CEO speak

As the Indian Mutual Fund industry crossed INR 54 lac Crs in Feb 2024, it signifies a remarkable journey that the industry has had in FY 23-24 and the years leading up to this time. As we embark another exciting journey of a new fiscal year, we look forward to the India growth story. We at HSBC Mutual fund have always recommended to our investors to be conscious of the possible volatilities of the market yet be committed to their individual financial goals. The growth in the industry AUM and the steady rise in the number of folios indicate that the industry has been able to navigate through the uncertainties with resilience. It also indicates that the investors have also matured over time and steadily increased their trust in mutual funds.

As we begin another new fiscal year here are some key considerations and good practices that may help you with your investment portfolios:

5 things to do at the beginning of the fiscal year.

1. Review: Take stock of your portfolio, review the funds and asset classes and their performance. Consider rebalancing your portfolio, if need be, to maintain a desired asset allocation.
2. Read: Stay informed about the market trends, regulatory changes, economic developments, or individual fund performances. We always recommend taking help of your financial advisor to help you make informed decisions.
3. Think Long-term: The uptick in our stock markets often make investors take impulsive investment decisions. A disciplined and patient approach as per your long-term financial goals always helps in wealth generation. We recommend Systematic Investment Plans (SIPs) as a great tool for investing regularly over a long-term horizon.
4. Hygiene Check: When you review your overall investment health, it is important to check on your life insurance, health insurance, nominations, KYC updations and such hygiene items that are critical. They are often ignored by investors, so, the beginning of a new year is a good time to take stock of the same.
5. Diversification and Asset Allocation: It is always prudent to ensure that your portfolio is diversified into different asset classes to mitigate risk and enhance returns potential.

When looking at diversification, consider allocation into the fixed income space. Positive factors like a robust macro-economic framework, a significantly large government bond market compared to other emerging markets and India’s inclusion in the JP Morgan Emerging markets indices starting June 2024 puts our bond markets in a good spot. Dynamic bond funds are debt mutual funds which invest across duration. These schemes can change the tenor of the securities in the portfolio in line with expectation on interest rates. The tenor is increased if interest rates are expected to go down and the other way round also.

As we navigate through the opportunities and challenges in the new financial year, we are committed to serve you with excellence, integrity and best in class products and services. On behalf of the entire HSBC Mutual Fund team, we thank you for your continued trust and support. Here's to a successful and prosperous financial year ahead!

Source: AMFI. Data as on 29 February 2024 or latest available data. Past performance may or may not be sustained in future and is not a guarantee of any future returns.

Note - Views are personal and based on information available in public domain at this moment and subject to change. Please consult your financial advisor for any investment decisions.

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