CEO Speak June 2025

June 2025 marked a month of growth and resilience for the Indian equity markets. The benchmark indices continued with their upwards trend and investor confidence remained strong. This was largely powered by domestic fundamentals, corporate earnings momentum, inflows from FPIs and domestic institutional investors. Easing tensions in the Middle East has also helped the overall buoyancy of the markets. The AUM of the Indian Mutual Fund Industry stood at Rs 72.19 lakh crores as on 31st May 2025. It has grown from Rs 24.55 lakh crores as on 31st May 2020, about 3-fold in a span of 5 years amidst multiple geopolitical uncertainties and market downturns. (Source: www.amfi.com).

As we head into the second half of the year, it’s important to pause, reflect on market movements, and refocus on what truly matters—your long-term financial goals. In buoyant markets, it’s tempting to chase short-term gains. But successful investing is about staying focused and disciplined.

3 smart decisions for long term investing:

Avoid timing the markets – Spend time in the market. Equity investing is for long term wealth generation. Your investment time horizon must be 5- 10 years or more. Many investors attempt to jump in and out of the market based on predictions, news cycles, or gut feelings. However, historical data shows that even the most experienced investors rarely get the timing right consistently. Timing often leads to emotional decisions—selling in panic during dips and buying in euphoria at peaks.

Diversify smartly – Review your asset allocation. Depending on your financial goals, diversify into equity, debt and precious metals. In equity funds look at options in large cap, mid cap, small cap, multi-cap, hybrid funds as per you risk appetite and time horizon. Diversification is your built-in risk management tool—use it to protect gains and reduce shocks. Use Systematic Investment Plans (SIPs) to spread your investments over time, helping manage volatility and emotional bias.

Stay focused on your financial goals – Your long-term financial goals can range from children’s education to retirement. Hence your investment decisions should be aligned to these goals. The goals won’t change over an investment horizon; hence the market cycles should not create exuberance or panic. It is heartening to see many investors showing a lot of maturity during the market volatility. The continuous growth in the mutual fund inflows is a testament to investor confidence.

India’s growth story is supported by strong macro fundamentals, policy reforms, and sectoral momentum in manufacturing, infrastructure, and digital. We at HSBC India Mutual Fund are committed to the India growth story and will continue to bring the best-in-class products and services to our customers. The key message that I want to leave you with is – “Stick to your plan, review periodically, and stay focused on the long-term goal.”

Happy Investing and Stay Invested.

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.

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: HSBC MF, AMFI.

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