As one of the largest and fastest growing economies in the world, India represents a unique investment opportunity among emerging markets. Increasingly investors are looking for alternative sources of portfolio returns and India offers just such an opportunity. South Africans can now access investment opportunities in emerging market India via the Satrix MSCI India Feeder ETF.
India has a fast- growing and increasingly affluent middle class (around 50m people today and headed for well over 400m), a very young and educated population, and relatively low wages compared to those in much of the rest of the emerging world. Together with these long-term structural benefits, India also has a government committed to reform. The country now regularly ranks among the top 10 improvers in the World Bank’s Ease of Doing Business Rankings and Mumbai ranks highly on indices of liveable cities.
India is also extremely technologically advanced with an open-minded, early adopting youth. Low-cost data and widespread smartphone usage has fuelled ecommerce and digital banking. This accelerating technology uptake is not yet fully reflected in the stock market, presenting investors with opportunities for growth.
Global multi-nationals are also starting to question their over-dependence on China, leading to a search for a viable alternative. Inexpensive and English-speaking, India is well placed to fill this gap with its established chemical, pharmaceutical and electrical manufacturing base.
Satrix MSCI India Feeder ETF
The Satrix MSCI India Feeder ETF seeks to track the MSCI India NET TR Index, which provides broad Indian stock market exposure. This global ETF will list on the JSE and investors will access it in South African Rand. Satrix will replicate the index by investing in the iShares MSCI India UCITS ETF.
About the MSCI India NET TR Index
The MSCI India NET TR Index is designed to measure the performance of the large- and mid-cap segments of the Indian market. With 107 constituents, the index covers approximately 85% of the Indian equity universe. It is a free-float adjusted market capitalisation weighted index and is reviewed quarterly.
Who should invest in this ETF
Being exposed to the stock market and to the ups and downs of currency (Rand) movement, this ETF is suitable only for long-term investment or as a means to express an investment view on India within a broader portfolio.
How to Invest
Existing Investor: You can access the Satrix MSCI India Feeder ETF via SatrixNOW, which has no minimum investment amount.
New Investor: If you don’t have an account yet, you can register here.
It will also be available via other investment platforms and personal stockbroking accounts.
For further information related to performance of a specific fund, please refer to the fund information sheet (above). Please refer to the CIS disclosure here.
POSTED : 8 MARCH 2022