1) Domestic growth and minimal exposure to US tariff risks

Driven by burgeoning domestic demand and a population of 1.5 billion with a median age of just 29, India doesn’t rely on exports as much as other emerging markets (notably China and Mexico). With minimal exposure to US tariff risks and a multi-cap approach, the Alquity India Fund is designed for resilience and long-term growth.

2) Correlation and diversification benefits

With a 0.37 correlation to the S&P 500 and 0.31 to the Nasdaq, India offers diversification benefits. While others may scramble amid global turmoil, India tends to follow its own path.

3) Investor Sentiment

Recently, foreign investors have dramatically reduced their exposure to India. However, we expect this trend to reverse, given India’s increased economic and geopolitical attractiveness following the elections.