How to invest in India

So, this post is going to talk about investing in India. Make sure you read the disclaimer at the end before throwing your hard earned MOOLAH at Indian securities.

The red-hot Indian stock market is perhaps been the best reflection of India's growth story in the 21'st century. While most people hear of India's IT firms, and call centres; there are numerous big players in the chemicals, pharmateutical, energy, retail and infrastructure sectors that have the potential to offer superb returns in the coming years.

Detailed analysis of the market is best left to professionals -- people with the time and expertise to conduct such research.However, there are two popular and easy ways for an average person to invest in the Indian markets:
1. Mutual funds that focus on emerging markets in Asia including India.
2. American Deposit Repositories(ADR) of Indian firms that are available for trading on U.S stock markets.

First, mutual funds. For those completely unfamiliar with the term please look at this excellent primer

There are a few funds in the U.S that focus on Asia specific investments, including India. Here is a partial listing of funds with their ticker symbols:

Morgan Stanley India Investment Fund(IIF)
Eaton Vance Greater India Fund A(ETGIX)
Eaton Vance Greater India Fund B(EMGIX)
Matthews India Fund(MINDX )
The India Fund Inc(IFN )

Funds with focus on Asia
Morgan Stanley Emerging Markets Fund(MSF)
Asia Tigers Fund(GRR)
T Rowe Price New Asia Fund(PRASX)
Mathwes Pacific Tiger Fund(MAPTX )
Goldman Sachs Asia Growth International((GSAIX)

Remember,mutual funds offer a good way of accruing decent returns while minimizing risks. For those without the time to research stocks in detail, this is probably the best avenue to invest.

While looking at a fund look at their investment focus their part performance and the fees they charge(sometimes referred to as 'load'). There are many no-load funds out there, and make sure to ask about these fees before investing.

Next, I'll write about ADRs. Happy Investing!

Disclaimer: I am NOT an investment advisor, nor am I paid by anyone to write this post. I am simply describing avenues for American residents to invest in India. Like ALL INVESTING DECISIONS, due your DUE DILIGENCE first before investing.