Affordable Housing Theme

Reason for played out:
This smallcase was built around the structural demand tailwinds created by the original PMAY-U 1.0 scheme, which supported affordable housing demand through upfront interest subsidies and drove loan growth for housing finance companies. With the introduction of PMAY-U 2.0, the scheme has become more targeted, featuring lower subsidy caps, tighter income eligibility criteria, and a staggered subsidy payout mechanism. These changes have reduced the demand tailwinds that underpinned the original investment thesis. As a result, we have decided to discontinue this smallcase. Since Jan 2019, this smallcase has generated compounded returns of ~10%.