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Risk Ratings of Mutual Funds

Risk Value takes a value ranging between 1 and 7. 1 represents the lowest degree of volatility, and 7 the highest.

While the distribution of an actively managed fund cannot fully protect the portfolio from losses in a particular market, it does enable you to spread the risk across various asset classes. The value of any given investment can go up, as well as down. Particularly in emerging markets such as Turkey, investments can be more susceptible to volatility. Even fixed income investments are subject to credit and interest rate risks. Prior to engaging in any type of investment, it is recommended that investors seek professional advice. There is no guarantee that any fund or strategy will attain its investment goal.

In funds, asset classes are included on the basis of a risk-return perspective. Essentially, asset classes with higher long-term return expectations are allocated more to funds that are characterised by higher risk tolerance. 

A fund’s Risk Value is calculated on the basis of the fund’s volatility. For this purpose, weekly returns are used. However, as the indicated Risk Value is determined on the basis of the fund’s past performance, it may not provide a guarantee of future returns.

Risk Value may change in time…

Risk Value takes a value ranging between 1 and 7. 1 represents the lowest degree of volatility, and 7 the highest. Regarding Risk Value, calculations based on 5-year returns are performed, using the methodology described in the Funds Directory.  

While fund Risk Value is measured on a scale of 1 to 7, the risk profile of individual clients, as indicated by the conformity test, ranges on a continuum of 1 to 5. The following recommendations are made to the clients of HSBC Bank A.Ş. and HSBC Yatırım Menkul Değerler A.Ş., with which we have active distribution contracts: To clients with Very Low Risk profile, mutual funds with Risk Value of 1; to clients with Low Risk profile, mutual funds with Risk Value of 2 and 3; to clients with Moderate Risk profile, mutual funds with Risk Value of 4; to clients with High Risk profile, mutual funds with Risk Value of 5 and 6; to clients with Very High Risk profile, mutual funds with Risk Value of 7. 

The Risk Values of our mutual funds are tabulated below.

  • HSBC Asset Management Money Market Fund,
  • HSBC Asset Management Short Term Fixed Income Fund
  • HSBC Asset Management Multi Asset Cautious Variable Fund
  • HSBC Asset Management Corporate Fixed Income Fund
  • HSBC Asset Management Medium Term Fixed Income Fund
  • HSBC Asset Management Multi Asset Balanced Variable Fund
  • HSBC Asset Management Long Term Fixed Income Fund
  • HSBC Asset Management Multi Asset Dynamic Variable Fund
  • HSBC Asset Management Global EFT Fund of Funds
  • HSBC Asset Management Variable Fund
  • HSBC Asset Management BIST30 Index Equity Fund (Equity weighted fund )
  • HSBC Asset Management Gold Fund
  • HSBC Asset Management Equity Fund (Equity weighted fund)