Investment Conundrums: Matthews Asia's Horrocks on why he is wary of India

Country is an EM favourite

Matthews Asia is taking a "very cautious" approach to emerging markets favourite India, with the firm's CIO Robert Horrocks insisting at least some of the country's economic success must be attributed to "luck", which could fade amid less favourable monetary policy conditions.

Horrocks, who is also manager of the Matthews Asia Dividend and Ex-Japan Dividend funds, said if economic reforms driven by Prime Minister Narendra Modi are successful, it would be comparable to the achievements of China over recent decades.  Mobius Capital Partners hires ex-Neptune Indian equities head Kunal Desai However, he said Matthews Asia believes Indian authorities lack the political influence to achieve the same level of success. He explained: "While a lot of managers have been extremely positive on India, we are very cautious. We see great potential there, but we see a po...