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Global funds choose Indian equities
By agencies
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Tuesday, 06 December 2005, 20:30 IST
KOLKOTA: Global funds, which are usually meant for investments in developed markets, are being used to buy Indian equities.
Indian equities, which have lately diversified into non-emerging market funds on the basis of Morgan Stanley Capital International (MSCI) weightage with a token presence of 2-3 percent of the overall portfolio, are now figuring prominently in certain global funds.
Morningstar,a fund research organization said, lately Indian stocks are cropping up with increasing regularity in non-emerging market funds. At the top of the list is Janus Contrarian Fund, a fund that typically invested within the U.S., has devoted 21 percent to Indian stocks. Janus Overseas, another fund from the same stable, also has substantial exposure to Indian stocks.
Morningstar has recently created a new category - India Equity - for monitoring and analyzing. The new category consists of more than 40 fund classes. Most of these funds have come up in the last three years.
Greater focus on Indian equities is becoming evident, as new India-specific equity funds are being created or marketed among new sets of investors. In the last couple of months, a Dublin-domiciled fund - India Opportunities Fund - with 35-stock portfolio, has evinced good response. A first Australia-managed Fidelity fund is now raising money for exclusive investment in Indian equities.
Industry watchers said Asian funds have also increased India exposures because of higher return. Platinum Asset Management's Asia Fund with 30 percent exposure in India stocks is an example. The other example is Aberdeen Asian Opportunities Fund, which has devoted 16.15 percent to Indian equities.