CEO Speak January 2026

A Promising Start to 2026

As we stepped into 2026, Indian financial markets navigated a month of high-impact developments that will shape the country’s economic trajectory over the coming years.

Key developments and overview

The most significant among these was the conclusion of the India–European Union Free Trade Agreement, a landmark deal that will gradually open European markets for Indian exports across manufacturing, textiles, chemicals and services. For Indian businesses, this expands the opportunity to diversify revenues beyond traditional markets and strengthens India’s position in global supply chains. Over time, this can translate into higher earnings visibility and deeper integration of Indian companies with global demand.

Closer home, the Union Budget for FY27 reaffirmed the government’s commitment to growth while maintaining fiscal discipline. Continued public capital expenditure, targeted reforms to improve ease of investing, and steps to broaden participation in Indian equities are all positive for the long-term development of capital markets. The Economic Survey 2026 projected robust macro momentum for the Indian economy, with GDP growth expected to be in the range of 6.8–7.2 per cent in FY27, supported by healthy consumption and investment activity.

Markets during January reflected a mix of optimism and caution. After hitting record highs at the very start of the year, markets underwent a broad correction through much of the month. Global uncertainties and capital flows led to periods of volatility, but underlying economic indicators for India — including growth, consumption and corporate balance sheets — remain on a relatively strong footing.

India’s mutual fund base keeps growing:

The Indian mutual fund industry’s assets under management (AUM stood at around ₹80.23 lakh crore as on end of Dec 2025 (source: www.amfi.com), underscoring the scale and resilience of the industry. This reflects continued engagement from investors across equity, hybrid and debt categories. Over the past five years, the industry’s AUM has grown from roughly ₹31 lakh crore to over ₹80 lakh crore — more than two-and-a-half-fold growth.

What it means for investors:

• Think long-term: The global trade deal and supportive fiscal policies reinforce India’s structural growth story. Markets may fluctuate in the short run, but the underlying economic trajectory remains positive.
• Stay diversified: Mutual funds help you spread risk across sectors and asset classes. Staying invested through disciplined plans like SIP has historically proven to be a tool for wealth creation.
• Don’t chase short-term noise: Headlines can create volatility, but consistent investing aligned with your financial goals matters far more than emotionally charged reactions. Stick to your investment goals and discipline

We at HSBC Mutual Fund continue to believe that investors should keep their focus on staying invested, remaining diversified, and aligning portfolios to long-term goals. As always, we encourage investors to review their asset allocation periodically and continue their disciplined investment approach. In these times of change and opportunity, we remain committed to guiding you through every phase of this journey.

Happy Investing!

Views provided above are based on information in public domain and subject to change. Investors are requested to consult their financial advisor for any investment decisions.

Source: AMFI, MFI Explorer, CRISIL, Bloomberg. Data as on 31 January 2026 or as latest available

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