Mark Mobius to increase allocation to Indian market, reducing Taiwan weightage

Mark Mobius, the founder of Mobius Capital Partners, believes the Indian market will continue to compound at two times the gross domestic product (GDP) growth. As a result, Mobius plans to increase his allocation to India while reducing his weightage in Taiwan where he has allocated most funding as seen in the chart below.

“Gradually decreasing the amount in Taiwan and increasing the amount in India,” he said.

Mobius is overall positive on emerging markets and the market veteran told CNBC-TV18 in an interview that he was investing in India, Taiwan, as well as Korea. He believes that India is currently in a "sweet spot" and will continue to outperform other markets.

“I believe we are in a very sweet spot when it comes to India. A lot of things are doing well for the country compared to other parts of the world,” he said.

In terms of specific investments, Mobius has his eye on companies such as Persistent Systems, Metropolis, and APL Apollo Tubes in India. When it comes to the recently-struggling IT sector, he thinks the sector will be a long-term winner.

“We prefer stocks in the technology area like Persistent Systems in India, we prefer healthcare companies like Metropolis and we prefer companies that are doing something in the infrastructure sector particularly in India like APL Apollo Tubes.”

In addition to the IT sector, Mobius is also looking at healthcare, software, and mapping companies in India.

When asked about the current state of the US market, Mobius said that he does not think it will fall more than 10-15 percent from its current levels.

“The US has already come down quite a lot. So you may see another 10-15 percent decline in the US but not more than that,” he mentioned.

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