Why Avendus CEO Andrew Holland sees India catching up on flows in FY24

Andrew Holland, CEO of Avendus Capital Public Markets Alternate Strategies.

India will catch up on flows in the second half of the next fiscal, said Andrew Holland, CEO of Avendus Capital Public Markets Alternate Strategies LLP.

Earnings upgrades are likely to begin in the second half of the next fiscal and capital expenditure may also start picking up the pace which could drive inflows to India, Holland believes.

He is of the view that FY24 is about choosing where you put money because he sees other sectors giving significant returns, even higher than the index.

Holland believes that the benchmark could give up to 13 percent return on a compounded annual basis which is not a bad growth rate. But investing in specific sectors could help one spawn a return of 20-30 percent or even higher, he added at a Crystal Gazing Summit and Awards 2023, organised by PMS AIF WORLD.

PMS AIF WORLD, is a new-age investment services online platform focused in the space of alternative investments offering analytics and strong content backed quality investment solutions to the HNIs, UHNIs & NRIs.

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There are some long themes he believes to be multiyear ones. Some of them are global themes like defence and renewables, tourism and electronics. He even sees the consumer segment to be a big theme over the next decade.

Talking about headwinds like inflation, he says that “the Fed has got it completely wrong. They will have to reverse very soon”.

Federal Reserve officials reportedly believe that more interest rate hikes are on the cards as the US central bank presses forward with its efforts to cool inflation while Federal Reserve Governor Christopher Waller warned that the fight is not over and could result in higher interest rates than markets are anticipating.

Holland sees inflation cooling down globally and the world economy going soft with interest rates coming tumbling down.