Birla Mutual bets on 5 themes to deliver high returns for next decade

Our Bureau Mumbai | Updated on July 29, 2021

A Balasubramanian, Managing Director, ABSLAMC   -  Manoej Paateel

Aditya Birla Sun Life aims at ₹10,000 crore asset base for AIF

Aditya Birla Sun Life Asset Management Company (ABSLAMC) has identified manufacturing, digitalisation, sustainability, real estate and revival in small and mid-caps as a major themes for investment in the next decade.

The fund house, which on the verge of listing itself on capital market, plans to develop products around these themes for offering under portfolio management services and high net worth investors, who are ready to invest over ₹1 crore.

Unveiling ‘Trendspotting Report’, A Balasubramanian, Managing Director, ABSLAMC said every decade presents a set of new trends, led by a confluence of economic, technological and demographic factors and offering the opportunity for alpha creation.

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“Therefore, an ability to spot the trend and therefore ride it with conviction is a vital part of investing,” he said. “Alternate investment and PMS business works out to about ₹2,000 crore and the fund house plans to increase it to ₹10,000 crore over three years with new product offering and dedicated team,” he added.

‘Atmanirbhar to deliver’

“Manufacturing has got a leg up with the performance linked incentives, atmanirbhar bharat, vocal for local, labour reforms and various other sops,” said Balasubramanian.

The share of manufacturing in the country’s GDP was in the range of 15 per cent for many decades but that could increase to 25 per cent on the back of government initiatives, said the report.

The significant growth in the digital payment ecosystem in the last 3-4 years would get a boost due to low cost of data, government initiatives such as Aadhaar, UPI, and increased adoption by the corporate sector to improve productivity.

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The report cited McKinsey study that newly digitising sectors, including agriculture, education, energy, financial services and healthcare could each create $10-150 billion of incremental economic value in 2025.

Digital world

The fund house listed entities such as Policybazaar, PayTM, Razorpay, Zerodha, Jubilant Foodworks, Just Dial, Indiamart, IRCTC, Infosys, Happiest Minds, Infoedge and Reliance as some of the direct and indirect beneficiaries of digitalisation.

A revival in the real estate sector is likely to benefit a host of other sectors as well including cement, home furnishing, insurance, consumer durables, building materials and electrical products among others.

Some of the companies that stand to gain are HDFC, Bajaj Finserve, Voltas, SBI Life, Whirlpool, Godrej, Havells, Asian Paints, UltraTech Cement and ACC, as per the report.

“The focus on green energy to benefit companies such as Dabur, Marico, Sanofi, Abbott, Tata Power, Mahanagar Gas, Thermax and GE Power among others could benefit,” said the report

Published on July 29, 2021

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