Tourism's on a high, but the stocks are not

Growth story The industry's contribution to GDP is expected to grow 7-9% annually between 2019 and 2030.

- Dipti Sharma

India's tourism sector has been on a recent high, buoyed by three elements integral to Indian culture: religion, cricket, and music.

To be more specific, the once-in-a-lifetime Maha Kumbh Mela; the Indian cricket team's recent success, including the Champion Trophy title it won on Sunday; and concerts headlined by the likes of Diljit Dosanjh, Bryan Adams, Ed Sheeran, and Coldplay.

But while both industry and market experts are optimistic about the prospects of India's travel and tourism sector, the Nifty India Tourism index has lost more than 9% over the past three months, according to Capitaline data. And there are only two passively managed funds providing exposure to India's travel and tourism boom—one from Kotak Mutual Fund and the other from Tata Mutual Fund.

What gives?

On the index's decline, market experts blamed it on the wider market correction, assuring that the sector holds much potential for investors.

So why aren't there more funds dedicated to India's travel and tourism segment?