Top five investment themes to keep an eye on!

Aditya Birla Sun Life AMC, a subsidiary of Aditya Birla Capital, launched its annual trendspotting report on Thursday. The alternate assets equity investments team of the asset manager has captured the key enablers of any big structural trend and based on this, it has arrived at the five big trends for the future.   

 Manufacturing: A mix of push & pull factors to drive manufacturing in India like Atmanirbhar Bharat & ‘vocal for local’ initiatives by the GoI along with diversification of global supply chains.  

 Digitalisation: Digitalisation in India, fast-tracked due to the low cost of data, government initiatives like Aadhaar, UPI, and increased adoption by the corporate sector to improve productivity.  

 Sustainability: Rising risks from the environment are pushing the government & companies to adopt a more sustainable way of doing business through green fuel, green technologies, and green mobility.  

 Cyclical revival in real estate: Low-interest rates, COVID-19 induced WFH trend and industry consolidation induced by Real Estate Regulations Act (RERA) & availability of capital to larger players should lead to a revival in real estate and ancillary sectors like building materials.  

Revival in mid & small-caps: Mid and small-caps after three years of underperformance should outperform large-caps, led by economic recovery, lower interest rates, and increased representation in emerging sectors like chemicals, digital platforms & others.