HSBC announces Foundation growth fund

HSBC has launched four capital secured funds within its new Foundation range. The range includes three funds: The UK Growth Fund, Hong Kong Growth Fund and European Growth Fund which each feature exposure to the relevant stock market index.

The fourth offering, the Resources Bonus fund, is a three-year product that offers exposure to a basket of 16 energy and mining-related stocks, and potential for a bonus to be paid at each anniversary.

Charles Azzopardi, managing director of HSBC Investment Services said: "Funds within the Foundation range are likely to have wide appeal. For new investors, these funds offer upside exposure to equities, while providing the peace of mind offered by capital protection. For experienced investors, the funds can potentially provide an enhanced return, as well as a capital secured element within a portfolio."

He added: "Although the outlook for equities remains robust, the exceptional stock market returns that we have enjoyed since early 2003 are unlikely to be maintained over the next three to five years. Therefore, the combination of the capital accrued element and the Index-linked growth which provides more than 100 per cent stock market participation make these funds very attractive."

In relation to the Resources Bonus fund, the inclusion of renewable energy companies (for example those working on solar, hydroelectric and geothermal energy solutions) along with traditional energy and mining-related resource stocks, provide potentially exciting present and future growth.

The new funds are available until August, 2007. Minimum investment varies according to the fund, but starts at £5,000/$5,000/€5,000.