'Increased SIP holding periods show rising maturity'

Model-driven vs human-led portfolios?

We see rising adoption of model-driven approaches, especially in passive funds and risk-managed portfolios, where data and automation add consistency and efficiency. Yet the human edge remains vital in areas that require deeper judgement and forward-looking insights, such as mid- and small-cap stocks, thematic funds and credit-oriented debt, where rapid shifts and nuanced risks can’t be fully captured by models. Over the next couple of years, our share of active will continue to be larger; however, the model-driven approach will gain traction.

Post-stress test safeguards?

Our core philosophy has always been customer first. A robust stress-testing mechanism has helped us avoid many industry accidents. We welcome stricter stress testing and disclosures, as mutual funds are preferred for their transparency. Regulatory efforts have further improved disclosures, aiding industry growth. Together, our processes and these measures have made money management more efficient.

On low-friction investing and investor churn.

Digital investing has shortened decision cycles, with investors reviewing portfolios more frequently. However, one positive trend is that SIP holding periods have increased in the last few years, reflecting rising investor maturity. At the same time, churn has grown in short-term thematic products. At HSBC Mutual Fund, we have emphasised goal-based investing through our campaigns, vernacular investor education and nudges towards disciplined behaviour via our digital platforms, helping investors stay committed to their long-term financial plans.

Rapid-fire questions

• One hot trend you’re glad to have skipped for your investors: Avoid complicated products and narrow themes. I prefer giving our investors a clear map.
• One fund manager, past or present, you would love to have on your team: My fund management team is whom I would rely on any day—no need to look at anyone else.
• Beyond returns, one criterion you want investors to judge your AMC on: The journey we create for them—trust, transparency and a smooth, consistent investment style.
• If not running an AMC, what would you be doing? Probably a travel advisor.

This article was originally published on October 23, 2025.