Moonraker Fund Management expects India to perform better than China over the next 10 years.
The fund of hedge funds manager believes the developing middle-class and growing consumer demand to be one of biggest investment themes in India that will run for years.
Moonraker chief investment officer Jeremy Charlesworth says India has been lagging other emerging markets such as China but is catching up slowly. He feels that India is more of a free market than China, which he says is not transparent enough from an investment perspective.
Charlesworth says that when invest- ing in emerging markets, it is important to choose managers that are based in that country. He will often travel to the countries to get a feel for the regions in which he is investing.
He says: “We prefer managers to be based in those countries because they are not going to feel investor sentiment from here. As a fund manager, I will travel to those countries and look at, for example, whether the people are busy. But there is no point in going to the centre, you need to get away from the centre to see what is happening.”