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<keyword id="24068881" type="General" weightage="100" keywordseo="Equity-investments-in-Indian-real-estate" source="keywords">Equity investments in Indian real estate</keyword> may rise 49% to $11 billion this calendar year amid strong demand for properties, according to CII and CBRE. In the 2023 calendar year, the equity investments in real estate stood at $7.4 billion. Industry body CII and real estate consultant CBRE on Wednesday released a joint report titled 'Leading the Charge: Crafting the Skylines of Tomorrow' at the annual CII Realty 2024 conclave. Equity capital inflows touched $8.9 billion between January and September, registering a 46% year-on-year growth. "Overall equity investments in 2024 in the real estate sector are set to hit a new record surpassing $10 billion for the first time," the report said. With a resurgence in investment inflows in built-up office assets and a strong acquisition pipeline for land in the residential sector, the overall equity investments in 2024 would be in the $10-11 billion range. During January-September, institutional and collective vehicle investors accounted for nearly 40% of the overall investments. Developer companies led the total capital inflows with more than 41% share in this period. Domestic investors (predominantly developers) invested nearly USD 6 billion during the first nine months of the calendar year, dominating the overall capital inflows with an almost 65% share. In comparison, foreign investors contributed about $3.1 billion during the same timeframe. Notably, North American and Singaporean investors were the significant contributors, representing about 85% of all foreign capital inflows. Anshuman Magazine, Chairman &amp; CEO, India, South-East Asia, Middle East &amp; Africa, CBRE, said, "Projection for 2024 equity investments between $10-11 billion, highest-ever, underscores continued investor interest in the growing <keyword id="23870227" type="General" weightage="20" keywordseo="real-estate-market-in-India" source="keywords">real estate market in India</keyword>." With SEBI's SM-REIT framework, he said, smaller but high-quality assets in Tier-II markets would also present new avenues for strategic capital deployment. "We believe this regulatory support will add much-needed transparency, enabling a more diversified investment base and encouraging institutional participation across these markets," Magazine said. Going ahead, he said this growing diversification will not only solidify India's real estate sector but also pave the way for future growth across emerging asset classes.

Equity investments in Indian real estate may rise 49% to record $11 billion this year, says CII-CBRE report

Domestic firms will <keyword id="6356112" type="General" weightage="100" keywordseo="lease" source="Orion">lease</keyword> an estimated 60-65 million square feet of <keyword id="181150" type="General" weightage="20" keywordseo="office-space" source="Orion">office space</keyword> between 2024 and 2025, according to <keyword id="20060150" type="General" weightage="20" keywordseo="cbre" source="keywords">CBRE</keyword> South Asia's report, '<keyword id="19895063" type="General" weightage="20" keywordseo="india" source="keywords">India</keyword> Inc's Ascension - The Rise of Domestic Firms as an Office Demand Driver'. Domestic companies have been responsible for nearly 47 per cent of office leasing activity from 2022 to H1 2024, marking a departure from the traditional dominance of global corporations, particularly American firms. During 2022-2023, domestic firms experienced a 60 per cent surge in office space absorption compared to the pre-pandemic period of 2018-2019. Key occupier groups have secured significant spaces in prime locations across major cities, with <keyword id="19913115" type="General" weightage="20" keywordseo="delhi-ncr" source="keywords">Delhi-NCR</keyword> leading, followed by <keyword id="6354321" type="General" weightage="20" keywordseo="bengaluru" source="Orion">Bengaluru</keyword> and Mumbai. E-commerce and life sciences companies have driven occupancy in Bengaluru and Hyderabad, respectively, while Mumbai has captured a substantial 43 per cent share of domestic <keyword id="19910880" type="General" weightage="20" keywordseo="bfsi" source="keywords">BFSI</keyword> leasing, with strong contributions from Delhi-NCR and Chennai. The report attributes the robust growth of India's office market to several factors, including government initiatives like Make in India and the <keyword id="19952889" type="General" weightage="20" keywordseo="production-linked-incentive" source="keywords">Production Linked Incentive</keyword> (PLI) Scheme. These programs, along with increased domestic manufacturing, employment generation, and a well-capitalized banking sector, have created a supportive environment for business expansion. Other contributing factors include low corporate leverage ratios and improved access to capital, which have enhanced the investment capacity of Indian companies. India's talent pool, with approximately 2.5 million STEM graduates and a thriving start-up ecosystem featuring over 100 unicorns, has also been a major driver of growth. With over 38 sector skill councils, the government's focus on bridging the skill gap is preparing domestic firms for future demands, further bolstering the office leasing sector. Flexible space operators, technology, and BFSI sectors have emerged as the primary drivers of office leasing, collectively accounting for two-thirds of all domestic activity. The RCA sector, which includes legal, taxation, HR, and media services, is also playing a significant role in boosting domestic leasing. Additionally, Indian engineering and manufacturing firms, which currently represent 7-8 per cent of domestic office leasing, are expected to expand into <keyword id="20270212" type="General" weightage="20" keywordseo="tier-ii" source="keywords">Tier-II</keyword> and Tier-III cities, which are emerging as manufacturing hubs. Anshuman Magazine, Chairman and CEO, India, Southeast Asia, Middle East &amp; Africa, CBRE, said, "India's rapidly expanding start-up ecosystem and talent abundance are major drivers of this demand. As India's major urban centers continue to grow and diversify, the demand for premium office spaces will shape the future of the commercial real estate market, setting new standards for innovation and excellence. He added, "India's top nine cities are poised to see an impressive addition of ~185 million sq. ft. of premium office space by 2026. This dramatic increase in office space is a testament to several key factors driving the transformation of the commercial real estate landscape". Ram Chandnani, Managing Director, Advisory and Transaction Services, CBRE India, said, "Advances in technology, especially artificial intelligence (AI), are poised to further transform the office sector. While AI may cause job displacement in some areas, it will also create new opportunities and necessitate comprehensive workforce reskilling. The surge in workforce needs, driven by digitalization, evolving workplace strategies, and enhanced business confidence, has substantially boosted leasing activity."

Domestic firms to lease 60-65 million sq ft office space by 2025: CBRE report

Top VC firm <keyword id="136147" type="General" weightage="50" keywordseo="sequoia-capital-india" source="Orion">Sequoia Capital India</keyword> has sold 17.2 crore shares of <keyword id="830092" type="General" weightage="100" keywordseo="zomato" source="Orion">Zomato</keyword> in two tranches in the open market, lowering down its stake in the online food aggregator to 4.4 per cent from earlier 6.41 per cent. In a fresh filing with the Bombay Stock Exchange (<keyword id="35140" type="General" weightage="50" keywordseo="bse" source="Orion">BSE</keyword>), Zomato said Sequoia Capital India sold some 6.7 crore shares in the September 6-October 14, 2021 period and 10.5 crore shares between June 27-August 25, 2022. The stock sales were performed by <keyword id="14821825" type="General" weightage="50" keywordseo="sequoia-capital-india-growth-investment-holdings" source="Orion">Sequoia Capital India Growth Investment Holdings</keyword> I and <keyword id="13302083" type="General" weightage="50" keywordseo="sci-growth-investments-ii" source="Orion">SCI Growth Investments II</keyword>, according to Zomato. <keyword id="10639596" type="General" weightage="50" keywordseo="sequoia-capital-india-investments-iv" source="Orion">Sequoia Capital India Investments IV</keyword> also received 45,153,346 incremental equity shares on August 10 owing to the acquisition of quick-commerce delivery platform Blinkit, which further has a lock-in period of one year. Sequoia Capital India joins a list of private market investors like Delivery Hero, Moore Strategic Ventures, and <keyword id="526777" type="General" weightage="50" keywordseo="tiger-global" source="Orion">Tiger Global</keyword>, which have sold their shares in Zomato in the past months, either in open market or via block deals, as the online food delivery platform's stock gets hammered. On Friday, Zomato shares closed around Rs 61.85. Earlier this month, ride-hailing platform Uber sold its 7.8 per cent stake worth over $390 million in Zomato. Uber, which suffered around $707 million loss in its Zomato investment in the first half of this year, sold its share in the food delivery aggregator via a block deal on stock exchanges that has been bought by several global and Indian VCs. The Zomato block deal was executed at Rs 50.44 per share equivalent to 612 million or 7.8 per cent of total outstanding shares. In a statement to IANS, Zomato had said that "We are a public company and are not privy to what our shareholders are doing with their shares". According to the company, the losses for Blinkit are coming down every month -- from Rs 2,040 million (about $26 million) in January 2022 to Rs 929 million ($12 million) in July. The 10-minute delivery platform was acquired by Zomato for Rs 4,447 crore (about $568 million). SEE ALSO : <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/indices-end-marginally-higher-after-a-volatile-trading-session/articleshow/93802735.cms">Indices end marginally higher after a volatile trading session</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/careers/news/heres-everything-you-need-to-know-about-uks-new-scale-up-visa/articleshow/93799259.cms">Here’s everything you need to know about UK’s new Scale-up visa</a>

Sequoia Capital offloads 2% of its stake in Zomato

India’s <keyword id="20312255" type="General" weightage="20" keywordseo="Business-Process-Management" source="keywords">Business Process Management</keyword> (<keyword id="700088" type="General" weightage="20" keywordseo="bpm" source="Orion">BPM</keyword>) industry is defying predictions that generative artificial intelligence (Gen-<keyword id="6355999" type="General" weightage="20" keywordseo="ai" source="Orion">AI</keyword>) could pose challenges for them. Instead, the sector is making a bold bet on AI and skilled talent to fuel its resurgence. With significant investments underway, industry leaders are confident that these efforts will show results within the next 3-5 years. “All of us are investing. And, the ROI will start coming in the next 3-5 years,” Harita Gupta, Head of Global Experience, SVP Global Business Operations Solutions and Support at Sutherland and the chairperson of <keyword id="19955786" type="General" weightage="20" keywordseo="Nasscom" source="keywords" meta.keywordsubtype="org" meta.entityname="Nasscom" meta.hostid="261" meta.entityid="Nasscom">Nasscom</keyword> BPM Council. She shared these insights during a panel discussion on “Data, Technology, Skill and Customers – The New Value Levers for BPM in India,” hosted by Business Insider India. Leaders in the <keyword id="21482461" type="General" weightage="20" keywordseo="BPM-industry" source="keywords">BPM industry</keyword> are confident about <keyword id="19985355" type="General" weightage="20" keywordseo="Gen-AI" source="keywords">Gen-AI</keyword>’s potential to create markets that have never existed before, help them do what they have already been doing for a decade more efficiently, and transform their companies into AI-driven enterprises. The Indian BPM industry generated $48.9 billion revenue as of FY24. <div type="Youtube" id="utbJS9i9RgA" title="Unlocking New Value Levers For BPM In India: The Role Of Data, Tech, Skill And Customers" thumbUrl="https://i.ytimg.com/vi/utbJS9i9RgA/mqdefault.jpg"><url><![CDATA[https://www.youtube.com/watch?v=utbJS9i9RgA]]></url></div> <h2>Tapping into emerging <keyword id="21859797" type="General" weightage="20" keywordseo="talent-hubs" source="keywords">talent hubs</keyword></h2> Traditionally, it is present in India’s metro cities, like Delhi, Bombay, Bombay and Pune. In its second innings, the BPM industry has shifted its focus to Tier-II and Tier-III cities, which offer a wealth of talent, lower operational costs and more accommodative regulations. “The industry has started to take jobs to where the talent is rather than the other way around,” remarked Sapna Bhambani, the Senior VP of Operations and Geo Leader at TaskUs. She highlighted that over half of TaskUs’ business is now based out of Tier-II cities with Indore and Mohali leading the way. “The states where the government is extending a helping hand are the most successful emerging hubs,” Bhambani added. Nasscom too is keen on Tier-II and Tier-III cities for the expansion of the BPM industry, identifying Lucknow, Kanpur, Coimbatore, Trichy, Indore, Bhopal, Vizag and Vijayawada as notable emerging hubs. Gupta emphasised that the industry body will be working hand-in-hand with the universities and institutions in the area to build talent pipelines and garner support. And hiring from Tier-II cities is not just about tapping into new talent pools; it’s also improving employee retention, which has been a pain point for the industry in recent years. Tech Mahindra has tried to counter this by hiring for non-frontline roles from within the company, rather than hiring new talent. However, as Venkatesh Korla, the CEO of Americas at Hinduja Global Solutions (HGS) pointed out, a cultural shift is still needed to rebrand BPM jobs. “It’s changing. It’s not 100 percent there yet… They’ve realised there’s a lot more stickiness and a lot more opportunity in the BPM space, and we see talent also want to take on these jobs,” Korla explained. <h2>Creating new markets</h2>Most AI processes are trained using large language models (LLMs). Many, GPT-Neo and BERT, are open-source, which means they’re free for anyone to use. However, enterprises are looking to build their own LLMs in-house to train their AI products primarily to maintain control over proprietary data – a move that opens up new opportunities for BPM firms. “Large SAS companies want to integrate their own LLM in their products and they require the same BPM services to actually train their models. That’s a huge opportunity,” Birendra Sen, the President of Business Process Services at Tech Mahindra, told Business Insider. <h2>The need for experimentation</h2>While the use of Gen-AI in the BPM industry is widespread, many initiatives are still in the Proof of Concept (POC) stage. This implies that while there is investment, both in terms of money and manpower, directed at creating more Gen-AI led solutions, they may not necessarily succeed. “If something fails, we just fail fast and move,” Gupta told Business Insider. Moreover, leaders like Venkatesh Korla view AI as a transformative tool that complements human expertise rather than replacing it. “AI is going to help in coaching, compliance, and in quality control. I call this the Iron Man's suit or the J.A.R.V.I.S. for Iron Man because it never replaces the human inside the suit. So, that's really how we need to look at it,” Korla remarked. India’s BPM sector has demonstrated resilience and adaptability in the face of previous challenges, such as the rise of automation and the shift towards digital services. It is now poised to reinvent itself, this time by integrating AI with human expertise and expanding into new talent hubs. With a strong focus on innovation and upskilling, industry leaders are optimistic about the future, anticipating that these strategic moves will secure India’s position as a global leader in the BPM landscape over the next few years. This article is part of a four-part webinar series in partnership with Nasscom. These monthly webinars aim to delve deep and offer insights into the evolving BPM landscape. You can watch the full video of the first session <a href="https://www.youtube.com/watch?v=utbJS9i9RgA">here</a>. Disclaimer: This article is generated and published by the Insider Studios team. You can get in touch with them on insiderstudios@businessinsider.in

The future of BPM in India: AI, talent hubs and a new growth strategy

<ul class="summary-list"><li><keyword id="23582686" type="General" weightage="20" keywordseo="tim-tully" source="keywords">Tim Tully</keyword> taught himself to code when he was six and went to school for computer science.</li><li>He started his career in software engineering at startups and later worked at Yahoo and Splunk.</li></ul>Venture capitalist Tim <keyword id="23582684" type="General" weightage="20" keywordseo="tully" source="keywords">Tully</keyword>'s programming experience began at age six, when he taught himself to write code and make video games on an Apple II computer. Fast-forward to the present: Tully has a data center in a basement and is known to deploy software and try out startups' APIs when he's sussing out potential investments. He's also written code for some of his portfolio companies. Using his technical expertise as a former programmer and CTO, Tully is helping amass an impressive portfolio of AI startups at <keyword id="23582685" type="General" weightage="20" keywordseo="menlo" source="keywords">Menlo</keyword> Ventures. The firm, which has backed Chime, Warby <keyword id="20325026" type="General" weightage="20" keywordseo="parker" source="keywords">Parker</keyword>, Roku, and Uber, has historically focused broadly on early and growth-stage startups across the consumer, enterprise, and healthcare sectors. More recently, Menlo has <a target="_blank" class="" href="https://www.businessinsider.com/menlo-ventures-naomi-ionita-investor-3-lessons-growth-saas-2020-12">planted its flag in the generative AI space</a> as frenzy in the sector is creating new <keyword id="19926959" type="General" weightage="20" keywordseo="opportunities" source="keywords">opportunities</keyword> for early-stage startups. The firm closed a <a target="_blank" href="https://techcrunch.com/2023/11/16/menlo-ventures-closes-on-1-35b-in-new-capital-targets-investments-in-ai-startups/?guccounter=1&amp;guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&amp;guce_referrer_sig=AQAAAJVkFGzX14zh8oeHL-Sgmmj-ke1177qyd4BoL1N3eHbqg52MVVO8w7Q3RR0puoRkQ4EVSoyHdffSI5guxcbH9Yl6z1fudXp_WheLfxYB72QiEo_1inwN7UZNPAOLctyEfQ-jGLcCesRz0ajnDsJPg8AVE2iYArspH-l5HM_X7Pbp">$1.35 billion fund</a> last year specifically for investing in fledgling AI startups, and it's already been an early backer of AI powerhouses including vector database <a target="_blank" class="" href="https://www.businessinsider.com/chroma-weaviate-pinecone-raise-funding-a16z-index-vector-database-ai-2023-3">Pinecone</a>, LLM developer <a target="_blank" class="" href="https://www.businessinsider.com/researchers-at-anthropic-taught-these-ai-chatbots-how-to-lie-2024-1">Anthropic</a>, enterprise data cleaner Unstructured, conversational AI system Neon, automated data cleanup program Cleanlab, and many others. For Tully, one of Menlo's key check-writers in this space, having a background in computer science and operating experience has been necessary when it comes to evaluating potential AI investments. "I'm still coding every day," he said. "That really helps me for my job, and I think it's really hard to be a VC and invest in a deeply technical product if you don't have a technical background. I'm actually using this stuff." <h2>Before becoming a VC, Tully worked at startups and led engineering teams</h2>For Tully, who grew up in the Bay Area, computers and games have always been a core part of his life. He had an Apple II computer and cassette tape player that plugged into a TV on a rolling cart, which is where he taught himself to code by playing video games and reading through manuals. He said an early game of his, coded using Applesoft BASIC, was a text-based adventure game in which players would get lost in a forest and navigate through a maze, answering a series of fork-in-the-road puzzles to chase down the treasure. As a teenager, Tully had a bank of modems at his mom's house to organize a <a target="_blank" href="https://www.theatlantic.com/technology/archive/2016/11/the-lost-civilization-of-dial-up-bulletin-board-systems/506465/">bulletin board system</a> – a pre-internet computer server that other users could dial into – to host pirated video games. After college, Tully gravitated toward startups, becoming a software engineer at the dot-com-era companies iScale and Pillar Data Systems, the latter of which he left in 2003 and was eventually acquired by Oracle. He spent 14 years at Yahoo, working his way up to lead engineering for Yahoo, AOL, and its media properties, which included the Huffington Post, Tumblr, Polyvore, and Flurry, and managing a team of more than 850 people. In 2017, Tully joined data analytics company Splunk as its chief technology officer and senior vice president of product and engineering and managed the company's migration to the cloud. While he loved his team at Splunk, Tully said that he was always interested in the investing side of the tech world, and his interest was further piqued by his wife, <a target="_blank" href="https://www.businessinsider.com/sequoia-partner-jess-lee-advice-for-startup-founders-2022-9">Jess Lee</a>, who has been a partner at Sequoia since 2016. "Growing up in the Valley, I had this in the back of my mind, and I thought that as a technical person, I could do the job differently, so I began to take some calls," he said. One of those calls eventually turned into a job offer at Menlo Ventures, and Tully joined the firm as a partner in 2021. "This was an opportunity to be part of the next wave of folks that joined the firm, which was exciting to me because I'm a builder," he said. <h2>At Menlo Ventures, Tully writes checks for AI startups at the app and infrastructure layers</h2>Since joining Menlo, Tully has invested in nine startups, including Pinecone, which raised a $28 million Series A in 2022; Neon, which raised a $46 million Series B in 2023; Unstructured, which raised a $40 million Series B in 2024; and JuliaHub, an AI programming startup that raised $24 million in 2021. Another of his portfolio companies, AI quality management software startup True Era, was acquired by Snowflake earlier this year. For Tully, finding camaraderie with technical founders has been a winning strategy so far in his VC career. "My background helps me connect with technical founders because they want investors who they can talk shop with," he said. "I've managed teams and have been CTO of a public company." He's also written code as a way to help win over startups in the broader Menlo Ventures portfolio. In 2022, another Menlo partner, Naomi Pilosof Ionita, was working to land a deal for fintech startup Orb. The company didn't have a software development kit, so Tully wrote them one, printed out a link to the devkit, rolled it into a scroll, and delivered it to the startup. That helped seal the deal, and Ionita led Orb's $14 million Series A funding round. While Menlo has been bolstering its portfolio with AI-infrastructure startups, Tully said he's excited about opportunities at the application layer. This means looking at various vertical AI categories, including legaltech — he wrote a $14 million seed check for the AI legal assistant Eve, which was announced in 2023 — as well as marketing and automation. And, perhaps unsurprisingly, Tully is also trying out various AI coding copilots, and he says that the tech is making him "50-60% more productive if I'm being honest." "I'm really high on AI coding assistants," he said. "Opportunities in this space are pretty compelling." Correction: October 8, 2024 -- An earlier version of the story misstated the year Pillar Data Systems was acquired by Oracle, which was in 2011, not in 2003, which was when Tully left the company. It also said that Menlo Ventures invested in Eve in 2022, and the correct year is 2023. .

Tim Tully taught himself to code at age 6 and still codes daily. Here's how computer science took him from startups to AI investing at Menlo Ventures.

Industry players on Monday hailed the government's move to enhance the scheme outlay of Faster Adoption and Manufacturing of Electric Vehicles (<keyword id="19912965" type="General" weightage="20" keywordseo="fame" source="keywords">FAME</keyword>) <keyword id="19895063" type="General" weightage="20" keywordseo="india" source="keywords">India</keyword> <keyword id="20527557" type="General" weightage="20" keywordseo="phase-ii" source="keywords">Phase II</keyword>, saying it will enhance infrastructure, foster widespread adoption and longevity of electric vehicles across the country. The Ministry of Heavy Industries announced that the scheme outlay of FAME India Phase II has been enhanced from Rs 10,000 crore to Rs 11,500 crore under FAME India scheme Phase II in order to give a further push to clean mobility in the country. The ministry also said that it is a "fund and term limited scheme", which means that the subsidies for demand incentive will be eligible for e-two-wheelers, e-three-wheelers, and e-four-wheelers sold till March 31, 2024 or till the time the funds are available, whichever is earlier. "We applaud the government's decision to enhance the FAME India Scheme Phase II outlay to Rs 11,500 crore. This timely boost in investment is a shot in the arm for the EV industry, accelerating its growth trajectory and paving the way for a cleaner, more sustainable future," VG Anil, CEO of EV battery manufacturer Arenq. The main objective of the scheme is to encourage faster adoption of electric and hybrid vehicles by way of offering upfront incentives on purchase of EV and also by establishing a necessary charging infrastructure for electric vehicles. "This Rs 1,500 crore boost sends a clear message: India is serious about electrifying its mobility landscape. Lower upfront costs for EVs, coupled with enhanced charging infrastructure, will incentivize riders to choose eco-friendly travel, accelerating the transition to a zero-emission future," Mayank Bindal, Founder and CEO, <keyword id="20078292" type="General" weightage="20" keywordseo="snap-e-cabs" source="keywords">Snap E Cabs</keyword>, told IANS. The number of EV charging stations that are operating in the country has gone up to 12,146 (as of February 2 this year), according to the government data. "The extension of FAME II until the end of March with a substantial outlay of 1,500 crore is a positive move," said <keyword id="20300065" type="General" weightage="20" keywordseo="avinash-sharma" source="keywords">Avinash Sharma</keyword>, Co-Founder of ElectricPe. "This not only strengthens consumer-side subsidies but also enhances infrastructure, fostering widespread adoption and longevity of electric vehicles across the country," Sharma added. SEE ALSO: <a href="https://www.businessinsider.in/tech/news/wd-black-sn850x-ssd-review/articleshow/107557627.cms">WD Black SN850X SSD review – a reliable gaming SSD</a> <a href="https://www.businessinsider.in/tech/mobile/news/oneplus-open-review/articleshow/106961567.cms">OnePlus Open review – Feature-packed foldable in a premium design</a> <a href="https://www.businessinsider.in/tech/mobile/news/vivo-x100-review-top-end-camera-centric-smartphone-with-sleek-design/articleshow/106539033.cms">Vivo X100 review – Top-end camera centric smartphone with sleek design</a>

Industry hails extension of FAME II scheme to bolster EV infra

<ul><li><keyword id="3117450" type="General" weightage="20" keywordseo="HDFC-Capital" source="Orion">HDFC Capital</keyword> has raised $376 million under the second scheme of <keyword id="16012698" type="General" weightage="20" keywordseo="HDFC-Capital-Affordable-Real-Estate-Fund-3" source="Orion">HDFC Capital Affordable Real Estate Fund -3</keyword> (<keyword id="15003778" type="General" weightage="20" keywordseo="H-CARE-3" source="Orion">H-CARE 3</keyword>).</li><li>H-CARE 3 is a <keyword id="16012699" type="General" weightage="20" keywordseo="category-II-alternative-investment-fund" source="Orion">category II alternative investment fund</keyword> (AIF) that focuses on providing long-term investment in affordable and mid-income housing projects.</li><li>In addition, the real estate private equity arm of HDFC Group will also invest in technology companies engaged in the affordable housing ecosystem.</li><li>Abu Dhabi Investment Authority (ADIA), through a wholly-owned subsidiary, is the primary investor in H-CARE 3 schemes 1 and 2.</li></ul> HDFC Capital, a subsidiary of top mortgage lender Housing Development Finance Corporation, has raised $376 million under the second scheme of HDFC Capital Affordable Real Estate Fund -3 (H-CARE 3). H-CARE 3 is a category II alternative investment fund (AIF) that focuses on providing long-term, flexible funding across the lifecycle of affordable and mid-income housing projects, including early-stage funding. HDFC Capital is the investment manager to HDFC Capital Affordable Real Estate Fund 1 (H-CARE 1), HDFC Capital Affordable Real Estate Fund 2 (H-CARE 2) and HDFC Capital Affordable Real Estate Fund 3 (H-CARE 3). All these funds combine to create a $ 3.1 billion platform targeting the development of affordable and mid-income housing in India. Abu Dhabi Investment Authority (ADIA), through a wholly-owned subsidiary, is the primary investor in H-CARE 3 schemes 1 and 2. “Despite the recent headwinds in the global macro landscape, I continue to be optimistic about the demand for homes in India. As the pivot of global growth shifts, India is envisaged to remain amongst the fastest growing major economies,” said Deepak Parekh, chairman, HDFC. “And housing will play an even more important role as a catalyst for growth. HDFC Capital has been one of the pioneers of investing in affordable and mid-income housing projects in India.” Parekh further added that, “With the support of leading global investors like ADIA and partnerships with trusted developers, the HDFC Capital platform is well on its way to achieve its medium-term goal of funding one million affordable homes in India.” In addition, the real estate private equity arm of HDFC Group will also invest in technology companies (construction technology, fin-tech, sustainability-tech etc.) engaged in the affordable housing ecosystem, the company said. “At HDFC Capital, our vision is to finance the development of the affordable housing ecosystem in India and provide a seamless platform for all stakeholders including global investors, developers, and vendors to access financing and technology innovations to develop sustainable and smart affordable homes,” said Vipul Roongta, MD &amp; CEO at HDFC Capital. HDFC Capital’s target is to finance the development of one million affordable homes in India through a combination of innovative financing, partnerships and technology, whilst focusing on sustainability. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/indias-credit-worthiness-to-be-stable-in-2023-but-upcoming-elections-could-keep-social-spending-elevated-moodys/articleshow/96851926.cms">India’s credit worthiness to be stable in 2023, but upcoming elections could keep social spending elevated: Moody’s</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/thelife/personalities/news/gautam-adani-aap-ki-adalat-interview-dhirubhai-ambani-is-my-role-model-mukesh-ambani-a-very-good-friend/articleshow/96828407.cms">Dhirubhai Ambani is my role model and Mukesh Ambani a very good friend, says Gautam Adani</a>

HDFC Capital raises $376 million under alternative investment fund for affordable housing; ADIA is primary investor

<ul><li>Data centres, <keyword id="6713616" type="General" weightage="20" keywordseo="co-living-spaces" source="Orion">co-living spaces</keyword> along with other alternate real estate assets are seeing steady institutional inflows for four years, says Colliers.</li><li>India’s economic outlook is sturdy and the business case for alternative investments will only strengthen, it adds.</li><li>Data centres see almost half of all the institutional inflows into alternate assets. </li></ul>Indian alternate real estate assets like co-living spaces, data centres and more have been attracting domestic as well as foreign capital, along with conventional sectors like residential and office spaces. As of the first half of 2023, as much as $158 million was investment into such assets, says a report by Colliers. The breakout year for investments into these assets was 2022 when it touched $900 million. The key driver to this growth was foreign investments which rose six times last year as compared to 2019. India’s GDP is pegged to grow at 6.6% in 2023 as per IMF and the report adds that at such a time when India’s economic outlook remains sturdy amidst global challenges, the business case for alternative investments will only strengthen. “While core sectors continue to dominate the institutional inflows in the Indian real estate sector, the share of alternatives has risen significantly from 3% in 2019, to 18% during 2022,” said Piyush Gupta, managing director of capital markets &amp; investment services at Colliers. The billion dollar investment idea Since 2019, <keyword id="16069" type="General" weightage="20" keywordseo="data-centers" source="Orion">data centers</keyword> have received $1 billion of institutional inflows, with inflows rising multi-fold in the last five years. During the period under review (2019- H1 2023), data centres accounted for about 51% share in the total investments in alternatives, the report said. “India's data centre market is experiencing rapid growth, fuelled by a remarkable surge in virtualisation, e-commerce, cloud computing, and the prolific generation of public data. As the world's second-fastest-growing digital economy, India is set to witness the IT &amp; Communication sector's doubling by 2025, contributing approximately $400 billion to the Indian GDP,” said Amit Sarin, MD at Anant Raj, a real estate developer. The Government of India has recently enacted the Data Protection Bill to ensure protection of data and this has further boosted the demand for data centres, say experts. Data centres are also witnessing large platform deals between developers and investors who are looking to grow their businesses multi-fold. In May 2023, Lumina CloudInfra, a data centre platform owned and managed by Blackstone’s Real Estate and Tactical Opportunities funds, announced its plan to invest more than $300 million to develop a hyperscale data centre campus in Navi Mumbai. Reliance Industries also partnered with Brookfield Infrastructure and Digital Realty for developing data centres in select locations in India. Co-living — an emerging sector Other alternative asset classes such as life sciences, co-living have also seen increased traction, Colliers say. Alternate assets also include senior housing, holiday homes, student housing and co-living properties. The co-living sector in India too saw expansion during Covid-19 pandemic. “This growth has led to increased organisation within the sector, with only committed and reputable players remaining in the business. The demand for co-living accommodations continues to surge nationwide, indicating a promising outlook,” said Sunny Garg, co-founder &amp; CEO, Crib, a SaaS-based property management solution provider. Co-living also offers higher rental returns compared to traditional rental arrangements, making it an enticing prospect for institutional investors, Garg adds. The trend is also going beyond metros, experts say. “This demand is emerging in tier II cities as well. To meet this growing demand, we have strategic plans to expand our facilities into tier II cities like Ahmedabad,” said Abhishek Tripathi, co-founder, Settl, a co-living space developer.

Foreign investments in alternate real estate assets jump 6X in four years

<ul class="summary-list"><li><keyword id="12084044" type="UNKNOWN" weightage="60" keywordseo="stagflation" source="Orion">Stagflation</keyword> is an economic condition that's caused by a combination of slow economic growth, high unemployment, and rising prices.</li><li>Stagflation occurred in the 1970s as a result of monetary and fiscal policies and an oil embargo.</li><li>Concern about stagflation has emerged as economic growth cools and <keyword id="11894140" type="UNKNOWN" weightage="60" keywordseo="inflation" source="Orion">inflation</keyword> remains high amid the COVID-19 recovery.</li></ul>Stagflation is a combination of the words stagnation and inflation. It describes an economic condition characterized by slow growth and high unemployment (economic stagnation) mixed with rising prices (inflation).The term appeared as early as 1965, when British Conservative Party politician Iain Macleod <a href="https://api.parliament.uk/historic-hansard/commons/1965/nov/17/economic-affairs#S5CV0720P0_19651117_HOC_282" target="_blank" rel="noopener">in a speech to the House of Commons</a> said: "We now have the worst of both worlds — not just inflation on the one side or stagnation on the other, but both of them together. We have a sort of 'stagflation' situation and history in modern terms is indeed being made."Initially, many economists believed stagflation wasn't possible. After all, unemployment and inflation rates generally move in opposite directions. However, as the "<a href="https://www.stlouisfed.org/dialogue-with-the-fed/reflections-on-the-maverick-reserve-bank/videos/part-3-david-wheelock-the-great-inflation-period" target="_blank" rel="noopener">Great Inflation</a>" period of the 1970s ultimately proved, stagflation is real, and it can have a devastating effect on the <keyword id="11893570" type="UNKNOWN" weightage="60" keywordseo="economy" source="Orion">economy</keyword>.<h3>Stagflation vs. inflation</h3>Stagflation and inflation are related, but they shouldn't be confused. The term<a href="https://www.businessinsider.com/what-is-inflation" target="_blank" rel="noopener"> inflation</a> refers to a sustained increase in the average price level of all goods and services, not just a few of them, in an economy over time. Inflation happens when<a href="https://www.stlouisfed.org/education/feducation-video-series/episode-1-money-and-inflation" target="_blank" rel="noopener"> the money supply grows at a faster rate</a> than the economy can produce goods and services.Quick tip: You can have inflation without stagflation. But stagflation always involves inflation.<div type="image" title="Stagflation explainer on what causes the economic condition" height="795" width="1667" msid="87497046" hostid="261"></div><a href="https://www.businessinsider.com/what-is-stagflation-explained-oil-outlook-low-growth-high-inflation-2021-10" target="_blank" rel="noopener">Stagflation</a> happens when inflation exists in tandem with slow economic growth and high unemployment. Typically, these economic conditions don't occur together. Unemployment and inflation tend to be inversely correlated. So, as unemployment rates increase, inflation usually decreases and vice versa. Of course, as the stagflation of the 1970s illustrated, this relationship isn't always stable or predictable.<h2>What causes stagflation? </h2>Stagflation is a perfect storm of economic ills: slow economic growth, high unemployment, and high prices. The two root causes of stagflation economists generally agree upon are supply shocks and fiscal and <a href="https://www.businessinsider.com/monetary-policy" target="_blank" rel="noopener">monetary policies</a>.A supply shock is anything that reduces the economy's capacity to produce goods and services at given prices. For example, throughout the pandemic, there have been supply shocks in:<ul><li>Labor, with fewer people working</li><li>Goods, for example, semiconductor shortages, which started even before the pandemic</li><li>Services, as people postponed elective surgeries and other health-care procedures</li></ul>Poor <a href="https://www.federalreserve.gov/faqs/money_12855.htm" target="_blank" rel="noopener">fiscal and monetary decisions</a> also prompt stagflation. "Many things contribute to stagflation, but excess growth in the money supply is most important," says <a href="https://www.linkedin.com/in/richard-dekaser-3809b89/" target="_blank" rel="noopener">Richard J. DeKaser</a>, executive vice president and chief corporate economist at Wells Fargo &amp; Co."During the 1970s, for example, Fed Chairman Arthur Burns responded to soaring commodity prices with inappropriately easy monetary policy that allowed inflation to persist and get firmly entrenched in expectations," says DeKaser. "The <a href="https://fraser.stlouisfed.org/files/docs/meltzer/jep_2006_abrams_how_richard_nixon.pdf" target="_blank" rel="noopener">record</a> now shows that, to some degree, this was because he succumbed to political pressure at the time."<h2>What are the consequences of stagflation? </h2>The trifecta of slow growth, high unemployment, and fast inflation puts significant pressure on the economy. "Stagflation is unambiguously harmful to the economy, as high inflation and inflation uncertainty distort investment decisions," says DeKaser. "It is also damaging to-fixed income markets, as rising interest rates push bond prices lower and depress equity valuations."For households, stagflation means people are earning less money while spending more on everything from food and medicine to housing and consumer products. As consumer spending slows, corporate revenue declines, exacerbating the overall effect on the economy.<h2>Stagflation in the 1970s </h2>By the late 1960s, the post-World War II economic boom began to fade. As the US faced greater international competition, a drop in manufacturing jobs, and a massively expensive war in Vietnam, unemployment rates and inflation climbed.Then, in 1971, former president Richard Nixon undertook a series of measures intended to create better jobs, remedy inflation, and protect the US dollar:<ul><li>A 90-day freeze on wages and prices</li><li>A 10% tariff on imports</li><li>The removal of the US from the gold standard</li></ul>Now known as the "Nixon Shock," these moves ultimately became the primary catalyst for the stagflation of the 1970s. <a href="https://www.businessinsider.com/what-is-the-federal-reserve" target="_blank" rel="noopener">Federal Reserve</a> attempts to fight stagflation using monetary policy only worsened it. Between 1971 and 1978, the Federal Reserve raised the federal funds rate to fight inflation, then lowered it to fight the recession. The stop-and-go measures confused households and businesses and ultimately drove inflation higher. But the US had even more difficulties. An Organization of Petroleum Exporting Countries (OPEC) oil embargo on the US starting in 1973 caused prices to skyrocket. Businesses passed those costs on to consumers, but they also cut back on production (increasing unemployment) as the supply shock made goods more scarce. The price of oil per barrel initially doubled, then quadrupled, pushing inflation higher and further straining an already struggling US economy."The worst part of the experience from the 1970s was the aftermath," says DeKaser. "To reverse the momentum of ever-higher inflation, a severe recession was required (1981-82), and it took over a decade to wring out the fears of an inflation resurgence. It wasn't until the 1990s that investors began to seriously discount such a threat."<h2>The bottom line</h2>Stagflation weighed heavily on the US through the 1970s, and there have been concerns that it may reemerge as the economy recovers from the pandemic-induced recession.Economists are closely watching the trends in growth, unemployment, and inflation along with the potential catalysts that could trigger stagflation including supply disruptions and central bank policies. Persistently high energy prices have caused particular concern among some. While DeKaser says he's not especially worried about stagflation and sees the recent spike in inflation as temporary, he points to two main risks that could lead to it. "First, if the Federal Reserve is too complacent about inflation, it may let the money supply get too big," he says. "Second, if the situation of temporarily elevated inflation persists for long — say, two years or more — they may get baked into expectations and lead to a cycle of self-fulfillment."

What is stagflation? Understanding the economic phenomenon that stifled growth through the 1970s

<ul><li>FM rightly focussed on boosting <keyword id="47276" type="General" weightage="20" keywordseo="economic-growth" source="Orion">economic growth</keyword>, <keyword id="602999" type="General" weightage="20" keywordseo="employment-generation" source="Orion">employment generation</keyword>, encouraging savings and investments, and fiscal consolidation. </li><li>Building infrastructure also creates a massive number of jobs and has a multiplier effect on the economy. </li><li>India is rightly betting on <keyword id="1680281" type="General" weightage="20" keywordseo="infrastructural-growth" source="Orion">infrastructural growth</keyword>. </li><li>EODB measures, development, jobs, and a stable tax regime will help achieve investor confidence and sustained economic growth. </li></ul>Undisputedly, the Union Budget is one of the most anticipated annual events in India. I personally believe that the Union Budget 2023-24 should not be seen as an isolated event but as one of the many steps over a series of successful and pathbreaking reforms. For the past eight years, India has embarked on a number of reforms that are bringing about structural changes in the economy. In my opinion, the Finance Minister Nirmala Sitharaman rightly focussed on the following factors that align with the larger vision of the government. The focus areas are: (i) boosting economic growth, (ii) employment generation, (iii) encouraging savings and investments, and (iv) fiscal consolidation. The government needs to be commended for keeping the fiscal deficit under control. India’s fiscal deficit was in line with the Budget Estimates of 6.4% of the gross domestic product (GDP). Buoyant direct and GST (goods and services tax) collections were one of the reasons for successfully keeping the fiscal deficit under check. Gross tax collections in FY23 have outperformed the Budget Estimates target by more than 10%. According to the latest Economic Survey, the fiscal glide path envisioned by the government is a result of careful fiscal management supported by buoyant revenue collection over the past two years. By assuring that the fiscal deficit will be reduced to 5.9% in FY24 and further reduced to 4.5% in FY26, the FM has shown that fiscal consolidation remains a focus area. As expected, the markets have taken the fiscal consolidation of the government in a favourable manner. The 10-year G-Sec improved from 7.34% prior to the Budget to 7.28% post the Budget speech. The government’s measures to steadily increase the tax base, bringing in greater transparency and enhancing investor confidence are paying dividends. The government needs to be lauded for their ease-of-doing-business initiatives. According to the FM, over 39,000 compliances have been reduced and more than 3,400 legal provisions decriminalised. The focus on the salaried class needs to be applauded. The government rationalised income taxes by extending the benefits of standard deduction and also by reducing the surcharge rate for high income earners from 37% to 25%. This measure will reduce the maximum tax rate from 42.7% to 39%. These, along with other measures, are aimed at boosting the Indian economy as rising disposable incomes will promote savings and aid in consumption. This will leave more money in the hands of the people. which will in turn increase consumption and thereby, help in faster capacity utilisation, which over time, increase private investments as well. Without doubt, the Indian middle class are key drivers of consumption. Notably, India is a domestic consumption-based economy. Pradhan Mantri Awas Yojana (PMAY), which includes affordable housing, got a boost with an allocation of ₹79,000 crore. A rapidly growing country like India, with a large young population, needs more homes at affordable price points that would enable more households to become homeowners. A source of pride for any middle-class Indian is to buy and stay in her own home. Another notable feature was the establishment of the Urban Infrastructure Development Fund that will be managed by the National Housing Bank. The aim is to create urban infrastructure in smaller cities. This is a laudable move as construction of housing and the development of surrounding infrastructure should go hand in hand. By significantly increasing the capital expenditure for the third year in a row and by increasing it by 33% to ₹10 lakh crore (or 3.3% of the GDP) over the previous year, the Budget has sent strong signals that India is equipped to absorb large amounts of investments. Besides, investments in new projects will create jobs, which will then generate income, increase consumption and result in greater demand for goods and services. Job creation will increase aggregate demand and eventually lead to higher economic growth. As the Economic Survey rightly noted, there has been an unprecedented expansion and modernisation of infrastructure including ports and airports over the past eight years. According to me, one way to ensure sustained recovery without spiralling inflation is to build infrastructure. Building infrastructure also creates a massive number of jobs and has a multiplier effect on the economy. India is rightly betting on infrastructural growth. The Budget fittingly focused on supporting start-ups, providing credit guarantee to MSMEs and other incentive measures. Manufacturing and infrastructure are critical sectors as these are primarily responsible for the creation of employment opportunities. Manufacturing forms 17% of India’s GDP and there is a recognition that this needs to increase to at least 25%, which is the ratio for other global comparable economies. Overall, this was an excellent Budget which is growth-oriented and aims to set India on the right course. Continual reforms have been a priority for the current government and bringing in measures in ease of doing business, development, jobs, and a stable tax regime will help India achieve investor confidence and sustained economic growth. The government’s consistent and visionary steps make it very apparent that India continues to be on course to be a $5 trillion economy by 2025. (The author is the VC &amp; CEO of HDFC Ltd.)

On the right course – a growth-oriented Budget

Drone-as-a-Service (DaaS) player <keyword id="4610420" type="General" weightage="100" keywordseo="garuda-aerospace" source="Orion">Garuda Aerospace</keyword> on Monday said it has raised $22 million as Series A funding. According to Garuda Aerospace, the funding round was led by <keyword id="6357097" type="General" weightage="50" keywordseo="venture-capital" source="Orion">Venture Capital</keyword> firm <keyword id="15395438" type="General" weightage="80" keywordseo="sphiticap" source="Orion">SphitiCap</keyword> which invested $12 million along with participation from other global investors, angel investors and high net worth individuals (<keyword id="50379" type="General" weightage="50" keywordseo="hni" source="Orion">HNI</keyword>) at $5 million. Another $5 million in funding from an infra-development company, a group of HNIs and angel investors from <keyword id="3658" type="General" weightage="20" keywordseo="india" source="Orion">India</keyword>, <keyword id="6358356" type="General" weightage="20" keywordseo="uae" source="Orion">UAE</keyword> and Singapore was secured by the startup earlier. The company will use the funds raised for scaling up and research and development for building advanced drone solutions for the armed forces in collaboration with global companies for the defence and aerospace sector. The funds will also be used for the skilling and training of drone pilots and help create employment with deepening its footprints in <keyword id="142845" type="General" weightage="50" keywordseo="tier-ii" source="Orion">Tier II</keyword> and III cities. Speaking on the funding <keyword id="6037355" type="General" weightage="50" keywordseo="agnishwar-jayaprakash" source="Orion">Agnishwar Jayaprakash</keyword>, Founder and CEO said: "Garuda Aerospace aims to sell 25,000 drones in the next 18 months and is looking forward to exporting 10,000 drones to about 100 countries in the next 15 months." Pallav <keyword id="255172" type="General" weightage="50" keywordseo="kumar-singh" source="Orion">Kumar Singh</keyword>, Managing Partner, SphitiCap said: "Given the evolving preferences and horizontal expansion with the usage of drones in several sectors, there is a vision of promising growth beneficial for both companies. With this, drones will be playing a major in nearly every sector in the future." SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/news/rupee-falls-17-paise-to-82-75-against-us-dollar/articleshow/97854523.cms">Rupee falls 17 paise to 82.75 against US dollar</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/thelife/news/with-millet-kulhads-you-can-now-drink-your-tea-eat-the-cup-too/articleshow/97853752.cms">With millet kulhads, you can now drink your tea &amp; eat the cup too</a>

Drone player Garuda Aerospace raises $22 mn from SphitiCap & others

<ul class="summary-list"><li><keyword id="560055" type="ORGANIZATION" weightage="60" keywordseo="Value-investing">Value investing</keyword> consists of finding and buying stocks that are priced below their companies' intrinsic worth, or true value. </li><li>The value investing approach involves researching a company's fundamentals, examining its earnings and assets in relation to its stock price.</li><li>Though eclipsed lately by flashier <keyword id="6690775" type="UNKNOWN" weightage="60" keywordseo="Growth-investing">growth investing</keyword> strategies, value investing remains a good way to diversify and hedge against losses.</li></ul>Value investing is an investment strategy that involves buying stocks that are underpriced compared to market averages. Rather than targeting the most hyped or best-performing equities, it seeks out neglected stocks in the hope that the market will realize the errors of its ways and belatedly start to push up those shares' prices.Value investing has long been used by investors seeking to find bargains that eventually provide a big return, but it has become less profitable in recent years. However, by allocating a proportion of your portfolio to value stocks, you may be able to hedge your risks and cushion losses during downturns.<h2>What is value investing?</h2>As its name suggests, value investing is about finding, researching, and buying investments that are priced below their intrinsic worth - their true value."Value investing usually means a style of investing that looks for companies that seem truly unloved. These companies tend to be in undesirable or slow-growing areas, with a low price relative to recent profits and their ratings appear much lower than the market average," says Susannah Streeter, a senior investment and <keyword id="31671" type="CITY" weightage="100" keywordseo="markets">markets</keyword> analyst at <a href="https://www.hl.co.uk/" target="_blank" rel="noopener">Hargreaves Lansdown</a>.The strategy was <a href="https://www8.gsb.columbia.edu/valueinvesting/about/history" target="_blank" rel="noopener">developed in the 1920s at Columbia Business School</a> by finance educators Benjamin Graham and David Dodd, who both believed the intrinsic value of a stock should be determined through research of the company's fundamentals, not the anticipated reactions of the market.Among Graham's most well-known students? Warren Buffet, who made his fortunes by being a loyal practitioner of value investing. At its core, value investing is all about buying low and selling high. In practice, the approach works under the premise that with enough patience, a company's intrinsic value and market value align, resulting in big future gains. <h2>Value investing vs. growth investing</h2>Value investing is more or less the flip side of <a href="https://www.businessinsider.com/growth-investing-definition-strategies">growth investing</a>. Rather than buying companies whose stock is already rising fast, value investors buy companies that are cheap because other investors have decided they aren't worth much.Growth investors tend to be younger with a bigger appetite for risk, while <a href="https://www.cbs.dk/files/cbs.dk/paper_laurentcalvet.pdf" target="_blank" rel="noopener">value investors are proportionally more likely to be older</a>. They also tend to possess higher financial and real estate wealth, indicating that they don't need to take so many risks on growth stocks. And because value investors are often closer to retirement or retired, they usually prioritize a steady income over quick gains, focusing on stocks that also provide dividend payments in addition to being undervalued.<h2>Evaluating a company's intrinsic value</h2>There are many metrics investors use to determine the intrinsic value of a stock, all of which deal with scrutinizing company accounts, in order to unearth financial information which indicates that a company's stock price isn't an accurate assessment of its overall worth.As a starting point, beginner investors seeking value can look at:<ul><li>Price-to-earnings ratio: the ratio of a company's share price to its earnings per share</li><li>Price-to-book ratio: the ratio of a company's share price to its book value (its assets minus liabilities)</li></ul>"The value investing approach relies heavily on company accounts and trying to establish the value of a company compared to its current price. The price-to-earnings ratio is a key indicator as is the book value of a firm's assets," says Streeter.While average price-to-earnings ratios will vary over time, the <a href="https://ycharts.com/indicators/sp_500_pe_ratio" target="_blank" rel="noopener">S&amp;P 500's P/E ratio passed 30 in 2020</a>, meaning that you'd spend $30 for every $1 of profit the companies in the index earn (on average). It had been just above 20 in 2019 and was as low as 13 in September 2011. However, Streeter says that the subtle art of identifying value stocks has become harder in recent decades, largely because company assets have become more intangible in a digital, information-based economy."Instead of factories and machinery, today's valuable assets are more likely to consist of data sets, software, brands, and even ideas. Not accounting for these could throw investors off the scent of stocks with great scalability potential or could lead them to snap up what they see as bargain value stocks with little prospect of recovery," she adds.When investing for value, it's also important to learn how to distinguish between companies that have been neglected because the markets have made a mistake and those that are neglected because they're in serious trouble."The key thing when choosing value stocks is to make sure they've not been priced cheaply because they're on their way to bankruptcy. Check their debt levels, how much free cash flow they have, and also their price-to-book ratio, which tells you how the share price compares to the value of the company's assets," says Glen Goodman, an investment expert and former TV business correspondent. <h2>How to find value stocks</h2>As with equities investing in general, you have two main options for investing in value stocks.Your first option is to identify value stocks yourself and invest in them individually. You can do this using one of the many <a href="https://www.businessinsider.com/personal-finance/what-are-the-best-investment-apps?r=US&amp;IR=TIR=T" target="_blank" rel="noopener">investment platforms or apps</a> now available, such as Robinhood, Betterment, Fidelity Go, Acorns, Investr, E*TRADE, and so on. Alternatively, you can also use <a href="https://www.businessinsider.com/personal-finance/best-online-brokerage" target="_blank" rel="noopener">an investment broker</a>, such as Fidelity Investments, TD Ameritrade, and Charles Schwab. Secondly, you could invest in one of the many mutual funds or ETFs which target value stocks. Some of the largest, in terms of assets under management.Value ETFs:<ul><li>iShares Select Dividend ETF</li><li>iShares MSCI EAFE Value ETF</li><li>Utilities Select Sector SPDR Fund</li><li>Vanguard Utilities ETF</li><li>Vanguard Energy ETF</li><li>Invesco KBW Bank ETF</li><li>Fidelity MSCI Utilities Index ETF</li></ul>Value mutual funds:<ul><li>Bridge Builder Large Cap Value</li><li>T. Rowe Price Small-Cap Value</li><li>Vanguard Equity Income Fund</li><li>Dodge &amp; Cox Stock</li><li>Eaton Vance Focused Value Opportunities Fund</li><li>Vanguard Windsor II Fund </li></ul>Assuming that you have found a genuine value stock, investing in it should ultimately result in profits somewhere down the line. If a stock is currently priced at $20, but you've calculated that it should be priced at $80, then you'll make $60 merely by holding it and waiting for the market to catch up with reality.This may take several, even many years to happen, but this is essentially how such famous investors as <keyword id="6358963" type="DEFINITION" weightage="60" keywordseo="Warren-Buffett">Warren Buffett</keyword>, <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-charlie-munger-12-best-quotes-2020-5-1029210949" target="_blank" rel="noopener">Charlie Munger</a>, Seth Klarman, and Joel Greenblatt have made their names over the years. The strategy does involve patience and perseverance. But if you've carefully weighed up a company's fundamentals, then you should be able to hold firmly to the assurance that the market will, sooner or later, realize its fair value.<h2>Tips for investing for value</h2>Value investing used to be a dependable and safe strategy for growing your assets steadily over time. But this has changed substantially in recent years, as the market and economy have shifted to an increasing focus on growth stocks and the companies issuing them."The main reason value has under-performed lately is that many financial stocks have been languishing ever since the 2008 financial crash, while the big <a href="https://www.businessinsider.com/how-to-invest-in-tech-stocks">tech stocks</a> have been conquering the world," says Glen Goodman.That said, there are a number of principles an investor should adopt if they want to increase their chances of making a profit when value investing.Strike a balance: Diversification is possibly the most important strategy any investor can take, regardless of their particular focus. The same goes for value investing, which should be viewed as a means to diversify, rather than a standalone strategy in its own right."Adding value-investing into your mix will not necessarily make you more profitable, but it may … help smooth out your investment returns. For example, if you invest half in growth stocks and half in value stocks, when the big tech stocks plunge, your growth portfolio could take a big hit, but your value stocks may outperform, helping to cushion the blow to your overall portfolio," says Goodman.Focus on research: Value investing is the one area where research of a company's fundamentals is absolutely necessary. With growth investing you really can follow the herd almost, but the whole idea of value investing is that you're spotting something others have missed, so it implies a considerable amount of research and homework.This means poring over a company's financial statements, its balance sheet, its assets, its liabilities, its returns, its growth, and so on.Be patient: As mentioned above, the likes of Warren Buffett and Charlie Munger profited from value investing by holding onto value stocks for years, with <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-switched-cherry-coke-pepsi-neighbor-don-keough-2019-11-1028727422" target="_blank" rel="noopener">Buffett holding Coca-Cola for 32 years now</a>. It really is a long-term strategy, so don't buy value stocks unless you're prepared to sit tight and wait. This implies shrugging off slow growth, as well as resisting the urge to sell up and splurge on some seemingly more attractive growth stocks. Be prepared to buy the dip: Returning to Buffett, it's worth noting that he bought his shares in Coca-Cola following the 1987 stock market crash. This is a tactic used widely by value investors, who pounce on market crashes to buy otherwise strong stocks on the cheap. As such, it may be worth holding some cash in reserve for just this possibility.<h2>The financial takeaway</h2>At the present moment in history, value investing has become more of a supplementary strategy, one which will help <a href="https://www.businessinsider.com/what-is-diversification" target="_blank" rel="noopener">diversify</a> your portfolio and hedge against risk. It has demonstrated good results in past decades, but the market focus on fast-rising growth stocks now means that some apparently underpriced stocks don't ever rise to their "real" value.Nonetheless, it may still be worth investing in stocks that truly are undervalued compared to the rest of the market, although you will need to do your research. At the same time, the dominance of tech and other growth stocks may run its course, so it's probably wise to keep value investing in your toolkit."No sector and no strategy outperforms forever, so at some point, value is sure to have its day in the sun once again," says Glen Goodman.<h2>Related Coverage in <a href="https://www.businessinsider.com/investing-reference" target="_blank" rel="noopener">Investing</a>:</h2><h3><a href="https://www.businessinsider.com/what-is-common-stock" target="_blank" rel="noopener">What is common stock? The most typical way to invest in a company and profit from its growth</a></h3><h3><a href="https://www.businessinsider.com/how-to-diversify-portfolio" target="_blank" rel="noopener">How to diversify your portfolio to limit losses and guard against risk</a></h3><h3><a href="https://www.businessinsider.com/how-to-invest-in-penny-stocks" target="_blank" rel="noopener">How to invest in penny stocks: a guide for beginners</a></h3><h3><a href="https://www.businessinsider.com/passive-investing" target="_blank" rel="noopener">Passive investing is a long-term wealth-building strategy all investors should know - here's how it works</a></h3><h3><a href="https://www.businessinsider.com/what-is-a-self-directed-ira" target="_blank" rel="noopener">A self-directed IRA gives you control over a greater choice of investment options, but it also means more responsibility and risks</a></h3>

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