Fund of the week: Impressive profits from India

It's been a good year for investors in India, and this week's fund of the week is up 92% over one year. But can it keep rocketing?

It's been a good year for investors in India. The stockmarket is up 88% over one year against a 63% return for the Chinese stockmarket. First State Indian Subcontinent Fund has kept pace: it's up 92% over the same period. But can it keep rocketing?

"We're relatively cautiously positioned", says David Gait, the fund's manager. A lot of hot money has piled into the market, which should be a warning to investors. "A third of foreign inflows into India last year were through ETFs, which means there is a lot of lower-quality capital with shorter time horizons." Valuations are not what they were, which means you have to look "off piste" for attractive companies.

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Bharti Airtel5.7
Hindustan Unilever Ltd5.6
Marico5.4
Tata Power Co5.2
Dabur India4.3
Housing Development Finance Corp3.8
Acc Ltd3.4
Infosys Technologies3.4
Nestl India3.3
Thermax Ltd2.1
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