Buy, Sell, or Hold: This India Fund Is At Year Lows? (IFN, BX, PIN, INDY, EPI, INP)

Jonathan Yates: Future growth prospects for India are bright, but recent economic data and actions have The India Fund (NYSEARCA:IFN), a closed end fund from The Blackstone Group (NYSE:BX), at a year low.

The economic woes of India have been detailed in many articles on  Moody’s just downgraded the banking sector.  Auto sales are off.  The airlines are in terrible financial shape.  There is speculation that the sovereign debt of India will eventually be downgraded,

Thas has certainly been reflected in the performance of The India Fund.  Now trading around $22.21, it is down from a year high of $34.74.  It is down more than 6% for the week, more than 8% for the month, more than 10% for the quarter, more than 20% for the last six months, and more than 30% for the year.  Investors like predictability, but not like that!

At present, The India Fund is selling at a deep discount to its net asset value.  The price-to-earnings ratio is around 11.  This are not as attractive as might be considered due to the assets not being valued correctly.  What is appealing is there is no debt.

The past certainly provides hope for the future of The India Fund, as for the country.  IFN used to have a very healthy dividend yield, even though in 2007 it was trading at well over $60 a share.  India will be back, and so will The India Fund.

Written By Jonathan Yates From Emerging Money

Emerging Money provides insightful and timely information about the increasingly important world of Emerging Market investments. CNBC Emerging Markets Contributor Tim Seymour leads the team of Emerging Money to bring you cutting edge global news and analysis.

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