Wasatch Funds has launched the Wasatch Emerging India Fund, which it says it the first actively managed India mutual fund with a small-cap bias.
Team-run, the fund’s senior portfolio managers are Ajay Krishnan and Roger Edgley.
“We believe there will be tremendous investment opportunities in India over the next decade,” Krishnan said. “India is a $4 trillion economy that is expected to grow at roughly 8% per year over the next five years. Wasatch has been investing in India for more than 10 years, and we will leverage our India experience in this new fund.”
Edgley added: “India has a rapidly growing middle class and an abundance of small, high-quality companies, including over 300 IPOs in the last five years. We are comfortable focusing on just India because we believe the quality of company management teams as well as the business infrastructure and regulations are very high in India relative to other emerging countries.”
Wasatch noted that the average large-cap stock in India has more than 2.5 times as many analysts following it than the average small-cap stock, and six times as many analysts than the average micro-cap stock.
“U.S. investors are missing what we think are the most compelling opportunities in India—smaller companies,” Krishnan said.