inews, Jayna Rana, November 5, 2021 6:11 am
This week marks Diwali, also known as the festival of lights, an auspicious occasion celebrated by millions of people in India and around the world.
To celebrate, we take a look at the country which is on track to be one of the world’s next superpowers, with its young population, rapidly expanding economy and close links to other dominant countries.
Investment bank Jefferies recently said that India’s economic cycle suggests conditions are ripe for annual economic growth of between 8 per cent to 9 per cent over coming years. It thinks that the country is set for a repeat of its 2004 to 2010 style upturn which saw its markets boom.
One way investors can benefit from India’s growing economy and investment opportunities is through the India Capital Growth fund (IGC), a small but strong-performing investment trust with a focus on small- to medium-sized businesses.
David Cornell, chief investment officer at Ocean Dial Asset Management (ODAM), which runs IGC, told us in an investor call just this week that, after 18 months of volatility in its new post-reformation world and amid the coronavirus pandemic, animal spirits are finally returning in India and that there are many pockets of value to be found for investors.
Though it is the smallest trust amongst its peers in the Association of Investment Companies’ India sector at £132m, IGC is one of the best-performing year-to-date, behind only the £188m Ashoka India Equity investment trust.
Since the start of 2021, its share price has delivered 40 per cent while its net asset value is up 35.5 per cent.
For comparison, the average UK Equity Income and Global trust has returned 15.5 per cent and 10 per cent respectively in share price terms over the same period.
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