"Now is the right time to invest globally, opportunities are vast," says Chandresh Nigam on Axis Special Situations Fund
Investors in India have missed out on 97 percent of the global equity opportunities because their portfolios have been allocated to the Indian equity markets, which represents just 3 percent of the global equity markets.
In conversation with Vishal Krishna, Business Editor, YourStory, Chandresh Nigam, MD and CEO, Axis Asset Management Company Ltd, spoke about why Indians are not investing globally.
"The reason is habit, and there is a reasonable rationale for that habit. Over the last 30 years, India's economy is growing, so people thought there was no need to go global.”
He said that select global companies are doing better and it's the right time for investors to look at global markets. Also, diversifying investments is always a good idea because the risk is high when you invest in just one area, he added.
With that in mind, and to help investors get the best out of global allocation, they have tied up with global asset management giant, Schroders, to launch the Axis Special Situations Fund. It is an open-ended equity scheme that follows a special situations theme focusing on disruptive growth opportunities. This product is suitable for investors who are seeking capital appreciation over long-term or looking to invest in stocks based on a special situations theme.
Chandresh said that the reason people think equity is risky is because they want to make money quickly. Axis is a business-focused investor and not a stock-focused investor. "Our funds are suited for medium and long-term, have low risk and high quality. Investors should look at the thematic portfolio with a 3-5 year period. It would add to the investing experience,” he said.
Schroders will be an advisor for the fund’s overseas investments, since their long-term thinking and clear investment styles ties in with Axis' investing philosophy. Investors can explore sectors not available in India through this collaboration.
Talking about the pace of disruption, Chandresh said, “There has been a series of global trends that began long before the pandemic. The pandemic just made it disruptive. Companies who usher in the change will create more impact." For those who already have a mutual fund portfolio, but haven’t tried global investing or quality investing, Axis Special Situations Fund is the gateway.
Watch the full conversation here