Over the past couple decades, investors who have ventured outside of North America or Europe for growth have generally been well compensated. Growth rates in countries such as China and India continue to double or triple expected growth in countries like Canada and the U.S., due in part to the developing nature of these economies and the population size and growth metrics exhibited by these nations.
With the Chinese economy expected to remain strong for some time, India has remained a company which has fallen into the shadow of China somewhat among North American investors who may be more familiar with China as representative of the Asia Pacific region of the world. Here's my take on why investors ought to consider India as a top investing location outside of North America or Europe.
First of all, take a look at the stock chart of TSX-traded Fairfax India Holdings Corp. (TSX:FIH.U) in recent years. Barring a few domestically traded cannabis or technology stocks, Fairfax has outperformed the vast majority of Canadian securities over this recent time frame.
One such reason Fairfax India Holdings Corp. has outperformed many of its domestic peers is due to the ability for domestic traders to have access to stocks and debt which may otherwise be difficult to access. This fund hand-picks some of the largest and best-run Indian companies, making it easy for Canadian investors to gain exposure to the high-growth Indian market.
At these levels, Fairfax India Holdings Corp. remains fairly valued, and I would consider picking up shares at current levels.
Invest wisely, my friends.
