Why invest in Shariah-compliant India equities now?
Why invest in Shariah-compliant India equities now?
Why invest in Shariah-compliant India equities now?
Features of the Manulife Shariah India Equity Fund strategy
Exclusion of financial sectors to alleviate concerns of financial burden from deleveraging.
Benefits from inclusion of India’s rapidly growing rural economy driving sectoral growth.
India’s push for growing its manufacturing share of gross domestic product (GDP) should provide opportunities for import substitution and increase the country’s global market share of exports.
Capitalises on bottom-up opportunities.
Sector specific opportunities1
Consumer
Strong consumer market
Rural consumption growth
Industrial
Exposure to low end manufacturing
Potential for localisation and import substitution
China+1 strategy
Technology
Leader in outsourced IT services
Real Estate
Urbanisation
Energy2
Renewable energy push
Clean, affordable and reliable energy
Healthcare3
Growth in pharmaceuticals
Largest provider of generic medication globally
Source:
1 Manulife Investment Management.
2 India Brand Equity Foundation: Renewable Energy Industry in India, updated as at 17 December 2021.
3 India Brand Equity Foundation: Indian Pharmaceutical Industry, updated as at 17 December 2021. For illustrative purposes only. Not an exclusive list for investment opportunities.
‘Make In India’ initiative
‘Make In India’ initiative
‘Make In India’ initiative
‘Make In India’ initiative4
This initiative was developed to transform the country into a global business hub which focuses on building an adequate physical infrastructure for foreign companies to set up manufacturing units.
Sectors in focus
Automobile
Automobile components
Aviation
Biotechnology
Chemicals
Construction
Defence manufacturing
Electrical machinery
Electronic systems
Food processing
Information technology (IT) and business process management (BPM)
Leather
Media and entertainment
Mining
Oil and gas
Pharmaceuticals
Ports and shipping
Railways
Renewable energy
Roads and highways
Space
Textiles and garments
Thermal power
Tourism and hospitality
Wellness
4 Source: Make In India, 2021: https://www.makeinindia.com/about, https://www.makeinindia.com/sectors. For illustrative purposes only. Not an exclusive list for investment opportunities.
Potentially the world’s next manufacturing powerhouse
Potentially the world’s next manufacturing powerhouse
Potentially the world’s next manufacturing powerhouse
Fueled by globally competitive wages and ample supply of young labour force.
A rising investment destination in global multinational corporations’ China+1 strategy.
Major infrastructure projects have been launched by the government to achieve manufacturing competitiveness and to lower logistics and supply chain costs such as the National Infrastructure Pipeline, Dedicated Freight Corridor Programme, port infrastructure upgrades and transportation corridors5.
Ranking of preferred production locations outside of China
Source: Credit Suisse Corporate Survey, Credit Suisse research, as of March 2020.
5 Source: India Briefing from Dezan Shira & Associates, India’s Connectivity Infrastructure: Tracking the Status of Keystone Projects, 10 August 2021 - https://www.india-briefing.com/news/indias-connectivity-infrastructure-projects-status-implementation-22883.html/. The above information may contain projections or other forward-looking statements regarding future events, targets, management discipline or other expectations. There is no such assurance that such events will occur, and the future course may be significantly different from that shown here.
Index performance: Shariah vs. Conventional
Index performance: Shariah vs. Conventional
Source: Lipper IM for the period 31 August 2011 – 31 August 2021. Past performance is not necessarily indicative of future performance. The Nifty 500 & Nifty 500 Shariah indexes are used to illustrate the broader India Equities universe and do not represent the Fund’s benchmark.