Best Hedge Fund on India Says Expect 7 Good Years in Next 10
- Indian market never cheap, focus on long term: Habrok’s Khanna
- Reform push should bolster economic expansion next year
A customer looks at banana displayed for sale at a roadside fruit stall in Bangalore, India, on Thursday, Oct. 27, 2016. India will soon have a national sales tax to replace the jumble of state levies that inhibit commerce. The goods-and-services tax (GST) will go a long way towards fulfilling Prime Minister Narendra Modi's pledge to make it easier to do business in the world's seventh-largest economy.
Photographer: Dhiraj Singh/BloombergThe top-performing hedge fund focused on India isn’t scared by equity valuations that are the most expensive in 10 years and predicts Asia’s third-largest economy will have seven good years in the next decade.
Rahul Khanna, chief investment officer at Habrok Capital Management LLP, said his fund is betting on the long-term potential of the economy, which will begin to benefit next year from the government’s crackdown on black money and a nationwide sales tax. Last year’s cash ban and the goods and services tax introduced July 1 are expected to widen the tax base, while the latter should also make it easier to do business.