Should Jio Financials be part of your portfolio for 3-5 years? Sunil Shah answers

economictimes.indiatimes.com:

«This is a big step from the entire group of Reliance Industries, having been successful on the retail and the telecom piece, they have really got on the retail side of the country's demand significantly,» says Sunil Shah, Veteran Fund Manager.Have you looked at the scheme of arrangement at Reliance Industries just for the sake of understanding the business model, their foray in Jio Financial and the way the stock has been? Jio Financial, of course, value will be decided but will you look at it later?This is a big step from the entire group of Reliance Industries, having been successful on the retail and the telecom piece, they have really got on the retail side of the country's demand significantly. And as a country, as we progress from about $2800 per capita to about $5000 over the next six-year journey, I think finance itself is going to be a big part of Indian consumer spend.Leverage and borrowing is no longer a bad word.

So, as country's per capita increases, finance is going to play a big role and with tech penetration already there and everybody using mobile internet, etc, I think Reliance is going to use the data bank that they have on both retail as well as the telecom to penetrate finance and do much better. So, Bajaj Finance, which is like a four-and-a-half lakh crore market cap, maybe it took about eight-ten years for them to really do a lot of things on the fintech side and that has set a platform for Reliance to get into now.

So, it is going to be very interesting. The space will see a lot of products which will come for the consumers and Reliance given its strength and the way in which they do businesses, I think finance will see a lot of new things going forward.