Funds
Mugunthan Siva

Yes, we have all heard that India’s growth story is going to be a standout relative to the rest of the developed or emerging economies. So, what is the best way to invest in the India growth story? With equity markets globally at all-time highs, of course we are having... Show More

Macro
Mugunthan Siva

Incumbent Prime Minister of India, Narendra Modi, swept to a significant victory as the National Democratic Alliance (NDA) captured an estimated 357 seats of the 543 seat Lower House (Lok Sabha). Modi’s Bharatiya Janata Party (BJP) captured a majority on its own right (303 seats up from 282 in 2014). Over... Show More

Mugunthan Siva

For those that missed the insights of Day 1 and 2, please click on the following links Grassroots India Tour – Day 1 and Grassroots India Tour – Day 2. For the final day of our India tour, we were back in Mumbai. The day kicked off with a tour... Show More

Mugunthan Siva

Pune is known for its manufacturing and automobile industries as well as its research institutes of Information Technology, Education and Management. Our thoughts on Day 2 was to take delegates to another city within India via the highway system. The Mumbai to Pune highway provides a comfortable route via coach.... Show More

Mugunthan Siva

India Avenue conducted its inaugural Grassroots Tour of India over 3 days from March 11th to the 14th. The tour included nine delegates from Australia and the Pacific with the purpose of exploring India as a long-term investment opportunity as well as myth-busting some antiquated stereotypes. We travelled to Mumbai... Show More

Mugunthan Siva

US based Global retail giant Walmart will buy a controlling stake of 77% in India’s largest e-commerce company Flipkart for US$16 billion, valuing the company at US$21 billion. This deal is the biggest in India’s e-commerce market and marks Walmart’s foray in the e-commerce space. Amazon and Walmart will now... Show More

Mugunthan Siva

Macquarie Bank has been betting big on the world’s fastest growing economy, India, through its various infrastructure funds and joint ventures. One example is their recent L1 (highest) bid of $1.94bn for nine road assets under the Toll-Operate-Transfer (TOT) model. This deal is one of the largest FDI in public... Show More

Mugunthan Siva

India’s Prime Minister, Narendra Modi, was sworn in as India’s new Prime Minister in 2014 to much hype as no party had won by such a margin in 30 years. This was also monumental given his opposition, Congress party’s “Gandhi” domination that has ruled India for 49 of the past... Show More

Mugunthan Siva

Successful thematic investing is not just about correctly identifying long term structural trends but also positioning yourself early to take advantage of them as they unfold. We have identified several positive structural changes occurring in India that make it a very attractive opportunity for thematic investors. This long-term opportunity drives... Show More

Mugunthan Siva

India produces around 3.8m passenger vehicles (PV) a year making them the 5th largest manufacturer in the world. Currently they are behind Japan and Germany who are number 3 and 4 respectively. By 2020, India could potentially overtake both of them. How? India is becoming a global hub for small... Show More

One point to note in Emerging Markets like India is that the Indices are quite often not the best way to assess them. Whilst India may appear expensive at the Index level, there are several attractive companies trading with cheaper valuations, beneath the large and mega caps (e.g. top 10). Significant inflow into India from foreign investors and increased investment from local investors through mutual funds (over the last 2 years) have pushed the largest and most liquid companies into significant premium valuations, providing a falseness about overall market valuations. Definitely a time to avoid market-cap weighted Indices in India! However, some companies like engineering, cement, manufacturing are priced at 8-12x and will be significant beneficiaries in the turn of the business cycle, given excess capacity at present.

On India: A good macro story but fully priced -

Hi Sathyan, Dabur manufactures and distributes its products directly and indirectly (via Kirana or corner stores as it is known here). As 45% of revenue is rural, (with presence in over 40,000 villages) they are able to have such wide distribution reach through 6.3 million retail outlets across India.

On Grassroots Tour of India - Day 1 -

Hi Richard, There are a few options for India. Typically EM, Asia and Global Equity Funds offer between 0-30% allocation. However, for a 100% investment in India you have the choice of four actively managed funds in Australia. India is a country where active management can make a significant difference to returns achieved, given the level of inefficiency which exists typically in any emerging market. Hope this helps. Regards, Mugunthan Managing Director, India Avenue

On Why I wouldn't invest in India -