Abridged SchemewiseAnnual Reports 2014 - 2015

INDEX HSBC Equity Fund 1 HSBC India Opportunities Fund 29 HSBC Midcap Equity Fund 57 HSBC Progressive Themes Fund 85 HSBC Tax Saver Equity Fund 113 HSBC Dynamic Fund 141 HSBC Dividend Yield Fund 169 HSBC Emerging Markets Fund 197 HSBC Asia Pacific (Ex Japan) Dividend Yield Fund 225 HSBC Brazil Fund 253 HSBC Managed Solutions 281 HSBC Global Consumer Opportunities Fund 311 HSBC MIP 337 HSBC Income Fund 373 HSBC Floating Rate Fund 413 HSBC Ultra Short Term Bond Fund 443 HSBC Cash Fund 474 HSBC Gilt Fund 504 HSBC Flexi Debt Fund 532 HSBC Capital Protection Oriented Fund 562 HSBC Fixed Term Series 598

6 HSBC Equity Fund

HSBC Equity FundAn Open-ended Diversifi ed Equity Scheme

Abridged Annual Report 2014 - 2015

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Dear Investor,

Warm greetings from HSBC Global Asset Management, India.

It gives me immense pleasure to write to you again. And as always, let me start by expressing my gratitude to you for your continued faith in the company.

2014-15 was another very successful year for us.

HSBC Global Asset Management, India was adjudged the Best Pension Fund Manager of the year at the Asia Asset Management Awards held in Hong Kong

This came on the back of another major achievement - we were designated as the Best Money Market Fund Provider for Asia by Treasury Management International, one of the leading publications for treasurers

Also, in March this year, HSBC Global Asset Management, India was awarded one of the largest provident fund mandates in India for a record third term

I am sure you are equally pleased to see our efforts being recognised at various forums. These awards are a strong testament to the path we have chosen.

This was also the year in which we introduced HSBC Managed Solutions, a fi rst of its kind active asset allocation based solution in India.

As you know, I have been and continue to be of the fi rm view that asset allocation offers the best opportunity to balance risk and reward. While diversifi cation does not eliminate the risk of experiencing investment losses, combining different asset classes optimally can produce a more appealing risk and return trade-off. It is this belief that led us to introduce such a capability in India.

I am very happy to share that the launch of HSBC Managed Solutions in April 2014 is HSBC Global Asset Management, Indias biggest launch since 2007 (Source: HSBC Global Asset Management, India). I would encourage you to fi nd out more about HSBC Managed Solutions while planning your investments if you have not already done so.

Market Outlook

As we come to the end of the fi rst half of the calendar year 2015, we look at a stock market that has been fl at to mildly positive. The long term reforms as proposed in the annual Budget were not immediately perceived by the market as constructive. Many bills that are crucial for reform implementation, such as, the Goods and Services Tax and Land Acquisition are yet to be passed.

The RBI has reduced benchmark rates to indicate an accommodative monetary policy. However, the aggressive tone of the policies has not sent positive vibes for the bond markets as well. The uncertainty regarding the monsoon has also created some unease. Corporate earnings have been muted both for the fi nancial year ending in March 2015, as well as the fi rst quarter of the current fi nancial year ending June 2015. Forward estimates, though unadjusted for now in most analysts spreadsheets, are likely to be revised downward. Also, from a historical perspective, the equity market is slightly expensive compared to its fi fteen year average. With earnings likely to be downgraded further, it points to further volatility in the near term.

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Investors should keep in mind that the economy, in our view, would likely recover only by the end of FY2016 and more importantly in a meaningful way in FY2017. The reforms push, driven by signifi cant government capex is likely to start showing up in revenues in construction oriented sectors. The resultant fi llip to the economy may then lead to greater demand and hopefully into the economic revival that we are expecting in the next year. That said, the fi rst signs of recovery, whether in the level of orders received by capital goods companies or the uptick in heavy commercial vehicle volumes, give us the confi dence that the economy is slowly but surely on the path of recovery.

In closing please accept, once again, my sincere thanks for choosing us as your partner. And I look forward to a long and mutually benefi cial relationship.

Yours sincerely,

Puneet Chaddha

Chief Executive Offi cer

HSBC Asset Management (India) Private Limited

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SPONSORHSBC Securities and Capital Markets (India) Private LimitedRegd. Offi ce: 52/60, Mahatma Gandhi Road, Fort, Mumbai - 400 001.

TRUSTEEBoard of TrusteesOffi ce: 16, Veer Nariman Road, Fort, Mumbai 400 001.

ASSET MANAGEMENT COMPANYHSBC Asset Management (India) Private LimitedCorp. & Regd. Offi ce: 16, Veer Nariman Road, Fort, Mumbai 400 001.

CUSTODIANStandard Chartered Bank (SCB)Corp. & Regd. Offi ce: Crescenzo, Securities Services, 3rd Floor, C - 38/39, G - Block,Bandra Kurla Complex, Bandra East, Mumbai - 400051.

AUDITORS TO THE SCHEMEPrice WaterhouseChartered Accountants252, Veer Savarkar Marg, Shivaji Park, Dadar (West), Mumbai - 400 028.

LEGAL ADVISORSBharucha & PartnersBharucha & Partners, Hague Building, Sprott Road, Ballard Estate, Mumbai - 400 001.

REGISTRAR & TRANSFER AGENTSComputer Age Management Services (P) Ltd. (CAMS)No. 4, Nehru Nagar West, Kalapatti Main Road, Civil Aerodrome Post, Coimbatore - 641 014.

BOARD OF TRUSTEESMr. N. P. Gidwani - ChairmanMr. Nasser MunjeeMr. Manu TandonMr. Mehli MistriMr. Dilip J. ThakkarMr. Glenn Berry

BOARD OF DIRECTORSMs. Kishori J. Udeshi - ChairpersonMr. S. P. MustafaMr. Dinesh MittalMr. Puneet Chaddha - Chief Executive Offi cerMr. Ravi Menon

Note - Ms. Naina Lal Kidwai resigned from the Board of Directors with effect from March 17, 2015 and Mr. Ravi Menon was appointed as a Director with effect from April 24, 2015.

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6 HSBC Equity Fund

Trustees ReportFor the year ended March 31, 2015

The Trustees present the thirteenth report and the audited abridged fi nancial statements of the Schemes of HSBC Mutual Fund (the Fund), for the year ended March 31, 2015.

1. SCHEME PERFORMANCE, FUTURE OUTLOOK AND OPERATIONS OF THE SCHEMES

a) Operations and Performance of the Schemes

HSBC Equity Fund (HEF) an open-ended diversifi ed Equity SchemeHEF seeks to generate long-term capital growth from an actively managed portfolio of equity and equity related securities.

The net assets of HEF amounted to Rs. 660.85 crores as at March 31, 2015 as against Rs. 453.11 crores as at March 31, 2014. Around 98.81% of the net assets were invested in equities, 1.44% of the net assets were invested in reverse repos / CBLO and (- 0.25%) were in the net current assets as at March 31, 2015.

HEF remained invested in a diversifi ed portfolio across large capitalization stocks. The relative underweight in Healthcare resulted in underperformance against scheme benchmark for the period 2014-15.

Date of Inception : 10 December 2002 Absolute (%) Compounded Annualized (%)

Scheme Name & Benchmarks April 14 - March 15

April 13 - March 14

April 12 - March 13

Since Inception

HSBC Equity Fund Growth 27.89 16.82 4.20 24.66

S&P BSE 200 (Scheme Benchmark) 31.72 16.65 5.41 19.74

CNX Nifty (Standard Benchmark) 26.33 17.53 6.93 18.38

Rs. 10,000, if invested in HEF, would have become 12,789 11,682 10,420 151,791

Rs. 10,000, if invested in S&P BSE 200, would have become

13,172 11,665 10,541 92,353

Rs. 10,000, if invested in CNX Nifty, would have become 12,633 11,753 10,693 80,211

Past performance may or may not be sustained in future. Returns data as on March 31, 2015. Data for the period April to March has been considered in all cases, except for Since Inception. Since Inception returns are calculated on Rs. 10 invested at inception. Standard benchmark is prescribed by SEBI for long term equity schemes and is used for comparison purposes. Returns on Rs. 10,000 are point-to-point returns for the specifi c time period, invested at the start of the period. The returns provided above have been rounded off and hence there may be a minor difference between point-to-point returns vis--vis returns indicated above. Calculations are based on Growth NAVs.

b) Market Overview & Outlook(as furnished by HSBC Asset Management (India) Pvt. Ltd.)

EQUITY OUTLOOKEquity markets saw the best year after FY10 and delivered impressive returns for the fi scal, with benchmark indices recording all-time highs during the year. BSE Sensex gained 24.9% while the broader market indices fared even better with CNX Midcap gaining 51% during the year. The surge in equity markets was driven by the decisive majority for the BJP led NDA coalition and the expectations of a reform focused governance from them. Fall in global oil and commodity prices had a positive impact on infl ation, current account, and other key macro indicators with India being a net importer of crude oil. We also saw the start of the rate easing cycle by the RBI on the back of data points.

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Trustees ReportFor the year ended March 31, 2015 (Contd...)

Indices Returns (April 1, 2014 to March 31, 2015) 1 Year (%)