When you look at the holdings of big global funds that focus on emerging markets, something interesting shows up.
Fund Preferences Across Countries
Most of these funds give the highest weight to stocks from Taiwan and China. Indian companies rarely make the top of their lists.
- Taiwanese stocks often have the largest share of the portfolio.
- Chinese stocks usually come in second.
- Indian stocks are usually near the bottom.
Indian Stocks Get a Small Slice
When Indian companies do appear, the funds stick to the biggest, well‑known names – the large‑cap stocks. Smaller or mid‑size Indian firms are mostly left out.
What This Means for Indian Investors
- Limited foreign interest: Global money is flowing more to Taiwan and China than to India.
- Focus on big players: If you own large‑cap Indian stocks, you may benefit from this limited but steady foreign attention.
- Opportunity for diversification: Investors might look beyond the usual large‑cap names to find hidden value that these funds are missing.
Remember, this is perspective, not a prediction. Do your own research and consider your risk tolerance before making any investment decisions.