Carmignac's Park: I have learned to be ready for disappointment when it comes to India

Concerns about oil, currency and politics

Jayna Rana
David Park of Carmignac

David Park of Carmignac

David Park, co-manager of the €1.2bn Carmignac Emergents fund with Xavier Hovasse, has said despite India's "huge potential" he is concerned about its fragile currency and the potential for volatility ahead of next year's general election, which makes the country a difficult investment case.

Speaking at the company's annual media event last month, Park said he is most concerned about the impact of external factors on the country over the next 12 months, such as volatile oil prices and inflation. He said: "India's potential is huge and everyone else will agree. But I have learned to always be ready for disappointment with India in terms of growth delivery. "Every $10 movement of oil deteriorates the country's current account deficit by around 50 basis points and moves inflation +/- 30bps. If it surpasses $80, the deficit will stand at around 3% and inflation will be above ...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on Emerging markets

The ETF will be available to investors on London Stock Exchange for a total expense ratio of 0.35%.

Franklin Templeton launches Catholic EM sovereign debt ETF

Article 8 ETF for European investors

clock 28 June 2022 • 1 min read
Amazon shares are down 40% from its peak

Growth stock pickers feel like 'a kid in a candy shop'

'It is time to go shopping'

clock 22 June 2022 • 4 min read
Offered to both institutional and retail investors, the portfolio is a new sub-fund of the Luxembourg UCITS Goldman Sachs Funds SICAV.

Goldman Sachs AM launches emerging markets ex-China equity fund

Benchmarked against MSCI ex-China index

clock 21 June 2022 • 1 min read