Today, we’re going to talk about an emerging market that has the potential to be one of the big players in the future. As investors, we will prefer to invest in a market that is growing at cheap prices compared to one that has matured at expensive prices. As we’ll soon see that Anene, stock market has a lot of potential for profit and its economy is actually growing quicker than both the USA and China. In this video, we’re going to discuss two important questions. Why invest in the Indian stock market and how do we invest in the Indian stock market? For those looking for returns above the normal, this video is for you guys. OK, so why invest in the Indian stock market? I’m going to talk you through three key factors.
First is the population growth. Now we want a country that is growing and population because the more people there they are, the more businesses will grow, demand for products will increase, more money will be spent. And the businesses are the ones that get the money. If we become a shareholder in these businesses, we will be the ones generating the profit. So let’s see India’s current population growth. As you can see from this graph, the growth as of 2016 is one point two per cent and it is currently one point one per cent and 2018 higher than US size zero point seven per cent and China’s zero point five per cent. So we’ll get population growth for India. ETIC This leads me onto the next factor. What does the economic growth, the GDP growth, this is the same thing. Let’s take a quick look. So India’s economy is growing at seven point one per cent higher than China’s six point seven per cent and the US is one point six per cent as of April 2018. That number has increased to seven point seven per cent. So we can take from this that India’s economy is growing very well. Its businesses are growing at a great rate, producing more and more output and more and more profit as investors.
That’s what we’re looking for. Now we need to take a quick look at the currency. How much Indian rupee can we get for our US dollar? At the moment, the rate is sixty seven point five, meaning one US dollar can get a sixty seven point five Indian rupee. Not bad. So those are some fundamental reasons for investing in the Indian stock market. Another important reason is that Indians have a high work rate.
They’re known for working long hours and working hard. So those are the types of people I want running my business, running the stocks that we invest in. Also, it’s got an extremely young population with 55 per cent of the country’s people under the age of 30. OK, so India is a pretty good place to invest our money. I think we’ve decided that this begs the question, how do we invest in the Indian stock market? Now, first, I wanted to give you guys a quick overview of the Indian stock market. They have two stock exchanges, the Bombay Stock Exchange, BSE and the National Stock Exchange in SC. They also have market regulation through the Securities and Exchange Board of India, which is really important to have an independent authority regulating the market. The two ways to invest in the Indian Stock Exchange is one through ETFs and two through by an individual stocks. Let’s go over the two main options you have available for Indian ETFs. First, we have the iShares MSCI India ETF ticker symbol Endor. This is designed to measure the performance of the large and mid-cap segments of the Indian market.
This index ranges across all sectors, including IT finance and energy expense ratio of zero point six per cent, and it’s gone up 41 per cent over the past five years and has been around since 1993. So it’s a nice old option to take. The next biggest ETF available is the WisdomTree India Earnings Fund ticker symbol EPRI. This fund focuses on companies that are profitable with a valuation centric approach, which obviously I take a fancy to exchange ratio. A zero point eighty four per cent price increase of the past five years is 55 per cent and it was launched in 2008. Obviously there’s a lot more Indian ETFs out there, but we don’t have all day. So I’ll leave it link in the description for you to research further. And the second obvious option that you have is picking individual stocks. Now, I don’t want to dove in too deep into Indian stocks for this video. I think that’s enough information to sink in for one video. But in my next piece, I’m going to talk about some of my favorite Indian stocks. In the meantime, I’d recommend picking stocks like Warren Buffett and following his feroze when investing in India.
First of understand the stock that you are investing in and seek and invest in a company with a long term competitive advantage. Third, rail management must have integrity and talent and follow through pay a price that makes sense. All right. We’ll leave it at that for this video. It’s a country that I’m very interested in. And when you look at the individual stocks, you’ll notice that the potential and price of the stock is a lot better than some other countries.