Summary:

Key exchange-traded fund (ETF) providers are competing for the billions of dollars predicted to flow into Indian bonds as a result of their inclusion in major global indices. Since JPMorgan Chase included Indian debt in its emerging-market index, companies such as BlackRock, Amundi, and Janus Henderson's Tabula Investment Management have introduced new ETFs. DWS Group forecasts that these ETFs will attract $5 billion to $10 billion, reflecting India's growing relevance in emerging-market debt.

India's weight in JPMorgan's emerging-markets bond index will increase to 10% by March, up from 4%. These securities will also be included in the FTSE Russell and Bloomberg indices, bringing billions of dollars into a domestic market that is relatively insulated from global volatility. Indian rupee-denominated government bonds, which offer the highest yields in Asia, have raised $15.7 billion this year, but analysts warn of market overcrowding. According to BlackRock's Mr. Hui Sien Koay, ETFs can assist investors in navigating bureaucratic barriers.

Source: IBEF 

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