The asset management sector in India is rapidly changing. The Indian mutual fund (MF) industry has witnessed enormous growth; the total assets under management (AUM) have grown more than seven times in the past decade. By the end of the recent quarter, which ended in June 2025, the mutual fund industry had surpassed 74.40 lakh crore in AUM, and the industry is no longer restricted to legacy firms.
Digital-first companies like Zerodha are growing at a rapid pace and are disrupting the traditional approaches of already established players such as HSBC Mutual Fund. However, one of the main questions in this new environment is whether investors should take the traditional route or the digital one. In this blog, we will explore the investment ecosystem of HSBC and the Zerodha mutual funds.
HSBC Mutual Funds
A subsidiary of the international HSBC Holdings plc, HSBC Asset Management operates in India. Conventional investors prefer HSBC mutual funds primarily because of their conservative investment approach, ease of access to international equity, and strong institutional infrastructure in India. By acquiring L&T Mutual Fund in 2023, HSBC increased both its domestic AUM and clientele in India.
HSBC funds are professionally managed by professionals with extensive expertise and global experience in mutual fund management. The HSBC fund houses provide their investors with a diverse portfolio that includes index funds, debt funds, equity funds, and hybrid funds.
Additionally, HSBC provides both retail and institutional clients with a range of strong digital services, such as online transactions, SIP administration, and portfolio reports, among others.
Zerodha Mutual Funds
Zerodha is the largest retail broker in India and the leader in digital-first, cost-effective investing. Its rise has been facilitated by zero brokerage on equity delivery and consistent fintech innovation. In 2020, Zerodha introduced Coin, which soon grew to become the leading commission-free direct mutual fund platform in the country, and later further expanded into asset management through Zerodha Fund House.
The platform created by Zerodha mutual funds focuses on daily SIPs, systematic transfers, instant e-KYC, and interactive features such as gifting and advanced analysis in a single, mobile-first interface. Its emphasis on accessibility and transparency has earned it popularity among self-directed investors who are young and tech-savvy.
Which One Should Investors Choose?
Whether to go with Zerodha or HSBC is not a matter of which one is superior. It is a decision between two different schools of investing.
Investors can choose Zerodha if:
- They are do-it-yourself investors who do not mind researching and managing their portfolios.
- They are mostly concerned about cost; they prefer to pay less in brokerage fees and receive better returns from direct mutual funds.
- They appreciate a clean, fast, and modern trading and investment platform.
- They do not require diverse additional banking services and would like to separate investments and banking accounts.
Investors should choose HSBC if:
- They prefer a full-service banking and financial relationship and want one institution to manage all their financial matters, banking, loans, and investments.
- They want personal, human guidance and are willing to pay.
- They are HNIs or NRIs who need specialized wealth management and global banking services.
- Their priorities lie in the trust and stability of an established global banking brand.
Conclusion
The Zerodha vs HSBC landscape shows the diversity of the modern financial market, as investors have plenty of options to choose from. The Zerodha platform gives more power to the individual investor, or a financial giant like HSBC that offers a large and diversified set of financial products and professional services. Ultimately, this choice depends on individual investors’ financial objectives and their preferred investment option.
