Date: 27th Aug 2021 | Publication: Ausbiz
Mugunthan Siva India from India Avenue Investment Management says that India is at the bottom of the cycle in terms of earnings potential compared to the US which is closer to the top of the cycle. And the Australian cycle might not be entirely too far away from its own zenith of sorts. But over in one of Australia’s most valuable, most prospective partners, the economic orbit is showing signs of taking off. The latest Reuters poll of over 40 economists predicts India’s economy over the June quarter will have grown at its fastest on record. This despite the weight of a first wave, compounded by a second Delta driven wave that is still abroad across the nation of over one billion. Mugunthan says this resilence and many other reasons justify why India is not overvalued and in fact may be undervalued. The stars over Delhi are aligning somehow, before Mugunthan’s eyes. From the low interest rates the Bank of India has all but pledged will not be hitting reverse on anytime to the rising investment, a business cycle at its starting post as well as booming exports – he tells Andrew Geohega, yes, the operating leverage could be significant.
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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.