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‘Clearly there are opportunities in China, but we are less comfortable buying China-centric funds than Indian ones’In her opinion, it’s also the legal framework of Indian companies that helps give it the edge over its Chinese counterparts. “Clearly there are opportunities in China, but we are less comfortable buying China-centric funds than Indian ones, primarily because of the rule of law. We believe as shareholders, we will be looked after in India and this isn’t always the same in China,” she explains. “Today, you can buy stocks in India that are very well-run from a legal perspective.”
‘I think the most important point is to utilize a very active approach’“No matter how cheap a stock might look, it’s important to look beyond that. Indian equity funds need to understand the mechanics behind a stock’s price.” Gaining an in-depth understanding of what is an improving, but at times still complex Indian corporate culture, is vital in order to extract real value. For Kolcava, knowledge is power when running the rule over potential Indian equity managers.
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