HSBC MF to launch floating rate fund soon

HSBC Asset Management (India) Private Limited, which manages the HSBC Mutual Fund, plans to launch a floating rate fund by the end of October. HSBC Mutual Fund also plans to launch new schemes after getting approval from the authorities concerned.

Addressing a press conference, Sanjay Prakash, chief executive officer of HSBC Asset Management (India) Private Limited, said: "With the launch of the floating rate fund, we would have the complete array of products to offer to our customers." HSBC Mutual Fund currently offers seven products.

He said that the new funds would be launched sometime next year. "We are looking at introducing an equity fund, capital guaranteed products fund and pension fund. This would be done after we get the approval of the concerned authorities," he said. HSBC Mutual Fund is also looking at bringing in overseas funds to India.

HSBC Mutual Fund currently has assets under management that is close to Rs 6,000 crore and Prakash said that they were targeting to touch Rs 8,000 crore by the end of the current calendar year.

"Apart from having the regular growth we expect the floating rate fund to contribute around Rs 500 crore which would help us in reaching the target," he said.

HSBC Mutual Fund expects to double its market share from the present 3.6 per cent in the next two years. "We are also targeting to double our asset base in the next two years," he said.

HSBC Mutual Fund on Friday opened an investor service centre in Hyderabad. "The office will help prospective investors to walk in to apply for or redeem from the mutual fund schemes," Prakash said.

The company also plans to have offices in another 12 cities across the country in the next one year. It currently has offices in Delhi, Mumbai, Kolkata, Chennai, Bangalore, Pune and Ahmedabad.

Responding to a question, he said that around 34 per cent of the funds was invested into equity. "The investments are mainly into the equities of IT companies, cement industry, auto companies," Prakash said.