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Investing in Mutual funds

What are mutual funds?

Mutual funds are a type of pooled investment vehicle.  Shareholders of a mutual fund invest their money by purchasing shares of the fund.  The money that they pay for the shares is pooled together and invested in a portfolio of securities, such as stocks, bonds, or money market instruments. Mutual funds are professionally managed and operated by money managers, who maintain the portfolio in accordance with the fund's investments objectives as stated in the prospectus.

Mutual funds, money market funds, and Exchange Traded Funds are sold by prospectus. Please consider the investment objectives, risks, charges and expenses carefully before investing. The prospectus, which contains this and other information, can be obtained by calling your HSBC Securities (USA) Inc. Financial Professional or call 866.586.4722 or for International clients call collect 847.876.1574. Read it carefully before you invest.

An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a money market fund.

Please consider this information for educational purposes only. Please schedule a review with a financial professional to receive recommendations on strategies that may be suitable for you or in your best interest based on various personalized factors. Popular investment disciplines which can involve mutual funds include:

  • Asset allocation1: a disciplined approach to long-term investing, designed to seek consistent exposure to markets. This approach does not guarantee a profit or protect against a loss. It also cannot eliminate the risk of fluctuating prices and uncertain returns. However, it may be used in an effort to manage risk and enhance returns.
  • Dollar cost averaging2: a strategy in which securities, typically mutual funds, are purchased in fixed dollar amounts at regular intervals, regardless of what direction the market is moving. While this method doesn't guarantee against losses, over time, this can help to reduce the average cost of acquired shares.
  • Target date ("life cycle") investing3: investors choose a fund with a specified target date near a personal need or goal (such as retirement) for which they will need to access their invested funds. Though target date investing does not protect against loss of principal, the fund's risk exposure is gradually reduced as a target date draws nearer to prepare for the approaching liquidity needs.

HSBC Global Asset Management fund options


Explore our other exclusive asset allocation solutions.

The suite of HSBC Funds4 includes domestic money market funds and equity funds and a full range of offshore funds.

Additional funds from leading managers

A Financial Professional5 from HSBC Securities can also help you choose from a broad selection of third-party mutual funds. Each of these fund management companies is thoroughly screened and regularly reviewed by the HSBC Global Funds Approvals & Research team6 - a global team of dedicated mutual fund research analysts.

 

U.S. Funds

AB Funds

Allianz

American Funds

Blackrock

BNY Mellon

Eaton Vance

Federated

Fidelity

Franklin Templeton

Invesco

JP Morgan

Legg Mason

Lord Abbett

MFS

Nuveen

Pimco

Putnam

The mutual fund experience

Mutual funds offer a convenient avenue for entering financial markets and can also become integral parts of a broader investment strategy. To fully understand your personal investment objectives and help determine which funds may be suited for your needs or in your best interest, an HSBC Securities Financial Professional will take the time to conduct a thorough financial review.

To schedule your review, or to receive information on funds offered through HSBC Securities: 

Call 800.662.3343. If you’re calling outside the U.S. or Canada, call 847.876.1574.

Mon - Fri (8am - 6pm ET)

Call 800.662.3343. If you’re calling outside the U.S. or Canada, call 847.876.1574.

Mon - Fri (8am - 6pm ET)

Investment, annuities, and variable life insurance products are offered by HSBC Securities (USA) Inc. (HSI), member NYSE/FINRA/SIPC. In California, HSI conducts insurance business as HSBC Securities Insurance Services. License #: OE67746. HSI is an affiliate of HSBC Bank USA, N.A. Whole life, universal life, term life, and other types of insurance are offered by HSBC Insurance Agency (USA) Inc., a wholly owned subsidiary of HSBC Bank USA, N.A. Products and services may vary by state and are not available in all states. California license #: OD36843.

Investments, Annuity and Insurance Products:

ARE NOT A DEPOSIT OR OTHER OBLIGATION OF THE BANK OR ANY OF ITS AFFILIATES
ARE NOT FDIC INSURED
ARE NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
ARE NOT GUARANTEED BY THE BANK OR ANY OF ITS AFFILIATES
MAY LOSE VALUE

All decisions regarding the tax implications of your investment(s) should be made in consultation with your independent tax advisor.

Research backgrounds of brokers and firms for free by visiting FINRA's BrokerCheck website 

Environmental, Social and Governance (“ESG”) Customer Disclosure

At this time in the United States, there is no standard definition of, or measurement criteria for, environmental, social and governance (“ESG”) factors or impact.  ESG-related measurement criteria is highly subjective and may vary significantly across and within different sectors.  There is no guarantee that: (a) the nature of the ESG investment, or the ESG impact or measurement criteria of an investment, will be aligned with any particular investor’s ESG goals; (b) the stated or targeted ESG level will be achieved; or (c) an investment approach that considers ESG factors will produce returns similar to those that don’t, or that they won’t diverge from traditional market benchmarks.

HSBC Securities (USA) Inc. and HSBC Insurance Agency (USA) Inc. (collectively “HSBC”) may rely on metrics or measurement criteria devised and/or reported by third party providers or issuers.  HSBC does not always conduct its own specific due diligence in relation to ESG metrics or measurement criteria.

ESG investing is an evolving area and new regulations may come into effect which may affect how an investment is categorized or labeled. An investment that is considered to fulfil ESG criteria today may not meet those criteria at some point in the future. 

Please consider the investment’s specific ESG impact measurement criteria in the prospectus or other offering documents prior to investing.

United States persons (including U.S. citizens and residents) are subject to U.S. taxation on their worldwide income and may be subject to tax and other filing obligations with respect to their U.S. and non–U.S. accounts – including, for example, Form TD F 90–22.1 (Report of Foreign Bank and Financial Accounts ("FBAR")). U.S. persons should consult a tax adviser for more information.

1 Asset allocation is a method of diversification that positions assets among major investment categories. This tool may be used in an effort to manage risk and enhance returns. However, it does not guarantee a profit or protect against a loss. It also cannot eliminate the risk of fluctuating prices and uncertain returns.

2 Dollar Cost Averaging is a plan of investing which allows you to take advantage of market fluctuations, but it does not assure a profit or protect against a loss in declining markets.

3 Target date funds invest in other funds, so performance can vary significantly based on the investment restrictions of the target date fund. A target date fund may have losses and does not guarantee that sufficient assets will be available for retirement or any specific return.

HSBC Asset Management is the marketing name for the asset management businesses of HSBC Holdings Plc. HSBC Global Asset Management (USA) Inc. is an investment adviser registered with the US Securities and Exchange Commission. HSBC Global Asset Management (USA) Inc. serves as the investment adviser to the HSBC Funds. Foreside Distribution Services, L.P., member FINRA, is the distributor of the HSBC Funds and is not affiliated with the Adviser. HSBC Securities (USA) Inc., member NYSE, FINRA and SIPC, is a subdistributor of the HSBC Funds.

Affiliates of HSBC Global Asset Management (USA) Inc. receive fees for providing various services to the funds.

5 Financial professional refers to Financial Consultants (FCs), Investment Counselors (ICs), and High Net Worth Relationship Managers (HNWRMs). All offer bank products through HSBC Bank (USA) N.A, investments, annuities, and variable life insurance products through HSBC Securities (USA) Inc. and traditional insurance products through HSBC Insurance Agency (USA) Inc.

6 HSBC Global Funds Approvals & Research team is a research and asset management capability utilized by certain HSBC companies in various regions around the world. In the U.S. the company offering these capabilities is HSBC Global Asset Management (USA) Inc.

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