HSBC Capital Secured Growth Funds

Are you interested in investing in the stock markets, but a little worried you may lose your money? Or, are you an experienced investor who wants to diversify your portfolio?

Designed to return your capital at maturity with the potential for growth linked to the performance of the UK stock market, HSBC International Capital Secured Growth Funds (CSGF) is offering the Online UK Growth Fund .

Key features

- Only available online which means we can pass on our cost savings to you by offering better terms than ever before.

- Designed to return at least your capital in full at maturity, or 85% for sterling investors and 90% for US dollar investors of any growth in the FTSE 100 Index after averaging.

- Minimum investment of only £5,000, or US$5,000.

- Three-year investment term.

- Open to investment between 27 March and 13 June 2006.

- Funds are available for limited periods only and may close earlier if oversubscribed.

- Additional bonus shares for early investors will be distributed as a percentage of the amount you invest, if you apply by 15 May 2006.

- CSGF is a fixed term investment, so you should be prepared to hold your investment for the full term. If you cash in some or all of your investment before the maturity date, you may not receive your capital back in full.

Bonus shares

Invest on or before 24 April to receive bonus shares of 0.61% in sterling and 0.61% in US dollars. Invest between 25 April 2006 and 15 May 2006 to receive bonus shares of 0.39% in sterling and 0.39% in US dollars

What you should know

The return of your capital and index growth is dependent upon financial instruments, which will be bought from one or more financial institutions including HSBC Bank plc and from sovereign states.

These financial institutions or sovereign states will have a rating of at least A or A2, as determined by either Standard & Poor's, Moody's Investor Services Inc., or an equivalent rating agent.

Whilst we believe these institutions and sovereign states to be financially sound, in the event they or HSBC International Capital Secured Growth Funds plc do not fulfil their obligations your capital will be at risk and you may not get back the amount you invested. CSGF is not a guaranteed investment.

You should understand that while CSGF offers exposure to various types of assets, it may provide a lower return than you would have received through direct investment due to the cost of capital protection.

However, investing in this way is designed to protect you against falls in the stock market at maturity, whereas with direct investment you would be exposed to such falls. If you held shares directly, you would also benefit from the dividends paid by them. By investing in CSGF you will not receive these share dividends.