Why are foreign investors not totally convinced on India? Mark Mobius explains
Mark Mobius, Mobius Emerging Opportunities Fund, says at the end of the day, it is not foreign investors who drive the Indian market, it is domestic investors. RBI recently said that they want the banks to attract more deposits and probably one of the reasons for this is that there are too many retail investors going into the market and gambling and it might be a good idea for them to keep some money in the banks rather than stocks, but that is just a very short term kind of view.
Mobius says as long as S&P 500 continues to move up with corrections along the way, we will see a very good bull market in most countries around the world, particularly India.
After Vodafone, have you added any other stock to your India portfolio?
Mark Mobius: Yes, but I cannot tell you what it is because we are still adding. But yes, we have added. Because as I say, we are still sitting on more cash.
Give us a hint. Midcap, smallcap, which sector it belongs to?
Mark Mobius: Right now, largecaps are more attractive. In the past, the midcap was more attractive to us but now, large-cap is where we want to be.
Why are foreign institutional investors not very convinced about investing in India? I mean, you are getting flows which are okay, not great.
Mark Mobius: The problem is it is quite complicated to make investments in India for investors. In America, the way for them to invest would be through index funds. But even the big institutional investors find it quite difficult. There are lots of bureaucracy involved in putting money into
