Riding Indian Tiger

On last Saturday, the benchmark for Indian stocks, the Bombay Stock Exchange's Sensex 30 Index reached an all-time high of 8900. It's having a multi-year run upwards despite the slump in US market in last few years and US average investors in India's ADRs (American Depository Receipts) are enjoying their ride on this quite strong Asian tiger. If you do not like to take the risk of investing in individual companies, you may consider one of the following 5 funds that invest in India:

1. Matthews India Fund (MINDX) from Matthews International Capital Management. This no-load fund was launched on Nov 1 at a price of $10. Last Friday it closed at $10.61. Its expense ratio is 2% and minimum investment is $2500 for non-retirement and $500 for retirement funds.
2. Eaton Vance Greater India Fund (ETGIX). This carries a 5.75% initial sales charge, or load. Expense ratio is high 2.77% and minimum investment is $1000.
3. Oppenheimer Developing Markets Fund (ODMAX). Again a good choice for diversification. The fund is based on various developing countries in all continents. Its expense ratio is 1.52%. This again carries a front load of 5.75% and minimum investment is $5000. The fund invests 15.5% of its total asset in India. Other major countries in its portfolio are South Korea (19.9%), Brazil(19%)
4. Matthews Pacific Tiger Fund (MAPTX). It's an Asian regional fund (no load) and thus provides better diversification. This fund has about 7.6% of its assets invested in India, whereas 32.4% is in China. Its expense ratio is 1.32%.
5. Matthews Asian Technology Fund (MATFX). This no-load fund invests 7.7% of its assets in India, whereas 20-25% in other single countries like Japan, Korea, China. Its expense ratio is 1.49%.