The AIF targets to reap benefits from India’s investment cycle
InCred Asset Management, the fund management arm of the InCred Group has launch an Emerging Business Fund that will invest in the stocks of India’s growing businesses to deliver superior returns. The investment is based on the theme, ‘ Capex to drive the next decade’.
The Close-ended Category III Alternative Investment Fund aims to invest in midcap and small-cap stocks that can benefit from strong growth in earnings and re-rating of businesses. The fund would be managed by Mrinal Singh, CEO & CIO, InCred AMC.
The current environment is most favourable factors for capital investment such as export demand, deleveraged balance sheet, government incentive, low-interest rate and higher domestic demand, said the fund house.
India’s Growth in the pandemic phase has been driven by investments, reflecting the governments’ capex development along with gradual recovery in consumption, it added.
Government Capex has picked up pace in FY’22 with both central and state governments registering strong growth in first half of this fiscal. Central government budgeted capex for next fiscal has been increased 35 per cent to ₹7.5 lakh crore against ₹5.5 lakh crore in FY22.
The ambition of achieving Atmanirbhar Bharat through government incentives is a catalyst for private sector investments which is also supported by improvement in World Banks’ ease of doing business rankings. Private sectors have announced investment of over ₹5.8 lakh crore in capacity expansion.