Dubbed the ‘Indian miracle’, significant economic growth within India is offering Australian financial advisers and their clients vast and ranging investment opportunities, according to Dr Anand Sethi, economist and co-author of the acclaimed Doing Business in India.
Dr Sethi said India’s national companies, which are catering to its rapidly growing domestic market, should be a key factor for investors considering adding Indian stocks to their portfolios.
“Sectors like infrastructure, food and fruit processing and financial institutions (including non-banking) are seen as the leading sectors for investing at the moment,” Dr Sethi said.
He added that with India becoming one of the leading emerging economies, emerging sectors including aviation and airports, retail and high-speed rail also provide an attractive option for investors.
However, when speaking about the investment risks present in India, Dr Sethi warned of fallout from India’s troubled political relationships with neighbours Pakistan, Afghanistan and Bangladesh.
Other current risks, according to Dr Sethi, centre on “the escalation in fuel prices in Iraq and Iran, which India depends hugely on, and the shortfall in infrastructure development targets”.
Dr Sethi will be one of the international keynote speakers at the sixth annual PortfolioConstruction Conference on August 15 and 16.
The conference, a two-day program of 31 sessions, aims to present debate on contemporary and emerging portfolio construction issues for professionals involved in the design, building or management of investment portfolios.
For more information visit http://www.portfolioconstruction.com.au.
