In a podcast episode by Outlook Money’s Versha Jain with Priyanka Khandelwal, Fund Manager at ICICI Prudential AMC, about the ICICI Prudential BHARAT Consumption Fund and the investing opportunities in rural India.
The fund takes a thematic and contrarian approach, targeting rural India, an area often missed by mainstream investors, said Priyanka. She underlined that rural growth is more than just consumption; it also includes improved infrastructure, higher incomes, and jobs outside of agriculture.
The fund is diversified across 11 sectors, including FMCG, cement, telecom, insurance and automobiles, allowing for exposure to both cyclical and defensive themes. By this sectoral spread offers long-term development potential and aids in volatility management.
Priyanka highlighted numerous tailwinds for rural India which includes increasing government investment, legislative reforms, and structural changes that increase disposable income and access to services. She also discussed the evolution of rural aspirations and consumption patterns.
However, she cautioned about challenges like global competition, especially from Chinese manufacturers, which could impact sectors under the Make in India initiative.
Overall, she emphasized that investors have a unique and exciting investment opportunity when they use a bottom-up, data-driven company selection strategy that is in line with long-term rural trends.
