1 week ago
HSBC Asset Management CEO Urges Investors Beyond Trailing Returns
HSBC Asset Management India CEO Kailash Kulkarni said more people are investing in mutual funds.
He said HSBC’s assets under management nearly doubled after it bought L&T Mutual Fund.
Kulkarni warned investors not to choose funds only because they had the best returns last year.
He recommended checking risk, investing for clear goals and using SIPs.
New investors may begin with diversified funds or index funds.
He said mutual funds now attract about 6.2–6.3 crore unique investors in India.
Passive funds and ETFs are growing, but active funds are still important.
He expects investors to use both kinds of funds over time.
Kulkarni also said AI could help analysts study more companies and make fund houses more efficient.
HSBC Mutual Fund’s assets under management have nearly doubled from ₹80,000–81,000 crore since acquiring L&T Mutual Fund.
Kulkarni said mutual fund investors in India have increased from about 2 crore before Covid to roughly 6.2–6.3 crore.
He advised first-time equity investors to prioritize risk assessment, diversified or index funds, and systematic investment plans.
HSBC Mutual Fund operates in 58 cities and has expanded its distributor network in smaller markets.
Kulkarni expects active and passive funds to coexist, while artificial intelligence improves research, analytics and operational efficiency.
- Who
- Kailash Kulkarni, Chief Executive Officer of HSBC Asset Management India, discussed the mutual fund industry.
- What
- He outlined HSBC Mutual Fund’s growth and offered views on investor behavior, products, distribution, active and passive funds, and AI.
- Where
- India, including HSBC Mutual Fund’s operations across 58 cities.
- When
- The interview’s date is not specified; it discusses current industry trends and the next four or five years.
- Why
- The discussion addressed how investors and fund houses should respond to market performance, industry growth, product choices and technological change.
Active Management and Past Returns
Passive Investing and Risk-Based Selection
Active versus passive funds
Active Management and Past Returns
Kulkarni said active management remains relevant because investors seek alpha, especially when they expect India’s economy to outperform major economies.
Passive Investing and Risk-Based Selection
Passive funds and ETFs are growing rapidly and are expected to become an important part of asset allocation, although Kulkarni does not expect them to replace active funds.
Selecting funds by performance
Active Management and Past Returns
Newer investors often use one-year returns and invest through apps, but this approach may lead them to chase past winners.
Passive Investing and Risk-Based Selection
Kulkarni urged investors to look beyond trailing returns, assess their risk profile and consider diversified or index funds instead of relying on recent performance.
Key facts
- HSBC Mutual Fund AUM
- Nearly doubled from about ₹80,000–81,000 crore after HSBC acquired L&T Mutual Fund.
- Unique mutual fund investors
- Approximately 6.2–6.3 crore today, compared with about 2 crore before Covid.
- HSBC distribution reach
- Present in 58 cities, with a strong distributor network in smaller markets.
- Distributor economics
- A distributor with ₹30–40 crore of AUM in a small city could generate around ₹25–30 lakh annually, according to Kulkarni.
- Product approach
- HSBC says it launches new fund offers when products are unique or fill a genuine gap.
- Investor guidance
- Kulkarni recommends risk assessment, goal-based investing, diversified or index funds, and SIPs.
- AI application
- AI could help analysts track more companies and improve management information systems, research and analytics.
Sources
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