Investing in India

[tickerjunkie]

I'm thinking of investing in India by way of an investment trust, having read an upbeat Daily Reckoning report on the country's prospects.

I appreciate that it's a high-risk venture but I have read plenty of 'pros'. I just wanted to hear a few 'cons' outside of the usual baggage that goes with an emerging market, so your comments would be welcome.

 

[ewilcox]

Probably volatility is your main enemy. I think you may have missed the boat with India anyway. A much more interesting possibility though is China. All IMHO.

 

[tickerjunkie]

That's what kills me about this game: the Daily Reckoning suggested we've missed the boat with China and should focus on India...

AAAAAAARGHHHHH!!!!!

Ah well, back to the FTSE All-Share list and a pin

 

[Rainmaker]

I think the only major listed Indian investment trust is the JP Morgan Fleming India Investment Trust. Seems to have risen a lot over the last couple of years. My humble suggestion would be to dripfeed money in rather than making a lump sum investment.

 

[anley]

I agree with Rainmaker, drip it in.

And if I was going to invest a large amount I'd try and split it across as many different funds as I could. You could also buy the Indian ETF (I think there's one) but then this would be in $ which may or may not help.

 

[PeterTT]

JII LN (JP Morgan India Investment Trust) has been one of my best holdings over the last 18 months .. Its discount to nett asset value is near enough flat (it was about 20% when I first bought some) so I would wait until it widens out again. I would love to be able to invest in a fund that tracks the Shanghai A share index but I cannot find any. This index has just had a large upside move on a weekly candle chart at some important support levels. The most common way of getting Chinese exposure in a stock portfolio seems to be through Hong Kong shares, but theses have been going up for quite a while, whereas the Chinese stocks have only hust started to perform after 4 down years! As Rainmaker says I would favour a long term drip feed approach to India now .. infact I would say most Far East markets are going to be the main growth areas over the next generation.

 

[tickerjunkie]

Thanks for your help, folks. The JP Morgan Trust is the one I have my eye on and in some ways I have nothing to lose.

My kids have been left £500 in a will and for what a sum that size will make in building society interest over the next 10 years, I might as well be a bit more adventurous. I think £500 is JPM's minimum investment, so I might just go for it.

Those guys at The Daily Reckoning[/I might be bearish by nature but they do seem to talk more sense than Greenspan & Co.

 

[shopan]

Are there any other trusts or trackers that are linked to India that one can drip feed money into?