Ahmedabad,21August 2024:India is at the cusp of a multi-year growth. “While markets may seem to be quoting at a premium today, they are backed by strong, sustainable long-period growth,” said Sumit Jain, Deputy CIO, ASK Investment Managers (ASK), in an engaging discussion with the media in Ahmedabad today.
He was accompanied by Nimesh Mehta, Director and Head,Sales and Products, ASK Investment Managers. ASK is looking to tap into the state’s growing retail investor base, which accounts for just under 10% of total retail investors, as per BSE data. At 2.96% Mutual Fund Assets under Management (AuM) as a percentage of MF Total AuM, Ahmedabad is estimated to be the 7th largest in the country. Over the last 5 years, Ahmedabad’s MF AuM has grown at a CAGR of 16% to Rs 1.81 lakh crore as per AMFI data.
- ASK’s total AuM in Ahmedabad has grown faster at 18% CAGR over the same period and stands at Rs 1,113crs
- Ahmedabad’s share in ASK’s Portfolio Management Services (PMS) AUM has also grown from 3.43% to 4.19 % in the last 5 years
Nimesh Mehta said, “Ahmedabad is a focus market for ASK Investment Managers. We’ve seen a consistent rise in our AUM here over the past 5 years and we look forward to making further inroads with the savvy investor segment here. The Gujarati instinct for business and investments is a well-accepted fact, and it is also reflected in the growing number of individuals and families in the state who are Ultra High Net Worth (UHNI) and High Net Worth (HNI). We believe that our investment solutions and investment philosophy focusing on long-term growth resonates well with our growing client base here.”
Commenting on the perceived volatility in Indian markets, Sumit Jain said that the volatility in India this time is different. Earlier, in volatile times, the currency would have seen a drop; this time, it has been relatively resilient. We are seeing relatively lower volatility both in currency and equities.
He further added, “Current earnings multiples and valuations are backed by superior margins and superior capital efficiencies. Balance sheets of stakeholders are much better than in the past, so a comparison with the past may not be the right thing.”
As an investment philosophy, ASK Investment Managers Limited focuses on long-term opportunities. Investments are focused on businesses that have secular opportunities and are run by management that hasexecution prowess. Domestic-oriented businesses in manufacturing, automation, defence, energy transition, discretionary consumption,etc, offer multi-year growth opportunities.
