The Claymore/BNY BRIC (EEB) that invests in Brazil, India, China and Russia has been a strong performer so far this year, up 21%. Many investors consider India to be the most secure of the BRIC countries, says Fred Fuld for Stockerblog. There are a few theories on why this is.
For one, India has a more stable government than Russia, according to Jennifer Openshaw for TheStreet.com. Also, most Indian citizens are bilingual (if not trilingual or more) when it comes to English, which is another advantage over other BRIC countries. This might be a reason why it has such strong service economy in areas such as product design, engineering and accounting. Other factors boosting India’s economy include credit growth, wage increases for skilled workers, record industrial capital utilization rates and more imports.
If you’re looking to invest in India, you have a couple of other options besides EEB. There’s the iPath MSCI India ETN (INP), which is up 18% year-to-date and the closed-end fund India Fund (IFN), up 0.2%. Before investing in India funds, ensure they fit with your investment strategy and know the risks.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. 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.