Insync portfolio manager Nitesh Patel said India’s Prime Minister Narendra Modi is set to modernise India and bring constructive change to the country, which is an opportunity for investors.
However, he said it is difficult for foreign investors to invest in India directly without the right processes and procedures in place, given that India’s currency is closed.
Investors, he said, should also put off direct investment until India has a heightened level of corporate governance and a level of investor protection in line with the western world.
“Where we like to invest and get exposure [to] India is through multinationals typically listed in America, Europe and parts of Asia,” said Mr Patel.
He said investors who want exposure to the consumer space in India, where many products are underpenetrated and where there is a growing middle class, should look at companies such as Nestle, Unilever, and Procter & Gamble.
The healthcare sector, he said, is also a good way for investors to gain access, with many branded pharmaceutical companies selling drugs to India.
“Some of the generic companies do too, although India has its own indigenous generic market [so] it’s mainly some of the branded pharmaceutical companies and also the medical device companies,” he said.
