The t1ps Elite t1ps India Fund aims for growth by investing in the equities of small and medium sized Indian companies with a market capitalization of $50m to $750m that the t1ps investment team sees as undervalued. Cash will be held during periods when suitable investments cannot be found.
t1ps points out that local links and knowledge are important when running an Indian fund. RSH Group chief executive and t1ps senior fund manager Tom Winnifrith and RSH UK chief executive Amit Pau have long established family and business links to India. They are both investing personally in the fund and have also recruited a new fund manager to be based at RSH’s new base in Mumbai. This office will open in January.
Winnifrith believes all investors should have 10 to 15 per cent of their portfolios exposed to developing markets such as India due to the long-term growth potential. He says that unlike China, which he sees as being driven by exports based on an artificially depressed currency, Indian growth comes mainly from demand and consumption within India.
t1ps will select stocks across sectors using a bottom up technical analysis. The firm believes that there is still plenty of scope for investors to benefit from growth in India, particularly in stocks outside the banking and consumer sectors. Companies in the portfolio will typically be established firms producing turnover, predictable cash flows and revenues, alongside a healthy balance sheet after investment.
However, anyone investing in this fund should take a long-term view as emerging markets, particularly in the small to mid-cap part of the market, have higher than average volatility over shorter-term time frames.