Veteran investors Mark Mobius has allocated almost half of the market funds that just appeared to India and Taiwan to help compensate for slides in Chinese stocks that have dragged back from overall developing countries.
“India at a 50-year-old rally,” even if there was a short attack of the Bear Market, said Mobius in an interview on Bloomberg television.
“India may be where China used to be 10 years ago,” he said, adding government policies on unifying regulations throughout the state would help the country in the long term.
The view of Mobius bullish in India clashes with analysts at Morgan Stanley and Nomura Holdings Inc., which has lowered the stock market after the S & P BSE Sensex Index benchmarks more than double March.
The emerging market equity has followed behind their national colleagues developed this year, held back by losses in China because the government has been a market with extensive regulations.
“People say the market that appears looks bad because China drags down the index, but they have to see other areas like India that rises,” said Mobius, which founded Mobius Capital Partners LLP after a career at Franklin Templeton Investments.
Mobius emerging market funds have 45% of their portfolo allocated to India and Taiwan, with the largest hardware technology and ownership software in these markets.
India Software Service Provider Systems Ltd.
And Ememory Technology Inc., Taiwanese chip technology provider, is among the largest shares at the end of September.
Stocks have both more than double this year.
That said, the decline in Chinese equity has presented several opportunities, said Mobius.
“The government has begun to set better, trying to avoid monopoly,” he said.
“We are looking at small and medium-sized companies that will benefit from this change where the government wants a more level playing field.”
‘China slowed down, India was at a 50-year-old rally’
