A booming economy, favorable demographics and a buoyant equity market; the potential of India’s sustainable economic growth is very real.
With the aim of encouraging local and regional investors to capitalize on investment opportunities available in this country, AfrAsia Private Bank and AXYS Capital Management have hosted a unique presentation made by AV Srikanth of Anand Rathi Wealth Management on the 14th June at the IBL Gallery in Port Louis.
Anand Rathi is the investment advisor of the ACM India Focus Fund, recently launched by AXYS Capital Management and AfrAsia Bank as the first open-ended retail fund in Mauritius dedicated to the Indian Capital markets and offering local and regional investors a unique opportunity to participate in India’s growing economy.
Currently the tenth largest economy in the world with a nominal GDP close to that of Japan in PPP terms, India is anticipated to become the third largest economy in the world (behind USA and China) by 2013. India’s economy is currently growing by 8.75% per annum (in 2010) and this GDP growth rate is expected to increase to 9-10% annually over the next 10 years. The Indian stock markets have generated investment returns of over 15% per annum for the last 10 years and experts expect this rate to increase in the next decade, as Indian capital markets continue to burgeon.
During his presentation, Mr AV Srikanth, Executive Director at Anand Rathi Wealth Management, in a snapshot of the growing potential of India, elaborated on how the current headwinds of persistent inflation and higher interest rates are putting a pause to the Indian market. He however mentioned that, going forward, the present concerns are likely to abate. “The global growth concerns are likely to pull off commodity prices and subsequently lower inflation and thereby lower interest rates. As this picture evolves, Indian market will again resume its trajectory of a multi-decade structural bull-run.” he said.
James Benoit, CEO of AfrAsia, spoke on how the ACM India Focus Fund is an exceptionally convenient way for Mauritian and regional investors to tap into the Indian market. He also noted that AfrAsia was the first domestic bank in Mauritius to obtain the Foreign Institutional Investor (FII) license from the Securities & Exchange Board of India (SEBI). The Bank is one of the leading banks to make India easy for investors.
Swadicq Nuthay, Executive Director at AXYS Capital Management (ACM), elaborated on the investment capabilities of ACM. He mentioned the open product architecture in place whereby investors can have access to direct investments in stocks, bonds, derivatives and ETF’s. ACM has its own open-ended funds that cater for markets like Australia, Europe and India. The company has also launched several tailor made structured products in different currencies and strategies - the latest being the BRIC NOTE III which is a 3 year 118% capital guaranteed product and is still open for investment.
Thierry Vallet, Head of Private Banking & Strategic Development at AfrAsia Bank and Managing Director AfrAsia Investments Limited, added, “It is indeed a privilege to be working with the Best Domestic Private Bank in India, Anand Rathi Private Wealth, as voted in the Asia Money Polls 2010 for the second consecutive year. It is our investor centric approach, built on customer oriented communication, long term relationships and enduring wealth creation that will seek to differentiate our investment offerings to the private local and regional markets”.