India is the best bet in emerging markets, according to Mr. Mark Mobius
- IBEF
- September 29, 2023
Mobius Capital Partners is more positive than ever on India and sees it as the best spot to invest in emerging economies. "We believe that the opportunities in India are terrific and the whole picture is so positive that it doesn't make sense to reduce holdings in India," Mr. Mark Mobius said.
The fund's current allocation to India is 20%, the highest ever. Over the last five years, the average weight has been in the 5-10% range.
He feels that India is the best place for global investors wanting exposure to emerging countries to invest. Persistent Systems is one of Mobius Capital's recent investments in India. Furthermore, it maintains stakes in Metropolis Healthcare and APL Apollo Tubes.
While the company is exploring other software companies, it is particularly interested in hardware startups. Mr. Mobius believes that Indian hardware would thrive as it grows into a significant maker of semiconductors and other technology hardware. The fund is keeping a close eye out for chances in recently listed technology firms, some of which do not match the return on capital criteria of at least 20%.
According to Mr. Mobius, the United States is presently at the apex of the interest rate cycle, as the Federal Reserve is unlikely to raise interest rates. He linked this to the fact that America's money supply growth rate has slowed dramatically. Hence, it does not make sense for investors in the long term, in a period of three to five years, to reduce holdings in India unless they are devoid of cash,” added Mr. Mobius.
The Indian bond market is booming, and the country's participation in JP Morgan's index will benefit some institutions. Bonds and bank bonds are likely to perform well in the future, according to Mr. Mobius.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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