Description

HSBC Mutual Fund introduces daily frequency option for Systematic Investment Plans (SIP) across equity, hybrid, debt, and fund of funds schemes effective November 28, 2025.

Summary

HSBC Mutual Fund has introduced a daily frequency option for Systematic Investment Plans (SIP) on the BSE StAR MF Platform, effective November 28, 2025. This new facility allows investors to make daily SIP investments in equity, hybrid, debt, and fund of funds schemes with a minimum installment of Rs. 500 and at least 6 installments aggregating to Rs. 6,000. The daily SIP will be processed from Monday to Friday on all business days, with non-business days not being carried forward to the next business day.

Key Points

  • Daily SIP frequency introduced for HSBC Mutual Fund schemes effective November 28, 2025
  • Minimum installment amount: Rs. 500 for equity, hybrid, debt, and FoF schemes (in multiples of Re. 1)
  • Minimum requirement: 6 installments with aggregate amount of Rs. 6,000
  • Processing days: Monday to Friday on all business days only
  • Non-business days falling between Monday-Friday will not result in processing on next business day
  • Daily SIP not applicable for HSBC ELSS Tax Saver Fund and HSBC Tax Saver Equity Fund
  • SIP Pause, SIP Top Up, and Multi Scheme SIP options not available under daily SIP frequency
  • HSBC Tax Saver Equity Fund closed for new subscriptions from November 25, 2022 (existing investments can be held and redeemed post lock-in)

Regulatory Changes

This is an addendum to the Scheme Information Document (SID), Key Information Memorandum (KIM), and Statement of Additional Information (SAI) of HSBC Mutual Fund schemes. The changes expand investment frequency options to include daily SIP alongside existing frequencies, providing greater flexibility for systematic investment planning.

Compliance Requirements

  • Investors must maintain minimum installment amount of Rs. 500 per transaction
  • Minimum 6 installments required with aggregate value of Rs. 6,000
  • Daily SIP mandates cannot be set up for ELSS schemes (HSBC ELSS Tax Saver Fund and HSBC Tax Saver Equity Fund)
  • All other terms and conditions of existing SID, KIM, and SAI remain unchanged
  • This notice-cum-addendum forms integral part of scheme documentation

Important Dates

  • Effective Date: November 28, 2025 - Daily SIP facility operational
  • Notice Date: November 26, 2025 - Circular issued
  • SIP Processing: Monday to Friday (all business days)
  • Historical Reference: November 25, 2022 - HSBC Tax Saver Equity Fund closed for new subscriptions

Impact Assessment

Market Impact: Minimal market-wide impact as this is a product feature enhancement specific to HSBC Mutual Fund schemes on BSE StAR MF platform.

Investor Impact: Positive for retail investors seeking more frequent investment options. Daily SIP provides:

  • Greater flexibility in investment frequency
  • Better rupee cost averaging with daily installments
  • Lower minimum investment threshold (Rs. 500 per installment)
  • Simplified systematic investment for salaried individuals

Operational Impact: Limited to HSBC Asset Management and BSE StAR MF platform processing systems. Other AMCs and mutual fund platforms unaffected.

Limitations: Daily SIP excludes certain features (SIP Pause, Top Up, Multi Scheme SIP) and is not available for ELSS tax-saving schemes due to regulatory restrictions on ELSS fund multiplicity.

Impact Justification

Product enhancement for mutual fund distribution platform affecting only HSBC MF schemes; provides additional flexibility for retail investors but does not impact broader market operations or trading activity