India is back in favour with global fund managers, moving to a mild overweight stance in Bank of America’s recent Asia Fund Manager Survey.
The survey, covering 119 respondents who manage about $293 billion, shows India climbing from the bottom of the list in August to a modestly positive outlook now. Investors see India as a way to diversify away from AI‑heavy markets in North Asia.
Fund managers now hold a net positive balance for India, meaning more are overweight than underweight. The country is viewed as a stable growth story that can balance portfolios that are heavy on AI‑driven stocks.
Even though expectations for China’s economy have steadied, almost half of the respondents still see a structural downgrade for Chinese equities. Most expect easier monetary policy, but investors are waiting for clear policy action before adding more exposure.
Beyond India, the survey highlights strong interest in the AI and semiconductor cycle. In China, AI, internet and “anti‑involution” themes dominate, while green energy and travel are less attractive.
For individual investors, the mild overweight rating suggests that Indian stocks could provide steady returns and act as a buffer against the volatility of AI‑centric markets. Keeping a portion of your portfolio in Indian equities may help diversify risk while you watch other Asian opportunities.
Remember, this is perspective, not a prediction. Do your own research and consider your risk tolerance before making any investment decisions.
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