1. Belief in the India Story

India, amongst all large economies in the world, is uniquely positioned for growth. This belief stems from a multitude of factors, including a young and dynamic workforce, a rapidly expanding digital economy, and significant governmental reforms aimed at enhancing ease of doing business. The demographic dividend, coupled with a strong entrepreneurial spirit, sets the stage for sustained economic expansion. India’s diverse economy, with its robust sectors ranging from technology to agriculture, offers a fertile ground for long-term growth and development. This conviction in India’s potential fuels our confidence in its future prosperity.

2. Projecting a Steady 12% Plus Growth in Nominal GDP

India’s nominal GDP growth is projected to exceed 12% annually over the next several years. This optimistic outlook is grounded in several macroeconomic factors, including increasing foreign direct investment, burgeoning consumer markets, and significant infrastructure development. Additionally, government initiatives such as Make in India and Digital India are expected to spur industrial growth and technological advancement. This sustained economic momentum is anticipated to drive substantial gains across various sectors, fostering an environment conducive to robust economic performance.

3. Earnings Growth in Well-Run Indian Businesses

We believe that well-managed businesses in India will, on average, grow earnings at the nominal rate of GDP growth or higher. Effective corporate governance, strategic innovation, and strong market positioning are key drivers of this growth. Companies that can navigate the complex Indian market landscape and leverage their core competencies are poised to benefit from the expanding economy. By investing in these well-run businesses, we expect to capture the upward trajectory of earnings growth, aligning our investment strategy with the broader economic trends.

4. Positive Outlook on Indian Equities

Our positive outlook on Indian equities is underpinned by the belief that carefully thought-through investments will yield strong returns over the long term. The Indian stock market, characterized by its depth and diversity, presents numerous opportunities for discerning investors. By employing a disciplined investment approach and rigorous analysis, we aim to identify and capitalize on high-potential stocks. This strategic focus on quality investments is designed to maximize returns while mitigating risks, ensuring a balanced and rewarding investment portfolio.

5. Independent Thinking and Professionalism

We pride ourselves on being professionals and independent thinkers, unafraid to stand apart from the crowd. This independence allows us to develop unique investment insights and strategies that are not swayed by market noise or popular trends. Our commitment to thorough research and objective analysis empowers us to make informed decisions that prioritize long-term value creation. By maintaining our professional integrity and independent perspective, we strive to deliver superior investment outcomes for our clients.

6. Deep Responsibility Towards Clients

When we represent a client in their investment journey, we are acutely aware of our deep responsibility towards managing their money. This responsibility extends beyond financial stewardship; it encompasses a commitment to transparency, trust, and alignment of interests. We manage our clients’ investments with the same care and diligence that we apply to our own, ensuring that their financial goals are met with the highest standards of excellence. Our client-centric approach fosters enduring relationships built on mutual respect and shared success.

7. Commitment to Investing Alongside Clients

We believe in “eating our own cooking,” which means we remain fully invested alongside our clients at all times. This alignment of interests underscores our confidence in our investment strategies and our commitment to achieving the same financial outcomes as our clients. By sharing in the risks and rewards, we reinforce our dedication to their financial well-being. This principle of co-investment ensures that our incentives are directly linked to our clients’ success, fostering a partnership based on trust and mutual benefit.

8. No Promises of Specific Returns

We do not promise any specific level of returns or stability in those returns for our investors. The investment landscape is inherently uncertain, and market fluctuations are beyond our control. Instead, we focus on a disciplined investment process that seeks to optimize returns while managing risks. By setting realistic expectations and emphasizing long-term value creation, we aim to build resilient portfolios that can withstand market volatility. Our honesty and transparency about potential outcomes reflect our commitment to ethical investment practices.

9. Aligned Fee Structure

Our fee structure is designed to align our interests with those of our clients. We earn returns only after our clients achieve returns above a predetermined hurdle. This performance-based compensation model ensures that our success is directly tied to our clients’ financial achievements. By prioritizing our clients’ interests and linking our rewards to their performance, we create a mutually beneficial relationship that drives us to consistently deliver outstanding results. This alignment of incentives fosters a culture of accountability and excellence.

10. Simplicity and Prudent Living

We are simple people with frugal habits, spending only on what we truly need to live a decent, honorable life. This philosophy of simplicity extends to our investment approach, where we prioritize essential value over unnecessary complexity. Our prudent lifestyle choices reflect our commitment to responsible financial management and ethical living. By maintaining a focus on what truly matters, we ensure that our resources are allocated effectively and our actions align with our core values.

11. Fair and Prudent Dealings

We conduct our business with prudence and fairness, treating our clients, employees, partners, and regulators with the utmost respect. Our ethical standards guide our interactions and decision-making processes, ensuring that we operate with integrity and transparency. We believe that building trust and maintaining a reputation for fairness is crucial to our long-term success. By adhering to these principles, we create a positive and sustainable impact on all our stakeholders, fostering an environment of mutual respect and collaboration.

12. Adherence to a Defined Investment Process

Superior returns can be achieved by defining an investment process and sticking to it over the long run. We recognize that while market volatility and short-term underperformance are inevitable, a disciplined approach can mitigate these challenges. Our investment process is rooted in rigorous analysis, strategic planning, and consistent execution. By adhering to this process, we strive to achieve optimal returns while managing risks effectively. Our unwavering commitment to our methodology ensures that we remain focused on our long-term objectives, regardless of market conditions.

13. Evaluating Returns and Risks

We evaluate ourselves not only on the returns we generate but also on the risks we take to achieve those returns. Risk management is integral to our investment strategy, and we prioritize a balanced approach that considers both potential rewards and associated risks. By controlling our behavior and avoiding market trends, fads, or hot investments, we maintain a disciplined focus on our process. This measured approach allows us to navigate market complexities and deliver consistent, risk-adjusted returns. Our commitment to evaluating both returns and risks ensures that we uphold the highest standards of investment excellence.