India Fund

Hunting for Indian small caps with the potential to go BIG

Date: 08th Feb 2022 | Publication: Ausbiz

A high-conviction option to play India’s growth potential

After outperforming in 2021, the Indian market is seeing risk-off behaviour. Growth stocks – particularly in tech or those yet to report earnings – are being sold off as more question marks arise around where market momentum is shifting. Mugunthan Siva from India Avenue Investment Management says this is to be expected after many institutional investors jumped onboard the emerging market last year and may even present a buying opportunity for cautious investor. In the short term, investors need to be wary of volatility as many jump ship. Those in it for the long haul, can take this time to selectivity add quality growth options to their portfolio. Mugunthan says green flags to watch on the horizon include companies expanding market share in growing industries and have ample access to capital. Averaging in is Mugunthan’s preferred approach for investing in the Indian market.

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