Emerging markets fund manager and founder of Mobius Capital Partners LLP, Mark Mobius, is positive on India and China. “India and China will continue to drive growth higher in emerging markets,” he says.
“Because of India and China and some other countries, the growth of EMs is double that of developing countries and it is unlikely that it will change any time soon,” he said in an interview with CNBC-TV18’s Manisha Gupta.
Talking specifically about India, he said he is upbeat on domestic-oriented manufacturing of infrastructure, consumer-spending, as per capita income is going up.
However, he said the Indian government needs to take certain measures to push growth. He said the number one issue was infrastructure spending.
“India has to get into international markets, issue bonds, even foreign currency bonds, which they will pay back at these low-interest rates and develop infrastructure which will create an ability to grow and export,” he said.
He noted that globally too a lot of high-risk countries were issuing bonds at low rates. “One must remember that euro is now at negative rates, so the situation is that you have to pay the bank to keep the money, so this is an opportunistic opportunity for India,” Mobius added.
On the currency market front, he said dollar continues to be strong because the equity markets in the US were strong and are getting stronger. Moreover, some of the other countries have gotten into trouble and dollar has become a safe-haven.
Talking about rupee, he said, “Rupee on a recent historical level has not been too bad, it has been relatively stable because the RBI has been quite conservative, reserves are good and so people see that it is relatively safe.”
“I am bullish on gold. I am not saying that gold is not going to go down because it is going to fluctuate but people should have at least 10 percent of their portfolio in physical gold,” added Mobius.
Source: CNBC-TV18Get access to India’s fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code “GETPRO”. Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
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