Jupiter India fund

Andy Parsons, head of investment research at The Share Centre, explains why India has potential for higher risk investors and highlights the Jupiter India find for exposure to the region.

"India is an emerging economic region that offers investors an opportunity to benefit from the expected growing global importance and the potential growth that this nation will naturally bring.
 
"The region has underperformed over the past couple of years, predominantly because of the difficult political issues it has and continues to face. However, we have long held the belief that India has all the potential to become a major economic powerhouse.
 
"The pace of development remains slow, however the region is evolving. Infrastructure is a key element of its future development and there is still considerable amount required. Indian production is still principally transported via the road network, and yet despite the improvements made, the increase in car ownership has even led to delays on many of its new toll roads.
 
"The transportation of internal consumers is a key barometer and useful economic indicator. As a nation, India has long been associated with motorcycles, however the cost of a car in comparison has closed, meaning the affordability is increasing and more people are choosing four wheels over two.
 
"Demographically, the country has many appealing attributes for its future. With around 25%* of the total population currently aged 10 - 24, compared to a world average of around 23%*, there is a significant opportunity for a major demographic change and urbanisation as the desire for improved lifestyles intensifies. As their lifestyles and standard of living improve, this will undoubtedly benefit companies that provide the products and services demanded.
 
"The Jupiter India fund has been managed by Avinash Vazirani, since its launch back in February 2008. His style of investment is to identify companies from a bottom up perspective, principally based on a growth at a reasonable price measure. However if an opportunity exists, he is prepared to pay a premium if the earnings growth compensates.
 
"The fund has very strong sector bias towards financial and consumer goods, with just shy of 60% of the overall portfolio within these two sectors, both of which should potentially benefit from the developing change in lifestyles.
 
"For investors who can clearly appreciate the economic opportunity this region affords and who are prepared to accept a higher degree of risk and be patient, this fund has great potential."