With rates marching higher in the US, higher risk asset classes such as emerging market equities are seeing rising volatility. As risk reprices across the market, this will cause problems for weaker companies and countries but also opportunities for prudent investors.
The challenge for investors with emerging markets is that whilst the structural opportunities are widely understood there is also a cyclical overlay to the asset class which can lead to substantial equity market volatility.
India is very attractively placed in today’s low growth environment. Medha discusses the changing demographic and structural drivers of growth in the country, and how from a portfolio perspective India may be able to drive income for investors.