22 March Emerging Markets

India Deep Dive: Record Allocations Mask Growing Underweight

360 emerging market Funds, AUM $400bn

India Deep Dive: Record Allocations Mask Growing Underweight

Summary

  • Record Allocations Mask Caution: Record investments in India contrast with a rising underweight, as selected managers pare back exposure.
  • Valuations Prompt Strategic Pause: Record underweights among Value funds reflect valuation concerns, with growth funds also seeing overweights decline.
  • Selective Sector Optimism: Fresh interest in Utilities, Real Estate, and Health Care contrasts with caution in Tech, Staples, and Energy. Financials remain the cornerstone allocation.
  • Key Stock Trends: HDFC and ICICI Bank emerge as the most widely held stocks, with notable underweights in Reliance Industries, Larson & Toubro, and Tata Motors.
  • India vs. China: Allocation Shifts: The stark contrast in allocation trends underscores a strategic pivot within EM, highlighting record divergences between the two.

Click on the image opposite to view the full report, including a 65 page chart pack on Indian positioning among active Emerging Market funds.

For more analysis, data or information on active investor positioning in your market, please get in touch with me on steven.holden@copleyfundresearch.com