'Risk-reward proposition is better, despite uncertainty'

Summary: HDFC AMC’s CEO sums up a year in which long-built strength met newer bets, and says he sees the risk and reward in markets as better than before. The sharper questions, on how large his small-cap funds have grown and on fees versus shareholder returns, draw pointed replies.

Summary: HDFC AMC’s CEO sums up a year in which long-built strength met newer bets, and says he sees the risk and reward in markets as better than before. The sharper questions, on how large his small-cap funds have grown and on fees versus shareholder returns, draw pointed replies. How would you describe the past 12 months for your fund house in one sentence? Decades of legacy met the potential of the new. Three funds are now over Rs 1 lakh crore, even as we opened newer avenues in alternatives and GIFT City. What was your single biggest mistake this year, and what did it cost investors? We launched two outbound funds in GIFT City, giving investors access to developed and emerging markets. In hindsight, we could have offered that earlier, as those markets rallied sharply in 2025. All said and done, the idea behind these is to provide avenues for diversification rather than timing the markets. What is the one number you watch every morning that is not AUM? I watch SIP numbers closely, including new SIPs and SIP continuity. What is your outlook for equity and debt markets over the next 12 months? Corporate profitability has rebounded well. Valuations have moderated from 2024. W

This article was originally published on October 23, 2026.