iShares MSCI India ETF (INDA), Consolidate Infrastructure Group
Banking on fantastic growth potential
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.