India is becoming a “very exciting” investment opportunity, “partly because of technology, but also because of government policies,” said veteran emerging markets investor Mark Mobius.
“We’re focusing more and more on India,” the founding partner at Mobius Capital Partners recently told CNBC’s “Squawk Box Asia, “India’s really emerging as something very exciting.”
Mobius attributed the country’s appeal to its technology, government policies, “and also because it’s a very open society.”
“In many ways, I call it ‘The United States of India’ because these Indian states are so different, one from the other,” he said. “And that’s creating an incredible growth opportunity.”
India is on track to be the third-largest country in terms of GDP, with $10.8 trillion projected in 2031. By 2030, the country’s working population is expected to cross 1 billion, the largest in the world. This would also lead India to have nearly 800 million digital content users by 2025.
Over the next decade, India will have nearly 700 million people born between 1980 and the 2000s entering their peak consumption years, fueling a massive wave of domestic demand. This demand will not be realized through the legacy consumption channels but instead through the new age of online economy, which reaches all corners of society, from the way one bank to the way one orders food.
“Now’s the time to start looking for opportunities,” Mobius said.
Investors looking to gain entry into India’s internet and e-commerce sector can do so via EMQQ Global’s Next Frontier Internet & Ecommerce ETF (FMQQ) and the India Internet and Ecommerce ETF (NYSE Arca: INQQ), India is the second-largest exposure in FMQQ and the entire focus of INQQ.
“India is a significant part of our strategies. It’s our second-largest exposure in FMQQ with a weighting over 16%,” said Kevin T. Carter, founder, and CIO of EMQQ Global. “That is expected to grow in our upcoming rebalance and for the foreseeable future.”
Carter added that India is also “one of the most exciting pockets in the global equity landscape when you consider the size of the market, the growth in the economy, and the very low penetrations rates. Its tech ecosystem today is where China was 10 years ago, and where the US was two decades before.”
FMQQ is designed to provide investors with exposure to the internet and e-commerce sectors of the developing world. FMQQ seeks to provide investment results that, before fees and expenses, generally correspond to the price and yield performance of the Next Frontier Internet and Ecommerce Index.
Meanwhile, INQQ intends to capitalize on India’s rapidly growing digital and e-commerce sectors. INQQ seeks to provide investment results that, before fees and expenses, generally correspond to the price and yield performance of the India Internet and Ecommerce Index.
Both funds have an expense ratio of 0.86%.