India has emerged as one of the world’s fast-growing economies. Today, with a vast workforce and rising prosperity, India is just getting started.

As sub-advisor to Canada’s oldest India fund, the Sun Life Excel India Fund, Aditya Birla Sun Life AMC is on the ground in India, tuned into the local culture and market movers.


Why invest in India?

Three main drivers of India's growth

Still growing strong

With a young, well-educated workforce of over 750 million people1, prosperity is rising as India is set to become the world’s second-largest economy by 2030 (PPP).2

Government reforms – opening the door to investors

Since 1991, successive Indian governments have introduced financial reforms, with improved governance, giving investors increased certainty.

Growing consumer spending

Consumer spending is expected to grow from $1.5 trillion today to nearly $6 trillion in the next 11 years.3


Indian equities can help enhance diversification

An allocation to Indian equities can help diversify portfolios with a low correlation to other global asset classes, to help reduce the overall risk of a portfolio.

As the chart below shows, over the long-term when Indian investments were added to a Canadian equity portfolio, it increased the return potential of the portfolio over the period.

Return potential generated by adding Indian equities to a hypothetical Canadian equity portfolio

(Based on % weightings over 10 years)

 

Source: Morningstar Research Inc.; based on the 10-year periods from December 2009 to December 31 2019. All returns in C$. Canadian equity portfolio represented by the S&P/TSX Composite Index; Indian equities by the MSCI India Index. For illustrative purposes only. Past performance is no guarantee of future results. Actual results would have been different. You cannot invest directly in an index. A Sharpe ratio combines a risk measurement and a return measurement into a single number to determine a fund’s risk-adjusted return. A higher value is better.

1.. Source: United Nations World Population Prospects, 2017
2. Source: Standard Chartered, in purchasing power parity exchange rate terms.
3. Source: World Economic Forum, January 2019.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

© Sun Life Global Investments (Canada) Inc. Sun Life Global Investments (Canada) Inc. is a member of the Sun Life Financial group of companies.