Indian stock market
Talking Factsheet
Jupiter India Strategy
Leighton Riley gives an overview of Jupiter’s India Select strategy, how the investment process works, and how the team seek to generate alpha.
India is an incredibly exciting market to invest in. Not only does it offer investors access to one of the fastest growing economies on the planet, but it’s also broad and deep, with over 5000 listed companies, and almost 500 companies with market caps north of $1 billion.
Avinash Vazirani & Colin Croft, Investment Managers, and Leighton Riley, Investment Director
Our investment approach
The fund aims to provide a return, net of fees, higher than that provided by the MSCI India Index over the long term (at least five years). Avinash and Colin focus on achieving long term capital growth through investments primarily in Indian companies.
Unconstrained by benchmark, style or market cap, Avinash and Colin follow a growth at reasonable prices philosophy by seeking to invest in best-in class companies.
Why India
India has strong growth fundamentals
The South Asian country is the next emerging giant -like China in the 2000s, or Japan in the 1960s. With the country poised to become the world’s third largest economy in the next few years, we think no other country offers this combination of scale, governance and high-visibility growth. The long-term investment case for India is driven by a host of factors including domestic consumption, favourable demographics, technology, and financial inclusion.
Most populous nation on earth
With favourable demographics
On track to become the third largest economy by 2027
(Source: CIA Factbook, Jan 2024)
- The Indian market has outperformed other major markets
- Superior forward earnings growth*
Over 20 years, the MSCI India outperformed the S&P 500 by 97pp in USD terms
Meet the team
Avinash is the Investment Manager of the Indian Equities Strategy. Before joining Jupiter in 2007, Avinash was Managing Partner of Peninsular Capital Partners LLP, which he founded in 2005. Prior to this, he was CIO (South Asia and Africa) of BNP Paribas Asset Management. He was also CEO of GEM Dolphin Investment Managers from 1994 until its sale in 1997. He began his investment career in 1994. Avinash is a qualified Chartered Accountant.
Colin is an Investment Manager in the Global Emerging Market Equities team. Colin began his investment career in 2006. He has an Executive MBA.
The team is supported by Leighton Riley, who is an Investment Director in the Global Emerging Market Equities team.
Fund specific risks
- Derivative risk – the Fund may use derivatives to reduce costs and/or the overall risk of the Fund (this is also known as Efficient Portfolio Management or “EPM”). Derivatives involve a level of risk, however, for EPM they should not increase the overall riskiness of the Fund.
- Currency (FX) Risk – The Fund can be exposed to different currencies and movements in foreign exchange rates can cause the value of investments to fall as well as rise.
- Market Concentration Risk (Geographical Region/Country) – Investing in a particular country or geographic region can cause the value of this investment to rise or fall more relative to investments whose focus is spread more globally in nature.
- Smaller Companies – The Fund invests in smaller companies, which can be less liquid than investments in larger companies and can have fewer resources than larger companies to cope with unexpected adverse events. In less favourable market conditions these companies may therefore under-perform larger companies and the fund may under-perform funds that invest predominantly in larger companies.
- Pricing risk – Price movements in financial assets mean the value of assets can fall as well as rise, with this risk typically amplified in more volatile market conditions.
- Liquidity Risk – Some investments may be hard to value or sell at a desired time and price. In extreme circumstances this may affect the Fund’s ability to meet redemption requests upon demand.
- Counterparty Default Risk – The risk of losses due to the default of a counterparty e.g. on a derivatives contract or a custodian that is safeguarding the Fund’s assets.
- Charges from capital – Some or all of the Fund’s charges are taken from capital. Should there not be sufficient capital growth in the Fund this may cause capital erosion.
- Emerging Markets Risk – Emerging markets are potentially associated with higher levels of political risk and lower levels of legal protection relative to developed markets. These attributes may negatively impact asset prices.
For a more detailed explanation of risk factors, please refer to the “Risk Factors” section of the Prospectus.
Important information
This is a marketing communication. Please refer to the latest sales prospectus of the sub-fund, particularly to the sub-fund’s investment objective and characteristics including those related to ESG (if applicable), before making any final investment decisions.
An investment constitutes the acquisition of shares in the sub-fund, not in the sub-fund’s underlying assets. We recommend you discuss any investment decisions with a financial adviser, particularly if you are unsure whether an investment is suitable. Jupiter is unable to provide investment advice. This communication is for informational purposes only and is not investment advice. Market and exchange rate movements can cause the value of an investment to fall as well as rise, and you may get back less than originally invested. Initial charges are likely to have a greater proportionate effect on returns if investments are liquidated in the shorter term. Past performance is not a guide to future performance. Company/Holding/Stock examples are for illustrative purposes only and are not a recommendation to buy or sell. Quoted yields are not a guide or guarantee for the expected level of distributions to be received. The yield may fluctuate significantly during times of extreme market and economic volatility. Awards and Ratings should not be taken as a recommendation. Every effort is made to ensure the accuracy of the information provided but no assurance or warranties are given. This is not an invitation to subscribe for shares in the Jupiter Investment Fund (the Company) or the Jupiter Global Fund (the Company), or any other fund managed by Jupiter Asset Management Limited or Jupiter Asset Management International S.A.. The Companies are UCITS funds incorporated as a Société Anonyme in Luxembourg and organised as a Société d’Investissement à Capital Variable (SICAV) with registered office: Citibank Europe plc, Luxembourg Branch, 31 Z.A. Bourmicht L-8070 Bertrange, Grand Duchy of Luxembourg. The Management Company is Jupiter Asset Management International S.A. (JAMI), registered address: 5, Rue Heienhaff, Senningerberg L-1736, Luxembourg, authorised and regulated by the Commission de Surveillance du Secteur Financier. The sub fund may be subject to various other risk factors, please refer to the latest Prospectus for further information. Prospective purchasers of shares of the sub fund of the Company should inform themselves as to the legal requirements, exchange control regulations and applicable taxes in the countries of their respective citizenship, residence or domicile. Subscriptions can only be made on the basis of the latest Prospectus and the Key Information Document (KID/ Key Investor Information Document (KIID), accompanied by the most recent audited annual report and semi-annual report. These documents are available for download from www.jupiteram.com. The Manager may terminate marketing arrangements. Information on sustainability-related aspects is available from www.jupiteram.com.