The surge of Taiwan and India enables investors to diversify their portfolios by investing in artificial intelligence chipmakers and India’s infrastructure development, driven by Prime Minister Modi’s modernisation initiatives.
Taiwan and India gain ground on China in emerging market equity portfolios. Representative Image-FP
The competition to surpass China’s dominance in emerging market equity portfolios is heating up with Taiwan and India emerging as strong contenders.
Following unprecedented stock market rallies, Taiwan and India now account for over 19 per cent each of the MSCI EM Index, narrowing the gap with China’s 22.8% share, which has been declining over the past few years, according to data compiled by Bloomberg.
The surge of Taiwan and India enables investors to diversify their portfolios by investing in artificial intelligence chipmakers and India’s infrastructure development, driven by Prime Minister Modi’s modernisation initiatives.
As the US interest rate cycle reaches its peak, having appealing options in emerging markets is crucial for redirecting capital flows. According to Manish Bhargava, a fund manager at Straits Investment Holdings in Singapore,
“Investors are seeking to mitigate the risks associated with China’s significant weight in emerging markets by diversifying into other markets. Taiwan’s technological expertise, particularly in semiconductors, and India’s growing tech sector and digital economy make them appealing alternatives.”
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