3 Top Rated India Funds

Want to add Indian equities to your investment portfolio? Consider these three top-rated funds favoured by Morningstar analysts

Emma Wall 24 November, 2015 | 11:30AM
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This article is part of Morningstar’s Guide to Investing in Asia where we navigate the potential risks for the chance of fantastic rewards from across the region.

India currently holds the accolade of ‘teacher’s pet’ when it comes to Asian equity investors. Fund managers at Henderson, Fidelity, Aberdeen and Barings have high conviction in the Indian stock market, thanks to geopolitical tailwinds.

India was one of the standout markets of 2014; great gains followed the May election of Prime Minister Narendra Modi – the first leader to preside over a majority party government in three decades. The end to 30 years of coalition, coupled with Modi’s strong economic policies and vigour for change meant investor sentiment around the world buoyed India’s stock market.

The run did not last, with many sectors disappointing this year – but fans of the region say this is a minor set-back, a buying opportunity, as the underlying demographics and political spirit remain.

Jupiter India

This Bronze rated fund is a compelling choice for higher-risk investors willing to take a long-term view on investing, according to Morningstar fund analysts.

Manager Avinash Vazirani has been investing in the Indian equity market for over 20 years and has run this fund since its inception in Feb 2008. The manager believes in conducting his own fundamental research, as well as using broker research to help find ideas. Analyst Amelie Thevenet has supported Vazirani since 2007. 

First State Indian Subcontinent

For investors interested in a high-quality, benchmark-agnostic approach to Indian equities, Bronze Rated First State Indian Subcontinent offers much, says Morningstar fund analyst Grant Kennaway.

The headline changes to portfolio managers over the past years are not as concerning as they appear. Vinay Agarwal takes primary responsibility for this strategy, having taken over from teammate Sashi Reddy, who continues to run the UK domiciled fund, in August 2012. The discerning, bottom-up, approach to stock selection quickly reduces the investable universe and means the fund is very benchmark unaware. This has stood investors in good stead so far, with returns far outpacing the benchmark and peers since Agarwal took charge as well as over the longer term.

Fidelity India Focus

This Silver Rated fund is one of the best Indian equities funds available, says Kennaway.

Portfolio Adviser Sandeep Kothari has been the key decision maker for this fund only since September 2013 but he’s a veteran of the Indian equities market, heading Fidelity’s onshore equities team for seven years before the domestic business was closed in 2012. During this time he was Morningstar’s favourite manager in the India-domiciled fund universe, delivering impressive returns over his tenure. Analysts’ conviction rests on his shoulders.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Fidelity India Focus A-EUR74.74 EUR0.00Rating
FSSA Indian Subcontinent I USD Acc137.52 USD0.77Rating
Jupiter India L Acc137.56 GBP-0.48Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar