Mark Mobius sees strong investment potential in Indian stock market
What's the story
Emerging market expert Mark Mobius has advised investors to steer clear of index funds due to rising global market uncertainties. In a recent blog post, he emphasized the potential of investing in India, Taiwan, and Vietnam, along with select US companies that are leveraging technological advancements. His positive outlook on the Indian stock market comes despite the challenges posed by 50% tariffs imposed by the Trump administration.
Market response
Trump tariffs and geopolitical risks
The Indian benchmark indices, Sensex and Nifty 50, witnessed a dip of over 1% in trade today. However, they slightly recovered to trade 0.7% down. This market resilience is attributed to the belief that these high tariffs are a temporary disruption that will be resolved in due course. Mobius stressed the importance of portfolio flexibility amid geopolitical risks like Trump tariffs, the Russia-Ukraine war, and sporadic Middle East flare-ups.
Investment strategy
Shift toward active management
In his blog post, Mobius highlighted that a record $127 billion flowed into actively managed funds in H1 2025, up 57% from last year. He noted that while Exchange Traded Funds (ETFs) continue to draw inflows, many investors are realizing that active strategies can uncover opportunities often overlooked by passive funds. This trend underscores the importance of adaptability and proactivity in today's volatile market environment.
Investing insights
Sumo wrestlers and investing discipline
Mobius drew parallels between the dedication of sumo wrestlers and successful investing. He said, "If someone approached their investment portfolio with the same level of focus and discipline as those sumo wrestlers have for their training, I'm sure they'd make the returns they deserve." He emphasized that success in the stock market requires both luck and dedication, with no shortcuts to wealth creation.