iShares CNX Nifty India (XID.TO)

(A Top Pick May 2/16. Up 29%.) He is a fan of emerging markets. India has good fundamentals. In the next 10-11 years, it will pass China in population, and has a well educated workforce. This would still be a Buy.

He loves it. A couple of weeks back he wrote about it on his blog. About 40 years on average their currency has lost 5% per year. He thinks it will level out now. There are very good pro-business policy there despite all the corruption in Indian politics.

He is a proponent of emerging markets in general. If he were to use only one country to invest in, it would be India. This is a good product and one he uses personally. He wouldn’t go more than 7%-8% of your portfolio.

India? There is this one as well as one from the Bank of Montréal. This is the one that he would use as a long term play.

Although he believes in “emerging markets” as a broad play, for those people who want an individual country, he would recommend India. This is a part of the world that is growing at a really, really breakneck pace, compared to what we are used to in the West.

India has tried to monetize some of their gold, even some held in temples in India. They just lost their finance minister. The problem is the layers of bureaucracy. He expects great things over the long term. You have to be very patient.

iShares CNX Nifty India (XID-T) or Vanguard MSCI Emerging Market (VEE-T)? He likes both. The question is, how do you want to get exposure to emerging markets. BMO has a very good one as well BMO India Equity Hedged to CAD (ZID-T), which is also a bit cheaper than this one. (See Top Picks.)

If you want to get into emerging markets, but want to avoid China and still have the growing middle class, India is the way to go.

Indian ETF. Very different demographics in India vs. China and he is bullish on India. We pulled back to the 200 day moving average. We are sitting on it right now. He thinks we are probably going lower and it will be a better opportunity in the back half of the year.

30% financials, and not too different from what we have in Canada. He thinks those financials are stable. This is up 63% in the last 12 months. India is a beneficiary of lower oil prices, because they are a net importer. Expect to see 6%-7% GDP growth for the country. This Saturday the budget is going to be unveiled.

There has been a lot of enthusiasm about India’s new prime minister, and that he will be freeing up a lot of the capital restriction rules with much more open markets. The prices of these things have really gone through the roof in anticipation, but he doesn’t think it is being done yet. This is not something he would want to go into right now.

With the new government in India, it is much more positive for business. This is a good product.

Sold it a couple of years ago. India is not one of his favourite places to invest because of issues with capital requirements and restrictions. 1% MER.