The fees here are “only” 0.19
Franklin FTSE India UCITS ETF (FLXI)
Ah, I see this was already mentioned
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One can certainly see potential in Jupiter India, but it’s really not cheap to invest in.
1.97% goes to ongoing charges.
What are these 5% subscription fees…?
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“What’s this 5% subscription fee…?”
Good point, I’ve completely overlooked this myself…
I made my first subscription to the fund, and at least for that, that 5% fee was not charged.
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Moody’s estimates that India’s economy will grow by 6.6% in 2025 and 6.2% the following year, supporting the profitability of non-banking financial companies (NBFCs) through strong credit demand.
Moody’s forecast is lower than those of the Reserve Bank of India and other agencies. Moody’s predicts loan growth of approximately 15% for NBFCs over the next 12-18 months, driven by infrastructure financing and loans to SMEs, among other factors.
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I’ve also been considering placing a small bet on India over the next few years. It’s just that prices have already risen sharply.
I’m considering this one, expenses 0.65% per year:
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This is cheaper, 0.65 vs 0.19; this has better diversification, 136 vs 228 stocks; it’s also slightly less top-heavy; 3-year return 56.24% vs 58.49%. The sector breakdown is almost identical. Everyone does as they see fit, but all the key figures are in Franklin’s favor except for the fund size.
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Does that Franklin ETF also have high enough trading volume for it to be liquid? I’m certainly no major investor.
With an ETF, there’s almost always at least a market maker on the other side, so you don’t run into the same issues as with Helsinki’s micro-caps where you can hardly get your shares sold. The smaller the ETF, the wider the spread. The spread can also vary depending on where you buy. The European market is annoying in the sense that there are several medium-sized exchanges rather than one large one that would have tighter spreads. The market isn’t open right now, so the spreads aren’t visible.
There’s 700 million in that one, and its rank in terms of ETF size is something like 370/1821. The other one had 4,600 million, if I remember correctly.
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Exit polls show a good result for Modi; a clear victory and continuity for Modi seem to be viewed as positive for the Indian stock market, should this indeed be the case. Of course, given the US market’s positive turn on Friday, one would expect a tailwind on Monday in any case, unless something unexpected happens. The election results will likely be known on Tuesday. Bloomberg has a paywalled article today, June 2nd; it also won’t let me copy the link, but it should be easy to find.
India Stocks, Bonds Set to Gain as Polls Show Landslide Modi Win
- Stocks to hit new high if results match exit polls: analysts
- Foreigners likely to cover short positions as stocks rise
CNBC was slightly more cautious yesterday; exit polls might not be very reliable. The BBC also warned about the reliability of those Indian polls.
https://www.cnbc.com/2024/06/01/india-election-modis-bjp-alliance-set-to-win-parliamentary-majority.html
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I am invested in India (Franklin ETF) because I believe it supports genuine diversification. It isn’t swayed by US housing starts or PMIs. There is enough distance.
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India has been one of the fastest-growing economies, but it remains a surprisingly small player globally; on the other hand, the potential is there.
The country has a large and young population, providing a labor force for various operators. However, education, infrastructure, and many other areas are still in poor shape.
The government has sought to attract businesses to the country with tax incentives, legislative development, and infrastructure improvements—plus, labor costs are low compared to China.
India is unpredictable, but if the conduct of another unpredictable player, namely China, continues as is, India could become even more attractive in the eyes of foreign entities.
https://x.com/scienceisstrat1/status/1797000984192864602
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And so it seems that the opposition appears to have performed much better than expected, at least at this stage of the vote counting, and it’s rare to witness such a sharp index dip; right now, NIFTY50 is down 4.93%. It will be interesting to see how that develops today and then, in the longer term, who ends up in power. It’s great to have such major elections where the winner is not known in advance.
At least for me, Bloomberg’s election tracker is visible without a paywall, if you’re interested. Once again, it doesn’t allow copying the link in the usual way, but at least now it’s right on the front page, under the headline
Modi’s BJP Leads in Tighter-Than-Expected India Vote
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Here is a Kauppalehti news article regarding the stock market reaction caused by the Indian elections. No paywall.
Since the coronavirus pandemic, India has been one of the world’s fastest-growing economies, and Prime Minister Modi has announced his goal for it to become the world’s third-largest economy after the United States and China.
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Yesterday, CNBC commented in a very positive tone on the Indian election results and their impact. The article also includes a few other related links. The market recovered nicely from the initial shock; hopefully, it continues on an upward trajectory, but there’s always a bit of suspense with these things.
https://www.cnbc.com/2024/06/06/cnbcs-inside-india-newsletter-modis-loss-could-be-indias-gain.html?&qsearchterm=modi
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The common denominator of the top three trending funds and ETFs: India.
The Asian giant, currently undergoing the world’s largest parliamentary elections, has been in the sights of international investors this spring. As geopolitical risks related to China have grown and its stock markets have lost their luster, India’s significance and attractiveness as an emerging economy have reached a new level. This is reflected in the ETF and fund choices of Finnish investors in May, as well as in the returns of funds focused on the Indian market.
Number of owners through Nordnet +13% in one month.
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The Indian stock market has seen wild growth, and interest in India is apparently growing all around the world. Increased liquidity makes the country’s markets more attractive to institutional investors, among others.
India’s markets are viewed more positively in some respects than before, but unsurprisingly, the country is seen as risky; on the other hand, China’s actions may increase interest in India.
https://x.com/Barchart/status/1799982237703618733
Let’s add this tweet here as well. 
https://x.com/DavidInglesTV/status/1799987334882193430
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Unfortunately, it seems that Franklin ETF cannot be purchased through Nordea’s service.
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I bought the Jupiter mentioned in the article. It does have quite high ongoing costs, let’s see now… The trade execution took about 3 days. I don’t know why. I bought it through Nordnet.