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India 50 by TrendFollower

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For many years I have been investing in JP Morgan Indian Investment Trust and Fidelity India Focus Fund. My returns over the past 15 years or so in these investments are phenomenal. I have been adding to them on a monthly basis over this time period to take advantage of 'Pound Cost Averaging' and I made further lump sum investments during the financial crisis and the subsequent recovery period. 

However around Christmas time (2018) I began looking at the India 50 from a trading perspective. It just recently made a new high.

Basic Fundamental Analysis:

Now Narendra Modi has just won his second election by a far larger majority than his first election. I visit India regularly and some of the projects are very exciting. The demographics are positive for India as they have a large population under 30. If Narendra Modi can ensure that the educated youth have a job which suits their skills set then India has great potential. Another thing he must ensure is that capital is invested in infrastructure. The quality of the roads is a must. I recently went on the Baroda Express Highway and it is as good as any freeway in the US or motorway in the UK if not better so India are improving in this area. 

GIFT City in Gandhinagar is exceptional. I recently had a meeting there and they took me on a tour around the site. It has mind-blowing potential. I include the website below.

http://www.giftgujarat.in

https://en.wikipedia.org/wiki/Gujarat_International_Finance_Tec-City

One must remember that India has a very large population of around 1.4 billion where as the UK has a population of around 66 million. It is being reported that if the current growth for India and UK continues in terms of GDP then India will overtake the UK around 2022 - 2023 to become the 4th largest economy in the world. If this does happen then investing in India and trading India must seriously be considered. 

I include the 'daily' chart for India 50 below for you to see how it has performed over the past couple of years. 

1342591498_India50_20190610_07_14.png.9a785abfff43c243ee58d82a9e2bfadb.png

In my personal judgement, India, over the next five years has the potential under Narendra Modi to experience serious positive growth. It is a market that really excites me. There are some excellent investment funds and investment trusts out there for India but also those who trade indices may want to seriously look India 50 which IG offers. I do accept that margin requirements are a lot higher than the US, UK and EU indices so this will put a lot of people off unless they are professional client for IG which then makes it a lot cheaper to trade. 

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India will require more foreign direct investment. This is a given. With Brexit, the UK's eyes may be on India to negotiate trading deals with them. New roads are being built. This I have seen with my own eyes. It will take time though. Toilet facilities are being provided and of a better quality too throughout India. Again this is a mammoth project. One of the biggest things I have seen evidence of is 'Electrification' and Narendra Modi for me has delivered here. 

A lot of people point out negatives in relation to Narendra Modi. The reality is he has no credible opposition or has any substance. He is India's best bet for long term growth. It is being reported that in around 10 years it could be the third largest economy in the world just being the US and China. What an achieve this could be. If this does happen (I do not know that it will for sure) then just think of the stock market performance India could see over the next 10 years!

GDP growth is around the 7% area which is very impressive. I believe inflation is below 5% but that is a tad too high for me. 

India Is Now Investing More in Solar Than Coal

https://www.ecowatch.com/india-solar-power-investments-2638682086.html

India is currently the fifth largest economy in the world and it is growing faster than any other of the G20 economies. I am a big fan of investing in 'Emerging Markets' and 'Frontier Markets'.

For me, India is a gem in the Emerging Market Universe. 

As India grows I think we will see more and more companies going public which will lead to a boom in equities and the humongous middle class in India begin shifting from Cash, Bonds (Fixed Deposit accounts) and Gold and into Equities. When this happens the Indian Stock Market is going to be a lot higher. 

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