This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

India's Bull Market Is a Better Bet for Your Investment Dollars

Markets and stock trade on expectations, and expectations for India are optimistic once again, as demonstrated by the recent performance of the Bombay Stock Exchange which is up more than 20% since the beginning of the year. According to Franklin Templeton Investment's chair Mark Mobius, India is in a bull market that he predicts is likely to continue for some time. He expects inflows from foreign institutional investors into India could double in the next year given the revolutionary changes occurring in the country.

Ways to Invest in India

I have significantly increased my investment exposure to India. It is difficult to invest in individual stocks on the Bombay stock exchange and there are only about 20 stocks that trade as ADRs on U.S. exchanges. So I am opting to gain broad India market exposure through the utilization of exchange-traded funds, closed-end funds or mutual funds.

One mutual fund I like is the Matthews India Investor Fund (MINDX).

Here are the top ten holding for the fund, which currently holds a total of 32 names:

  1. Emami Ltd. 6.58%
  2. Kotak Mahindra Bank Ltd. 5.29%
  3. ITC Ltd. 5.14%
  4. Gujarat Pipavav Port Ltd. 4.47%
  5. HDFC Bank Ltd 4.46%
  6. Dabur India Ltd. 4.35%
  7. Info Edge (India) Ltd. 4.22%
  8. AIA Engineering Ltd. 4.13%
  9. Exide Industries Ltd. 4.07%
  10. Sun Pharmaceuticals Industries Ltd. 3.89%

Only one of this fund's top ten holdings trades as an ADR on a U.S. exchange, and that's HDFC Bank (HDB).

There are also several ETFs that track the Bombay Index such as the Barclays Bank Plc iPath MSCI India Index ETN (INP).

INP Chart
data by YCharts

Morgan Stanley also has a closed-end fund that invests in India companies (IIF).

IIF Chart
data by YCharts

These are just a few of the vehicles I am utilizing with my clients to gain exposure to the investment opportunities in India. Given the limited opportunities available in the U.S. markets this year, it makes sense to pursue superior prospects abroad in order to bolster investment returns. 

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

DISCLOSURE: I am currently long MINDX, INP, and IIF
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FB $104.25 -1.10%
GOOG $743.96 -0.84%
TSLA $230.35 -0.54%
YHOO $33.81 2.60%
AAPL $118.48 0.57%


Chart of I:DJI
DOW 17,719.92 -78.57 -0.44%
S&P 500 2,080.41 -9.70 -0.46%
NASDAQ 5,108.6660 -18.8590 -0.37%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs