Global Crosscurrents — Anchored in India, Empowered by Intelligence

Dear Investor,

Let’s take a step back. Every era of technological advancement has reshaped economies and redrawn the contours of wealth creation. From steam and electricity to the internet, each revolution has amplified productivity and unlocked new sources of value. Today, Artificial Intelligence (AI) stands as the defining catalyst of our time — one that is not only transforming industries but also reshaping global market dynamics.

The global economy, while avoiding a deep recession, continues to adjust to a slower structural growth path. Consensus forecasts from the World Bank and OECD place 2025 global GDP growth between 2.3% and 3.2%, constrained by the retreat from unfettered globalization, tighter capital, and persistent core inflation. Yet amid these global crosscurrents, AI has emerged as the new economic engine, driving innovation-led growth even in mature markets.

Since the launch of ChatGPT in November 2022, the S&P Kensho Artificial Intelligence Enablers and Adopters Index has surged from 163 to 458, delivering a 280% absolute return and a 44% CAGR — significantly outperforming the S&P 500, which gained 164% in the same period. This surge reflects how AI has become not just a technological evolution but a structural force of market performance. In 2025 alone, the AI Index is up 28% year-to-date, compared to 14% for the S&P 500, while MSCI Korea (+62%), China (+40%), and Taiwan (+30%) underscore Asia’s leadership in semiconductors and hardware, the foundational infrastructure of this digital revolution.

Behind this surge lies an unprecedented wave of capital expenditure by the global hyperscalers — Meta, Alphabet, Microsoft, and Amazon — whose collective Capex is projected to rise from USD 94 billion in 2020 to USD 325 billion by 2025. These investments form the backbone of AI — powering data centers, GPU networks, and large language model infrastructure. This Capex explosion represents the “new oil” moment of our century: data as the resource, compute as the refinery, and intelligence as the output.

The scale of this investment has triggered a powerful multiplier effect across global supply chains — semiconductors, cloud computing, and renewable energy — reinforcing AI as both a growth driver and a deflationary technological force. Recent capital flows into AI validate this transformation: OpenAI’s USD 40 billion mega round, Meta’s USD 14.8 billion investment in Scale AI, Microsoft’s USD 33 billion AI infrastructure commitments, and Nvidia’s USD 100 billion deployment toward OpenAI’s data centers highlight the depth of conviction behind this trend.

While global markets grapple with slower growth, India stands apart as a beacon of stability and acceleration. With GDP growth expected between 6.4% and 6.7% for FY 2025-26, India’s expansion is powered by domestic demand, corporate balance sheet strength, and a revived private capex cycle. This resilience positions India not merely as a participant but as a beneficiary of the global AI wave.

India’s digital infrastructure — UPI, Aadhaar, and the expanding data ecosystem — gives it a unique edge in AI adoption. A compelling example is Bajaj Finance, which has integrated AI deeply into its operations: voice bots generating ₹1,500 crore in loans, AI chatbots resolving 70% of service requests, and AI copilots enhancing developer productivity. Such transformations illustrate how AI can multiply scale and efficiency within India’s corporate ecosystem, turning technology into tangible business performance.

Yet, amid all technological shifts, the principles of wealth creation remain timeless. True success lies not in predicting every trend but in patiently participating in structural ones. Compounding — the process where your earnings begin to earn their own earnings — remains the single most powerful engine of long-term wealth. At PMS AIF WORLD, we continue to emphasize discipline over speculation, suitability over sales, and analytics over guesswork.

Our proprietary 5-P Framework (People, Philosophy, Performance, Portfolio, Price) and the QRC Scoring Model (Quality, Risk, Consistency) developed with IIM Ahmedabad embody this philosophy. They enable us to identify fund managers and strategies best positioned to capture both India’s enduring growth and the emerging opportunities of the intelligence economy. The confluence of two forces — India’s structural growth story and AI’s global acceleration — defines the next decade of wealth creation. As capital flows into data, infrastructure, and innovation, investors have the rare opportunity to participate in a twin compounding effect: one driven by India’s macroeconomic fundamentals, and the other by technology’s exponential scalability.

The world may be navigating multiple crosscurrents, but India remains the anchor — and intelligence, both human and artificial, is the wind behind its sails.

Our endeavors are to determine the Quality, Risk, and Consistency attributes (QRC). We present all data and analytics with an endeavor and the aim of informed investment decisions. If you are looking to invest and are not able to decide between PMS and Mutual Funds, or between PMS and Alternative investment funds, Book A Video Call with our experts.