Fund of the week: Buy into India's tremendous growth

If you're looking for an emerging market funds, you could do worse than look to India. And this fund is a great route in.

There are so many regional emerging-markets funds out there it can be difficult to pick a good one. But Hargreaves Lansdown's Mark Dampier is clear you should be looking to India. It is a lot less reliant on exports than other developing markets, making it a "domestic story, and one that I believe looks very strong over the long-term". As for a fund, he likes Jupiter India.

It was launched in early 2008 and has grown by 67% since. Fund manager Avinash Vazirani has "an impressive track record", says Mike Stringer on Seeking Alpha. When he managed the Peninsular South Asia Access Fund for BNP Paribas, he grew it by 1,437% over ten years. "He has a long and proven track record of consistently outperforming the benchmark." Vazirani believes Indian shares are often dismissed as too expensive. But that ignores "the tremendous earnings growth being shown by many Indian companies", says Dampier.

India has a rising middle-class population due to increases to minimum wages. On top of this around half the 1.13 billion population is under 25, giving the potential for a dynamic nation to emerge over the coming decade. So "the potential for economic growth in India for the next 15 years is far greater than the last 15".

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up


In summary, "for investors looking for a long-term growth story and able to accept the risks, I believe India is compelling, and Jupiter India could be a great route into the market", says Dampier.

The fund has an initial charge of 5.25%, but you can reduce this if you invest in the fund via a fund supermarket.

Contact: 0844-620 7602.

table.ben-table table { border: 3px solid #2b1083;font: 0.928em/1.23em verdana, arial, sans-serif;}

th { background: #2b1083; padding: 10px 5px;color: white;font-weight: bold;text-align: center;border-left: 1px solid #a6a6c9;}th.first { border-left: 0; padding: 5px 2px;text-align: left;}

tr {background: #fff;}

tr.alt {background: #f6f5f9; }

td { padding: 5px 2px;text-align: center;border-left: 1px solid #a6a6c9;color: #000;vertical-align: center;}td.alt { background-color: #f6f5f9; }td.bold { font-weight: bold; }td.first { border-left: 0; text-align: left;}

Jupiter India Fund top ten holdings

Swipe to scroll horizontally
Godfrey Phillips India4.89
Opto Circuits Ind4.11
Cairn India3.71
Rural Electrification Corp. Ltd3.61
Infosys Technologies3.42
Bharti Airtel2.93
Nestle India2.93
ICICI Bank2.57
Punjab National Bank2.20
Fortis Healthcare2.18