HSBC launches dynamic fund

Mumbai, Aug 01 (UNI) The Hongkong and Shanghai Banking Corporation Ltd (HSBC) Investments today announced the launch of a multi-cap fund--HSBC Dynamic Fund (HDF).

The new fund offer (NFO) period will be between Aug 3 to Aug 30' 2007.

The bank said with a flexbility to move 100 per cent of its assets into money market instruments, the fund seeks to aggressively capture growth in the bullish equity markets and has the flexibility to invest across sectors or themes with no market capitalisation bais.

Speaking to mediapersons here today, HSBC CEO Sanjay Prakash said, '' HDF will endeavour to have at least 90 per cent of the equity portfolio spread between no more than 30 stocks at any given point of time.'' He said the fund has a flexibility to invest upto 40 per cent in any one sector, if required. However, it can react quickly to a negative market by moving its assets to money market instruments.

Derivatives such as futures and options may also be used for hedging purposes.

The fund aims to focus on more aggressive growth oriented stocks when markets are bullish and seeks to reduce risk by moving into money market instruments and derivatives in a bearish phase, Prakash added.

UNI