HSBC MF, Kotak MF launch new fund schemes

HSBC Dynamic Fund, a new fund scheme launched by HSBC Mutual Fund aims at providing flexibility of moving investment portfolios to fixed income securities. Targeting investors with a higher risk appetite, the scheme promises a diversified portfolio, and will be available between August 3 and August 30.

The new scheme shall concentrate in investing more in lesser number of
shares. Without any market cap bias, they shall offer 90 per cent investment
in just 30 shares, across different sectors. The only other scheme similar
to this scheme is the one by ICICI Prudential.

The fund management would
depend on global liquidity, global interest rate, earnings growth and
the movement of Japanese yen. For hedging, the fund will use derivatives
like options and futures.
Among the new schemes launched by fund houses is Kotak Mutual Fund’s Kotak Global Emerging Market Fund.

A close-ended fund, this fund aims at providing a long-term capital appreciation.
It would allow investment in one or more overseas mutual fund schemes, investing
in a diversified portfolio of securities. Available at a minimum investment
of Rs.5000, the scheme shall remain open till August 24.

The scheme is suitable for long-term investors willing to take a higher
risk and supplement owned holdings with an exposure to global emerging
investment trends. It would enable NRIs to invest as well.
While the BSE is the benchmark for HSBC Dynamic Fund, MSCI Emerging Market
Index is the benchmark for Kotak Global Emerging Market Fund.

Photo: Banknote (AM 1953.110) by Japanese Government, licensed under CC BY 4.0, via Wikimedia Commons.