India calls

The growth story in the Chinese telecoms market is being replicated in India, according to Sam Mahtani, deputy manager of the F&C Emerging Markets Fund.

"India is currently the world's fastest growing mobile telecoms market, with a record 8 million subscribers added during July alone. Compared to other emerging markets such as China, which has a penetration rate of some 40%, India, with a penetration rate of just 15%, offers great potential," he said.

According to Mahtani, this potential is being recognised by investors across the globe, most recently by Vodafone which picked up a controlling stake in India's number 3 mobile telecoms provider Hutchison Essar, renamed Vodafone Essar, earlier this year.

"Whilst the big cities have relatively high penetration rates, India's semi-urban and rural areas are untapped. Mobile operators are planning to role out their networks to these areas for the next leg of growth. As India's rural populous becomes more affluent, one of first items a consumer is likely to purchase is a mobile phone.

"In this space we like Reliance Communications, which has seen its share price rise 13% year to date and Bharti Airtel, whose share price has appreciated by an astounding 40% year to date," concluded Mahtani.