Our strong inhouse belief in the India growth story stems from primarily the data points which are overwhelming.
Consumption led growth potential
Till a few years back the BRICS countries were the growth engine for the world
economy.However ,things have dramatically changed .While Russia and Brazil are
facing severe slowdown as both are commodity driven economies and the crashing
commodity prices have proved to be a dampener .On the other hand China which
had all the while seen an export led growth
Equity overtakes other investment vehicles
There has been a significant shift in the perception of investors which till some
time back was dominated by real estate ,gold ,debt ,instruments ,etc.However
,with rental yields now down to abysmal levels of sub 2% in the wake of spiralling
real estate prices this space now does not hold the same risk reward attraction as
earlier.Besides with easy monetary policies world wide ,gold which is largely an
investment vehicle for risk averse investors does not hold the same attraction.
Debt has been on the bottom of preferred list of investments due to the falling
interest rates .Thus equity is back on the priority list of investments and even the
domestic mutual funds inflow bears out this preference and the domestic mutual
funds daily buying into equities shows a positive trend .
Expected turnaround in economy
The economy is still grappling sluggish times but green shoots are visible in the
macro data which suggests that better times are ahead and an uptick in the
economy could result in a sharp re-rating of the country leading to surge in