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India Fund (IFN) Chart Analysis, Holdings

Check out Trader Mike’s analysis of the India Fund (IFN) charts. He’s bullish but also cautions - “My one concern is the volume action. I like to see stocks making and/or approaching new highs on strong volume. If it does make a new high on low volume that could be a sign of a head-fake in the making.. “

IFN is managed by the Blackstone Group; per it’s fact sheet, the Fund employs both quantitative and fundamental analysis and has over $1.2B in net assets. Fundamental analysis relies heavily on direct discussions with management both in the U.S. as well as during frequent trips to India. In addition, having an on-the-ground research team in India allows a broader and deeper coverage of the market. Quantitative analysis involves the use of both asset allocation models and bottom-up stock screening models.

A look at the fund’s holdings (as of Dec ‘05) shows a heavy concentration of the Sensex/Nifty large-caps: 

Finance & IT are the favored sectors; while pharmaceuticals are noticeably absent from both top-10 lists:

Before investing, keep in mind that the fund is currently trading at ~30% premium over its net asset value (NAV), signaling that it’s quite popular among investors.

This entry was posted on Monday, February 27th, 2006 at 9:25 pm and is filed under etf. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

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    2 Responses to “India Fund (IFN) Chart Analysis, Holdings”

    1. Bill Donoghue Says:
      March 7th, 2006 at 12:22 am

      Is there a safer way to invest in Indian stocks than this fund which is selling at a 30% premium? I am writing a column for marketwatch.com and can be reached at 206-281-8188 in Seattle.

    2. Kaushik Says:
      March 7th, 2006 at 3:33 pm

      Bill,

      Afaik, here’s the different alternatives for foreign investors who wish to invest in Indian equities:

      * IFN (India Fund, trading at 32% premium)
      http://www.etfconnect.com/select/fundPages/global.asp?MFID=10498

      * IIF (Morgan Stanley India Fund, trading at 11% premium)
      http://www.etfconnect.com/select/fundPages/global.asp?MFID=10541

      * HXI (Halter USX India - This is an index, not an ETF. But Halter might introduce a tradeable product, along the lines of PGJ)
      http://usxindiaindex.com/index.cfm

      * ADRs (Major companies, most of whom are also constituents of Indian indices - Sensex 30, Nifty 50)
      Full list: http://160.254.123.37/dr_directory.jsp?country=IN
      Top ADRs: http://160.254.123.37/adr_index_constituents_detais.jsp?indexCD=16899W49

      * Mutual Funds
      EMGIX: http://finance.yahoo.com/q?s=emgix
      MINDX: http://finance.yahoo.com/q?s=mindx