CEOs insights for 2023

Taking Stock 2022

The Indian equity markets stood strong and resilient despite the fact that most global markets gave negative returns in 2022. Among sectoral indices, Banking – especially the PSU Banks led the rally. IT sector after the rallying of 20-21 gave negative returns which was in line with the global trend.

The AUM of the Indian mutual fund industry crossed the Rs 40 lakh Crore mark in November 2022, which is yet another growth milestone for the industry. This year also marked the 10th consecutive yearly rise in AUM which has been supported by the steady inflows in the Systematic Investment Plans (SIP) segment and an increasing number of retail participation in the mutual fund industry.

The significant event from an organisation perspective has undoubtedly been the successful completion of the integration of L&T Investment Management (LTIM) with HSBC AMC. This being one of the largest mergers in the Indian Mutual Fund Industry makes it a significant milestone for all of us and is a positive step in line with our commitment and belief in the Indian economy and its growth story.

Reflections 2022

This year's biggest takeaway has been the retail investors' increased confidence and trust in mutual funds as a viable financial asset class. The demography of the new investors is spread across geographies and age brackets. SIPs continue to be the preferred investment mode in the equity markets and now investors have access to not just the ease of digital transactions but also access to information and data when markets have been volatile. Our distributors and advisors have been critical enablers in this journey of investor education and guidance. The fact that many have stayed invested in the funds despite volatile cycles reflects the retail investors' maturity and informed decision making of their asset allocations.

Road Ahead 2023

While we are cognizant of the fact that there will be volatility, we at HSBC AMC firmly believe in the India growth story and that the next decade belongs to India. We have Foreign Institutional Investors (FIIs) investing in the Indian markets at levels that are way higher than what we have seen in the past. At the same time, the Domestic Institutional Investors (DIIs) have also emerged as strong buyers, strengthening our markets throughout the year. We believe that 2023 is slated to also have the fixed income space getting more active. We urge investors to stay grounded on their fundamentals of financial goal planning and not get swayed by short term volatility. SIPs have proven to be great vehicles for achieving long term financial goals and wealth generation and we believe that we will continue to have more and more new investors using this route to experience the benefits of investing in the equity markets. We are committed to bringing you the best of products and a seamless customer experience and look forward to your continued support.

On behalf of the entire team of HSBC AMC, we wish you a Happy, Healthy and Prosperous 2023!

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Source: MFI Explorer, AMFI, HSBC Mutual Fund

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