Should you
invest in IDFC Equity Opportunity Series 6?
Consider
this:-
- India was the 10th. Largest economy (in terms of US dollar) in 2014. By 2018, India was the 6th largest economy (in terms of US dollars)
- The Indian economy which was in a slow motion between 2004 to 2014, seems to be turning around in 2018.
- With the imprints of DeMo fading and with GST gradually gaining traction, consumption is back with vigor, leading to recovery in gross utilization numbers across sectors.
- We are seeing some green shoots --- manufacturing activity has hit its highest level in 5 years and commercial vehicle sales, which is a proxy for growth, surged by 60 to 80 percent in December.
- Indian growth story is predominantly dependent upon domestic demand, unlike export based economies like China, or commodity driven economies like Brazil, Russia etc.
- GST collection in April’2018 crossed Rs. 1 lakh crore.
So, what’s
driving the Indian economy?
Demand in the
economy is driven by 3As—Awareness, Affordability, Availability.
In absence of
any of one A— demand will be missing or low
Growing
middle class, rising literacy rates, distribution push and brand pull is
transforming India from A to 3A.
A classic
case of missing of either one of the A is Bajaj Scooters & Ambassador
Cars—there was Awareness and Affordability but no immediate Availability. Hero
Honda (erstwhile) became world’s largest bike manufacturers.
It took India
70 years to reach $2.50 trillion economy.
It will reach $5 trillion economy in next 5-7 years—and this is not
possible if economy is not growing.
So, where is
the growth going to come from? Growth will come from factors like
- Growing consumption data base.
- Strong technology adoption (for example:- Direct Benefit Transfer).
- Improve supply chain management(facilitated by increasing road connectivity)
IDFC Mutual
Fund has come out with a NFO to benefit from a burgeoning economy.
The fund will focus on companies
- With high promoter holding..
- Capable & focused management driving the business
- Which are consistently generating above average RoE
- With low financial leverage.
To end we
would just say...
“jo lega, so
paayega”
Opportunity
knocks more than once at AIMS.
