India’s economic growth is one of the world’s fastest paced right now, and iPath MSCI India Index Exchange Traded Note (INP) gives a direct path to access this wealth. INP began trading the end of 2006 and is up 11.8% so far this year. Three key factors will drive the average annual GDP growth rate of 6%-7% over the next three years: population, outsourcing and investment. Bombay’s main stock market has since recovered from the February cool off, and its main stock market gage rose 47% last year alone, reports Trang Ho for Investor’s Business Daily.
Another way to invest in India using exchange traded funds (ETFs) is through First Trusts’ recently launched Chindia (FNI). The 50 companies in its basket are split between China and India. Carl Delfeld for ETFXRAY.com reports the ETF has a bit of a different weighting scheme. The top three companies (for each country), based on liquidity, are weighted at 7%, the next three at 4%, the following three at 2%, with the remaining equally weighted in the basket.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.