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smallcase Managers’ favourite sectors & themes for Samvat 2078 –

In Samvat 2077, we entered the year with the Sensex at 43400 levels and added 18300 points i.e. a gain of 42% – one of the highest gains in a Samvat.

This Diwali, let us walk into Samvat 2078 with hopes, aspirations and prosperity filled with light. Keeping wealth generation in mind, one of the best smallcase Managers are here to talk about their favourite themes, sectors, how to respect the process of investing this Diwali and also how to achieve financial independence this Diwali.

In Samvat 2077, we entered the year with the Sensex at 43400 levels and added 18300 points i.e. a gain of 42% – one of the highest gains in a Samvat. When it comes to important themes for the coming years, we believe that Disruption is the most important theme that will play out over the years. Disruption is all around us. It transforms the way we live, displaces existing markets, and pioneers new creations.

Devina Mehra, Chairperson and Founder of First Global

“On Diwali, all of us worship the goddess Lakshmi but do we really show her the respect that is due to her?”

“If you look at the way you manage your own money or investments, you may find that this is often not the case. Don’t you spend more time and effort researching a 5000 or 10,000 Rupees purchase than you do a 50,000 or maybe, Rs. 5 lacs stock investment?

Very often the latter is done based on some tip from a friend, or even from someone anonymous on a chat group, maybe a half-heard ‘expert’ opinion on a TV channel or something of the kind.

There is little thought that goes into the investment decision: based on what parameters are you buying that stock, where does it fit into your portfolio, what does your portfolio look like in the first place, how is it split between various sectors or asset classes – most such questions are not addressed at all.

This Diwali, let us take a pledge to really start respecting her which means respecting your own investment corpus.

Whether you are doing it yourself or have an investment advisor of some sort, decide today that you are going to use a proper system for investing and monitoring your portfolio. Don’t invest haphazardly and without a system.

FG-HUM (Human + Machine), for instance, uses a very sophisticated Artificial Intelligence model, combined with decades of human expertise,  to come up with a curated, diversified, Multi-cap, multi-sector list of 25-30 stocks that solve your equity investment dilemmas in one shot. And the investment process is also super simple.

FG-HUM [First Global Human + Machine Model] smallcase by First Global Finance Private Limited

AlfAccurate Advisors poses an interesting opportunity for us and asks .“What is leading to faster disruption?”

“Internet Ubiquity increased access to the internet in India and declining cost of data leading to faster adoption of technology by enterprises and consumers. Enhanced internet ubiquity is leading to lower barriers to technology for businesses, thereby enabling a greater number of businesses to effectively leverage technology. A robust digital ecosystem combined with Faster digital adoption will create mega opportunities for equity investors.

The rapid advancement in technology has meant the speed of disruption is accelerating. By spotting companies that drive, enable or adapt to change, you can capitalise on these opportunities.” says AlfAccurate.

Few sectors which are undergoing rapid digital transformation and also providing robust growth opportunities are as below:

Digital Retail

Indian retail is undergoing a rapid digital transformation propelled by – online buying/selling, store and inventory management, digital marketing, in-store digital applications, financing, digital payments, etc. These digital innovations will significantly reshape India’s retail industry. According to the estimate, the e-commerce market size will increase from USD26bn (FY21) to USD110bn (FY25) – i.e, a 4x jump in less than five years.

Digital Finance

Technology is transforming the finance sector across verticals like payments, lending mechanisms, capital markets, etc. For instance, the share of digital payments in the transaction volume is expected to increase from ~40% to ~72% by 2025. Retail online spend has increased from 36% (FY17) to 52% (FY21). Credit card penetration has increased from 1.4% (FY12) to ~3.8% (FY20) but it is significantly lower compared with global peers such as the US (320%), Hong Kong (265%), Singapore (155%), and Japan (214%). Spend as a percentage of GDP also remains low at ~3.6% v/s 25% for Hong Kong and 17% for the US.

Digital Health

It would be an understatement to say that technology has empowered medical professionals to deliver improved healthcare. The healthcare industry is on the cusp of a significant digital transformation by leveraging Artificial Intelligence, Machine Learning, and other modern technologies. Further, with the launch of national public health initiatives such as the National Digital Health Mission and Ayushman Bharat, India has an opportunity to become a digital health leader across the globe. BCG anticipates that NDHB1 can unlock the incremental economic value of over USD 200 billion for the health sector over the next ten years.

Digital Logistics

Technology is facilitating the evolution of the modern supply chain and is set to transform the logistics landscape in the country. By employing IoT-led and AI-enabled technologies such as machine learning, cloud computing, along with real-time data analytics, logistics players have been able to significantly reduce fleet downtime, address any issue in real-time, and predict customer behavior. The coming years will see more companies adopting digital tools to drive their efficiency as well as productivity.

Industrial Automation

Industrial automation will play a crucial role in Industry 4.0 by driving efficiency and agility. As a result, industrial automation will likely see explosive growth over the coming decade as AI/robots ultimately gain the ability to collaborate seamlessly with both people and other machines.” explains Rajesh Kothari Founder of AlfAccurate.

At AlfAccurate. We strongly believe that long-term, diversified equity portfolio returns will always lead you to stay away from greed and the fear of missing out (FOMO) when it happens. A risk-managed strategy may not provide you with great stories to boast about to friends, but it can help you build wealth in a prudent manner over the long term

AAA NEXT Generation smallcase by AlfAccurate

This Diwali let us learn how to invest better, educate ourselves on the top themes and sectors of the Indian markets, learn to respect the system of investing and finally aim to be financially independent.

Wishing all of you a very Happy Diwali!