Fund in focus - Funds - The Share Centre

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Fund in focus

Each week, our analysts put the spotlight on a fund from our Platinum 120 range of quality funds, which they believe has strong management and performance prospects for the medium/long term (generally 3+ years). Each fund is given a risk rating and is classified by IMA Sector to give you a broad idea of its objectives or underlying assets. This week's Fund in focus is...

Jupiter India I Fund Acc


  Fund IMA Sector Current
price (pence)
Our risk rating Add to watchlist?
 Jupiter India Fnd IA Specialist 142.3200  H10 Watch
Recommended at p on 19 May 2017

Find out more about this fund.

Our view

India

A number of factors are converging that has been giving India prominence on the global economic stage. Factors such as high growth rates in the industrial and service sectors, significant population growth, emerging strong domestic demand, as well as, a new government that is pro-business. A mix of which makes it hard to be ignored as a long-term investment opportunity.


• Population growth and a high proportion of the population being of working age is good news for its economy.
• A growing, educated middle class that is becoming more affluent will drive demand for consumer growth.
• Inflation has been falling helped recently by the falls in the price of oil. Over the long-term, lower inflation should be supportive of consumer borrowing power giving an additional boost to demand.
• The government has been targeting projects to improve infrastructure and it intends to introduce a goods & service tax, which should increase government tax revenue to help it support economic development programs.

The regional election outcome in India in March 2017 was more pro-Modi than many were expecting, potentially increasing the chances of his government taking a second term comfortably when elections take place in 2019.

Fund positioning

Avinash Vazirani the fund manager believes that the outlook for the economy looks extremely positive. Avinash believes the recent win (March 2017) by the BJT (Modi's political party) was well ahead of expectations in the state elections and should further strengthen the long-term case for investing in India.

He believes that the companies that the fund invests in are well positioned to capitalise on the low inflation and increasing participation among local investors. Such an environment he believes throws up some exciting opportunities when it comes to picking stocks to invest in.

The manager currently has the majority of the funds exposure in the Financial, Consumer Goods and Industrials. 62% of the portfolios exposure is in large companies, 25% in mid-sized companies and the rest is in smaller companies or cash.

About the fund

The Jupiter India fund is managed by Avinash Vazirani, who has been at the helm since its launch back in February 2008. His style of investment is very much identifying companies on the strengths of their fundamentals. He principally uses a process referred to as a GARP measure (Growth at a Reasonable Price). However, if an opportunity exists, he will be prepared to pay a premium if the earnings growth compensates for this. The manager invests across the capitalization scale.

Observations

India's importance as an emerging economic region is increasing and for those investors who accept a higher degree of risk, an opportunity to benefit from the expected growing global importance and hence the potential growth that this nation will naturally bring.

For those investors who can clearly appreciate the economic opportunity this region affords, and who are prepared to accept a higher degree of risk and are patient, then this fund may well suit.

Comment last reviewed May 2017

Author: Sheridan Admans Investment Research Manager

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