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HSBC vs. Religare Mutual Fund

When we venture out in the market to select an investment avenue, we want the best possible options. We look around, carefully keeping in mind our risk capacity and the risk that the product comes with. Most of us, want that the plan or product that we invest in gets us the highest returns, that too as quickly as possible. Along with that, we also want that the risk to the principal amount should be minimum. This is the probable reason why we are always on the lookout for investment plans that can fulfil our wishes. But the bitter truth is, there is no such risk-free option of investment that can double our returns quickly. Rather, when it comes to the returns and the risk involved, they both seem to go hand in hand. Over the past few years, mutual funds have greatly influenced the investment business. More and more people are investing in mutual funds and the results, of course, are more than rewarding. A mutual fund, as we know is an investment that is managed by an AMC that is an asset management company, where a group of investors are brought together and the money is invested in different stocks, bonds and other avenues of investment. The investors are allotted mutual fund units which indicate their contribution to the particular avenue. They can then redeem or purchase more of these units whenever they want to. The returns they receive are as per the NAV (net asset value) that can change on a daily basis. Mutual Funds are registered and they are operated strictly within the SEBI regulations, which makes them safe. The greatest advantage of investing in a mutual fund is that your hard-earned money, however small the amount may be, is managed professionally and you get access to diversified portfolios of investment. While talking about mutual funds, a few names quickly pop up in mind, the topmost being HSBC and Religare Mutual Fund. In this article, we will compare the two and find out Which is the Best Investment.

HSBC Mutual Fund

The erstwhile Hong Kong and Shanghai Banking Corporation, better known as HSBC, is one of the world’s largest asset management companies. HSBC Global Asset Management India offers a list of mutual fund products that are based on their in-house research which is in line with the varied investment needs such as wealth, growth and liquidity. The company enjoys a strong reputation as it offers creation of wealth on a long-term basis. It caters to the needs of the Indian investor and continues to provide investment solutions that suit his risk profile. Let us take a look at the key benefits of investing in HSBC mutual funds:

  • The company, thanks to its years of experience, offers its expertise in the management of equity funds in India.
  • The company has a strong global investment potential but never loses focus of its local customers. The well-engineered investment products suit the requirements of the Indian investors.
  • The company has a structured and disciplined process of investment which makes it very easy for even a first-time investor to understand the functioning.
  • The decisions on the investments are based on the evaluation of the experienced fund managers. They base their insight on the business cycle and apply a relative value approach.
  • The investment can be in the form of a lump sum amount or as a SIP.
  • As the products are rated by CRISIL, it helps the customer in making their selection keeping in mind all the different aspects. HSBC has a number of funds under debt and equity funds, which offer both short-term and long-term objectives. Depending on your risk appetite, you may invest in low or high-risk funds. ###HSBC Tax Saver Equity Fund

This ELSS is an open-open-ended fund. The returns from this fund have been remarkable and have delivered 30% returns annually too. The average interest it has delivered over a period of 5 years has been about 18.7%.

HSBC Managed Solutions India (Growth/ Conservative) Fund

Again an open-ended fund, HSBC Managed Solutions India (Growth/ Conservative) Fund is a hybrid/ balanced fund. Launched in 2014, with an aim of long-term capital appreciation. The investment can be in lump sum where the minimum limit is INR 5,000 or it can be a SIP of INR 1000. There is no exit load on the policyholder.

HSBC Equity Fund

HSBC Equity fund focuses on large-cap funds. Its 5-year average is 14.41%. The investment can be in lump sum where the minimum limit is INR 10,000 or it can be a SIP of INR 1000.

Religare Mutual Fund

Religare Mutual Fund is one of the most reputed asset management companies in India that provides financial solutions not just to individuals but also to institutional investors. The company has over 5000 mutual fund schemes that are offered by over 30 fund houses. The benefits of investing in Religare mutual funds are many too, for example:

  • It provides the investor consistent returns with the least amount of risk.
  • Their efficient customer care also plays a key role in delivering the best services to customers.
  • Religare Mutual funds can not only be purchased online but the status of investment can also be kept under a check using the portfolio tracker.
  • What also helps the investor know about the performance of their funds is through the personalized mutual fund research report. There is also access to the analysts’ research.
  • There are many platforms to invest in the mutual funds, through a one-time investment, SIP (systematic investment plan), SWP (systematic withdrawal plan) and the STP (systematic transfer plan).
  • The mutual fund scorecard helps the customer in not only understanding the risks involved but also lets him make a smart investment decision.
  • Certain equity plans can be claimed for a deduction on the principal as well as the returns. Let us now take a look at the types of funds:

Hybrid Funds

When investing in the hybrid funds, the investment goes towards equities and government bonds. The customer may choose Invest India Monthly Income Plus Plan if he wishes to have an income for a medium or a long term. As through the hybrid funds the investment goes into securities, golf ETF and also equities, the exposure is to three asset categories.

Equity Funds

The risk level of equity funds ranges from high to moderate to low. Before you select the fund to invest, you must go through the NAV, dividends, returns and the holdings. Equity funds may also qualify you for a tax exemption.

Fixed Income Funds

Considered to be most suitable for retired investors and the investors who prefer minimum-risk investment, fixed income funds provide with a regular flow of cash. They consist of a number of debt and money market instruments.

Exchange Traded Funds

Ideal for capital appreciation, exchange traded funds give returns which are quite similar to the physical gold investments. If you have to plan a wedding in the future and need to accumulate gold then investing in a gold traded fund can be helpful.

Fund of Funds

With Funds of Funds (FoF) the company gives you the option of investing in global equity funds. If you wish to diversify your investments and invest in equities from all over the world, you can do so through funds like Invest India Gold Fund, Invesco Pan European Equity Fund. It should be remembered that these funds pose a very high level of risk and there is no guarantee of returns.

FAQs on HSBC vs. Religare Mutual Fund

Why should you choose Religare Mutual Fund?

One of the most reputed asset management company, Religare Mutual Fund provides financial solutions not just to individuals but also to institutional investors. Considered to be equipped with the best customer support, RMF has a plethora of funds, that have been designed to suit the risk appetite and the investment objectives for all kinds of investors. The safe and convenient option of making the transactions online makes buying as well as switching over to other funds rather easy. The existing tax exemption makes the Religare Mutual Fund make it one of the best of its kind.

Why should you choose HSBC Mutual Fund?

HSBC Mutual Fund Company enjoys a strong reputation as it offers creation of wealth, on a long-term basis. When you choose any of the well-engineered products, they offer higher returns consistently. HSBC Mutual Fund, known for its disciplined and systematic plans, also gives the options of both lump sum as well as SIP investments, both of which can be done online. Their plan and products have been given credit ratings by CRISIL which makes it all the easier for the customer to make his choice.

Can a company invest in mutual funds?

Yes, companies can invest in mutual funds. A private company can manage the working capital it has by putting it into mutual funds. The resolution of course has to be passed through by the board of directors. All KYC requirements are to be fulfilled and supported by original documents. To reach their investment objectives, the company can make its investments in balanced or equity funds.

Do mutual funds have maturity dates?

In case of closed mutual funds, the funds have a specified period of maturity and the investors can invest during the initial or the launch period only. When the fund expires, the money comes back to your bank account.