Reasons to Invest
Low Economic and Capital Market Correlation
Robust Profit Growth
Locally based Stock Pickers
Ahead of the Curve
5 REASONS TO INVEST
India’s demographics provide a strong tailwind given its sizeable, youthful and aspirational population. With over 50% of the population aged below 30, it is expected than locally listed companies will prosper from the increased need for infrastructure, a growing consumption base leading to changing tastes and preferences and the emergence of several industries which create a comparative advantage for India’s exports.
India given its significant growth is a commodity importer and thus has low economic and capital market correlation to economies like Australia and New Zealand. This means investing in India provides diversification to investors based in more commodity producing economies, with investments in their local equity markets. This is particularly apparent in how the currency of India (Rupee) behaves relative to the Australian or New Zealand Dollar.
India’s equity markets contain over 6,000 listed companies, with several still yet to be researched by stockbrokers or discovered by a broader base of investors. This provides significant opportunity for investors to participate in their growth from an earlier stage. We believe India is a market which is highly conducive for astute, locally based stock pickers who understand their own ecosystem through their own experiences. Our Fund provides access to some of India’s best stock pickers.
India’s listed companies have been able to generate robust profit growth over the last few decades given the benefits of scale. As most industries in India are driven by structural tailwinds, the profitability of these companies allow for significant compounding benefits for investors. Company management is generally focused on driving capital growth for investors, which again provides a difference to the equity markets of Australia and New Zealand, which tend to be more yield driven.
India is going to be the world’s third largest economy by 2035, if not before. Investors should seek to be ahead of the curve, rather than follow other large institutional investors into it. India’s stock markets are difficult to navigate, but investing through a Fund like ours makes it easy.
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.