SageOne India Growth Fund
about sageone india growth fund
Lighthouse Canton has partnered with SageOne Investment Managers to provide investors the chance to be part of the India growth story through the SageOne India Growth Fund. The Fund is an India dedicated long-only equities open-ended fund which invests in high quality growth companies in the small and mid-cap space across multiple sectors with a focus on long-term wealth creation for clients.
Benchmark: MSCI India MidCap 50: iShares MSCI India Smallcap 50
Data period: 2012 Apr to 2022 May
Benchmark: MSCI India MidCap 50: iShares MSCI India Smallcap 50
Data period: 2012 Apr to 2022 May
Benchmark: MSCI India MidCap 50: iShares MSCI India Smallcap 50
Data period: 2012 Apr to 2022 May
Our Approach
We believe that investing in high quality companies that can compound capital at an above -average rate while incurring a below-average level of risk and at attractive valuations is the most consistent way of generating returns.
We take the long-term approach and incorporate the quantitative and qualitative considerations below:
- Founders with integrity, efficient capital allocation and focus on building world class organizations.
- Professional management with successful execution capabilities and focus on profitable growth.
- Companies well positioned to capture competitor share and be the biggest beneficiary of long-term macro trends.
- Companies with well designed organic growth strategy.
- Businesses with huge structural & non- cyclical opportunities with earnings growth.
- Companies well positioned to gain market share from competitors without diluting profitability (ROE > 20%).
- Minimal margin contraction during cyclical downtrend & focus on improving margins to move up the value chain.
- Long term growth above industry average.
Why This Fund
Invests in companies with high structural growth, high profitability and quality management.
Focuses primarily on small & mid-cap companies listed on the Indian exchanges, with majority of the portfolio in the US$250mn to US$4bn market cap range.
Holds a high conviction portfolio of between 12-20 high growth stocks across multiple sectors.
Implements a Buy & Hold discipline based on a multi-year view, with a low turnover.
Advised by a reputed India-based advisory team led by a seasoned Portfolio Manager in India with a proven 10-year track record.
The Case for Investing in India
India, being one of the fastest-growing economies globally, is expected to have the world’s largest working population by 2030. Higher purchasing power, improving social outcomes, and increasing domestic demand have contributed to its sustained growth - from FY2022 to 2024, its average GDP growth rate is projected to be between 8% to 8.5%. Over the last few years, supportive government reforms have aimed to transform India into a manufacturing hub for the world. With these factors, investing in India is a compelling option.
- 8.0%-8.5% Average GDP growth rate projections from 2021-2023
- By 2030, India would also have the largest working age population estimated to cross 1bn. This would also lead India to having close to 800Mn digital content users by 2025.
India has increased its global competitiveness by offering a 15% corporate tax rate to new manufacturing companies, which is among the lowest in the world. It has also reduced the tax rate for existing companies from 30% to 22%. The incentives encouraged many companies into setting up plants and has given a boost to the economy.
Corporate Tax Rates (%)
Record high FDI of US$ 81.7bn in FY21. Total FDI (inclusive of equity, capital, and re-invested earnings) rose 10% against the previous year (US$74.39bn).
Focus on making India a global manufacturing hub by implementing the Production Linked Incentives (PLI) scheme up to US$26.5Bn in key sectors until Oct 2021
Implementation of Goods and Services Tax in 2017 has subsumed various Indian indirect taxes and created a common market. Despite the two waves of the pandemic, GST collections have been consistently above US$13Bn (per month) indicating economic recovery.
Team
Samit Vartak
Founder & CIO, SageOne Investment Managers
Samit Vartak is the Founding Partner and Chief Investment Officer ofSageOne Investment Managers LLP. Samit has been investing in theIndia equity markets since 1999 and has experienced and analysed many bull and bear cycles over the last two decades
Investment Advisors
In 2012, SageOne Investment Managers LLP (Previously known as SageOne Investment Advisors LLP) was co-founded by Mr. Samit Vartak, with a motivation to share his skills of identifying great businesses with investors at large. We offer investment management services through Portfolio Management Services (PMS) and Category III Alternative Investment Fund (AIF) structures.In today’s world, long treacherous groundwork is an extremely inefficient area of investment and would remain so for the foreseeable future. We strive to go multi- level deeper in every aspect of investment decisioning, from absolute growth to relative positioning, from immediate triggers to long-term moats, from top management to mid and ground level staff, and from end users to distribution channels and supply drivers. This enables us to have an edge to gauge potential of the business over a much longer duration.‘Sage’ meaning Wise and Virtuous is the core principle of our organisation.Sages serves as guardians of special knowledge, helpers or advisers; and examples of wisdom, virtue and goodness.
We look for Sustainable, Accountable, Growth-oriented and Efficient businesses to invest in.
