CEO Speak October 2024

This festive season we extend our warmest greetings and wishes to you and your family. Diwali brings in a time filled with hope, celebrations and new beginnings. Like we spruce up our homes, light up every corner, we must also look at taking stock of financial goals and the corresponding investment portfolios that one has. October has been a testing month in the markets with record FII outflows, much more than what has happened in the past. Had it been 10 years ago, we may have seen much sharper correction in the markets. However, it has been heartening to see many retail investors staying invested or invest more during the troughs this time around. This goes to reflect the resilience and maturity of the Indian investor and their trust in mutual funds and the equity markets.

It is important to spend some time evaluating your investment portfolios and assess them with respect to your goals of investment. We suggest you look at rebalancing, only, if necessary, to align it with your investment goals.

Investing is not a sprint; it’s a Marathon

Just as Diwali reminds us of the victory of light over darkness, the history of our equity markets reminds us that patience can lead to rewarding outcomes over a long tenure. Markets are naturally volatile, and there will always be periods of uncertainty. We have seen in the last 15 years multiple instances when the markets have gone down by more than 5 per cent, yet they have recovered over the next 3 years. Please remember that the investment horizon in the equity markets should be long term in nature, 5 years or more. This gives you time in the market and may help you in wealth creation for long term financial goals like retirement, children’s education etc. By staying invested and focusing on long-term goals, investors can participate in the market's growth when it eventually rebounds.

For financial goals lesser than 5 years, we recommend you look at other asset classes like fixed income instruments. Hence, asset allocation is also an important tool when you build your portfolio.

Systematic Investment Plans (SIPs): A Tool for Volatile Times

One of the ways to navigate volatility is through Systematic Investment Plans (SIPs). SIPs allow you to invest in a regular manner, helping you benefit from rupee-cost averaging. This means that you buy more units when prices are low and fewer units when prices are high, lowering your average cost per unit over time. SIPs also instil a disciplined approach to investing, making it easier to stay committed to your financial goals even during turbulent periods. As the markets recover and grow, the consistency and patience fostered through SIPs can contribute to wealth creation.

This festive season let’s celebrate not just the festival of lights but also our belief in the power of resilience, patience, and long-term wealth creation. On behalf of everyone at HSBC Asset Management (India) Private Limited, we thank you for your continued trust. Hope you embrace resilience and patient in volatile times.

Stay Invested and Happy Investing!

Source: HSBC Mutual Fund Research, Data as on 31 October 2024.

Investors are requested to note that as per SEBI (Mutual Funds) Regulations, 1996 and guidelines issued thereunder, HSBC AMC, its employees and/or empaneled 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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