Kalpen Parekh, President, DSP Investment Managers
In order to highlight and make most of the stupendous Indian growth revival story, DSP Investment Managers (DSPIM) have announced an Old Fund Offering (OFO) of the DSP India T.I.G.E.R fund. Notably, an old fund offering is undertaken with the objective of making the existing investors aware of the resilience, strength, and a proven track record of return generation over many market cycles for the fund.
The OFO is brought forth with the belief that the investment cycle has bottomed and that all the factors for the cycle to pick up positively are in place which implies, providing visibility on spending for the next 3-5 years. Favorable macros, infrastructure investment, and implementation of key economic reforms could momentously drive GDP growth for the country.
“India’s Capex cycle is in the midst of a combination of right government policies like PLI (production-linked incentives), concessional corporate tax, high industry utilisation, and low-interest rates coming together to capitalise on the investment demand. We feel this is a good time to highlight the opportunity to investors and give them a chance to invest in this fund which owns businesses that can harness the opportunity while also having a robust investment framework,” says Kalpen Parekh, MD & CEO, DSP Investment Managers.
As the name suggests, the DSP India T.I.G.E.R Fund aims to reduce concentration risk by incorporating a higher number of good quality stocks and identifying themes and businesses that promise higher visibility, lower cyclicality, and better growth potential, alongside balancing cyclical and secular growth sectors.
Per the fund managers, the government, private, and real estate sectors are expected to see an uptick in spending, bolstered by the state’s renewed emphasis on the National Infrastructure Pipeline, which will further bring to light sectors like roads, railways, and more. This, in turn, will drive up the demand for key inputs like cement, steel, indicating a revival in Capex. Also, owing to low mortgage rates, stationary property prices, and a multi-decade low gap between tax-adjusted mortgage rates and rental yields, a structural framework is very much in place for a solid multi-year demand cycle.
In addition, the managers have also recognised contemporary themes pertinent to this Capex cycle like automation and digitalisation, data centres, renewable energy, and electric vehicles. With a strong potential to scale up manufacturing, coupled with complementary efforts to clamp imports, imposing duties and incentivizing PLIs across sectors such as electronics, chemicals, pharma, and consumer durables over the next five years. India is, per the fund, well-placed to cater and benefit from the global necessity of diversified supply chains.
