This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

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

Stocks in this article: MINDX HDB INP IIF

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.

>>Read more: Mark Zuckerberg, Jailbird in Iran? Facebook Better Call Its Lawyers

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

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs