India is the next China

Young population, growing middle class with purchasing power, and infrastructure megacycle bode well for investors in India

TORONTO, Jan. 27 /CNW/ -Canada's leading authority on emerging markets investing, Excel Funds, will describe why India is the place to invest today at their roadshow next week. The investment team will share their "on-the-ground" knowledge of India's growth potential with over 1,000 investment executives across the country who have already registered.

"At Excel Funds we specialize in Emerging Markets, it's all we do and, I am proud to say, we do it very well. Our Excel India Fund has delivered total returns since 1998 of over 429%. An investment of $10,000 at the Fund's inception has grown to $53,031 by December 31, 2010" said Bhim D. Asdhir, President, CEO and Chairman of Excel Funds Management Inc.

Excel India Fund's sub-adviser, the highly regarded Birla SunLife AMC Ltd., has managed the fund since its inception in 1998. These local experts, resident in Mumbai, India have their fingers on the pulse of both the overall Indian economy and individual investee companies. 

There are many compelling reasons to invest in India: 

1. A Very Large and Rapidly Growing Economy

India's GDP is currently US$1.3 trillion, making it the 8th largest economy in the world. However, in PPP terms, which recognizes India's low cost base, the GDP notionally rises to three times this amount (US$3.8 trillion) which places it on a similar size to Japan and, by 2013, it will become the third largest economy in the world (after the USA and China) in PPP terms. However, despite representing 7.5% of Global GDP (on a PPP basis) in 2010, India attracts less than 0.5% of investment inflows. An anomaly which is unlikely to continue for much longer!

India's economy is currently growing by 8.75% per annum (in 2010) and this GDP growth rate is expected to increase to 9% - 10% per annum for each of the next 10 years. India's GDP will grow five times in the next 20 years, and GDP per capita will almost quadruple.

2. Portfolio Diversification Enhances Returns and Reduces Risk

Adding an Emerging Market like India to an equities portfolio provides an important element of diversification: the opportunity for significant growth at no more risk, possibly less, than investing in an advanced economy. Moreover, the Indian economy offers investors exposure to a wide range of opportunities from consumer goods and pharmaceuticals to infrastructure, energy and agriculture. With its strong services sector (comprising 50% of India's economy), particularly in knowledge-based services (IT, software and business services) India has proved that industrialization and the export of commodities and resources is not the only path to rapid economic development.

3. Favourable Demographics Driving Economic Growth

India is one of the youngest countries in the world, with an average age of 25 and likely to get younger. India's working-age population will increase by 240 million over the next 20 years. With a population of 1.2 billion, a strong work ethic, high levels of education, democracy, English language skills and an entrepreneurial culture, India is poised to dominate the global economy in the next 20 years.

4. High Savings Rate Reduces Reliance on Foreign Investment

With a savings rate of 37% of GDP, India's domestic savings fuels most of its investment requirements, and only 20% of India's total public debt is sourced from foreign borrowing. With significant investment to be made in upgrading India's poor infrastructure in the next 10 years (estimated to be US$1.7 trillion) India's Government is taking various steps to further encourage private and foreign investments.

5. Strong Domestic Economy Strengthens Growth

India's domestic consumption, generally led by the private sector, has played a significant role in India's growth and is expected to remain firm as more people enter the workforce and the emerging middle classes. India's wealthiest consumers (those earning US$1m or more in PPP terms) will increase by 40 million in the next 10 years! Every sector within India's consumer market is booming, making India far less vulnerable to external shocks and pressures than other emerging markets.

6. A Robust Financial Sector and Quality Investment Markets

India has a robust, diversified and well regulated financial system which has allowed it to weather the global financial crisis without any major difficulties and present an image of quality, resilience and transparency. India's banking sector is strong, with top quality balance sheets, high levels of competition (there are around 80 banks in India) and strong corporate governance. The Bombay Stock Exchange is the second oldest in the world (165 years) and offers investors a low cost, highly efficient, modern and well governed environment in which to prosper from India's extraordinary economic growth. The Indian stock market has generated investment returns of over 15% per annum for the last 10 years and experts expect this rate to increase in the next decade. More significantly perhaps, Indian investors have doubled their money over the last 3 years at a time when many have lost money in almost every other market.

7. India is the World's Largest Democracy

With a billion people -  a population nearly four times that of the United States - the Republic of India modeled its government on the British parliamentary system,  including a healthy dose of influences from the United States and the rest of Europe. The legal system is based on British Common Law.

The Excel India Fund's unique structure provides investors with two distinct advantages: the Fund does not incur withholding tax on capital gains in India and does not have foreign investment limitations.

The presenters at the road show next week are Bhim D. Asdhir, President, CEO and Chairman Excel Funds Management Inc., Gavin Graham, Global Strategist, Excel Funds, Paul Mesburis, Senior Portfolio Manager at Excel Investment Counsel Inc. and

Ajay Argal, Head Offshore Equities, Birla SunLife, AMC who is in Canada next week from his office in Mumbai, India.

Times and locations:
Monday, January 31, 2011 - Etobicoke, 12:00pm,
Luncheon Presentation, Toronto Congress Centre  
Monday, January 31, 2011 - Richmond Hill, 5:30pm,
Reception Presentation, Sheraton Parkway Toronto  
Tuesday, February 1, 2011 - Toronto, 12:00pm,
Luncheon Presentation, Suites at One King West  
Wednesday, February 2, 2011 - Montréal, 12:00pm,
Luncheon Presentation, Hilton Montréal Bonaventure  
Thursday, February 3, 2011 - Vancouver, 1:00pm,
Luncheon Presentation, Terminal City Club  
Thursday, February 3, 2011 - Surrey, 5:30pm,
Reception Presentation, Eaglequest Coyote Creek  
Friday, February 4, 2011 - Calgary, 12:00pm,
Luncheon Presentation, The Westin Calgary

To register in your location: or contact Linda Savino at, (905) 817-2931 or 1-888-813-9813 x233

Excel Funds Management Inc. specializes in emerging markets. Founded in 1998, the firm now offers 11 mutual funds. Recognizing that a significant portion of performance is the result of consistently getting the asset allocation right, Excel Investment Counsel has built sophisticated, proprietary quantitative models for this purpose. Active investment management is the key to success in Emerging Markets. Excel Funds has retained - on an exclusive basis - major sub-advisers who, importantly, are resident in the investee countries. These sub-advisers include Birla SunLife, one of the largest private sector mutual fund companies in India with over $14BN (US) in assets under management. Individual Canadian investors can only access the investment expertise Birla SunLife through the Excel India Fund.

SOURCE Excel Funds Management Inc.

For further information:

Ms. Julie Makepeace, Vice President, Marketing & Sales, 647-309-3532,;
Media:Paul Tyler, , 905-235-7285, Victoria Ollers,, 416-822-2288


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