Is it time to buy the India Fund?

Depressions are always the best time to invest, particularly in emerging market nations, and a recent Gallup poll suggests that India’s stocks may be ripe for the picking.

Image courtesy Jeet221990: http://commons.wikimedia.org/wiki/File:Mumbai_skyline88907.jpg

30% of Mumbai's 20 million people is a lot of suffering.

After polling 5000 people across 90% of India in the first quarter, Gallup found that more than 30% of its respondents considered themselves to be “suffering.” According to Gallup’s researchers, “Suffering levels among the most educated and the least educated Indians suggest the gaps between the haves and have-nots may actually be widening.”

There are many reasons for that. Foreign companies like Wal-Mart (WMT, quote) and Carrefour (CRFFY, quote) have had trouble in expanding operations in India due to opposition to investment from abroad.

While this punishes the people of India, it offers great opportunities to investors.

The India Fund (IFNquote) is now a very attractively priced closed end fund for these purposes. Declining growth has pushed it down 7.60% over the last month, and 3.36% over the last week. IFN is now selling at a discount to its asset value. When India rebounds, so will IFN.

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