CEO Speak April 2025

Markets changed directions; Investors must stay on course

Amidst the global uncertainties that made to the headlines in April 2025, the Indian stock market stood tall with resilience. BSE Sensex staged a recovery, crossing the 80,000 mark, bouncing back since the 2025 low 72,000 levels of March, 2025. This bounce back reflects the strength of the Indian markets, domestic investors and a few global and domestic developments working in our favour so far. A significant catalyst for the recent market rally has been developments in U.S. trade policy which has placed a temporary pause on the tariff hike. Central banks across the globe have also taken an accommodative stance by lowering interest rates and pushing liquidity.

What should investors do now?

Well, my answer to that is – ‘nothing different’ if they were invested as per their financial goals and risk appetite.

It has been a moderate recovery of the markets from the lows of the initial months of the year. This only substantiates the fact that we have been talking about consistently- that markets go through cycles and an investor must be focussed on their investment objectives and not get swayed by market movements.

• Stay on course with your SIPs - they continue through market ups and downs and help you in your wealth creation journey.
• Stick to your financial goals - If they are long term in nature, like your child’s education or retirement corpus, equities will help you build the corpus. Let your goals and time horizon decide your asset mix—not the market noise.
• Review but do not React - Its crucial to review your portfolio from time to time. This review should entail things like -if you want to modify or top up based on your increased investable surplus. What it should not entail is panic switching or redeeming because of sudden market corrections.
• Diversify with asset allocation - Instead of staying invested in pure equity funds, you may also want to diversify your portfolio with multi asset funds, dynamic asset allocation funds, balanced funds and debt funds. Everything should be as per one’s investment need and risk appetite.

What is very encouraging about this recent uptick in the markets is the trust and confidence that the domestic investors have shown in the Indian markets. Indian retail investors have shown maturity with continuation of their SIPs and investments. While global worries loom at large, domestic confidence is a positive sign.

As we have consistently believed and backed the basics of investing in many previous newsletters, this time too, we would like to reiterate the fact that one should stay invested for long term to reap the benefits of the equity markets and through investment vehicles like mutual funds, you have an advantage of your funds being actively managed by professionals.

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: ACE Equity & HSBC MF estimates as on April 30, 2025 or as latest available.

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