The Indian Investment Landscape

Have you thought about investing in India? It’s not just a land of rich culture and history. In fact, India offers a booming market and a young, vibrant population of 1.3 billion. Plus, it’s strategically located between the Middle East and Southeast Asia. The economy is growing fast. Also, there’s a highly skilled workforce, especially in IT and engineering. So, it’s easy to see why India is quickly becoming a top pick for global investors.

Why Invest in India now?

• India is a bright spot for investment. Firstly, the tech industry is set to grow big.
• Additionally, strong government support is fueling a startup wave. As a result, new companies are sprouting up all over. For instance, Bangalore is becoming India’s Silicon Valley, attracting tech talent worldwide.
• Moreover, the government has plans to expand fast internet to rural areas. Consequently, this move is opening new doors for digital investments.
• Meanwhile, the healthcare market is rapidly growing, driven by a health-conscious public.
• Lastly, major projects, like the ‘Smart Cities Mission,’ stand ready for investors, and these efforts are actively shaping India’s cities for the future.

Feeder funds vs Direct funds

Feeder Funds offer a convenient way to invest in a larger ‘master’ fund based in India, providing a simplified entry point into Indian assets.

Direct Funds, denominated in USD(NAV), allow direct investment in a variety of assets like equities, bonds, and alternatives such as real estate. These funds offer more control and choice for investors as they are mostly open ended funds with a choice to buy and exit at NAV.

For both Non-Resident Indians (NRIs) and foreign investors, these options offer unique avenues for diversification allowing them to invest in one of the world’s fastest-growing economies

The following is a list of India-focused USD funds, but it is not an exhaustive list. There are many other funds available, and investors should do their own research before investing.

These funds generally follow a monthly subscription model and the units can be redeemed at market price.

Taxation

Taxation Policy for Foreign Investors in India
Foreign investors in India generally face taxes only in their home country, thanks to India’s Double Taxation Avoidance Agreements (DTAAs) with over 90 countries.

UAE Nationals and Their Unique Tax Benefits
For our friends in the UAE, the deal is even sweeter. A special treaty allows profits earned in India to flow back to the UAE tax-free. It’s a win-win!

Understanding the Double Taxation Avoidance Agreement (DTAA)
DTAAs are investor friendly, preventing double taxation and ensuring favorable tax rates on income earned in India.

Conclusion: Are You Ready to Invest in India?

India stands as a beacon of opportunity, with a market that is both welcoming and teeming with potential. From its rich, diverse culture to its array of investment prospects, this nation is more than ready for investors looking to make a significant impact. For those eager to embark on this promising journey, expert guidance is readily available.

To know more about Investing in India, reach out to us below

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Fund Review: Rangoli India Fund-Series A

Overview:

The Rangoli India Fund, a sub-class under the K India Opportunities Fund Limited, targets long-term capital growth by investing in equity and equity-linked securities of Indian companies listed on Indian stock exchanges. The fund is managed by Kotak Mahindra (International) Ltd, Mauritius, with advisory services provided by Unifi Investment Management LLP, Gift City, India.

Investment Objective & Strategy:

• The fund follows a concentrated, long-only, flexi-cap, sector-agnostic strategy in listed Indian equities, anchored in the GARP (Growth at a Reasonable Price) principle, focusing on 15-20 exceptional businesses with a strong growth bias.
• This fund aims to expose its portfolio to the underlying drivers of India’s growth, including demographic factors, productivity gains, and public policy initiatives aimed at unlocking productivity.
• The funds invest in businesses led by exceptional entrepreneurs with unimpeachable integrity and industry-leading business acumen, focusing on non-speculative and inherently capital efficient business models.
• The fund’s valuation principles center on four critical metrics for minority investors: governance, sustainability of earnings growth, capital efficiency, and debt burden, aiming to find quality businesses at fair valuations.

Portfolio Breakup

Historical Performance:

                          Data as on September 30, 2023

Fee Structure:

Conclusion:

The Rangoli India Fund is poised to outperform due to its strategic focus on high-quality, growth-oriented businesses, its exposure to the key drivers of India’s economic growth, and its disciplined adherence to critical valuation metrics. This unique approach allows the fund to capitalize on the diverse opportunities in the Indian equity market, potentially delivering superior long-term returns.

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Read more about PMS Review: Sameeksha Capital Equity Fund 

Overview:

Sameeksha Capital’s fund invests in Indian companies with growth potential across different market sizes. Their approach involves choosing companies with strong business models and shareholder-focused management to deliver good returns. Investment strategy aims to deliver attractive risk-adjusted returns while safeguarding against permanent capital loss, making it a viable option for investors seeking superior long-term performance.

Data Source: https://pmsbazaar.com/Strategy/Sameeksha_Capital_-_Equity_Fund/Sameeksha-Capital-Pvt-Ltd

Fund Manager: Mr. Bhavin Shah

• Highly awarded professional with a decade-long number one ranking by the Global Institutional Investors.
• He has as over twenty years of experience and has led in building top-ranked Institutional Equity franchises at JP Morgan, Credit Suisse, and Equirus.
• Bhavin established Sameeksha Capital to manage his personal savings and provide others the opportunity to benefit from his expertise.
• Bhavin has appeared on various business TV channels and magazines to share his views on equities.
• He uses a 140-point checklist and a rules-based investment approach to identify good investment opportunities.

Investment Strategy:

Data Source:https://app.pmsaifworld.com/pms-details

Historical Performance

Data Source: https://sameeksha.capital/june-2023-outperformance-in-strong-month-at-the-top-again-for-the-five-year-period/

Reduced Risk, Enhanced Returns:

• The portfolio has Beta of 0.9.
  This means that the portfolio is less volatile that the index. For example, if the value if index drops by 10%, then the portfolio will only drop by 9% offering a level of stability and reduced risk.
• Sameeksha PMS has delivered an annualized alpha of 5.6%.(from inception)
  It means that the PMS fund has outperformed its benchmark index by 5.6% on an average annual basis. For example if the index has delivered 12% on average basis, then the fund delivers 17.6% (12+5.6%) on average. 

This shows that the fund delivers better returns than the index with lesser risk.

Fee Structure:

Variable Fee
AMC : 0.50% or 0.80% or 1.20%
Hurdle : 3% or 7% or 10%
Profit Sharing : 20% Profit Sharing Above Hurdle

Exit Load
1st year – 3%
2nd year – 1%
3rd year – 0%

Conclusion:

Sameeksha Capital’s fund, led by Mr. Bhavin Shah, offers a growth-focused investment strategy with reduced risk, delivering enhanced returns making it an appealing choice for investors seeking superior long-term performance.

Disclaimer: This research is for informational purposes only and does not constitute investment advice. Please do your own due diligence and consult your financial advisor before making any investments.

If you want to explore PMS, please reach out to us.

Read More about Financial Products: Fund Review: Rangoli India Fund – Series A