Unlocking potential: How India's growth is creating investment opportunities

As the recessionary blitz hits economies globally, India is assumed to beat the crisis, driven by strong macroeconomic fundamentals.

It is estimated the country's Gross Domestic Product to continue its climb to at least around 6% in the 2023-24 fiscal.

To keep the ball rolling, the Indian government has laid out sustainable budget proposals to help expand the economy. This includes a 33 per cent increase in the capital investment outlay to Rs 10 lakh crore on the development of public infrastructure besides allotment of ₹35,000 crores for priority capital investments for energy transition and a slew of tax relief measures for the working class to boost consumption. 

Backed by various government policies, including the robust Make in India initiative, the country's manufacturing sector is one of the key players behind the economy's upward trajectory. It is also estimated to continue in the expansion under the current global economic turmoil.

While the optimistic macroeconomic scenario does not fully guard India against market volatility, its expanding growth does set the stage for potential corporate expansion and long term wealth creation.   

How can one tap into this investment opportunity?

Economic growth is generally reflected in the performance of the equity markets. Accordingly, investors may want to consider purchasing Indian equities. These can be directly transacted on the stock exchanges by the investors or through the mutual fund route. 

Mutual fund schemes are usually well-managed portfolios backed by extensive market research from financial experts to help investors meet their goals through investments in various assets like equity, debt, gold, among others. 

Based on the type and an investment objective mutual fund schemes invest across different asset classes and tap into various sectors / themes that seem to offer growth potential.  Mutual fund schemes as an investment vehicle can be suitable for investors looking for systematic investments and wealth creation in the long term.

One of the main aspect of investments in sectoral / thematic funds is that they aim to capture the potential growth of that particular space.

A case in point is the Kotak Manufacture in India Fund (“Fund”)

The Fund was launched in February 22, 2022 and it invests in a diversified portfolio of companies that follow the manufacturing theme, giving you an opportunity for long term wealth creation alongside the growing Indian economy.

The returns delivered by the Fund since its inception are over 7% and the Fund has generated an alpha of over 3%, where alpha is the difference of the Fund return with the benchmark return**. 

So, start working on an investment strategy which can help to benefit from the Indian growth story.

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** Data as on March 31, 2023, for Regular plan-growth Option. Benchmark of Kotak Manufacture in India Fund is Nifty India Manufacturing Total Return Index. Refer below for complete and detailed scheme performance details.
Source:

The Press Information Bureau, Government of India, 01 Feb, 2023

The Press Information Bureau, Government of India, 31 Jan, 2023 https://www.pib.gov.in/PressReleasePage.aspx?PRID=1895315

https://pib.gov.in/PressReleasePage.aspx?PRID=1894932

Scheme Inception date is 22/02/2022. Mr. Harish Krishnan & Mr. Abhishek Bisen has been managing the fund since 22/02/2022. Different plans have different expense structure. The performance details provided herein are of regular plan Past performance may or may not be sustained in future. All payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV. Returns >= 1 year: CAGR (Compounded Annualised Growth Rate). N.A stands for data not available. Note: Point to Point (PTP) Returns in INR shows the value of ₹10,000/- investment made at inception. Source: ICRA MFI Explorer. # Name of Scheme Benchmark. ## Name of Additional Benchmark. TRI - Total Return Index, In terms of SEBI circular dated January 4, 2018, the performance of the scheme is benchmarked to the Total Return variant (TRI) of the Benchmark Index instead of Price Return Variant (PRI). Alpha is difference of scheme return with benchmark return. Data as on 31st March 2023

Fund Manager details and performance details of other schemes managed by them.

The information contained herein is extracted from KMAMC internal research/different public sources. All reasonable care has been taken to ensure that the information contained herein is not misleading or untrue at the time of publication. This is for the information of the person to whom it is provided without any liability whatsoever on the part of Kotak Mahindra Asset Management Co Ltd or any associated companies or any employee thereof. Investors may consult their financial experts before making any investment decision. Past performance is no guarantee of future returns.

This document includes statements/opinions which contain words or phrases such as "will", "believe", "expect" and similar expressions or variations of such expressions, that are forward looking statements. Actual results may differ materially from those suggested by the forward looking statements due to risk or  uncertainties associated with the statements mentioned with respect to but not limited to exposure to market risks, general economic and political conditions in India and other countries globally, which may have an impact on our services and/or investments, the monetary and  interest policies of India, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices etc.The sector(s)/stock(s) referred, if any, should not be construed as any kind of recommendation and are for general information only.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.