Ashoka India Equity – A unique approach to a vital market

Ashoka India Equity (AIE) has been the top performer in its peer group since launching in 2018. It also operates with a unique fee structure. The managers receive 30% of outperformance generated, which is calculated over three-year periods, but no other management fee.

Investment director Ayush Abhijeet presented on Thursday and talked through this structure in greater detail, along with highlighting how the trust approaches markets. Notable in this regard are the trust’s valuation process and the way in which they treat corporate governance.

Moving on, Ayush looked at some of the key reasons to invest in Indian companies. Two points that stand out here are the country’s growth potential versus China, with India’s younger, growing population a key factor. The other point here is how companies in India tend to receive little research coverage. This should in theory provide greater opportunities for active managers to exploit.

Finally, Ayush ran through some of the sectoral exposure that AIE has and the opportunities that exist within them. That includes healthcare, financials, industrials and the country’s growing technology sector.

Disclaimer

This is not substantive investment research or a research recommendation, as it does not constitute substantive research or analysis. This material should be considered as general market commentary.