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What Indian ETFs are people investing in?

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?

Comments

  • masonic
    masonic Posts: 25,792 Forumite
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    edited 23 December 2023 at 11:59AM
    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
    ColdIron Posts: 9,649 Forumite
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    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
    wmb194 Posts: 4,362 Forumite
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    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
    aroominyork Posts: 3,182 Forumite
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    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
    ispookie666 Posts: 1,194 Forumite
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    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 
    “Don't raise your voice, improve your argument." - Desmond Tutu

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  • 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
    Voyager2002 Posts: 15,952 Forumite
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    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
    mda99das Posts: 180 Forumite
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    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
    JohnWinder Posts: 1,862 Forumite
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    edited 29 December 2023 at 9:00AM
    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.


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