A Journey of Wealth Creation
Dear Shareholders,
I present to you our Annual Report for FY 24-25. It has been a
transformative year, characterised by steady economic momentum, growing investor
participation and meaningful progress for the mutual fund industry at large.
DeepakS. Parekh
Chairman
The year also marked a historic milestone globally, the centenary of
mutual funds. For 100 years, mutual funds have been at the heart of wealth creation,
fundamentally reshaping how individuals invest and growtheir savings. Overthe course of my
association with mutual funds, both internationally and domestically, I have observed a
significant evolution in the way people engage with mutual funds. What has remained
constant is the role of mutual funds in equipping individuals with the tools, confidence
and access to take charge of their financial future.
As mutual funds complete a century globally, we at HDFC AMC are humbled
to mark our own 25-year milestone, a journey built on trust, responsibility and a shared
purpose with millions of investors. As we reflect on this milestone, we remain deeply
committed to empower individuals across the country on their path to financial well-being.
India's Growth Story:
Resilience Amid Global Uncertainties
Amidst escalating global trade tensions and persistent geopolitical
challenges, the Indian economy has continued to demonstrate remarkable resilience and
strong growth momentum. According to the NSO's Second Advance Estimates, India's GDP is
projected to grow by 6.5% in FY 24-25. This positions India as one of the fastest-growing
major economies in the world. The growth is underpinned by robust domestic consumption,
increased government spending on infrastructure and the ongoing digital transformation
across sectors. Meanwhile, the Reserve Bank of India's strategic interventions have played
a pivotal role in managing liquidity, anchoring inflation and safeguarding macroeconomic
stability.
The January 2025 edition of the World Bank's Global Economic Prospects
report projects India's economy to grow at a steady rate of 6.7% in both FY 25-26 and FY
26-27, significantly outpacing global and regional peers. This underscores India's
resilience and growing economic significance. While global market volatility and trade
disruptions present risks, India remains structurally well-positioned for sustained
growth. The country's economic outlook continues to be strengthened by robust
fundamentals, strategic reforms and the entrepreneurial spirit of its people.
The Union Budget 2025 has once again achieved a thoughtful balance,
reinforcing fiscal discipline while promoting an inclusive growth. Measures like the
reduction in personal income tax rates are expected to spur consumption and savings, and
energize the broader economy. For our industry, this presents an opportunity to guide more
households toward productive financial choices.
As India progresses towards its vision of becoming a developed nation,
Viksit Bharat by 2047, the 100th year of independence, we at HDFC AMC remain
committed to deepening financial awareness, nurturing long-term investing and expanding
access to investment opportunities. In doing so, we aim to empower individuals to not just
witness, but to actively shape the nation's economic future.
Mutual Fund Industry: Deepening Participation, Widening Impact
The mutual fund industry in India has evolved remarkably over the past
few decades, transforming into a dynamic, competitive marketplace offering a diverse range
of investment solutions. The growing popularity of SIPs made mutual funds significantly
more accessible to retail investors by enabling them to invest small amounts regularly.
The proliferation of digital platforms and mobile apps further revolutionised the
landscape, making investing more seamless, transparent and user-friendly.
FY 24-25 marked a landmark year for the mutual fund industry, with
nearly 1 Crore new investors joining within a single year. While this achievement reflects
the growing trust in our industry, it is still just the beginning of a much larger journey
of financial inclusion. In a country of over 140 Crore people and more than 73 Crore
Permanent Account Numbers (PAN), the mutual fund investor base stands at just over 5
Crore, highlighting the significant headroom for growth. This under-penetration presents a
compelling opportunity to broaden access, deepen engagement and bring the benefits of
long-term investing to millions more households across India.
I must commend SEBI for its continuing efforts towards market
development and investor protection. SEBI's move to reduce the minimum SIP amount to just
Rs.250 has made investing significantly more accessible. This progressive step encourages
financial discipline and promotes long-term wealth creation, particularly among first-time
investors, low-income households and those hesitant to start with larger sums. By lowering
the entry barrier, we are opening the doors of capital markets to millions more making
investing a habit for the masses.
Our success has also gained global recognition. During the recent visit
of the Indonesian President Prabowo Subianto to New Delhi, we witnessed the signing of an
MoU between AMFI and the Indonesian fund industry body, Asosiasi Manajer Investasi
Indonesia (AMII). This collaboration embodies the spirit of Vasudhaiva Kutumbakam,
‘the world is one family', by sharing India's growth story and best practices with
the world, while positioning India as an attractive global investment destination.
Together Towards Tomorrow
I extend my sincere gratitude to our shareholders, customers,
employees, service providers and distribution partners for their continued trust and
commitment. I would also like to acknowledge the invaluable support and guidance of the
RBI, SEBI and AMFI, whose efforts continue to strengthen the foundation of the mutual fund
industry. It is through our collective resolve and shared purpose that we continue to
deliver sustainable growth and contribute meaningfully to the financial empowerment of
every Indian household.
Together, let us continue to build on this momentum and make mutual
fund investing a way of life for every Indian household, contributing not only to
individual prosperity but to the nation's long-term financial resilience. With continued
advancements in technology, product innovation and investor education, mutual funds will
remain a preferred choice for wealth creation and inclusive financial progress.
As we look ahead, we remain focused on building a future where every
Indian, regardless of their geography or income level, has the opportunity to participate
meaningfully in India's economic progress through informed investing.
| Deepak S. Parekh |
| Chairman |