I bought India Fund (IFN) today for following reasons.
- India has underperformed other emerging markets for several years, making purchase price attractive.
- Election of Modi in May 2014 on economic modernization platform. BJP's majority in Lok Sabhaon has facilitated passing budget, renewable energy projects, high speed rail project and reforms to help middle class purchasing power.
- India surpassed China as fastest growing economy last quarter which should unleash national pride and motivation.
- Friend who has worked in India for 10 years confirms enthusiasm is palpable. "People are going out more, restaurants are packed, they are buying cars and houses. Haven't seen this kind of optimism for years."
Price: $27.385 / share
Amount: 2.78% of portfolio
Position: 7.98% of portfolio