Teak

Indian Markets: A Tale of Many Numbers

Help me understand one thing from your numbers:
YTD 2009
Net Foreign Activity(US$m) = +7,310
Net Local Fund Activity(US$m) = +878

Does this mean that foreign investment in India's market exceeds local investment by a factor of 9?? Or is it only the change in investment for 2009 (year-to-date) that is different by 9x??

Thanks.

EPI: My Pick from All India Focused Funds

I agree with the first commenter. As a holder of IFN, I have enjoyed the distribution payouts which I reinvest. Will EPI pay-through company dividends, or will the 'managers' use the money to increase the NAV and, thus, their 'management fees'? Comparing the % mgt fee is not in itself a complete comparison, you must also include info regarding distributions.

I am not a fan of mutual funds, and I use country-based closed-end funds only to get exposure to countries where it is difficult to buy shares directly. I want dividends paid through, not retained by the 'manager'.

Mumbai Terrorism Clouds Templeton's 'Buy India' Call

I just don't get the pessimism. I invested in IFN two years and, of course, have watched the stock price yo-yo up and down. But since I am not a 'growth investor', rather a dividend investor, I have been pleased with the $4.89 and $14.63 per share distributions that I have received the past two years, respectively. So, something which I bought on average for $50 per share has returned to me $19.52 per share, or a return of 39% on my original purchase price. Reinvesting the distributions have purchased an additional 51 shares. What investment in the USA gives such similar returns?

India has a growing domestic economy that is less tied to exporting than other countries (e.g., China) which should insulate it a bit more from the world markets. Yes there is political risk, but where isn't there any?

What am I missing?

Teak

Short India Is a Perfect Emerging Market Trade

Yes, bloggerman, dump your Indian shares; short, short, short; run for the exits!!!!

But promise me this: never come back.

Teak

India Update: Markets Barely In the Positive

Listen to the blogger who says to short the Indian market. Dump your shares; run for the exits; get out!

That way, guys like me, with patience, can go about our quiet ways, building wealth slowly, surely, on the back of rising domestic demand within India.

Teak