Markets will reward growth, not just size: Helios’ Dinshaw Irani

India's long-term growth prospects remain strong despite recent market volatility, according to Dinshaw Irani, MD & CEO of Helios Capital Asset Management. The JAM trinity—Jan Dhan, Aadhaar, and mobile connectivity—has empowered economic participation through widespread access to banking, digital identity, and affordable data. These factors, combined with a young, dynamic workforce, create a robust foundation for sustained nominal GDP growth of around 10%+ over the long term.

Government policies aimed at attracting foreign capital are crucial in sustaining this growth momentum.

Mid- and small-cap companies continue to offer attractive opportunities, as evidenced by the recent corrections in these segments. These companies operate in sectors such as platform businesses, auto components, precision engineering, and consumer discretionary, where growth rates remain higher compared to traditional large-cap sectors. Investors should look at these mid- and small-cap stocks, which may experience periods of correction but ultimately reward growth.

Foreign investors have shifted their focus from large-cap names to mid- and small-cap businesses offering superior growth potential. Helios follows an "elimination investing" philosophy, rejecting stocks based on eight factors including industry structure, management quality, governance, accounting quality, and valuation. This selective approach helps identify companies that embody growth, quality, and value simultaneously.

While the world is increasingly driven by AI, Helios views AI as both a disruptor for traditional large-cap IT services and a catalyst for long-term growth. As AI adoption proliferates, it will create efficiency gains and new opportunities, particularly in the US. However, the traditional large-cap IT service players may face significant disruption. For retail investors, Irani emphasizes the importance of treating investing as a full-time commitment rather than a casual pastime.