India ‘the most attractive emerging market for investing’

Earlier this week, it was reported in the Economic Times of India that India is now the most attractive Emerging Market for investing ahead of China – by Rob Brewis

The claim was backed by The Invesco Global Sovereign Asset Management report, which captured the views of 142 chief investment officers, heads of asset classes, and senior portfolio strategists from 85 sovereign wealth funds and 57 central banks. Collectively, these institutions manage about USD 21 trillion in assets.

I invest in both China and India as part of Aubrey’s emerging markets strategy, and have some strong views on this development:

“We were interested to read about the Invesco Global Sovereign Asset Management report suggesting that India pips China as the most attractive emerging market.  We would also be interested to know what the managers surveyed actually had invested in India.  We suspect they would still have significantly more invested in China courtesy of its larger index weighting.

At Aubrey, we have had approximately a third of our GEM fund invested in India since 2014, when the transformational Modi government took charge, and currently, it is above that level and our largest country weighting.  While the realisation that India is the most attractive emerging economy is now dawning on many more people, there is still plenty of investment flows to come as their portfolios catch up with this realisation.”

Rob Brewis, Fund Manager, Aubrey Global Emerging Markets Strategy at Aubrey Capital Management