HDFC Bank vs US stocks: Which one will make you richer in 2025?

Shares of HDFC Bank Ltd continued their winning streak on Thursday, rising 2.21% intraday to touch a record high of Rs 1,919.35. The stock eventually closed 1.53% higher at Rs 1,906.55, marking its fourth consecutive day of gains. Over the past four trading sessions alone, the stock has climbed 7.98%.

The rally comes just days before the private sector lender is scheduled to announce its Q4 FY25 earnings on Saturday, April 19. Anticipation around the results, along with renewed investor interest in large-cap private banks, appears to be fuelling the momentum.

Finfluencer Akshat Shrivastava, founder of Wisdom Hatch, noted that HDFC Bank was a “screaming buy” six months ago when sentiment was tepid. However, he now believes the more compelling opportunity lies in US stocks.

"HDFC Bank was a great buy 6 months back. US Stocks are a great buy now. Now everyone is lecturing about why: they should have bought HDFC Bank or how "quality" is the way to go. But, ask them to reveal how much they invested? Most people will run away," Shrivastava wrote on X.  

 

HDFC Bank’s stock has delivered strong returns across timeframes. It is up nearly 8% over the past five sessions, 10% in the past month, and 14% over the last six months. On a year-to-date basis, HDFC Bank has gained close to 7%, and has surged over 27% in the last one year.

In comparison, the Bank Nifty benchmark index has seen an 8% increase in the last five trading days. Over the past month, the index has delivered a return exceeding 12%, and over the previous six months, it has recorded a 6% growth. Investors have seen a 15.3% surge in wealth over the last year.

The private lender reported a standalone net profit growth of 2.2% Year-over-Year (YoY) at Rs 16,736 crore in Q3 FY25, up from Rs 16,372.54 crore in Q3 FY24. Net interest income also saw a 7.7% YoY increase to Rs 30,650 crore. Total income rose by 7% YoY to Rs 87,460 crore in the quarter ending December FY25, compared to Rs 81,720 crore in the same period the previous year.

US stocks

In comparison, after a stellar run in 2024, US equity markets have come under pressure in recent weeks following Donald Trump’s announcement of reciprocal tariffs in April 2025. The move has reignited trade tensions, particularly with China and the European Union, sparking a wave of uncertainty across global markets.

Last year, the Nasdaq Composite (^IXIC) surged 30%, while the S&P 500 (^GSPC) gained over 24%. The Dow Jones Industrial Average (^DJI) also rose, albeit more modestly, with a 13% climb. However, the momentum has reversed sharply in 2025. Since the tariff announcement, the S&P 500 has fallen over 6%, while both the Dow and Nasdaq have declined more than 7%.

The renewed geopolitical tensions have led to temporary sell-offs, disrupting investor sentiment that had been largely optimistic. Many investors, long accustomed to U.S. markets outperforming their global peers, are now reassessing their allocations. A growing number are eyeing international opportunities as fears mount over the impact of protectionist policies on U.S. assets.

Should you invest in US stocks?

"Investing in the US market offers a wealth of opportunities, but the method you choose—direct stock investment or mutual funds—depends on your financial goals, risk appetite, and investment knowledge. Direct Stock Investment provides investors with full control over their portfolio. You can handpick individual companies such as Apple, Amazon, or Tesla, aligning your investments with personal research and conviction. This approach can yield high returns if your stock selections perform well. However, it also comes with higher risk, market volatility, and the need for continuous monitoring and understanding of company fundamentals, global news, and economic indicators," said CA Ruchika Bhagat, MD, Neeraj Bhagat & Co.

She added that mutual Funds, on the other hand, offer a more diversified and professionally managed approach. They pool money from multiple investors to invest in a wide range of US stocks, bonds, or a combination of both. 

"Mutual funds reduce risk by spreading investment across sectors and companies. Mutual funds are ideal for those who prefer a hands-off strategy and seek steady, long-term growth. They also save time and are managed by experienced fund managers. However, they do come with management fees, and the returns may be slightly lower compared to individual high-growth stocks. For Indian investors looking to enter the US market, mutual funds or ETFs (Exchange Traded Funds) are often more convenient due to regulatory ease, lower tax complexities, and simplified currency conversion. It also avoids the need to open a US brokerage account," Bhagat further said. 

To summarise, if you possess the necessary time, expertise, and willingness to take on higher risks for potentially greater rewards, direct stock investment may be the right choice for you. On the other hand, if you prefer a safer, more passive, and diversified approach to investing, mutual funds or exchange-traded funds (ETFs) may be more suitable. Ideally, incorporating a combination of both strategies can help manage risk and maximize returns in your US investment portfolio.