The Toronto Star (Bypass registration here) has yet another story on investing in India and mentions the only India focussed mutual fund available in Canada: the Excel India Fund. The story quotes the fund’s CEO: “We’re the only game in town”. That may be, but there are other India-focussed funds available which have a longer track record. I’ve made an earlier post about closed-end funds like the India Fund (IFN) and India Investment Fund (IIF) that have posted 3-year returns of 37.59% and 43.59% respectively, which compares favourably with the Excel India Fund’s 30.33% return. IFN and IIF trade on the NYSE and can be bought through a stock broker.

I still think that average investors should not take on single-country risk by investing in India or Taiwan, but instead should allocate a small part of their equity portfolio to a broad emerging market fund like the iShares MSCI Emerging Markets Index Fund (EEM). EEM has a 5.81% exposure to India.