India

What can investors expect from India’s Modi operandi?

The outcome of India’s recent general election was announced at the end of May, after six weeks spent counting about 600 million votes. As expected, incumbent prime minister Narendra Modi and his Bharatiya Janata party (BJP) cleaned up. In coalition with other right-leaning parties, the BJP now controls both the upper and lower houses of India’s parliament.

This result means Modi will now serve another five years as prime minister of the fast-growing emerging economy. It’s an outcome that has been widely celebrated by investors and markets. So what is all the fuss about?

Tactical Asset Allocator: lessons learnt from investing in ‘star’ economies

This is the last write-up on the tactical asset allocator portfolio, which has been running since 2013. The investment brief was to be cautious and diversified across asset classes, using exchange traded funds wherever possible, and to avoid being down across all holdings at any one time.

While the portfolio has only doubled in size over the five years since its inception, it has never been down by more than a few percent month on month, although the publication-date constraints of having to deal on one set day per month has limited its agility.

Modi’s re-election is good news for investors

Modi’s Bharatiya Janata Party (BJP) has once again emerged victorious in India’s 2019 national elections. This better-than-expected outcome will be taken as proof that Modi’s popularity continues to work. Markets have reacted favourably; Indian stock markets are off to a roaring start.

Tactical Asset Allocator: India has a future too bright for investors to ignore

Warren Buffett’s comments in Berkshire Hathaway’s latest annual report reiterate his sage advice that investors should not invest in anything on a time horizon of less than 10 years. That message underscores the attractions not only of nascent sectors such as artificial intelligence, robotics and food tech, but also of the growing emerging economies that will eclipse today’s biggest markets in the not too distant future.

Six adventurous single-country fund ideas

The Bric group of countries (Brazil, Russia, India and China) captured investors’ imagination back in 2001 when Goldman Sachs’ chief economist at the time, Jim O’Neill, coined the term. This new investment theme spawned a raft of fund launches, and investors piled in. Then in 2010 South Africa joined the group to turn Bric into Brics.

A strong mandate for Modi would be best for markets in 2019

Despite disappointing state election results, India prime minister Narendra Modi’s focus remains on a successful general election campaign in 2019.

Following the Reserve Bank of India (RBI) governor’s surprise resignation on 10 December, India turned its attention to the five state elections, where about one sixth of the population cast ballots over the past month.