India’s GDP in 2030 is expected to be in the range of $6 Trillion to $7.5 Trillion and the per capita income is expected to be in the range of $4000 to $5000. According to the World Bank classification this puts India in the group of upper middle-income countries.
The expected range, in 2030, for Sensex is 125,000 to 200,000, while for Nifty is 36,000 to 64,000. The use of a range rather than a specific number highlights the uncertainties involved in any forecast.
Irrespective of the precise GDP, GDP per capita, Sensex or Nifty, in the year 2030, the fact remains that India as a country is likely to be a much larger economy with richer citizens. Similarly, there is a high likelihood that Sensex and Nifty would be at much higher levels than they are today. Thus, the probability of wealth creation for prudent & patient equity investors is high.
The question is how should one go about investing in equities today?
The Scientific Investing Framework
“Most market participants chase alpha but get risks, while one could chase safety and get alpha”. – OmniInsight
The OmniInsight is the foundation for the OmniScience investment philosophy. OmniScience follows its proprietary investment framework—The Scientific Investing Framework.
The Scientific Investing Framework eliminates the Capital Destroyers, Capital Eroders & Capital Imploders leaving the Capital Multipliers. From this a SuperNormal Portfolio is curated to survive & thrive through uncertainties, delivering optimal “Return on Safety”.
The good player goes where the ball is. The great player goes where the ball is going to be.
Understanding Thematic Investing
Thematic investing is about going where the ball is going to be.
The themes which are likely to drive the economy are also going to provide the opportunity to companies which have the right capabilities and balance sheet strength.
“Investing in themes identified by Mr. Market will get you market returns.
Investing in themes yet-to-be discovered by Mr Market can get market-beating returns.”OmniInsight (Thematic)
The concept of Hype Cycles is quite useful here. Hype Cycles allows one to differentiate themes which have a lot of hype but little substance versus themes which are more established.
The Scientific Thematic Investing is characterized by strong growth vectors for the themes, a bottom-up, rather than top-down, identification of the theme and a diversified thematic portfolio. Diversification here is within the theme. While the portfolio is focused on a specific theme, within the theme, there are diversified ways of playing the themes and this is what is attempted in the portfolio.
This results in a SuperNormal Thematic Portfolio which is SuperNormal Themes @ SuperNormal Prices.
The discipline to focus only on themes which are yet-to-be discovered by Mr. Market is important. As the OmniInsight (Thematic) says, if you invest in a theme that is already identified by Mr. Market, it is likely to generate market returns, while a hidden theme is likely to generate market-beating returns.
Uncovering Hidden Investment Themes
The following are some of the below-the-radar themes identified by the Scientific Investing Framework (Thematic):
- DX—Digital Transformation
- Bullet Train—Railway Infrastructure
- Power—Electrifying India
- Bharat Defence
- Capital Enablers
OmniScience Thematic smallcases
One can take exposure to the above themes via the OmniScience thematic smallcases available on the smallcase platform.
- Omni DX
- Omni Bullet Train
- Omni Power
- Omni Bharat Defence
- Omni Capital Enablers
If one wants exposure to all the themes in a single portfolio, then one could take exposure via the Omni Superstox smallcase.
OmniScience provides a full suite of investment strategies via OmniScience smallcase portfolios. This includes core strategies, such as Omni Superstox, which is a multicap or flexicap strategy. It also includes focused, SIP (Systematic Investment Plan) strategies via Omni Royals (largecap), Omni Knights (midcap) and Omni Supertrons (smallcap), respectively.
There are several other OmniScience Capital strategies on the smallcase platform.
One can investigate further and learn more at: Omniscience.smallcase.com