Investing in India

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SINGAPORE (April 28): Exchange-traded funds that track Indian equities were among top performing locally-listed ETFs in the last three months to April 26.

The db x-trackers NIFTY 50 UCITS ETF is the best-performing of the Singapore Exchange-listed ETFs, with total returns of 13.2%. It tracks the performance of the 50 largest companies in India and is float-adjusted by market cap.

Among the top holdings in this ETF are conglomerate Reliance Industries, IT and consulting company Infosys, and banking and finance group ICICI Bank. The ETF trades in US dollars and has an expense ratio of 0.85%.

Close behind is the iShares MSCI India Index ETF, with total returns of 13.1%. It tracks the performance of large- and mid-cap companies in India. Its top holdings include financial conglomerate Housing Development Finance Corp, auto company Tata Motors and pharmaceutical company Sun Pharmaceuticals Industries. This ETF trades in both US and Singapore dollars, and has an expense ratio of 1.08%.

But as growth slows in India, there have been questions about whether the country’s market can continue to outperform. Should investors be taking profit while they can? Pick up the latest copy of The Edge Singapore (Issue 777, week of May 1) which is on sale now, to find out.