Baring Asset Management may launch an India fund for its new head of Indian equities Ajay Argal as investor appetite for single-country funds grows.
Last month, Barings recruited Argal, who was head of offshore equities at Birla Sun Life AMC where he managed the £69.4m India advantage fund and £268.2m excel India fund.
He previously worked at UTI AMC where he was responsible for managing a number of Indian equity funds.
At Barings, Argal will report to Asia chief investment officer Wilfred Sit and will be based in Hong Kong when he joins the firm in September.
Barings head of UK retail distribution Rod Aldridge says: “India is a very expensive market and Argal will give support for the global emerging markets fund. As investor appetite for emerging markets matures, there will be more appetite for individual country funds. We could do an India fund for him at some point.”
Chelsea Financial Services managing director Darius McDermott says: “It was very frustrating when clients were demanding India funds five or six years ago and there was none available at that time. People are becoming more comfortable with single-country funds.
“India is spending a lot of money on infrastructure and there is potential to make money as the economy grows.”