HSBC Corporate Bond Fund: Performance, Objectives, Risks and  Taxation

Incorporated in 2002, HSBC Global Asset Management (India) Private Limited is now among India’s top 15 Asset Management Companies. As of 31st August 2025, its total AUM stands at ₹1,31,057 crore. 

Among 45 different mutual fund schemes, the HSBC Corporate Bond Fund is a moderate risk investment option. 

In this blog, we will cover every key factor you should know before investing, including performance, expense ratio, and risks involved. So let’s get started.

Historical Returns of HSBC Corporate Bond Fund Direct Plan Growth

Objectives and Key Features of HSBC Corporate Bond Fund

The fund aims to generate income by investing in a diversified mix of debt instruments with varying maturities. It seeks to maintain an optimal balance between yield, safety, and liquidity.

These are the key features and objectives to know:

• The fund is managed by Shriram Ramanathan (since 16th Dec 2009) and Mohd Asif Rizwi (since 15th Jan 2024). The AUM of this scheme is ₹6221.71 crore as on Aug 2025.
• Being a debt mutual fund, this is a moderately risky investment. The holdings include 99.13% debt and 0.87% other instruments.
• Since its inception, the HSBC Corporate Bond Fund has delivered an annualised return of 7.72% per annum. It is slightly beating the benchmark returns of 7.58%.

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Calculation of Returns from HSBC Corporate Bond Fund Direct Plan Growth

Let’s assume Mr Rahul invested ₹1,00,000 in the HSBC Corporate Bond Fund in 2022. Here is an estimated return after 3 years of investment:

At the end of the 3rd year of his investment, Rahul has ₹1,24,435, including the returns.

Expense Ratio, Exit Load and Taxation

• The expense ratio is the fee an asset management company takes for managing your investments. The HSBC Corporate Bond Fund has a relatively low expense ratio of 0.30%.
• Unlike many other funds, this scheme does not impose any exit load. It allows investors to redeem investments at any time without paying a withdrawal fee.
• In terms of taxation, the HSBC Corporate Bond Fund is categorised as a debt fund. Therefore, you have to pay taxes according to your income tax slab.

How Much Should You Invest in the HSBC Corporate Bond Fund?

The HSBC Corporate Bond Fund requires a minimum lump sum investment of ₹5,000. However, if you prefer the SIP (Systematic Investment Plan) route, you can begin investing with ₹1000.

As a debt fund that primarily invests in high-quality corporate and government securities, it tends to be less volatile and generally safer compared to equity mutual funds.

A smart investor never keeps all his investments in a single fund. Moreover, debt funds are for conservative investors but not ideal for aggressive investors. 

Hence, you should carefully allocate your investments across equity, debt, hybrid, etc., according to your goal. 

HSBC Corporate Bond Fund - Fund Allocation Structure

The portfolio of the HSBC Corporate Bond Fund is primarily allocated to debt instruments, comprising 99.13% of its total assets, with the remaining 0.87% in other instruments. 

Within its debt allocation, the fund holds a significant portion, approximately 85.55% in Non-Convertible Debentures (NCDs) and corporate bonds. 

Government of India (GOI) securities make up about 13.58% of the portfolio. It holds a diversified basket of 65 different debt instruments.

Potential Risk of Investing in HSBC Corporate Bond Fund

Let’s have a look at the latest risk ratios (the calculator is based on daily returns for the last 3 years) to understand the potential risks of investing in the HSBC Corporate Bond Fund:

• Standard Deviation: The fund has a standard deviation of 1.21, which is higher than the category average of 0.96. This suggests that the fund's returns have been more volatile over the past three years.
• Beta: With a beta of 1.4 versus the category average of 0.67, the fund is significantly more sensitive to market movements. This indicates higher volatility and market-linked risk.
• Sharpe Ratio: The fund has a Sharpe ratio of 1.21, lower than the category average of 1.59. This points to relatively poor risk-adjusted returns, meaning investors are not being adequately compensated for the level of risk taken.