Article written by India Avenue Investment Management Australia Pty. Ltd. – 2020

In this paper we reflect on some of our client discussions when engaging on investing in India. These discussions range from retail, high net worth to institutional clients. Commonly asked questions are:

1. Why should I even consider India as an investment option – it is not on the radar
2. Shouldn’t I just leave it to my Global and EM portfolio managers
3. I assume with exposure to companies like Google, Apple, Amazon, Nestle etc., that I am getting exposure to countries like India?
4. How do I go about implementing exposure, if I were to consider it – wont an ETF do the job?
5. I am not sure when I should invest – wait for a market pullback as India seems expensive?
6. How much is appropriate?

In this paper we seek to provide answers to those questions. These answers are the reason we set up our fund four years ago and decided to focus on advice, knowledge and portfolio management for investors seeking India as a growth component in their portfolios.

Today, simple mathematics will tell you that India’s GDP is targeted to be US$5tn by 2027, which will lead its market size to double from current levels if it maintains its market-cap-to-GDP ratio of 0.75. Several quality companies will benefit much more than the level of market growth.

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