Morgan Stanley IM: Investment Outlook for Indian Retailers

The retailing space in India offers a sizable investment opportunity given growing discretionary spending, low market penetration and growing consumer aspirations, all set against an unorganized, unlicensed backdrop that continues to evolve. However, it won’t be easy to determine winners given the consumer’s value mindset and the operational challenges of dealing with cultural diversity and geographical complexity. In the end we believe only a resilient few will emerge from the detritus, but they will be the ones to generate disproportionate higher returns.

^{RISK CONSIDERATIONS
There is no assurance that a portfolio will achieve its investment objective. Portfolios are subject to market risk, which is the possibility that the market values of securities owned by the portfolio will decline and that the value of portfolio shares may therefore be less than what you paid for them. Market values can change daily due to economic and other events (e.g. natural disasters, health crises, terrorism, conflicts and social unrest) that affect markets, countries, companies or governments. It is difficult to predict the timing, duration, and potential adverse effects (e.g. portfolio liquidity) of events. Accordingly, you can lose money investing in this portfolio. Please be aware that this portfolio may be subject to certain additional risks. In general, equities securities’ values also fluctuate in response to activities specific to a company. Investments in foreign markets entail special risks such as currency, political, economic, market and liquidity risks. The risks of investing in emerging market countries are greater than the risks generally associated with investments in foreign developed countries.}