Investing in India – is it too late to benefit from the rally?

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How can you invest in the Indian stock market and is it too late to benefit from the rally? We take a closer look and share 3 fund ideas to invest in India.

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

Published on 15 November 2023

It was correct at the time of publishing. Our views and any references to tax, investment and pension rules may have changed since then.

The strength of the Indian economy has taken centre stage for those investing in Asia and emerging markets.

Data from the end of June marked an impressive 7.8% year-on-year GDP growth figure, which has propelled relative stock market performance.

The FTSE India index has risen over 6.5%* year to date, in contrast with negative returns in both Asian and emerging indices, which has unsurprisingly garnered significant attention.

Small and mid-caps have done especially well, alongside those leaning into the domestic economy like financial services and consumer-focused names.

Naturally, the recent rally has raised questions about valuations and some fund managers admit it's become challenging to find appealing opportunities.

However, while pricier than its regional peers, India offers an array of advantages,