Quantum Advisors India

As any of you who have read any of my posts know, corporate governance is a theme I'm passionate about. It is therefore a great honour and privilege for me to be in this elite company of Mukundan Ramakrishnan and Sundararaman R to listen and learn from them the challenges and solutions for corporate governance in India As I have often said the key to sustainable corporate success is good governance and if India is to attract international investments this must become world class. Unfortunately sometimes the investor community don't pay enough attention to this. This structured process of using data-driven integrity scores is just what the doctor ordered. The recent examples of governance failures and malfeasance should be an eye opener and an opportunity to learn so they don't get repeated. I will share the key takeaways post the event Tata Chemicals BSEIndia Quantum Advisors India Quantum Mutual Fund Ajit Dayal I V Subramaniam (Subbu) #india #corporategovernance #capitalmarkets #integrity Indian Institute of Corporate Affairs Institute of Directors (IOD), India Indian Institute of Management Bangalore

The world's largest election spectacle concludes this week with much fanfare. However, elections in India do not matter to long term investors in the country. Here's why... 📊 Historical Data: Consistent GDP growth and market returns since 1980, regardless of political party. 🔄 Reform Continuity: Economic reforms continue across different governments, ensuring steady progress. 📉 Market Opportunities: Election-induced market corrections are chances to invest in India’s growth. 🏢 Private Sector Strength: India's economy thrives on private enterprise and global linkages more than government actions. 🗳️ Political Stability: Stable democratic political framework maintain a favourable long-term investment climate despite democratic chaos. For more details, read Arvind Chari's India Pathway on Indian Political Risk...

Every day, 30,000 young Indians join the job market, while 27,000 people retire in the West. This demographic shift presents a unique opportunity for institutional investors. With a young, skilled, and increasingly aspirational workforce, India is poised for significant economic growth. However, the challenge lies in ensuring that job creation keeps pace with this influx of talent. Investing in sectors that promote job growth and skill development is essential. These investments not only offer strong returns but also contribute to social stability by providing meaningful employment opportunities. Ajit Dayal Quantum India Asset Allocation, our Founder, spoke to Arvind Chari, Quantum's CIO, on India's demographic trends highlighting the risks and potential for growth and development. Understanding and leveraging these trends can position institutional investors such as pension funds to benefit from India's dynamic economic future. #GlobalMacro #AssetAllocation #IndiaInvesting

The state of India's consumer demand, accounting for 55% of its GDP, presents a complex scenario for investors. Data reveals a stark disparity in income growth between vulnerable sections and urban professionals. This gap results in slower consumption growth, subsequently dragging down overall GDP growth. Despite the ongoing Indian election, concluding on June 1st, this issue transcends political boundaries. The challenges are compounded by events such as demonetization, GST implementation, and the COVID-19 pandemic, which are reflected in the underperformance of consumer-oriented companies in equity markets. As investors assess the Indian market, it is essential to consider the implications of stagnating consumer demand on India's economic growth prospects. While India continues to attract attention with its geopolitical positioning and potential for foreign investment, these underlying issues in income and consumption demand closer examination. Read more on India – Time for a Reality Check https://lnkd.in/d-DyhK8c #IndiaInvesting #AssetAllocation #GlobalMacro

As we are now more than halfway through the current Indian election, concluding on June 1st, it's important to assess the relationship between politics and India's economic performance. A deep dive into historical data reveals a surprising fact: election results have not significantly altered India's long-term economic trajectory. Over the past few decades, India has consistently grown at an average annual real rate of 6.0-6.5% GDP, irrespective of the party in power, be it left or right, single party or coalition. This steady growth blueprint has been followed by all parties, focusing on broad reforms and economic development. However, challenges remain, such as providing meaningful employment to the educated and aspirational youth and ensuring inclusive growth across all income segments. Initiatives like "Make in India" and production-linked incentives aim to boost manufacturing, but the investment opportunities in these areas are still evolving. In conclusion, while elections generate hype and hope, the reality is that India's economic trajectory has remained steady, growing at 6.0-6.5% real GDP, regardless of election outcomes. As investors, it's essential to maintain a balanced perspective and focus on the fundamental drivers of India's long-term growth story. #IndiaElections #AssetAllocation #IndiaInvesting https://lnkd.in/eZpnjBVr

From "BRIC" to "Fragile Five" to "China+1" - India's investment narrative has seen its share of hype and disillusionment over the past decades. And now with 970 million Indians casting their votes, global investors are keenly assessing the "Hype, Hope, and Reality" of the India opportunity. Watch our latest video interview featuring Ajit Dayal Quantum India Asset Allocation and Arvind Chari as they discuss the key themes driving India's attractiveness: 🗳️ Electoral Cycles: Why India's GDP growth remains remarkably stable across political regimes 💹 Demographic Dividend: Separating the hype from reality in India's consumption story 🏗️ Industrial Ambitions: Navigating the challenges and opportunities in India's manufacturing push 🌐 Foreign Participation: Allocating to India's public and private markets Watch their full conversation here: https://lnkd.in/ejyDjbTj

At Quantum Advisors India, we understand that robust corporate governance is key to navigating the complexities of emerging markets. Ajit Dayal Quantum India Asset Allocation, our founder, emphasizes that the true measure of an investment's value often lies in the governance structures that underpin it. In dynamic sectors like smallcap funds, strong governance does more than meet regulatory standards - it protects against market volatility and risk. At Quantum, our approach goes beyond analysing financial metrics; we carefully evaluate the governance frameworks that support them. By committing to transparency and ethical practices, we ensure that our investments are not just profitable, but responsibly managed. For a deeper understanding of our commitment to governance, consider Ajit Dayal's insights in his latest interview with The Economic Times:

"India, with a GDP of US $3.5 Tn, is where China was in 2006." - A striking comparison that underscores the immense potential for growth and investment returns in India. 📈 As Arvind Chari, our CIO, rightly points out India deserves a dedicated allocation from global investors. The country's young population, growing middle class, and increasing digital adoption create a fertile ground for consumption-driven growth. Moreover, as multinational companies seek to diversify their supply chains, India stands to benefit from significant foreign investment. The regulatory framework and democratic institutions provide a stable foundation for long-term investing. At Quantum Advisors India, we believe that the next two to three decades present a unique opportunity for investors to participate in India's structural growth story. By allocating to India now, investors can tap into the country's long-term potential and benefit from attractive valuations, strong governance, and ample liquidity. #EmergingMarkets #LongTermInvesting #AssetAllocation

India's stagnating non-oil goods exports: A moment for reflection, not pessimism: While India's non-oil goods exports have experienced a slowdown, this is an opportunity to ponder over the country's trade policies and identify areas for improvement. India's strength in service exports, particularly in the IT sector, continues to be a bright spot. As the government works towards enhancing export competitiveness, investors should remain optimistic about India's long-term export potential. With the right policy interventions and a focus on leveraging its strengths, India is well-positioned to capture a larger share of the global market. India: Time for a Reality Check → https://lnkd.in/d-DyhK8c

Fewer than 100 out of 750+ large US corporate pensions with over $6 trillion in total assets are directly registered to invest in the Indian markets. This is despite the fact that many companies, such as Apple, Amazon, and Walmart, are making significant investments and supply chain moves in India. India has emerged as a top global investment destination, driven by its favorable demographics, robust GDP growth, and impressive public equity market performance. In fact, over the past 23 years, Indian equities have outpaced the S&P 500. As US corporations continue to make long-term strategic bets on India, it is crucial for corporate pension funds to align their investment strategies accordingly. By allocating a portion of their portfolio to India-specific investments, these pension funds can potentially capture the immense growth opportunities while effectively managing risks. However, it's important to note that not all investment approaches are created equal. Investing in Indian indices or growth managers without considering governance and valuations can be risky. A more prudent approach is to seek out managers and strategies that focus on sensible returns, liquidity, and high-governance portfolios built with a margin of safety.