There are so many regional emerging-markets funds out there it can be difficult to pick a good one. But Hargreaves Lansdown’s Mark Dampier is clear – you should be looking to India. It is a lot less reliant on exports than other developing markets, making it a “domestic story, and one that I believe looks very strong over the long-term”. As for a fund, he likes Jupiter India.
It was launched in early 2008 and has grown by 67% since. Fund manager Avinash Vazirani has “an impressive track record”, says Mike Stringer on Seeking Alpha. When he managed the Peninsular South Asia Access Fund for BNP Paribas, he grew it by 1,437% over ten years. “He has a long and proven track record of consistently outperforming the benchmark.” Vazirani believes Indian shares are often dismissed as too expensive. But that ignores “the tremendous earnings growth being shown by many Indian companies”, says Dampier.
India has a rising middle-class population due to increases to minimum wages. On top of this around half the 1.13 billion population is under 25, giving the potential for a dynamic nation to emerge over the coming decade. So “the potential for economic growth in India for the next 15 years is far greater than the last 15”.
In summary, “for investors looking for a long-term growth story and able to accept the risks, I believe India is compelling, and Jupiter India could be a great route into the market”, says Dampier.
The fund has an initial charge of 5.25%, but you can reduce this if you invest in the fund via a fund supermarket.
Contact: 0844-620 7602.
Jupiter India Fund top ten holdings
| Name of holding | % of assets |
|---|---|
| Godfrey Phillips India | 4.89 |
| Opto Circuits Ind | 4.11 |
| Cairn India | 3.71 |
| Rural Electrification Corp. Ltd | 3.61 |
| Infosys Technologies | 3.42 |
| Bharti Airtel | 2.93 |
| Nestle India | 2.93 |
| ICICI Bank | 2.57 |
| Punjab National Bank | 2.20 |
| Fortis Healthcare | 2.18 |