Dear Investor,

The quarter gone by has been a rather unique one, marked by a dynamic interplay of global and domestic macroeconomic factors. On the global front, the quarter witnessed persistent geopolitical tensions, including ongoing conflicts in Eastern Europe and the Middle East, which kept energy prices volatile. Central banks in major economies, including the US Federal Reserve and the European Central Bank, maintained a cautious stance on interest rates, balancing the need for inflation control with supporting economic growth. Meanwhile, global equity markets remained resilient, supported by strong earnings in the technology sector, particularly AI-driven investments.

On the Indian front, the economy remained a bright spot amid global uncertainty. Strong domestic consumption, government infrastructure spending, and robust GST collections highlighted India’s growth momentum. Inflation remained within the RBI’s comfort zone for most of the quarter, and in a notable move, the RBI announced a 25 basis points (bps) rate cut, bringing the repo rate down to 6.25%, marking the first rate cut in nearly five years. This decision was aimed at stimulating economic growth amid concerns of a slowdown. However, India’s growth story continues to be on the right track with an improvement in GDP and gross services exports. This will pave the way for the next leg of expansion and India’s path to a $10-trillion economy in the future and the vision for ‘Viksit Bharat’.

Indian equity markets experienced significant volatility in the quarter ending March 2025. After hitting record highs in late 2024, markets saw a sharp correction, with the Nifty 50 declining 12% due to foreign investor outflows, concerns over earnings growth, and global uncertainties, including U.S. tariff measures. However, March witnessed a strong rebound of nearly 7%, driven by renewed FII inflows and improving domestic sentiment following the RBI’s 25 bps rate cut. Despite the recovery, indices remained about 10% below their peak, highlighting ongoing caution amid persistent global and domestic challenges.

In times of market volatility, hybrid fund categories like the Multi-Asset Allocation and Balanced Advantage offer a well-structured approach for investors seeking stability and growth. These fund categories diversify across asset classes like equity, debt, gold/silver and REITs and are best suited for investors unsure of market direction or even new investors who are looking to enter the market.

The mutual fund industry continued to witness robust SIP inflows, reflecting sustained investor confidence. SIP continues to be a relevant investment tool fostering long term wealth creation. Ultimately, SIP is not just your systematic investment plan, but also your ‘Sabse Important Plan’.
Happy Investing!

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Regards,
A. Balasubramanian