Date: 13th Apr 2023 | Publication: Ausbiz
India’s investment opportunities
India is benefitting from supply chain diversity due to the need for governments and corporates globally to diversify their reliance on China. That’s the view of Mugunthan Siva, Managing Director of India Avenue Investment Management, who has just returned from tour of India. Mugunthan says compounded with India’s large employable population, an increase in manufacturing, exports and consumption is expected.
Mugunthan underscores the significance of India’s shifting demographics, as an escalating number of working-age individuals propel the nation’s growth. India’s strategy involves concentrating on local manufacturing, decreasing dependence on imports, participating more in the global supply chain, and enhancing infrastructure through government capital expenditures. Mugunthan also identifies opportunities for foreign investment, such as Apple’s expansion into India and Indian businesses acquiring companies overseas. The country’s ongoing digitisation is projected to have positive effects on the economy, driven by increased internet penetration rates and the growing adoption of smartphones. Furthermore, Mugunthan says political stability is expected to remain solid, with the BJP party under Narendra Modi’s leadership likely to continue in power after the 2024 elections.
India Avenue is a boutique investment management firm providing investment solutions that allow our clients to benefit from India’s remarkable growth story.
The journey towards the “birth” of India Avenue originated in 2005, when ING Investment Management started a business in India as a separate division, utilising a practiced multi-manager philosophy in markets like Australia, and exported it to India. Three of our founders, Mugunthan Siva, Rajeev Thakkar and Sajjan Raut Desai worked together for INGIM (India), building investment strategies and structures, under this philosophy and applying them to Indian capital markets
In 2011 our founders started discussing the possibility of building an investment firm with a capability to provide a focus on India as an stand-alone investment jurisdiction for foreign investors. The founders identified Australia and New Zealand as nascent markets for investing in regional locations, with the potential to accelerate given education and insights which the firm could provide.
By 2015 the group of founders decided to work full-time on this concept to bring it to life. They did this by leaving their existing employment, thus exercising high conviction in the investment region of India as a long-term structural story for investors in Australia and New Zealand. Thus, the firm India Avenue Investment Management was registered and came to life in 2015 in Sydney, Australia.
After building our business for a period of 12 months, our first fund, The India Avenue Equity Fund was launched on 6th September 2016, with strong service provider partners like Equity Trustees (RE), Mainstream (Fund Administrator), KPMG (Fund Auditor) and BNP India (Custodian).
India Avenue is now a boutique investment business firm, with clients spread across family offices, high net worth individuals, wealth advisers and financial planning firms. Our firm has focused on education and knowledge as a driver of investment behaviour and have taken a long-term approach towards Australian and New Zealand investors contemplating an allocation to India’s growth as part of their portfolios. Our firm has assets in excess of A$50m and the India Avenue Equity Fund is rated “Recommended”* by Lonsec and is available on multiple investment platforms across Australia and New Zealand.