CEO Speak December 2024

As we ring in the new year, we would like to extend our heartfelt gratitude for your continued trust and support. It has been a dynamic 2024 – a year full of record-breaking highs and sharp corrections. We have all navigated these fluctuations maintaining our focus on long term goals and prudent investment strategies.

2024 has tested the resilience of the Indian equity markets and their investors.

• The BSE Sensex hit a record breaking high of 85,978 on 27th September 2024. India was the third best performing major markets in 2024, domestic market cap soared by 18.4 per cent.
• 2024 was a stellar year for the Indian mutual fund industry. With a sharp rise in AUM, strong equity market performance and growing SIP inflows, the mutual fund industry showed potential. In 2024 for mutual funds industry, assets under management AUM spurted by nearly Rs 17.3 lakh crore to a record Rs 68.08 lakh crore as of November 30, 2024, compared with Rs 50.78 lakh crore as of December 31, 2023. The industry has added over 72 lakh new investors in the first eight months of FY2025. The Total investor count has increased from 4.46 crore in April 1, 2024 to 5.18 crore in November 2024.
• The small cap and midcap indices gained big in 2024 driven by factors like strong domestic consumption, retail investor participation, and government initiatives.
• However, the market underwent a sharp correction, thereafter, falling 9 per cent from its all-time high amid unprecedented selling by FIIs in the secondary markets, Concerns have been over high valuations, a slowing Indian economy, weak urban consumption, geopolitical tensions in West Asia, and the persistent Russia-Ukraine conflict.

Looking Ahead.

While there is no predictability of the markets or the future, there are reasons to be optimistic. India’s growth story continues to be a promising one and continue to remain one of the high growth markets of comparable size. With the stability and continuity of the new term of the government, measures for continuing the growth thrust are expected. Emerging markets and developed economies offer unique investment avenues, highlighting the importance of global diversification. As an investor, you should also stay focussed on your long-term goals.

Reasonable expectations from 2025

With the backdrop of volatility and optimism, it is essential to approach the new year with balanced expectations:

• Realistic Returns: Markets may not always deliver similar returns as they have in the past. However, consistent, inflation-beating growth over time is the hallmark of sound investments. Do not get swayed by extreme emotions of optimism during the highs or panic during the lows. Keep your expectations in tune with your investment objectives.
• Market uncertainties are real: Markets will have their moments of unpredictability. Embrace these as opportunities to review your portfolio, rebalance if necessary, and stay aligned with your risk tolerance.
• Stay focussed on your investment goals: The original reason for your financial investment must be a financial goal – for eg: retirement plan, children’s education etc. One must remain focussed on these goals in the times of market exuberance or volatility. SIPs remain a great way for long term wealth creation.
• The Role of Professional Guidance: Your mutual fund investments are managed by experts who actively monitor market trends and adjust strategies to maximize potential returns while managing risks. You have the freedom of choosing professional guidance from investment advisors or upgrade your own knowledge. There is abundance of information, but if it is not your core expertise of there is lack of time, it’s prudent to take help from a qualified advisor.

Stay invested for the long term. Let us embrace the new year with confidence, optimism and resilience. On behalf of the entire team at HSBC Mutual Fund, Wishing you and your loved ones a Happy New Year filled with health, happiness, and financial success.

Source: AMFI, Bloomberg, HSBC MF estimates, ACE MF, BSE, NSE as on Dec 31, 2024 end or as latest available.

Investors are requested to note that as per SEBI (Mutual Funds) Regulations, 1996 and guidelines issued thereunder, HSBC AMC, its employees and/or empanelled distributors/agents are forbidden from guaranteeing/promising/assuring/predicting any returns or future performances of the schemes of HSBC Mutual Fund. Hence please do not rely upon any such statements/commitments. If you come across any such practices, please register a complaint via email at investor.line@mutualfunds.hsbc.co.in.

Note: 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.

Disclaimer: This document has been prepared by HSBC Asset Management (India) Private Limited (HSBC) for information purposes only and should not be construed as i) an offer or recommendation to buy or sell securities, commodities, currencies or other investments referred to herein; or ii) an offer to sell or a solicitation or an offer for purchase of any of the funds of HSBC Mutual Fund; or iii) an investment research or investment advice. It does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek personal and independent advice regarding the appropriateness of investing in any of the funds, securities, other investment or investment strategies that may have been discussed or referred herein and should understand that the views regarding future prospects may or may not be realized. In no event shall HSBC Mutual Fund/HSBC Asset management (India) Private Limited and / or its affiliates or any of their directors, trustees, officers and employees be liable for any direct, indirect, special, incidental or consequential damages arising out of the use of information / opinion herein. This document is intended only for those who access it from within India and approved for distribution in Indian jurisdiction only. Distribution of this document to anyone (including investors, prospective investors or distributors) who are located outside India or foreign nationals residing in India, is strictly prohibited. Neither this document nor the units of HSBC Mutual Fund have been registered under Securities law/Regulations in any foreign jurisdiction. The distribution of this document in certain jurisdictions may be unlawful or restricted or totally prohibited and accordingly, persons who come into possession of this document are required to inform themselves about, and to observe, any such restrictions. If any person chooses to access this document from a jurisdiction other than India, then such person do so at his/her own risk and HSBC and its group companies will not be liable for any breach of local law or regulation that such person commits as a result of doing so.

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