Tag: equity funds

Investors’ confidence surges as equity mutual funds inflows reach five-month high: Experts

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Equity mutual funds have witnessed a substantial net inflow of Rs 20,161 crore in August 2023. This rise marked a significant departure from the Rs 7,505 crore recorded in July, establishing August as the month with the highest mutual fund inflows in the past five months. This surge signals renewed investor confidence in the stock market, despite challenges faced by large-cap stocks.

A Balasubramanian, Chairman of the Association of Mutual Funds in India (AMFI), expressed his optimism about the current state of the market. In an exclusive interview with CNBC-TV18, he emphasised, “The overall market sentiment definitely has been giving much-needed confidence to investors to put their faith in mutual funds as a relevant long-term savings option.”

A look at MF inflows in the last 5 months

Balasubramanian believes that the current flow of money into equities reflects the trust investors have in the mutual fund industry. He also highlighted the growing popularity of Systematic Investment Plans (SIPs) as a vehicle for long-term saving and retirement planning. Balasubramanian’s outlook is positive, anticipating that these investment flows will persist and continue to attract new investors.

He stated, “Flows have been largely coming through various routes, and my assumption would be that the flows would continue.”

NS Venkatesh, Chief Executive of AMFI, focused on the midcap and smallcap segment of the market. He noted that these stocks had experienced corrections during recent market volatility, presenting an attractive opportunity for investors. Rather than picking individual stocks, many investors are turning to mutual funds to gain exposure to the midcap and smallcap space.

Venkatesh explained, “Investors recognise the value in midcap and smallcap stocks, particularly after recent corrections. They are opting for mutual funds like midcap funds and smallcap funds, allowing fund managers to select the right stocks within the portfolio. Even amid the recent euphoria in midcap and smallcap stocks, there remains untapped potential in certain stocks. Investors trust fund managers to make these selections.”

Notably, small-cap funds continued their impressive performance in August too. These funds, characterised by their focus on smaller companies, drew the highest net inflows in August. This was followed closely by thematic/sectoral funds and multicap funds.

On the other hand, five NFOs from the sectoral fund category collectively garnered Rs 2,556 crore. A total of Rs 5,002 crore was raised through 7 NFOs in the equity categories, while Rs 2,247 crore was raised through one hybrid category scheme.

The Systematic Investment Plan (SIP) inflows in August 2023 even reached a record high of Rs 15,814 crore as compared to previous month’s figure of Rs 15,243 crore. This robust surge in SIP investments has piqued the interest of both seasoned investors and newcomers alike.

For the entire discussion, watch the accompanying video

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Equity inflows hit five-month high in August, debt funds see outflows

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Equity mutual funds have witnessed a net inflow of Rs 20,161 crore in August 2023, according to Association of Mutual Funds in India (AMFI) data. This marked a significant increase compared to the previous month, with July 2023 seeing an inflow of Rs 7,505 crore. This surge in equity mutual fund investments to a five-month high indicates renewed investor confidence in the stock market.

However, the story was different for debt mutual funds, which faced outflows worth Rs 25,872 crore.

Among the various categories of mutual funds, some displayed strong investor interest, while others experienced outflows. The small-cap funds, once again, witnessed inflows at Rs 4,265 crore versus Rs 4,171 crore inflows in July 2023. The mid-cap funds saw an inflow of Rs 2,512 crore versus Rs 1,623 crore inflows month-on-month, signalling confidence in medium-sized companies.

Even multi-cap funds received a healthy inflow of Rs 3,422.14 crore, indicating investor diversification strategies. Large-cap funds, however, witnessed outflows of Rs 348.98 crore, potentially reflecting a cautious stance on larger companies.

The dividend yield fund received an inflow of Rs 416.29 crore, likely appealing to investors seeking income through dividends. Value and Contra Funds attracted Rs 1,364.62 crore, while focused funds experienced outflows of Rs 471.10 crore, indicating a shift in investor preferences.

Hybrid funds witnessed an inflow of Rs 17,082 crore as compared to Rs 12,41 crore in July 2023. Liquid funds saw an outflow of Rs 26,824 crore, while exchange-traded funds (ETFs) saw an inflow of Rs 1,893 crore.

Investors showed strong interest in sectoral and thematic funds in August, contributing Rs 4,805.81 crore to this category, possibly driven by specific sectoral or thematic trends. ELSS (Equity Linked Savings Scheme), however, saw outflows of Rs 26.69 crore. The Flexi Cap Fund category attracted Rs 2,192.86 crore.

Notably, large-cap funds, focused funds, and ELSS were among those facing outflows in August. The shift in investment preferences highlights the dynamic nature of the mutual fund industry, influenced by factors such as market conditions, investor sentiment, and economic outlook.

On the other hand, five NFOs from the sectoral fund category collectively garnered Rs 2,556 crore. A total of Rs 5,002 crore was raised through 7 NFOs in the equity categories, while Rs 2,247 crore was raised through one hybrid category scheme.

The Total Assets under Management (AUM) by the end of August stood at Rs 46.63 lakh crore versus Rs 46.37 lakh crore with equity AUM contribution at Rs 18.4 lakh crore versus Rs 17.8 lakh crore (MoM). SIP inflows for August were at Rs.15,813 crore, well above the Rs.15,000 crore level for the second month, AMFI data showed.

Commenting on the same, NS Venkatesh, CEO at AMFI, said that economic growth is expected to improve, and the markets are expected to grow.

“India hosted very successfully the G20 summit this year, which has generated positive sentiments for the country and its economy on the global platform. Thus, the overall outlook for the mutual fund industry in India continues to be positive. The industry’s focus on investor education and protecting the interests of the investor community has bolstered investor confidence in the category. The industry continues to work towards the aim of achieving Rs 100 lakh crore in AUM over the next few years and we are almost halfway there already,” he said.

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Key trends from July AMFI data: Small-cap funds get highest inflows among equities, investors flock to gold ETFs and more

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The July 2023 mutual fund industry data released by Association of Mutual Funds in India (AMFI) highlighted some key insights. While the equity mutual funds witnessed net inflow at Rs 7,505 crore in July 2023, the total debt scheme saw an inflow of Rs 61,440 crore. Here are key trends that AMFI data showed:

Equity funds see net inflow at Rs 7,505 crore

The equity mutual funds have witnessed net inflow at Rs 7,505 crore in July 2023 as against inflow of Rs 8,245 crore in June 2023. Though the net inflows in July were lower than the net inflow of June, it’s substantial in absolute terms, experts said. The net inflow was driven by 5 new NFOs, which cumulatively collected net assets worth Rs 3,011 crore.

According to Himanshu Srivastava, Associate Director – Manager Research at Morningstar India, the drop in net inflow in July from June could be attributed to some investors booking profit with markets trading near all time highs.

Small cap funds receive highest inflow, while large funds see highest outflow

The small cap funds noticed a decrease in inflows. It recorded Rs 4,171 crore inflow in July versus Rs 5,472 crore in June. However, it received the highest inflows among all equity categories. The midcap fund inflow was recorded at Rs 1,623 crore.

“During July 2023, Nifty 50 gained 1.4 percent, the Nifty Small-cap 100 index was up by 6.4 percent, and the Nifty Midcap 100 index increased by 5.5 percent. This clearly demonstrates where the markets’ action is concentrated,” said Viraj Gandhi, CEO at SAMCO MF.

Large cap funds saw the highest outflow of Rs 1,880 crore. This category has been witnessing outflows since the last three months. As per Srivastava, large cap segment has delivered good performance in the recent times providing investors a good profit booking opportunity.

Overnight funds see maximum outflows in debt category, liquid funds receive maximum inflows

Debt-oriented schemes in the mutual fund sector received a net inflow of Rs 61,400.08 crore during the month of July. Among the categories that faced net outflows were overnight funds, short duration funds, medium duration funds, credit risk funds, banking and PSU funds, and gilt funds with 10-year constant durations. Overnight funds stood out as the category with the highest net outflows, amounting to Rs 10,746.83 crore in July.

On the other hand, categories like liquid funds registered substantial inflows, with Rs 51,938.41 crore pouring in during July, a remarkable turnaround from the Rs 28,545.45 crore outflow in June.

SIP inflows exceed Rs 15,000 crore for first time

According to the latest data released by Association of Mutual Funds in India (AMFI), SIP inflows reached a record of Rs 15,242.7 crore during the reviewed month. The number of SIP accounts stood at 6.8 crore for July 2023 compared to 6.65 crore in June 2023.

One of the key highlights of the AMFI data is the growth in the Assets Under Management (AUM) attributed to mutual fund SIPs. The AUM, which stood at Rs 7.93 lakh crore in the previous month, saw a substantial increase to Rs 8.32 lakh crore in July.

Gold ETFs attract inflows

Gold ETF continue to attract flows, as it received a net inflow of Rs 456.15 crores, which is sharply higher than the net inflow of Rs 70.32 cr in June.

“Pertinent risks still engulf developed economies. With continued hike in interest rate in the US, inflation still higher than expectation, and growth rate slowing down, the appeal of gold as a safe haven and hedge against inflation is expected to continue. Moreover, gold prices in the recent times have come-off from its all-time high levels, thereby providing some buying opportunity, particularly after a sharp rally it witnessed since March this year,” Srivastava said.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Equity inflows decrease in July, large-cap funds see highest outflows

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The equity mutual funds have witnessed net inflow at Rs 7,505 crore in July 2023 as against inflow of Rs 8,245 crore in June 2023, according to Association of Mutual Funds in India (AMFI) data. Though the net inflows in July were lower than the net inflow of June, it’s substantial in absolute terms, experts said. The net inflow was driven by 5 new NFOs, which cumulatively collected net assets worth Rs 3,011 crore.

Around 17 open-ended NFOs were floated in July which together mobilized Rs 6,723 crore.

According to Himanshu Srivastava, Associate Director – Manager Research at Morningstar India, the drop in net inflow in July from June could be attributed to some investors booking profit with markets trading near all time highs.

“Some investors would have also chosen to stay on the sidelines and wait for some rationalization to set in before they invest,” he said.

The small cap funds noticed a decrease in inflows. It recorded Rs 4,171 crore inflow in July versus Rs 5,472 crore in June. However, it received the highest inflows among all equity categories. The midcap fund inflow was recorded at Rs 1,623 crore. The dividend yield fund inflow came in at Rs 342 crore. On the other hand, ELSS witnessed outflow of Rs 592 crore.

Large cap funds saw the highest outflow of Rs 1,880 crore. This category has been witnessing outflows since the last three months. As per Srivastava, large cap segment has delivered good performance in the recent times providing investors a good profit booking opportunity.

“Investors would have also chosen to prefer currently performing mid and small cap funds over large cap funds,” he said.

The total debt scheme, meanwhile, posted inflow at Rs 61,440 crore versus Rs 14,136 crore outflows (MoM). The hybrid fund witnessed inflow at Rs 12,421 crore. Liquid funds also noticed inflow at Rs 51,938 crore in July versus Rs 28,545 outflow in June. The credit risk outflow came in at Rs 166 crore.

The corporate bond fund inflow was recorded at Rs 1,880 crore versus Rs 2,050 crore. The ETF outflow stood at Rs 353 crore versus Rs 3,402 crore inflows month-on-month. Focused funds category witnessed an outflow of Rs 1,066.72 crore. The category has been witnessing outflows for the last four consecutive months.

Arbitrage funds received inflow of Rs 10,074.87 crore, against an inflow of Rs 3,365.76 crore in June. The multi asset allocation funds received an inflow of Rs 1,381.50 crore.

The total assets under management stood at Rs 46.37 lakh crore versus Rs 44.39 lakh crore (MoM), the data showed.

Systematic Investment Plan (SIP) inflows, meanwhile, reached a new record high in July. SIP inflows stood at Rs 15,242.7 crore during the month under review. The AUM under mutual fund SIPs was Rs 8.32 lakh crore in July, against Rs 7.93 lakh crore in the previous month.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Indian shares — a lot of money is flowing into them and much of it is coming in for the long term, says EPFR Global

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India equity funds have emerged as the frontrunners in terms of global investment flows. This trend signifies the growing confidence of investors in the Indian market’s potential for long-term returns. While various factors contribute to this success, India’s strong economic growth, robust corporate sector, and ongoing structural reforms have played a pivotal role in attracting significant investments.

In an interview with CNBC-TV18, Cameron Brandt, Director of Research at EPFR Global said that India’s equity funds have witnessed the strongest flows globally. This surge in investment can be attributed to the increasing interest of investors in long-term prospects. Furthermore, as the US Federal Reserve contemplates its last rate hike, India’s equity market appears poised for continued growth and stability.

“The latest picture is that flows continue to have extremely strong momentum. Among the major emerging markets, and country fund groups so far in July, India equity funds have had by far the strongest inflows, and we are seeing that spread over to the fixed-income side. Dedicated in India bond funds are also at the top of their peer group in the emerging bond fund country groups,” he said.

Talking about long-term investments, Brandt revealed that approximately 60-70 percent of these funds are directed towards long-term strategies. This inclination toward sustained investment aligns with the belief in India’s economic resilience and potential for consistent growth over an extended period.

The strong performance of Indian equity funds can be attributed to the country’s conducive investment climate. India has implemented several reforms in recent years, such as the introduction of the goods and services tax (GST), the Insolvency and Bankruptcy Code (IBC), and initiatives to improve the ease of doing business. These reforms have created a transparent and investor-friendly environment, fostering confidence among both domestic and international investors.

Also, according to a report by Invesco Global Sovereign Asset Management, India has surpassed China and emerged as the most appealing emerging market for sovereign wealth funds to invest in this year. The study attributes this shift to India’s strong demographic profile, political stability, and proactive regulatory measures.

(with inputs from Asian Development Bank/agencies)

For more details, watch the accompanying video

Also, catch all the live updates on markets with CNBC-TV18.com’s blog

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Equity inflows lowest since November 2022, but small cap funds perform well

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Equity mutual funds have witnessed a net inflow of Rs 2,906 crore in May 2023 as against Rs 5,275 crore in April 2023, data released by the Association of Mutual Funds in India (AMFI) showed. This was the lowest recorded inflow since November 2022 when Rs 2,224 crore came in.

Experts say the fall inflows were largely due to outflows in large-cap funds to the tune of Rs 1,362 crore. The small-cap funds, however, performed well and registered an inflow of Rs 3,283 crore as against Rs 2,182 in April.

The midcap fund and dividend yield fund witnessed inflows at Rs 1,196 crore and Rs 289 crore, respectively. The equity-linked saving scheme (ELSS) saw an outflow of Rs 505 crore in May 2023. The corporate bond fund saw an inflow of Rs 622 crore.

On the debt side, the inflow was registered at Rs 45,959 crore in May as against Rs 1.06 lakh crore last month. The total asset under management (AUM) was reported at Rs 43.20 lakh crore as against Rs 41.61 lakh crore month-on-month.

The hybrid funds registered an inflow of Rs 6,093 crore, as against Rs 3,317 crore in April. The liquid fund inflow stood at Rs 45,234 crore as against Rs 63,219 crore in April. The exchange-traded fund (ETF) inflow came in at Rs 4,524 crore as against Rs 6,790 crore in April.

The credit risk outflow was registered at Rs 289 crore.

Commenting on the number, Manish Mehta, National Head and Sales, Marketing & Digital Business at Kotak Mahindra Asset Management Company said, “Profit booking in rising market along with probable expenses towards vacation, education could have led to lower investments in mutual funds in May.”

According to Gopal Kavalireddi, Vice President – Research at FYERS, the Nifty mid-cap and small-cap indices rose by 5.5 percent on average, outperforming the Nifty 50 index (2.6 per cent) by a decent margin.

“On a year-to-date basis, the Nifty mid-cap index (8.8 percent) and Nifty small-cap index (7.63 percent) have provided better than expected returns to investors. With RBI projecting GDP growth of 6.5 percent and inflation trending down from its peak levels, the prospects are bright for the Indian economy. Investors should continue with their equity investments through systematic investment plans which offer the advantage of rupee cost averaging and countering the market volatility,” he said.

Meanwhile, the inflows via the systematic investment plan (SIP) hit a fresh record high of Rs 14,749 crore in May. In April, fresh investments via SIPs stood at Rs 13,727.63 crore compared with Rs 14,276 crore in March, a fresh all-time high then.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Flexi cap funds — Here’s what makes it right for every season

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Flexi-cap funds are in the news for all the right reasons. They emerged as the largest category among equity mutual funds at the end of the December quarter. Association of Mutual Funds in India’s (AMFI’s) data show that they have gained approximately Rs 2.49 lakh crores of Assets Under Management (AUM). This makes it the largest equity fund category in the active equity assets under management which stood at Rs 15.41 lakh crores as of the end of December 2022.

In January 2023 too, the category witnessed a decent net inflow of Rs 1,005.62 crore.

Morningstar’s graph shows how the category has surpassed other funds in the calendar year 2022:

(Source: Morningstar)

A look at best-performing funds:

Data shows that Assets Under Management (AUM) of flexi cap funds have grown about 70 percent since they were introduced in November 2020 by the capital markets regulator Securities and Exchange Board of India (SEBI).

So, what makes flexi-cap funds attractive?

They invest a minimum of 65 percent of their assets in equity and equity-related instruments. They are free to take exposure to large-cap, mid-cap, and small-cap stocks without any restrictions as they invest across market capitalisation. This underlying nature makes them a decent investment fund, experts say.

According to Archit Gupta, CEO at Clear, flexi-cap funds are a good approach as large-caps have better liquidity and stability than mid-caps and small-caps in volatile stock markets.

“These funds have a higher exposure to large-cap companies as they are well-established and offer a higher risk-adjusted return. It gives stability to the portfolio than mid-caps and small-caps, which tend to crash in a declining stock market,” he said.

Also, they are dynamically managed. Flexi-cap funds invest in stocks across market capitalisation in different industries and sectors without restrictions. It helps in building a diversified portfolio for all market conditions.

They have sufficient exposure toward large-cap stocks, which protects the portfolio from volatility and enhances risk-adjusted returns than mid-cap and small-cap funds.

On top of that, they blend various investment styles to maximise investment returns. For example, the value style focuses on undervalued stocks, and the growth style focuses on growth opportunities.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

PSU equity funds — how they have performed and should you invest now?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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PSU equity funds have underperformed the headline indices over the last many years. However, in the last 9-12 months, the BSE PSU index has delivered 15-16 percent returns. So it has clearly outperformed the sensex during this period.

Given that, should individuals consider it as a good investment option?

Before digging further, let’s first see what are PSU equity funds.

A PSU equity fund is a kind of thematic fund which allows individuals to invest in government-owned public sector companies and bank stocks.

These sectors include banking, oil and gas, telecom, metals, hospitality, aviation, etc.

The best PSU equity funds

SBI PSU Fund

This fund is offered by SBI Mutual Fund and has delivered an annualised return of 2.9 percent since launch.

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The benchmark of this fund is S&P BSE PSU Index.

Invesco India PSU Equity Fund

This fund is offered by Invesco Mutual Fund. It is a 9 years 8 month old fund and has delivered average annual returns of 12.44 percent since inception.

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The benchmark of this fund is S&P BSE PSU Index.

The table below shows 1-year return of some of the PSU equity funds:

Should one go for them?

According to Nitin Rao, Head of Product and Proposition, Epsilon Money Mart, PSUs tend to have relatively better dividend yield than broader markets. They are government-owned, present across sectors and offer diverse investment opportunities.

However, there are select funds which are investing purely into PSU equities, which the investor can consider for exposure.

Rao said people should invest in line with their risk profile and investment objective.

It’s imperative to note that although these funds are low risk, they aren’t entirely risk-free. They are susceptible to interest rate movement and may earn negative returns when yields go up.

Those investing in these funds should consider a time horizon of at least five years because these are equity funds and need time to perform.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Flexi funds — here’s why you should invest in them

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Flexi-cap funds are in the news for all the right reasons. They generated the highest inflows of Rs 2,511.74 crore among equity mutual funds in June 2022, according to the Association of Mutual Funds in India (AMFI) data. As of June 2022, their average net asset under management (AUM) stood at Rs 2,11,296.44 crore. This was significantly higher than ELSS, mid-cap, small-cap, multi-cap, sectoral and thematic funds.

So are flexi-cap funds a lucrative investing option? 

What are flexi-cap funds?

Flexi-cap funds are equity funds that invest a minimum of 65 percent of their assets in equity and equity-related instruments. They are free to take exposure to large-cap, mid-cap, and small-cap stocks without any restrictions as they invest across market capitalisation.

What is the recent buzz around these funds?

Flexi-cap funds are in the news because of the way they handled stock market volatility after the Russia-Ukraine crisis, said Archit Gupta, Founder and CEO at Clear, in an interaction with CNBC-TV18 Digital.

Also read: Worried about market volatility and planning to invest in debt mutual funds? Here is what experts have to say

“For instance, flexi-cap funds increase exposure towards large-cap stocks under volatile market conditions. According to ETIntelligence Group data, flexi-cap mutual fund schemes had an average allocation of 65 percent of their assets towards large-caps, 17 percent towards mid-caps and 9.9 percent towards small-caps,” Gupta said.

So, is it a good investment option?

According to Gupta, flexi-cap funds are a good approach as large-caps have better liquidity and stability than mid-caps and small-caps in volatile stock markets.

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“These funds have a higher exposure to large-cap companies as they are well-established and offer a higher risk-adjusted return. It gives stability to the portfolio than mid-caps and small-caps, which tend to crash in a declining stock market,” he said.

Here are some of the reasons to invest in flexi-cap funds:

Dynamically-managed

Flexi-cap funds invest in stocks across market capitalisation in different industries and sectors without restrictions. It helps in building a diversified portfolio for all market conditions.

Also read: MF Corner: What experts make of Kotak Flexicap, HDFC Midcap Opportunities funds now

Less risky than mid-cap and small-cap funds

Flexi-cap funds have sufficient exposure toward large-cap stocks, which protects the portfolio from volatility and enhances risk-adjusted returns than mid-cap and small-cap funds.

Flexibility across investment styles

Flexi-cap funds blend various investment styles to maximise investment returns. For example, the value style focuses on undervalued stocks, and the growth style focuses on growth opportunities.

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3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

PM Modi meets private equity, venture capital players; seeks suggestions to attract more capital

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Prime Minister Narendra Modi on Friday hosted the roundtable interaction with representatives of venture capital and private equity funds in a bid to boost the investment climate of the country.

Prime Minister sought suggestions towards improving Ease of Doing Business in India, attracting more capital and furthering the reform process in the country. He appreciated the practical suggestions received from the representatives and said the government is committed towards working to resolve the issues and challenges highlighted, a statement from the Prime Minister’s Office said.

He discussed the efforts undertaken by the government to bring in more reforms, future potential of initiatives like PM GatiShakti, and steps taken to reduce the unnecessary compliance burden. He also mentioned the innovation happening in India at the grassroot level and the boost to the startup ecosystem, the statement read.

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Praising the initiatives taken to boost the Startup ecosystem in the country, Siddarth Pai termed the Prime Minister as the ‘Startup Prime Minister’. The venture capital and private equity fund representatives praised the Prime Minister for his leadership which has been a prime driving force behind the massive boost to the investment climate in the country.

The venture capital and private equity fund representatives also talked about the entrepreneurial potential of the country, and how it can be leveraged so that our startups can attain global scale.

Accel’s Prashant Prakash highlighted the opportunities that are present in the agri startups. Rajan Anandan from Sequoia suggested working towards making India the global hub in education by leveraging technology.

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India Resurgent’s Shantanu Nalavadi praised the reforms undertaken by the country in the last 7 years especially the step to set up the Insolvency and Bankruptcy Code (IBC). Blackstone’s Amit Dalmia said India is among the best performing geographies for the Blackstone (funds) globally.

HDFC’s Vipul Roongta praised the policy initiatives that have been taken by the government, in the housing sector especially in the affordable housing segment.

Gopal Srinivasan, chairman and managing director of TVS Capital said the meeting was wonderful and the PM was very motivating. He said it was absolutely correct to call Modi as the Startup Prime Minister as he started Startup India and even today he only spoke about startups in every aspect – rural business, agri business & holistic business.

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Munish Varma of Softbank said, “The investment climate in the country has become much more positive. We have seen that in the amount of capital that has come into our country, we have seen that in the amount of entrepreneurs that are being created, we have seen that in public markets, so overall it was a great interaction with the PM. He had some phenomenal insights and gave some very good suggestions.”

Prashant Prakash of Accel said, “It was a great opportunity to interact with the Prime Minister. I presented the idea of this being the moment to encourage agri startups. He clearly saw the same vision. It was his view that agri startups, especially FPOs will have a key role to play in helping double farmer’s income which is his core vision.”

Rajan Anandan of Sequoia said, “The Indian startup ecosystem has come a long way. If you go back 10 years ago, we had no unicorns, this year at end of 2021 we will have over 70 unicorns. In fact this year we have doubled the number of unicorns. 10 years ago we had less than a billion dollars of funding per year going into startups, this year we will have over $30 billion. I credit a large part of this to the extraordinary focus that our PM Modi as well as our government has had on startups. The whole Startup India movement really started accelerating since about 2015 and every year the movement is getting stronger and stronger.”

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Sandeep Naik of General Atlantic said, “The interaction that we had with the PM was amazing. The intent with which the PM was listening to every single input and the recommendations from the people in the meeting was very deliberate and was very clear that there are big changes coming in India. From an investment standpoint we are extremely bullish about India because of the steps that the government has taken, because of the entrepreneurial energy and because of the environment that Startup India has created.”

Siddharth Pai of 3one4 Capital said, “It has been a privilege for us to sit across the table with a Startup Prime Minister. Modi invigorated the nation. India as a nation right now is full of dreamers who no longer go to Bollywood to become actors, they come to Bengaluru to become entrepreneurs and that is a change that PM has brought about. Through this change, the economic development and India becoming a $5 trillion economy by 2025 is a dream that all entrepreneurs hold very close to their heart and is something that all of us will bring to fruition and reality.”

The representatives also discussed the opportunities that are emerging because of India’s exemplary climate commitments including the ones in the sphere of energy transitions. They also gave inputs about areas like FinTech and financial management, software as a service (Saas) etc. They also praised the Prime Minister’s vision of making India a 5 trillion economy.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow