The Alquity Indian Subcontinent fund is a unique offering as its domestic focus often sees the team look past the larger companies in the index and invest in businesses which tend to be overlooked. With a high conviction approach, the fund is not for the faint hearted, but the team are exceptional at what they do and the long-term tailwinds surrounding demographics, urbanisation, political stability and a shift towards a formal, organised economy, support the case for long-term growth.
What’s covered in this episode:
- How favourable demographics, urbanisation and a thriving private sector are driving the exponential growth of the Indian economy
- How a rising middle class and a mismatch between supply and demand is boosting business for firms like Lemon Tree Hotels
- Why the domestic growth story gives India such a strong advantage over its peers
- Why the team sees real value in banks as a “mispriced opportunity in the portfolio”
- How the uncorrelated nature of Indian equities is driving dedicated exposure from investors
- Why the premium you pay for Indian equities is justified and should not deter investors targeting long-term growth
- Why oil prices are the biggest concern to the Indian economy and the move to renewable energy to counteract this threat
- How the role of Prime Minister Narendra Modi, as a reformist, has bolstered the economy and the benefits of his tenure being extended
- The importance of sustainability in the investment process
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