TOTAL 48,384.83 50,553.70
11
CASH FUND.indd 13 27/07/2010 3:19:32 PM

Rs. in Lakhs
HSBC CASH FUND
Current Previous
March 31, 2010 March 31, 2009
1 INCOME
1.2 Interest 1,715.40 12,212.11
1.5 Realised Gains / (Losses) on External sale / redemption of (5.07) 64.51
investments
1.7 Other Income 0.03 0.39
(A) 1,710.36 12,320.69
2 EXPENSES
2.8 Audit fees 1.00 3.00
2.10 Expenses to be Reimbursed by the Investment Manager – –
(B) 302.31 605.76
FOR THE YEAR (A - B = C) 1,408.05 11,714.93
value of investments (D) – (0.07)
FOR THE YEAR [E = (C - D)] 1,408.05 11,715.00
FOR THE YEAR (E + F = G) 1,408.05 11,715.00
8 TOTAL 36.75 2,705.99
9.1 Income Distributed during the year 943.35 5,545.32
9.2 Tax on income distributed during the year 267.20 1,570.71
carried forward to Balance Sheet (1,173.80) (4,410.04)
12
CASH FUND.indd 14 27/07/2010 3:19:32 PM

HSBC CASH FUND

Current Previous
March 31, 2010 March 31, 2009
Open
High
Low
13
CASH FUND.indd 15 27/07/2010 3:19:32 PM

HSBC CASH FUND

Current Previous
March 31, 2010 March 31, 2009
End
End 47,060 49,265
Average (AAuM)1 54,692 151,680
4. Expense Ratio:
14
CASH FUND.indd 16 27/07/2010 3:19:32 PM

HSBC CASH FUND

Current Previous
March 31, 2010 March 31, 2009
the year (planwise)
Retail
Corporate
8. Returns (%):
a. Last One Year
Scheme
15
CASH FUND.indd 17 27/07/2010 3:19:32 PM

HSBC CASH FUND

Current Previous
March 31, 2010 March 31, 2009
Benchmark
b. Since Inception
Scheme
Benchnmark
1
2
3
4
Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year .
16
CASH FUND.indd 18 27/07/2010 3:19:32 PM

HSBC CASH FUND

1 Investments:
(Rupees)
by all schemes by all schemes
2010 2009
Shanghai Banking
Corporation Limited
and 2009 are NIL.
1.6. Aggregate Unrealised Gain / Loss as at the end of the Financial year March 31, 2010 and March

2010 2009
1.7. The aggregate value of investment securities purchased (excluding accretion of discount
of Rs. 60,417,423) and sold (including matured) during the financial year 2009-2010 are
The aggregate value of investment securities purchased (excluding accretion of discount
of Rs.765,499,693) and sold (including matured) during the financial year 2008 - 2009 is
under:

2010 2009
Debt Instruments 32,026,000.00 0.68% 254,528,096.23 5.17%
Money market 2,765,182,927.91 58.76% 245,246,153.84 4.98%
Instruments
Total 2,797,208,927.91 59.44% 499,774,250.07 10.14%
17
CASH FUND.indd 19 27/07/2010 3:19:32 PM

to Rs. 99,605.
Rs. 56,595.

companies
Shanghai Banking
Corporation Limited
Securities (India)
Limited

companies basis)
The Hongkong and Associate 2008 - 2009 2,059.63 97.17 5,425,600 13.18
Shanghai Banking
Corporation Limited
3 Large Holdings in the Scheme (i.e. in excess of 25% of the net assets):
Name of the No. of % Holdings No. of % Holdings

Scheme holders holders
2010 2009
HSBC Cash Fund 1 43.56% – –
2009-2010
Description
Regular Growth Option 19,452,526.536 40,702,731.451 47,501,799.529 12,653,458.458 126,534,586
Regular Daily 117,952,996.359 111,772,395.587 152,626,435.077 77,098,956.869 770,989,569

Dividend Option
Regular Weekly 17,184,208.603 32,470,981.303 35,083,157.976 14,572, 031.930 145,720,318
Dividend Option
Institutional Growth 1,626,747.666 13,927,700.773 14,617,535.753 936,912.686 9,369,127
Option
18
CASH FUND.indd 20 27/07/2010 3:19:32 PM

2009-2010
Description
Dividend Option
Dividend Option
Institutional Monthly 554,781.289 545,778.993 545,779.011 554,781.271 5,547,813
Dividend Option
Growth Option
Institutional Plus Daily 162,235,389.474 50,830,039,645.693 50,696,026,293.396 296,248,741.771 2,962,487,418
Dividend Option
Weekly Dividend
Option
Institutional Plus Monthly 6,043,642.284 9,782,490.220 11,657,531.577 4,168,600.927 41,686,009
Dividend Option
2008-2009
Description
Regular Growth Option 23,543,346.007 69,745,617.114 73,836,436.585 19,452,526.536 194,525,264
Regular Daily 168,782,960.991 308,519,010.875 359,348,975.507 117,952,996.359 1,179,529,964
Dividend Option
Regular Weekly 31,459,108.549 64,387,773.406 78,662,673.352 17,184,208.603 171,842,086
Dividend Option
Option
Dividend Option
Dividend Option
Institutional Monthly 2,187,696.477 5,871,186.049 7,504,101.237 554,781.289 5,547,813
Dividend Option
Growth Option
Institutional Plus Daily 608,832,365.711 46,426,054,733.863 46,872,651,710.100 162,235,389.474 1,622,353,895
Dividend Option
Institutional Plus Weekly 18,231,462.834 1,132,765,270.417 1,124,658,888.814 26,337,844.437 263,378,444
Dividend Option
Monthly Dividend
Option
8 Miscellaneous Income represents excess provision of previous year written back which is no longer
required.
19
CASH FUND.indd 21 27/07/2010 3:19:32 PM

DISCLAIMERS
Statutory Details:
Risk Factors:
AMC does not indicate the future performance of the Scheme(s) of the Mutual Fund. HSBC Cash
Fund (HCF) is the name of the Scheme and does not in any manner indicate the quality of the
Terms of Issue:
Exit: Nil.
CRISIL Limited.
20
CASH FUND.indd 22 27/07/2010 3:19:32 PM

HSBC Gilt Fund
An open-ended gilt Scheme
GILT FUND.indd 1 27/07/2010 3:17:53 PM

Dear Investor,
Yours sincerely,
Vikramaaditya
GILT FUND.indd 3 27/07/2010 3:17:59 PM

SPONSOR
TRUSTEE
Board of Trustees

CUSTODIAN

Price Waterhouse
LEGAL ADVISORS
Bharucha & Partners

BOARD OF TRUSTEES
Mr. Nasser Munjee
Mr. Manu Tandon
Mr. Mehli Mistri
BOARD OF DIRECTORS
Mr. Ayaz Ebrahim
Mr. S. P. Mustafa
Mr. Ashok Jha*
GILT FUND.indd 4 27/07/2010 3:18:00 PM

Trustees’ Report

HSBC Gilt Fund (HGF) – an open-ended Gilt Scheme
HGF seeks to generate reasonable returns through investments in Government Securities (G-Secs) of
various maturities. The AMC’s view of interest rate trends and the nature of the plans will be reflected in
the maturities of securities in which the Plans are invested.
The net assets of HGF amounted to Rs. 0.42 crores as at March 31, 2010 as compared to Rs. 17.96 crores
as at March 31, 2009. Around 96.85% of the net assets were invested in reverse repos / CBLO and 3.15%
was invested in net current assets as at March 31, 2010.
HGF underperformed its benchmark index as low assets under management for an extended period had
constrained ability to actively manage the scheme. However, as active duration management started with
some growth in assets over recent years, the scheme has outperformed the benchmark over the last 1 year.

HSBC Gilt Fund – Growth 7.57 1.16 2.41 2.36
I Sec Composite Index 4.42 8.74 7.24 6.07

MARKET OVERVIEW
sector spending.
markets.
around the world.
GILT FUND.indd 5 27/07/2010 3:18:00 PM

Trustees’ Report
MARKET OUTLOOK
their world doing their best to enable the economies to come out of the sub-crisis that had led to recession
in developed nations and slowdown in emerging economies. And these efforts led to slow and gradual
improvemnet in the economic recovery process with growth in emerging economics picking up sharply
even though the developed economies continued to improve slowly. But over the last few months, we
saw the Greek crisis become bigger which eventually culminated in a ~1 trillion Euros headline package
by the European Union and International Monetary Fund to support fiscally strained Euro Area member
countries, all of which comes with severe austerity measures, has once again brought to the fore issues
regarding deficits and debt sustainability. This led to enormous uncertainty and nervousness in all the asset
markets globally thereby leading to contraction in the investors risk appetite. So now apart from concerns
on China’s overheated property market focus shifted to the Euro region uncertainty. So overall the next
year is going to be very crucial with respect to the direction of the economic environment amidst all this
uncertainty.
GILT FUND.indd 6 27/07/2010 3:18:00 PM

Trustees’ Report
Debt Market Outlook
side inflation.

MANAGEMENT COMPANY
a) Sponsor
Board of India.
GILT FUND.indd 7 27/07/2010 3:18:00 PM

Trustees’ Report
b) HSBC Mutual Fund

3. INVESTMENT OBJECTIVE OF THE SCHEMES

The investment objective of the respective Schemes has been provided above under the heading “Scheme
Performance, Future Outlook and Operation of the Scheme” (refer Section 1).

Regulations, 1996.

HSBC Gilt Fund 7,396 2 – –
Company has extended the facility of crediting investor bank accounts directly by way of NEFT / RTGS
(for credit of redemption and dividend proceeds). Dividend payouts are done within 5 working days from
the record date in all schemes. The internal standards on redemption payouts have been consistently met,
GILT FUND.indd 8 27/07/2010 3:18:00 PM

Trustees’ Report
with very few exceptions. The number of locations for the ECS Auto Debit facility for investments through
Systematic Investment Plan also increased to about 87 by March 2010.
Limited).

are as follows:
IA Dividend on 1 61 62 0 0 0 0 0 0 0 0
Units
IB Interest on 0 0 0 0 0 0 0 0 0 0 0
delayed
payment of
Dividend
IC Redemption 2 57 59 0 0 0 0 0 0 0 0
Proceeds
ID Interest on 0 0 0 0 0 0 0 0 0 0 0
delayed
payment of
Redemption
statement of
account/ Unit
Certificate
Statement of
Account
Annual Report/
Abridged
Summary
between
schemes
GILT FUND.indd 9 27/07/2010 3:18:00 PM

Trustees’ Report
switch between
schemes
III C Deviation 0 3 3 0 0 0 0 0 0 0 0
from Scheme
attributes
charges/load
of changes viz.
address, PAN,
bank details,
nomination etc.
IV Others** 10 1621 1631 0 0 0 0 0 0 0 0
TOTAL 13 1846 1859 0 0 0 0 0 0 0 0
Note:
9. ACKNOWLEDGEMENTS
Sd/-
N. P. Gidwani
Chairman
MUMBAI
July 20, 2010
GILT FUND.indd 10 27/07/2010 3:18:00 PM

Auditors’ Report

HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Gilt Fund (“The Scheme”) as at
confirmation of unit capital balances as at March 31, 2010 by correspondence with the registrar and
transfer agent. An audit also includes assessing the accounting principles used and significant estimates
made by the Management as well as evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.
fair view of the state of affairs of HSBC Mutual Fund – HSBC Gilt Fund as at March 31, 2010, its
net surplus and its cash flows for the year ended on that date.

Sd/-
Vivek Prasad
Partner
Place : Mumbai
GILT FUND.indd 11 27/07/2010 3:18:00 PM

Rs. in Lakhs
HSBC GILT FUND
As at As at
March 31, 2010 March 31, 2009
LIABILITIES
1 Unit Capital 38.03 1,952.68
2.1 Unit Premium Reserves (26.34) 22.24
2.3 Other Reserves 30.56 (179.28)
TOTAL 43.23 1,811.52
ASSETS
1 Investments
1.4 Government Securities – 1,269.30
Total Investments – 1,269.30
2 Deposits – –
3.3 Others 0.01 63.00
TOTAL 43.23 1,811.52
10
GILT FUND.indd 12 27/07/2010 3:18:00 PM

Rs. in Lakhs
HSBC GILT FUND
Current Previous
March 31, 2010 March 31, 2009
1 INCOME
1.2 Interest 25.78 458.99
1.5 Realised Gains / (Losses) on External sale / redemption of (3.42) (580.67)
investments
(A) 22.36 (121.68)
2 EXPENSES
2.4 Custodian fees – 0.57
2.8 Audit fees 0.12 0.05
(B) 3.95 54.95
FOR THE YEAR (A - B = C) 18.41 (176.63)
FOR THE YEAR [E = (C - D)] 66.89 (225.11)
FOR THE YEAR (E + F = G) 66.89 (225.11)
7.2 Less: Balance transfer to – –
Unrealised Appreciation Reserve
7.3 Add / (Less): Equalisation 142.95 354.28
7.4 Transfer from Reserve Fund – 0.02
8 TOTAL 209.84 129.19
9.1 Income Distributed during the year – 267.69
9.2 Tax on income distributed during the year – 47.85
209.84 (186.35)
carried forward to Balance Sheet
11
GILT FUND.indd 13 27/07/2010 3:18:00 PM

HSBC GILT FUND

Current Previous
March 31, 2010 March 31, 2009
Open
Monthly Dividend Option 9.4995 10.7428
Weekly Dividend Option 8.8405 –
High
Weekly Dividend Option 9.5097 10.1128
Low
End
End 42.24 1,796
Average (AAuM)1 522.75 7,314
4. Expense Ratio:
Monthly Dividend Option 0.75% 0.75%
Weekly Dividend Option 0.75% 0.75%
Monthly Dividend Option 0.34% 0.31%
Weekly Dividend Option 0.34% 0.31%
Retail
Monthly Dividend Option – 0.4071
Weekly Dividend Option – 0.1046
12
GILT FUND.indd 14 27/07/2010 3:18:00 PM

HSBC GILT FUND

Current Previous
March 31, 2010 March 31, 2009
Corporate
Monthly Dividend Option – 0.1278
Weekly Dividend Option – 0.0974
8. Returns (%):
a. Last One Year
Scheme
Monthly Dividend Option 7.5699 (8.1709)
Weekly Dividend Option 7.5697 –
Benchmark
I-Sec Composite Index 4.4200 12.8300
b. Since Inception
Scheme
Weekly Dividend Option (2.6716) (22.6382)
Benchmark
I-Sec Composite Index 6.0700 6.3800
1
2
3
4
13
GILT FUND.indd 15 27/07/2010 3:18:00 PM

HSBC GILT FUND

1 Investments:
(Rupees)
Type Investments by Investments
all schemes by all schemes
2010 2009
Shanghai Banking
Corporation Limited
1.4. Open positions of Securities Borrowed and / or Lent by the scheme as of the years ended March
31, 2010 and March 31, 2009 are NIL.
1.6. Aggregate Unrealised Gain / Loss as at the end of the Financial year and their percentages to net
assets are as under:
Security Category Amount Percentage to Amount Percentage to
2010 2009
– Depreciation – – 4,848,166 2.70%
1.7. The aggregate value of investments securities purchased (excluding accretion of discount of
Rs. 187,184) and sold during the financial year 2009-2010 is Rs. 829,684,134 and Rs. 961,307,513
Rs.NIL) and sold during the financial year 2008-2009 is Rs. 1,184,011,556 and Rs. 994,165,715
1.8. Non-Traded securities in the portfolios as at March 31, 2010 and March 31, 2009 are NIL.
to Rs. 23.
Name of Sponsor / AMC Nature of Period Business Given % of Total Business Commission % of Total
and its associate / related Association / Covered [Rs. in Crores] received by the paid commission paid
parties / group companies Nature of Relation Fund [Rs.] by the Fund
The Hongkong and Associate 2009-2010 0.43 6.64 11,295 7.50
Shanghai Banking
Corporation Limited
HSBC InvestDirect Associate 2009-2010 – – 564 0.37
14
GILT FUND.indd 16 27/07/2010 3:18:00 PM


AMC and its Association Covered Given Business paid commission
associate / related /Nature of [Rs. in Crores] received by [Rs.] paid by the
companies basis)
Shanghai Banking
Corporation Limited
3 Large Holdings in the Scheme (i.e. in excess of 25% of the net assets).
Name of Scheme No. of holders % Holding No. of holders % Holding

2010 2009
HSBC Gilt Fund – – 1 31.12%
2009-2010
Description
Regular Growth 2,554,537.361 93,544.839 2,371,930.759 276,151.441 2,761,513
Option
Monthly 3,037,397.103 448,522.876 3,437,292.390 48,627.589 486,275

Dividend Option
Weekly Dividend 13,934,870.718 6,553,849.420 20,433,246.964 55,473.174 554,731
Option
2008-2009
Description
Regular Growth 425,297.259 30,587,968.620 28,458,728.518 2,554,537.361 25,545,374
Option
Monthly 449,571.839 133,376,429.531 130,788,604.267 3,037,397.103 30,373,971
Dividend Option
Weekly Dividend – 455,468,300.800 441,533,430.082 13,934,870.718 139,348,707
Option

15
GILT FUND.indd 17 27/07/2010 3:18:00 PM

DISCLAIMERS
Statutory Details:
Risk Factors:
AMC does not indicate the future performance of the Scheme(s) of the Mutual Fund. HSBC Gilt
Fund (HGF) is the name of the Scheme and does not in any manner indicate the quality of the
Terms of Issue:

Exit: 0.5% if redeemed / switched out with 6 months from date of investment.

CRISIL Limited.
16
GILT FUND.indd 18 27/07/2010 3:18:00 PM

HSBC Flexi Debt Fund
An open ended debt Scheme
Flexi Debt Fund.indd 1 26/07/2010 4:45:39 PM

Dear Investor,
Yours sincerely,
Vikramaaditya

SPONSOR
TRUSTEE
Board of Trustees

CUSTODIAN

Price Waterhouse
LEGAL ADVISORS
Bharucha & Partners

BOARD OF TRUSTEES
Mr. Nasser Munjee
Mr. Manu Tandon
Mr. Mehli Mistri
BOARD OF DIRECTORS
Mr. Ayaz Ebrahim
Mr. S. P. Mustafa
Mr. Ashok Jha*

Trustees’ Report

HSBC Flexi Debt Fund (HFDF) - an open ended Debt Scheme
HFDF seeks to deliver returns in the form of interest income and capital gains, along with high liquidity,
commensurate with the current view on the markets and the interest rate cycle, through active investment
in debt and money market instruments.
The net assets of HFDF amounted to Rs. 102.42 crores as at March 31, 2010 as compared to Rs. 316.84
crores as at March 31, 2009. Around 96.32% of the net assets were invested in debt and money market
instruments, 4.10% were invested in net current assets and (0.42)% was invested in reverse repos / CBLO
as at March 31, 2010.
HFDF has outperformed its benchmark index through relatively active management of duration.
Date of Inception: 05 October, 2007 Compounded Annualized Returns (%)

HSBC Flexi Debt Fund – Growth 6.90 9.25
CRISIL Composite Bond Fund Index 5.38 6.50


MARKET OVERVIEW
sector spending.
markets.
around the world.

Trustees’ Report
MARKET OUTLOOK

Trustees’ Report
Debt Market Outlook

side inflation.

MANAGEMENT COMPANY
a) Sponsor
Board of India.
b) HSBC Mutual Fund

with the provisions of the Indian Trusts Act, 1882 (2 of 1882) vide a Trust Deed dated February 7, 2002

Trustees’ Report
with HSBC Securities and Capital Markets (India) Private Limited, as the Sponsor and the Board of
Individual Trustees. The Trustee has entered into an Investment Management Agreement dated




Regulations, 1996.

HSBC Flexi Debt Fund 17 1 – –

Trustees’ Report
Limited).

are as follows:
IA Dividend on 1 61 62 0 0 0 0 0 0 0 0
Units
IB Interest on 0 0 0 0 0 0 0 0 0 0 0
delayed
payment of
Dividend
IC Redemption 2 57 59 0 0 0 0 0 0 0 0
Proceeds
ID Interest on 0 0 0 0 0 0 0 0 0 0 0
delayed
payment of
Redemption
statement of
account/ Unit
Certificate
Statement of
Account
Annual Report/
Abridged
Summary
between
schemes

Trustees’ Report
switch between
schemes
III C Deviation 0 3 3 0 0 0 0 0 0 0 0
from Scheme
attributes
charges/load
of changes viz.
address, PAN,
bank details,
nomination etc.
IV Others** 10 1621 1631 0 0 0 0 0 0 0 0
TOTAL 13 1846 1859 0 0 0 0 0 0 0 0
Note:
9. ACKNOWLEDGEMENTS
Sd/-
N. P. Gidwani
Chairman
MUMBAI
July 20, 2010

Auditors’ Report

HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Flexi Debt Fund (The “Scheme”) as
at March 31, 2010 and the related Revenue Account for the year ended on that date both of which
were necessary for the purposes of our audit. The Balance Sheet and Revenue Account referred to
above are in agreement with the books of account of the Scheme.
required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and the
amendments thereto, as applicable, and also give respectively a true and fair view of the state of
affairs of HSBC Mutual Fund – HSBC Flexi Debt Fund as at March 31, 2010 and its net surplus for
the year ended on that date.

Sd/-
Vivek Prasad
Partner
Place : Mumbai

Rs. in Lakhs
HSBC FLEXI DEBT FUND
As at As at
March 31, 2010 March 31, 2009
LIABILITIES
1 Unit Capital 9,307.33 29,868.43
2.1 Unit Premium Reserves (58.18) 1,014.82
2.3 Other Reserves 992.29 659.15
TOTAL 10,301.06 32,112.57
ASSETS
1 Investments
1.3.4 Other Debentures & Bonds 9.89 206.94
1.4 Government Securities – 11,625.91
2 Deposits – –
3.3 Others 10.10 1,391.77
TOTAL 10,301.06 32,112.57
10

Rs. in Lakhs
Current Previous
March 31, 2010 March 31, 2009
1 INCOME
1.2 Interest 859.56 1,378.18
1.4 Realised Gains / (Losses) on Interscheme sale of investments (28.31)
1.5 Realised Gains / (Losses) on External sale / redemption of 848.63 (242.09)
investments
(A) 1,708.50 1,107.78
2 EXPENSES
2.5 Commission to Agents* – –
2.7 Audit fees 0.50 1.00
(B) 254.59 257.99
FOR THE YEAR (A - B = C) 1,453.91 849.79
FOR THE YEAR [E = (C - D)] 1,845.37 547.98
FOR THE YEAR (E + F = G) 1,709.87 676.80
7.3 Add / (Less): Equalisation (876.61) 821.97
7.5 Transfer from Unit Premium Reserve – 6.62
8 TOTAL 982.41 1,484.85
carried forward to Balance Sheet 346.80 437.23
11


Current Previous
March 31, 2010 March 31, 2009
Open
Regular Fortnightly Dividend Option 10.3662 10.0315
Regular Quarterly Dividend Option 10.7885 –
Regular Half Yearly Dividend Option 9.8005 –
Institutional Fortnightly Dividend Option 9.7535 10.0302
Institutional Quarterly Dividend Option 10.6734 –
Institutional Half Yearly Dividend Option – –
High
Regular Half Yearly Dividend Option 10.3551 10.6149
Institutional Quarterly Dividend Option 11.2508 11.6816
Institutional Half Yearly Dividend Option – 10.1428
Low
12


Current Previous
March 31, 2010 March 31, 2009
End
End 10,247 31,684
1
Average (AAuM) 16,219 16,822
4. Expense Ratio:
Regular Fortnightly Dividend Option 1.86% 1.77%
Regular Half Yearly Dividend Option 1.86% 1.77%
Institutional Fortnightly Dividend Option 1.51% 0.72%
Institutional Quarterly Dividend Option 1.51% 0.72%
Institutional Half Yearly Dividend Option 1.51% 0.72%
Regular Fortnightly Dividend Option 0.73% 0.61%
Regular Half Yearly Dividend Option 0.73% 0.61%
Institutional Fortnightly Dividend Option 0.73% 0.61%
13


Current Previous
March 31, 2010 March 31, 2009
Institutional Quarterly Dividend Option 0.73% 0.01
Institutional Half Yearly Dividend Option 0.73% 0.01
Retail
Corporate
8. Returns (%):
a. Last One Year
Scheme
Regular Quarterly Dividend Option 6.4166 –
14


Current Previous
March 31, 2010 March 31, 2009
Institutional Quarterly Dividend Option 6.6757 –
Benchmark
b. Since Inception
Scheme
Regular Growth 9.2478 10.8635
Regular Half Yearly Dividend Option 3.4705 (6.9350)
Institutional growth 9.6314 11.2524
Benchmark
1
2
3
4
15


1 Investments:
1.2. Open Positions of derivatives as a % to Net Assets as of year ended March 31, 2010 is Nil. Open
Positions of derivatives as a % to Net Assets as of year ended March 31, 2009 is NIL.
1.3. Investments made in Associates and Group Companies:

schemes
2010 2009
Shanghai Banking
Corporation Ltd.
31, 2010 and March 31, 2009 is NIL.
1.5. NPAs as at years ended March 31, 2010 and March 31, 2009 is NIL.
1.6. Aggregate Unrealised Gain / Loss as at the end of the Financial year 2009-10 and percentages to
net assets.

2010 2009
Non-Convertible Debentures and Bonds Listed / Awaiting Listing
– Appreciation 592,346 0.0578% 19,512,641 0.6159%
– Depreciation – – 5,741,501 0.1812%
Non-Convertible Debentures and Bonds Privately Placed
– Appreciation 7,612 0.0007% 403,039 0.0127%
– Depreciation – – 24,486 0.0008%
– Depreciation – – 39,145,803 1.2355%
1.7 The aggregate value of investments securities purchased (excluding accretion of discount of
Rs. 13,501,279) and sold during the financial year 2009-2010 is Rs. 19,227,187,601 and
The aggregate value of investments securities purchased (excluding accretion of discount
of Rs. 7,919,570) and sold during the financial year 2008-2009 is Rs. 15,365,196,103 and
Rs. 14,298,039,929 respectively being 869.38% (annualized) and 809.00% (annualized) of the
16


under:
Security Fair Value % to Net Fair Value % to Net
Category (Rs.) Assets (Rs.) Assets
2010 2009
Equities – – – –
Debt Instruments 160,743,327 15.6862% 1,057,584,131 33.3792%
Money market 825,716,153 80.5778% – –
Instruments
Total 986,459,480 96.2639% 1,057,584,131 33.3792%
Regulations, 1996 as amended, for the year ended March 31, 2010 is as under :
to Rs. 1,680.
companies
Shanghai Banking
Corporation Limited
Securities (India)
Limited

companies basis)
Shanghai Banking
Corporation Limited
3 Large Holdings in the Scheme (i.e. in excess of 25% of the net assets).
Name of Scheme No. of holders % Holding No. of holders % Holding

2010 2009
HSBC Flexi Debt Fund 2 57.03% – –
17

2009-2010
Regular Growth 11,320,074.613 5,141,823.875 11,635,454.773 4,826,443.715 48,264,437
Regular Monthly Dividend 22,377,892.041 2,013,779.622 21,266,996.303 3,124,675.360 31,246,753
Regular Fortnightly 2,851,879.905 503,018.935 2,637,996.105 716,902.735 7,169,028
Dividend
Regular Quarterly 6,647,539.396 1,500,941.400 4,949,894.749 3,198,586.047 31,985,860
Dividend Option
Regular Half Yearly 197,382.137 1,341,015.203 197,382.137 1,341,015.203 13,410,152
Dividend Option
Dividend
Institutional Fortnightly 99,822,416.031 2,048,808.411 67,689,414.002 34,181,810.440 341,818,104
Dividend
Institutional Quarterly 16,293,401.195 4,653,040.877 9,508,005.882 11,438,436.190 114,384,362
Dividend Option
Institutional Half Yearly – – – – –
Dividend Option
2008 - 2009
Regular Growth 635,935.451 12,591,260.792 1,907,121.630 11,320,074.613 113,200,746
Regular Monthly Dividend 6,654,260.050 23,117,440.320 7,393,808.329 22,377,892.041 223,778,920
Regular Fortnightly 3,972,727.223 3,894,517.663 5,015,364.981 2,851,879.905 28,518,799
Dividend
Regular Quarterly – 7,180,810.305 533,270.909 6,647,539.396 66,475,394
Dividend Option
Regular Half Yearly – 197,382.137 – 197,382.137 1,973,821
Dividend Option
Dividend
Institutional Fortnightly 143,490,168.848 229,828,000.535 273,495,753.352 99,822,416.031 998,224,160
Dividend
Institutional Quarterly – 21,443,255.956 5,149,854.761 16,293,401.195 162,934,012
Dividend Option
Institutional Half Yearly – 2,819,475.063 2,819,475.063 – –
Dividend Option

8 Other income represents excess expense provision of previous year written back as the same are no
longer payable.
18

DISCLAIMERS
Statutory Details:
Risk Factors:
AMC does not indicate the future performance of the Scheme(s) of the Mutual Fund. HSBC Flexi
Debt Fund (HFDF) is the name of the Scheme and does not in any manner indicate the quality of
Terms of Issue:

Regular & Institutional Options -
Exit: 0.25% if redeemed / switched out within 3 months from the date of investment.
19

CRISIL Limited.
20

HSBC Fixed Term Series
A close-ended income Scheme
FTS 30 & 66.indd 1 29/07/2010 6:47:11 PM

Dear Investor,
Yours sincerely,
Vikramaaditya
FTS 30 & 66.indd 3 29/07/2010 6:47:13 PM

SPONSOR
TRUSTEE
Board of Trustees

CUSTODIAN

Price Waterhouse
LEGAL ADVISORS
Bharucha & Partners

BOARD OF TRUSTEES
Mr. Nasser Munjee
Mr. Manu Tandon
Mr. Mehli Mistri
BOARD OF DIRECTORS
Mr. Ayaz Ebrahim
Mr. S. P. Mustafa
Mr. Ashok Jha*
FTS 30 & 66.indd 4 29/07/2010 6:47:13 PM

Trustees’ Report
1. SCHEME PERFORMANCE, FUTURE OUTLOOK AND OPERATIONS OF THE SCHEMES

a) Operations and Performance of the Schemes
HSBC Fixed Term Series (HFTS) – a close-ended Income Scheme
HFTS seeks generation of returns by investing in a portfolio of fixed income instruments normally maturing
in line with the time profile of the respective plan(s). The Plans which matured during the year were HSBC
Fixed Term Series 41, HSBC Fixed Term Series 42, HSBC Fixed Term Series 44, HSBC Fixed Term Series 45,
HSBC Fixed Term Series 46, HSBC Fixed Term Series 49, HSBC Fixed Term Series 50, HSBC Fixed Term Series
52, HSBC Fixed Term Series 53, HSBC Fixed Term Series 54, HSBC Fixed Term Series 56, HSBC Fixed Term
Series 57, HSBC Fixed Term Series 59, HSBC Fixed Term Series 61, HSBC Fixed Term Series 62, HSBC Fixed
Term Series 63.
The Fixed Term Series as on 31 March, 2010 are as follows:
Scheme Name Date of Launch Tenure Date of Net Assets as on
(NFO Open date) Maturity 31 March, 2010
(in Rs. Crores)
HSBC Fixed Term Series 30 03-May-2007 3 years 10-June-2010 91.31
HSBC Fixed Term Series 66 18-September-2008 18 months 05-April-2010 69.15
Date of Inception : 11 June, 2007 Compounded Annualized Returns (%)

HSBC Fixed Term Series 30 – Regular - Growth 11.58 9.64
CRISIL Short Term Bond Fund Index 5.88 7.93
Returns data as on March 31, 2010. Past performance may or may not be sustained in future. ‘Since
inception’ returns are calculated on Rs. 10 invested at inception. Calculations are based on Growth NAVs.
Date of Inception : 03 October, 2008 Compounded Annualized Returns (%)

HSBC Fixed Term Series 66 – Regular - Growth 7.62 8.90
CRISIL Short Term Bond Fund Index 5.88 8.67
Returns data as on March 31, 2010. Past performance may or may not be sustained in future. ‘Since
inception’ returns are calculated on Rs. 10 invested at inception. Calculations are based on Growth NAVs.

MARKET OVERVIEW
sector spending.
markets.
FTS 30 & 66.indd 5 29/07/2010 6:47:13 PM

Trustees’ Report
around the world.
MARKET OUTLOOK
FTS 30 & 66.indd 6 29/07/2010 6:47:13 PM

Trustees’ Report
Debt Market Outlook
side inflation.

MANAGEMENT COMPANY
a) Sponsor
FTS 30 & 66.indd 7 29/07/2010 6:47:13 PM

Trustees’ Report
Board of India.
b) HSBC Mutual Fund



Regulations, 1996.

HSBC Fixed Term Series – 30 5,738 4 – –
HSBC Fixed Term Series – 66 – – – –
FTS 30 & 66.indd 8 29/07/2010 6:47:13 PM

Trustees’ Report
Limited).

are as follows:
IA Dividend on 1 61 62 0 0 0 0 0 0 0 0
Units
IB Interest on 0 0 0 0 0 0 0 0 0 0 0
delayed
payment of
Dividend
IC Redemption 2 57 59 0 0 0 0 0 0 0 0
Proceeds
ID Interest on 0 0 0 0 0 0 0 0 0 0 0
delayed
payment of
Redemption
statement of
account/ Unit
Certificate
Statement of
Account
Annual Report/
Abridged
Summary
FTS 30 & 66.indd 9 29/07/2010 6:47:13 PM

Trustees’ Report
between
schemes
switch between
schemes
III C Deviation 0 3 3 0 0 0 0 0 0 0 0
from Scheme
attributes
charges/load
of changes viz.
address, PAN,
bank details,
nomination etc.
IV Others** 10 1621 1631 0 0 0 0 0 0 0 0
TOTAL 13 1846 1859 0 0 0 0 0 0 0 0
Note:
9. ACKNOWLEDGEMENTS
Sd/-
N. P. Gidwani
Chairman
MUMBAI
July 20, 2010
FTS 30 & 66.indd 10 29/07/2010 6:47:14 PM

Auditors’ Report

HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Fixed Term Series 30 (The “Scheme”)
as at March 31, 2010 and the related Revenue Account for the year ended on that date both of which
affairs of HSBC Mutual Fund – HSBC Fixed Term Series 30 as at March 31, 2010 and its net surplus
for the year ended on that date.
(ii) The Balance Sheet as at March 31, 2010, and the Revenue Account for the year ended on that
date, together with the notes thereon, have been prepared in all material respects in accordance
with the accounting policies and standards specified in the Ninth Schedule of the Securities and
Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto, as applicable.

Sd/-
Vivek Prasad
Partner
Place : Mumbai
FTS 30 & 66.indd 11 29/07/2010 6:47:14 PM

Auditors’ Report

HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Fixed Term Series 66 (The “Scheme”)
as at March 31, 2010 and the related Revenue Account for the year ended on that date both of which
confirmation of unit capital balances as at March 31, 2010 by correspondence with the registrar
and transfer agent respectively. An audit also includes assessing the accounting principles used and
significant estimates made by the Management as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
affairs of HSBC Mutual Fund – HSBC Fixed Term Series 66 as at March 31, 2010 and its net surplus
for the year ended on that date.

Sd/-
Vivek Prasad
Partner
Place : Mumbai
10
FTS 30 & 66.indd 12 29/07/2010 6:47:14 PM

Rs. in Lakhs
HSBC FIXED TERM HSBC FIXED TERM
SERIES 30 SERIES 66
As at As at As at As at
March 31, 2010 March 31, 2009 March 31, 2010 March 31, 2009
LIABILITIES
1 Unit Capital 7,354.45 7,693.37 6,159.94 6,259.57
2.1 Unit Premium Reserves (248.72) (170.35) (14.00) (2.76)
2.2 Unrealised Appreciation Reserve 69.58 7.46 – 40.37
2.3 Other Reserves 1,953.26 1,177.28 769.16 282.36
3 Loans & Borrowings – – – –
4.1 Provision for doubtful Income / Deposits – – – –
4.2 Other Current Liabilities & Provisions 94.32 87.65 61.79 11.71
TOTAL 9,222.89 8,795.41 6,976.89 6,591.25
ASSETS
1 Investments
1.1.1 Equity Shares – – – –
1.1.2 Preference Shares – – – –
1.1.3 Equity Linked Debentures – – – –
1.1.4 Other Debentures & Bonds 1,970.87 2,554.25 – 2,027.08
1.1.5 Securitised Debt securities – – – –
1.2.4 Other Debentures & Bonds – – – –
1.2.5 Securitised Debt securities – – – –
1.3.4 Other Debentures & Bonds 4,884.51 4,274.34 – –
1.3.5 Securitised Debt securities 2,075.07 1,877.77 – 1,107.28
1.4 Government Securities – – – –
1.5 Treasury Bills – – – –
1.6 Commercial Paper – – – –
1.7 Certificate of Deposits – – – 1,968.22
1.8 Bill Rediscounting – – – 1,180.65
1.9 Units of Domestic Mutual Fund – – – –
1.10 Foreign Securities – – – –
Total Investments 8,930.45 8,706.36 – 6,283.23
2 Deposits – – – –
3.1 Cash & Bank Balance 1.12 13.87 20.61 0.57
3.2 CBLO / Reverse Repo Lending 282.97 24.19 6,924.22 243.93
3.3 Others 0.51 0.01 32.06 63.52
(to the extent not written off) 7.84 50.98 – –
TOTAL 9,222.89 8,795.41 6,976.89 6,591.25
11
FTS 30 & 66.indd 13 29/07/2010 6:47:14 PM

Rs. in Lakhs
SERIES 30 SERIES 66
Current Current Current Previous
March 31, 2010 March 31, 2009 March 31, 2010 March 31, 2009
1 INCOME
1.1 Dividend – – – –
1.2 Interest 893.93 1,010.80 577.60 321.64
1.3 Realised Gain / (Loss) on Foreign Exchange – – – –
Transactions
1.4 Realised Gains / (Losses) on Interscheme sale of – (19.08) – –
investments
1.5 Realised Gains / (Losses) on External sale / redemption 22.77 (71.36) 24.84 11.91
of investments
1.6 Realised Gains / (Losses) on Derivative Transactions – – – –
1.7 Other Income 3.49 – 0.69 7.18
(A) 920.19 920.36 603.13 340.73
2 EXPENSES
2.1 Management fees 109.36 45.73 60.14 5.14
2.2 Service tax on Management fees – – – –
2.3 Transfer agents fees and expenses 2.00 1.97 1.37 0.72
2.4 Custodian fees 0.83 1.18 0.70 0.36
2.5 Trusteeship fees 0.08 0.04 0.06 0.03
2.6 Commission to Agents * – – – –
2.7 Marketing & Distribution expenses 9.35 10.01 37.66 26.30
2.8 Audit fees 0.12 0.10 0.12 0.05
2.9 Other operating expenses 41.66 54.53 0.03 0.11
2.10 Expenses to be Reimbursed by the Investment Manager (0.48) – (31.09) –
(B) 162.92 113.56 68.99 32.71
FOR THE YEAR (A - B = C) 757.27 806.80 534.14 308.02
value of investments (D) (166.66) 166.66 – –
FOR THE YEAR [E = (C - D)] 923.93 640.14 534.14 308.02
6 Change in Unrealised Appreciation in
the value of investments (F) 62.12 (144.48) (40.37) 40.37
FOR THE YEAR (E + F = G) 986.05 495.66 493.77 348.39
Unrealised Appreciation Reserve – 144.48 40.37 –
Unrealised Appreciation Reserve 62.12 – – 40.37
7.3 Add / (Less): Equalisation – – – –
7.4 Transfer from Reserve Fund 36.04 56.05 2.68 –
7.5 Transfer from Unit Premium Reserve – – – –
8 TOTAL 959.97 696.19 536.82 308.02
9.1 Income Distributed during the year 129.38 145.93 41.34 22.41
9.2 Tax on income distributed during the year 18.56 21.25 6.00 3.26
carried forward to Balance Sheet 812.03 529.01 489.48 282.35
12
FTS 30 & 66.indd 14 29/07/2010 6:47:14 PM


SERIES 30 SERIES 66
2010 2009 2010 2009
Open
Regular Growth Option 11.6034 10.9311 10.5506 –
Regular Dividend Option 10.0762 10.4450 10.1051 –
Institutional Growth Option 11.6034 10.9311 10.5506 –
Institutional Dividend Option – 10.4346 – –
High
Regular Dividend Option 10.4523 10.5824 10.3393 10.3455
Institutional Dividend Option – 10.5719 – 10.0166
Low
Institutional Dividend Option – 9.5131 – 10.0064
End
Institutional Dividend Option – – – –
End 9,129 8,708 6,915 6,580
Average (AAuM)4 9,046 9,630 6,759 6,497
3. Gross income as % of AAuM1 10.17% 9.56% 8.92% 10.58%
4. Expense Ratio:
Regular Dividend Option 1.80% 1.18% 1.02% 1.02%
Institutional Dividend Option 1.80% 1.18% 1.02% 1.02%
Regular Dividend Option 1.21% 0.47% 0.89% 0.16%
13
FTS 30 & 66.indd 15 29/07/2010 6:47:14 PM


SERIES 30 SERIES 66
2010 2009 2010 2009
Institutional Dividend Option 1.21% 0.47% 0.89% 0.16%
5. Net Income as a percentage of AAuM2 8.37% 8.38% 7.90% 9.56%
6. Portfolio turnover ratio3 – – – –
during the year / period (planwise)
Individual / HUF
Corporate – –
8. Returns (%):
a. Last One Year
Scheme
Regular Growth Option 11.5759 6.1503 7.62 NA
Regular Dividend Option 10.1850 4.9175 6.55 NA
Institutional Growth Option 11.5759 6.1503 7.62 NA
Institutional Dividend Option – – NA NA
Benchmark
CRISIL Short-Term Bond Fund Index 5.8800 9.7900 5.8800 NA
CRISIL Liquid Fund Index NA NA NA NA
b. Since Inception
Scheme
Institutional Dividend Option – – NA NA
Benchmark
CRISIL Short-Term Bond Fund Index 7.93 9.0800 8.67 6.7900
CRISIL Liquid Fund Index NA NA NA NA
1
2
Net income = amount against (C) in the Revenue Account i.e. Net Realised Gains / (Losses) for the year / period
3
4
14
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HSBC FIXED TERM SERIES

1 Investments:
1.1. It is confirmed that investments of the Scheme are registered in the name of the Trustees for the
1.2. Open Positions of derivatives amount is NIL as at March 31, 2010 and March 31, 2009.
1.3. Investments in Associates and Group Companies as of March 31, 2010 and March 31, 2009 is NIL.
1.4. Open positions of Securities Borrowed and / or Lent by the Scheme as of years ended 2010 and
2009 are NIL.
1.5. No NPAs as at March 31, 2010 and March 31, 2009.
1.6. Aggregate Unrealised Gain / Loss as at the end of the Financial year 2009 - 10 and percentage to
net assets are:
HSBC FIXED TERM SERIES 30

Security
2010 2009

– Appreciation 1,586,951 0.17% – –
– Depreciation – – 6,587,393 0.76%
– Appreciation 4,123,253 0.45% – –
– Depreciation – – 10,079,072 1.16%
– Appreciation 1,247,634 0.14% 745,872 0.09%

Security
2010 2009

– Appreciation – – 775,539 0.12%
– Appreciation – – 3,261,080 0.50%
15
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1.7 Aggregate Value of Purchase and Sale of Investments

The aggregate value of investment securities purchased and sold (including matured) during the
year / period (excluding accretion of discount) are as follows:
2010
Accretion of Aggregate Purchase Aggregate Sale
Discount
Name of the Percentage Percentage
Scheme of Average of Average
Rupees Rupees Rupees
Daily Net Daily Net
Assets Assets
HSBC Fixed Term 88,801,584 – – 91,548,798 10.12%
Series 30
HSBC Fixed Term 36,683,862 775,886,624 114.81% 1,439,340,461 212.99%
Series 66
2009
Accretion of Aggregate Purchase Aggregate Sale
Discount
Name of the Percentage Percentage
Scheme of Average of Average
Rupees Rupees Rupees
Daily Net Daily Net
Assets Assets
HSBC Fixed Term 101,170,058 11,907,733 1.24% 243,259,449 25.26%
Series 30
HSBC Fixed Term 22,172,816 1,552,743,929 484.59% 951,822,774 297.05%
Series 66*
* Annualized
under :
Security Category Fair Value (Rs.) % to Net Assets Fair Value % to Net
(Rs.) Assets
2010 2009
Total 893,044,686 97.83% 870,636,238 99.98%

Security Category Fair Value (Rs.) % to Net Fair Value % to Net
Assets (Rs.) Assets
2010 2009
Debt Instruments – – 313,435,704 47.64%
Money market – – 314,886,920 47.86%
Instruments
Total – – 628,322,624 95.50%
16
FTS 30 & 66.indd 18 29/07/2010 6:47:14 PM

Regulations, 1996 as amended, for the year ended March 31, 2010.

AMC and its associate / Association / Covered Given Business paid commission
related parties / group Nature of [Rs. in received by [Rs.] paid by the
companies Relation Crores] the Fund Fund
Shanghai Banking
Corporation Limited
HSBC InvestDirect Associate 2009 - 2010 0.00 ~ 0.01 5,905 0.63
The Hongkong and Associate 2009 - 2010 1.18 25.41 – –

Shanghai Banking
Corporation Limited
HSBC InvestDirect Associate 2009 - 2010 0.02 0.42 – –

AMC and its associate / Association / Covered Given Business paid commission
related parties / group Nature of [Rs. in received by [Rs.] paid by the
companies Relation Crores] the Fund (on accrual Fund
basis)
Shanghai Banking
Corporation Limited
Shanghai Banking
Corporation Limited
~ Indicates less than 0.01
March 31, 2010 and March 31, 2009.
17
FTS 30 & 66.indd 19 29/07/2010 6:47:14 PM


Description 2009 - 2010
Regular Growth 53,156,931.064 2,521,000.000 5,604,699.500 50,073,231.564 500,732,315
Institutional 9,424,237.930 – – 9,424,237.930 94,242,379
Growth
Institutional – – – – –
Dividend
2008 - 2009
Description
Regular Growth 66,659,279.315 513,000.000 14,015,348.251 53,156,931.064 531,569,311
Institutional 11,400,000.000 – 1,975,762.070 9,424,237.930 94,242,379
Growth
Institutional 2,000,000.000 – 2,000,000.000 – –
Dividend

Description 2009 - 2010
Regular Growth 40,902,819.241 1,934,412.712 3,341,499.720 39,495,732.233 394,957,322
Regular Dividend 5,542,888.156 421,919.944 11,131.699 5,953,676.401 59,536,764
Institutional 16,150,000.000 1,000,000.000 1,000,000.000 16,150,000.000 161,500,000
Growth
Institutional – – – – –
Dividend
2008 - 2009
Description
Regular Growth – 43,547,532.076 2,644,712.835 40,902,819.241 409,028,192
Regular Dividend – 8,263,358.455 2,720,470.299 5,542,888.156 55,428,882
Institutional – 16,150,000.000 – 16,150,000.000 161,500,000
Growth
Institutional – 1,000,000.000 1,000,000.000 – –
Dividend

18
FTS 30 & 66.indd 20 29/07/2010 6:47:14 PM

DISCLAIMERS
Statutory Details:
Risk Factors:
AMC does not indicate the future performance of the Scheme(s) of the Mutual Fund. HSBC Fixed
Term Series 30 and HSBC Fixed Term Series 66 (HFTS) are the names of the Schemes and does not
in any manner indicate the quality of the Schemes or their future prospects or returns.
Terms of Issue:

For HFTS 30:
Exit Load: 2% if exited before maturity. No Exit Load on redemption / switch out of Units on the maturity
date.
For HFTS 66:
Exit Load: 3% if exited before maturity. No Exit Load on redemption / switch out of Units on the maturity
date.
19
FTS 30 & 66.indd 21 29/07/2010 6:47:14 PM


CRISIL Limited.
20
FTS 30 & 66.indd 22 29/07/2010 6:47:14 PM

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Issued by HSBC Asset Management (India) Private Limited

HSBC Equity Fund 3

HSBC Progressive Themes Fund 20

HSBC Emerging Markets Fund 37

HSBC Dynamic Fund 54

HSBC Tax Saver Equity Fund 75

HSBC India Opportunities Fund 92

HSBC Midcap Equity Fund 112

HSBC Unique Opportunities Fund 129

HSBC Small Cap Fund 149

HSBC MIP 169

HSBC Income Fund 196

HSBC Floating Rate Fund 225

HSBC Ultra Short Term Bond Fund 252

HSBC Cash Fund 273

HSBC Gilt Fund 294

HSBC Flexi Debt Fund 311

HSBC Fixed Term Series 332

Abridged Annual Report 2009 - 2010

Equity Fund.indd 1 24/07/2010 1:07:19 PM

We thank you for investing with HSBC Mutual Fund.

Equity Fund.indd 3 24/07/2010 1:07:22 PM

ASSET MANAGEMENT COMPANY

AUDITORS TO THE SCHEME

REGISTRAR & TRANSFER AGENTS

Equity Fund.indd 4 24/07/2010 1:07:22 PM

1. SCHEME PERFORMANCE, FUTURE OUTLOOK AND OPERATIONS OF THE SCHEME

Date of Inception: 10 December, 2002 Compounded Annualized Returns (%)

b) Market Overview & Outlook

Equity Fund.indd 5 24/07/2010 1:07:22 PM

Equity Fund.indd 6 24/07/2010 1:07:22 PM

2. BRIEF BACKGROUND OF SPONSORS, BOARD OF TRUSTEES AND ASSET

Equity Fund.indd 7 24/07/2010 1:07:22 PM

b) HSBC Mutual Fund

c) Board of Trustees (the Trustees)

3. INVESTMENT OBJECTIVE OF THE SCHEME

4. SIGNIFICANT ACCOUNTING POLICIES

5. UNCLAIMED DIVIDENDS & REDEMPTIONS

Equity Fund.indd 8 24/07/2010 1:07:22 PM

7. DETAILS OF INVESTOR GRIEVANCE REDRESSAL

Equity Fund.indd 9 24/07/2010 1:07:22 PM

Equity Fund.indd 10 24/07/2010 1:07:22 PM

To the Board of Trustees of

For PRICE WATERHOUSE

Equity Fund.indd 11 24/07/2010 1:07:22 PM

Equity Fund.indd 12 24/07/2010 1:07:22 PM

Equity Fund.indd 13 24/07/2010 1:07:22 PM

HSBC EQUITY FUND

Equity Fund.indd 14 24/07/2010 1:07:22 PM

HSBC EQUITY FUND

Issuer Instrument Amount Aggregate Amount Aggregate

Company Name Amount Percentage to Amount Percentage to

Equity Fund.indd 15 24/07/2010 1:07:22 PM

Name of Sponsor / Nature of Period Business % of Total Commission % of Total

Name of Sponsor / Nature of Period Business % of Total Commission % of Total

Name of Sponsor / Nature of Period Value of % of total Brokerage % of total

Name of Sponsor / Nature of Period Value of % of Total Brokerage % of Total

Equity Fund.indd 16 24/07/2010 1:07:22 PM

5 Previous years figures have been re-grouped / re-arranged where necessary.

Equity Fund.indd 17 24/07/2010 1:07:22 PM

Equity Fund.indd 18 24/07/2010 1:07:22 PM

Abridged Annual Report 2009 - 2010

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