India can outpace China if Prime Minister Narendra Modi's reforms are implemented. That's the word coming in from the now retired emerging market investment guru Mark Mobius. “Modi's effort to encourage investments is a good sign,” Mobius said at an event in Mumbai.
The 81-year old investment guru, who retired last month from Franklin Templeton Investments after three decades at the firm, said India appeals to him as growth and reform can benefit companies.
In terms of his preferred picks, he likes Indian banks which have embraced fintech and firms that are embracing internet, digital technology and robotics.
He said he plans to launch an emerging markets fund registered in Luxembourg. The proposed scheme will be a long-only fund with “billions of dollars” of assets, Mobius said.
On world equities, Mobius said, markets are approaching the top of the bull market. “We are likely to see more volatility in the years to come.”
He said index funds and exchange-traded funds are key risks to the markets as they tend to move in the same direction. “The markets can have stretched valuations for long if earnings go up. Investors need to keep powder dry to capitalise on fall in stocks.”
Watch: Investment Guru Mark Mobius Talks To BloombergQuint's Niraj Shah:
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