How to Invest (and Profit) From India

Remember Mukesh Ambani? I wrote about him a few weeks ago. He is the fifth richest man in the world and lives in India. He spent more than $ 1 billion to build a 27-story skyscraper in central Mumbai, India. It is for his personal residence. That’s right, a 27-story private house.

Not to mention the amount he’s spending he’s crazy.

It’s funny how mundane things make me think. There are fewer than a dozen billionaires today. I started wondering how he made billions. Two Indian billionaires made the Forbes Top 10 this year. In 1990 there was not a single person on the list of Indian billionaires.

India must be booming.

I started looking at the Indian market and its growth. What I found was great. The iPath MSCI India ETN Index comprises the top 62 companies listed on the Indian National Stock Exchange ‘NSE’. NSE is the equivalent of the New York Stock Exchange. The index has lost more than 51% of its value in the past few months alone.

Clearly, the hype that began in mid-2007 has faded from the market. Anyone who has invested in the new year has been in a lot of pain. I started thinking again. Dangerous I know. If you want to go bottom fishing in India, now is your chance, right? موقع 1xbet

First, some notes on India.

India is a very attractive market to invest in US stocks from India  in and there are 5 reasons why. I actually have more than 5, but space is limited.

Firstly, India has a huge population. In 2008, India’s population was just over 1.132 billion. It is the second largest in the world after China. Like China, the Indian population is growing and this is a great opportunity.

Did you know that India has more teenagers than anywhere else in the world? A total of about 115.3 million. This is more than all teenagers in the US, Canada, UK, France, Germany, Italy and Japan combined.It goes without saying that as this group’s purchasing power increases, this group will have a greater impact on the global market. to be

Think of them as the Indian equivalent of baby boomers.

Secondly, India’s GDP growth rate is high. GDP is the gross domestic product of a country. It is basically the value of all goods and services produced. India’s GDP is growing rapidly, with a staggering 9% GDP growth from 2007 to 2008.

Compared to US GDP growth of 3.2%, India’s growth rate is nearly three times faster.

Third, per capita income is low. Currently, the data shows that India is very low on the global per capita income list. They are around 132 or 165 years old and earn around $ 1,000 per person. why is this important? It means there is a lot of room for growth. By comparison, the United States ranks eleventh in the world with a per capita income of over $ 40,000.

As these indicators expand, they show the expansion of the Indian middle class. Feeding a new generation of consumers with disposable income will have a major impact on the global economy.

Fourth, India’s infrastructure development. The Indian government has pledged to spend around $ 100 billion over the next few years to develop the necessary infrastructure. Roads, bridges, railways, ports and energy infrastructure will all benefit. This construction boom will not only help the country but will also encourage the expansion of new industries. Think like the US economy in the 1950s and 1960s.

5th: oversold. Clearly, this market was ahead. Maybe they needed a 50% sellout. Indeed, low prices make these markets more attractive. If you have a long-term view, it might be the perfect time to add to your portfolio.

Million dollar question, how would you invest?

You can also buy mutual funds that focus on India and emerging markets. The problem is that fund managers don’t really know what they are buying. I prefer to buy ETFs where I know what I’m getting. By looking at ETFs alone, you can see that there are two ways to invest in India.

Read: Bank sathi app

iPath MSCI India Index ETN (INP). The index tracks the returns of 62 companies listed on the National Stock Exchange of India. The index is weighted by market capitalization. العب روليت اون لاين That is, the bigger the company, the more the fund owns it. There is also some counterparty risk. An ETN is a note backed by the issuer. In this example, Barclays. There may be problems if they go out of business. لعبة بوكر اون لاين It’s a very small possibility, but you never know.