India in sweet spot, has tailwinds to deliver alpha returns: HSBC MF CEO

India's bull run is expected to sustain in Samvat 2082 driven by earnings, consumption, and industrialisation, said Kailash Kulkarni,CEO, HSBC MF

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The Indian stock market is on a solid note with the BSE Sensex index marching towards 85,000 levels and the Nifty50 index topping 26,000-mark. In this backdrop, Kailash Kulkarni, chief executive officer, HSBC Mutual Fund tells Nikita Vashisht in an email interview that multiple tailwinds keep Indian equities in a sweet spot with the potential to generate alpha returns over the long-term. Edited excerpts: 

       

Do you think Samvat 2082 will kick-start another bull run for Indian equities? Or are we underplaying the threats?

Indian equities have entered Samvat 2082 on a strong footing. The combination of healthy corporate earnings, resilient domestic consumption, and government focus on capex and infrastructure continue to act as tailwinds. India is in a sweet spot in its growth cycle, offering a strong opportunity to generate alpha for a long time.  

Having said that, global uncertainties including geopolitics, oil prices and inflation trends, cannot be ignored. So, while the structural story for India remains intact and could benefit long-term investors, we must be mindful of near-term volatility and avoid getting carried away by euphoria. 

 

With interest rates declining and equities giving muted returns, how have HSBC MF investors repositioned their investments over the past few months?

What we are observing is a shift towards more balanced allocations. Investors are diversifying and staying invested in equities via flexicap, multicap or multi asset themes to reduce volatility. At the same time, with interest rates softening, debt funds like dynamic bonds and medium duration categories are seeing renewed interest and offered compelling potential, especially for investors seeking more stability and income.  

Are there any upcoming fund launches (NFOs) or investment solutions that HSBC MF is planning to cater to evolving investor needs?

We continuously focus on evaluating and designing products that emphasize long term sustainable growth while creating deeper impact for investors. Our aim is to give investors solutions that not only deliver returns but also align with responsible investing and future ready opportunities.   

What could emerge as the theme for Indian and global investing in 2026?

India's growth story in 2026 will be primarily shaped by consumption, financialisation, and industrialisation.

As Indian households continue to grow their disposable incomes, we expect aspirational consumption to rise with spending increasingly moving towards the organised and branded space.  

Given that penetration levels remain very low, we believe there is a significant runway for growth in this segment, both in the short and long term.

  At the same time, the financialisation of savings is likely to play out, with households gradually shifting from traditional assets such as real estate and gold to equities. This transition will not only diversify investor portfolios but also provide much-needed capital for businesses, stimulating further economic output.

  While overall government capex may remain moderate, we see continued momentum in power, industrialization and defence, with spending in these areas expected to sustain a fast pace through 2026.

 

What is your long-term vision for HSBC MF in terms of innovation and market positioning?

Our ambition is to position HSBC Mutual Fund among the leading asset management companies in India, built on a foundation of consistent fund performance and a strong client-first approach. We are focusing on innovation across functions, offering better client servicing through technology, and harnessing data analytics not only to deliver sharper investment insights, but also to understand evolving investor behaviour and provide more personalised solutions. 

       

What are the biggest risks that the Indian mutual fund industry is currently facing, and how should investors navigate them?

India's mutual fund industry has come a long way and continues to grow rapidly. The focus should be to ensure that products are always aligned with investors’ goals. This can be addressed through strong investor education and transparent communication. Vernacular outreach has already made a big difference in expanding awareness across regions, but there is still much more to be done to deepen investor connect. And while awareness has increased, the industry still has less than 60 million unique individual investors today - which highlights vast potential for growth.