Mutual funds which are professionally prepared maintain bundles of securities and pool together various combinations of risk and return in order to offer investors a wide range of investment opportunities.
Mutual funds fall into two broad categories: A-Type and B-Type.:
A-Type Mutual Funds: A-Type funds are required to have at least 25% of their portfolio value invested in equities which are traded on the BIST on a monthly weighted average.
B-Type Mutual Funds: B-Type funds are not subject to restrictions on portfolio composition. They tend to be invested heavily in fixed-income securities, with portfolios varying primarily in their particular mix of terms to maturity.
Please click here for general information about mutual funds.
1- What types of assets do mutual funds invest in?
Mutual funds invest in:
- Equities of Turkish and foreign companies that are listed on ISE Stock Exchange.
- Private and public sector fixed income securities.
- Gold and other precious metals, as well as securitized instruments issued based on these metals.
- Other instruments that are approved by Capital Markets Board (such as futures, Repo and other similar instruments).
2- The basic principles of mutual funds:
Diversification of Risk: By investing in a range of securities and capital market instruments, mutual funds spread their risk across a variety of different assets.
Professional Management: Securities markets require technical knowledge and continuous tracking. Mutual funds are managed by experienced professionals, who constantly track the markets and are able to analyze the impacts of market movements and trade effectively on the basis of those insights.
Management of Securities Portfolio: Mutual Funds, in addition to investing in gold and other precious metals, invest primarily in securities by generating returns from the spread between buying and selling prices of these instruments.
Fiduciary Ownership: By investing their savings in mutual funds, investors authorize founders of the funds to conduct all transactions related to the fund on their behalf. For this reason, the founder is obliged to manage, or if a manager is appointed, to ensure that he/she manages the fund with the best interest of the investors.
Wealth Protection: Mutual funds do not have an independent legal identity. However, as specified in its internal regulations, each mutual fund has its own property holdings separate from its founder. In accordance with the Capital Markets Law, these property holdings cannot be pledged or used as collateral and confiscated by third parties.
3- Important Notice about Mutual Funds:
- Risk Level
- Securities bought by mutual funds can increase or lose in
value of some of the investment capital as a result of market fluctuations.
Investors, on the basis of their own risk tolerances and earnings
expectations, should select the fund that is best suited for them.
- Past Performance
- All mutual fund investors should
be aware that, the past performance of the mutual funds does not guarantee the
continuity of the generation of similar returns in the future.
- Cost Rates
Fund management and operating costs have a negative
impact on returns. However, a fund with higher management costs does not
necessarily deliver lower returns. Fund management cost rates can change based
on a variety of factors.
- Investors can be informed about;
- The founder of the fund; the other available funds and the other types of funds managed by the founder,
- The portfolio manager,
- The funds most recent composition and strategy,
- The past performance of the founders funds compared to other funds,
- Where fund shares can be bought, trading hours, terms and conditions of the buying/selling of shares and especially how many days before selling orders must be placed,
- Whether or not commission is charged with the buying/selling of shares.
- Professional management.
- Wide range of investment opportunities in terms of preferences in risk levels, investment instruments, and sectors.
- Potential to transform modest savings into substantial investments - rapidly with high risk and slowly with low risk.
- Timely realization: B Type liquid funds can be transferred at any time. In post-dated funds, A Type mutual fund transfers take two business days while B Type mutual fund transfers take one business day.
- Notice periods for mutual funds are:
- One business day for subscription and two business days for redemption in A Type funds;
- One business day for both subscription and redemption in B Type funds except B Type Liquid Fund.
An amount equivalent to the value of the fund at the time of notice is reserved and retained in the HSBC B Type Liquid Fund.
- Mutual fund buy and sell orders can be placed during business hours at all HSBC Bank Branches and at your convenience (7 days and 24 hours)* through HSBC Bank Telephone Banking 444 0 111, HSBC Bank Retail Internet Banking and HSBC Bank ATMs.
HSBC Mutual Funds offer a wide range of portfolio compositions tailored to different risk and return levels:
|A Index Fund
||Yatırım B - Bond
||Bank B - Bond
||B - Variable
||B - Liquid
|A Asset Management Service-Equity
||A - Variable
||B - Asset Management Service-Variable
||B - Gold Fund
Up-to-date and detailed information is available via the Continuous Notification Form. Updated information about returns on HSBC Mutual Funds is available through Daily Fund Reports.
HSBC Mutual Funds
The descriptions of the mutual funds below are for informational purposes only.
HSBC A-Type Mutual Funds:
Controlled A - HSBC Bank A Type Variable Fund:
Controlled A HSBC Bank A-Type Variable Fund has conservative equity investment combined with high risk t-bill/bond portfolio. This fund is aimed at investors with appetite for balanced risk.
HSBC Bank A Type Asset Management Services Equity Fund:
HSBC Bank A Type Investment Management Services Equity Fund invests a substantial part of assets in stocks. It is aimed to obtain high return of equities with high risksThe objective is to create an ideal portfolio for the investors who intend to benefit from the high return of equities. This fund is only offered to HSBC Portfolio Management customers who are familiar with investing in equities and prefer to take risks.
Dynamic - HSBC Yatırım A Type ISE National 30 Index Fund:
The Dynamic HSBC Yatırım A Type ISE-30 Index fund is aimed at investors with a high risk appetite and who seek a comparable return to ISE-30 index yield without actively trading in stocks. The fund aims to achieve a 90% correlation to the ISE-30 index
HSBC B-Type Mutual Funds:
Cash - HSBC Bank B Type Liquid Fund :
The Cash HSBC Bank B-Type liquid fund is aimed at investors who seek an alternative return to O/N repo and/or deposit accounts, and in the meantime who would like to satify daily cash needs. The fund aims to generate a high yield by investing exclusively in short-term repo and short-term fixed income securities.
Controlled B - HSBC Yatırım B Type Variable Fund:
Controlled B HSBC Yatırım B-Type Variable Fund targets investors who seek to benefit from the high yields of T-Bills & Bonds but still maintain a balanced exposure to the interest rate risk. The fund invests heavily in both short-term and long-term fixed income securities.
Balanced - HSBC Bank B Type T-Bill and Bond Fund:
The Balanced HSBC-Bank B Type T-Bill and Bond Fund aims to achieve a real return for clients in the long-run by investing in long-term and short-term fixed income securities.
Steady - HSBC Yatırım B Type T-Bill and Bond Fund:
The Steady HSBC-Yatırım B Type T-Bill and Bond Fund aims to achieve a real return for clients in the long-run by investing in long-term and short-term fixed income securities.
HSBC Yatırım B-Type Gold Fund:
HSBC Yatırım B-Type Gold Fund targets investors who seek to benefit from yields on Gold prices. The fund invests mainly in Gold as precious metal and aims to get yield in parallel to price changes of gold. The yield is affected by changes in Gold prices and exchange rates.
HSBC Bank A.Ş. B Type Investment Services Variable Sub Fund under HSBC Bank A.Ş. B Type Umbrella Fund:
The fund aims to achieve a high real return for clients in the long-run by investing in long-term and short-term fixed income securities. This fund is only offered to HSBC Portfolio Management customers who aim to obtain high real return for long-term and want to invest in funds for minimum 60 days maturity.
For further information, please call HSBC Bank Telephone Banking
444 0 111.
* On weekdays, buying orders for HSBCL (HSBC Bank's B Type Liquid Fund) can be placed between 13:46-16:00, while sales transactions can be performed between 13:46-24:00 within the limits specified by the Bank. On weekends and holidays, HSBCL buy orders are not restricted, while sales are fulfilled within the Bank's limits.