Welcome to Ind-Former,

This publication is to provide those interested in following the India growth story, through the lens of India Avenue’s Equity Fund, with a regular update of:

1. India Avenue performance relative to its peer funds and peer asset classes
2. India’s latest macroeconomics
3. Key points to note over the next month

Markets and our Fund

January 2020 produced a return of 3.8% from the MSCI India in AUD terms. This was almost all driven by the fall in the AUD relative to the Rupee (4.4%). Whilst India’s large caps (measured by the Nifty-50) fell 1.7%, mid-caps and small-caps rose by 5% and 6% respectively – a contrast to 2018 and most of 2019.

The India Avenue Fund has produced a strong outcome since the Corporate Tax Reform, benefiting from improving sentiment and the prospect of an economic and earnings recovery. If the recovery persists (which we expect) then our Fund is likely to be one of best ways to play the India Growth story.

The Nifty index performed well in 2018 and in the first half of 2019. However, since the launch of the two ETF’s in Australia (post the rally in the Nifty), we have seen active management outperform as valuations of the index enter expensive territory. Developed markets have performed well over the last 12 months outperforming India and Emerging Markets in AUD terms.

However, as we have been suggesting, India is likely to be an outperformer of Emerging Markets and provide greater diversification for an Australia Equity investor. We expect 2020 to be a year where India and EM attract more attention from global investors

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