Axis Mutual Fund believes consumer spending is what will drive growth in the Indian markets.
- They believe this sector can give good returns even if the stocks might seem expensive.
- “If you want to play India, you need to invest in stories that are directly linked to consumer spending in some form,” Jinesh Gopani, head of equities at Axis Asset Management Co.
- 26% of the allocation of Axis’ Long Term Equity Fund is held in the consumer sector.
- This fund has given over 24% over the last 5 years.
- “Valuation depends on what is your long-term horizon. If you feel India is going to grow at 7 percent to 7.5 percent for the next 10 years, consumer companies at the bare minimum can grow at 1.5 times of that GDP growth or maybe more,” said Jinesh Gopani.