iShares MSCI In­dia ETF (INDA), Con­sol­i­date In­fra­struc­ture Group

Bank­ing on fan­tas­tic growth po­ten­tial

Finweek English Edition - - INSIDE -

TSHEPO MODIBA, of Ser­iti As­set Man­age­ment, made an i nter­est­ing com­ment to me re­cently when he said that what com­modi­ties re­ally needed was for In­dia to come to the party and es­sen­tially do what China did. This would in­volve mas­sive growth cou­pled with mas­sive com­mod­ity de­mand. Modiba fur­ther com­mented that he cer­tainly felt that In­dia could re­place China as the world’s growth en­gine, but it’s not as­sured.

He was fo­cus­ing on com­modi­ties, but his com­ments got me think­ing about In­dia in gen­eral. I t has the sec­ond- l argest pop­u­la­tion and the sev­enth- l argest econ­omy in the world, with ex­pected GDP growth above 7%. Fur­ther, the In­dian econ­omy is pre­dom­i­nantly agri­cul­tural and, as was the case with China, this is shift­ing into ser­vices.

For those want­ing to in­vest in In­dia, the only route re­ally is an ex­change-traded fund (ETF) and while we have none for I ndia l ocal l y, we do have a f ew in­ter­na­tion­ally (th­ese will re­quire an in­ter­na­tional bro­ker­age ac­count).

INDA is­sued by Black­Rock aims to cover 85% of the In­dian stock mar­ket track­ing the MSCI In­dia To­tal Re­turn In­dex. In­for­ma­tion tech­nol­ogy and fi­nan­cials make up just over 40% of the in­dex, with con­sumer goods, health­care and en­ergy an­other 10% each. With In­dia’s growth po­ten­tial, this ETF is well worth con­sid­er­ing.

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