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India economy offers Mena investors a long growth runway

UTI Group celebrates 60th anniversary in Dubai, manages $177 billion across Indian equities and fixed-income portfolios with an active 92 per cent of market capitalisation

Investors from the Middle East and North Africa (Mena) region have a huge opportunity in the surging growth of India with the country’s economy on its way to being a $5 trillion economy, experts said.

Celebrating its 60th anniversary in Dubai, the UTI Group on Thursday said that regional investors could leverage its time-tested strategy of USD 3X growth, which has been a continuing success for the last 10 years to partake in the Indian growth story.

The overseas fully-owned subsidiary of the group, UTI International, which has offices in Dubai, Singapore, Paris and London, has $2.9 billion assets under management catering to investors from over 35 countries. It manages fund structures from its offices in Dubai International Financial Centre (DIFC) and other offices across Singapore, Ireland, the Cayman Islands and Mauritius.

US foray on cards

UTI International will soon open its operation in the US to meet the growing appetite for investments in India.

Praveen Jagwani, CEO of UTI International said the group manages $177 billion across Indian equities and fixed income portfolios as of November 30, 2022.

"UTI is a legacy brand in India and is synonymous with trustworthiness and dependability and it is an honour to lead this organisation,” he said.

India, on its way to a $5 trillion economy offers tremendous potential for investors from Mena to benefit from the growth of India in the future and UTI is the window, he added.

Pioneer in the money management

UTI-AMC is a pioneer in the money management industry in India. Created by an Act of the Indian Parliament in 1964, UTI has grown exponentially over the past six decades. Today, UTI manages almost 12 million Live Folios, with a client base of approximately 10 per cent of the 120 million folios that are managed by the Indian mutual fund industry.

“Looking back at the past as to what helped us reach here, it’s our philosophy towards excellence. UTI-AMC has always focused on the quality of investment. UTI India Dynamic Equity Fund is one of our promising funds that underscore quality. It’s about investing in businesses that can deliver returns on capital substantially and sustainably, higher than the cost of capital,” Ajay Tyagi, head of equities, UTI AMC, said.

“We are buy-and-hold investors, investing in resilient businesses, not stocks. We are only interested in the outcomes businesses can churn out – their ability to solve a particular customer need and maintain high margins. Today we are comfortably positioned and poised for a leap for years to come,” he added.

Channelling investments into India

Mahesh Natarajan, head of UTI Middle East and Africa, said UTI International has been at the forefront of channelling investments into India via their various offshore vehicles. "Our flagship fund, UTI India Dynamic Equity Fund, is $1.12 billion in size and has been top-rated by various fund ratings agencies like Lipper, Citywire, and Morningstar," he said.

"The Middle East investors are key to our growth for the future. UTI India Dynamic Equity Fund is specially designed for non-resident Indians who have options to invest in US dollar, UK pound, euro and Singapore dollar," Natarajan said.

In reply to a question, he said UTI India Dynamic Equity Fund was launched in 2015 and offered a nine per cent average returns on average.

"UTI India Dynamic Equity Fund has made it easier for NRIs to invest in their home country and part of India growth story. In addition, we have UTI India Innovation Fund and UTI India Balance Fund offering good returns on investment to investors," Natarajan told Khaleej Times.

He added that this milestone event is a celebration of trust placed in UTI by its investors and partners and the team is focused on delivering and exceeding the expectations of the discerning Middle East investors.

Robust risk management

UTI Mutual Fund has a competent and professional fund management team and a strong in-house research team to track, research and evaluate macro-economic indicators, capital markets and financial sectors. It has appropriate and robust risk management processes and follows a five-layered investment management structure viz advisory, decision making, execution, fund accounting and control.

India is currently the fastest-growing economy in the world and is on track to become the world’s third-largest economy and stock market by the end of this decade, thanks to global trends and key investments the country has made in technology, digitalisation, global offshoring and energy transition.

UTI’s history and track record in the mutual fund industry, strong brand recognition, distribution reach, performance, and client relationships are best positioned to provide a platform for future growth.

— muzaffarrizvi@khaleejtimes.com