What Indian ETFs are people investing in?

mda99das

Long term I feel India has fantastic growth potential. The Rupee is weak at the moment but long term 20 yrs I can see this strengthening. What Indian ETFs or funds are people looking at? ICICI bank allows some direct exposure via mutual funds. Does anyone have any opinions?

masonic

I'll preface this by saying I get my India exposure solely from All-world index funds and broader emerging market funds.

Other than the cheap Franklin FTSE India ETF (FRIN), it's rather expensive to get exposure by this route. Have you considered an investment trust, like JP Morgan Indian IT (JII)? The ongoing charge is comparable to the other ETFs and it has a pretty good reputation. Currently at a ~17% discount to NAV.

ColdIron

Don't confuse the Indian economy with Indian markets (publicly tradeable companies)

While the Indian economy does look to grow, and people may have more money in their pockets, will that translate into people buying from Indian companies over foreign ones?

Why an ETF rather than a fund or Investment Trust? What benefit do they provide to you that the others do not?

wmb194

As mentioned, there are a few investment trust options. Reading the commentary in their annual reports might be worthwhile.

https://www.theaic.co.uk/aic/find-compare-investment-companies?sec=IND&sortid=Name&desc=false

aroominyork

I think Stewart Investors are knowledgeable and with a solid record in this part of the world, so look at Stewart Investors Indian Subcontinent Sustainability.

ispookie666

FRIN for me, I recently sold it. FRIN has pretty much all the important companies from Nifty.

I do invest in India directly hence sold it. I feel India is over valued currently 

Abbyyy

Popular Indian ETFs include Nifty 50 ETF and Sensex ETF, tracking the benchmark indices Nifty 50 and BSE Sensex, respectively. Additionally, investors are keen on sector-specific ETFs like Nifty Bank ETF, Nifty IT ETF, and Nifty Pharma ETF, providing exposure to specific industries. Bharat Bond ETFs offer a unique avenue for fixed-income investors, focusing on government bonds. These ETFs are favored for their cost-efficiency, liquidity, and diversification benefits, attracting a broad spectrum of investors seeking exposure to India's dynamic and growing markets.

Voyager2002

I invest in India, but via an Investment Trust that provides active management.

Most of the research demonstrating the superior performance of passive investment (that is, ETFs and so forth) was conducted in the USA and in other 'mature' markets. In an economy such as India or Russia I believe that active management is likely to offer benefits.

mda99das

That is true, from India you can get exposure to Russia and the prices are dirt cheap atm. The war will blow over and be in the past in 20 yrs, enough to make decent gains on a small exposure.

JohnWinder

Voyager2002 said:

Most of the research demonstrating the superior performance of passive investment (that is, ETFs and so forth) was conducted in the USA and in other 'mature' markets. In an economy such as India .. I believe that active management is likely to offer benefits.

Most, but not all. The SPIVA research on emerging market equity markets finds 70-95% of GBP active funds underperformed their benchmark after 3-10 years. https://www.spglobal.com/spdji/en/spiva/article/spiva-europe/
So, likely to offer benefits, but hasn’t recently in the absence of better evidence.