David Brenchley Sunday October 10 2021, 12.01am, The Sunday Times
With a population of 1.4 billion, a rising middle class and some of the fastest-growing companies in the world, India has long been touted as the next great place to hunt out stellar investment returns.
In particular it is seen as an alternative to China, particularly for investors who are concerned about human rights abuses.
But India has been ravaged by the pandemic and its volatile stock market is not for the faint-hearted. So how much of your money should you have invested there?
MSCI India, an index that tracks the country’s 101 largest businesses, has risen 43.7 per cent in the past 12 months — almost double the return from its US counterpart. The Sensex index of top Indian shares has more than doubled since last year’s March lows. It is up 22 per cent since the start of the year and hit 60,000 points for the first time last week…
For investors looking to move investments away from China but who still want to back a fast-growing economy, India is an attractive option…
Businesses in India have relatively high valuations, compared with other emerging market nations, but the Indian stock market can be very turbulent. Falls of between 20 per cent and 30 per cent are not unusual…
Jayna Rana from the research firm QuotedData favours the £139 million India Capital Growth fund, an investment trust that holds shares in small and medium sized companies. It’s the best-performing Indian investment trust over the past year but the share price remains 10 per cent lower than its assets, so is a potential bargain. Its biggest investments are Federal Bank and Emami, a consumer goods brand owner.
Read more here