This stock market beats the United States, China, United Kingdom, Europe and Japan. | Personal Finances | Finance


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Everyone loves Indian summer, especially investors, and many are cramming into the country’s scorching stock market. Indian stocks have risen 53.70% in past 12 months, according to MSCI. Investors are making a fortune.

The Indian stock market is ahead of China, where stocks fell 5% in the year ending Aug.31.

It even overtook the supercharged United States, despite Wall Street growing 31.86% as of Aug.31.

The UK has grown 27.28% in one year, but also trails. The same goes for Europe, despite growth of 29.84%, and Japan, up 20.36%.

Global stock prices have skyrocketed in the wake of the pandemic, but India has beaten them all. Investors may want to check their portfolios to see if they are exposed to the economic strength of the country.

Past performance is no guarantee of future returns and emerging markets remain volatile, but it looks like a great long-term prospect. opportunity.

India’s economy is doing well and recovered from the Covid pandemic much faster than expected, said Jason Hollands, managing director of Tilney Investment Management Services.

It has also benefited from Prime Minister Xi Jinping’s authoritarian crackdown on the Chinese private sector in China.

“It pissed off investors and many Asian and emerging market fund managers looked to India instead,” Hollands said.

The pro-business government of Prime Minister Narendra Modi is determined to modernize the country by simplifying taxes and cutting red tape.

India is skyrocketing the World Bank’s annual “Ease of Doing Business” charts, from 142 when Modi came to power in 2014 to 63 today.

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Hollands said his public finances were in relatively good shape and that he is now embarking on a $ 1.35 trillion (£ 1 trillion) infrastructure program.

India is dependent on imported oil but seeks to be energy efficient by 2047, to mark the 100th anniversary of liberation from British rule.

Within six years, it will have overtaken China to become the world’s largest country in terms of population and has a growing middle class.

Hollands said, “By the end of the decade, India is expected to be the third largest consumer market in the world, after the United States and China. It is a great investment opportunity.

More cautious investors might spread their risk by investing in an Asian or emerging market fund, rather than a specialized fund in India.

“Aubrey Global Emerging Market Opportunities has a strong 43% exposure to India. It is up 14% year on year and 118% over five years.”

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For investors who want a pure Indian fund, Hollands advises the Ashoka India Equity Investment Trust, which has risen 73% in the past 12 months, or the Goldman Sachs India Equity Portfolio, which is up 50%.

Darius McDermott, managing director of Chelsea Financial Services, said India is one of his favorite emerging markets. “It has a good demographics with a young and highly educated population and the government is very business friendly.”

It assesses the sustainability of the Indian subcontinent from Stewart Investors and the Indian subcontinent from Alquity, both of which returned around 56% last year.

Alquity fund manager Mike Sell said the economic outlook for India is positive, but cautioned: “This assumes there is no deterioration in Covid and reasonable rainfall during the remainder of the monsoon season. “

As always, only invest money in stocks for at least five years, and preferably much longer to overcome short-term volatility.

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